First Northern Community Bancorp (FNRN) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	FIRST NORTHERN COMMUNITY BANCORP
Entity Central Index Key	1,114,927
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		11,661,857
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 139,659	$ 152,892
Certificates of deposit	5,635	1,984
Investment securities - available-for-sale	290,986	280,741
Loans, net of allowance for loan losses of $12,339 at September 30, 2018 and $11,133 at December 31, 2017	762,815	739,112
Loans held-for-sale	1,005	1,040
Stock in Federal Home Loan Bank and other equity securities, at cost	6,019	5,567
Premises and equipment, net	5,994	6,248
Interest receivable and other assets	31,805	30,074
Total Assets	1,243,918	1,217,658
Liabilities:
Demand deposits	405,635	382,157
Interest-bearing transaction deposits	315,584	312,569
Savings and MMDA's	338,339	336,592
Time, $250,000 or less	48,642	54,531
Time, over $250,000	16,416	18,891
Total deposits	1,124,616	1,104,740
Interest payable and other liabilities	12,713	12,874
Total Liabilities	1,137,329	1,117,614
Stockholders' Equity:
Common stock, no par value; 16,000,000 shares authorized; 11,661,857 shares issued and outstanding at September 30, 2018 and 11,630,129 shares issued and outstanding at December 31, 2017	86,165	85,583
Additional paid-in capital	977	977
Retained earnings	26,834	17,881
Accumulated other comprehensive loss, net	(7,387)	(4,397)
Total Stockholders' Equity	106,589	100,044
Total Liabilities and Stockholders' Equity	$ 1,243,918	$ 1,217,658

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Loans, allowance for loan losses	$ 12,339	$ 11,133
Stockholder's Equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	16,000,000	16,000,000
Common stock, shares issued (in shares)	11,661,857	11,630,129
Common stock, shares outstanding (in shares)	11,661,857	11,630,129

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest and dividend income:
Loans	$ 9,648	$ 8,394	$ 27,600	$ 24,566
Due from banks interest bearing accounts	650	419	1,594	1,042
Investment securities
Taxable	1,360	1,252	3,982	3,545
Non-taxable	32	61	105	209
Other earning assets	110	93	313	284
Total interest and dividend income	11,800	10,219	33,594	29,646
Interest expense:
Deposits	341	272	885	792
Total interest expense	341	272	885	792
Net interest income	11,459	9,947	32,709	28,854
Provision for loan losses	525	0	1,575	600
Net interest income after provision for loan losses	10,934	9,947	31,134	28,254
Non-interest income:
Service charges on deposit accounts	509	532	1,487	1,445
Gains on sales of loans held-for-sale	116	123	270	418
Investment and brokerage services income	157	157	477	445
Mortgage brokerage income	14	32	26	75
Loan servicing income	109	98	315	364
Fiduciary activities income	138	122	449	365
Debit card income	541	508	1,579	1,476
Gains (losses) on sales of available-for-sale securities	0	2	0	(14)
Gain on sale-leaseback of real estate	0	0	0	1,187
Other income	202	206	732	619
Total non-interest income	1,786	1,780	5,335	6,380
Non-interest expenses:
Salaries and employee benefits	5,117	4,445	15,497	13,649
Occupancy and equipment	715	747	2,127	2,136
Data processing	490	430	1,509	1,269
Stationery and supplies	88	85	293	263
Advertising	79	80	264	226
Directors' fees	74	86	214	221
Other real estate owned expense	5	4	5	3
Other expense	1,347	1,284	3,819	4,117
Total non-interest expenses	7,915	7,161	23,728	21,884
Income before provision for income taxes	4,805	4,566	12,741	12,750
Provision for income taxes	1,338	1,766	3,538	4,889
Net income	$ 3,467	$ 2,800	$ 9,203	$ 7,861
Basic earnings per common share (in dollars per share)	$ 0.30	$ 0.24	$ 0.80	$ 0.68
Diluted earnings per common share (in dollars per share)	$ 0.30	$ 0.24	$ 0.79	$ 0.67

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 3,467	$ 2,800	$ 9,203	$ 7,861
Other comprehensive (loss) income, net of tax:
Unrealized holding (loss) gains arising during the period, net of tax effect of $(230) and $116 for the three months ended September 30, 2018 and September 30, 2017, respectively, and $(1,207) and $186 for the nine months ended September 30, 2018 and September 30, 2017, respectively	(569)	176	(2,990)	280
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $0 and $(1) for the three months ended September 30, 2018 and September 30, 2017, respectively, and $0 and $6 for the nine months ended September 30, 2018 and September 30, 2017, respectively	0	(1)	0	8
Directors' and officers' retirement plan equity adjustments, net of tax effect of $0 for the three months ended September 30, 2018 and September 30, 2017, and $0 and $(31) for the nine months ended September 30, 2018 and September 30, 2017, respectively	0	0	0	(46)
Other comprehensive (loss) income, net of tax	(569)	175	(2,990)	242
Comprehensive income	$ 2,898	$ 2,975	$ 6,213	$ 8,103

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other comprehensive (loss) income, net of tax:
Unrealized holding (loss) gains arising during the period, tax	$ (230)	$ 116	$ (1,207)	$ 186
Reclassification adjustment due to losses realized on sales of securities, tax	0	(1)	0	6
Directors' and officer's retirement plan equity adjustments, tax	$ 0	$ 0	$ 0	$ (31)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net [Member]	Total
Balance at Dec. 31, 2016	$ 79,114	$ 977	$ 14,557	$ (2,350)	$ 92,298
Balance (in shares) at Dec. 31, 2016	11,148,446
Net income					7,861
Other comprehensive loss, net of taxes					242
Balance at Sep. 30, 2017				(2,108)
Balance at Dec. 31, 2016	$ 79,114	977	14,557	(2,350)	92,298
Balance (in shares) at Dec. 31, 2016	11,148,446
Net income			8,748		8,748
Other comprehensive loss, net of taxes				(1,448)	(1,448)
Stock dividend adjustment	$ 207		(207)		0
Stock dividend adjustment (in shares)	289
Tax rate change reclassification			599	(599)	0
4% stock dividend declared in 2018	$ 5,806		(5,806)		0
4% stock dividend declared in 2018 (in shares)	447,312
Cash in lieu of fractional shares			(10)		(10)
Cash in lieu of fractional shares (in shares)	(129)
Stock-based compensation	$ 378				378
Common shares issued related to restricted stock grants and ESPP, net of restricted stock reversals	$ 78				78
Common shares issued related to restricted stock grants and ESPP, net of restricted stock reversals (in shares)	34,211
Balance at Dec. 31, 2017	$ 85,583	977	17,881	(4,397)	100,044
Balance (in shares) at Dec. 31, 2017	11,630,129
Balance at Jun. 30, 2017				(2,283)
Net income					2,800
Other comprehensive loss, net of taxes					175
Balance at Sep. 30, 2017				(2,108)
Balance at Dec. 31, 2017	$ 85,583	977	17,881	(4,397)	100,044
Net income			9,203		9,203
Other comprehensive loss, net of taxes				(2,990)	(2,990)
Stock dividend adjustment	$ 240		(240)		0
Stock dividend adjustment (in shares)	628
Cash in lieu of fractional shares			(10)		(10)
Cash in lieu of fractional shares (in shares)	(159)
Stock-based compensation	$ 342				342
Common shares issued related to restricted stock grants, net of restricted stock reversals	$ 0				0
Common shares issued related to restricted stock grants, net of restricted stock reversals (in shares)	25,281
Stock options exercised, net	$ 0				0
Stock options exercised, net (in shares)	5,978
Balance at Sep. 30, 2018	$ 86,165	977	26,834	(7,387)	106,589
Balance (in shares) at Sep. 30, 2018	11,661,857
Balance at Jun. 30, 2018				(6,818)
Net income					3,467
Other comprehensive loss, net of taxes					(569)
Balance at Sep. 30, 2018	$ 86,165	$ 977	$ 26,834	$ (7,387)	$ 106,589
Balance (in shares) at Sep. 30, 2018	11,661,857

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical)	12 Months Ended
	Dec. 31, 2017
Common Stock [Member]
Stock dividend declared	4.00%

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities
Net income	$ 9,203	$ 7,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	425	449
Accretion and amortization of investment securities premiums and discounts, net	2,007	2,751
Valuation adjustment on mortgage servicing rights	0	(21)
Increase in deferred loan origination fees and costs, net	39	237
Provision for loan losses	1,575	600
Stock-based compensation	342	253
Losses on sales of available-for-sale securities	0	14
Gain on sale-leaseback of real estate	0	(1,187)
Gains on sales of loans held-for-sale	(270)	(418)
Proceeds from sales of loans held-for-sale	17,636	21,823
Originations of loans held-for-sale	(17,331)	(19,890)
Changes in assets and liabilities:
Increase in interest receivable and other assets	(524)	(765)
(Decrease) increase in interest payable and other liabilities	(161)	528
Net cash provided by operating activities	12,941	12,235
Cash Flows From Investing Activities
Proceeds from calls or maturities of available-for-sale securities	16,390	8,075
Proceeds from sales of available-for-sale securities	0	462
Principal repayments on available-for-sale securities	38,058	37,130
Purchase of available-for-sale securities	(70,897)	(73,128)
Net (increase) decrease in certificates of deposit	(3,651)	12,245
Net increase in loans	(25,317)	(24,133)
Net increase in stock in Federal Home Loan Bank and other equity securities, at cost	(452)	(1,158)
Proceeds from sale of bank premises and equipment	0	2,868
Purchases of bank premises and equipment, net	(171)	(1,209)
Net cash used in investing activities	(46,040)	(38,848)
Cash Flows From Financing Activities
Net increase in deposits	19,876	17,136
Cash dividends paid in lieu of fractional shares	(10)	(10)
Net cash provided by financing activities	19,866	17,126
Net decrease in Cash and Cash Equivalents	(13,233)	(9,487)
Cash and Cash Equivalents, beginning of period	152,892	159,643
Cash and Cash Equivalents, end of period	139,659	150,156
Cash paid during the period for:
Interest	861	775
Income taxes	2,605	5,115
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed	6,046	5,295
Decrease in directors' and officers' retirement plan equity adjustment, net of tax	0	(46)
Change in unrealized holding (losses) gains on available for sale securities, net of taxes	$ (2,990)	$ 288

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of First Northern Community Bancorp (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Articles 9 and 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of results expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. All material intercompany balances and transactions have been eliminated in consolidation.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
ACCOUNTING POLICIES [Abstract]
ACCOUNTING POLICIES	2. ACCOUNTING POLICIES The most significant accounting policies followed by the Company are presented in Note 1 to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, Management has identified the allowance for loan losses accounting to be the accounting area requiring the most subjective or complex judgments, and as such the accounting area that could be most subject to revision as new information becomes available. A discussion of the factors affecting accounting for the allowance for loan losses is included in the "Asset Quality" and "Allowance for Loan Losses" discussions below. Certain amounts in prior periods have been reclassified to conform to the current presentation. Application of these principles requires the Company to make certain estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Certain accounting policies inherently have a greater reliance on the use of estimates, assumptions and judgments and as such have a greater possibility of producing results that could be materially different than originally reported. Estimates, assumptions and judgments are necessary when assets and liabilities are required to be recorded at fair value, when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment writedown or valuation reserve to be established, or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are based either on quoted market prices or are provided by other third-party sources, when available. Recently Adopted Accounting Standards: In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ● Require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. ● Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ● Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). ● Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. We adopted the requirements of ASU 2016-01 effective January 1, 2018. The fair value of our loans held for investment, which is recorded at amortized cost, now incorporates the exit price notion. See Note 6, Fair Value Measurements. Recently Issued Accounting Standards: In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). ● A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and ● A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company currently leases ten properties. This ASU will result in the recording of a lease liability and a related right-of-use asset on the Company's financial statements. Management is currently in the process of quantifying the lease liability and right-of-use asset and evaluating the impact of this ASU on the Company's consolidated financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In March 2018, FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In July 2018, FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2018
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES The amortized cost, unrealized gains and losses and estimated fair values of investments in debt securities at September 30, 2018 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 32,912 $ — $ (257 ) $ 32,655 Securities of U.S. government agencies and corporations 39,822 — (366 ) 39,456 Obligations of states and political subdivisions 19,258 111 (206 ) 19,163 Collateralized mortgage obligations 64,964 — (2,937 ) 62,027 Mortgage-backed securities 142,433 17 (4,765 ) 137,685 Total debt securities $ 299,389 $ 128 $ (8,531 ) $ 290,986 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt securities at December 31, 2017 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 18,589 $ — $ (125 ) $ 18,464 Securities of U.S. government agencies and corporations 21,353 — (244 ) 21,109 Obligations of states and political subdivisions 23,138 216 (146 ) 23,208 Collateralized mortgage obligations 67,724 — (1,641 ) 66,083 Mortgage-backed securities 154,143 95 (2,361 ) 151,877 Total debt securities $ 284,947 $ 311 $ (4,517 ) $ 280,741 The Company had $1,810,000 and $16,390,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three and nine months ended September 30, 2018, respectively. The Company had $5,800,000 and $8,537,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three and nine months ended September 30, 2017, respectively. There were no gross realized gains on sales of available-for-sale securities for the three and nine months ended September 30, 2018. Gross realized gains on sales of available-for-sale securities were $2,000 for the three and nine months ended September 30, 2017. There were no gross realized losses on sales of available-for-sale securities for the three and nine months ended September 30, 2018. Gross realized losses from sales/calls of available-for-sale securities were $0 and $(16,000) for the three and nine months ended September 30, 2017, respectively. The amortized cost and estimated market value of debt securities at September 30, 2018, by contractual and expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 42,443 $ 42,278 Due after one year through five years 43,810 43,169 Due after five years through ten years 5,739 5,827 Subtotal 91,992 91,274 MBS & CMO 207,397 199,712 Total $ 299,389 $ 290,986 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2018, follows: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury securities $ 24,258 $ (98 ) $ 8,397 $ (159 ) $ 32,655 $ (257 ) Securities of U.S. government agencies and corporations 22,332 (152 ) 17,124 (214 ) 39,456 (366 ) Obligations of states and political subdivisions 5,466 (54 ) 7,523 (152 ) 12,989 (206 ) Collateralized mortgage obligations 9,104 (149 ) 52,923 (2,788 ) 62,027 (2,937 ) Mortgage-backed securities 36,680 (689 ) 96,391 (4,076 ) 133,071 (4,765 ) Total $ 97,840 $ (1,142 ) $ 182,358 $ (7,389 ) $ 280,198 $ (8,531 ) No decline in value was considered "other-than-temporary" during the first nine months of 2018. Ninety-three securities, all considered investment grade, which had a fair value of $97,840,000 and a total unrealized loss of $1,142,000, have been in an unrealized loss position for less than twelve months as of September 30, 2018. One hundred sixty-four securities, all considered investment grade, which had a fair value of $182,358,000 and a total unrealized loss of $7,389,000, have been in an unrealized loss position for more than twelve months as of September 30, 2018. The unrealized losses on the Company's investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates. The Company does not intend to sell the securities and has concluded it is not more likely than not that we will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, the Company does not consider these investments to be other than temporarily impaired as of September 30, 2018. The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer's financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2017, follows: Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 10,004 $ (2 ) $ 8,460 $ (123 ) $ 18,464 $ (125 ) Securities of U.S. government agencies and corporations 6,049 (50 ) 15,060 (194 ) 21,109 (244 ) Obligations of states and political subdivisions 7,677 (34 ) 7,116 (112 ) 14,793 (146 ) Collateralized mortgage obligations 31,679 (576 ) 34,404 (1,065 ) 66,083 (1,641 ) Mortgage-backed securities 62,320 (650 ) 76,478 (1,711 ) 138,798 (2,361 ) Total $ 117,729 $ (1,312 ) $ 141,518 $ (3,205 ) $ 259,247 $ (4,517 ) Investment securities carried at $37,170,000 and $32,399,000 at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2018
LOANS [Abstract]
LOANS	4. LOANS The composition of the Company's loan portfolio, by loan class, as of September 30, 2018 and December 31, 2017, was as follows: ($ in thousands) September 30, 2018 December 31, 2017 Commercial $ 129,381 $ 135,015 Commercial Real Estate 414,311 398,346 Agriculture 123,753 113,555 Residential Mortgage 47,641 42,081 Residential Construction 23,039 21,299 Consumer 36,019 38,900 774,144 749,196 Allowance for loan losses (12,339 ) (11,133 ) Net deferred origination fees and costs 1,010 1,049 Loans, net $ 762,815 $ 739,112 The Company manages asset quality and credit risk by maintaining diversification in its loan portfolio and through review processes that include analysis of credit requests and ongoing examination of outstanding loans and delinquencies, with particular attention to portfolio dynamics and loan mix. The Company strives to identify loans experiencing difficulty early enough to correct the problems, to record charge-offs promptly based on realistic assessments of collectability and current collateral values and to maintain an adequate allowance for loan losses at all times. Asset quality reviews of loans and other non-performing assets are administered using credit risk rating standards and criteria similar to those employed by state and federal banking regulatory agencies. Commercial loans, whether secured or unsecured, generally are made to support the short-term operations and other needs of small businesses. These loans are generally secured by the receivables, equipment, and other real property of the business and are susceptible to the related risks described above. Problem commercial loans are generally identified by periodic review of financial information that may include financial statements, tax returns, and payment history of the borrower. Based on this information, the Company may decide to take any of several courses of action, including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors. Notwithstanding, when repayment becomes unlikely based on the borrower's income and cash flow, repossession or foreclosure of the underlying collateral may become necessary. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, purchase invoices, or other appropriate documentation. Commercial real estate loans generally fall into two categories, owner-occupied and non-owner occupied. Loans secured by owner-occupied real estate are primarily susceptible to changes in the market conditions of the related business. This may be driven by, among other things, industry changes, geographic business changes, changes in the individual financial capacity of the business owner, general economic conditions and changes in business cycles. These same risks apply to Commercial loans whether secured by equipment, receivables or other personal property or unsecured. Problem commercial real estate loans are generally identified by periodic review of financial information that may include financial statements, tax returns, payment history of the borrower, and site inspections. Based on this information, the Company may decide to take any of several courses of action, including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors. Notwithstanding, when repayment becomes unlikely based on the borrower's income and cash flow, repossession or foreclosure of the underlying collateral may become necessary. Losses on loans secured by owner occupied real estate, equipment, or other personal property generally are dictated by the value of underlying collateral at the time of default and liquidation of the collateral. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven by more general economic conditions, underlying collateral generally has devalued more and results in larger losses due to default. Loans secured by non-owner occupied real estate are primarily susceptible to risks associated with swings in occupancy or vacancy and related shifts in lease rates, rental rates or room rates. Most often, these shifts are a result of changes in general economic or market conditions or overbuilding and resulting over-supply of space. Losses are dependent on the value of underlying collateral at the time of default. Values are generally driven by these same factors and influenced by interest rates and required rates of return as well as changes in occupancy costs. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, sales invoices, or other appropriate means. Agricultural loans, whether secured or unsecured, generally are made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or service. Agricultural loans are generally secured by inventory, receivables, equipment, and other real property. Agricultural loans primarily are susceptible to changes in market demand for specific commodities. This may be exacerbated by, among other things, industry changes, changes in the individual financial capacity of the business owner, general economic conditions and changes in business cycles, as well as adverse weather conditions such as drought or floods. Problem agricultural loans are generally identified by periodic review of financial information that may include financial statements, tax returns, crop budgets, payment history, and crop inspections. Based on this information, the Company may decide to take any of several courses of action, including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors. Notwithstanding, when repayment becomes unlikely based on the borrower's income and cash flow, repossession or foreclosure of the underlying collateral may become necessary. Residential mortgage loans, which are secured by real estate, are primarily susceptible to four risks: non-payment due to diminished or lost income; over-extension of credit; a lack of borrower's cash flow to sustain payments; and shortfalls in collateral value. In general, non-payment is usually due to loss of employment and follows general economic trends, particularly the upward movement in the unemployment rate, loss of collateral value, and demand shifts. Construction loans, whether owner-occupied or non-owner occupied residential development loans, are not only susceptible to the related risks described above but the added risks of construction, including cost over-runs, mismanagement of the project, or lack of demand and market changes experienced at time of completion. Losses are primarily related to underlying collateral value and changes therein as described above. Problem construction loans are generally identified by periodic review of financial information that may include financial statements, tax returns and payment history of the borrower. Based on this information, the Company may decide to take any of several courses of action, including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors, or repossession or foreclosure of the underlying collateral. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, purchase invoices, or other appropriate documentation. Consumer loans, whether unsecured or secured, are primarily susceptible to four risks: non-payment due to diminished or lost income; over-extension of credit; a lack of borrower's cash flow to sustain payments; and shortfall in collateral value for secured loans. In general, non-payment is usually due to loss of employment and will follow general economic trends, particularly the upward movements in the unemployment rate, loss of collateral value, and demand shifts. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, purchase invoices, or other appropriate documentation. Collateral valuations are obtained at origination of the credit and periodically thereafter (generally annually but may be more frequent depending on the collateral type), once repayment is questionable, and the loan has been deemed classified. As of September 30, 2018, approximately 17% in principal amount of the Company's loans were for general commercial uses including professional, retail and small businesses. Approximately 53% in principal amount of the Company's loans were secured by commercial real estate, consisting primarily of loans secured by commercial properties and construction and land development loans. Approximately 16% in principal amount of the Company's loans were for agriculture, approximately 6% in principal amount of the Company's loans were residential mortgage loans, approximately 3% in principal amount of the Company's loans were residential construction loans and approximately 5% in principal amount of the Company's loans were consumer loans. Once a loan becomes delinquent or repayment becomes questionable, a Company collection officer will address collateral shortfalls with the borrower and attempt to obtain additional collateral or a principal payment. If this is not forthcoming and payment of principal and interest in accordance with the contractual terms of the loan agreement becomes unlikely, the Company will consider the loan to be impaired and will estimate its probable loss, using the present value of future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. For collateral dependent loans, the Company will utilize a recent valuation of the underlying collateral less estimated costs of sale, and charge-off the loan down to the estimated net realizable amount. Depending on the length of time until final collection, the Company may periodically revalue the estimated loss and take additional charge-offs or specific reserves as warranted. Revaluations may occur as often as every 3-12 months depending on the underlying collateral and volatility of values. Final charge-offs or recoveries are taken when the collateral is liquidated and the actual loss is confirmed. Unpaid balances on loans after or during collection and liquidation may also be pursued through legal action and attachment of wages or judgment liens on the borrower's other assets. At September 30, 2018 and December 31, 2017, all loans were pledged under blanket collateral liens to secure actual and potential borrowings from the Federal Home Loan Bank ("FHLB") and the Federal Reserve Bank. Non-accrual and Past Due Loans The Company's loans by delinquency and non-accrual status, as of September 30, 2018 and December 31, 2017, were as follows: ($ in thousands) Current & Accruing 30-59 Days Past Due & Accruing 60-89 Days Past Due & Accruing 90 Days or more Past Due & Accruing Nonaccrual Total Loans September 30, 2018 Commercial $ 128,813 $ 234 $ — $ 33 $ 301 $ 129,381 Commercial Real Estate 412,675 — — — 1,636 414,311 Agriculture 123,753 — — — — 123,753 Residential Mortgage 47,357 180 — — 104 47,641 Residential Construction 23,039 — — — — 23,039 Consumer 35,595 211 — — 213 36,019 Total $ 771,232 $ 625 $ — $ 33 $ 2,254 $ 774,144 December 31, 2017 Commercial $ 133,913 $ — $ — $ 45 $ 1,057 $ 135,015 Commercial Real Estate 396,521 101 — — 1,724 398,346 Agriculture 113,555 — — — — 113,555 Residential Mortgage 40,354 349 597 — 781 42,081 Residential Construction 21,299 — — — — 21,299 Consumer 38,656 1 38 — 205 38,900 Total $ 744,298 $ 451 $ 635 $ 45 $ 3,767 $ 749,196 Non-accrual loans amounted to $2,254,000 at September 30, 2018 and were comprised of two commercial loans totaling $301,000, three commercial real estate loans totaling $1,636,000, two residential mortgage loans totaling $104,000, and two consumer loans totaling $213,000. Non-accrual loans amounted to $3,767,000 at December 31, 2017 and were comprised of three commercial loans totaling $1,057,000, three commercial real estate loans totaling $1,724,000, three residential mortgage loans totaling $781,000, and one consumer loan totaling $205,000. All non-accrual loans are measured for impairment based upon the present value of future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the fair value of collateral, if the loan is collateral dependent. If the measurement of the non-accrual loan is less than the recorded investment in the loan, an impairment is recognized through the establishment of a specific reserve sufficient to cover expected losses and/or a charge-off against the allowance for loan losses. If the loan is considered to be collateral dependent, it is generally the Company's policy to charge-off the portion of any non-accrual loan that the Company does not expect to collect by writing the loan down to the estimated net realizable value of the underlying collateral. There were no commitments to lend additional funds to borrowers whose loans were on non-accrual status at September 30, 2018. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Loans to be considered for impairment include non-accrual loans, troubled debt restructurings and loans with a risk rating of 5 (special mention) or worse and an aggregate exposure of $500,000 or more. Once identified, impaired loans are measured individually for impairment using one of three methods: present value of expected cash flows discounted at the loan's effective interest rate; the loan's observable market price; or fair value of collateral if the loan is collateral dependent. In general, any portion of the recorded investment in a collateral dependent loan in excess of the fair value of the collateral that can be identified as uncollectible, and is, therefore, deemed a confirmed loss, is promptly charged-off against the allowance for loan losses. Impaired loans, segregated by loan class, as of September 30, 2018 and December 31, 2017 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2018 Commercial $ 3,344 $ 301 $ 2,343 $ 2,644 $ 41 Commercial Real Estate 2,060 1,636 264 1,900 22 Agriculture — — — — — Residential Mortgage 1,803 104 1,462 1,566 300 Residential Construction 568 — 568 568 48 Consumer 431 213 205 418 2 Total $ 8,206 $ 2,254 $ 4,842 $ 7,096 $ 413 December 31, 2017 Commercial $ 3,882 $ 1,057 $ 2,603 $ 3,660 $ 53 Commercial Real Estate 2,114 1,724 272 1,996 36 Agriculture — — — — — Residential Mortgage 2,628 781 1,496 2,277 302 Residential Construction 651 — 650 650 76 Consumer 418 205 213 418 3 Total $ 9,693 $ 3,767 $ 5,234 $ 9,001 $ 470 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2018 and September 30, 2017 was as follows: ($ in thousands) Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,918 $ 43 $ 3,359 $ 91 Commercial Real Estate 1,923 4 2,164 4 Agriculture — — — — Residential Mortgage 1,879 15 2,438 23 Residential Construction 606 2 732 9 Consumer 470 3 590 3 Total $ 7,796 $ 67 $ 9,283 $ 130 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2018 and September 30, 2017 was as follows: ($ in thousands) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 3,007 $ 134 $ 4,460 $ 108 Commercial Real Estate 1,941 11 1,487 12 Agriculture — — — — Residential Mortgage 1,905 45 2,733 77 Residential Construction 625 21 774 28 Consumer 451 9 620 20 Total $ 7,929 $ 220 $ 10,074 $ 245 Troubled Debt Restructurings The Company's loan portfolio includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), which are loans on which concessions in terms have been granted because of the borrowers' financial difficulties and, as a result, the Company receives less than the current market-based compensation for the loan. These concessions may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are placed on non-accrual status at the time of restructure and may be returned to accruing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. When a loan is modified, it is measured based upon the present value of future cash flows discounted at the contractual interest rate of the original loan agreement, or the fair value of collateral less selling costs if the loan is collateral dependent. If the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance or a charge-off of the loan. The Company had $5,036,000 and $5,896,000 in TDR loans as of September 30, 2018 and December 31, 2017, respectively. Specific reserves for TDR loans totaled $413,000 and $470,000 as of September 30, 2018 and December 31, 2017, respectively. TDR loans performing in compliance with modified terms totaled $4,842,000 and $5,234,000 as of September 30, 2018 and December 31, 2017, respectively. There were no commitments to advance additional funds on existing TDR loans as of September 30, 2018. Loans modified as TDRs during the three months ended September 30, 2018 and September 30, 2017 were as follows: ($ in thousands) Three Months Ended September 30, 2018 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 194 $ 194 Total 1 $ 194 $ 194 ($ in thousands) Three Months Ended September 30, 2017 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 2,410 $ 2,410 Total 1 $ 2,410 $ 2,410 Loans modified as TDRs during the nine months ended September 30, 2018 and September 30, 2017 were as follows: ($ in thousands) Nine Months Ended September 30, 2018 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 194 $ 194 Total 1 $ 194 $ 194 ($ in thousands) Nine Months Ended September 30, 2017 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 2,410 $ 2,410 Total 1 $ 2,410 $ 2,410 Loan modifications generally involve reductions in the interest rate, payment extensions, forgiveness of principal, or forbearance. During the three and nine months ended September 30, 2018 and 2017, no TDR loans defaulted within 12 months of the modification date. Credit Quality Indicators All loans are rated using the credit risk ratings and criteria adopted by the Company. Risk ratings are adjusted as current and expected future circumstances warrant. All credits risk rated 1, 2, 3 or 4 equate to a Pass as indicated by Federal and State bank regulatory agencies; a 5 equates to a Special Mention; a 6 equates to Substandard; a 7 equates to Doubtful; and an 8 equates to a Loss. For the definitions of each risk rating, see Note 4 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. The following table presents the risk ratings by loan class as of September 30, 2018 and December 31, 2017: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2018 Commercial $ 126,268 $ 282 $ 2,831 $ — $ — $ 129,381 Commercial Real Estate 389,763 8,770 15,778 — — 414,311 Agriculture 118,377 5,368 8 — — 123,753 Residential Mortgage 46,979 220 442 — — 47,641 Residential Construction 23,039 — — — — 23,039 Consumer 35,462 — 557 — — 36,019 Total $ 739,888 $ 14,640 $ 19,616 $ — $ — $ 774,144 December 31, 2017 Commercial $ 132,846 $ 1,050 $ 1,119 $ — $ — $ 135,015 Commercial Real Estate 378,632 16,101 3,613 — — 398,346 Agriculture 110,370 3,140 45 — — 113,555 Residential Mortgage 39,142 2,147 792 — — 42,081 Residential Construction 21,299 — — — — 21,299 Consumer 38,157 500 243 — — 38,900 Total $ 720,446 $ 22,938 $ 5,812 $ — $ — $ 749,196 Allowance for Loan Losses The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2018. Three months ended September 30, 2018 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2018 $ 2,764 $ 5,384 $ 1,535 $ 619 $ 361 $ 306 $ 838 $ 11,807 Provision for loan losses 2 287 153 1 (6 ) (22 ) 110 525 Charge-offs — — — — — (8 ) — (8 ) Recoveries — — — 6 2 7 — 15 Net (charge-offs) recoveries — — — 6 2 (1 ) — 7 Balance as of September 30, 2018 $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 Nine months ended September 30, 2018 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2017 $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 Provision for loan losses 571 211 141 (28 ) (7 ) (90 ) 777 1,575 Charge-offs (475 ) — — — — (19 ) — (494 ) Recoveries 45 — — 26 4 50 — 125 Net (charge-offs) recoveries (430 ) — — 26 4 31 — (369 ) Balance as of September 30, 2018 $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2018. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 41 $ 22 $ — $ 300 $ 48 $ 2 $ — $ 413 Loans collectively evaluated for impairment 2,725 5,649 1,688 326 309 281 948 11,926 Ending Balance $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2017. Three months ended September 30, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2017 $ 3,060 $ 4,883 $ 1,375 $ 677 $ 477 $ 378 $ 870 $ 11,720 Provision for loan losses (547 ) 577 101 (21 ) (56 ) 40 (94 ) — Charge-offs (220 ) — — — — (9 ) — (229 ) Recoveries 26 — — 6 2 38 — 72 Net (charge-offs) recoveries (194 ) — — 6 2 29 — (157 ) Balance as of September 30, 2017 $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 Nine months ended September 30, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2016 $ 3,571 $ 3,910 $ 1,262 $ 660 $ 440 $ 498 $ 558 $ 10,899 Provision for loan losses (1,181 ) 1,550 214 (94 ) (21 ) (86 ) 218 600 Charge-offs (220 ) — — — — (25 ) — (245 ) Recoveries 149 — — 96 4 60 — 309 Net (charge-offs) recoveries (71 ) — — 96 4 35 — 64 Balance as of September 30, 2017 $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2017. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 59 $ 40 $ — $ 564 $ 79 $ 4 $ — $ 746 Loans collectively evaluated for impairment 2,260 5,420 1,476 98 344 443 776 10,817 Ending Balance $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2017. Year ended December 31, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2016 $ 3,571 $ 3,910 $ 1,262 $ 660 $ 440 $ 498 $ 558 $ 10,899 Provision for loan losses (567 ) 1,550 285 (7 ) (85 ) (189 ) (387 ) 600 Charge-offs (681 ) — — (121 ) — (33 ) — (835 ) Recoveries 302 — — 96 5 66 — 469 Net (charge-offs) recoveries (379 ) — — (25 ) 5 33 — (366 ) Ending Balance $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 Period-end amount allocated to: Loans individually evaluated for impairment $ 53 $ 36 $ — $ 302 $ 76 $ 3 $ — $ 470 Loans collectively evaluated for impairment 2,572 5,424 1,547 326 284 339 171 10,663 Balance as of December 31, 2017 $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 The Company's investment in loans as of September 30, 2018, September 30, 2017, and December 31, 2017, related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company's impairment methodology was as follows: ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Total September 30, 2018 Loans individually evaluated for impairment $ 2,644 $ 1,900 $ — $ 1,566 $ 568 $ 418 $ 7,096 Loans collectively evaluated for impairment 126,737 412,411 123,753 46,075 22,471 35,601 767,048 Ending Balance $ 129,381 $ 414,311 $ 123,753 $ 47,641 $ 23,039 $ 36,019 $ 774,144 September 30, 2017 Loans individually evaluated for impairment $ 3,177 $ 2,796 $ — $ 2,425 $ 659 $ 589 $ 9,646 Loans collectively evaluated for impairment 120,479 363,554 109,140 40,419 21,310 39,212 694,114 Ending Balance $ 123,656 $ 366,350 $ 109,140 $ 42,844 $ 21,969 $ 39,801 $ 703,760 December 31, 2017 Loans individually evaluated for impairment $ 3,660 $ 1,996 $ — $ 2,277 $ 650 $ 418 $ 9,001 Loans collectively evaluated for impairment 131,355 396,350 113,555 39,804 20,649 38,482 740,195 Ending Balance $ 135,015 $ 398,346 $ 113,555 $ 42,081 $ 21,299 $ 38,900 $ 749,196

MORTGAGE OPERATIONS

MORTGAGE OPERATIONS	9 Months Ended
	Sep. 30, 2018
MORTGAGE OPERATIONS [Abstract]
MORTGAGE OPERATIONS	5. MORTGAGE OPERATIONS Transfers and servicing of financial assets and extinguishments of liabilities are accounted for and reported based on consistent application of a financial-components approach that focuses on control. Transfers of financial assets that are sales are distinguished from transfers that are secured borrowings. Retained interests (mortgage servicing rights) in loans sold are measured by allocating the previous carrying amount of the transferred assets between the loans sold and retained interests, if any, based on their relative fair value at the date of transfer. Fair values are estimated using discounted cash flows based on a current market interest rate. The Company recognizes a gain and a related asset for the fair value of the rights to service loans for others when loans are sold. The Company sold substantially its entire portfolio of conforming long-term residential mortgage loans originated during the nine months ended September 30, 2018 for cash proceeds equal to the fair value of the loans. At September 30, 2018, and December 31, 2017, the Company serviced real estate mortgage loans for others totaling $215,006,000 and $221,591,000, respectively. The recorded value of mortgage servicing rights is amortized in proportion to, and over the period of, estimated net servicing revenues. The Company assesses capitalized mortgage servicing rights for impairment based upon the fair value of those rights at each reporting date. For purposes of measuring impairment, the rights are stratified based upon the product type, term and interest rates. Fair value is determined by discounting estimated net future cash flows from mortgage servicing activities using discount rates that approximate current market rates and estimated prepayment rates, among other assumptions. The amount of impairment recognized, if any, is the amount by which the capitalized mortgage servicing rights for a stratum exceeds their fair value. Impairment, if any, is recognized through a valuation allowance for each individual stratum. Changes in the carrying amount of mortgage servicing rights are reported in earnings under other operating income on the condensed consolidated statements of income. Key assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Constant prepayment rate 9.30 % 10.80 % Discount rate 10.01 % 10.02 % Weighted average life (years) 6.56 6.02 The following table summarizes the Company's mortgage servicing rights assets as of September 30, 2018 and December 31, 2017. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2017 Additions Reductions September 30, 2018 Mortgage servicing rights $ 1,712 $ 113 $ (210 ) $ 1,615 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,712 $ 113 $ (210 ) $ 1,615 At September 30, 2018 and December 31, 2017, the estimated fair market value of the Company's mortgage servicing rights asset was $2,052,000 and $1,876,000, respectively. The Company received contractually specified servicing fees of $136,000 and $142,000 for the three months ended September 30, 2018 and September 30, 2017, respectively. The Company received contractually specified servicing fees of $412,000 and $434,000 for the nine months ended September 30, 2018 and September 30, 2017, respectively. Contractually specified servicing fees are included in non-interest income on the condensed consolidated statements of income, net of the amortization of the mortgage servicing rights asset.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2018
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale and trading securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a non-recurring basis, such as loans held-for-sale, loans held-for-investment and certain other assets. These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company's quarterly valuation process. Assets Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018: (in thousands) September 30, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury securities $ 32,655 $ 32,655 $ — $ — Securities of U.S. government agencies and corporations 39,456 — 39,456 — Obligations of states and political subdivisions 19,163 — 19,163 — Collateralized mortgage obligations 62,027 — 62,027 — Mortgage-backed securities 137,685 — 137,685 — Total investments at fair value $ 290,986 $ 32,655 $ 258,331 $ — There were no transfers of assets measured at fair value on a recurring basis between level 1 and level 2 of the fair value hierarchy. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: (in thousands) December 31, 2017 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury securities $ 18,464 $ 18,464 $ — $ — Securities of U.S. government agencies and corporations 21,109 — 21,109 — Obligations of states and political subdivisions 23,208 — 23,208 — Collateralized mortgage obligations 66,083 — 66,083 — Mortgage-backed securities 151,877 — 151,877 — Total investments at fair value $ 280,741 $ 18,464 $ 262,277 $ — Assets Recorded at Fair Value on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of September 30, 2018: (in thousands) September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 300 $ — $ — $ 300 Total assets at fair value $ 300 $ — $ — $ 300 Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2017: (in thousands) December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 1,468 $ — $ — $ 1,468 Total assets at fair value $ 1,468 $ — $ — $ 1,468 There were no liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2018 and December 31, 2017. Key methods and assumptions used in measuring the fair value of impaired loans as of September 30, 2018 and December 31, 2017 were as follows: Method Assumption Inputs Impaired loans Collateral, market, income, enterprise, liquidation and discounted Cash Flows External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%. The following section describes the valuation methodologies used for assets recorded at fair value. Investment Securities Available-for-Sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions, and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets where valuations include significant unobservable assumptions. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, the Company measures impairment. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Inputs include external appraised values, management assumptions regarding market trends or other relevant factors, selling and commission costs generally ranging from 6% to 7%, and amount and timing of cash flows based upon current discount rates. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2018, certain impaired loans were considered collateral dependent and were evaluated based on the fair value of the underlying collateral securing the loan. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When a loan is evaluated based on the fair value of the underlying collateral securing the loan, the Company records the impaired loan as non-recurring Level 3. Disclosures about Fair Value of Financial Instruments The estimated fair values of the Company's financial instruments for the periods ended September 30, 2018 and December 31, 2017 were approximately as follows: September 30, 2018 December 31, 2017 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 139,659 $ 139,659 $ 152,892 $ 152,892 Certificates of deposit 2 5,635 5,629 1,984 1,983 Stock in Federal Home Loan Bank and other equity securities 3 6,019 6,019 5,567 5,567 Loans receivable: Net loans 3 762,815 724,450 739,112 736,292 Loans held-for-sale 2 1,005 1,023 1,040 1,060 Interest receivable 2 4,493 4,493 4,117 4,117 Mortgage servicing rights 3 1,615 2,052 1,712 1,876 Financial liabilities: Deposits 3 1,124,616 968,861 1,104,740 993,425 Interest payable 2 97 97 72 72 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, 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 estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include deferred tax liabilities and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in many of the estimates.

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	9 Months Ended
	Sep. 30, 2018
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Bank's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments, whose contract amounts represent credit risk at the indicated periods, were as follows: (in thousands) September 30, 2018 December 31, 2017 Undisbursed loan commitments $ 205,609 $ 220,882 Standby letters of credit 2,125 2,635 Commitments to sell loans 1,268 1,283 $ 209,002 $ 224,800 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank issues both financial and performance standby letters of credit. The financial standby letters of credit are primarily to guarantee payment to third parties. At September 30, 2018 and December 31, 2017, there were no financial standby letters of credit outstanding. The performance standby letters of credit are typically issued to municipalities as specific performance bonds. Performance standby letters of credit totaled $2,125,000 and $2,635,000 at September 30, 2018 and December 31, 2017, respectively. The Bank has experienced no draws on these letters of credit, resulting in no related liability included on their balance sheet; however, should a triggering event occur, the Bank either has collateral in excess of the letter of credit or imbedded agreements of recourse from the customer. The Bank has set aside a reserve for unfunded commitments in the amount of $800,000 and $850,000 at September 30, 2018 and December 31, 2017, respectively, which is recorded in "interest payable and other liabilities" on the Condensed Consolidated Balance Sheets Commitments to extend credit and standby letters of credit bear similar credit risk characteristics as outstanding loans. As of September 30, 2018 and December 31, 2017, the Company had no off-balance sheet derivatives requiring additional disclosure. Mortgage loans sold to investors may be sold with servicing rights retained, for which the Company makes only standard legal representations and warranties as to meeting certain underwriting and collateral documentation standards. In the past two years, the number of loans the Company has had to repurchase due to deficiencies in underwriting or loan documentation is not significant. Management believes that any liabilities that may result from such recourse provisions are not significant.

STOCK PLANS

STOCK PLANS	9 Months Ended
	Sep. 30, 2018
STOCK PLANS [Abstract]
STOCK PLANS	8. STOCK PLANS On January 25, 2018, the Board of Directors of the Company declared a 4% stock dividend payable as of March 29, 2018 to shareholders of record as of February 28, 2018. All outstanding stock options and restricted stock have been adjusted to give retroactive effect to stock dividends. The following table presents the activity related to stock options for the three months ended September 30, 2018. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 313,509 $ 8.64 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 313,509 $ 8.64 $ 1,579,753 7.02 Exercisable (vested) at End of Period 154,508 $ 6.32 $ 1,136,655 5.51 The following table presents the activity related to stock options for the nine months ended September 30, 2018. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 260,592 $ 7.42 Granted 69,868 $ 13.03 Expired (3,412 ) $ 11.90 Cancelled / Forfeited — — Exercised (13,539 ) 7.05 Options outstanding at End of Period 313,509 $ 8.64 $ 1,579,753 7.02 Exercisable (vested) at End of Period 154,508 $ 6.32 $ 1,136,655 5.51 The 2016 Stock Incentive Plan permits stock-for-stock exercises of shares. During the nine months ended September 30, 2018, employees tendered 7,043 mature shares in stock-for-stock exercises. Matured shares are those held by employees longer than six months. The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2018 was $2.48 per share. The intrinsic value of options exercised was $81,000 and $0 during the nine months ended September 30, 2018 and September 30, 2017, respectively. The fair value of awards vested was $114,000 and $85,000 during the nine months ended September 30, 2018 and September 30, 2017, respectively. As of September 30, 2018, there was $297,000 of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 2.57 years. There was $36,000 and $104,000 of recognized compensation cost related to stock options granted for the three and nine months ended September 30, 2018, respectively. A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2018 is presented below: Three Months Ended September 30, 2018* Nine Months Ended September 30, 2018 Risk Free Interest Rate — 2.57 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 14.44 % * There were no stock options granted during the three months ended September 30, 2018. The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2018. Number of Shares Weighted Average Grant Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 113,709 $ 9.37 Granted — — Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested Restricted stock outstanding at End of Period 113,709 $ 9.37 $ 1,555,539 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2018. Number of Shares Weighted Average Grant Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 111,848 $ 7.85 Granted 25,769 13.03 Cancelled / Forfeited — — Exercised/Released/Vested (23,908) 6.22 Non-vested Restricted stock outstanding at End of Period 113,709 $ 9.37 $ 1,555,539 2.68 The weighted average fair value of restricted stock granted during the nine months ended September 30, 2018 was $13.03 per share. As of September 30, 2018, there was $563,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 2.68 years. There was $67,000 and $196,000 of recognized compensation cost related to restricted stock awards for the three and nine months ended September 30, 2018, respectively. The Company has an Employee Stock Purchase Plan ("ESPP"). There are 281,216 shares of common stock authorized under the ESPP. The total number of shares authorized has been adjusted to give retroactive effect to stock dividends and stock splits, including the 4% stock dividend declared on January 25, 2018, payable March 29, 2018 to shareholders of record as of February 28, 2018. The ESPP will expire on March 16, 2026. The ESPP is implemented by participation periods of not more than twenty-seven months each. The Board of Directors determines the commencement date and duration of each participation period. The Board of Directors approved the current participation period of November 24, 2017 to November 23, 2018. An eligible employee is one who has been continually employed for at least 90 days prior to commencement of a participation period. Under the terms of the ESPP, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company's common stock each participation period. The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the date of participation or the fair value on the last trading day during the participation period. As of September 30, 2018, there was $14,000 of unrecognized compensation cost related to ESPP issuances. This cost is expected to be recognized over a weighted average period of approximately 0.25 years. There was $14,000 and $42,000 of recognized compensation cost related to ESPP issuances for the three and nine months ended September 30, 2018, respectively. The weighted average fair value at issuance date during the nine months ended September 30, 2018 was $2.69 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2018 is presented below. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Risk Free Interest Rate 1.61 % 1.61 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 12.50 % 12.50 %

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2018. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of June 30, 2018 $ (5,418 ) $ (1,403 ) $ 3 $ (6,818 ) Current period other comprehensive income (loss) (569 ) — — (569 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2018. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of December 31, 2017 $ (2,997 ) $ (1,403 ) $ 3 $ (4,397 ) Current period other comprehensive income (loss) (2,990 ) — — (2,990 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 ) The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2017. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of June 30, 2017 $ (1,565 ) $ (732 ) $ 14 $ (2,283 ) Current period other comprehensive income (loss) 175 — — 175 Balance as of September 30, 2017 $ (1,390 ) $ (732 ) $ 14 $ (2,108 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of December 31, 2016 $ (1,678 ) $ (686 ) $ 14 $ (2,350 ) Current period other comprehensive income (loss) 288 (46 ) — 242 Balance as of September 30, 2017 $ (1,390 ) $ (732 ) $ 14 $ (2,108 )

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2018
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
OUTSTANDING SHARES AND EARNINGS PER SHARE	10. OUTSTANDING SHARES AND EARNINGS PER SHARE On January 25, 2018, the Board of Directors of the Company declared a 4% stock dividend payable March 29, 2018 to shareholders of record as of February 28, 2018. All income per share amounts have been adjusted to give retroactive effect to stock dividends. Earnings Per Share (EPS) Basic EPS includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the respective period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus dilutive shares for the quarter. Diluted shares include all common stock equivalents ("in-the-money" stock options, unvested restricted stock, stock units, warrants and rights, convertible bonds and preferred stock), which reflects the potential dilution of securities that could share in the earnings of the Company. The following table presents a reconciliation of basic and diluted EPS for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Basic earnings per share: Net income $ 3,467 $ 2,800 $ 9,203 $ 7,861 Weighted average common shares outstanding 11,548,148 11,508,302 11,543,022 11,504,527 Basic EPS $ 0.30 $ 0.24 $ 0.80 $ 0.68 Diluted earnings per share: Net income $ 3,467 $ 2,800 $ 9,203 $ 7,861 Weighted average common shares outstanding 11,548,148 11,508,302 11,543,022 11,504,527 Effect of dilutive shares 171,141 149,081 164,861 145,674 Adjusted weighted average common shares outstanding 11,719,289 11,657,383 11,707,883 11,650,201 Diluted EPS $ 0.30 $ 0.24 $ 0.79 $ 0.67 Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 69,868 shares and 71,134 shares for the three months ended September 30, 2018 and 2017, respectively. Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 90,616 shares and 71,134 shares for the nine months ended September 30, 2018 and 2017, respectively.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	Sep. 30, 2018
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	11. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Service charges on deposit accounts Service charges on deposit accounts include account maintenance and analysis fees and transaction-based fees. Account maintenance and analysis fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees consist of non-sufficient funds fees, wire fees, overdraft fees and fees on other products and services and are charged to deposit customers for specific services provided to the customer. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Investment and brokerage services income The Bank earns investment and brokerage services fees for providing a broad range of alternative investment products and services through Raymond James Financial Services, Inc. Brokerage fees are generally earned in two ways. Brokerage fees for managed accounts charge a set annual percentage fee based on the underlying portfolio value and are earned and recognized on a quarterly basis. Brokerage fees for a standard commission account are charged on a per transaction fee and are earned and recognized at the time of the transaction. Mortgage brokerage income The Bank earns a brokerage fee for originating mortgage loans for other institutions. The loans are underwritten and funded by other institutions. The brokerage fee is a percentage of the total loan amount. The performance obligation is satisfied and fees are recognized once underwriting is completed and the loan has been funded. Fiduciary activities income The Bank partners with Trust Management Network to provide Asset Management & Trust services. Fiduciary activities income is primarily standard monthly trustee fees. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Debit card income Debit card income represent fees earned on Bank-issued debit card transactions. The Bank earns interchange fees from debit cardholder transactions through the related payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders' account. Certain expenses directly associated with the debit card are recorded on a net basis with the interchange income. Gains (losses) on sales of available-for-sale securities Gains and losses on sales of available-for-sale securities are from the sale of investment securities. The gain or loss is recognized upon settlement of the sale transaction. Other income Other income within the scope of Topic 606 include check sales fees, bankcard fees, merchant fees and increase in cash surrender value of life insurance policies. Check sales fees, based on check sales volume, are received from check printing companies and are recognized monthly. Bankcard fees are earned from the Bank's credit card program and are recognized monthly as the service period is completed. Merchant fees are earned for card payment services provided to its merchant customers. The Bank has a contract with a third party to provide card payment services to merchants that contract for those services. Merchant fees are recognized monthly as the service period is completed. The Bank owns life insurance policies on certain officers and directors of the Bank. The increase in cash surrender value of life insurance policies is recognized on a monthly basis based upon the current expected cash surrender value of the underlying life insurance policies.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of First Northern Community Bancorp (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Articles 9 and 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of results expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. All material intercompany balances and transactions have been eliminated in consolidation.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
ACCOUNTING POLICIES [Abstract]
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards: In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ● Require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. ● Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ● Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). ● Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. We adopted the requirements of ASU 2016-01 effective January 1, 2018. The fair value of our loans held for investment, which is recorded at amortized cost, now incorporates the exit price notion. See Note 6, Fair Value Measurements.
Recently Issued Accounting Standards	Recently Issued Accounting Standards: In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). ● A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and ● A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company currently leases ten properties. This ASU will result in the recording of a lease liability and a related right-of-use asset on the Company's financial statements. Management is currently in the process of quantifying the lease liability and right-of-use asset and evaluating the impact of this ASU on the Company's consolidated financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In March 2018, FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In July 2018, FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Policies)	9 Months Ended
	Sep. 30, 2018
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract]
Revenue from Contracts with Customers	The Company adopted ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Service charges on deposit accounts Service charges on deposit accounts include account maintenance and analysis fees and transaction-based fees. Account maintenance and analysis fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees consist of non-sufficient funds fees, wire fees, overdraft fees and fees on other products and services and are charged to deposit customers for specific services provided to the customer. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Investment and brokerage services income The Bank earns investment and brokerage services fees for providing a broad range of alternative investment products and services through Raymond James Financial Services, Inc. Brokerage fees are generally earned in two ways. Brokerage fees for managed accounts charge a set annual percentage fee based on the underlying portfolio value and are earned and recognized on a quarterly basis. Brokerage fees for a standard commission account are charged on a per transaction fee and are earned and recognized at the time of the transaction. Mortgage brokerage income The Bank earns a brokerage fee for originating mortgage loans for other institutions. The loans are underwritten and funded by other institutions. The brokerage fee is a percentage of the total loan amount. The performance obligation is satisfied and fees are recognized once underwriting is completed and the loan has been funded. Fiduciary activities income The Bank partners with Trust Management Network to provide Asset Management & Trust services. Fiduciary activities income is primarily standard monthly trustee fees. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Debit card income Debit card income represent fees earned on Bank-issued debit card transactions. The Bank earns interchange fees from debit cardholder transactions through the related payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders' account. Certain expenses directly associated with the debit card are recorded on a net basis with the interchange income. Gains (losses) on sales of available-for-sale securities Gains and losses on sales of available-for-sale securities are from the sale of investment securities. The gain or loss is recognized upon settlement of the sale transaction. Other income Other income within the scope of Topic 606 include check sales fees, bankcard fees, merchant fees and increase in cash surrender value of life insurance policies. Check sales fees, based on check sales volume, are received from check printing companies and are recognized monthly. Bankcard fees are earned from the Bank's credit card program and are recognized monthly as the service period is completed. Merchant fees are earned for card payment services provided to its merchant customers. The Bank has a contract with a third party to provide card payment services to merchants that contract for those services. Merchant fees are recognized monthly as the service period is completed. The Bank owns life insurance policies on certain officers and directors of the Bank. The increase in cash surrender value of life insurance policies is recognized on a monthly basis based upon the current expected cash surrender value of the underlying life insurance policies.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
INVESTMENT SECURITIES [Abstract]
Amortized Cost, Unrealized Gains and Losses and Estimated Fair Values of Investments in Debt Securities	The amortized cost, unrealized gains and losses and estimated fair values of investments in debt securities at September 30, 2018 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 32,912 $ — $ (257 ) $ 32,655 Securities of U.S. government agencies and corporations 39,822 — (366 ) 39,456 Obligations of states and political subdivisions 19,258 111 (206 ) 19,163 Collateralized mortgage obligations 64,964 — (2,937 ) 62,027 Mortgage-backed securities 142,433 17 (4,765 ) 137,685 Total debt securities $ 299,389 $ 128 $ (8,531 ) $ 290,986 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt securities at December 31, 2017 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 18,589 $ — $ (125 ) $ 18,464 Securities of U.S. government agencies and corporations 21,353 — (244 ) 21,109 Obligations of states and political subdivisions 23,138 216 (146 ) 23,208 Collateralized mortgage obligations 67,724 — (1,641 ) 66,083 Mortgage-backed securities 154,143 95 (2,361 ) 151,877 Total debt securities $ 284,947 $ 311 $ (4,517 ) $ 280,741
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual and Expected Maturity	The amortized cost and estimated market value of debt securities at September 30, 2018, by contractual and expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 42,443 $ 42,278 Due after one year through five years 43,810 43,169 Due after five years through ten years 5,739 5,827 Subtotal 91,992 91,274 MBS & CMO 207,397 199,712 Total $ 299,389 $ 290,986
Analysis of Gross Unrealized Losses of the Available-for-sale Investment Securities Portfolio	An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2018, follows: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury securities $ 24,258 $ (98 ) $ 8,397 $ (159 ) $ 32,655 $ (257 ) Securities of U.S. government agencies and corporations 22,332 (152 ) 17,124 (214 ) 39,456 (366 ) Obligations of states and political subdivisions 5,466 (54 ) 7,523 (152 ) 12,989 (206 ) Collateralized mortgage obligations 9,104 (149 ) 52,923 (2,788 ) 62,027 (2,937 ) Mortgage-backed securities 36,680 (689 ) 96,391 (4,076 ) 133,071 (4,765 ) Total $ 97,840 $ (1,142 ) $ 182,358 $ (7,389 ) $ 280,198 $ (8,531 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2017, follows: Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 10,004 $ (2 ) $ 8,460 $ (123 ) $ 18,464 $ (125 ) Securities of U.S. government agencies and corporations 6,049 (50 ) 15,060 (194 ) 21,109 (244 ) Obligations of states and political subdivisions 7,677 (34 ) 7,116 (112 ) 14,793 (146 ) Collateralized mortgage obligations 31,679 (576 ) 34,404 (1,065 ) 66,083 (1,641 ) Mortgage-backed securities 62,320 (650 ) 76,478 (1,711 ) 138,798 (2,361 ) Total $ 117,729 $ (1,312 ) $ 141,518 $ (3,205 ) $ 259,247 $ (4,517 )

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2018
LOANS [Abstract]
Loan Portfolio, by Loan Class	The composition of the Company's loan portfolio, by loan class, as of September 30, 2018 and December 31, 2017, was as follows: ($ in thousands) September 30, 2018 December 31, 2017 Commercial $ 129,381 $ 135,015 Commercial Real Estate 414,311 398,346 Agriculture 123,753 113,555 Residential Mortgage 47,641 42,081 Residential Construction 23,039 21,299 Consumer 36,019 38,900 774,144 749,196 Allowance for loan losses (12,339 ) (11,133 ) Net deferred origination fees and costs 1,010 1,049 Loans, net $ 762,815 $ 739,112
Loans by Delinquency and Non-Accrual Status	The Company's loans by delinquency and non-accrual status, as of September 30, 2018 and December 31, 2017, were as follows: ($ in thousands) Current & Accruing 30-59 Days Past Due & Accruing 60-89 Days Past Due & Accruing 90 Days or more Past Due & Accruing Nonaccrual Total Loans September 30, 2018 Commercial $ 128,813 $ 234 $ — $ 33 $ 301 $ 129,381 Commercial Real Estate 412,675 — — — 1,636 414,311 Agriculture 123,753 — — — — 123,753 Residential Mortgage 47,357 180 — — 104 47,641 Residential Construction 23,039 — — — — 23,039 Consumer 35,595 211 — — 213 36,019 Total $ 771,232 $ 625 $ — $ 33 $ 2,254 $ 774,144 December 31, 2017 Commercial $ 133,913 $ — $ — $ 45 $ 1,057 $ 135,015 Commercial Real Estate 396,521 101 — — 1,724 398,346 Agriculture 113,555 — — — — 113,555 Residential Mortgage 40,354 349 597 — 781 42,081 Residential Construction 21,299 — — — — 21,299 Consumer 38,656 1 38 — 205 38,900 Total $ 744,298 $ 451 $ 635 $ 45 $ 3,767 $ 749,196
Impaired Loans, Segregated by Loan Class	Impaired loans, segregated by loan class, as of September 30, 2018 and December 31, 2017 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2018 Commercial $ 3,344 $ 301 $ 2,343 $ 2,644 $ 41 Commercial Real Estate 2,060 1,636 264 1,900 22 Agriculture — — — — — Residential Mortgage 1,803 104 1,462 1,566 300 Residential Construction 568 — 568 568 48 Consumer 431 213 205 418 2 Total $ 8,206 $ 2,254 $ 4,842 $ 7,096 $ 413 December 31, 2017 Commercial $ 3,882 $ 1,057 $ 2,603 $ 3,660 $ 53 Commercial Real Estate 2,114 1,724 272 1,996 36 Agriculture — — — — — Residential Mortgage 2,628 781 1,496 2,277 302 Residential Construction 651 — 650 650 76 Consumer 418 205 213 418 3 Total $ 9,693 $ 3,767 $ 5,234 $ 9,001 $ 470
Average Recorded Investment and Interest Income in Impaired Loans Recognized Using Accrual Basis Method of Accounting	The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2018 and September 30, 2017 was as follows: ($ in thousands) Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,918 $ 43 $ 3,359 $ 91 Commercial Real Estate 1,923 4 2,164 4 Agriculture — — — — Residential Mortgage 1,879 15 2,438 23 Residential Construction 606 2 732 9 Consumer 470 3 590 3 Total $ 7,796 $ 67 $ 9,283 $ 130 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2018 and September 30, 2017 was as follows: ($ in thousands) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 3,007 $ 134 $ 4,460 $ 108 Commercial Real Estate 1,941 11 1,487 12 Agriculture — — — — Residential Mortgage 1,905 45 2,733 77 Residential Construction 625 21 774 28 Consumer 451 9 620 20 Total $ 7,929 $ 220 $ 10,074 $ 245
Loans Modified as TDR's	Loans modified as TDRs during the three months ended September 30, 2018 and September 30, 2017 were as follows: ($ in thousands) Three Months Ended September 30, 2018 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 194 $ 194 Total 1 $ 194 $ 194 ($ in thousands) Three Months Ended September 30, 2017 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 2,410 $ 2,410 Total 1 $ 2,410 $ 2,410 Loans modified as TDRs during the nine months ended September 30, 2018 and September 30, 2017 were as follows: ($ in thousands) Nine Months Ended September 30, 2018 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 194 $ 194 Total 1 $ 194 $ 194 ($ in thousands) Nine Months Ended September 30, 2017 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 2,410 $ 2,410 Total 1 $ 2,410 $ 2,410
Risk Ratings by Loan Class	The following table presents the risk ratings by loan class as of September 30, 2018 and December 31, 2017: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2018 Commercial $ 126,268 $ 282 $ 2,831 $ — $ — $ 129,381 Commercial Real Estate 389,763 8,770 15,778 — — 414,311 Agriculture 118,377 5,368 8 — — 123,753 Residential Mortgage 46,979 220 442 — — 47,641 Residential Construction 23,039 — — — — 23,039 Consumer 35,462 — 557 — — 36,019 Total $ 739,888 $ 14,640 $ 19,616 $ — $ — $ 774,144 December 31, 2017 Commercial $ 132,846 $ 1,050 $ 1,119 $ — $ — $ 135,015 Commercial Real Estate 378,632 16,101 3,613 — — 398,346 Agriculture 110,370 3,140 45 — — 113,555 Residential Mortgage 39,142 2,147 792 — — 42,081 Residential Construction 21,299 — — — — 21,299 Consumer 38,157 500 243 — — 38,900 Total $ 720,446 $ 22,938 $ 5,812 $ — $ — $ 749,196
Allowance for Loan Losses	The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2018. Three months ended September 30, 2018 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2018 $ 2,764 $ 5,384 $ 1,535 $ 619 $ 361 $ 306 $ 838 $ 11,807 Provision for loan losses 2 287 153 1 (6 ) (22 ) 110 525 Charge-offs — — — — — (8 ) — (8 ) Recoveries — — — 6 2 7 — 15 Net (charge-offs) recoveries — — — 6 2 (1 ) — 7 Balance as of September 30, 2018 $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 Nine months ended September 30, 2018 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2017 $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 Provision for loan losses 571 211 141 (28 ) (7 ) (90 ) 777 1,575 Charge-offs (475 ) — — — — (19 ) — (494 ) Recoveries 45 — — 26 4 50 — 125 Net (charge-offs) recoveries (430 ) — — 26 4 31 — (369 ) Balance as of September 30, 2018 $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2018. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 41 $ 22 $ — $ 300 $ 48 $ 2 $ — $ 413 Loans collectively evaluated for impairment 2,725 5,649 1,688 326 309 281 948 11,926 Ending Balance $ 2,766 $ 5,671 $ 1,688 $ 626 $ 357 $ 283 $ 948 $ 12,339 The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2017. Three months ended September 30, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2017 $ 3,060 $ 4,883 $ 1,375 $ 677 $ 477 $ 378 $ 870 $ 11,720 Provision for loan losses (547 ) 577 101 (21 ) (56 ) 40 (94 ) — Charge-offs (220 ) — — — — (9 ) — (229 ) Recoveries 26 — — 6 2 38 — 72 Net (charge-offs) recoveries (194 ) — — 6 2 29 — (157 ) Balance as of September 30, 2017 $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 Nine months ended September 30, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2016 $ 3,571 $ 3,910 $ 1,262 $ 660 $ 440 $ 498 $ 558 $ 10,899 Provision for loan losses (1,181 ) 1,550 214 (94 ) (21 ) (86 ) 218 600 Charge-offs (220 ) — — — — (25 ) — (245 ) Recoveries 149 — — 96 4 60 — 309 Net (charge-offs) recoveries (71 ) — — 96 4 35 — 64 Balance as of September 30, 2017 $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2017. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 59 $ 40 $ — $ 564 $ 79 $ 4 $ — $ 746 Loans collectively evaluated for impairment 2,260 5,420 1,476 98 344 443 776 10,817 Ending Balance $ 2,319 $ 5,460 $ 1,476 $ 662 $ 423 $ 447 $ 776 $ 11,563 The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2017. Year ended December 31, 2017 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2016 $ 3,571 $ 3,910 $ 1,262 $ 660 $ 440 $ 498 $ 558 $ 10,899 Provision for loan losses (567 ) 1,550 285 (7 ) (85 ) (189 ) (387 ) 600 Charge-offs (681 ) — — (121 ) — (33 ) — (835 ) Recoveries 302 — — 96 5 66 — 469 Net (charge-offs) recoveries (379 ) — — (25 ) 5 33 — (366 ) Ending Balance $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 Period-end amount allocated to: Loans individually evaluated for impairment $ 53 $ 36 $ — $ 302 $ 76 $ 3 $ — $ 470 Loans collectively evaluated for impairment 2,572 5,424 1,547 326 284 339 171 10,663 Balance as of December 31, 2017 $ 2,625 $ 5,460 $ 1,547 $ 628 $ 360 $ 342 $ 171 $ 11,133 The Company's investment in loans as of September 30, 2018, September 30, 2017, and December 31, 2017, related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company's impairment methodology was as follows: ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Total September 30, 2018 Loans individually evaluated for impairment $ 2,644 $ 1,900 $ — $ 1,566 $ 568 $ 418 $ 7,096 Loans collectively evaluated for impairment 126,737 412,411 123,753 46,075 22,471 35,601 767,048 Ending Balance $ 129,381 $ 414,311 $ 123,753 $ 47,641 $ 23,039 $ 36,019 $ 774,144 September 30, 2017 Loans individually evaluated for impairment $ 3,177 $ 2,796 $ — $ 2,425 $ 659 $ 589 $ 9,646 Loans collectively evaluated for impairment 120,479 363,554 109,140 40,419 21,310 39,212 694,114 Ending Balance $ 123,656 $ 366,350 $ 109,140 $ 42,844 $ 21,969 $ 39,801 $ 703,760 December 31, 2017 Loans individually evaluated for impairment $ 3,660 $ 1,996 $ — $ 2,277 $ 650 $ 418 $ 9,001 Loans collectively evaluated for impairment 131,355 396,350 113,555 39,804 20,649 38,482 740,195 Ending Balance $ 135,015 $ 398,346 $ 113,555 $ 42,081 $ 21,299 $ 38,900 $ 749,196

MORTGAGE OPERATIONS (Tables)

MORTGAGE OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2018
MORTGAGE OPERATIONS [Abstract]
Key Assumptions Used in Measuring the Fair Value of Mortgage Servicing Rights	Key assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Constant prepayment rate 9.30 % 10.80 % Discount rate 10.01 % 10.02 % Weighted average life (years) 6.56 6.02
Mortgage Servicing Rights Assets	Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2017 Additions Reductions September 30, 2018 Mortgage servicing rights $ 1,712 $ 113 $ (210 ) $ 1,615 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,712 $ 113 $ (210 ) $ 1,615

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
FAIR VALUE MEASUREMENTS [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018: (in thousands) September 30, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury securities $ 32,655 $ 32,655 $ — $ — Securities of U.S. government agencies and corporations 39,456 — 39,456 — Obligations of states and political subdivisions 19,163 — 19,163 — Collateralized mortgage obligations 62,027 — 62,027 — Mortgage-backed securities 137,685 — 137,685 — Total investments at fair value $ 290,986 $ 32,655 $ 258,331 $ — The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: (in thousands) December 31, 2017 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury securities $ 18,464 $ 18,464 $ — $ — Securities of U.S. government agencies and corporations 21,109 — 21,109 — Obligations of states and political subdivisions 23,208 — 23,208 — Collateralized mortgage obligations 66,083 — 66,083 — Mortgage-backed securities 151,877 — 151,877 — Total investments at fair value $ 280,741 $ 18,464 $ 262,277 $ —
Assets Measured at Fair Value on a Non-recurring Basis	Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of September 30, 2018: (in thousands) September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 300 $ — $ — $ 300 Total assets at fair value $ 300 $ — $ — $ 300 Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2017: (in thousands) December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 1,468 $ — $ — $ 1,468 Total assets at fair value $ 1,468 $ — $ — $ 1,468
Key Methods and Assumptions Used in Measuring Fair Value of Impaired Loans	Key methods and assumptions used in measuring the fair value of impaired loans as of September 30, 2018 and December 31, 2017 were as follows: Method Assumption Inputs Impaired loans Collateral, market, income, enterprise, liquidation and discounted Cash Flows External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%.
Estimated Fair Value of Financial Instruments	The estimated fair values of the Company's financial instruments for the periods ended September 30, 2018 and December 31, 2017 were approximately as follows: September 30, 2018 December 31, 2017 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 139,659 $ 139,659 $ 152,892 $ 152,892 Certificates of deposit 2 5,635 5,629 1,984 1,983 Stock in Federal Home Loan Bank and other equity securities 3 6,019 6,019 5,567 5,567 Loans receivable: Net loans 3 762,815 724,450 739,112 736,292 Loans held-for-sale 2 1,005 1,023 1,040 1,060 Interest receivable 2 4,493 4,493 4,117 4,117 Mortgage servicing rights 3 1,615 2,052 1,712 1,876 Financial liabilities: Deposits 3 1,124,616 968,861 1,104,740 993,425 Interest payable 2 97 97 72 72

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2018
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
Financial Instruments Whose Contract Amount Represent Credit Risk	Financial instruments, whose contract amounts represent credit risk at the indicated periods, were as follows: (in thousands) September 30, 2018 December 31, 2017 Undisbursed loan commitments $ 205,609 $ 220,882 Standby letters of credit 2,125 2,635 Commitments to sell loans 1,268 1,283 $ 209,002 $ 224,800

STOCK PLANS (Tables)

STOCK PLANS (Tables)	9 Months Ended
	Sep. 30, 2018
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended September 30, 2018. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 313,509 $ 8.64 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 313,509 $ 8.64 $ 1,579,753 7.02 Exercisable (vested) at End of Period 154,508 $ 6.32 $ 1,136,655 5.51 The following table presents the activity related to stock options for the nine months ended September 30, 2018. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 260,592 $ 7.42 Granted 69,868 $ 13.03 Expired (3,412 ) $ 11.90 Cancelled / Forfeited — — Exercised (13,539 ) 7.05 Options outstanding at End of Period 313,509 $ 8.64 $ 1,579,753 7.02 Exercisable (vested) at End of Period 154,508 $ 6.32 $ 1,136,655 5.51
Weighted Average Assumptions Used in Valuing Stock Options Granted	A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2018 is presented below: Three Months Ended September 30, 2018* Nine Months Ended September 30, 2018 Risk Free Interest Rate — 2.57 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 14.44 % * There were no stock options granted during the three months ended September 30, 2018.
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2018. Number of Shares Weighted Average Grant Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 113,709 $ 9.37 Granted — — Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested Restricted stock outstanding at End of Period 113,709 $ 9.37 $ 1,555,539 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2018. Number of Shares Weighted Average Grant Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 111,848 $ 7.85 Granted 25,769 13.03 Cancelled / Forfeited — — Exercised/Released/Vested (23,908) 6.22 Non-vested Restricted stock outstanding at End of Period 113,709 $ 9.37 $ 1,555,539 2.68
Weighted Average Assumptions Used in Valuing ESPP	A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2018 is presented below. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Risk Free Interest Rate 1.61 % 1.61 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 12.50 % 12.50 %

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
Accumulated Other Comprehensive Income (Loss)	The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2018. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of June 30, 2018 $ (5,418 ) $ (1,403 ) $ 3 $ (6,818 ) Current period other comprehensive income (loss) (569 ) — — (569 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2018. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of December 31, 2017 $ (2,997 ) $ (1,403 ) $ 3 $ (4,397 ) Current period other comprehensive income (loss) (2,990 ) — — (2,990 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 ) The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2017. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of June 30, 2017 $ (1,565 ) $ (732 ) $ 14 $ (2,283 ) Current period other comprehensive income (loss) 175 — — 175 Balance as of September 30, 2017 $ (1,390 ) $ (732 ) $ 14 $ (2,108 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017. ($ in thousands) Unrealized Gains (losses) on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Loss Balance as of December 31, 2016 $ (1,678 ) $ (686 ) $ 14 $ (2,350 ) Current period other comprehensive income (loss) 288 (46 ) — 242 Balance as of September 30, 2017 $ (1,390 ) $ (732 ) $ 14 $ (2,108 )

OUTSTANDING SHARES AND EARNIN_2

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Reconciliation of Basic and Diluted EPS	The following table presents a reconciliation of basic and diluted EPS for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Basic earnings per share: Net income $ 3,467 $ 2,800 $ 9,203 $ 7,861 Weighted average common shares outstanding 11,548,148 11,508,302 11,543,022 11,504,527 Basic EPS $ 0.30 $ 0.24 $ 0.80 $ 0.68 Diluted earnings per share: Net income $ 3,467 $ 2,800 $ 9,203 $ 7,861 Weighted average common shares outstanding 11,548,148 11,508,302 11,543,022 11,504,527 Effect of dilutive shares 171,141 149,081 164,861 145,674 Adjusted weighted average common shares outstanding 11,719,289 11,657,383 11,707,883 11,650,201 Diluted EPS $ 0.30 $ 0.24 $ 0.79 $ 0.67

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2018Property
Impact of Recently Issued Accounting Standards [Abstract]
Number of properties leased	10

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Investment securities available-for-sale [Abstract]
Amortized cost	$ 299,389		$ 299,389		$ 284,947
Unrealized gains	128		128		311
Unrealized losses	(8,531)		(8,531)		(4,517)
Estimated fair value	290,986		290,986		280,741
Proceeds from sales/calls/maturities of available-for-sale securities	1,810	$ 5,800	16,390	$ 8,357
Gross realized gains from sales/calls of available-for-sale securities	0	2	0	2
Gross realized losses from sales/calls of available-for-sale securities	0	$ 0	0	$ (16)
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	32,912		32,912		18,589
Unrealized gains	0		0		0
Unrealized losses	(257)		(257)		(125)
Estimated fair value	32,655		32,655		18,464
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	39,822		39,822		21,353
Unrealized gains	0		0		0
Unrealized losses	(366)		(366)		(244)
Estimated fair value	39,456		39,456		21,109
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	19,258		19,258		23,138
Unrealized gains	111		111		216
Unrealized losses	(206)		(206)		(146)
Estimated fair value	19,163		19,163		23,208
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	64,964		64,964		67,724
Unrealized gains	0		0		0
Unrealized losses	(2,937)		(2,937)		(1,641)
Estimated fair value	62,027		62,027		66,083
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	142,433		142,433		154,143
Unrealized gains	17		17		95
Unrealized losses	(4,765)		(4,765)		(2,361)
Estimated fair value	$ 137,685		$ 137,685		$ 151,877

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual and Expected Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Maturity in years [Abstract]
Due in one year or less	$ 42,443
Due after one year through five years	43,810
Due after five years through ten years	5,739
Subtotal	91,992
MBS & CMO	207,397
Amortized cost	299,389	$ 284,947
Maturity in years [Abstract]
Due in one year or less	42,278
Due after one year through five years	43,169
Due after five years through ten years	5,827
Subtotal	91,274
MBS & CMO	199,712
Estimated fair value	$ 290,986	$ 280,741

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details) $ in Thousands	Sep. 30, 2018USD ($)Security	Dec. 31, 2017USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 97,840	$ 117,729
Less than 12 months, unrealized losses	(1,142)	(1,312)
12 months or more, fair value	182,358	141,518
12 Months or more, unrealized losses	(7,389)	(3,205)
Total fair value	280,198	259,247
Total unrealized losses	$ (8,531)	(4,517)
Investment securities in unrealized loss position less than 12 months | Security	93
Investment securities in unrealized loss position more than 12 months | Security	164
Investment securities pledged as collateral	$ 37,170	32,399
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	24,258	10,004
Less than 12 months, unrealized losses	(98)	(2)
12 months or more, fair value	8,397	8,460
12 Months or more, unrealized losses	(159)	(123)
Total fair value	32,655	18,464
Total unrealized losses	(257)	(125)
Securities of U.S. Government Agencies and Corporations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	22,332	6,049
Less than 12 months, unrealized losses	(152)	(50)
12 months or more, fair value	17,124	15,060
12 Months or more, unrealized losses	(214)	(194)
Total fair value	39,456	21,109
Total unrealized losses	(366)	(244)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	5,466	7,677
Less than 12 months, unrealized losses	(54)	(34)
12 months or more, fair value	7,523	7,116
12 Months or more, unrealized losses	(152)	(112)
Total fair value	12,989	14,793
Total unrealized losses	(206)	(146)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	9,104	31,679
Less than 12 months, unrealized losses	(149)	(576)
12 months or more, fair value	52,923	34,404
12 Months or more, unrealized losses	(2,788)	(1,065)
Total fair value	62,027	66,083
Total unrealized losses	(2,937)	(1,641)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	36,680	62,320
Less than 12 months, unrealized losses	(689)	(650)
12 months or more, fair value	96,391	76,478
12 Months or more, unrealized losses	(4,076)	(1,711)
Total fair value	133,071	138,798
Total unrealized losses	$ (4,765)	$ (2,361)

LOANS (Details)

LOANS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)Category	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Composition of loan portfolio by loan class [Abstract]
Loans	$ 774,144		$ 749,196	$ 703,760
Allowance for loan losses	(12,339)	$ (11,807)	(11,133)	(11,563)	$ (11,720)	$ (10,899)
Net deferred origination fees and costs	1,010		1,049
Loans, net	$ 762,815		739,112
Minimum [Member]
Composition of loan portfolio by loan class [Abstract]
Delinquent loans revaluation period	3 months
Maximum [Member]
Composition of loan portfolio by loan class [Abstract]
Delinquent loans revaluation period	12 months
Commercial [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 129,381		135,015	123,656
Allowance for loan losses	$ (2,766)	(2,764)	(2,625)	(2,319)	(3,060)	(3,571)
Loan portfolio by segment	17.00%
Commercial Real Estate [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 414,311		398,346	366,350
Allowance for loan losses	$ (5,671)	(5,384)	(5,460)	(5,460)	(4,883)	(3,910)
Categories of loans | Category	2
Loan portfolio by segment	53.00%
Agriculture [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 123,753		113,555	109,140
Allowance for loan losses	$ (1,688)	(1,535)	(1,547)	(1,476)	(1,375)	(1,262)
Loan portfolio by segment	16.00%
Residential Mortgage [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 47,641		42,081	42,844
Allowance for loan losses	$ (626)	(619)	(628)	(662)	(677)	(660)
Loan portfolio by segment	6.00%
Residential Construction [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 23,039		21,299	21,969
Allowance for loan losses	$ (357)	(361)	(360)	(423)	(477)	(440)
Loan portfolio by segment	3.00%
Consumer [Member]
Composition of loan portfolio by loan class [Abstract]
Loans	$ 36,019		38,900	39,801
Allowance for loan losses	$ (283)	$ (306)	$ (342)	$ (447)	$ (378)	$ (498)
Loan portfolio by segment	5.00%

LOANS, Non-accrual and Past Due

LOANS, Non-accrual and Past Due Loans (Details) $ in Thousands	Sep. 30, 2018USD ($)Loan	Dec. 31, 2017USD ($)Loan	Sep. 30, 2017USD ($)
Non-accrual and Past Due Loans [Abstract]
Current & accruing	$ 771,232	$ 744,298
Nonaccrual	2,254	3,767
Total	774,144	749,196	$ 703,760
Commitments to lend additional funds to borrowers whose loans were on non-accrual status	0
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	625	451
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	635
90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	33	45
Commercial [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	128,813	133,913
Nonaccrual	301	1,057
Total	$ 129,381	$ 135,015	123,656
Number of nonaccrual loans | Loan	2	3
Commercial [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 234	$ 0
Commercial [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Commercial [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	33	45
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	412,675	396,521
Nonaccrual	1,636	1,724
Total	$ 414,311	$ 398,346	366,350
Number of nonaccrual loans | Loan	3	3
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 0	$ 101
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Commercial Real Estate [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Agriculture [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	123,753	113,555
Nonaccrual	0	0
Total	123,753	113,555	109,140
Agriculture [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Agriculture [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Agriculture [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Residential Mortgage [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	47,357	40,354
Nonaccrual	104	781
Total	$ 47,641	$ 42,081	42,844
Number of nonaccrual loans | Loan	2	3
Residential Mortgage [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 180	$ 349
Residential Mortgage [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	597
Residential Mortgage [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Residential Construction [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	23,039	21,299
Nonaccrual	0	0
Total	23,039	21,299	21,969
Residential Construction [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Residential Construction [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Residential Construction [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Consumer [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	35,595	38,656
Nonaccrual	213	205
Total	$ 36,019	$ 38,900	$ 39,801
Number of nonaccrual loans | Loan	2	1
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 211	$ 1
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	38
Consumer [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 0	$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Impaired loans [Abstract]
Unpaid contractual principal balance	$ 8,206		$ 8,206		$ 9,693
Recorded investment with no allowance	2,254		2,254		3,767
Recorded investment with allowance	4,842		4,842		5,234
Total recorded investment	7,096		7,096		9,001
Related allowance	413		413		470
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	7,796	$ 9,283	7,929	$ 10,074
Interest income recognized	67	130	220	245
Commercial [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	3,344		3,344		3,882
Recorded investment with no allowance	301		301		1,057
Recorded investment with allowance	2,343		2,343		2,603
Total recorded investment	2,644		2,644		3,660
Related allowance	41		41		53
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	2,918	3,359	3,007	4,460
Interest income recognized	43	91	134	108
Commercial Real Estate [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	2,060		2,060		2,114
Recorded investment with no allowance	1,636		1,636		1,724
Recorded investment with allowance	264		264		272
Total recorded investment	1,900		1,900		1,996
Related allowance	22		22		36
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	1,923	2,164	1,941	1,487
Interest income recognized	4	4	11	12
Agriculture [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	0		0		0
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	0		0		0
Total recorded investment	0		0		0
Related allowance	0		0		0
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	0	0	0	0
Interest income recognized	0	0	0	0
Residential Mortgage [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	1,803		1,803		2,628
Recorded investment with no allowance	104		104		781
Recorded investment with allowance	1,462		1,462		1,496
Total recorded investment	1,566		1,566		2,277
Related allowance	300		300		302
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	1,879	2,438	1,905	2,733
Interest income recognized	15	23	45	77
Residential Construction [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	568		568		651
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	568		568		650
Total recorded investment	568		568		650
Related allowance	48		48		76
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	606	732	625	774
Interest income recognized	2	9	21	28
Consumer [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	431		431		418
Recorded investment with no allowance	213		213		205
Recorded investment with allowance	205		205		213
Total recorded investment	418		418		418
Related allowance	2		2		$ 3
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	470	590	451	620
Interest income recognized	$ 3	$ 3	$ 9	$ 20

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)LoanContract	Sep. 30, 2017USD ($)LoanContract	Sep. 30, 2018USD ($)LoanContract	Sep. 30, 2017USD ($)LoanContract	Dec. 31, 2017USD ($)
Troubled Debt Restructurings [Abstract]
Period of continuous payment for reclassification of nonaccrual loans to accruing status			6 months
TDR loans	$ 5,036		$ 5,036		$ 5,896
Specific reserves for TDR loans	413		413		470
TDR loans performing in compliance with modified terms	4,842		4,842		$ 5,234
Commitments to advance existing TDR loans	$ 0		$ 0
Loans Modified as TDR's [Abstract]
Number of contracts | Contract	1	1	1	1
Pre-modification outstanding recorded investment	$ 194	$ 2,410	$ 194	$ 2,410
Post-modification outstanding recorded investment	$ 194	$ 2,410	$ 194	$ 2,410
Number of TDR loans defaulted within 12 months of modification date | Loan	0	0	0	0
TDR loans defaulted within 12 months of modification date	$ 0	$ 0	$ 0	$ 0
Consumer [Member]
Loans Modified as TDR's [Abstract]
Number of contracts | Contract	1		1
Pre-modification outstanding recorded investment	$ 194		$ 194
Post-modification outstanding recorded investment	$ 194		$ 194
Commercial [Member]
Loans Modified as TDR's [Abstract]
Number of contracts | Contract		1		1
Pre-modification outstanding recorded investment		$ 2,410		$ 2,410
Post-modification outstanding recorded investment		$ 2,410		$ 2,410

LOANS, Financing Receivables by

LOANS, Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Risk ratings by loan class [Abstract]
Loans	$ 774,144	$ 749,196	$ 703,760
Pass [Member]
Risk ratings by loan class [Abstract]
Loans	739,888	720,446
Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	14,640	22,938
Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	19,616	5,812
Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Commercial [Member]
Risk ratings by loan class [Abstract]
Loans	129,381	135,015	123,656
Commercial [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	126,268	132,846
Commercial [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	282	1,050
Commercial [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	2,831	1,119
Commercial [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Commercial [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Commercial Real Estate [Member]
Risk ratings by loan class [Abstract]
Loans	414,311	398,346	366,350
Commercial Real Estate [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	389,763	378,632
Commercial Real Estate [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	8,770	16,101
Commercial Real Estate [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	15,778	3,613
Commercial Real Estate [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Commercial Real Estate [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Agriculture [Member]
Risk ratings by loan class [Abstract]
Loans	123,753	113,555	109,140
Agriculture [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	118,377	110,370
Agriculture [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	5,368	3,140
Agriculture [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	8	45
Agriculture [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Agriculture [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Mortgage [Member]
Risk ratings by loan class [Abstract]
Loans	47,641	42,081	42,844
Residential Mortgage [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	46,979	39,142
Residential Mortgage [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	220	2,147
Residential Mortgage [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	442	792
Residential Mortgage [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Mortgage [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Construction [Member]
Risk ratings by loan class [Abstract]
Loans	23,039	21,299	21,969
Residential Construction [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	23,039	21,299
Residential Construction [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Construction [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Construction [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Residential Construction [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Consumer [Member]
Risk ratings by loan class [Abstract]
Loans	36,019	38,900	$ 39,801
Consumer [Member] | Pass [Member]
Risk ratings by loan class [Abstract]
Loans	35,462	38,157
Consumer [Member] | Special Mention [Member]
Risk ratings by loan class [Abstract]
Loans	0	500
Consumer [Member] | Substandard [Member]
Risk ratings by loan class [Abstract]
Loans	557	243
Consumer [Member] | Doubtful [Member]
Risk ratings by loan class [Abstract]
Loans	0	0
Consumer [Member] | Loss [Member]
Risk ratings by loan class [Abstract]
Loans	$ 0	$ 0

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Allowance for credit losses [Roll Forward]
Beginning balance	$ 11,807	$ 11,720	$ 11,133	$ 10,899	$ 10,899
Provision for loan losses	525	0	1,575	600	600
Charge-offs	(8)	(229)	(494)	(245)	(835)
Recoveries	15	72	125	309	469
Net (charge-offs) recoveries	7	(157)	(369)	64	(366)
Ending balance	12,339	11,563	12,339	11,563	11,133
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	413	746	413	746	470
Loans collectively evaluated for impairment	11,926	10,817	11,926	10,817	10,663
Ending balance	12,339	11,563	12,339	11,563	11,133
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	7,096	9,646	7,096	9,646	9,001
Loans collectively evaluated for impairment	767,048	694,114	767,048	694,114	740,195
Ending balance	774,144	703,760	774,144	703,760	749,196
Commercial [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	2,764	3,060	2,625	3,571	3,571
Provision for loan losses	2	(547)	571	(1,181)	(567)
Charge-offs	0	(220)	(475)	(220)	(681)
Recoveries	0	26	45	149	302
Net (charge-offs) recoveries	0	(194)	(430)	(71)	(379)
Ending balance	2,766	2,319	2,766	2,319	2,625
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	41	59	41	59	53
Loans collectively evaluated for impairment	2,725	2,260	2,725	2,260	2,572
Ending balance	2,766	2,319	2,766	2,319	2,625
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	2,644	3,177	2,644	3,177	3,660
Loans collectively evaluated for impairment	126,737	120,479	126,737	120,479	131,355
Ending balance	129,381	123,656	129,381	123,656	135,015
Commercial Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	5,384	4,883	5,460	3,910	3,910
Provision for loan losses	287	577	211	1,550	1,550
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	5,671	5,460	5,671	5,460	5,460
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	22	40	22	40	36
Loans collectively evaluated for impairment	5,649	5,420	5,649	5,420	5,424
Ending balance	5,671	5,460	5,671	5,460	5,460
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,900	2,796	1,900	2,796	1,996
Loans collectively evaluated for impairment	412,411	363,554	412,411	363,554	396,350
Ending balance	414,311	366,350	414,311	366,350	398,346
Agriculture [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,535	1,375	1,547	1,262	1,262
Provision for loan losses	153	101	141	214	285
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	1,688	1,476	1,688	1,476	1,547
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	1,688	1,476	1,688	1,476	1,547
Ending balance	1,688	1,476	1,688	1,476	1,547
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	123,753	109,140	123,753	109,140	113,555
Ending balance	123,753	109,140	123,753	109,140	113,555
Residential Mortgage [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	619	677	628	660	660
Provision for loan losses	1	(21)	(28)	(94)	(7)
Charge-offs	0	0	0	0	(121)
Recoveries	6	6	26	96	96
Net (charge-offs) recoveries	6	6	26	96	(25)
Ending balance	626	662	626	662	628
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	300	564	300	564	302
Loans collectively evaluated for impairment	326	98	326	98	326
Ending balance	626	662	626	662	628
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,566	2,425	1,566	2,425	2,277
Loans collectively evaluated for impairment	46,075	40,419	46,075	40,419	39,804
Ending balance	47,641	42,844	47,641	42,844	42,081
Residential Construction [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	361	477	360	440	440
Provision for loan losses	(6)	(56)	(7)	(21)	(85)
Charge-offs	0	0	0	0	0
Recoveries	2	2	4	4	5
Net (charge-offs) recoveries	2	2	4	4	5
Ending balance	357	423	357	423	360
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	48	79	48	79	76
Loans collectively evaluated for impairment	309	344	309	344	284
Ending balance	357	423	357	423	360
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	568	659	568	659	650
Loans collectively evaluated for impairment	22,471	21,310	22,471	21,310	20,649
Ending balance	23,039	21,969	23,039	21,969	21,299
Consumer [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	306	378	342	498	498
Provision for loan losses	(22)	40	(90)	(86)	(189)
Charge-offs	(8)	(9)	(19)	(25)	(33)
Recoveries	7	38	50	60	66
Net (charge-offs) recoveries	(1)	29	31	35	33
Ending balance	283	447	283	447	342
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	2	4	2	4	3
Loans collectively evaluated for impairment	281	443	281	443	339
Ending balance	283	447	283	447	342
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	418	589	418	589	418
Loans collectively evaluated for impairment	35,601	39,212	35,601	39,212	38,482
Ending balance	36,019	39,801	36,019	39,801	38,900
Unallocated [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	838	870	171	558	558
Provision for loan losses	110	(94)	777	218	(387)
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	948	776	948	776	171
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	948	776	948	776	171
Ending balance	$ 948	$ 776	$ 948	$ 776	$ 171

MORTGAGE OPERATIONS (Details)

MORTGAGE OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
MORTGAGE OPERATIONS [Abstract]
Real estate mortgage loans serviced	$ 215,006		$ 215,006		$ 221,591
Key assumptions used in measuring the fair value of mortgage servicing rights [Abstract]
Constant prepayment rate			9.30%		10.80%
Discount rate			10.01%		10.02%
Weighted average life			6 years 6 months 22 days		6 years 7 days
Mortgage servicing rights [Roll Forward]
Beginning balance			$ 1,712
Additions			113
Reductions			(210)
Ending balance	1,615		1,615		$ 1,712
Valuation allowance [Roll Forward]
Beginning balance			0
Additions			0
Reductions			0
Ending balance	0		0		0
Mortgage servicing rights, net of valuation allowance [Roll Forward]
Beginning balance			1,712
Additions			113
Reductions			(210)
Ending balance	1,615		1,615
Fair value of mortgage servicing rights asset	2,052		2,052		$ 1,876
Contractually specified servicing fee	$ 136	$ 142	$ 412	$ 434

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 290,986	$ 280,741
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	290,986	280,741
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,655	18,464
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	258,331	262,277
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Non-recurring [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	300	1,468
Total assets at fair value	300	1,468
Non-recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	0	0
Total assets at fair value	0	0
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	0	0
Total assets at fair value	0	0
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	300	1,468
Total assets at fair value	300	1,468
U.S. Treasury Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,655	18,464
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,655	18,464
U.S. Treasury Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,655	18,464
U.S. Treasury Securities [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
U.S. Treasury Securities [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Securities of U.S. Government Agencies and Corporations [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	39,456	21,109
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	39,456	21,109
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	39,456	21,109
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Obligations of States and Political Subdivisions [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	19,163	23,208
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	19,163	23,208
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	19,163	23,208
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Collateralized Mortgage Obligations [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	62,027	66,083
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	62,027	66,083
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	62,027	66,083
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Mortgage-backed Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	137,685	151,877
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	137,685	151,877
Mortgage-backed Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Mortgage-backed Securities [Member] | Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	137,685	151,877
Mortgage-backed Securities [Member] | Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 0	$ 0
Impaired Loans [Member] | Minimum [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Selling and commission costs	6.00%
Impaired Loans [Member] | Maximum [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Selling and commission costs	7.00%

FAIR VALUE MEASUREMENTS, Key Me

FAIR VALUE MEASUREMENTS, Key Methods and Assumptions Used (Details) - Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] - Selling Costs [Member]	Sep. 30, 2018	Dec. 31, 2017
Minimum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Impaired loans, measurement input	0.06	0.06
Maximum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Impaired loans, measurement input	0.07	0.07

FAIR VALUE MEASUREMENTS, Fair V

FAIR VALUE MEASUREMENTS, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans receivable [Abstract]
Mortgage servicing rights	$ 2,052	$ 1,876
Carrying Amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	139,659	152,892
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	5,635	1,984
Loans receivable [Abstract]
Loans held-for-sale	1,005	1,040
Interest receivable	4,493	4,117
Financial liabilities [Abstract]
Interest payable	97	72
Carrying Amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,019	5,567
Loans receivable [Abstract]
Net loans	762,815	739,112
Mortgage servicing rights	1,615	1,712
Financial liabilities [Abstract]
Deposits	124,616	1,104,740
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	139,659	152,892
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	5,629	1,983
Loans receivable [Abstract]
Loans held-for-sale	1,023	1,060
Interest receivable	4,493	4,117
Financial liabilities [Abstract]
Interest payable	97	72
Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,019	5,567
Loans receivable [Abstract]
Net loans	724,450	736,292
Mortgage servicing rights	2,052	1,876
Financial liabilities [Abstract]
Deposits	$ 968,861	$ 993,425

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 209,002	$ 224,800
Undisbursed Loan Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	205,609	220,882
Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	2,125	2,635
Financial Standby Letter of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	0	0
Draw on letters of credit	0	0
Performance Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	2,125	2,635
Draw on letters of credit	0	0
Commitments to Sell Loans [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,268	1,283
Reserve for Off-balance Sheet Activity [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Reserve for unfunded commitments	800	850
Derivative [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 0	$ 0

STOCK PLANS (Details)

STOCK PLANS (Details)	Jan. 25, 2018	Sep. 30, 2018
STOCK PLANS [Abstract]
Stock dividend	4.00%
Dividends date declared		Jan. 25, 2018
Dividend date to be paid		Mar. 29, 2018
Dividends payable, date of record		Feb. 28, 2018

STOCK PLANS, Stock Options (Det

STOCK PLANS, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018		Sep. 30, 2018	Sep. 30, 2017
Stock options, number of shares [Roll Forward]
Balance, beginning of period (in shares)	313,509		260,592
Granted (in shares)	0		69,868
Expired (in shares)	0		(3,412)
Cancelled / Forfeited (in shares)	0		0
Exercised (in shares)	0		(13,539)
Balance, end of period (in shares)	313,509		313,509
Exercisable (vested) at end of period (in shares)	154,508		154,508
Stock options, weighted average exercise price [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 8.64		$ 7.42
Granted (in dollars per share)	0		13.03
Expired (in dollars per share)	0		11.90
Cancelled / Forfeited (in dollars per share)	0		0
Exercised (in dollars per share)	0		7.05
Balance, end of period (in dollars per share)	8.64		8.64
Exercisable (vested) at end of period (in dollars per share)	$ 6.32		$ 6.32
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value	$ 1,579,753		$ 1,579,753
Exercisable (vested), aggregate intrinsic value	$ 1,136,655		$ 1,136,655
Outstanding, weighted average remaining contractual term	7 years 7 days		7 years 7 days
Exercisable (vested), weighted average remaining contractual term	5 years 6 months 4 days		5 years 6 months 4 days
Weighted average fair value of options granted (in dollars per share)			$ 2.48
Intrinsic value of options exercised			$ 81,000	$ 0
Fair value of awards vested			114,000	$ 85,000
Unrecognized compensation related to non-vested stock options	$ 297,000		$ 297,000
Unrecognized compensation cost, period for recognition			2 years 6 months 25 days
Recognized compensation cost	$ 36,000		$ 104,000
Weighted average assumptions used in valuation [Abstract]
Risk free interest rate	0.00%	[1]	2.57%
Expected dividend yield	0.00%	[1]	0.00%
Expected life	0 years	[1]	5 years
Expected price volatility	0.00%	[1]	14.44%
2016 Stock Incentive Plan [Member]
Stock options, additional disclosures [Abstract]
Shares tendered (in shares)			7,043
Award vesting period			6 months
[1]	There were no stock options granted during the three months ended September 30, 2018.

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	113,709	111,848
Granted (in shares) | shares	0	25,769
Cancelled/Forfeited (in shares) | shares	0	0
Exercised/Released/Vested (in shares) | shares	0	(23,908)
Outstanding at end of period (in shares) | shares	113,709	113,709
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.37	$ 7.85
Granted (in dollars per share) | $ / shares	0	13.03
Cancelled/Forfeited (in dollars per share) | $ / shares	0	0
Exercised/Released/Vested (in dollars per share) | $ / shares	0	6.22
Outstanding at end of period (in dollars per share) | $ / shares	$ 9.37	$ 9.37
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 1,555,539	$ 1,555,539
Outstanding, weighted average remaining contractual term	2 years 8 months 5 days	2 years 8 months 5 days
Unrecognized compensation related to restricted stock | $	$ 563,000	$ 563,000
Unrecognized compensation cost, period for recognition		2 years 8 months 5 days
Recognized compensation cost | $	$ 67,000	$ 196,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)shares	Sep. 30, 2018USD ($)$ / sharesshares
Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Unrecognized compensation cost	$ 14,000	$ 14,000
Weighted average period to recognize the unrecognized compensation		3 months
Recognized compensation cost	$ 42,000	$ 14,000
Weighted average fair value at issuance date (in dollars per share) | $ / shares		$ 2.69
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	1.61%	1.61%
Expected dividend yield	0.00%	0.00%
Expected life	1 year	1 year
Expected price volatility	12.50%	12.50%
2016 Amended Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Shares authorized under plan (in shares) | shares	281,216	281,216
Purchase price of stock in percentage for participation		85.00%
2016 Amended Employee Stock Purchase Plan [Member] | Minimum [Member]
Employee Stock Purchase Plan [Abstract]
Eligibility employment period required for plan participation		90 days
2016 Amended Employee Stock Purchase Plan [Member] | Maximum [Member]
Employee Stock Purchase Plan [Abstract]
Plan participation period		27 months
Percentage of employee compensation that can be withheld to purchase common stock		10.00%

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance			$ 100,044	$ 92,298	$ 92,298
Current period other comprehensive income (loss)	$ (569)	$ 175	(2,990)	242	(1,448)
Balance	106,589		106,589		100,044
Accumulated Other Comprehensive Loss [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(6,818)	(2,283)	(4,397)	(2,350)	(2,350)
Current period other comprehensive income (loss)			(2,990)		(1,448)
Balance	(7,387)	(2,108)	(7,387)	(2,108)	(4,397)
Unrealized Gains (Losses) on Securities [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(5,418)	(1,565)	(2,997)	(1,678)	(1,678)
Current period other comprehensive income (loss)	(569)	175	(2,990)	288
Balance	(5,987)	(1,390)	(5,987)	(1,390)	(2,997)
Officers' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(1,403)	(732)	(1,403)	(686)	(686)
Current period other comprehensive income (loss)	0	0	0	(46)
Balance	(1,403)	(732)	(1,403)	(732)	(1,403)
Directors' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	3	14	3	14	14
Current period other comprehensive income (loss)	0	0	0	0
Balance	$ 3	$ 14	$ 3	$ 14	$ 3

OUTSTANDING SHARES AND EARNIN_3

OUTSTANDING SHARES AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 25, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Stock dividend percentage	4.00%
Dividends date declared				Jan. 25, 2018
Dividend date to be paid				Mar. 29, 2018
Dividends payable, date of record				Feb. 28, 2018
Basic earnings per share [Abstract]
Net income		$ 3,467	$ 2,800	$ 9,203	$ 7,861	$ 8,748
Weighted average common shares outstanding (in shares)		11,548,148	11,508,302	11,543,022	11,504,527
Basic EPS (in dollars per share)		$ 0.30	$ 0.24	$ 0.80	$ 0.68
Diluted earnings per share [Abstract]
Net income		$ 3,467	$ 2,800	$ 9,203	$ 7,861	$ 8,748
Weighted average common shares outstanding (in shares)		11,548,148	11,508,302	11,543,022	11,504,527
Effect of dilutive shares (in shares)		171,141	149,081	164,861	145,674
Adjusted weighted average common shares outstanding (in shares)		11,719,289	11,657,383	11,707,883	11,650,201
Diluted EPS (in dollars per share)		$ 0.30	$ 0.24	$ 0.79	$ 0.67
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		69,868	71,134	90,616	71,134