American River Bancshares (AMRB) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 07, 2020
Document and Entity Information:
Entity Registrant Name	AMERICAN RIVER BANKSHARES
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Entity Central Index Key	0001108236
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		5,918,375
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	CA
Entity File Number	0-31525

CONSOLIDATED BALANCE SHEET (Una

CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 15,272	$ 15,258
Interest-bearing deposits in banks	11,400	2,552
Total cash and cash equivalents	26,672	17,810
Investment securities:
Available-for-sale, at fair value	255,624	261,965
Held-to-maturity, at amortized cost fair value of $261 in 2020 and $266 in 2019	240	248
Loans, less allowance for loan losses of $5,637 at March 31, 2020 and $5,138 at December 31, 2019	388,044	393,802
Premises and equipment, net	996	1,191
Federal Home Loan Bank stock	4,259	4,259
Goodwill	16,321	16,321
Other real estate owned	846	846
Bank owned life insurance	15,847	15,763
Accrued interest receivable and other assets	7,204	8,148
Total Assets	716,053	720,353
Deposits:
Noninterest bearing	229,793	227,055
Interest-bearing	373,343	377,782
Total deposits	603,136	604,837
Short-term borrowings	5,000	9,000
Long-term borrowings	10,500	10,500
Accrued interest payable and other liabilities	10,563	13,107
Total liabilities	629,199	637,444
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 September 30, 2019 and 5,858,428 shares at December 31, 2018	30,634	30,536
Retained earnings	51,600	50,581
Accumulated other comprehensive income (loss), net of taxes	4,620	1,792
Total shareholders' equity	86,854	82,909
Total liabilities and shareholders' euity	$ 716,053	$ 720,353

CONSOLIDATED BALANCE SHEET (U_2

CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Amortized cost fair value	$ 261	$ 266
Allowance for loan and lease losses (in dollars)	$ 5,637	$ 5,138
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	5,918,375	5,898,878
Common stock, shares outstanding	5,918,375	5,898,878

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest and fees on loans:
Taxable	$ 4,675	$ 3,818
Exempt from Federal income taxes	230	149
Interest on Federal funds sold	0	5
Interest on deposits in banks	34	44
Interest and dividends on investment securities:
Taxable	1,739	2,024
Exempt from Federal income taxes	37	92
Total interest income	6,715	6,132
Interest expense:
Interest on deposits	440	489
Interest on borrowings	87	94
Total interest expense	527	583
Net interest income	6,188	5,549
Provision for loan and lease losses	495	180
Net interest income after provision for loan and lease losses	5,693	5,369
Noninterest income:
Service charges on deposit accounts	155	121
Gain on sale of securities	38	36
Other noninterest income	259	254
Total noninterest income	452	411
Noninterest expense:
Salaries and employee benefits	2,865	2,781
Occupancy	256	257
Furniture and equipment	143	140
Federal Deposit Insurance Corporation assessments	27	50
Expenses related to other real estate owned	5	4
Other expense	920	1,028
Total noninterest expense	4,216	4,260
Income before provision for income taxes	1,929	1,520
Provision for income taxes	497	374
Net income	$ 1,432	$ 1,146
Basic earnings per share	$ 0.24	$ 0.20
Diluted earnings per share	$ 0.24	$ 0.20

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 1,432	$ 1,146
Other comprehensive income (loss):
Increase in net unrealized gains on investment securities	4,053	2,626
Deferred tax expense	(1,198)	(776)
Increase in net unrealized gains on investment securities, net of tax	2,855	1,850
Reclassification adjustment for realized gains included in net income	(38)	(36)
Tax effect	11	10
Realized gains, net of tax	(27)	(26)
Total other comprehensive income (loss)	2,828	1,824
Comprehensive income (loss)	$ 4,260	$ 2,970

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, shares at Dec. 31, 2018	5,858,428
Begining balance, amount at Dec. 31, 2018	$ 30,103	$ 46,494	$ (1,876)	$ 74,721
Net income		1,146		1,146
Other comprehensive income, net of tax: Net change in unrealized gains on available-for-sale investment securities			1,824	1,824
Cash dividends		(293)		(293)
Net restricted stock award activity and related compensation expense, shares	18,394
Net restricted stock award activity and related compensation expense, amount	$ 79			79
Stock options exercised, shares	11,140
Stock options exercised, amount	$ 95			95
Stock option compensation expense, amount	$ 4			4
Ending balance, shares at Mar. 31, 2019	5,887,962
Ending balance, amount at Mar. 31, 2019	$ 30,281	47,347	(52)	77,576
Begining balance, shares at Dec. 31, 2019	5,898,878
Begining balance, amount at Dec. 31, 2019	$ 30,536	50,581	1,792	82,909
Net income		1,432		1,432
Other comprehensive income, net of tax: Net change in unrealized gains on available-for-sale investment securities			2,828	2,828
Cash dividends		(413)		(413)
Net restricted stock award activity and related compensation expense, shares	19,497
Net restricted stock award activity and related compensation expense, amount	$ 96			96
Stock option compensation expense, amount	$ 2			2
Ending balance, shares at Mar. 31, 2020	5,918,375
Ending balance, amount at Mar. 31, 2020	$ 30,634	$ 51,600	$ 4,620	$ 86,854

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 1,432	$ 1,146
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	495	180
Decrease in deferred loan origination fees and costs, net	(64)	(231)
Depreciation and amortization	219	66
Gain on sale and call of investment securities	(38)	(36)
Amortization of investment security premiums and discounts, net	304	404
Increase in cash surrender values of life insurance policies	(84)	(81)
Stock based compensation expense	98	83
(Increase)decrease in accrued interest receivable and other assets	(407)	349
Decrease in accrued interest payable and other liabilities	(2,380)	(656)
Net cash provided by operating activities	(425)	1,224
Cash flows from investing activities:
Proceeds from the sale of available-for-sale investment securities	4,229	2,022
Proceeds from matured available-for-sale investment securities	0	3,000
Purchases of available-for-sale investment securities	(4,987)	(4,702)
Proceeds from principal repayments for available-for-sale investment securities	10,848	10,232
Proceeds from principal repayments for held-to-maturity investment securities	8	15
Net decrease (increase) in loans	8,164	(11,746)
Purchases of loans	(2,837)	(5,694)
Purchases of equipment	(24)	(146)
Net cash used in investing activities	15,401	(7,019)
Cash flows from financing activities:
Net increase (decrease) in demand, interest-bearing and savings deposits	1,193	(17,895)
Net decrease in time deposits	(2,894)	(400)
(Decrease) increase in short-term borrowings	(4,000)	14,000
Proceeds from stock option exercise	0	95
Cash dividends paid	(412)	(293)
Net cash provided by financing activities	(6,114)	(4,493)
Increase (decrease) in cash and cash equivalents	8,862	(10,288)
Cash and cash equivalents at beginning of year	17,810	27,733
Cash and cash equivalents at end of period	26,672	19,445
Supplemental noncash disclosures:
Right of use asset and obligation recorded upon adoption of ASU 2016-02	0	3,570
Cash paid during the year for interest expense	533	551
Cash paid during the year for income taxes	$ 0	$ 0

1. CONSOLIDATED FINANCIAL STATE

1. CONSOLIDATED FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, the results of its operations and its cash flows for the three-month periods ended March 31, 2020 and 2019 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, 2019. The results of operations for the three-month period ended March 31, 2020 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.

2. STOCK-BASED COMPENSATION

2. STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 there were 29,958 stock options and 54,468 restricted shares outstanding. The 2010 Plan expired by its term on March 17, 2020. Accordingly, outstanding awards under the 2010 Plan are exercisable and will continue to vest until their expiration, but no new awards may be granted under the 2010 Plan. The 2010 Plan provided 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 were 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 required 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 shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended March 31, 2020 and 2019, the compensation cost recognized for equity compensation was $98,000 and $83,000, respectively. The recognized tax benefit for equity compensation expense was $26,000 and $21,000, for the three-month periods ended March 31, 2020 and 2019, respectively. At March 31, 2020, the total compensation cost related to nonvested stock option awards not yet recorded is $1,000. This amount will be recognized over the next 0.25 years and the weighted average period of recognizing these costs is expected to be 0.1 years. At March 31, 2020, the total compensation cost related to restricted stock awards not yet recorded is $591,000. This amount will be recognized over the next 4.2 years and the weighted average period of recognizing these costs is expected to be 1.3 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month periods ended March 31, 2020 and 2019. A summary of option activity under the Plans as of March 31, 2020 and changes during the period then ended is presented below: Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2020 29,958 $ 8.79 4.4 years $ 182 Granted — — — — Exercised — — — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2020 29,958 $ 8.79 4.2 years $ 8 Vested at March 31, 2020 27,735 $ 8.73 4.1 years $ 8 Non-vested at March 31, 2020 2,223 $ 9.56 5.1 years $ — Restricted Stock There were 19,497 shares of restricted stock awarded during the three-month period ended March 31, 2020 and 18,394 shares of restricted stock awarded during the three-month period ended March 31, 2019. There were 9,000 and 3,864 restricted stock awards that were fully vested during the three-month periods ended March 31, 2020 and 2019, respectively. The intrinsic value of nonvested restricted stock at March 31, 2020 was $470,000. Restricted Stock Shares Weighted Nonvested at January 1, 2020 43,971 $ 13.95 Awarded 19,497 14.64 Less: Vested 9,000 14.59 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2020 54,468 $ 14.09 Other Equity Awards There were no stock appreciation rights, restricted performance stock, unrestricted Company stock, or performance units awarded during the three-month periods ended March 31, 2020 or 2019 or outstanding at March 31, 2020 or December 31, 2019. The intrinsic value used for stock options and restricted stock was derived from the market price of the Company’s common stock of $8.62 as of March 31, 2020.

3. COMMITMENTS AND CONTINGENCIE

3. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2020
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 $30,524,000 and standby letters of credit of approximately $60,000 at March 31, 2020 and loan commitments of approximately $40,324,000 and standby letters of credit of approximately $300,000 at December 31, 2019. 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 2020 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 March 31, 2020 or December 31, 2019.

4. EARNINGS PER SHARE COMPUTATI

4. EARNINGS PER SHARE COMPUTATION	3 Months Ended
	Mar. 31, 2020
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 (5,858,919 shares and 5,836,579 shares for the three-month periods ended March 31, 2020 and 2019, respectively). 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 (24,657 shares for the three-month period ended March 31, 2020 and 21,048 shares for the three-month period ended March 31, 2019). For the three-month periods ended March 31, 2020 and 2019, 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	3 Months Ended
	Mar. 31, 2020
Investments [Abstract]
INVESTMENT SECURITIES	The amortized cost and estimated fair values of investment securities at March 31, 2020 and December 31, 2019 consisted of the following (dollars in thousands): Available-for-Sale March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 229,280 $ 7,529 $ (1,421 ) $ 235,388 Obligations of states and political subdivisions 13,290 310 (2 ) 13,598 Corporate bonds 6,496 147 (5 ) 6,638 $ 249,066 $ 7,986 $ (1,428 ) $ 255,624 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 239,617 $ 3,371 $ (1,101 ) $ 241,887 Obligations of states and political subdivisions 13,308 212 (73 ) 13,447 Corporate bonds 6,496 135 — 6,631 $ 259,421 $ 3,718 $ (1,174 ) $ 261,965 Net unrealized gains on available-for-sale investment securities totaling $6,558,000 were recorded, net of $1,938,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at March 31, 2020. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2020 totaled $4,229,000 and $38,000, respectively. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2020. Net unrealized gains on available-for-sale investment securities totaling $2,544,000 were recorded, net of $752,000 in tax liabilities, as accumulated other comprehensive loss within shareholders’ equity at December 31, 2019. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2019 totaled $2,022,000 and $36,000, respectively. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2019. Held-to-Maturity March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 240 $ 21 $ — $ 261 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 248 $ 18 $ — $ 266 There were no sales or transfers of held-to-maturity investment securities for the periods ended March 31, 2020 and March 31, 2019. Investment securities with unrealized losses at March 31, 2020 and December 31, 2019 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): March 31, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,050 $ (693 ) $ 22,708 $ (728 ) $ 61,758 $ (1,421 ) Obligations of states and political subdivisions 1,507 (2 ) — — 1,507 (2 ) Corporate bonds 2,491 (5 ) — — 2,491 (5 ) $ 43,048 $ (700 ) $ 22,708 $ (728 ) $ 65,756 $ (1,428 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 65,082 $ (438 ) $ 38,380 $ (663 ) $ 103,462 $ (1,101 ) Obligations of states and political subdivisions 8,060 (73 ) — — 8,060 (73 ) $ 73,142 $ (511 ) $ 38,380 $ (663 ) $ 111,522 $ (1,174 ) There were no held-to-maturity investment securities with unrealized losses as of March 31, 2020 or December 31, 2019. At March 31, 2020, the Company held 204 securities of which 22 were in a loss position for less than twelve months and 17 were in a loss position for twelve months or more. These 17 securities consisted of mortgage-backed, corporate and municipal securities. At December 31, 2019, the Company held 205 securities of which 41 were in a loss position for less than twelve months and 29 were in a loss position for twelve months or more. These 29 securities consisted of mortgage-backed, corporate and municipal 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 March 31, 2020 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 500 $ 498 After one year through five years 2,937 2,940 After five years through ten years 10,395 10,673 After ten years 5,954 6,125 19,786 20,236 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 229,280 235,388 $ 240 $ 261 $ 249,066 $ 255,624 $ 240 $ 261 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	3 Months Ended
	Mar. 31, 2020
Loan and Lease Receivables, Impaired [Abstract]
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	At March 31, 2020 and December 31, 2019, the recorded investment in nonperforming loans was zero in both periods. Nonperforming loans include all such loans 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. At March 31, 2020 and December 31, 2019, the recorded investment in other assets was zero and $517,000, respectively. During the first quarter of 2020, the Company sold the repossessed automobile that was in the other assets category at December 31, 2019 for $517,000. Nonperforming loans and other assets and OREO at March 31, 2020 and December 31, 2019 are summarized as follows (in thousands): March 31, December 31, Nonaccrual loans that are current to terms (less than 30 days past due) $ — $ — Nonaccrual loans that are past due — — Loans past due 90 days and accruing interest — — Other real estate owned 846 846 Other assets — 517 Total nonperforming assets $ 846 $ 1,363 Nonperforming loans to total loans — — Total nonperforming assets to total assets 0.12 % 0.19 % 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. Impaired loans as of and for the periods ended March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) As of March 31, 2020 As of December 31, 2019 Recorded Investment Unpaid Balance Related Allowance Recorded Investment Unpaid Balance Related Allowance With no related allowance recorded: Real estate-commercial $ 5,502 $ 5,636 $ — $ 5,530 $ 5,664 $ — Real estate-residential 316 403 — 318 405 — Subtotal $ 5,818 $ 6,039 $ — $ 5,848 $ 6,069 $ — With an allowance recorded: Real estate-commercial $ 1,596 $ 1,667 $ 126 1,622 1,693 133 Real estate-residential 130 130 8 134 134 9 Subtotal $ 1,726 $ 1,797 $ 134 $ 1,756 $ 1,827 $ 142 Total: Real estate-commercial $ 7,098 $ 7,303 $ 126 $ 7,152 $ 7,357 $ 133 Real estate-residential 446 533 8 452 539 9 $ 7,544 $ 7,836 $ 134 $ 7,604 $ 7,896 $ 142 The following table presents the average balance related to impaired loans for the periods indicated (in thousands): Average Recorded Investments March 31, March 31, Real estate-commercial $ 7,125 $ 7,823 Real estate-residential 449 915 Total $ 7,574 $ 8,738 The following table presents the interest income recognized on impaired loans for the periods indicated (in thousands): Interest Income Recognized March 31, March 31, Real estate-commercial $ 106 $ 114 Real estate-residential 7 11 Total $ 113 $ 125

7. TROUBLED DEBT RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS	3 Months Ended
	Mar. 31, 2020
Troubled Debt Restructuring, Debtor, Current Period [Abstract]
TROUBLED DEBT RESTRUCTURINGS	During the periods ended March 31, 2020 and 2019, there were no loans that were modified as troubled debt restructurings. There were no payment defaults during the three months ended March 31, 2020 or March 31, 2019 on troubled debt restructurings made in the preceding twelve months. At March 31, 2020 and December 31, 2019, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans” in Item 2.

8. ALLOWANCE FOR LOAN AND LEASE

8. ALLOWANCE FOR LOAN AND LEASE LOSSES	3 Months Ended
	Mar. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]
ALLOWANCE FOR LOAN AND LEASE LOSSES	The Company’s loan portfolio allocated by management’s internal risk ratings as of March 31, 2020 and December 31, 2019 are summarized below: March 31, 2020 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,000 $ 211,866 $ 52,082 $ 20,871 $ 28,538 Watch 37 4,291 — — 598 Special mention 4,850 — — — — Substandard — 134 — — — Doubtful or loss — — — — — Total $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,411 $ 26,587 $ 384,355 Watch — 73 4,999 Special mention — — 4,850 Substandard — — 134 Doubtful or loss — — — Total $ 6,411 $ 26,660 $ 394,338 December 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,085 $ 208,140 $ 56,818 $ 23,169 $ 28,570 Watch 4,915 6,329 — — 610 Special mention 19 — — — — Substandard — 135 — — — Doubtful or loss — — — — — Total $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,479 $ 26,317 $ 387,578 Watch — 75 11,929 Special mention — — 19 Substandard — — 135 Doubtful or loss — — — Total $ 6,479 $ 26,392 $ 399,661 The allocation of the Company’s allowance for loan losses and by portfolio segment and by impairment methodology are summarized below: March 31, 2020 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Beginning balance, January 1, 2020 $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 245 $ 5,138 Provision for loan losses 63 349 64 (98 ) 56 (4 ) 58 7 495 Loans charged-off — — — — — — — — — Recoveries 1 3 — — — — — — 4 Ending balance, March 31, 2020 $ 1,014 $ 2,258 $ 393 $ 888 $ 337 $ 103 $ 392 $ 252 $ 5,637 Ending balance: Individually evaluated for impairment $ — $ 126 $ — $ — $ 8 $ — $ — $ — $ 134 Ending balance: Collectively evaluated for impairment $ 1,014 $ 2,132 $ 393 $ 888 $ 329 $ 103 $ 392 $ 252 $ 5,503 Loans Ending balance $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 $ 6,411 $ 26,660 $ — $ 394,338 Ending balance: Individually evaluated for impairment $ — $ 7,098 $ — $ — $ 446 $ — $ — $ — $ 7,544 Ending balance: Collectively evaluated for impairment $ 42,887 $ 209,193 $ 52,082 $ 20,871 $ 28,690 $ 6,411 $ 26,660 $ — $ 386,794 December 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Ending balance $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 142 $ 5,138 Ending balance: Individually evaluated for impairment $ — $ 133 $ — $ — $ 9 $ — $ — $ — $ 142 Ending balance: Collectively evaluated for impairment $ 950 $ 1,773 $ 329 $ 986 $ 272 $ 107 $ 334 $ 245 $ 4,996 Loans Ending balance $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 $ 6,479 $ 26,392 $ — $ 399,661 Ending balance: Individually evaluated for impairment $ — $ 7,152 $ — $ — $ 452 $ — $ — $ — $ 7,604 Ending balance: Collectively evaluated for impairment $ 43,019 $ 207,452 $ 56,818 $ 23,169 $ 28,728 $ 6,479 $ 26,392 $ — $ 392,057 March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 80 65 4 180 Loans charged-off — — — — — — — — — Recoveries 2 3 — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ 168 $ 257 $ 283 $ 4,577 The Company’s aging analysis of the loan portfolio at March 31, 2020 and December 31, 2019 are summarized below: March 31, 2020 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ 4,834 $ — $ — $ 4,834 $ 38,053 $ 42,887 $ — $ — Real estate: Commercial 810 — — 810 215,481 216,291 — — Multi-family — — — — 52,082 52,082 — — Construction — — — — 20,871 20,871 — — Residential — — — — 29,136 29,136 — — Other: Agriculture — — — — 6,411 6,411 — — Consumer 36 — — 36 26,624 26,660 — — Total $ 5,680 $ — $ — $ 5,680 $ 388,658 $ 394,338 $ — $ — December 31, 2019 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 43,019 $ 43,019 $ — $ — Real estate: Commercial — — — — 214,604 214,604 — — Multi-family — — — — 56,818 56,818 — — Construction — — — — 23,169 23,169 — — Residential — — — — 29,180 29,180 — — Other: Agriculture — — — — 6,479 6,479 — — Consumer 75 — — — 26,317 26,392 — — Total $ 75 $ — $ — $ — $ 399,586 $ 399,661 $ — $ —

9. LEASES

9. LEASES	3 Months Ended
	Mar. 31, 2020
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 is 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 three months ended March 31, 2020 is as follows: Balance Sheet Operating lease asset classified as other assets $ 2,717,000 Operating lease liability classified as other liabilities 2,932,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 190,000 Weighted average lease term, in years 5.47 Weighted average discount rate (1) 2.98 % Operating cash flows $ 194,000 (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 March 31, 2020 was as follows: Balance April 1, 2020 to December 31, 2020 $ 579,000 January 1, 2021 to December 31, 2021 739,000 January 1, 2022 to December 31, 2022 707,000 January 1, 2023 to December 31, 2023 282,000 January 1, 2024 to December 31, 2024 273,000 Thereafter 657,000 Total lease payments 3,237,000 Less: Interest (305,000 ) Present value of lease liabilities $ 2,932,000

10. BORROWING ARRANGEMENTS

10. BORROWING ARRANGEMENTS	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	At March 31, 2020 and December 31, 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 March 31, 2020 or December 31, 2019. 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 March 31, 2020, bearing interest rates ranging from 1.31% to 3.17% and maturing between July 13, 2020 and November 24, 2023. Advances totaling $19,500,000 were outstanding from the FHLB at December 31, 2019, bearing interest rates ranging from 1.31% to 3.17% and maturing between January 1, 2020 and November 24, 2023. Remaining amounts available under the borrowing arrangement with the FHLB at March 31, 2020 and December 31, 2019 totaled $144,547,000 and $143,406,000, 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 March 31, 2020 and December 31, 2019 were $6,527,000 and $8,642,000, respectively. There were no advances outstanding under this borrowing arrangement as of March 31, 2020 and December 31, 2019.

11. INCOME TAXES

11. INCOME TAXES	3 Months Ended
	Mar. 31, 2020
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 periods ended March 31, 2020 and 2019.

12. FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value measurement is the exchange price to sell the asset or transfer the liability (exit price) in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: · Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. · Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities classified as available-for-sale are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,272 $ 15,272 $ — $ — $ 15,272 Interest-bearing deposits in banks 11,400 11,400 — — 11,400 Available-for-sale securities 255,624 — 255,624 — 255,624 Held-to-maturity securities 240 — 261 — 261 FHLB stock 4,259 N/A N/A N/A N/A Net loans 388,044 — — 399,333 399,333 Accrued interest receivable 2,012 — 731 1,281 2,012 Financial liabilities: Deposits: Noninterest-bearing $ 229,793 $ 229,793 $ — $ — $ 229,793 Savings 72,800 72,800 — — 72,800 Money market 162,184 162,184 — — 162,184 NOW accounts 67,444 67,444 — — 67,444 Time Deposits 70,915 — 71,206 — 71,206 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10,500 — 10,797 — 10,797 Accrued interest payable 114 6 108 — 114 Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,258 $ 15,258 $ — $ — $ 15,258 Interest-bearing deposits in banks 2,552 2,552 — — 2,552 Available-for-sale securities 261,965 — 261,965 — 261,965 Held-to-maturity securities 248 — 266 — 266 FHLB stock 4,259 N/A N/A N/A N/A Net loans: 393,802 — — 396,089 396,089 Accrued interest receivable 1,929 — 780 1,149 1,929 Financial liabilities: Deposits: Noninterest-bearing $ 227,055 $ 227,055 $ — $ — $ 227,055 Savings 75,820 75,820 — — 75,820 Money market 158,319 158,319 — — 158,319 NOW accounts 69,834 69,834 — — 69,834 Time Deposits 73,809 — 73,924 — 73,924 Short-term borrowings 9,000 9,000 — — 9,000 Long-term borrowings 10.500 — 10,714 — 10,714 Accrued interest payable 120 — 120 — 120 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 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) March 31, 2020 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Entities $ 235,388 $ — $ 235,388 $ — $ — Obligations of states and political subdivisions 13,598 — 13,598 — — Corporate Debt securities 6,638 — 6,638 — — Total recurring $ 255,624 $ — $ 255,624 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned Land $ 846 $ — $ — $ 846 $ — Total nonrecurring $ 846 $ — $ — $ 846 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 241,887 $ — $ 241,887 $ — $ — Corporate Debt securities 6,631 — 6,631 Obligations of states and political subdivisions 13,447 — 13,447 — — Total recurring $ 261,965 $ — $ 261,965 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other assets: Repossessed asset $ 517 $ — $ — $ 517 $ — Other real estate owned Land 846 — — 846 — Total nonrecurring $ 1,363 $ — $ — $ 1,363 $ — There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2020 or the twelve months ended December 31, 2019. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other assets and real estate owned

13. RECENTLY ISSUED ACCOUNTING

13. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820). – Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.”

14. NOVEL CORONAVIRUS PANDEMIC

14. NOVEL CORONAVIRUS PANDEMIC (COVID-19)	3 Months Ended
	Mar. 31, 2020
Novel Coronavirus Pandemic
NOVEL CORNOAVIRUS PANDEMIC (COVID-19)	The COVID-19 pandemic has placed significant health, economic and other major pressure throughout the communities we serve, the state of California, the United States and the entire world. We have implemented a number of procedures in response to the pandemic to support the safety and wellbeing of our employees and clients, that continue through the date of this report: · We have addressed the safety of our ten branches and our corporate office, following the guidelines of the Center for Disease Control. While the branches generally remain open to clients, we have taken steps, and continue to evaluate those steps, to push as much traffic and transactions as possible to our digital and electronic channels and our night depositories, and many of our employees can and are working remotely ; · We hold executive meetings to address issues that change rapidly; · We have provided extensions and deferrals to borrowers requesting such extensions and deferrals and who have demonstrated adverse effects from COVID-19 provided such clients were not 30 days past due; and · We have been participating in the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to help provide potentially forgivable loans to our business clients to provide them with additional working capital to enable them to retain their employees. Through May 4, 2020, we have received SBA approval to fund approximately 470 PPP loans totaling $80 million. We believe these loans and our participation in the program are good for our clients and the communities we serve. We continue to closely monitor this pandemic and expect to make future changes to respond to the pandemic as this situation continues to evolve. The potential financial impact is unknown at this time. However, if the economic downturn currently being experienced is sustained, it may adversely impact industries within our business footprint and impair the ability of the Company’s borrowers to fulfill their contractual obligations and reduce our opportunity to create new client relationships. This could cause the Company to experience a material adverse effect to its business operations, asset valuations, financial condition and results of operations. Material adverse effects may include valuation impairments on the Company’s loans, investments, goodwill, or deferred tax assets.

2. STOCK-BASED COMPENSATION (Ta

2. STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Schedule of share-based compensation, stock options, activity	Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2020 29,958 $ 8.79 4.4 years $ 182 Granted — — — — Exercised — — — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2020 29,958 $ 8.79 4.2 years $ 8 Vested at March 31, 2020 27,735 $ 8.73 4.1 years $ 8 Non-vested at March 31, 2020 2,223 $ 9.56 5.1 years $ —
Schedule of nonvested share activity	Restricted Stock Shares Weighted Nonvested at January 1, 2020 43,971 $ 13.95 Awarded 19,497 14.64 Less: Vested 9,000 14.59 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2020 54,468 $ 14.09

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
Investments [Abstract]
Available-for-sale securities	Available-for-Sale March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 229,280 $ 7,529 $ (1,421 ) $ 235,388 Obligations of states and political subdivisions 13,290 310 (2 ) 13,598 Corporate bonds 6,496 147 (5 ) 6,638 $ 249,066 $ 7,986 $ (1,428 ) $ 255,624 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 239,617 $ 3,371 $ (1,101 ) $ 241,887 Obligations of states and political subdivisions 13,308 212 (73 ) 13,447 Corporate bonds 6,496 135 — 6,631 $ 259,421 $ 3,718 $ (1,174 ) $ 261,965
Held-to-maturity securities	Held-to-Maturity March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 240 $ 21 $ — $ 261 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 248 $ 18 $ — $ 266
Available-for-sale securities, continuous unrealized loss position, fair value	March 31, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,050 $ (693 ) $ 22,708 $ (728 ) $ 61,758 $ (1,421 ) Obligations of states and political subdivisions 1,507 (2 ) — — 1,507 (2 ) Corporate bonds 2,491 (5 ) — — 2,491 (5 ) $ 43,048 $ (700 ) $ 22,708 $ (728 ) $ 65,756 $ (1,428 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 65,082 $ (438 ) $ 38,380 $ (663 ) $ 103,462 $ (1,101 ) Obligations of states and political subdivisions 8,060 (73 ) — — 8,060 (73 ) $ 73,142 $ (511 ) $ 38,380 $ (663 ) $ 111,522 $ (1,174 )
Available-for-sale securities, debt maturities, basis of allocation	Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 500 $ 498 After one year through five years 2,937 2,940 After five years through ten years 10,395 10,673 After ten years 5,954 6,125 19,786 20,236 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 229,280 235,388 $ 240 $ 261 $ 249,066 $ 255,624 $ 240 $ 261

6. IMPAIRED AND NONPERFORMING_2

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2020
Loan and Lease Receivables, Impaired [Abstract]
Schedule of nonperforming loans and other assets and OREO	March 31, December 31, Nonaccrual loans that are current to terms (less than 30 days past due) $ — $ — Nonaccrual loans that are past due — — Loans past due 90 days and accruing interest — — Other real estate owned 846 846 Other assets — 517 Total nonperforming assets $ 846 $ 1,363 Nonperforming loans to total loans — — Total nonperforming assets to total assets 0.12 % 0.19 %
Schedule of impaired financing receivables	(in thousands) As of March 31, 2020 As of December 31, 2019 Recorded Investment Unpaid Balance Related Allowance Recorded Investment Unpaid Balance Related Allowance With no related allowance recorded: Real estate-commercial $ 5,502 $ 5,636 $ — $ 5,530 $ 5,664 $ — Real estate-residential 316 403 — 318 405 — Subtotal $ 5,818 $ 6,039 $ — $ 5,848 $ 6,069 $ — With an allowance recorded: Real estate-commercial $ 1,596 $ 1,667 $ 126 1,622 1,693 133 Real estate-residential 130 130 8 134 134 9 Subtotal $ 1,726 $ 1,797 $ 134 $ 1,756 $ 1,827 $ 142 Total: Real estate-commercial $ 7,098 $ 7,303 $ 126 $ 7,152 $ 7,357 $ 133 Real estate-residential 446 533 8 452 539 9 $ 7,544 $ 7,836 $ 134 $ 7,604 $ 7,896 $ 142
Schedule of average balance recorded to imapired loans	Average Recorded Investments March 31, March 31, Real estate-commercial $ 7,125 $ 7,823 Real estate-residential 449 915 Total $ 7,574 $ 8,738
Schedule of interest income recognized on impaired loans	Interest Income Recognized March 31, March 31, Real estate-commercial $ 106 $ 114 Real estate-residential 7 11 Total $ 113 $ 125

8. ALLOWANCE FOR LOAN AND LEA_2

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]
Schedule of recorded investment evaluated based on internal risk ratings	March 31, 2020 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,000 $ 211,866 $ 52,082 $ 20,871 $ 28,538 Watch 37 4,291 — — 598 Special mention 4,850 — — — — Substandard — 134 — — — Doubtful or loss — — — — — Total $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,411 $ 26,587 $ 384,355 Watch — 73 4,999 Special mention — — 4,850 Substandard — — 134 Doubtful or loss — — — Total $ 6,411 $ 26,660 $ 394,338 December 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,085 $ 208,140 $ 56,818 $ 23,169 $ 28,570 Watch 4,915 6,329 — — 610 Special mention 19 — — — — Substandard — 135 — — — Doubtful or loss — — — — — Total $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,479 $ 26,317 $ 387,578 Watch — 75 11,929 Special mention — — 19 Substandard — — 135 Doubtful or loss — — — Total $ 6,479 $ 26,392 $ 399,661
Summary of analysis of allowance for loan losses	March 31, 2020 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Beginning balance, January 1, 2020 $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 245 $ 5,138 Provision for loan losses 63 349 64 (98 ) 56 (4 ) 58 7 495 Loans charged-off — — — — — — — — — Recoveries 1 3 — — — — — — 4 Ending balance, March 31, 2020 $ 1,014 $ 2,258 $ 393 $ 888 $ 337 $ 103 $ 392 $ 252 $ 5,637 Ending balance: Individually evaluated for impairment $ — $ 126 $ — $ — $ 8 $ — $ — $ — $ 134 Ending balance: Collectively evaluated for impairment $ 1,014 $ 2,132 $ 393 $ 888 $ 329 $ 103 $ 392 $ 252 $ 5,503 Loans Ending balance $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 $ 6,411 $ 26,660 $ — $ 394,338 Ending balance: Individually evaluated for impairment $ — $ 7,098 $ — $ — $ 446 $ — $ — $ — $ 7,544 Ending balance: Collectively evaluated for impairment $ 42,887 $ 209,193 $ 52,082 $ 20,871 $ 28,690 $ 6,411 $ 26,660 $ — $ 386,794 December 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Ending balance $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 142 $ 5,138 Ending balance: Individually evaluated for impairment $ — $ 133 $ — $ — $ 9 $ — $ — $ — $ 142 Ending balance: Collectively evaluated for impairment $ 950 $ 1,773 $ 329 $ 986 $ 272 $ 107 $ 334 $ 245 $ 4,996 Loans Ending balance $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 $ 6,479 $ 26,392 $ — $ 399,661 Ending balance: Individually evaluated for impairment $ — $ 7,152 $ — $ — $ 452 $ — $ — $ — $ 7,604 Ending balance: Collectively evaluated for impairment $ 43,019 $ 207,452 $ 56,818 $ 23,169 $ 28,728 $ 6,479 $ 26,392 $ — $ 392,057 March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 80 65 4 180 Loans charged-off — — — — — — — — — Recoveries 2 3 — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ 168 $ 257 $ 283 $ 4,577
Summary of activity in allowance for loan losses by loan class	March 31, 2020 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ 4,834 $ — $ — $ 4,834 $ 38,053 $ 42,887 $ — $ — Real estate: Commercial 810 — — 810 215,481 216,291 — — Multi-family — — — — 52,082 52,082 — — Construction — — — — 20,871 20,871 — — Residential — — — — 29,136 29,136 — — Other: Agriculture — — — — 6,411 6,411 — — Consumer 36 — — 36 26,624 26,660 — — Total $ 5,680 $ — $ — $ 5,680 $ 388,658 $ 394,338 $ — $ — December 31, 2019 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 43,019 $ 43,019 $ — $ — Real estate: Commercial — — — — 214,604 214,604 — — Multi-family — — — — 56,818 56,818 — — Construction — — — — 23,169 23,169 — — Residential — — — — 29,180 29,180 — — Other: Agriculture — — — — 6,479 6,479 — — Consumer 75 — — — 26,317 26,392 — — Total $ 75 $ — $ — $ — $ 399,586 $ 399,661 $ — $ —

9. LEASES (Tables)

9. LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Supplemental lease information	Balance Sheet Operating lease asset classified as other assets $ 2,717,000 Operating lease liability classified as other liabilities 2,932,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 190,000 Weighted average lease term, in years 5.47 Weighted average discount rate (1) 2.98 % Operating cash flows $ 194,000
Maturity analysis of the company's lease liabilities	Balance April 1, 2020 to December 31, 2020 $ 579,000 January 1, 2021 to December 31, 2021 739,000 January 1, 2022 to December 31, 2022 707,000 January 1, 2023 to December 31, 2023 282,000 January 1, 2024 to December 31, 2024 273,000 Thereafter 657,000 Total lease payments 3,237,000 Less: Interest (305,000 ) Present value of lease liabilities $ 2,932,000

12. FAIR VALUE MEASUREMENTS (Ta

12. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Schedule of assets and associated liabilities accounted for as secured borrowings	Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,272 $ 15,272 $ — $ — $ 15,272 Interest-bearing deposits in banks 11,400 11,400 — — 11,400 Available-for-sale securities 255,624 — 255,624 — 255,624 Held-to-maturity securities 240 — 261 — 261 FHLB stock 4,259 N/A N/A N/A N/A Net loans 388,044 — — 399,333 399,333 Accrued interest receivable 2,012 — 731 1,281 2,012 Financial liabilities: Deposits: Noninterest-bearing $ 229,793 $ 229,793 $ — $ — $ 229,793 Savings 72,800 72,800 — — 72,800 Money market 162,184 162,184 — — 162,184 NOW accounts 67,444 67,444 — — 67,444 Time Deposits 70,915 — 71,206 — 71,206 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10,500 — 10,797 — 10,797 Accrued interest payable 114 6 108 — 114 Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,258 $ 15,258 $ — $ — $ 15,258 Interest-bearing deposits in banks 2,552 2,552 — — 2,552 Available-for-sale securities 261,965 — 261,965 — 261,965 Held-to-maturity securities 248 — 266 — 266 FHLB stock 4,259 N/A N/A N/A N/A Net loans: 393,802 — — 396,089 396,089 Accrued interest receivable 1,929 — 780 1,149 1,929 Financial liabilities: Deposits: Noninterest-bearing $ 227,055 $ 227,055 $ — $ — $ 227,055 Savings 75,820 75,820 — — 75,820 Money market 158,319 158,319 — — 158,319 NOW accounts 69,834 69,834 — — 69,834 Time Deposits 73,809 — 73,924 — 73,924 Short-term borrowings 9,000 9,000 — — 9,000 Long-term borrowings 10.500 — 10,714 — 10,714 Accrued interest payable 120 — 120 — 120
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) March 31, 2020 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Entities $ 235,388 $ — $ 235,388 $ — $ — Obligations of states and political subdivisions 13,598 — 13,598 — — Corporate Debt securities 6,638 — 6,638 — — Total recurring $ 255,624 $ — $ 255,624 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned Land $ 846 $ — $ — $ 846 $ — Total nonrecurring $ 846 $ — $ — $ 846 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 241,887 $ — $ 241,887 $ — $ — Corporate Debt securities 6,631 — 6,631 Obligations of states and political subdivisions 13,447 — 13,447 — — Total recurring $ 261,965 $ — $ 261,965 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other assets: Repossessed asset $ 517 $ — $ — $ 517 $ — Other real estate owned Land 846 — — 846 — Total nonrecurring $ 1,363 $ — $ — $ 1,363 $ —

2. STOCK-BASED COMPENSATION (De

2. STOCK-BASED COMPENSATION (Details) - Options Shares $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Outstanding, beginning | shares	29,958
Granted | shares	0
Exercised | shares	0
Expired, forfeited or cancelled | shares	0
Outstanding, ending | shares	29,958
Number of options vested | shares	27,735
Nonvested, shares | shares	2,223
Weighted average exercise price, outstanding, beginning | $ / shares	$ 8.79
Granted | $ / shares	.00
Exercised | $ / shares	.00
Expired, forfeited or cancelled | $ / shares	.00
Weighted average exercise price, outstanding, ending | $ / shares	8.79
Weighted average exercise price of vested stock options | $ / shares	8.73
Weighted average exercise price of nonvested stock options | $ / shares	$ 9.56
Weighted years to maturity outstanding, beginning	4 years 4 months 24 days
Granted	0 years
Exercised	0 years
Expired, forfeited or cancelled	0 years
Weighted years to maturity outstanding, ending	4 years 2 months 12 days
Weighted average remaining contractual term in years, vested	4 years 1 month 2 days
Weighted average remaining contractual term in years, non-vested	5 years 1 month 6 days
Aggregate Intrinsic Value, options outstanding, beginning | $	$ 182
Aggregate Intrinsic Value, options outstanding, ending | $	8
Aggregate Intrinsic Value, options vested | $	8
Aggregate Intrinsic Value, options non-vested | $	$ 0

2. STOCK-BASED COMPENSATION (_2

2. STOCK-BASED COMPENSATION (Details 1) - Restricted Stock	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Restricted stock nonvested, beginning | shares	43,971
Awarded | shares	19,497
Less: vested | shares	9,000
Less: expired, forfeited or cancelled | shares	0
Restricted stock nonvested, ending | shares	54,468
Weighted average grant date fair value nonvested, beginning | $ / shares	$ 13.95
Awarded | $ / shares	14.64
Less: vested | $ / shares	14.59
Less: expired, forfeited or cancelled | $ / shares	0
Weighted average grant date fair value nonvested, ending | $ / shares	$ 14.09

2. STOCK-BASED COMPENSATION (_3

2. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share based compensation	$ 98	$ 83
Tax benefit of equity compensation expense	26	$ 21
Compensation cost related to nonvested stock option awards not yet recorded	1
Compensation cost related to restricted stock awards not yet recorded	591
Intrinsic value of nonvested restricted stock	$ 470,000
Intrinsic value used for stock options and restricted stock	$ 8.62
Options Shares
Stock options outstanding under Equity Incentive Plan	29,958		29,958
Period for recognition	4 months
Weighted average costs is expected period	1 month 6 days
Restricted Stock
Stock options outstanding under Equity Incentive Plan	54,468
Period for recognition	4 years 2 months 12 days
Weighted average costs is expected period	1 year 3 months 18 days
2010 Plan
Authorized shares that remain available for issuance under the 2010 Plan	0

3. COMMITMENTS AND CONTINGENC_2

3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Commitments
Loan Commitments
Commitments	30,524	40,324
Standby Letters of Credit
Commitments	$ 60	$ 300

4. EARNINGS PER SHARE COMPUTA_2

4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Weighted average common shares outstanding	5,858,919	5,836,579
Dilutive effect of stock based awards	24,657	21,048
Antidilutive stock option excluded from earnings per share	0	0

5. INVESTMENT SECURITIES (Detai

5. INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Available for sale securities, amortized cost	$ 249,066	$ 259,421
Available for sale securities, unrealized gains	7,986	3,718
Available for sale securities, unrealized losses	(1,428)	(1,174)
Available for sale securities, estimated fair value	255,624	261,965
Held-to-maturity debt securities amortized cost	240	248
Held-to-maturity debt securities gross unrealized gains	21	18
Held-to-maturity debt securities gross unrealized losses	0	0
Held-to-maturity debt securities estimated fair value	261	266
US Government Agencies and Sponsored Agencies
Available for sale securities, amortized cost	229,280	239,617
Available for sale securities, unrealized gains	7,529	3,371
Available for sale securities, unrealized losses	(1,421)	(1,101)
Available for sale securities, estimated fair value	235,388	241,887
Held-to-maturity debt securities amortized cost	240	248
Held-to-maturity debt securities gross unrealized gains	21	18
Held-to-maturity debt securities gross unrealized losses	0	0
Held-to-maturity debt securities estimated fair value	261	266
Obligations of States and Political Subdivisions
Available for sale securities, amortized cost	13,290	13,308
Available for sale securities, unrealized gains	310	212
Available for sale securities, unrealized losses	(2)	(73)
Available for sale securities, estimated fair value	13,598	13,447
Corporate Bonds
Available for sale securities, amortized cost	6,496	6,496
Available for sale securities, unrealized gains	147	135
Available for sale securities, unrealized losses	(5)	0
Available for sale securities, estimated fair value	$ 6,638	$ 6,631

5. INVESTMENT SECURITIES (Det_2

5. INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Less than 12 months, estimated fair value	$ 43,048	$ 73,142
Less than 12 months, unrealized loss	700	(511)
12 months or more, estimated fair value	22,708	38,380
12 months or more, unrealized loss	(728)	(663)
Total estimated fair value	65,756	111,522
Total unrealized loss	(1,428)	(1,174)
US Government Agencies and Sponsored Agencies
Less than 12 months, estimated fair value	39,050	65,082
Less than 12 months, unrealized loss	(693)	(438)
12 months or more, estimated fair value	22,708	38,380
12 months or more, unrealized loss	(728)	(663)
Total estimated fair value	61,758	103,462
Total unrealized loss	(1,421)	(1,101)
Obligations of States and Political Subdivisions
Less than 12 months, estimated fair value	1,507	8,060
Less than 12 months, unrealized loss	(2)	(73)
12 months or more, estimated fair value	0	0
12 months or more, unrealized loss	0	0
Total estimated fair value	1,507	8,060
Total unrealized loss	(2)	(73)
Corporate Bonds
Less than 12 months, estimated fair value	2,491	0
Less than 12 months, unrealized loss	(5)	0
12 months or more, estimated fair value	0	0
12 months or more, unrealized loss	0	0
Total estimated fair value	2,491	0
Total unrealized loss	$ (5)	$ 0

5. Disclosure - 5. INVESTMENT S

5. Disclosure - 5. INVESTMENT SECURITIES (Details 2) $ in Thousands	Mar. 31, 2020USD ($)
Amortized Cost
Within one year	$ 500
After one year through five years	2,937
After five years through ten years	10,395
After ten years	5,954
Total	19,786
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: available-for-sale	249,066
Investment securities not due at a single maturity date: held-to-maturity	240
Amortized Cost | US Government Agencies Debt Securities
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: available-for-sale	229,280
Investment securities not due at a single maturity date: held-to-maturity	240
Estimated Fair Value
Within one year	498
After one year through five years	2,940
After five years through ten years	10,673
After ten years	6,125
Total	20,236
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: available-for-sale	255,624
Investment securities not due at a single maturity date: held-to-maturity	261
Estimated Fair Value | US Government Agencies Debt Securities
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: available-for-sale	235,388
Investment securities not due at a single maturity date: held-to-maturity	$ 261

6. IMPAIRED AND NONPERFORMING_3

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total nonperforming assets	$ 846	$ 1,363
Nonperforming loans to total loans	0.00%	0.00%
Total nonperforming assets to total assets	12.00%	19.00%
Nonaccrual loans and leases that are current to terms (less than 30 days past due)
Total nonperforming assets	$ 0	$ 0
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	846	846
Other Assets
Total nonperforming assets	$ 0	$ 517

6. IMPAIRED AND NONPERFORMING_4

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
With no related allowance recorded: recorded investment	$ 5,818	$ 5,848
With no related allowance recorded: unpaid principal balance	6,039	6,069
With no related allowance recorded: related allowance	0	0
With an allowance recorded: recorded investment	1,726	1,756
With an allowance recorded: unpaid principal balance	1,797	1,827
With an allowance recorded: related allowance	134	142
Recorded investment	7,544	7,604
Unpaid principal balance	7,836	7,896
Related allowance	134	142
Real Estate Commercial
With no related allowance recorded: recorded investment	5,502	5,530
With no related allowance recorded: unpaid principal balance	5,636	5,664
With no related allowance recorded: related allowance	0	0
With an allowance recorded: recorded investment	1,596	1,622
With an allowance recorded: unpaid principal balance	1,667	1,693
With an allowance recorded: related allowance	126	133
Recorded investment	7,098	7,152
Unpaid principal balance	7,303	7,357
Related allowance	126	133
Real Estate Residential
With no related allowance recorded: recorded investment	316	318
With no related allowance recorded: unpaid principal balance	403	405
With no related allowance recorded: related allowance	0	0
With an allowance recorded: recorded investment	130	134
With an allowance recorded: unpaid principal balance	130	134
With an allowance recorded: related allowance	8	9
Recorded investment	446	452
Unpaid principal balance	533	539
Related allowance	$ 8	$ 9

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
	Mar. 31, 2020	Mar. 31, 2019
Impaired loans	$ 7,574	$ 8,738
Interest income recognized on impaired loans and leases	113	125
Real Estate Commercial
Impaired loans	7,125	7,823
Interest income recognized on impaired loans and leases	106	114
Real Estate Residential
Impaired loans	449	915
Interest income recognized on impaired loans and leases	$ 7	$ 11

8. ALLOWANCE FOR LOAN AND LEA_3

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total	$ 394,338	$ 399,661
Commercial
Total	42,887	43,019
Real Estate Commercial
Total	216,291	214,604
Real Estate Multi-Family
Total	52,082	56,818
Real Estate Construction
Total	20,871	23,169
Real Estate Residential
Total	0	29,180
Agriculture
Total	6,411	6,479
Consumer
Total	0	26,392
Pass
Total	384,355	387,578
Pass | Commercial Loan
Total	38,000	208,140
Pass | Real Estate Commercial
Total	211,866	38,085
Pass | Real Estate Multi-Family
Total	52,082	56,818
Pass | Real Estate Construction
Total	20,871	23,169
Pass | Residential Real Estate
Total	28,538	28,570
Pass | Agriculture
Total	6,411	6,479
Pass | Consumer Loan
Total	26,587	26,317
Watch
Total	4,999	11,929
Watch | Commercial Loan
Total	37	6,329
Watch | Real Estate Commercial
Total	4,291	4,915
Watch | Real Estate Multi-Family
Total	0	0
Watch | Real Estate Construction
Total	0	0
Watch | Residential Real Estate
Total	598	610
Watch | Agriculture
Total	0	0
Watch | Consumer Loan
Total	73	75
Special Mention
Total	4,850	19
Special Mention | Commercial Loan
Total	4,850	0
Special Mention | Real Estate Commercial
Total	0	19
Special Mention | Real Estate Multi-Family
Total	0	0
Special Mention | Real Estate Construction
Total	0	0
Special Mention | Residential Real Estate
Total	0	0
Special Mention | Agriculture
Total	0	0
Special Mention | Consumer Loan
Total	0	0
Substandard
Total	134	135
Substandard | Commercial Loan
Total	0	135
Substandard | Real Estate Commercial
Total	134	0
Substandard | Real Estate Multi-Family
Total	0	0
Substandard | Real Estate Construction
Total	0	0
Substandard | Residential Real Estate
Total	0	0
Substandard | Agriculture
Total	0	0
Substandard | Consumer Loan
Total	0	0
Doubtful or Loss
Total	0	0
Doubtful or Loss | Commercial Loan
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
Total	0	0
Doubtful or Loss | Agriculture
Total	0	0
Doubtful or Loss | Consumer Loan
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
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Allowance for loan losses, beginning	$ 5,138	$ 4,392
Provision for loan losses	495	180
Loans charged off	0	0
Recoveries	4	5
Allowance for loan losses, ending	5,637	4,577
Allowance related to: loans individually evaluated for impairment	134		$ 142
Allowance related to: loans collectively evaluated for impairment	5,503		4,996
Loans	394,338		399,661
Loans individually evaluated for impairment	7,544		7,604
Loans collectively evaluated for impairment	386,794		392,057
Commercial
Allowance for loan losses, beginning	950	668
Provision for loan losses	63	(9)
Loans charged off	0	0
Recoveries	1	2
Allowance for loan losses, ending	1,014	661
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	1,014		950
Loans	42,887		43,019
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	42,887		43,019
Real Estate Commercial
Allowance for loan losses, beginning	1,906	2,114
Provision for loan losses	349	(86)
Loans charged off	0	0
Recoveries	3	3
Allowance for loan losses, ending	2,258	2,031
Allowance related to: loans individually evaluated for impairment	126		133
Allowance related to: loans collectively evaluated for impairment	2,132		1,773
Loans	216,291		214,604
Loans individually evaluated for impairment	7,098		7,152
Loans collectively evaluated for impairment	209,193		207,452
Real Estate Multi-Family
Allowance for loan losses, beginning	329	564
Provision for loan losses	64	(144)
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	393	420
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	393		329
Loans	52,082		56,818
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	52,082		56,818
Real Estate Construction
Allowance for loan losses, beginning	986	267
Provision for loan losses	(98)	141
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	888	408
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	888		986
Loans	20,871		23,169
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	20,871		23,169
Real Estate Residential
Allowance for loan losses, beginning	281	220
Provision for loan losses	56	129
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	337	349
Allowance related to: loans individually evaluated for impairment	8		9
Allowance related to: loans collectively evaluated for impairment	329		272
Loans	0		29,180
Loans individually evaluated for impairment	446		452
Loans collectively evaluated for impairment	28,690		28,728
Agriculture
Allowance for loan losses, beginning	107	88
Provision for loan losses	(4)	80
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	103	168
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	103		107
Loans	6,411		6,479
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	6,411		6,479
Consumer
Allowance for loan losses, beginning	334	192
Provision for loan losses	58	65
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	392	257
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	392		334
Loans	0		26,392
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	26,660		26,392
Unallocated
Allowance for loan losses, beginning	245	279
Provision for loan losses	7	4
Loans charged off	0	0
Recoveries	0	0
Allowance for loan losses, ending	252	$ 283
Allowance related to: loans individually evaluated for impairment	0		0
Allowance related to: loans collectively evaluated for impairment	252		245
Loans			0
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	$ 0		$ 0

8. ALLOWANCE FOR LOAN AND LEA_5

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total past due	$ 5,680	$ 0
Current	388,658	399,586
Total loans	394,338	399,661
Past due greater than 90 days and accruing	0	0
Nonaccrual	0	0
30 -59 Days Past Due
Total past due	5,680	0
60 -89 Days Past Due
Total past due	0	0
Current	394,338
Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Commercial
Total past due	4,834	0
Current	38,053	43,019
Total loans	42,887	43,019
Past due greater than 90 days and accruing	0	0
Nonaccrual	0	0
Commercial | 30 -59 Days Past Due
Total past due	4,834	0
Commercial | 60 -89 Days Past Due
Total past due	0	0
Current	42,887
Commercial | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Real Estate Commercial
Total past due	810	0
Current	215,481	214,604
Total loans	216,291	214,604
Past due greater than 90 days and accruing	0	0
Nonaccrual	0	0
Real Estate Commercial | 30 -59 Days Past Due
Total past due	810	0
Real Estate Commercial | 60 -89 Days Past Due
Total past due	0	0
Current	216,291
Real Estate Commercial | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Real Estate Multi-Family
Total past due	0	0
Current	52,082	56,818
Total loans	52,082	56,818
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
Current	52,082
Real Estate Multi-Family | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Real Estate Construction
Total past due	0	0
Current	20,871	23,169
Total loans	20,871	23,169
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
Current	20,871
Real Estate Construction | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Real Estate Residential
Total past due	29,136	0
Current	29,136	29,180
Total loans	0	29,180
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
Current	0
Real Estate Residential | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Agriculture
Total past due	0	0
Current	6,411	6,479
Total loans	6,411	6,479
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
Current	6,411
Agriculture | Past Due Greater Than 90 Days
Total past due	0	0
Current	0
Consumer
Total past due	26,624	0
Current	26,660	26,317
Total loans	0	26,392
Past due greater than 90 days and accruing	0	0
Nonaccrual	0	0
Consumer | 30 -59 Days Past Due
Total past due	36	0
Consumer | 60 -89 Days Past Due
Total past due	0	0
Current	0
Consumer | Past Due Greater Than 90 Days
Total past due	36	$ 0
Current	$ 0

9. LEASES (Details)

9. LEASES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Balance Sheet
Operating lease asset classified as premises and equipment	$ 2,717
Operating lease liability classified as other liabilities	2,932
Income Statement
Operating lease cost classified as occupancy and equipment expense	$ 190
Weighted average lease term, in years	5 years 5 months 19 days
Weighted average discount rate	2.98%
Operating cash flows	$ 194

9. LEASES (Details 1)

9. LEASES (Details 1) $ in Thousands	Mar. 31, 2020USD ($)
Leases [Abstract]
April 1, 2020 to December 31, 2020	$ 579
January 1, 2021 to December 31, 2021	739
January 1, 2022 to December 31, 2022	707
January 1, 2023 to December 31, 2023	282
January 1, 2024 to December 31, 2024	273
Thereafter	657
Total lease payments	3,237
Less: interest	(305)
Present value of lease liabilities	$ 2,932

10. BORROWING ARRANGEMENTS (Det

10. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Unsecured short-term borrowing arrangements with two of its correspondent banks	$ 17,000
FHLB advances	$ 15,500
Federal Home Loan Bank, advances, Branch of FHLB Bank, interest rate, minimum	1.31%
Federal Home Loan Bank, advances, Branch of FHLB Bank, interest rate, maximum	3.17%
Remaining amounts available under the borrowing arrangement with the FHLB	$ 144,547	$ 143,406
Secured borrowing agreement with the Federal Reserve Bank of San Francisco	$ 6,527	$ 8,642

12. FAIR VALUE MEASUREMENTS (De

12. FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets:
Cash and due from banks	$ 15,272	$ 15,258
Interest-bearing deposits in banks	11,400	2,552
Available-for-sale securities	255,624	261,965
Held-to-maturity securities	261	266
FHLB stock	4,259	4,259
Net loans	399,333	396,089
Accrued interest receivable	2,012	1,929
Deposits:
Noninterest-bearing	229,793	227,055
Savings	72,800	75,820
Money market	162,184	158,319
NOW accounts	67,444	69,834
Time deposits	71,206	73,924
Short-term borrowings	5,000	9,000
Long-term borrowings	10,797	10,714
Accrued interest payable	114	120
Level 1
Financial assets:
Cash and due from banks	15,272	15,258
Interest-bearing deposits in banks	11,400	2,552
Available-for-sale securities	0	0
Held-to-maturity securities	0	0
FHLB stock	0	0
Net loans	0	0
Accrued interest receivable	0	0
Deposits:
Noninterest-bearing	229,793	227,055
Savings	72,800	75,820
Money market	162,184	158,319
NOW accounts	67,444	69,834
Time deposits	0	0
Short-term borrowings	5,000	9,000
Long-term borrowings	0	0
Accrued interest payable	6	0
Level 2
Financial assets:
Cash and due from banks	0	0
Interest-bearing deposits in banks	0	0
Available-for-sale securities	255,624	261,965
Held-to-maturity securities	261	266
FHLB stock	0	0
Net loans	0	0
Accrued interest receivable	731	780
Deposits:
Noninterest-bearing	0	0
Savings	0	0
Money market	0	0
NOW accounts	0	0
Time deposits	71,206	73,924
Short-term borrowings	0	0
Long-term borrowings	10,797	10,714
Accrued interest payable	108	120
Level 3
Financial assets:
Cash and due from banks	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	399,333	396,089
Accrued interest receivable	1,281	1,149
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	15,272	15,258
Interest-bearing deposits in banks	11,400	2,552
Available-for-sale securities	255,624	261,965
Held-to-maturity securities	240	248
FHLB stock	4,259	4,259
Net loans	388,044	393,802
Accrued interest receivable	2,012	1,929
Deposits:
Noninterest-bearing	229,793	227,055
Savings	72,800	75,820
Money market	162,184	158,319
NOW accounts	67,444	69,834
Time deposits	70,915	73,809
Short-term borrowings	5,000	9,000
Long-term borrowings	10,500	10,500
Accrued interest payable	$ 114	$ 120

12. FAIR VALUE MEASUREMENTS (_2

12. FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Non Recurring
Impaired loans:
Total gain (losses)	$ 0	$ 0
US Government Agencies Debt Securities
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
Land
Impaired loans:
Total gain (losses)	0	0
Repossessed asset
Impaired loans:
Total gain (losses)	0
Fair Value | US Government Agencies Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring	235,388	214,887
Fair Value | Obligations of States and Political Subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	13,598	13,447
Fair Value | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	6,638
Fair Value | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	255,624	261,965
Fair Value | Land
Impaired loans:
Assets, fair value disclosure, nonrecurring	846	846
Fair Value | Non Recurring
Impaired loans:
Assets, fair value disclosure, nonrecurring	846	1,363
Fair Value | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		6,631
Fair Value | Repossessed asset
Impaired loans:
Assets, fair value disclosure, nonrecurring		517
Level 1 | US Government Agencies Debt Securities
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 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	0	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 1 | Repossessed asset
Impaired loans:
Assets, fair value disclosure, nonrecurring		0
Level 2 | US Government Agencies Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring	235,388	241,887
Level 2 | Obligations of States and Political Subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	13,598	13,447
Level 2 | Corporate bonds
Available-for-sale securities:
Asset fair value disclosure recurring	6,638
Level 2 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	255,624	261,965
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		6,631
Level 2 | Repossessed asset
Impaired loans:
Assets, fair value disclosure, nonrecurring		0
Level 3 | US Government Agencies Debt Securities
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 | Recurring
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Level 3 | Land
Impaired loans:
Assets, fair value disclosure, nonrecurring	846	846
Level 3 | Non Recurring
Impaired loans:
Assets, fair value disclosure, nonrecurring	$ 846	1,363
Level 3 | Corporate Bonds
Available-for-sale securities:
Asset fair value disclosure recurring		0
Level 3 | Repossessed asset
Impaired loans:
Assets, fair value disclosure, nonrecurring		$ 517