American River Bancshares (AMRB) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Document and Entity Information:
Entity Registrant Name	AMERICAN RIVER BANKSHARES
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Entity Central Index Key	0001108236
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		5,903,228
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEET (Una

CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 16,764	$ 20,987
Interest-bearing deposits in banks	2,998	1,746
Federal funds sold	0	7,000
Total cash and cash equivalents	19,762	29,733
Investment securities:
Available-for-sale, at fair value	264,763	294,933
Held-to-maturity, at amortized cost fair value of $293 in 2019 and $306 in 2018	264	292
Loans and leases, less allowance for loan and lease losses of $4,761 at June 30, 2019 and $4,392 at December 31, 2018	358,408	318,516
Premises and equipment, net	1,136	1,071
Federal Home Loan Bank stock	4,259	3,932
Goodwill and other intangible assets	16,321	16,321
Other real estate owned	957	957
Bank owned life insurance	15,593	15,429
Accrued interest receivable and other assets	7,748	6,908
Total Assets	689,211	688,092
Deposits:
Noninterest bearing	214,012	214,745
Interest-bearing	367,125	375,929
Total deposits	581,137	590,674
Short-term borrowings	2,000	5,000
Long-term borrowings	13,500	10,500
Accrued interest payable and other liabilities	11,655	7,197
Total liabilities	608,292	613,371
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none outstanding	0	0
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 5,903,228 shares at June 30, 2019 and 5,858,428 shares at December 31, 2018	30,373	30,103
Retained earnings	48,329	46,494
Accumulated other comprehensive loss, net of taxes	2,217	(1,876)
Total shareholders' equity	80,919	74,721
Total liabilities and shareholders' euity	$ 689,211	$ 688,092

CONSOLIDATED BALANCE SHEET (U_2

CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for loan and lease losses (in dollars)	$ 4,761	$ 4,392
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	5,903,228	5,858,428
Common stock, shares outstanding	5,903,228	5,858,428

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest and fees on loans:
Taxable	$ 4,086	$ 3,483	$ 7,904	$ 6,811
Exempt from Federal income taxes	194	128	343	256
Interest on Federal funds sold	0	98	5	148
Interest on deposits in banks	36	7	80	13
Interest and dividends on investment securities:
Taxable	1,886	1,637	3,910	3,028
Exempt from Federal income taxes	74	145	166	308
Total interest income	6,276	5,498	12,408	10,564
Interest expense:
Interest on deposits	524	324	1,013	599
Interest on borrowings	124	54	218	108
Total interest expense	648	378	1,231	707
Net interest income	5,628	5,120	11,177	9,857
Provision for loan and lease losses	180	0	360	0
Net interest income after provision for loan and lease losses	5,448	5,120	10,817	9,857
Noninterest income:
Service charges on deposit accounts	139	116	260	233
Gain on sale of securities	29	10	65	11
Other noninterest income	253	254	507	508
Total noninterest income	421	380	832	752
Noninterest expense:
Salaries and employee benefits	2,744	2,517	5,525	4,723
Occupancy	255	262	512	524
Furniture and equipment	140	136	280	274
Federal Deposit Insurance Corporation assessments	45	53	95	106
Expenses related to other real estate owned	4	(3)	8	2
Other expense	960	863	1,988	1,549
Total noninterest expense	4,148	3,828	8,408	7,178
Income before provision for income taxes	1,721	1,672	3,241	3,431
Provision for income taxes	445	403	819	809
Net income	$ 1,276	$ 1,269	$ 2,422	$ 2,622
Basic earnings per share	$ 0.22	$ 0.22	$ 0.41	$ 0.44
Diluted earnings per share	$ 0.22	$ 0.22	$ 0.41	$ 0.44

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,276	$ 1,269	$ 2,422	$ 2,622
Other comprehensive (loss) income:
Increase (decrease) in net unrealized gains on investment securities	1,276	1,269	2,422	2,622
Deferred tax (expense) benefit	(961)	396	(1,737)	1,200
Increase in net unrealized gains (losses) on investment securities, net of tax	2,290	(754)	4,140	(2,662)
Reclassification adjustment for realized gains included in net income	(29)	(10)	(65)	(11)
Tax effect	8	3	18	4
Realized gains, net of tax	(21)	(7)	(47)	(7)
Total other comprehensive income (loss)	2,269	(761)	4,093	(2,669)
Comprehensive income (loss)	$ 3,545	$ 508	$ 6,515	$ (47)

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Begining Balance, Amount at Dec. 31, 2017	$ 34,463	$ 42,779	$ (321)	$ 76,921
Begining Balance, Shares at Dec. 31, 2017	6,132,362
Net income		2,622		2,622
Other comprehensive income, net of tax			(2,669)	(2,669)
Cash dividends		(601)		(601)
Net restricted stock award activity and related compensation expense, Amount	$ 136	1		137
Net restricted stock award activity and related compensation expense, Shares	17,859
Stock options exercised, Amount	$ 123			123
Stock options exercised, Shares	13,359
Stock option compensation expense, Amount	$ 14			14
Retirement of common stock, Amount	$ (4,654)			(4,654)
Retirement of common stock, Shares	(298,778)
Ending Balance, Amount at Jun. 30, 2018	$ 30,082	44,801	(2,990)	71,893
Ending Balance, Shares at Jun. 30, 2018	5,864,802
Begining Balance, Amount at Mar. 31, 2018	$ 30,501	43,826	(2,229)	72,098
Begining Balance, Shares at Mar. 31, 2018	5,882,214
Net income		1,269		1,269
Other comprehensive income, net of tax			(761)	(761)
Cash dividends		(294)		(294)
Net restricted stock award activity and related compensation expense, Amount	$ 71			71
Net restricted stock award activity and related compensation expense, Shares	10,915
Stock options exercised, Amount	$ 58			58
Stock options exercised, Shares	6,273
Stock option compensation expense, Amount	$ 7			7
Retirement of common stock, Amount	$ (555)			(555)
Retirement of common stock, Shares	(34,600)
Ending Balance, Amount at Jun. 30, 2018	$ 30,082	44,801	(2,990)	71,893
Ending Balance, Shares at Jun. 30, 2018	5,864,802
Begining Balance, Amount at Dec. 31, 2018	$ 30,103	46,494	(1,876)	74,721
Begining Balance, Shares at Dec. 31, 2018	5,858,428
Net income		2,422		2,422
Other comprehensive income, net of tax			4,093	4,093
Cash dividends		(587)		(587)
Net restricted stock award activity and related compensation expense, Amount	$ 167			167
Net restricted stock award activity and related compensation expense, Shares	33,660
Stock options exercised, Amount	$ 95			95
Stock options exercised, Shares	11,140
Stock option compensation expense, Amount	$ 8			8
Ending Balance, Amount at Jun. 30, 2019	$ 30,373	48,329	2,217	80,919
Ending Balance, Shares at Jun. 30, 2019	5,903,228
Begining Balance, Amount at Mar. 31, 2019	$ 30,281	47,347	(52)	77,576
Begining Balance, Shares at Mar. 31, 2019	5,887,962
Net income		1,276		1,276
Other comprehensive income, net of tax			2,269	2,269
Cash dividends		(294)		(294)
Net restricted stock award activity and related compensation expense, Amount	$ 88			88
Net restricted stock award activity and related compensation expense, Shares	15,266
Stock option compensation expense, Amount	$ 4			4
Ending Balance, Amount at Jun. 30, 2019	$ 30,373	$ 48,329	$ 2,217	$ 80,919
Ending Balance, Shares at Jun. 30, 2019	5,903,228

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 2,422	$ 2,622
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	360	0
(Decrease) increase in deferred loan origination fees and costs, net	(341)	93
Depreciation and amortization	126	138
Gain on sale and call of investment securities	(65)	(11)
Amortization of investment security premiums and discounts, net	776	1,491
Increase in cash surrender values of life insurance policies	(164)	(151)
Stock based compensation expense	175	151
Decrease (increase) in accrued interest receivable and other assets	397	(2,604)
(Decrease) increase in accrued interest payable and other liabilities	(723)	(574)
Net cash provided by operating activities	2,963	1,155
Cash flows from investing activities:
Proceeds from the sale of available-for-sale investment securities	29,675	14,443
Proceeds from matured available-for-sale investment securities	3,000	0
Proceeds from called available-for-sale investment securities	0	1,499
Purchases of available-for-sale investment securities	(16,481)	(61,756)
Proceeds from principal repayments for available-for-sale investment securities	21,302	21,105
Proceeds from principal repayments for held-to-maturity investment securities	28	48
Net (increase) decrease in loans	(28,620)	18,067
Purchases of loans	(11,291)	0
Net increase in FHLB stock	(327)	0
Purchases of equipment	(191)	(64)
Net cash used in investing activities	(2,905)	(6,658)
Cash flows from financing activities:
Net (decrease) increase in demand, interest-bearing and savings deposits	(9,865)	27,717
Net (decrease) increase in time deposits	328	(2,481)
Net (decrease) increase in short-term borrowings	(3,000)	3,000
Net increase (decrease) in long-term borrowings	3,000	(3,000)
Proceeds from stock option exercise	95	123
Cash dividends paid	(587)	(601)
Cash paid to repurchase common stock	0	(4,654)
Net cash (used in) provided by financing activities	(10,029)	20,104
(Decrease) increase in cash and cash equivalents	(9,971)	14,601
Cash and cash equivalents at beginning of year	29,733	38,467
Cash and cash equivalents at end of period	19,762	53,068
Supplemental noncash disclosures:
Right of use asset and obligation recorded upon adoption of ASU 2016-02	$ 3,570	$ 0

1. CONSOLIDATED FINANCIAL STATE

1. CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONSOLIDATED FINANCIAL STATEMENTS	In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the “Company”) at June 30, 2019 and December 31, 2018, the results of its operations and statement of comprehensive income for the three-month and six-month periods ended June 30, 2019 and 2018, its cash flows for the six-month periods ended June 30, 2019 and 2018 and its statement of changes in shareholders’ equity for the three-month and six-month periods ended June 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States of America. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. The results of operations for the three-month and six-month periods ended June 30, 2019 may not necessarily be indicative of the operating results for the full year. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank. Adoption of New Accounting Standard: Leases

2. STOCK-BASED COMPENSATION

2. STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
STOCK-BASED COMPENSATION	Equity Plans On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. At June 30, 2019 there were 29,958 stock options and 50,765 restricted shares outstanding and the total number of authorized shares that remain available for issuance was 1,271,673. The 2010 Plan provides for the following types of stock-based awards: incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted performance stock, unrestricted Company stock, and performance units. Under the 2010 Plan, the awards may be granted to employees and directors under incentive and nonqualified option agreements, restricted stock agreements, and other awards agreements. The unvested restricted stock under the 2010 Plan have dividend and voting rights. The 2010 Plan requires that the option price may not be less than the fair market value of the stock at the date the option is awarded. The option awards expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards are exercisable until their expiration. New shares are issued upon exercise of an option. The award date fair value of awards is determined by the market price of the Company’s common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended June 30, 2019 and 2018, the compensation cost recognized for equity compensation was $92,000 and $78,000, respectively. The recognized tax benefit for equity compensation expense was $24,000 and $19,000, respectively, for the three-month periods ended June 30, 2019 and 2018. For the six-month periods ended June 30, 2019 and 2018, the compensation cost recognized for equity compensation was $175,000 and $151,000, respectively. The recognized tax benefit for equity compensation expense was $45,000 and $37,000, respectively, for the six-month periods ended June 30, 2019 and 2018. At June 30, 2019, the total unrecognized pre-tax compensation cost related to nonvested stock option awards was $9,000. This amount will be recognized over the next 1.1 years and the weighted average period of recognizing these costs is expected to be 0.3 years. At June 30, 2019, the total unrecognized pre-tax compensation cost related to restricted stock awards was $612,000. This amount will be recognized over the next 4.9 years and the weighted average period of recognizing these costs is expected to be 1.2 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month and six-month periods ended June 30, 2019 and June 30, 2018. A summary of option activity as of June 30, 2019 and changes during the period then ended is presented below: Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2019 41,098 $ 8.71 2.3 years $ 215 Awarded — — — — Exercised (11,140 ) 8.50 — — Expired, forfeited or cancelled — — — — Outstanding at June 30, 2019 29,958 $ 8.79 4.9 years $ 104 Vested at June 30, 2019 27,735 $ 8.73 4.8 years $ 98 Non-vested at June 30, 2019 2,223 $ 9.56 5.9 years $ 6 Restricted Stock There were 15,574 and 33,968 shares of restricted stock awarded during the three-month and six-month periods ended June 30, 2019, respectively. There were 10,915 and 22,514 shares of restricted stock awarded during the three-month and six-month periods ended June 30, 2018, respectively. A summary of restricted stock award activity under the 2010 Plan as of June 30, 2019 and changes during the period then ended is presented below: Restricted Stock Shares Weighted Nonvested at January 1, 2019 32,528 $ 14.60 Awarded 33,968 13.67 Less: Vested (15,423 ) 14.55 Less: Expired, forfeited or cancelled (308 ) 15.58 Nonvested at June 30, 2019 50,765 $ 13.98 Other Equity Awards There were no stock appreciation rights, restricted performance stock, unrestricted Company stock, or performance units awarded during the three-month or six-month month periods ended June 30, 2019 or 2018 or outstanding at June 30, 2019 or December 31, 2018. The intrinsic value used for stock options and restricted stock awards was derived from the market price of the Company’s common stock of $12.26 as of June 30, 2019.

3. COMMITMENTS AND CONTINGENCIE

3. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $32,873,000 and standby letters of credit of approximately $300,000 at June 30, 2019 and loan commitments of approximately $34,276,000 and standby letters of credit of approximately $361,000 at December 31, 2018. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2019 as some of these are expected to expire without being fully drawn upon. Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at June 30, 2019 or December 31, 2018.

4. EARNINGS PER SHARE COMPUTATI

4. EARNINGS PER SHARE COMPUTATION	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE COMPUTATION	Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (5,846,510 and 5,841,572 shares for the three-month and six-month periods ended June 30, 2019 and 5,843,340 and 5,919,321 shares for the three-month and six-month periods ended June 30, 2018). Using the treasury stock method, diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards. There were 15,906 and 19,342, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2019 and 39,574 and 38,082, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2018. For the three-month periods ended June 30, 2019 and 2018, there were zero stock options that were excluded from the calculation as they were considered antidilutive. For the six-month periods ended June 30, 2019 and 2018, there were zero stock options that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented.

5. INVESTMENT SECURITIES

5. INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2019
Investments [Abstract]
INVESTMENT SECURITIES	The amortized cost and estimated fair values of Available-for-Sale and Held-to-Maturity investment securities at June 30, 2019 and December 31, 2018 consisted of the following (dollars in thousands): Available-for-Sale June 30, 2019 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 246,318 $ 3,648 $ (897 ) $ 249,069 Obligations of states and political subdivisions 6,809 287 (7 ) 7,089 Corporate bonds 6,494 120 (5 ) 6,609 U.S. Treasury securities 1,994 2 — 1,996 $ 261,615 $ 4,057 $ (909 ) $ 264,763 December 31, 2018 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 271,685 $ 984 $ (3,620 ) $ 269,049 Obligations of states and political subdivisions 14,440 165 (205 ) 14,400 Corporate bonds 6,493 74 (59 ) 6,508 U.S. Treasury securities 4,979 — (3 ) 4,976 $ 297,597 $ 1,223 $ (3,887 ) $ 294,933 Net unrealized gains on available-for-sale investment securities totaling $3,148,000 were recorded, net of $931,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at June 30, 2019. Proceeds and gross realized gains from the sale of available-for-sale investment securities for the three-month period ended June 30, 2019 totaled $27,652,000 and $29,000, respectively, and for the six-month period ended June 30, 2019 proceeds and gross realized gains from the sale of available-for-sale investment securities totaled $29,675,000 and $65,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2019. Net unrealized losses on available-for-sale investment securities totaling $2,664,000 were recorded, net of $788,000 in tax liabilities, as accumulated other comprehensive loss within shareholders’ equity at December 31, 2018. Proceeds and gross realized gains from the sale of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2018 totaled $15,942,000 and $11,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2018. Held-to-Maturity June 30, 2019 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 264 $ 16 $ — $ 280 December 31, 2018 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 292 $ 14 $ — $ 306 There were no sales or transfers of held-to-maturity investment securities for the periods ended June 30, 2019 and June 30, 2018. Investment securities with unrealized losses at June 30, 2019 and December 31, 2018 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): June 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 14,165 $ (101 ) 78,988 (796 ) $ 93,153 $ (897 ) Obligations of states and political subdivisions — — 1,212 (7 ) 1,212 (7 ) Corporate bonds — — 1,989 (5 ) 1,989 (5 ) $ 14,165 $ (101 ) $ 82,189 $ (808 ) $ 96,354 $ (909 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 39,267 $ (310 ) $ 138,894 $ (3,310 ) $ 178,161 $ (3,620 ) Obligations of states and political subdivisions 2,168 (28 ) 5,583 (177 ) 7,751 (205 ) Corporate bonds 497 (4 ) 1,938 (55 ) 2,435 (59 ) U.S. Treasury securities 4,976 (3 ) — — 4,976 (3 ) $ 46,908 $ (345 ) $ 146,415 $ (3,542 ) $ 193,323 $ (3,887 ) There were no held-to-maturity investment securities with unrealized losses as of June 30, 2019 or December 31, 2018. At June 30, 2019, the Company held 203 securities of which seven were in a loss position for less than twelve months and 57 were in a loss position for twelve months or more. Of the seven securities in a loss position for less than twelve months, all seven were U.S. Government Agencies and Sponsored Agencies securities and of the 57 securities that were in a loss position for greater than twelve months, 55 were U.S. Government Agencies and Sponsored Agencies securities, one was an obligation of states or political subdivisions and one was a corporate bond. At December 31, 2018, the Company held 220 securities of which 26 were in a loss position for less than twelve months and 97 were in a loss position for twelve months or more. Of the 97 securities in a loss position for greater than twelve months at December 31, 2018, one was a corporate securities, five were municipal securities and 91 were U.S. Government Agencies and Sponsored Agencies securities. The unrealized loss on the Company’s investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired. The amortized cost and estimated fair values of investment securities at June 30, 2019 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 2,749 $ 2,752 After one year through five years 3,096 3,129 After five years through ten years 6,301 6,526 After ten years 3,151 3,287 15,297 15,694 Investment securities not due at a single maturity date: U.S. Government Agencies and Sponsored Agencies 246,318 249,069 $ 264 $ 280 $ 261,615 $ 264,763 $ 264 $ 280 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

6. IMPAIRED AND NONPERFORMING L

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2019
Loan and Lease Receivables, Impaired [Abstract]
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	At June 30, 2019 and December 31, 2018, the recorded investment in nonperforming loans and leases was zero and $27,000, respectively. Nonperforming loans and leases include all such loans and leases that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. At June 30, 2019, the recorded investment in loans and leases that were considered to be impaired totaled $7,857,000, all of which were considered performing loans and leases. Of the total impaired loans and leases of $7,857,000, loans totaling $5,909,000 were deemed to require no specific reserve and loans totaling $1,948,000 were deemed to require a related valuation allowance of $105,000. At December 31, 2018, the recorded investment in loans and leases that were considered to be impaired totaled $8,702,000. Of the total impaired loans of $8,702,000, loans totaling $5,968,000 were deemed to require no specific reserve and loans totaling $2,734,000 were deemed to require a related valuation allowance of $185,000. At June 30, 2019 and December 31, 2018, the recorded investment in other real estate owned (“OREO”) was $957,000. During the first and second quarters of 2019, the Company did not add any new, impair, or sell any of the OREO properties. The June 30, 2019 and December 31, 2018 OREO balance of $957,000 consisted of one commercial land property. Nonperforming assets at June 30, 2019 and December 31, 2018 are summarized as follows: (dollars in thousands) June 30, December 31, Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ — $ 27 Nonaccrual loans and leases that are past due — — Loans and leases past due 90 days and accruing interest — — Other real estate owned 957 957 Total nonperforming assets $ 957 $ 984 Nonperforming loans and leases to total loans and leases 0.00 % 0.01 % Total nonperforming assets to total assets 0.14 % 0.14 % Impaired loans and leases as of and for the periods ended June 30, 2019 and December 31, 2018 are summarized as follows: (dollars in thousands) As of June 30, 2019 As of December 31, 2018 Recorded Investment Unpaid Related Recorded Unpaid Related With no related allowance recorded: Real estate-commercial $ 5,588 $ 5,722 $ — $ 5,645 $ 5,879 $ — Real estate-residential 321 408 — 323 410 — Subtotal $ 5,909 $ 6,130 $ — $ 5,968 $ 6,289 $ — With an allowance recorded: Real estate-commercial $ 1,669 $ 1,744 $ 79 2,138 2,217 132 Real estate-residential 279 279 26 596 596 53 Subtotal $ 1,948 $ 2,023 $ 105 $ 2,734 $ 2,813 $ 185 Total: Real estate-commercial $ 7,257 $ 7,466 $ 79 $ 7,783 $ 8,096 $ 32 Real estate-residential 600 687 26 919 1,006 53 $ 7,857 $ 8,153 $ 105 $ 8,702 $ 9,102 $ 185 The following table presents the average balance related to impaired loans and leases for the periods indicated (dollars in thousands): Average Recorded Investments Average Recorded Investments June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Commercial $ — $ 1,562 $ — $ 1,580 Real estate-commercial 7,282 8,794 7,373 8,828 Real estate-residential 602 1,596 606 1,602 Consumer — 69 — 69 Total $ 7,884 $ 12,021 $ 7,979 $ 12,079 The following table presents the interest income recognized on impaired loans and leases for the periods indicated (dollars in thousands): Interest Income Recognized Interest Income Recognized June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Real estate-commercial $ 106 $ 129 $ 218 $ 238 Real estate-residential 9 21 16 41 Consumer — — — 2 Total $ 115 $ 150 $ 234 $ 281

7. TROUBLED DEBT RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS	6 Months Ended
	Jun. 30, 2019
Troubled Debt Restructuring, Debtor, Current Period [Abstract]
TROUBLED DEBT RESTRUCTURINGS	During the three and six-month periods ended June 30, 2019 and 2018, there were no loans that were modified as troubled debt restructurings. There were no payment defaults on troubled debt restructurings within 12 months following the modification for the three-month and six-month periods ended June 30, 2019 and June 30, 2018. At June 30, 2019 and December 31, 2018, there were no troubled debt restructured loans that had unfunded commitments.

8. ALLOWANCE FOR LOAN AND LEASE

8. ALLOWANCE FOR LOAN AND LEASE LOSSES	6 Months Ended
	Jun. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]
ALLOWANCE FOR LOAN AND LEASE LOSSES	The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of June 30, 2019 and December 31, 2018 are summarized below: June 30, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 30,276 $ 200,668 $ 52,612 $ 10,032 $ 28,659 Watch 5,041 7,244 — — 635 Special mention 24 — — — — Substandard — 138 — — — Doubtful or loss — — — — — Total $ 35,341 $ 208,050 $ 52,612 $ 10,032 $ 29,294 Credit Risk Profile by Internally Assigned Grade Leases Agriculture Consumer Total Grade: Pass $ 2 $ 7,084 $ 20,354 $ 349,687 Watch — — 22 12,942 Special mention — — — 24 Substandard — — — 138 Doubtful or loss — — — — Total $ 2 $ 7,084 $ 20,376 $ 362,791 December 31, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,570 $ 185,548 $ 52,301 $ 5,685 $ 15,373 Watch 53 13,118 3,838 — 965 Special mention — 1,087 — — — Substandard 27 141 — — — Doubtful or loss — — — — — Total $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 Credit Risk Profile by Internally Assigned Grade Leases Agriculture Consumer Total Grade: Pass $ 32 $ 4,419 $ 10,691 $ 303,619 Watch — — 22 17,996 Special mention — — 1 1,088 Substandard — — — 168 Doubtful or loss — — — — Total $ 32 $ 4,419 $ 10,714 $ 322,871 The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below: June 30, 2019 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 $ — $ 88 $ 192 $ 279 $ 4,392 Provision for loan losses 123 (35 ) (174 ) 187 138 — 43 126 (48 ) 360 Loans charged-off — — — — — — — — — — Recoveries 3 6 — — — — — — — 9 Ending balance, June 30, 2019 $ 794 $ 2,085 $ 390 $ 454 $ 358 $ — $ 131 $ 318 $ 231 $ 4,761 Ending balance: Individually evaluated for impairment $ — $ 79 $ — $ — $ 26 $ — $ — $ — $ — $ 105 Ending balance: Collectively evaluated for impairment $ 794 $ 2,006 $ 390 $ 454 $ 332 $ — $ 131 $ 318 $ 231 $ 4,656 Loans Ending balance $ 35,341 $ 208,050 $ 52,612 $ 10,032 $ 29,294 $ 2 $ 7,084 $ 20,376 $ — $ 362,791 Ending balance: Individually evaluated for impairment $ — $ 7,257 $ — $ — $ 600 $ — $ — $ — $ — $ 7,857 Ending balance: Collectively evaluated for impairment $ 35,341 $ 200,793 $ 52,612 $ 10,032 $ 28,694 $ 2 $ 7,084 $ 20,376 $ — $ 354,934 Allowance for Loan and Lease Losses Beginning balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ — $ 168 $ 257 $ 283 $ 4,577 Provision for loan losses 132 51 (30 ) 46 9 — (37 ) 61 (52 ) 180 Loans charged off — — — — — — — — — — Recoveries 1 3 — — — — — — — 4 Ending balance, June 30, 2019 $ 794 $ 2,085 $ 390 $ 454 $ 358 $ — $ 131 $ 318 $ 231 $ 4,761 December 31, 2018 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 132 $ — $ — $ 53 $ — $ — $ — $ — $ 185 Ending balance: Collectively evaluated for impairment $ 668 $ 1,982 $ 564 $ 267 $ 167 $ — $ 88 $ 192 $ 279 $ 4,207 Loans Ending balance $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 $ 32 $ 4,419 $ 10,714 $ — $ 322,871 Ending balance: Individually evaluated for impairment $ — $ 7,783 $ — $ — $ 919 $ — $ — $ — $ — $ 8,702 Ending balance: Collectively evaluated for impairment $ 29,650 $ 192,111 $ 56,139 $ 5,685 $ 15,419 $ 32 $ 4,419 $ 10,714 $ — $ 314,169 June 30, 2018 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 213 (78 ) (208 ) 29 34 (1 ) 18 (3 ) (4 ) — Loans charged-off — — — — — — — — — — Recoveries 9 4 — — — 1 — — — 14 Ending balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492 Allowance for Loan and Lease Losses Beginning balance, March 31, 2018 $ 546 $ 2,143 $ 966 $ 288 $ 218 $ — $ 31 $ 15 $ 281 $ 4,488 Provision for loan losses 121 (45 ) (127 ) 10 21 — 18 (4 ) 6 — Loans charged off — — — — — — — — — — Recoveries 2 2 — — — — — — — 4 Ending balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492 The Company’s aging analysis of the loan and lease portfolio at June 30, 2019 and December 31, 2018 are summarized below: June 30, 2019 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 35,341 $ 35,341 — $ — Real estate: Commercial — — — — 208,050 208,050 — — Multi-family — — — — 52,612 52,612 — — Construction — — — — 10,032 10,032 — — Residential — — — — 29,294 29,294 — — Other: Leases — — — — 2 2 — — Agriculture — — — — 7,084 7,084 — — Consumer — — — — 20,376 20,376 — — Total $ — $ — $ — $ — $ 362,791 $ 362,791 $ — $ — December 31, 2018 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,650 $ 29,650 $ — $ 27 Real estate: Commercial — — — — 199,894 199,894 — — Multi-family — — — — 56,139 56,139 — — Construction — — — — 5,685 5,685 — — Residential — — — — 16,338 16,338 — — Other: Leases — — — — 32 32 — — Agriculture — — — — 4,419 4,419 — — Consumer — — — — 10,714 10,714 — — Total $ — $ — $ — $ — $ 322,871 $ 322,871 $ — $ 27

9. LEASES

9. LEASES	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
LEASES	The Company adopted ASU 2016-02, Leases (Topic 842), The Company leases nine locations for administrative offices and branch locations. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company elected to use the practical expedient to not recognize short-term leases on the consolidated balance sheet and instead account for them as executory contracts. Certain leases include options to renew, with renewal terms that can extend the lease term, typically for five years. Lease assets and liabilities include related options that are reasonably certain of being exercised, however, in the case of those leases that have renewal options, the Company is not including those additional lease terms as the rates are undeterminable and it has been the Company’s historical practice to renegotiate lease terms upon expiration of the original lease terms. The depreciable life of leased assets are limited by the expected lease term. Adoption of this standard resulted in the Company recognizing a right of use asset and a corresponding lease liability of $3,570,000 on January 1, 2019. Supplemental lease information at or for the six months ended June 30, 2019 is as follows: Balance Sheet Operating lease asset classified as other assets $ 2,954,000 Operating lease liability classified as other liabilities 3,187,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 378,000 Weighted average lease term, in years 6.16 Weighted average discount rate (1) 3.06 % Operating cash flows $ 376,000 (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the Federal Home Loan Bank of San Francisco for a term correlating to the remaining life of each lease. A maturity analysis of the Company’s lease liabilities at June 30, 2019 was as follows: Balance July 1, 2019 to June 30, 2020 $ 713,000 July 1, 2020 to June 30, 2021 679,000 July 1, 2021 to June 30, 2022 653,000 July 1, 2022 to June 30, 2023 579,000 July 1, 2023 to June 30, 2024 285,000 Thereafter 786,000 Total lease payments 3,695,000 Less: Interest (508,000 ) Present value of lease liabilities $ 3,187,000

10. BORROWING ARRANGEMENTS

10. BORROWING ARRANGEMENTS	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	At June 30, 2019, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of June 30, 2019 or December 31, 2018. The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the “FHLB”) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as well as loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $15,500,000 were outstanding from the FHLB at June 30, 2019, bearing interest rates ranging from 1.31% to 3.17% and maturing between July 12, 2019 and November 24, 2023. Advances totaling $15,500,000 were outstanding from the FHLB at December 31, 2018, bearing interest rates ranging from 1.18% to 3.17% and maturing between April 30, 2019 and November 24, 2023. Remaining amounts available under the borrowing arrangement with the FHLB at June 30, 2019 and December 31, 2018 totaled $119,458,000 and $107,262,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at June 30, 2019 and December 31, 2018 were $9,528,000 and $8,340,000, respectively. There were no advances outstanding under this borrowing arrangement as of June 30, 2019 and December 31, 2018.

11. INCOME TAXES

11. INCOME TAXES	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for (benefit from) income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month and six-month periods ended June 30, 2019 and 2018.

12. FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2019 and December 31, 2018. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In 2018, the Company adopted the provisions of Accounting Standard Update 2016-01 “ Recognition and Measurement of Financial Assets and Financial Liabilities Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: June 30, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 16,764 $ 16,764 $ — $ — $ 16,764 Federal funds sold — — — — — Interest-bearing deposits in banks 2,998 1,252 1,746 — 2,998 Available-for-sale securities 264,763 1,996 262,767 — 264,763 Held-to-maturity securities 264 — 280 — 280 FHLB stock 4,259 N/A N/A N/A N/A Net loans and leases: 358,408 — — 360,450 360,450 Accrued interest receivable 1,931 7 795 1,129 1,931 Financial liabilities: Deposits: Noninterest-bearing $ 214,012 $ 214,012 $ — $ — $ 214,012 Savings 71,689 71,689 — — 71,689 Money market 136,240 136,240 — — 136,240 Interest checking 70,791 70,791 — — 70,791 Time Deposits 88,405 — 88,530 — 88,530 Short-term borrowings 2,000 2,000 — — 2,000 Long-term borrowings 13,500 — 13,736 — 13,736 Accrued interest payable 181 6 175 — 181 Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 20,987 $ 20,987 $ — $ — $ 20,987 Federal funds sold 7,000 7,000 7,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 294,933 4,976 289,957 — 294,933 Held-to-maturity securities 292 — 306 — 306 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 318,516 — — 315,235 315,235 Accrued interest receivable 1,959 — 1,044 915 1,959 Financial liabilities: Deposits: Noninterest-bearing $ 214,745 $ 214,745 $ — $ — $ 214,745 Savings 72,522 72,522 — — 72,522 Money market 145,831 145,831 — — 145,831 Interest checking 69,489 69,489 — — 69,489 Time Deposits 88,087 — 88,078 — 88,078 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10.500 — 10,733 — 10,733 Accrued interest payable 63 1 62 — 63 Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. Assets and liabilities measured at fair value on a recurring and non-recurring basis along with any related gain or loss recognized in the income statement due to fair value changes are presented in the following table: Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) June 30, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 249,069 $ — $ 249,069 $ — $ — Obligations of states and political subdivisions 7,089 — 7,089 — — Corporate bonds 6,609 — 6,609 — — U.S. Treasury bonds 1,996 1,996 — — — Total recurring $ 264,763 $ 1,996 $ 262,767 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned 957 — — 957 — Total nonrecurring $ 957 $ — $ — $ 957 $ — At June 30, 2019, there were no impaired loans carried at fair value as the appraised value exceeded carrying value. Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 269,049 $ — $ 269,049 $ — $ — Corporate bonds 6,508 — 6,508 Obligations of states and political subdivisions 14,400 — 14,400 — — U.S. Treasury securities 4,976 4,976 — — — Total recurring $ 294,933 $ 4,976 $ 289,957 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,274 $ — $ — $ 5,274 $ — Other real estate owned Land 957 — — 957 (4 ) Total nonrecurring $ 6,231 $ — $ — $ 6,231 $ (4 ) There were no significant transfers between Levels 1 and 2 during the three-month and six-month periods ended June 30, 2019 or the twelve months ended December 31, 2018. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other real estate owned

13. RECENTLY ISSUED ACCOUNTING

13. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	In February 2016, the FASB issued ASU No. 2016-02, “ Leases. . In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments. disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. n July 17, 2019, the FASB issued a tentative decision with respect to the effective date of implementing ASU No. 2016-13. If the FASB approves the tentative decision, ASU No. 2016-13 would become effective for smaller reporting companies, such as the Company, for interim and annual reporting periods beginning after December 15, 2022; early adoption would still be permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). While the Company is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements, including if it will early adopt the standard, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, evaluating its current IT systems, and purchasing a software solution. The Company has imported current and historical data into the new software and is currently validating the data and intends to begin processing information, on a test basis, with the new CECL specific software during 2019 and to disclose any material potential impact of this modeling once it becomes available.

2. STOCK-BASED COMPENSATION (Ta

2. STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2019 41,098 $ 8.71 2.3 years $ 215 Awarded — — — — Exercised (11,140 ) 8.50 — — Expired, forfeited or cancelled — — — — Outstanding at June 30, 2019 29,958 $ 8.79 4.9 years $ 104 Vested at June 30, 2019 27,735 $ 8.73 4.8 years $ 98 Non-vested at June 30, 2019 2,223 $ 9.56 5.9 years $ 6
Schedule of Nonvested Share Activity	Restricted Stock Shares Weighted Average Award Date Fair Value Nonvested at January 1, 2019 32,528 $ 14.60 Awarded 33,968 13.67 Less: Vested (15,423 ) 14.55 Less: Expired, forfeited or cancelled (308 ) 15.58 Nonvested at June 30, 2019 50,765 $ 13.98

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2019
Investments [Abstract]
Available-for-sale Securities	Available-for-Sale June 30, 2019 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 246,318 $ 3,648 $ (897 ) $ 249,069 Obligations of states and political subdivisions 6,809 287 (7 ) 7,089 Corporate bonds 6,494 120 (5 ) 6,609 U.S. Treasury securities 1,994 2 — 1,996 $ 261,615 $ 4,057 $ (909 ) $ 264,763 December 31, 2018 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 271,685 $ 984 $ (3,620 ) $ 269,049 Obligations of states and political subdivisions 14,440 165 (205 ) 14,400 Corporate bonds 6,493 74 (59 ) 6,508 U.S. Treasury securities 4,979 — (3 ) 4,976 $ 297,597 $ 1,223 $ (3,887 ) $ 294,933
Held-to-maturity Securities	June 30, 2019 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 264 $ 16 $ — $ 280 December 31, 2018 Amortized Gross Gross Estimated Debt securities: U.S. Government Agencies and Sponsored Agencies $ 292 $ 14 $ — $ 306
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	June 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 14,165 $ (101 ) 78,988 (796 ) $ 93,153 $ (897 ) Obligations of states and political subdivisions — — 1,212 (7 ) 1,212 (7 ) Corporate bonds — — 1,989 (5 ) 1,989 (5 ) $ 14,165 $ (101 ) $ 82,189 $ (808 ) $ 96,354 $ (909 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 39,267 $ (310 ) $ 138,894 $ (3,310 ) $ 178,161 $ (3,620 ) Obligations of states and political subdivisions 2,168 (28 ) 5,583 (177 ) 7,751 (205 ) Corporate bonds 497 (4 ) 1,938 (55 ) 2,435 (59 ) U.S. Treasury securities 4,976 (3 ) — — 4,976 (3 ) $ 46,908 $ (345 ) $ 146,415 $ (3,542 ) $ 193,323 $ (3,887 )
Available-for-sale Securities, Debt Maturities, Basis of Allocation	Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 2,749 $ 2,752 After one year through five years 3,096 3,129 After five years through ten years 6,301 6,526 After ten years 3,151 3,287 15,297 15,694 Investment securities not due at a single maturity date: U.S. Government Agencies and Sponsored Agencies 246,318 249,069 $ 264 $ 280 $ 261,615 $ 264,763 $ 264 $ 280

6. IMPAIRED AND NONPERFORMING_2

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2019
Loan and Lease Receivables, Impaired [Abstract]
Schedule of Nonperforming loans and leases and other assets and OREO	(dollars in thousands) June 30, December 31, Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ — $ 27 Nonaccrual loans and leases that are past due — — Loans and leases past due 90 days and accruing interest — — Other real estate owned 957 957 Total nonperforming assets $ 957 $ 984 Nonperforming loans and leases to total loans and leases 0.00 % 0.01 % Total nonperforming assets to total assets 0.14 % 0.14 %
Schedule of Impaired Financing Receivables	(dollars in thousands) As of June 30, 2019 As of December 31, 2018 Recorded Investment Unpaid Related Recorded Unpaid Related With no related allowance recorded: Real estate-commercial $ 5,588 $ 5,722 $ — $ 5,645 $ 5,879 $ — Real estate-residential 321 408 — 323 410 — Subtotal $ 5,909 $ 6,130 $ — $ 5,968 $ 6,289 $ — With an allowance recorded: Real estate-commercial $ 1,669 $ 1,744 $ 79 2,138 2,217 132 Real estate-residential 279 279 26 596 596 53 Subtotal $ 1,948 $ 2,023 $ 105 $ 2,734 $ 2,813 $ 185 Total: Real estate-commercial $ 7,257 $ 7,466 $ 79 $ 7,783 $ 8,096 $ 32 Real estate-residential 600 687 26 919 1,006 53 $ 7,857 $ 8,153 $ 105 $ 8,702 $ 9,102 $ 185
Schedule of Average Balance Recorded to Imapired Loans and Leases	Average Recorded Investments Average Recorded Investments June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Commercial $ — $ 1,562 $ — $ 1,580 Real estate-commercial 7,282 8,794 7,373 8,828 Real estate-residential 602 1,596 606 1,602 Consumer — 69 — 69 Total $ 7,884 $ 12,021 $ 7,979 $ 12,079
Schedule of Interest Oncome Recognized on Impaired Loans and Leases	Interest Income Recognized Interest Income Recognized June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Real estate-commercial $ 106 $ 129 $ 218 $ 238 Real estate-residential 9 21 16 41 Consumer — — — 2 Total $ 115 $ 150 $ 234 $ 281

8. ALLOWANCE FOR LOAN AND LEA_2

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	6 Months Ended
	Jun. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]
Schedule of Recorded Investment Evaluated Based on Internal Risk Ratings	June 30, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 30,276 $ 200,668 $ 52,612 $ 10,032 $ 28,659 Watch 5,041 7,244 — — 635 Special mention 24 — — — — Substandard — 138 — — — Doubtful or loss — — — — — Total $ 35,341 $ 208,050 $ 52,612 $ 10,032 $ 29,294 Credit Risk Profile by Internally Assigned Grade Leases Agriculture Consumer Total Grade: Pass $ 2 $ 7,084 $ 20,354 $ 349,687 Watch — — 22 12,942 Special mention — — — 24 Substandard — — — 138 Doubtful or loss — — — — Total $ 2 $ 7,084 $ 20,376 $ 362,791 December 31, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,570 $ 185,548 $ 52,301 $ 5,685 $ 15,373 Watch 53 13,118 3,838 — 965 Special mention — 1,087 — — — Substandard 27 141 — — — Doubtful or loss — — — — — Total $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 Credit Risk Profile by Internally Assigned Grade Leases Agriculture Consumer Total Grade: Pass $ 32 $ 4,419 $ 10,691 $ 303,619 Watch — — 22 17,996 Special mention — — 1 1,088 Substandard — — — 168 Doubtful or loss — — — — Total $ 32 $ 4,419 $ 10,714 $ 322,871
Summary of Analysis of Allowance for Loan Losses	June 30, 2019 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 $ — $ 88 $ 192 $ 279 $ 4,392 Provision for loan losses 123 (35 ) (174 ) 187 138 — 43 126 (48 ) 360 Loans charged-off — — — — — — — — — — Recoveries 3 6 — — — — — — — 9 Ending balance, June 30, 2019 $ 794 $ 2,085 $ 390 $ 454 $ 358 $ — $ 131 $ 318 $ 231 $ 4,761 Ending balance: Individually evaluated for impairment $ — $ 79 $ — $ — $ 26 $ — $ — $ — $ — $ 105 Ending balance: Collectively evaluated for impairment $ 794 $ 2,006 $ 390 $ 454 $ 332 $ — $ 131 $ 318 $ 231 $ 4,656 Loans Ending balance $ 35,341 $ 208,050 $ 52,612 $ 10,032 $ 29,294 $ 2 $ 7,084 $ 20,376 $ — $ 362,791 Ending balance: Individually evaluated for impairment $ — $ 7,257 $ — $ — $ 600 $ — $ — $ — $ — $ 7,857 Ending balance: Collectively evaluated for impairment $ 35,341 $ 200,793 $ 52,612 $ 10,032 $ 28,694 $ 2 $ 7,084 $ 20,376 $ — $ 354,934 Allowance for Loan and Lease Losses Beginning balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ — $ 168 $ 257 $ 283 $ 4,577 Provision for loan losses 132 51 (30 ) 46 9 — (37 ) 61 (52 ) 180 Loans charged off — — — — — — — — — — Recoveries 1 3 — — — — — — — 4 Ending balance, June 30, 2019 $ 794 $ 2,085 $ 390 $ 454 $ 358 $ — $ 131 $ 318 $ 231 $ 4,761 December 31, 2018 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 132 $ — $ — $ 53 $ — $ — $ — $ — $ 185 Ending balance: Collectively evaluated for impairment $ 668 $ 1,982 $ 564 $ 267 $ 167 $ — $ 88 $ 192 $ 279 $ 4,207 Loans Ending balance $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 $ 32 $ 4,419 $ 10,714 $ — $ 322,871 Ending balance: Individually evaluated for impairment $ — $ 7,783 $ — $ — $ 919 $ — $ — $ — $ — $ 8,702 Ending balance: Collectively evaluated for impairment $ 29,650 $ 192,111 $ 56,139 $ 5,685 $ 15,419 $ 32 $ 4,419 $ 10,714 $ — $ 314,169 June 30, 2018 Real Estate Other (dollars in thousands) Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 213 (78 ) (208 ) 29 34 (1 ) 18 (3 ) (4 ) — Loans charged-off — — — — — — — — — — Recoveries 9 4 — — — 1 — — — 14 Ending balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492 Allowance for Loan and Lease Losses Beginning balance, March 31, 2018 $ 546 $ 2,143 $ 966 $ 288 $ 218 $ — $ 31 $ 15 $ 281 $ 4,488 Provision for loan losses 121 (45 ) (127 ) 10 21 — 18 (4 ) 6 — Loans charged off — — — — — — — — — — Recoveries 2 2 — — — — — — — 4 Ending balance, June 30, 2018 $ 669 $ 2,100 $ 839 $ 298 $ 239 $ — $ 49 $ 11 $ 287 $ 4,492
Summary of Activity in Allowance for Loan Losses by Loan Class	June 30, 2019 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 35,341 $ 35,341 — $ — Real estate: Commercial — — — — 208,050 208,050 — — Multi-family — — — — 52,612 52,612 — — Construction — — — — 10,032 10,032 — — Residential — — — — 29,294 29,294 — — Other: Leases — — — — 2 2 — — Agriculture — — — — 7,084 7,084 — — Consumer — — — — 20,376 20,376 — — Total $ — $ — $ — $ — $ 362,791 $ 362,791 $ — $ — December 31, 2018 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,650 $ 29,650 $ — $ 27 Real estate: Commercial — — — — 199,894 199,894 — — Multi-family — — — — 56,139 56,139 — — Construction — — — — 5,685 5,685 — — Residential — — — — 16,338 16,338 — — Other: Leases — — — — 32 32 — — Agriculture — — — — 4,419 4,419 — — Consumer — — — — 10,714 10,714 — — Total $ — $ — $ — $ — $ 322,871 $ 322,871 $ — $ 27

9. LEASES (Tables)

9. LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Supplemental Lease Information	Balance Sheet Operating lease asset classified as other assets $ 2,954,000 Operating lease liability classified as other liabilities 3,187,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 378,000 Weighted average lease term, in years 6.16 Weighted average discount rate (1) 3.06 % Operating cash flows $ 376,000
Maturity Analysis of the Company's Lease Liabilities	Balance July 1, 2019 to June 30, 2020 $ 713,000 July 1, 2020 to June 30, 2021 679,000 July 1, 2021 to June 30, 2022 653,000 July 1, 2022 to June 30, 2023 579,000 July 1, 2023 to June 30, 2024 285,000 Thereafter 786,000 Total lease payments 3,695,000 Less: Interest (508,000 ) Present value of lease liabilities $ 3,187,000

12. FAIR VALUE MEASUREMENTS (Ta

12. FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings	Carrying Fair Value Measurements Using: June 30, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 16,764 $ 16,764 $ — $ — $ 16,764 Federal funds sold — — — — — Interest-bearing deposits in banks 2,998 1,252 1,746 — 2,998 Available-for-sale securities 264,763 1,996 262,767 — 264,763 Held-to-maturity securities 264 — 280 — 280 FHLB stock 4,259 N/A N/A N/A N/A Net loans and leases: 358,408 — — 360,450 360,450 Accrued interest receivable 1,931 7 795 1,129 1,931 Financial liabilities: Deposits: Noninterest-bearing $ 214,012 $ 214,012 $ — $ — $ 214,012 Savings 71,689 71,689 — — 71,689 Money market 136,240 136,240 — — 136,240 Interest checking 70,791 70,791 — — 70,791 Time Deposits 88,405 — 88,530 — 88,530 Short-term borrowings 2,000 2,000 — — 2,000 Long-term borrowings 13,500 — 13,736 — 13,736 Accrued interest payable 181 6 175 — 181 Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 20,987 $ 20,987 $ — $ — $ 20,987 Federal funds sold 7,000 7,000 7,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 294,933 4,976 289,957 — 294,933 Held-to-maturity securities 292 — 306 — 306 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 318,516 — — 315,235 315,235 Accrued interest receivable 1,959 — 1,044 915 1,959 Financial liabilities: Deposits: Noninterest-bearing $ 214,745 $ 214,745 $ — $ — $ 214,745 Savings 72,522 72,522 — — 72,522 Money market 145,831 145,831 — — 145,831 Interest checking 69,489 69,489 — — 69,489 Time Deposits 88,087 — 88,078 — 88,078 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10.500 — 10,733 — 10,733 Accrued interest payable 63 1 62 — 63
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques	Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) June 30, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 249,069 $ — $ 249,069 $ — $ — Obligations of states and political subdivisions 7,089 — 7,089 — — Corporate bonds 6,609 — 6,609 — — U.S. Treasury bonds 1,996 1,996 — — — Total recurring $ 264,763 $ 1,996 $ 262,767 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned 957 — — 957 — Total nonrecurring $ 957 $ — $ — $ 957 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 269,049 $ — $ 269,049 $ — $ — Corporate bonds 6,508 — 6,508 Obligations of states and political subdivisions 14,400 — 14,400 — — U.S. Treasury securities 4,976 4,976 — — — Total recurring $ 294,933 $ 4,976 $ 289,957 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,274 $ — $ — $ 5,274 $ — Other real estate owned Land 957 — — 957 (4 ) Total nonrecurring $ 6,231 $ — $ — $ 6,231 $ (4 )

2. STOCK-BASED COMPENSATION (De

2. STOCK-BASED COMPENSATION (Details) - Options Shares $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Outstanding | shares	41,098
Granted | shares	0
Exercised | shares	(11,140)
Expired, forfeited or cancelled | shares	0
Outstanding | shares	29,958
Number of options vested | shares	27,735
Nonvested, Shares | shares	2,223
Weighted average exercise price, outstanding beginning | $ / shares	$ 8.71
Awarded | $ / shares	0
Exercised | $ / shares	8.5
Expired, forfeited or cancelled | $ / shares	0
Weighted average exercise price, outstanding ending | $ / shares	8.79
Weighted average exercise price of vested stock options (in dollars per share) | $ / shares	8.73
Weighted average exercise price of nonvested stock options (in dollars per share) | $ / shares	$ 9.56
Weighted years to maturity outstanding beginning	2 years 3 months 18 days
Weighted years to maturity outstanding Ending	4 years 10 months 24 days
Weighted average remaining contractual term in years, vested	4 years 9 months 18 days
Weighted average remaining contractual term in years, non-vested	5 years 10 months 24 days
Aggregate Intrinsic Value, options outstanding, beginning | $	$ 215
Aggregate Intrinsic Value, options outstanding, ending | $	104
Aggregate Intrinsic Value, options vested | $	98
Aggregate Intrinsic Value, options non-vested | $	$ 6

2. STOCK-BASED COMPENSATION (_2

2. STOCK-BASED COMPENSATION (Details 1) - Restricted stock	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Restricted Stock Nonvested beginning balance | shares	32,528
Awarded | shares	33,968
Less: Vested | shares	(15,423)
Less: Expired, forfeited or cancelled | shares	(308)
Restricted Stock Nonvested ending balance | shares	50,765
Weighted Average Grant Date Fair Value Nonvested beginning balance | $ / shares	$ 14.6
Awarded | $ / shares	13.67
Less: Vested | $ / shares	14.55
Less: Expired, forfeited or cancelled | $ / shares	15.58
Weighted Average Grant Date Fair Value Nonvested ending balance | $ / shares	$ 13.98

2. STOCK-BASED COMPENSATION (_3

2. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Share based compensation	$ 92	$ 78	$ 175	$ 151
Tax benefit of equity compensation expense	24	$ 19	45	$ 37
Compensation cost related to nonvested stock option awards not yet recorded	9		9
Compensation cost related to restricted stock awards not yet recorded	$ 612		$ 612
Intrinsic value used for stock options and restricted stock	$ 12.26		$ 12.26
Restricted stock
Stock options outstanding under Equity Incentive Plan	50,765		50,765
Period for recognition			4 years 10 months 24 days
Weighted average costs is expected period			1 year 2 months 12 days
Options Shares
Stock options outstanding under Equity Incentive Plan	29,958		29,958		41,098
Period for recognition			1 year 1 month 6 days
Weighted average costs is expected period			3 months 18 days
2010 Plan
Authorized shares that remain available for issuance under the 2010 Plan	1,271,673		1,271,673

3. COMMITMENTS AND CONTINGENC_2

3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Commitments
Loan commitments
Commitments	32,873	34,276
Standby letters of credit
Commitments	$ 300	$ 361

4. EARNINGS PER SHARE COMPUTA_2

4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Weighted average common shares outstanding	5,846,510	5,843,340	5,841,572	5,919,321
Dilutive effect of stock based awards	15,906	39,574	19,342	38,082
Antidilutive stock option excluded from earnings per share	0	0	0	0

5. INVESTMENT SECURITIES (Detai

5. INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Available for sale securities, Amortized Cost	$ 261,615	$ 297,597
Available for sale securities, Unrealized Gains	4,057	1,223
Available for sale securities, Unrealized Losses	(909)	(3,887)
Available for sale securities, Estimated Fair Value	264,763	294,933
Held-to-Maturity Debt securities Estimated Fair Value	280	306
US Government Agencies and Sponsored Agencies
Available for sale securities, Amortized Cost	246,318	271,685
Available for sale securities, Unrealized Gains	3,648	984
Available for sale securities, Unrealized Losses	(897)	(3,620)
Available for sale securities, Estimated Fair Value	249,069	269,049
Held-to-Maturity Debt securities Amortized Cost	264	292
Held-to-Maturity Debt securities Gross Unrealized Gains	16	14
Held-to-Maturity Debt securities Gross Unrealized Losses	0	0
Held-to-Maturity Debt securities Estimated Fair Value	280	306
Obligations of states and political subdivisions
Available for sale securities, Amortized Cost	6,809	14,440
Available for sale securities, Unrealized Gains	287	165
Available for sale securities, Unrealized Losses	(7)	(205)
Available for sale securities, Estimated Fair Value	7,089	14,400
Corporate Bonds
Available for sale securities, Amortized Cost	6,494	6,493
Available for sale securities, Unrealized Gains	120	74
Available for sale securities, Unrealized Losses	(5)	(59)
Available for sale securities, Estimated Fair Value	6,609	6,508
US Treasury securities
Available for sale securities, Amortized Cost	1,994
Available for sale securities, Unrealized Gains	2
Available for sale securities, Unrealized Losses	0
Available for sale securities, Estimated Fair Value	$ 1,996
Equity Securities - Corporate Stock
Available for sale securities, Amortized Cost		4,979
Available for sale securities, Unrealized Gains		0
Available for sale securities, Unrealized Losses		(3)
Available for sale securities, Estimated Fair Value		$ 4,976

5. INVESTMENT SECURITIES (Det_2

5. INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Less than 12 months, Estimated Fair Value	$ 14,165	$ 46,908
Less than 12 months, Unrealized Loss	(101)	(345)
12 months or more, Estimated Fair Value	82,189	146,415
12 months or more, Unrealized Loss	(808)	(3,542)
Total Estimated Fair Value	96,354	193,323
Total Unrealized Loss	(909)	(3,887)
US Government Agencies and Sponsored Agencies
Less than 12 months, Estimated Fair Value	14,165	39,267
Less than 12 months, Unrealized Loss	(101)	(310)
12 months or more, Estimated Fair Value	78,988	138,894
12 months or more, Unrealized Loss	(796)	(3,310)
Total Estimated Fair Value	93,153	178,161
Total Unrealized Loss	(897)	(3,620)
Obligations of states and political subdivisions
Less than 12 months, Estimated Fair Value	0	2,168
Less than 12 months, Unrealized Loss	0	(28)
12 months or more, Estimated Fair Value	1,212	5,583
12 months or more, Unrealized Loss	(7)	(177)
Total Estimated Fair Value	1,212	7,751
Total Unrealized Loss	(7)	(205)
Corporate Bonds
Less than 12 months, Estimated Fair Value	0	497
Less than 12 months, Unrealized Loss	0	(4)
12 months or more, Estimated Fair Value	1,989	1,938
12 months or more, Unrealized Loss	(5)	(55)
Total Estimated Fair Value	1,989	2,435
Total Unrealized Loss	$ (5)	(59)
US Treasury securities
Less than 12 months, Estimated Fair Value		4,976
Less than 12 months, Unrealized Loss		(3)
12 months or more, Estimated Fair Value		0
12 months or more, Unrealized Loss		0
Total Estimated Fair Value		4,976
Total Unrealized Loss		$ (3)

5. Disclosure - 5. INVESTMENT S

5. Disclosure - 5. INVESTMENT SECURITIES (Details 2) $ in Thousands	Jun. 30, 2019USD ($)
Amortized Cost
Within one year	$ 2,749
After one year through five years	3,096
After five years through ten years	6,301
After ten years	3,151
Total	15,297
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	261,615
Investment securities not due at a single maturity date: Held-to-Maturity	264
Amortized Cost | US Government Agencies Debt Securities [Member]
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	246,318
Investment securities not due at a single maturity date: Held-to-Maturity	264
Estimated Fair Value
Within one year	2,752
After one year through five years	3,129
After five years through ten years	6,526
After ten years	3,287
Total	15,694
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	264,763
Investment securities not due at a single maturity date: Held-to-Maturity	280
Estimated Fair Value | US Government Agencies Debt Securities [Member]
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	249,069
Investment securities not due at a single maturity date: Held-to-Maturity	$ 280

6. IMPAIRED AND NONPERFORMING_3

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total nonperforming assets	$ 957	$ 984
Nonperforming loans and leases to total loans and leases	0.00%	0.01%
Total nonperforming assets to total assets	0.14%	0.14%
Nonaccrual loans and leases that are current to terms (less than 30 days past due)
Total nonperforming assets	$ 0	$ 27
Nonaccrual loans and leases that are past due
Total nonperforming assets	0	0
Loans and leases past due 90 days and accruing interest
Total nonperforming assets	0	0
Other real estate owned
Total nonperforming assets	$ 957	$ 957

6. IMPAIRED AND NONPERFORMING_4

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
With no related allowance recorded: Recorded Investment	$ 5,909	$ 5,968
With no related allowance recorded: Unpaid Principal Balance	6,130	6,289
With no related allowance recorded: Related Allowance	0	0
With an allowance recorded: Recorded Investment	1,948	2,734
With an allowance recorded: Unpaid Principal Balance	2,023	2,813
With an allowance recorded: Related Allowance	105	185
Recorded Investment	7,857	8,702
Unpaid Principal Balance	8,153	9,102
Related Allowance	105	185
Real estate-commercial
With no related allowance recorded: Recorded Investment	5,588	5,645
With no related allowance recorded: Unpaid Principal Balance	5,722	5,879
With no related allowance recorded: Related Allowance	0	0
With an allowance recorded: Recorded Investment	1,669	2,138
With an allowance recorded: Unpaid Principal Balance	1,744	2,217
With an allowance recorded: Related Allowance	79	132
Recorded Investment	7,257	7,783
Unpaid Principal Balance	7,466	8,096
Related Allowance	79	32
Real Estate Residential
With no related allowance recorded: Recorded Investment	321	323
With no related allowance recorded: Unpaid Principal Balance	408	410
With no related allowance recorded: Related Allowance	0	0
With an allowance recorded: Recorded Investment	279	596
With an allowance recorded: Unpaid Principal Balance	279	596
With an allowance recorded: Related Allowance	26	53
Recorded Investment	600	919
Unpaid Principal Balance	687	1,006
Related Allowance	$ 26	$ 53

6. IMPAIRED AND NONPERFORMING_5

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Impaired Loans and Leases	$ 7,884	$ 12,021	$ 7,979	$ 12,079
Interest income recognized on impaired loans and leases	115	150	234	281
Commercial
Impaired Loans and Leases	0	1,562	0	1,580
Real estate-commercial
Impaired Loans and Leases	7,282	8,794	7,373	8,828
Interest income recognized on impaired loans and leases	106	129	218	238
Real Estate Residential
Impaired Loans and Leases	602	1,596	606	1,602
Interest income recognized on impaired loans and leases	9	21	16	41
Agriculture
Impaired Loans and Leases	0	69	0	69
Interest income recognized on impaired loans and leases	$ 0	$ 0	$ 0	$ 2

8. ALLOWANCE FOR LOAN AND LEA_3

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total	$ 362,791	$ 322,871
Commercial
Total	35,341	29,650
Real estate-commercial
Total	208,050	199,894
Real estate-multi-family
Total	52,612	56,139
Real estate-construction
Total	10,032	5,685
Real Estate Residential
Total	29,294	16,338
Leases
Total	2	32
Agriculture
Total	7,084	4,419
Consumer
Total	20,376	10,714
Pass
Total	349,687	303,619
Pass | Commercial Loan [Member]
Total	30,276	29,570
Pass | Real estate-commercial
Total	200,668	185,548
Pass | Real estate-multi-family
Total	52,612	52,301
Pass | Real Estate Construction
Total	10,032	5,685
Pass | Residential Real Estate [Member]
Total	28,659	15,373
Pass | Leases
Total	2	32
Pass | Agriculture
Total	7,084	4,419
Pass | Consumer Loan [Member]
Total	20,354	10,691
Watch
Total	12,942	17,996
Watch | Commercial Loan [Member]
Total	5,041	53
Watch | Real estate-commercial
Total	7,244	13,118
Watch | Real estate-multi-family
Total	0	3,838
Watch | Real Estate Construction
Total	0	0
Watch | Residential Real Estate [Member]
Total	635	965
Watch | Leases
Total	0	0
Watch | Agriculture
Total	0	0
Watch | Consumer Loan [Member]
Total	22	22
Special mention
Total	24	1,088
Special mention | Commercial Loan [Member]
Total	24	0
Special mention | Real estate-commercial
Total	0	1,087
Special mention | Real estate-multi-family
Total	0	0
Special mention | Real Estate Construction
Total	0	0
Special mention | Residential Real Estate [Member]
Total	0	0
Special mention | Leases
Total	0	0
Special mention | Agriculture
Total	0	0
Special mention | Consumer Loan [Member]
Total	0	1
Substandard
Total	138	168
Substandard | Commercial Loan [Member]
Total	0	27
Substandard | Real estate-commercial
Total	138	141
Substandard | Real estate-multi-family
Total	0	0
Substandard | Real Estate Construction
Total	0	0
Substandard | Residential Real Estate [Member]
Total	0	0
Substandard | Leases
Total	0	0
Substandard | Agriculture
Total	0	0
Substandard | Consumer Loan [Member]
Total	0	0
Doubtful or loss
Total	0	0
Doubtful or loss | Commercial Loan [Member]
Total	0	0
Doubtful or loss | Real estate-commercial
Total	0	0
Doubtful or loss | Real estate-multi-family
Total	0	0
Doubtful or loss | Real Estate Construction
Total	0	0
Doubtful or loss | Residential Real Estate [Member]
Total	0	0
Doubtful or loss | Leases
Total	0	0
Doubtful or loss | Agriculture
Total	0	0
Doubtful or loss | Consumer Loan [Member]
Total	$ 0	$ 0

8. ALLOWANCE FOR LOAN AND LEA_4

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Allowance for Loan and Lease Losses Beginning balance	$ 4,577	$ 4,488	$ 4,392	$ 4,478
Provision for loan losses	180	0	360	0
Loans charged off	0	0	0	0
Recoveries	4	4	9	14
Allowance for Loan and Lease Losses Ending balance	4,761	4,492	4,761	4,492
Allowance related to: Loans individually evaluated for impairment	105		105		$ 185
Allowance related to: Loans collectively evaluated for impairment	4,656		4,656		4,207
Loans	362,791		362,791		322,871
Loans individually evaluated for impairment	7,857		7,857		8,702
Loans collectively evaluated for impairment	354,934		354,934		314,169
Commercial
Allowance for Loan and Lease Losses Beginning balance	661	546	668	447
Provision for loan losses	132	121	123	213
Loans charged off	0	0	0	0
Recoveries	1	2	3	9
Allowance for Loan and Lease Losses Ending balance	794	669	794	669
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	794		794		668
Loans	35,341		35,341		29,650
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	35,341		35,341		29,650
Real estate-commercial
Allowance for Loan and Lease Losses Beginning balance	2,031	2,143	2,114	2,174
Provision for loan losses	51	(45)	(35)	(78)
Loans charged off	0	0	0	0
Recoveries	3	2	6	4
Allowance for Loan and Lease Losses Ending balance	2,085	2,100	2,085	2,100
Allowance related to: Loans individually evaluated for impairment	79		79		132
Allowance related to: Loans collectively evaluated for impairment	2,006		2,006		1,982
Loans	208,050		208,050		199,894
Loans individually evaluated for impairment	7,257		7,257		7,783
Loans collectively evaluated for impairment	200,793		200,793		192,111
Real estate-multi-family
Allowance for Loan and Lease Losses Beginning balance	420	966	564	1,047
Provision for loan losses	(30)	(127)	(174)	(208)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	390	839	390	839
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	390		390		564
Loans	52,612		52,612		56,139
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	52,612		52,612		56,139
Real estate-construction
Allowance for Loan and Lease Losses Beginning balance	408	288	267	269
Provision for loan losses	46	10	187	29
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	454	298	454	298
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	454		454		267
Loans	10,032		10,032		5,685
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	10,032		10,032		5,685
Real Estate Residential
Allowance for Loan and Lease Losses Beginning balance	349	218	220	205
Provision for loan losses	9	21	138	34
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	358	239	358	239
Allowance related to: Loans individually evaluated for impairment	26		26		53
Allowance related to: Loans collectively evaluated for impairment	332		332		167
Loans	29,294		29,294		16,338
Loans individually evaluated for impairment	600		600		919
Loans collectively evaluated for impairment	28,694		28,694		15,419
Leases
Allowance for Loan and Lease Losses Beginning balance	0	0	0	0
Provision for loan losses	0	0	0	(1)
Loans charged off	0	0	0	0
Recoveries	0	0	0	1
Allowance for Loan and Lease Losses Ending balance	0	0	0	0
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	0		0		0
Loans	2		2		32
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	2		2		32
Agriculture
Allowance for Loan and Lease Losses Beginning balance	168	31	88	31
Provision for loan losses	(37)	18	43	18
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	131	49	131	49
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	131		131		88
Loans	7,084		7,084		4,419
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	7,084		7,084		4,419
Consumer
Allowance for Loan and Lease Losses Beginning balance	257	15	192	14
Provision for loan losses	61	(4)	126	(3)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	318	11	318	11
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	318		318		192
Loans	20,376		20,376		10,714
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	20,376		20,376		10,714
Unallocated
Allowance for Loan and Lease Losses Beginning balance	283	281	279	291
Provision for loan losses	(52)	6	(48)	(4)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	231	$ 287	231	$ 287
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	231		231		279
Loans	0		0		0
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	$ 0		$ 0		$ 0

8. ALLOWANCE FOR LOAN AND LEA_5

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total Past Due	$ 0	$ 0
Current	362,791	322,871
Total Loans	362,791	322,871
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	27
30 -59 Days Past Due
Total Past Due	0	0
60 -89 Days Past Due
Total Past Due	0	0
Past Due Greater Than 90 Days
Total Past Due	0	0
Commercial
Total Past Due	0	0
Current	35,341	29,650
Total Loans	35,341	29,650
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	27
Commercial | 30 -59 Days Past Due
Total Past Due	0	0
Commercial | 60 -89 Days Past Due
Total Past Due	0	0
Commercial | Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-commercial
Total Past Due	0	0
Current	208,050	199,894
Total Loans	208,050	199,894
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-commercial | 30 -59 Days Past Due
Total Past Due	0	0
Real estate-commercial | 60 -89 Days Past Due
Total Past Due	0	0
Real estate-commercial | Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-multi-family
Total Past Due	0	0
Current	52,612	56,139
Total Loans	52,612	56,139
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-multi-family | 30 -59 Days Past Due
Total Past Due	0	0
Real estate-multi-family | 60 -89 Days Past Due
Total Past Due	0	0
Real estate-multi-family | Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-construction
Total Past Due	0	0
Current	10,032	5,685
Total Loans	10,032	5,685
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-construction | 30 -59 Days Past Due
Total Past Due	0	0
Real estate-construction | 60 -89 Days Past Due
Total Past Due	0	0
Real estate-construction | Past Due Greater Than 90 Days
Total Past Due	0	0
Real Estate Residential
Total Past Due	0	0
Current	29,294	16,338
Total Loans	29,294	16,338
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real Estate Residential | 30 -59 Days Past Due
Total Past Due	0	0
Real Estate Residential | 60 -89 Days Past Due
Total Past Due	0	0
Real Estate Residential | Past Due Greater Than 90 Days
Total Past Due	0	0
Leases
Total Past Due	0	0
Current	2	32
Total Loans	2	32
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Leases | 30 -59 Days Past Due
Total Past Due	0	0
Leases | 60 -89 Days Past Due
Total Past Due	0	0
Leases | Past Due Greater Than 90 Days
Total Past Due	0	0
Agriculture
Total Past Due	0	0
Current	7,084	4,419
Total Loans	7,084	4,419
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Agriculture | 30 -59 Days Past Due
Total Past Due	0	0
Agriculture | 60 -89 Days Past Due
Total Past Due	0	0
Agriculture | Past Due Greater Than 90 Days
Total Past Due	0	0
Consumer
Total Past Due	0	0
Current	20,376	10,714
Total Loans	20,376	10,714
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Consumer | 30 -59 Days Past Due
Total Past Due	0	0
Consumer | 60 -89 Days Past Due
Total Past Due	0	0
Consumer | Past Due Greater Than 90 Days
Total Past Due	$ 0	$ 0

9. LEASES (Details)

9. LEASES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Balance Sheet
Operating lease asset classified as premises and equipment	$ 2,954
Operating lease liability classified as other liabilities	3,187
Income Statement
Operating lease cost classified as occupancy and equipment expense	$ 378
Weighted average lease term, in years	6 years 1 month 28 days
Weighted average discount rate (1)	3.06%
Operating cash flows	$ 376

9. LEASES (Details 1)

9. LEASES (Details 1) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
July 1, 2019 to June 30, 2020	$ 713
July 1, 2020 to June 30, 2021	679
July 1, 2021 to June 30, 2022	653
July 1, 2022 to June 30, 2023	579
July 1, 2023 to June 30, 2024	285
Thereafter	786
Total lease payments	3,695
Less: Interest	(508)
Present value of lease liabilities	$ 3,187

10. BORROWING ARRANGEMENTS (Det

10. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Unsecured short-term borrowing arrangements with two of its correspondent banks	$ 17,000	$ 17,000
FHLB advances	$ 15,500	$ 15,500
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Minimum	1.31%	1.18%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Maximum	3.17%	3.17%
Remaining amounts available under the borrowing arrangement with the FHLB	$ 119,458	$ 107,262
Secured borrowing agreement with the Federal Reserve Bank of San Francisco	$ 9,528	$ 8,340

12. FAIR VALUE MEASUREMENTS (De

12. FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financial assets:
Cash and due from banks	$ 16,764	$ 20,987
Federal funds sold	0	(7,000)
Interest-bearing deposits in banks	2,998	1,746
Available-for-sale securities	264,763	294,933
Held-to-maturity securities	280	306
FHLB stock	4,259	3,932
Net loans and leases:	360,450	315,235
Accrued interest receivable	1,931	1,959
Deposits:
Noninterest-bearing	214,012	214,745
Savings	71,689	72,522
Money market	136,240	145,831
NOW accounts	70,791	69,489
Time Deposits	88,530	88,078
Short-term borrowings	2,000	5,000
Long-term borrowings	13,736	10,733
Accrued interest payable	181	63
Level 1
Financial assets:
Cash and due from banks	16,764	20,987
Federal funds sold	0	7,000
Interest-bearing deposits in banks	1,252	0
Available-for-sale securities	1,996	4,976
Held-to-maturity securities	0	0
FHLB stock	0	0
Net loans and leases:	0	0
Accrued interest receivable	7	0
Deposits:
Noninterest-bearing	214,012	214,745
Savings	71,689	72,522
Money market	136,240	145,831
NOW accounts	70,791	69,489
Time Deposits	0	0
Short-term borrowings	2,000	5,000
Long-term borrowings	0	0
Accrued interest payable	6	0
Level 2
Financial assets:
Cash and due from banks	0	0
Federal funds sold	0	0
Interest-bearing deposits in banks	1,746	1,746
Available-for-sale securities	262,767	289,957
Held-to-maturity securities	280	306
FHLB stock	0	0
Net loans and leases:	0	0
Accrued interest receivable	795	1,044
Deposits:
Noninterest-bearing	0	0
Savings	0	0
Money market	0	0
NOW accounts	0	0
Time Deposits	88,530	88,078
Short-term borrowings	0	0
Long-term borrowings	13,736	10,733
Accrued interest payable	175	63
Level 3
Financial assets:
Cash and due from banks	0	0
Federal funds sold	0	0
Interest-bearing deposits in banks	0	0
Available-for-sale securities	0	0
Held-to-maturity securities	0	0
FHLB stock	0	0
Net loans and leases:	360,450	315,235
Accrued interest receivable	1,129	915
Deposits:
Noninterest-bearing	0	0
Savings	0	0
Money market	0	0
NOW accounts	0	0
Time Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Accrued interest payable	0	0
Carrying Amount
Financial assets:
Cash and due from banks	16,764	20,987
Federal funds sold	0	7,000
Interest-bearing deposits in banks	2,998	1,746
Available-for-sale securities	264,763	294,933
Held-to-maturity securities	264	292
FHLB stock	4,259	3,932
Net loans and leases:	358,408	318,516
Accrued interest receivable	1,931	1,959
Deposits:
Noninterest-bearing	214,012	214,745
Savings	71,689	72,522
Money market	136,240	145,831
NOW accounts	70,791	69,489
Time Deposits	88,405	88,087
Short-term borrowings	2,000	5,000
Long-term borrowings	13,500	10,500
Accrued interest payable	$ 181	$ 63

12. FAIR VALUE MEASUREMENTS (_2

12. FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Recurring
Impaired loans:
Total gain (losses)	$ 0
Non Recurring
Impaired loans:
Total gain (losses)		$ (4)
US Government Agencies Debt Securities [Member]
Impaired loans:
Total gain (losses)	0
Obligations of states and political subdivisions
Impaired loans:
Total gain (losses)	0
Corporate bonds
Impaired loans:
Total gain (losses)	0
US Treasury securities
Impaired loans:
Total gain (losses)	0
Land
Impaired loans:
Total gain (losses)		(4)
Real estate-commercial
Impaired loans:
Total gain (losses)		0
Fair Value | US Government Agencies Debt Securities [Member]
Available-for-sale securities:
Asset fair value disclosure recurring	249,069	269,049
Fair Value | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	7,089	14,400
Fair Value | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	6,609
Fair Value | US Treasury securities
Available-for-sale securities:
Asset fair value disclosure recurring	1,996	4,976
Fair Value | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	264,763	294,933
Fair Value | Commercial Loan [Member]
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		5,274
Fair Value | Land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	957	957
Fair Value | Non Recurring
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	957	6,231
Fair Value | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		6,508
Level 1 | US Government Agencies Debt Securities [Member]
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 1 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 1 | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	0
Level 1 | US Treasury securities
Available-for-sale securities:
Asset fair value disclosure recurring	1,996	4,976
Level 1 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	1,996	4,976
Level 1 | Commercial Loan [Member]
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		0
Level 1 | Land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Level 1 | Non Recurring
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Level 1 | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		0
Level 2 | US Government Agencies Debt Securities [Member]
Available-for-sale securities:
Asset fair value disclosure recurring	249,069	269,049
Level 2 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	7,089	14,400
Level 2 | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	6,609
Level 2 | US Treasury securities
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 2 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	262,767	289,957
Level 2 | Commercial Loan [Member]
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		0
Level 2 | Land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Level 2 | Non Recurring
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Level 2 | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		6,508
Level 3 | US Government Agencies Debt Securities [Member]
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 3 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 3 | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	0
Level 3 | US Treasury securities
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 3 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 3 | Commercial Loan [Member]
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		5,274
Level 3 | Land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	957	957
Level 3 | Non Recurring
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	$ 957	6,231
Level 3 | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		$ 0