First Northern Community Bancorp (FNRN) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 04, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	FIRST NORTHERN COMMUNITY BANCORP
Entity Central Index Key	0001114927
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		12,295,386
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Address, State or Province	CA

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 136,093	$ 116,032
Certificates of deposit	14,945	7,595
Investment securities - available-for-sale	325,310	314,637
Loans, net of allowance for loan losses of $12,287 at September 30, 2019 and $12,822 at December 31, 2018	755,004	763,393
Loans held-for-sale	3,506	2,295
Stock in Federal Home Loan Bank and other equity securities, at cost	6,574	6,019
Premises and equipment, net	6,386	6,646
Other real estate owned	784	1,092
Interest receivable and other assets	38,661	32,136
Total Assets	1,287,263	1,249,845
Liabilities:
Demand deposits	428,089	416,493
Interest-bearing transaction deposits	312,948	312,697
Savings and MMDA's	339,972	332,514
Time, $250,000 or less	39,928	46,905
Time, over $250,000	17,097	16,003
Total deposits	1,138,034	1,124,612
Interest payable and other liabilities	19,707	12,772
Total Liabilities	1,157,741	1,137,384
Stockholders' Equity:
Common stock, no par value; 16,000,000 shares authorized; 12,295,386 shares issued and outstanding at September 30, 2019 and 12,253,812 shares issued and outstanding at December 31, 2018	93,308	92,618
Additional paid-in capital	977	977
Retained earnings	34,709	23,902
Accumulated other comprehensive gain (loss), net	528	(5,036)
Total Stockholders' Equity	129,522	112,461
Total Liabilities and Stockholders' Equity	$ 1,287,263	$ 1,249,845

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Loans, allowance for loan losses	$ 12,287	$ 12,822
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)	12,295,386	12,253,812
Common stock, shares outstanding (in shares)	12,295,386	12,253,812

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income:
Loans	$ 9,642	$ 9,648	$ 29,110	$ 27,600
Due from banks interest bearing accounts	700	650	1,979	1,594
Investment securities
Taxable	1,660	1,360	4,890	3,982
Non-taxable	82	32	202	105
Other earning assets	114	110	337	313
Total interest and dividend income	12,198	11,800	36,518	33,594
Interest expense:
Deposits	487	341	1,310	885
Total interest expense	487	341	1,310	885
Net interest income	11,711	11,459	35,208	32,709
Provision for loan losses	0	525	0	1,575
Net interest income after provision for loan losses	11,711	10,934	35,208	31,134
Non-interest income:
Service charges on deposit accounts	514	509	1,481	1,487
Gains on sales of loans held-for-sale	155	116	340	270
Investment and brokerage services income	165	157	463	477
Mortgage brokerage income	68	14	206	26
Loan servicing income	88	109	274	315
Debit card income	568	541	1,626	1,579
Losses on sales of available-for-sale securities	0	0	(6)	0
Other income	231	340	935	1,181
Total non-interest income	1,789	1,786	5,319	5,335
Non-interest expenses:
Salaries and employee benefits	5,511	5,117	16,313	15,497
Occupancy and equipment	797	715	2,241	2,127
Data processing	718	490	1,961	1,509
Stationery and supplies	51	88	185	293
Advertising	106	79	282	264
Directors' fees	76	74	206	214
Other real estate owned expense	17	5	388	5
Other expense	1,039	1,347	3,562	3,819
Total non-interest expenses	8,315	7,915	25,138	23,728
Income before provision for income taxes	5,185	4,805	15,389	12,741
Provision for income taxes	1,431	1,338	4,244	3,538
Net income	$ 3,754	$ 3,467	$ 11,145	$ 9,203
Basic earnings per common share (in dollars per share)	$ 0.31	$ 0.29	$ 0.92	$ 0.76
Diluted earnings per common share (in dollars per share)	$ 0.30	$ 0.28	$ 0.91	$ 0.75

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 3,754	$ 3,467	$ 11,145	$ 9,203
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) arising during the period, net of tax effect of $307 and $(230) for the three months ended September 30, 2019 and September 30, 2018, respectively, and $2,241 and $(1,207) for the nine months ended September 30, 2019 and September 30, 2018, respectively	762	(569)	5,560	(2,990)
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $0 and $2 for the three and nine months ended September 30, 2019, respectively, and $0 for the three and nine months ended September 30, 2018.	0	0	4	0
Other comprehensive income (loss), net of tax	762	(569)	5,564	(2,990)
Comprehensive income	$ 4,516	$ 2,898	$ 16,709	$ 6,213

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Unrealized holding gains (losses) on securities:
Unrealized holding gains (losses) arising during the period, tax	$ 307	$ (230)	$ 2,241	$ (1,207)
Reclassification adjustment due to losses realized on sales of securities, tax	$ 0	$ 0	$ 2	$ 0

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 Income (Loss), Net of Tax [Member]	Total
Balance at Dec. 31, 2017	$ 85,583	$ 977	$ 17,881	$ (4,397)	$ 100,044
Balance (in shares) at Dec. 31, 2017	11,630,129
Net income			2,733		2,733
Other comprehensive income (loss), net of taxes				(1,811)	(1,811)
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	$ 108				108
Common shares issued related to restricted stock grants	$ 0				0
Common shares issued related to restricted stock grants (in shares)	25,281
Stock options exercised	$ 0				0
Stock options exercised (in shares)	5,978
Balance at Mar. 31, 2018	$ 85,931	977	20,364	(6,208)	101,064
Balance (in shares) at Mar. 31, 2018	11,661,857
Balance at Dec. 31, 2017	$ 85,583	977	17,881	(4,397)	100,044
Balance (in shares) at Dec. 31, 2017	11,630,129
Net income					9,203
Other comprehensive income (loss), net of taxes					(2,990)
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 Mar. 31, 2018	$ 85,931	977	20,364	(6,208)	101,064
Balance (in shares) at Mar. 31, 2018	11,661,857
Net income			3,003		3,003
Other comprehensive income (loss), net of taxes				(610)	(610)
Stock-based compensation	$ 117				117
Balance at Jun. 30, 2018	$ 86,048	977	23,367	(6,818)	103,574
Balance (in shares) at Jun. 30, 2018	11,661,857
Net income			3,467		3,467
Other comprehensive income (loss), net of taxes				(569)	(569)
Stock-based compensation	$ 117				117
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 Dec. 31, 2018	$ 92,618	977	23,902	(5,036)	112,461
Balance (in shares) at Dec. 31, 2018	12,253,812
Net income			3,985		3,985
Other comprehensive income (loss), net of taxes				1,478	1,478
Stock dividend adjustment	$ 330		(330)		0
Stock dividend adjustment (in shares)	1,401
Cash in lieu of fractional shares			(8)		(8)
Cash in lieu of fractional shares (in shares)	(116)
Stock-based compensation	$ 111				111
Common shares issued related to restricted stock grants	$ 0				0
Common shares issued related to restricted stock grants (in shares)	40,258
Balance at Mar. 31, 2019	$ 93,059	977	27,549	(3,558)	118,027
Balance (in shares) at Mar. 31, 2019	12,295,355
Balance at Dec. 31, 2018	$ 92,618	977	23,902	(5,036)	112,461
Balance (in shares) at Dec. 31, 2018	12,253,812
Net income					11,145
Other comprehensive income (loss), net of taxes					5,564
Balance at Sep. 30, 2019	$ 93,308	977	34,709	528	129,522
Balance (in shares) at Sep. 30, 2019	12,295,386
Balance at Mar. 31, 2019	$ 93,059	977	27,549	(3,558)	118,027
Balance (in shares) at Mar. 31, 2019	12,295,355
Net income			3,406		3,406
Other comprehensive income (loss), net of taxes				3,324	3,324
Stock-based compensation	$ 125				125
Restricted stock reversal					0
Restricted stock reversal (in shares)	(1,969)
Balance at Jun. 30, 2019	$ 93,184	977	30,955	(234)	124,882
Balance (in shares) at Jun. 30, 2019	12,293,386
Net income			3,754		3,754
Other comprehensive income (loss), net of taxes				762	762
Stock-based compensation	$ 124				124
Common shares issued related to restricted stock grants					0
Common shares issued related to restricted stock grants (in shares)	2,000
Balance at Sep. 30, 2019	$ 93,308	$ 977	$ 34,709	$ 528	$ 129,522
Balance (in shares) at Sep. 30, 2019	12,295,386

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Cash Flows From Operating Activities
Net income	$ 3,754	$ 3,985	$ 3,467	$ 2,733	$ 11,145	$ 9,203
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation					512	425
Accretion and amortization of investment securities premiums and discounts, net					1,269	2,007
(Decrease) increase in deferred loan origination fees and costs, net					(17)	39
Provision for loan losses	0		525		0	1,575	$ 2,100
Stock-based compensation					360	342
Gain on sale of fixed assets					(281)	0
Losses on sales of available-for-sale securities	0		0		6	0
Other real estate owned writedowns					308	0
Gains on sales of loans held-for-sale	(155)		(116)		(340)	(270)
Proceeds from sales of loans held-for-sale					19,749	17,636
Originations of loans held-for-sale					(20,620)	(17,331)
Changes in assets and liabilities:
Increase in interest receivable and other assets					(8,768)	(524)
Increase (decrease) in interest payable and other liabilities					6,935	(161)
Net cash provided by operating activities					10,258	12,941
Cash Flows From Investing Activities
Proceeds from calls or maturities of available-for-sale securities					35,555	16,390
Proceeds from sales of available-for-sale securities					8,102	0
Principal repayments on available-for-sale securities					37,297	38,058
Purchase of available-for-sale securities					(85,095)	(70,897)
Net increase in certificates of deposit					(7,350)	(3,651)
Net decrease (increase) in loans					8,406	(25,317)
Net increase in stock in Federal Home Loan Bank and other equity securities, at cost					(555)	(452)
Proceeds from the sale of premises and equipment					668	0
Purchases of premises and equipment, net					(639)	(171)
Net cash used in investing activities					(3,611)	(46,040)
Cash Flows From Financing Activities
Net increase in deposits					13,422	19,876
Cash dividends paid in lieu of fractional shares					(8)	(10)
Net cash provided by financing activities					13,414	19,866
Net increase (decrease) in Cash and Cash Equivalents					20,061	(13,233)
Cash and Cash Equivalents, beginning of period		$ 116,032		$ 152,892	116,032	152,892	152,892
Cash and Cash Equivalents, end of period	$ 136,093		$ 139,659		136,093	139,659	$ 116,032
Cash paid during the period for:
Interest					1,275	861
Income taxes					4,160	2,605
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed					6,610	6,046
Change in unrealized holding gains (losses) on available for sale securities, net of taxes					$ 5,564	$ (2,990)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2019
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, 2018 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, 2019
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, 2018. 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 February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Leases (Topic 842): Targeted Improvements. Leases. Recently Issued Accounting Pronouncements: In March 2019, FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. Leases. In November 2018, FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In April 2019, FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. In May 2019, FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2019
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	3. The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2019 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 31,519 $ 671 $ (17 ) $ 32,173 Securities of U.S. government agencies and corporations 58,967 537 (55 ) 59,449 Obligations of states and political subdivisions 25,439 860 (14 ) 26,285 Collateralized mortgage obligations 71,755 431 (299 ) 71,887 Mortgage-backed securities 135,248 903 (635 ) 135,516 Total debt securities $ 322,928 $ 3,402 $ (1,020 ) $ 325,310 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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 $ 50,825 $ 14 $ (157 ) $ 50,682 Securities of U.S. government agencies and corporations 42,215 89 (228 ) 42,076 Obligations of states and political subdivisions 19,110 181 (123 ) 19,168 Collateralized mortgage obligations 65,615 34 (1,850 ) 63,799 Mortgage-backed securities 142,297 147 (3,532 ) 138,912 Total debt securities $ 320,062 $ 465 $ (5,890 ) $ 314,637 The Company had $10,974,000 and $43,657,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three and nine months ended September 30, 2019, respectively. 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. Gross realized gains on sales of available-for-sale securities were $0 and $47,000 for the three and nine months ended September 30, 2019, respectively. There were no gross realized gains from sales of available-for-sale securities for the three and nine months ended September 30, 2018. Gross realized losses from sales of available-for-sale securities were $0 and $53,000 for the three and nine months ended September 30, 2019, respectively. There were no gross realized losses on sales of available-for-sale securities for the three and nine months ended September 30, 2018. The amortized cost and estimated market value of debt and other securities at September 30, 2019, 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 $ 40,108 $ 40,216 Due after one year through five years 54,956 55,999 Due after five years through ten years 12,379 12,907 Due after ten years 8,482 8,785 Subtotal 115,925 117,907 MBS & CMO 207,003 207,403 Total $ 322,928 $ 325,310 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, 2019, 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 $ — $ — $ 4,009 $ (17 ) $ 4,009 $ (17 ) Securities of U.S. government agencies and corporations 9,228 (31 ) 10,081 (24 ) 19,309 (55 ) Obligations of states and political subdivisions 1,611 (9 ) 860 (5 ) 2,471 (14 ) Collateralized Mortgage obligations 10,125 (15 ) 22,571 (284 ) 32,696 (299 ) Mortgage-backed securities 12,533 (37 ) 59,056 (598 ) 71,589 (635 ) Total $ 33,497 $ (92 ) $ 96,577 $ (928 ) $ 130,074 $ (1,020 ) No decline in value was considered “other-than-temporary” as of September 30, 2019. Thirty-one securities, all considered investment grade, which had an aggregate fair value of $33,497,000 and a total unrealized loss of $92,000, have been in an unrealized loss position for less than twelve months as of September 30, 2019. One hundred seven securities, all considered investment grade, which had an aggregate fair value of $96,577,000 and a total unrealized loss of $928,000, have been in an unrealized loss position for more than twelve months as of September 30, 2019. 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, 2019. 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, 2018, 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 $ 37,805 $ (67 ) $ 5,951 $ (90 ) $ 43,756 $ (157 ) Securities of U.S. government agencies and corporations 16,959 (39 ) 13,540 (189 ) 30,499 (228 ) Obligations of states and political subdivisions 847 (2 ) 9,134 (121 ) 9,981 (123 ) Collateralized Mortgage obligations 2,217 (6 ) 53,217 (1,844 ) 55,434 (1,850 ) Mortgage-backed securities 16,358 (123 ) 105,361 (3,409 ) 121,719 (3,532 ) Total $ 74,186 $ (237 ) $ 187,203 $ (5,653 ) $ 261,389 $ (5,890 ) Investment securities carried at $38,846,000 and $36,781,000 at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2019
LOANS [Abstract]
LOANS	4. The composition of the Company’s loan portfolio, by loan class, as of September 30, 2019 and December 31, 2018 was as follows: ($ in thousands) September 30, 2019 December 31, 2018 Commercial $ 104,913 $ 125,177 Commercial Real Estate 433,698 420,106 Agriculture 118,516 123,626 Residential Mortgage 60,840 51,064 Residential Construction 20,214 20,124 Consumer 28,372 35,397 766,553 775,494 Allowance for loan losses (12,287 ) (12,822 ) Net deferred origination fees and costs 738 721 Loans, net $ 755,004 $ 763,393 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 in the economy, 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. In general, non-payment is usually due to loss of employment and will follow general economic trends in the economy, 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, 2019, approximately 14% in principal amount of the Company's loans were for general commercial uses, including professional, retail and small businesses. Approximately 57% 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 15% in principal amount of the Company's loans were for agriculture, approximately 8% in principal amount of the Company’s loans were residential mortgage loans, approximately 2% in principal amount of the Company’s loans were residential construction loans and approximately 4% 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, 2019 and December 31, 2018, all loans were pledged under a blanket collateral lien to secure actual or potential borrowings from the Federal Home Loan Bank (“FHLB”). Non-accrual and Past Due Loans The Company’s loans by delinquency and non-accrual status, as of September 30, 2019 and December 31, 2018, 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, 2019 Commercial $ 102,706 $ 1,842 $ 84 $ — $ 281 $ 104,913 Commercial Real Estate 432,948 — 406 — 344 433,698 Agriculture 118,516 — — — — 118,516 Residential Mortgage 60,666 — — — 174 60,840 Residential Construction 20,214 — — — — 20,214 Consumer 27,918 16 — — 438 28,372 Total $ 762,968 $ 1,858 $ 490 $ — $ 1,237 $ 766,553 December 31, 2018 Commercial $ 123,765 $ 662 $ — $ — $ 750 $ 125,177 Commercial Real Estate 419,725 — — — 381 420,106 Agriculture 118,639 157 — — 4,830 123,626 Residential Mortgage 50,964 — — — 100 51,064 Residential Construction 20,124 — — — — 20,124 Consumer 35,054 114 38 — 191 35,397 Total $ 768,271 $ 933 $ 38 $ — $ 6,252 $ 775,494 Non-accrual loans amounted to $1,237,000 at September 30, 2019 and were comprised of two commercial loans totaling $281,000, two commercial real estate loans totaling $344,000, one residential mortgage loan totaling $174,000, and five consumer loans totaling $438,000. Non-accrual loans amounted to $6,252,000 at December 31, 2018 and were comprised of two commercial loans totaling $750,000, two commercial real estate loans totaling $381,000, five agriculture loans totaling $4,830,000, two residential mortgage loans totaling $100,000, and one consumer loan totaling $191,000. 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 was a $1,000 commitment to lend additional funds to a borrower whose loan was on non-accrual status at September 30, 2019. There was a $261,000 commitment to lend additional funds to a borrower whose loan was on non-accrual status at December 31, 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 $500,000 or more. Once identified, impaired loans are measured individually for impairment using one of three methods: present value of expected cash flows discounted at the loan's effective interest rate; the loan's observable market price; or fair value of collateral if the loan is collateral dependent. In general, any portion of the recorded investment in a collateral dependent loan in excess of the fair value of the collateral that can be identified as uncollectible, and is, therefore, deemed a confirmed loss, is promptly charged-off against the allowance for loan losses. Impaired loans, segregated by loan class, as of September 30, 2019 and December 31, 2018 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2019 Commercial $ 2,619 $ 281 $ 1,568 $ 1,849 $ 30 Commercial Real Estate 747 344 252 596 20 Agriculture — — — — — Residential Mortgage 1,162 174 919 1,093 175 Residential Construction 732 — 700 700 53 Consumer 525 438 82 520 1 Total $ 5,785 $ 1,237 $ 3,521 $ 4,758 $ 279 December 31, 2018 Commercial $ 3,591 $ 300 $ 2,602 $ 2,902 $ 496 Commercial Real Estate 780 381 261 642 21 Agriculture 4,830 4,830 — 4,830 — Residential Mortgage 1,669 100 1,451 1,551 287 Residential Construction 560 — 560 560 49 Consumer 403 191 198 389 2 Total $ 11,833 $ 5,802 $ 5,072 $ 10,874 $ 855 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2019 and September 30, 2018 was as follows: ($ in thousands) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,098 $ 28 $ 2,918 $ 43 Commercial Real Estate 600 4 1,923 4 Agriculture — — — — Residential Mortgage 1,054 29 1,879 15 Residential Construction 705 9 606 2 Consumer 361 1 470 3 Total $ 4,818 $ 71 $ 7,796 $ 67 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2019 and September 30, 2018 was as follows: ($ in thousands) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,318 $ 102 $ 3,007 $ 134 Commercial Real Estate 617 12 1,941 11 Agriculture 2,402 240 — — Residential Mortgage 1,253 63 1,905 45 Residential Construction 678 26 625 21 Consumer 374 23 451 9 Total $ 7,642 $ 466 $ 7,929 $ 220 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 $3,624,000 and $4,813,000 in TDR loans as of September 30, 2019 and December 31, 2018, respectively. Specific reserves for TDR loans totaled $279,000 and $405,000 as of September 30, 2019 and December 31, 2018, respectively. TDR loans performing in compliance with modified terms totaled $3,521,000 and $4,622,000 as of September 30, 2019 and December 31, 2018, respectively. There were no commitments to advance additional funds on existing TDR loans as of September 30, 2019 and December 31, 2018. There were no loans modified as TDRs during the three months ended September 30, 2019. Loans modified as TDRs during the three months ended September 30, 2018 were as follows: ($ 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 Loans modified as TDRs during the nine months ended September 30, 2019 were as follows: ($ in thousands) Nine Months Ended September 30, 2019 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Residential Construction 2 $ 189 $ 189 Total 2 $ 189 $ 189 Loans modified as TDRs during the nine months ended September 30, 2018 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 Loan modifications generally involve reductions in the interest rate, payment extensions, forgiveness of principal, or forbearance. No loans were modified as a TDR within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2019 and September 30, 2018. Credit Quality Indicators All loans are rated using the credit risk ratings and criteria adopted by the Company. Risk ratings are adjusted as 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, 2018. The following table presents the risk ratings by loan class as of September 30, 2019 and December 31, 2018: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2019 Commercial $ 103,672 $ 201 $ 1,040 $ — $ — $ 104,913 Commercial Real Estate 408,716 18,567 6,415 — — 433,698 Agriculture 108,117 8,040 2,359 — — 118,516 Residential Mortgage 60,219 — 621 — — 60,840 Residential Construction 20,214 — — — — 20,214 Consumer 27,312 500 560 — — 28,372 Total $ 728,250 $ 27,308 $ 10,995 $ — $ — $ 766,553 December 31, 2018 Commercial $ 121,848 $ 66 $ 2,813 $ 450 $ — $ 125,177 Commercial Real Estate 395,436 14,272 10,398 — — 420,106 Agriculture 104,809 11,750 7,067 — — 123,626 Residential Mortgage 50,149 — 915 — — 51,064 Residential Construction 19,372 752 — — — 20,124 Consumer 34,272 590 535 — — 35,397 Total $ 725,886 $ 27,430 $ 21,728 $ 450 $ — $ 775,494 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, 2019. Three months ended September 30, 2019 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2019 $ 2,372 $ 6,429 $ 1,913 $ 436 $ 196 $ 263 $ 1,229 $ 12,838 Provision for loan losses 384 154 280 17 52 (6 ) (881 ) — Charge-offs (446 ) — (98 ) — — (14 ) — (558 ) Recoveries 2 — — — — 5 — 7 Net (charge-offs) recoveries (444 ) — (98 ) — — (9 ) — (551 ) Balance as of September 30, 2019 $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 Nine months ended September 30, 2019 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2018 $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 Provision for loan losses (375 ) 693 561 (262 ) (91 ) (12 ) (514 ) — Charge-offs (596 ) — (98 ) — — (29 ) — (723 ) Recoveries 85 — — 72 21 10 — 188 Net (charge-offs) recoveries (511 ) — (98 ) 72 21 (19 ) — (535 ) Balance as of September 30, 2019 $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 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, 2019. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 30 $ 20 $ — $ 175 $ 53 $ 1 $ — $ 279 Loans collectively evaluated for impairment 2,282 6,563 2,095 278 195 247 348 12,008 Ending Balance $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 The following table details 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2018. Year ended December 31, 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 1,036 572 85 (19 ) (173 ) (92 ) 691 2,100 Charge-offs (509 ) (142 ) — — — (34 ) — (685 ) Recoveries 46 — — 34 131 63 — 274 Net (charge-offs) recoveries (463 ) (142 ) — 34 131 29 — (411 ) Ending Balance $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 Period-end amount allocated to: Loans individually evaluated for impairment $ 496 $ 21 $ — $ 287 $ 49 $ 2 $ — $ 855 Loans collectively evaluated for impairment 2,702 5,869 1,632 356 269 277 862 11,967 Balance as of December 31, 2018 $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 The Company’s investment in loans as of September 30, 2019, September 30, 2018, and December 31, 2018 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, 2019 Loans individually evaluated for impairment $ 1,849 $ 596 $ — $ 1,093 $ 700 $ 520 $ 4,758 Loans collectively evaluated for impairment 103,064 433,102 118,516 59,747 19,514 27,852 761,795 Ending Balance $ 104,913 $ 433,698 $ 118,516 $ 60,840 $ 20,214 $ 28,372 $ 766,553 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 December 31, 2018 Loans individually evaluated for impairment $ 2,902 $ 642 $ 4,830 $ 1,551 $ 560 $ 389 $ 10,874 Loans collectively evaluated for impairment 122,275 419,464 118,796 49,513 19,564 35,008 764,620 Ending Balance $ 125,177 $ 420,106 $ 123,626 $ 51,064 $ 20,124 $ 35,397 $ 775,494

MORTGAGE OPERATIONS

MORTGAGE OPERATIONS	9 Months Ended
	Sep. 30, 2019
MORTGAGE OPERATIONS [Abstract]
MORTGAGE OPERATIONS	5. 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, 2019 for cash proceeds equal to the fair value of the loans. The Company serviced real estate mortgage loans for others totaling $204,128,000 and $211,845,000 at September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Constant prepayment rate 12.73 % 8.58 % Discount rate 10.01 % 10.01 % Weighted average life (years) 5.31 6.79 The following table summarizes the Company’s mortgage servicing rights assets as of September 30, 2019 and December 31, 2018. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2018 Additions Reductions September 30, 2019 Mortgage servicing rights $ 1,579 $ 99 $ (218 ) $ 1,460 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,579 $ 99 $ (218 ) $ 1,460 At September 30, 2019 and December 31, 2018, the estimated fair market value of the Company’s mortgage servicing rights asset was $1,509,000 and $2,091,000, respectively. The Company received contractually specified servicing fees of $129,000 and $136,000 for the three months ended September 30, 2019 and September 30, 2018, respectively. The Company received contractually specified servicing fees of $393,000 and $412,000 for the nine months ended September 30, 2019 and September 30, 2018, 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, 2019
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	6. 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, 2019: (in thousands) September 30, 2019 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 $ 32,173 $ 32,173 $ — $ — Securities of U.S. government agencies and corporations 59,449 — 59,449 — Obligations of states and political subdivisions 26,285 — 26,285 — Collateralized mortgage obligations 71,887 — 71,887 — Mortgage-backed securities 135,516 — 135,516 — Total investments at fair value $ 325,310 $ 32,173 $ 293,137 $ — 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, 2018: (in thousands) December 31, 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 $ 50,682 $ 50,682 $ — $ — Securities of U.S. government agencies and corporations 42,076 — 42,076 — Obligations of states and political subdivisions 19,168 — 19,168 — Collateralized mortgage obligations 63,799 — 63,799 — Mortgage-backed securities 138,912 — 138,912 — Total investments at fair value $ 314,637 $ 50,682 $ 263,955 $ — 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, 2019 and December 31, 2018: (in thousands) September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 103 $ — $ — $ 103 Other real estate owned 784 — — 784 Total assets at fair value $ 887 $ — $ — $ 887 (in thousands) December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 300 $ — $ — $ 300 Other real estate owned 1,092 — — 1,092 Total assets at fair value $ 1,392 $ — $ — $ 1,392 There were no liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2019 and December 31, 2018. Key methods and assumptions used in measuring the fair value of impaired loans and other real estate owned as of September 30, 2019 and December 31, 2018 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 generally ranging from 6% to 10%, or the amount and timing of cash flows based on the loan's effective interest rate. Other real estate owned Collateral External appraised values, management assumptions regarding market trends or other relevant factors, selling costs generally ranging from 6% to 10%. The following section describes the valuation methodologies used for assets and liabilities 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. 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 the present value of expected 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. Those impaired loans not requiring charge-off or specific allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2019 and December 31, 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 a charge-off is recorded 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 given the valuation includes significant unobservable assumptions. Other Real Estate Owned Other real estate assets (“OREO”) acquired through, or in lieu of, foreclosure are held-for-sale and are initially recorded at the lower of cost or fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan losses. Appraisals or evaluations are then done periodically thereafter charging any additional write-downs or valuation allowances to the appropriate expense accounts. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. OREO is classified within Level 3 of the hierarchy given the valuation includes significant unobservable assumptions. Disclosures about Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2019 and December 31, 2018 were approximately as follows: (in thousands) September 30, 2019 December 31, 2018 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 136,093 $ 136,093 $ 116,032 $ 116,032 Certificates of deposit 2 14,945 15,247 7,595 7,573 Stock in Federal Home Loan Bank and other equity securities 3 6,574 6,574 6,019 6,019 Loans receivable: Net loans 3 755,004 711,483 763,393 726,179 Loans held-for-sale 2 3,506 3,573 2,295 2,345 Interest receivable 2 4,490 4,490 4,158 4,158 Mortgage servicing rights 3 1,460 1,509 1,579 2,091 Financial liabilities: Deposits 3 1,138,034 1,023,011 1,124,612 966,464 Interest payable 2 109 109 74 74 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument and expected exit prices. 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, 2019
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	7. 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, 2019 December 31, 2018 Undisbursed loan commitments $ 192,502 $ 201,983 Standby letters of credit 1,269 2,974 Commitments to sell loans 4,571 570 $ 198,342 $ 205,527 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, 2019 and December 31, 2018, 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 $1,269,000 and $2,974,000 at September 30, 2019 and December 31, 2018, respectively. The Bank has experienced no draws on these letters of credit, resulting in no related liability included on its 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 $840,000 and $800,000 at September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018, 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 Company has not had to repurchase any loans due to deficiencies in underwriting or loan documentation. Management believes that any liabilities that may result from such recourse provisions are not significant.

STOCK PLANS

STOCK PLANS	9 Months Ended
	Sep. 30, 2019
STOCK PLANS [Abstract]
STOCK PLANS	8. On January 24, 2019, the Board of Directors of the Company declared a 5% stock dividend payable as of March 29, 2019. All stock options and restricted stock outstanding 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, 2019. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 405,137 $ 8.72 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 405,137 $ 8.72 $ 1,042,478 6.65 Exercisable (vested) at End of Period 224,595 $ 6.95 $ 945,508 5.21 The following table presents the activity related to stock options for the nine months ended September 30, 2019. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 329,160 $ 8.23 Granted 77,666 $ 10.86 Expired — $ — Cancelled / Forfeited (1,689 ) 12.41 Exercised — — Options outstanding at End of Period 405,137 $ 8.72 $ 1,042,478 6.65 Exercisable (vested) at End of Period 224,595 $ 6.95 $ 945,508 5.21 The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2019 was $1.82 per share. There were no options exercised during the nine months ended September 30, 2019. The intrinsic value of options exercised was $81,000 during the nine months ended September 30, 2018. The fair value of awards vested was $141,000 and $114,000 during the nine months ended September 30, 2019 and September 30, 2018, respectively. As of September 30, 2019, there was $289,000 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 2.39 years. There was $38,000 and $111,000 of recognized compensation cost related to stock options granted for the three and nine months ended September 30, 2019, respectively. A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2019 is presented below: Three Months Ended September 30, 2019* Nine Months Ended September 30, 2019 Risk Free Interest Rate — 2.47 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 11.86 % * There were no stock options granted during the three months ended September 30, 2019. The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2019. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 124,762 $ 10.18 Granted 2,000 $ 11.31 Cancelled / Forfeited — $ — Exercised / Released / Vested — — Non-vested restriced stock outstanding at End of Period 126,762 $ 10.20 $ 1,400,720 2.77 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2019. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 118,391 $ 8.94 Granted 44,262 $ 10.88 Cancelled / Forfeited (1,969 ) $ 11.10 Exercised / Released / Vested (33,922 ) 6.64 Non-vested restricted stock outstanding at End of Period 126,762 $ 10.20 $ 1,400,720 2.77 The weighted average fair value of restricted stock granted during the nine months ended September 30, 2019 was $10.88 per share. As of September 30, 2019, there was $720,000 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 2.77 years. There was $80,000 and $230,000 of recognized compensation cost related to restricted stock awards for the three and nine months ended September 30, 2019, respectively. The Company has an Employee Stock Purchase Plan (“ESPP”). There are 295,277 shares authorized for issuance under the ESPP. The total number of shares authorized has been adjusted to give retroactive effect to stock dividends and stock splits, including the 5% stock dividend declared on January 24, 2019, payable March 29, 2019 to shareholders of record as of February 28, 2019. 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, 2018 to November 23, 2019. 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, 2019, there was $6,000 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 $6,000 and $19,000 of recognized compensation cost related to ESPP issuances for the three and nine months ended September 30, 2019, respectively. The weighted average fair value at issuance date during the nine months ended September 30, 2019 was $2.57 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2019 is presented below. Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Risk Free Interest Rate 2.67 % 2.67 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 8.47 % 8.47 %

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS	9 Months Ended
	Sep. 30, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS	9. The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2019. (in thousands) Unrealized Gains (losses) on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2019 $ 935 $ (1,198 ) $ 29 $ (234 ) Current period other comprehensive income 762 — — 762 Balance as of September 30, 2019 $ 1,697 $ (1,198 ) $ 29 $ 528 The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019. (in thousands) Unrealized Gains (losses) on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2018 $ (3,867 ) $ (1,198 ) $ 29 $ (5,036 ) Current period other comprehensive income 5,564 — — 5,564 Balance as of September 30, 2019 $ 1,697 $ (1,198 ) $ 29 $ 528 The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2018. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2018 $ (5,418 ) $ (1,403 ) $ 3 $ (6,818 ) Current period other comprehensive 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 on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2017 $ (2,997 ) $ (1,403 ) $ 3 $ (4,397 ) Current period other comprehensive loss (2,990 ) — — (2,990 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 )

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2019
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
OUTSTANDING SHARES AND EARNINGS PER SHARE	10. On January 24, 2019, the Board of Directors of the Company declared a 5% stock dividend payable March 29, 2019 to shareholders of record as of February 28, 2019. 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, 2019 and 2018 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income $ 3,754 $ 3,467 $ 11,145 $ 9,203 Weighted average common shares outstanding 12,167,957 12,127,378 12,159,205 12,122,252 Basic EPS $ 0.31 $ 0.29 $ 0.92 $ 0.76 Diluted earnings per share: Net income $ 3,754 $ 3,467 $ 11,145 $ 9,203 Weighted average common shares outstanding 12,167,957 12,127,378 12,159,205 12,122,252 Effect of dilutive shares 150,056 179,698 146,810 173,104 Adjusted weighted average common shares outstanding 12,318,013 12,307,076 12,306,015 12,295,356 Diluted EPS $ 0.30 $ 0.28 $ 0.91 $ 0.75 Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounting to 215,415 shares and 73,361 shares for the three months ended September 30, 2019 and 2018, respectively. Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounting to 215,415 shares and 95,147 shares for the nine months ended September 30, 2019 and 2018, respectively.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
LEASES [Abstract]
LEASES	11. The Company adopted ASU 2016-02, Leases (Topic 842) The Bank leases nine branch and administrative locations. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, the Bank combines lease and nonlease components. As of September 30, 2019, all of the Bank’s leases are operating leases. Most leases include options to renew, with renewal terms that can extend the lease term from 3 to 10 years. The exercise of lease renewal options is at the Bank’s sole discretion. Most leases are currently in the extension period. For the remaining leases with options to renew, the Bank has not included the extended lease terms in the calculation of lease liabilities as the options are not reasonably certain of being exercised. Certain lease agreements include rental payments that are adjusted periodically for inflation. The Bank's lease agreements do not contain any residual value guarantees or restrictive covenants. The Bank uses its FHLB advance fixed rates, which are the Bank’s incremental borrowing rates for secured borrowings, as the discount rates to calculate lease liabilities. As of September 30, 2019, the Company had right-of use assets and lease liabilities totaling $7,224,000 and $7,663,000, respectively. For the nine months ended September 30, 2019, the Company recognized lease expense totaling $724,000, which includes expenses related to short-term leases totaling $86,000 and a reduction of $62,000 for the recognition of deferred gain on sale-leaseback. Lease expense is included in Occupancy and equipment expense on the Condensed Consolidated Statements of Income. The table below summarizes the maturity of remaining lease liabilities at September 30, 2019: (in thousands) September 30, 2019 2019 $ 219 2020 1,116 2021 1,118 2022 1,064 2023 1,005 After 2023 3,991 Total lease payments 8,513 Less: interest (850 ) Present value of lease liabilities $ 7,663 The following table presents supplemental cash flow information related to leases for the three and nine months ended September 30, 2019: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 219 $ 653 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,410 $ 7,827 The following table presents the weighted average operating lease term and discount rate at September 30, 2019: September 30, 2019 Weighted-average remaining lease term - operating leases, in years 8.19 Weighted-average discount rate - operating leases 2.53 %

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2019
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, 2018 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, 2019
ACCOUNTING POLICIES [Abstract]
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Leases (Topic 842): Targeted Improvements. Leases.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements: In March 2019, FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. Leases. In November 2018, FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In April 2019, FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. In May 2019, FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2019
INVESTMENT SECURITIES [Abstract]
Amortized Cost, Unrealized Gains and Losses and Estimated Fair Values of Investments in Debt and Other Securities	The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2019 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 31,519 $ 671 $ (17 ) $ 32,173 Securities of U.S. government agencies and corporations 58,967 537 (55 ) 59,449 Obligations of states and political subdivisions 25,439 860 (14 ) 26,285 Collateralized mortgage obligations 71,755 431 (299 ) 71,887 Mortgage-backed securities 135,248 903 (635 ) 135,516 Total debt securities $ 322,928 $ 3,402 $ (1,020 ) $ 325,310 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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 $ 50,825 $ 14 $ (157 ) $ 50,682 Securities of U.S. government agencies and corporations 42,215 89 (228 ) 42,076 Obligations of states and political subdivisions 19,110 181 (123 ) 19,168 Collateralized mortgage obligations 65,615 34 (1,850 ) 63,799 Mortgage-backed securities 142,297 147 (3,532 ) 138,912 Total debt securities $ 320,062 $ 465 $ (5,890 ) $ 314,637
Amortized Cost and Estimated Fair Value of Debt and Other Securities by Contractual and Expected Maturity	The amortized cost and estimated market value of debt and other securities at September 30, 2019, 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 $ 40,108 $ 40,216 Due after one year through five years 54,956 55,999 Due after five years through ten years 12,379 12,907 Due after ten years 8,482 8,785 Subtotal 115,925 117,907 MBS & CMO 207,003 207,403 Total $ 322,928 $ 325,310
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, 2019, 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 $ — $ — $ 4,009 $ (17 ) $ 4,009 $ (17 ) Securities of U.S. government agencies and corporations 9,228 (31 ) 10,081 (24 ) 19,309 (55 ) Obligations of states and political subdivisions 1,611 (9 ) 860 (5 ) 2,471 (14 ) Collateralized Mortgage obligations 10,125 (15 ) 22,571 (284 ) 32,696 (299 ) Mortgage-backed securities 12,533 (37 ) 59,056 (598 ) 71,589 (635 ) Total $ 33,497 $ (92 ) $ 96,577 $ (928 ) $ 130,074 $ (1,020 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2018, 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 $ 37,805 $ (67 ) $ 5,951 $ (90 ) $ 43,756 $ (157 ) Securities of U.S. government agencies and corporations 16,959 (39 ) 13,540 (189 ) 30,499 (228 ) Obligations of states and political subdivisions 847 (2 ) 9,134 (121 ) 9,981 (123 ) Collateralized Mortgage obligations 2,217 (6 ) 53,217 (1,844 ) 55,434 (1,850 ) Mortgage-backed securities 16,358 (123 ) 105,361 (3,409 ) 121,719 (3,532 ) Total $ 74,186 $ (237 ) $ 187,203 $ (5,653 ) $ 261,389 $ (5,890 )

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2019
LOANS [Abstract]
Loan Portfolio, by Loan Class	The composition of the Company’s loan portfolio, by loan class, as of September 30, 2019 and December 31, 2018 was as follows: ($ in thousands) September 30, 2019 December 31, 2018 Commercial $ 104,913 $ 125,177 Commercial Real Estate 433,698 420,106 Agriculture 118,516 123,626 Residential Mortgage 60,840 51,064 Residential Construction 20,214 20,124 Consumer 28,372 35,397 766,553 775,494 Allowance for loan losses (12,287 ) (12,822 ) Net deferred origination fees and costs 738 721 Loans, net $ 755,004 $ 763,393
Loans by Delinquency and Non-Accrual Status	The Company’s loans by delinquency and non-accrual status, as of September 30, 2019 and December 31, 2018, 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, 2019 Commercial $ 102,706 $ 1,842 $ 84 $ — $ 281 $ 104,913 Commercial Real Estate 432,948 — 406 — 344 433,698 Agriculture 118,516 — — — — 118,516 Residential Mortgage 60,666 — — — 174 60,840 Residential Construction 20,214 — — — — 20,214 Consumer 27,918 16 — — 438 28,372 Total $ 762,968 $ 1,858 $ 490 $ — $ 1,237 $ 766,553 December 31, 2018 Commercial $ 123,765 $ 662 $ — $ — $ 750 $ 125,177 Commercial Real Estate 419,725 — — — 381 420,106 Agriculture 118,639 157 — — 4,830 123,626 Residential Mortgage 50,964 — — — 100 51,064 Residential Construction 20,124 — — — — 20,124 Consumer 35,054 114 38 — 191 35,397 Total $ 768,271 $ 933 $ 38 $ — $ 6,252 $ 775,494
Impaired Loans, Segregated by Loan Class	Impaired loans, segregated by loan class, as of September 30, 2019 and December 31, 2018 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, 2019 Commercial $ 2,619 $ 281 $ 1,568 $ 1,849 $ 30 Commercial Real Estate 747 344 252 596 20 Agriculture — — — — — Residential Mortgage 1,162 174 919 1,093 175 Residential Construction 732 — 700 700 53 Consumer 525 438 82 520 1 Total $ 5,785 $ 1,237 $ 3,521 $ 4,758 $ 279 December 31, 2018 Commercial $ 3,591 $ 300 $ 2,602 $ 2,902 $ 496 Commercial Real Estate 780 381 261 642 21 Agriculture 4,830 4,830 — 4,830 — Residential Mortgage 1,669 100 1,451 1,551 287 Residential Construction 560 — 560 560 49 Consumer 403 191 198 389 2 Total $ 11,833 $ 5,802 $ 5,072 $ 10,874 $ 855
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, 2019 and September 30, 2018 was as follows: ($ in thousands) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,098 $ 28 $ 2,918 $ 43 Commercial Real Estate 600 4 1,923 4 Agriculture — — — — Residential Mortgage 1,054 29 1,879 15 Residential Construction 705 9 606 2 Consumer 361 1 470 3 Total $ 4,818 $ 71 $ 7,796 $ 67 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2019 and September 30, 2018 was as follows: ($ in thousands) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,318 $ 102 $ 3,007 $ 134 Commercial Real Estate 617 12 1,941 11 Agriculture 2,402 240 — — Residential Mortgage 1,253 63 1,905 45 Residential Construction 678 26 625 21 Consumer 374 23 451 9 Total $ 7,642 $ 466 $ 7,929 $ 220
Loans Modified as TDR's	Loans modified as TDRs during the three months ended September 30, 2018 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 Loans modified as TDRs during the nine months ended September 30, 2019 were as follows: ($ in thousands) Nine Months Ended September 30, 2019 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Residential Construction 2 $ 189 $ 189 Total 2 $ 189 $ 189 Loans modified as TDRs during the nine months ended September 30, 2018 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
Risk Ratings by Loan Class	The following table presents the risk ratings by loan class as of September 30, 2019 and December 31, 2018: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2019 Commercial $ 103,672 $ 201 $ 1,040 $ — $ — $ 104,913 Commercial Real Estate 408,716 18,567 6,415 — — 433,698 Agriculture 108,117 8,040 2,359 — — 118,516 Residential Mortgage 60,219 — 621 — — 60,840 Residential Construction 20,214 — — — — 20,214 Consumer 27,312 500 560 — — 28,372 Total $ 728,250 $ 27,308 $ 10,995 $ — $ — $ 766,553 December 31, 2018 Commercial $ 121,848 $ 66 $ 2,813 $ 450 $ — $ 125,177 Commercial Real Estate 395,436 14,272 10,398 — — 420,106 Agriculture 104,809 11,750 7,067 — — 123,626 Residential Mortgage 50,149 — 915 — — 51,064 Residential Construction 19,372 752 — — — 20,124 Consumer 34,272 590 535 — — 35,397 Total $ 725,886 $ 27,430 $ 21,728 $ 450 $ — $ 775,494
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, 2019. Three months ended September 30, 2019 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2019 $ 2,372 $ 6,429 $ 1,913 $ 436 $ 196 $ 263 $ 1,229 $ 12,838 Provision for loan losses 384 154 280 17 52 (6 ) (881 ) — Charge-offs (446 ) — (98 ) — — (14 ) — (558 ) Recoveries 2 — — — — 5 — 7 Net (charge-offs) recoveries (444 ) — (98 ) — — (9 ) — (551 ) Balance as of September 30, 2019 $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 Nine months ended September 30, 2019 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2018 $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 Provision for loan losses (375 ) 693 561 (262 ) (91 ) (12 ) (514 ) — Charge-offs (596 ) — (98 ) — — (29 ) — (723 ) Recoveries 85 — — 72 21 10 — 188 Net (charge-offs) recoveries (511 ) — (98 ) 72 21 (19 ) — (535 ) Balance as of September 30, 2019 $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 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, 2019. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 30 $ 20 $ — $ 175 $ 53 $ 1 $ — $ 279 Loans collectively evaluated for impairment 2,282 6,563 2,095 278 195 247 348 12,008 Ending Balance $ 2,312 $ 6,583 $ 2,095 $ 453 $ 248 $ 248 $ 348 $ 12,287 The following table details 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2018. Year ended December 31, 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 1,036 572 85 (19 ) (173 ) (92 ) 691 2,100 Charge-offs (509 ) (142 ) — — — (34 ) — (685 ) Recoveries 46 — — 34 131 63 — 274 Net (charge-offs) recoveries (463 ) (142 ) — 34 131 29 — (411 ) Ending Balance $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 Period-end amount allocated to: Loans individually evaluated for impairment $ 496 $ 21 $ — $ 287 $ 49 $ 2 $ — $ 855 Loans collectively evaluated for impairment 2,702 5,869 1,632 356 269 277 862 11,967 Balance as of December 31, 2018 $ 3,198 $ 5,890 $ 1,632 $ 643 $ 318 $ 279 $ 862 $ 12,822 The Company’s investment in loans as of September 30, 2019, September 30, 2018, and December 31, 2018 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, 2019 Loans individually evaluated for impairment $ 1,849 $ 596 $ — $ 1,093 $ 700 $ 520 $ 4,758 Loans collectively evaluated for impairment 103,064 433,102 118,516 59,747 19,514 27,852 761,795 Ending Balance $ 104,913 $ 433,698 $ 118,516 $ 60,840 $ 20,214 $ 28,372 $ 766,553 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 December 31, 2018 Loans individually evaluated for impairment $ 2,902 $ 642 $ 4,830 $ 1,551 $ 560 $ 389 $ 10,874 Loans collectively evaluated for impairment 122,275 419,464 118,796 49,513 19,564 35,008 764,620 Ending Balance $ 125,177 $ 420,106 $ 123,626 $ 51,064 $ 20,124 $ 35,397 $ 775,494

MORTGAGE OPERATIONS (Tables)

MORTGAGE OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Constant prepayment rate 12.73 % 8.58 % Discount rate 10.01 % 10.01 % Weighted average life (years) 5.31 6.79
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, 2018 Additions Reductions September 30, 2019 Mortgage servicing rights $ 1,579 $ 99 $ (218 ) $ 1,460 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,579 $ 99 $ (218 ) $ 1,460

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019: (in thousands) September 30, 2019 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 $ 32,173 $ 32,173 $ — $ — Securities of U.S. government agencies and corporations 59,449 — 59,449 — Obligations of states and political subdivisions 26,285 — 26,285 — Collateralized mortgage obligations 71,887 — 71,887 — Mortgage-backed securities 135,516 — 135,516 — Total investments at fair value $ 325,310 $ 32,173 $ 293,137 $ — The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: (in thousands) December 31, 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 $ 50,682 $ 50,682 $ — $ — Securities of U.S. government agencies and corporations 42,076 — 42,076 — Obligations of states and political subdivisions 19,168 — 19,168 — Collateralized mortgage obligations 63,799 — 63,799 — Mortgage-backed securities 138,912 — 138,912 — Total investments at fair value $ 314,637 $ 50,682 $ 263,955 $ —
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, 2019 and December 31, 2018: (in thousands) September 30, 2019 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 103 $ — $ — $ 103 Other real estate owned 784 — — 784 Total assets at fair value $ 887 $ — $ — $ 887 (in thousands) December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 300 $ — $ — $ 300 Other real estate owned 1,092 — — 1,092 Total assets at fair value $ 1,392 $ — $ — $ 1,392
Key Methods and Assumptions Used in Measuring Fair Value of Impaired Loans and Other Real Estate Owned	Key methods and assumptions used in measuring the fair value of impaired loans and other real estate owned as of September 30, 2019 and December 31, 2018 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 generally ranging from 6% to 10%, or the amount and timing of cash flows based on the loan's effective interest rate. Other real estate owned Collateral External appraised values, management assumptions regarding market trends or other relevant factors, selling costs generally ranging from 6% to 10%.
Estimated Fair Value of Financial Instruments	The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2019 and December 31, 2018 were approximately as follows: (in thousands) September 30, 2019 December 31, 2018 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 136,093 $ 136,093 $ 116,032 $ 116,032 Certificates of deposit 2 14,945 15,247 7,595 7,573 Stock in Federal Home Loan Bank and other equity securities 3 6,574 6,574 6,019 6,019 Loans receivable: Net loans 3 755,004 711,483 763,393 726,179 Loans held-for-sale 2 3,506 3,573 2,295 2,345 Interest receivable 2 4,490 4,490 4,158 4,158 Mortgage servicing rights 3 1,460 1,509 1,579 2,091 Financial liabilities: Deposits 3 1,138,034 1,023,011 1,124,612 966,464 Interest payable 2 109 109 74 74

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 December 31, 2018 Undisbursed loan commitments $ 192,502 $ 201,983 Standby letters of credit 1,269 2,974 Commitments to sell loans 4,571 570 $ 198,342 $ 205,527

STOCK PLANS (Tables)

STOCK PLANS (Tables)	9 Months Ended
	Sep. 30, 2019
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended September 30, 2019. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 405,137 $ 8.72 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 405,137 $ 8.72 $ 1,042,478 6.65 Exercisable (vested) at End of Period 224,595 $ 6.95 $ 945,508 5.21 The following table presents the activity related to stock options for the nine months ended September 30, 2019. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 329,160 $ 8.23 Granted 77,666 $ 10.86 Expired — $ — Cancelled / Forfeited (1,689 ) 12.41 Exercised — — Options outstanding at End of Period 405,137 $ 8.72 $ 1,042,478 6.65 Exercisable (vested) at End of Period 224,595 $ 6.95 $ 945,508 5.21
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, 2019 is presented below: Three Months Ended September 30, 2019* Nine Months Ended September 30, 2019 Risk Free Interest Rate — 2.47 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 11.86 % * There were no stock options granted during the three months ended September 30, 2019.
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2019. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 124,762 $ 10.18 Granted 2,000 $ 11.31 Cancelled / Forfeited — $ — Exercised / Released / Vested — — Non-vested restriced stock outstanding at End of Period 126,762 $ 10.20 $ 1,400,720 2.77 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2019. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 118,391 $ 8.94 Granted 44,262 $ 10.88 Cancelled / Forfeited (1,969 ) $ 11.10 Exercised / Released / Vested (33,922 ) 6.64 Non-vested restricted stock outstanding at End of Period 126,762 $ 10.20 $ 1,400,720 2.77
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, 2019 is presented below. Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Risk Free Interest Rate 2.67 % 2.67 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 8.47 % 8.47 %

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019. (in thousands) Unrealized Gains (losses) on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2019 $ 935 $ (1,198 ) $ 29 $ (234 ) Current period other comprehensive income 762 — — 762 Balance as of September 30, 2019 $ 1,697 $ (1,198 ) $ 29 $ 528 The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019. (in thousands) Unrealized Gains (losses) on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2018 $ (3,867 ) $ (1,198 ) $ 29 $ (5,036 ) Current period other comprehensive income 5,564 — — 5,564 Balance as of September 30, 2019 $ 1,697 $ (1,198 ) $ 29 $ 528 The following table details activity in accumulated other comprehensive income (loss) for the three months ended September 30, 2018. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2018 $ (5,418 ) $ (1,403 ) $ 3 $ (6,818 ) Current period other comprehensive 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 on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2017 $ (2,997 ) $ (1,403 ) $ 3 $ (4,397 ) Current period other comprehensive loss (2,990 ) — — (2,990 ) Balance as of September 30, 2018 $ (5,987 ) $ (1,403 ) $ 3 $ (7,387 )

OUTSTANDING SHARES AND EARNIN_2

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 and 2018 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income $ 3,754 $ 3,467 $ 11,145 $ 9,203 Weighted average common shares outstanding 12,167,957 12,127,378 12,159,205 12,122,252 Basic EPS $ 0.31 $ 0.29 $ 0.92 $ 0.76 Diluted earnings per share: Net income $ 3,754 $ 3,467 $ 11,145 $ 9,203 Weighted average common shares outstanding 12,167,957 12,127,378 12,159,205 12,122,252 Effect of dilutive shares 150,056 179,698 146,810 173,104 Adjusted weighted average common shares outstanding 12,318,013 12,307,076 12,306,015 12,295,356 Diluted EPS $ 0.30 $ 0.28 $ 0.91 $ 0.75

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
LEASES [Abstract]
Maturities of Remaining Lease Liabilities	The table below summarizes the maturity of remaining lease liabilities at September 30, 2019: (in thousands) September 30, 2019 2019 $ 219 2020 1,116 2021 1,118 2022 1,064 2023 1,005 After 2023 3,991 Total lease payments 8,513 Less: interest (850 ) Present value of lease liabilities $ 7,663
Supplemental Cash Flow Information Related to Leases	The following table presents supplemental cash flow information related to leases for the three and nine months ended September 30, 2019: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 219 $ 653 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,410 $ 7,827
Weighted Average Operating Lease Term and Discount Rate	The following table presents the weighted average operating lease term and discount rate at September 30, 2019: September 30, 2019 Weighted-average remaining lease term - operating leases, in years 8.19 Weighted-average discount rate - operating leases 2.53 %

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investment securities available-for-sale [Abstract]
Amortized cost	$ 322,928		$ 322,928		$ 320,062
Unrealized gains	3,402		3,402		465
Unrealized losses	(1,020)		(1,020)		(5,890)
Estimated fair value	325,310		325,310		314,637
Proceeds from sales, calls and maturities of available-for-sale securities	10,974	$ 1,810	43,657	$ 16,390
Gross realized gains from sales/calls of available-for-sale securities	0	0	47	0
Gross realized losses from sales/calls of available-for-sale securities	0	$ 0	(53)	$ 0
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	31,519		31,519		50,825
Unrealized gains	671		671		14
Unrealized losses	(17)		(17)		(157)
Estimated fair value	32,173		32,173		50,682
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	58,967		58,967		42,215
Unrealized gains	537		537		89
Unrealized losses	(55)		(55)		(228)
Estimated fair value	59,449		59,449		42,076
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	25,439		25,439		19,110
Unrealized gains	860		860		181
Unrealized losses	(14)		(14)		(123)
Estimated fair value	26,285		26,285		19,168
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	71,755		71,755		65,615
Unrealized gains	431		431		34
Unrealized losses	(299)		(299)		(1,850)
Estimated fair value	71,887		71,887		63,799
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	135,248		135,248		142,297
Unrealized gains	903		903		147
Unrealized losses	(635)		(635)		(3,532)
Estimated fair value	$ 135,516		$ 135,516		$ 138,912

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual and Expected Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Maturity in years [Abstract]
Due in one year or less	$ 40,108
Due after one year through five years	54,956
Due after five years through ten years	12,379
Due after ten years	8,482
Subtotal	115,925
MBS & CMO	207,003
Amortized cost	322,928	$ 320,062
Maturity in years [Abstract]
Due in one year or less	40,216
Due after one year through five years	55,999
Due after five years through ten years	12,907
Due after ten years	8,785
Subtotal	117,907
MBS & CMO	207,403
Estimated fair value	$ 325,310	$ 314,637

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details) $ in Thousands	Sep. 30, 2019USD ($)Security	Dec. 31, 2018USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 33,497	$ 74,186
Less than 12 months, unrealized losses	(92)	(237)
12 months or more, fair value	96,577	187,203
12 Months or more, unrealized losses	(928)	(5,653)
Total fair value	130,074	261,389
Total unrealized losses	$ (1,020)	(5,890)
Investment securities in unrealized loss position less than 12 months | Security	31
Investment securities in unrealized loss position more than 12 months | Security	107
Investment securities pledged as collateral	$ 38,846	36,781
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	0	37,805
Less than 12 months, unrealized losses	0	(67)
12 months or more, fair value	4,009	5,951
12 Months or more, unrealized losses	(17)	(90)
Total fair value	4,009	43,756
Total unrealized losses	(17)	(157)
Securities of U.S. Government Agencies and Corporations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	9,228	16,959
Less than 12 months, unrealized losses	(31)	(39)
12 months or more, fair value	10,081	13,540
12 Months or more, unrealized losses	(24)	(189)
Total fair value	19,309	30,499
Total unrealized losses	(55)	(228)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	1,611	847
Less than 12 months, unrealized losses	(9)	(2)
12 months or more, fair value	860	9,134
12 Months or more, unrealized losses	(5)	(121)
Total fair value	2,471	9,981
Total unrealized losses	(14)	(123)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	10,125	2,217
Less than 12 months, unrealized losses	(15)	(6)
12 months or more, fair value	22,571	53,217
12 Months or more, unrealized losses	(284)	(1,844)
Total fair value	32,696	55,434
Total unrealized losses	(299)	(1,850)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	12,533	16,358
Less than 12 months, unrealized losses	(37)	(123)
12 months or more, fair value	59,056	105,361
12 Months or more, unrealized losses	(598)	(3,409)
Total fair value	71,589	121,719
Total unrealized losses	$ (635)	$ (3,532)

LOANS (Details)

LOANS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)Category	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Loan Portfolio by Loan Class [Abstract]
Loans	$ 766,553		$ 775,494	$ 774,144
Allowance for loan losses	(12,287)	$ (12,838)	(12,822)	(12,339)	$ (11,807)	$ (11,133)
Net deferred origination fees and costs	738		721
Loans, net	$ 755,004		763,393
Minimum [Member]
Loan Portfolio by Loan Class [Abstract]
Delinquent loans revaluation period	3 months
Maximum [Member]
Loan Portfolio by Loan Class [Abstract]
Delinquent loans revaluation period	12 months
Commercial [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 104,913		125,177	129,381
Allowance for loan losses	$ (2,312)	(2,372)	(3,198)	(2,766)	(2,764)	(2,625)
Loan portfolio by segment	14.00%
Commercial Real Estate [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 433,698		420,106	414,311
Allowance for loan losses	$ (6,583)	(6,429)	(5,890)	(5,671)	(5,384)	(5,460)
Categories of loans | Category	2
Loan portfolio by segment	57.00%
Agriculture [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 118,516		123,626	123,753
Allowance for loan losses	$ (2,095)	(1,913)	(1,632)	(1,688)	(1,535)	(1,547)
Loan portfolio by segment	15.00%
Residential Mortgage [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 60,840		51,064	47,641
Allowance for loan losses	$ (453)	(436)	(643)	(626)	(619)	(628)
Loan portfolio by segment	8.00%
Residential Construction [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 20,214		20,124	23,039
Allowance for loan losses	$ (248)	(196)	(318)	(357)	(361)	(360)
Loan portfolio by segment	2.00%
Consumer [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 28,372		35,397	36,019
Allowance for loan losses	$ (248)	$ (263)	$ (279)	$ (283)	$ (306)	$ (342)
Loan portfolio by segment	4.00%

LOANS, Non-accrual and Past Due

LOANS, Non-accrual and Past Due Loans (Details) $ in Thousands	Sep. 30, 2019USD ($)Loan	Dec. 31, 2018USD ($)Loan	Sep. 30, 2018USD ($)
Non-accrual and Past Due Loans [Abstract]
Current & accruing	$ 762,968	$ 768,271
Non-accrual	1,237	6,252
Total	766,553	775,494	$ 774,144
Commitments to lend additional funds to borrower whose loan was on non-accrual status	1	261
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	1,858	933
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	490	38
90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Commercial [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	102,706	123,765
Non-accrual	281	750
Total	$ 104,913	$ 125,177	129,381
Number of nonaccrual loans | Loan	2	2
Commercial [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 1,842	$ 662
Commercial [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	84	0
Commercial [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	432,948	419,725
Non-accrual	344	381
Total	$ 433,698	$ 420,106	414,311
Number of nonaccrual loans | Loan	2	2
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 0	$ 0
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	406	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	118,516	118,639
Non-accrual	0	4,830
Total	118,516	$ 123,626	123,753
Number of nonaccrual loans | Loan		5
Agriculture [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	$ 157
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	60,666	50,964
Non-accrual	174	100
Total	$ 60,840	$ 51,064	47,641
Number of nonaccrual loans | Loan	1	2
Residential Mortgage [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 0	$ 0
Residential Mortgage [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
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	20,214	20,124
Non-accrual	0	0
Total	20,214	20,124	23,039
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	27,918	35,054
Non-accrual	438	191
Total	$ 28,372	$ 35,397	$ 36,019
Number of nonaccrual loans | Loan	5	1
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 16	$ 114
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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Impaired loans [Abstract]
Unpaid contractual principal balance	$ 5,785		$ 5,785		$ 11,833
Recorded investment with no allowance	1,237		1,237		5,802
Recorded investment with allowance	3,521		3,521		5,072
Total recorded investment	4,758		4,758		10,874
Related allowance	279		279		855
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	4,818	$ 7,796	7,642	$ 7,929
Interest income recognized	71	67	466	220
Risk Rating of 5 (Special Mention) or Worse [Member]
Impaired loans [Abstract]
Threshold aggregate exposure for loan to be considered impaired	500		500
Commercial [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	2,619		2,619		3,591
Recorded investment with no allowance	281		281		300
Recorded investment with allowance	1,568		1,568		2,602
Total recorded investment	1,849		1,849		2,902
Related allowance	30		30		496
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	2,098	2,918	2,318	3,007
Interest income recognized	28	43	102	134
Commercial Real Estate [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	747		747		780
Recorded investment with no allowance	344		344		381
Recorded investment with allowance	252		252		261
Total recorded investment	596		596		642
Related allowance	20		20		21
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	600	1,923	617	1,941
Interest income recognized	4	4	12	11
Agriculture [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	0		0		4,830
Recorded investment with no allowance	0		0		4,830
Recorded investment with allowance	0		0		0
Total recorded investment	0		0		4,830
Related allowance	0		0		0
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	0	0	2,402	0
Interest income recognized	0	0	240	0
Residential Mortgage [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	1,162		1,162		1,669
Recorded investment with no allowance	174		174		100
Recorded investment with allowance	919		919		1,451
Total recorded investment	1,093		1,093		1,551
Related allowance	175		175		287
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	1,054	1,879	1,253	1,905
Interest income recognized	29	15	63	45
Residential Construction [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	732		732		560
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	700		700		560
Total recorded investment	700		700		560
Related allowance	53		53		49
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	705	606	678	625
Interest income recognized	9	2	26	21
Consumer [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	525		525		403
Recorded investment with no allowance	438		438		191
Recorded investment with allowance	82		82		198
Total recorded investment	520		520		389
Related allowance	1		1		$ 2
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	361	470	374	451
Interest income recognized	$ 1	$ 3	$ 23	$ 9

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)LoanContract	Sep. 30, 2018USD ($)LoanContract	Sep. 30, 2019USD ($)LoanContract	Sep. 30, 2018USD ($)LoanContract	Dec. 31, 2018USD ($)
Troubled Debt Restructurings [Abstract]
Period of continuous payment for reclassification of nonaccrual loans to accruing status			6 months
TDR loans	$ 3,624		$ 3,624		$ 4,813
Specific reserves for TDR loans	279		279		405
TDR loans performing in compliance with modified terms	3,521		3,521		4,622
Commitments to advance existing TDR loans	$ 0		$ 0		$ 0
Loans Modified as TDR's [Abstract]
Number of contracts | Contract	0	1	2	1
Pre-modification outstanding recorded investment		$ 194	$ 189	$ 194
Post-modification outstanding recorded investment		$ 194	$ 189	$ 194
Number of TDR loans defaulted within 12 months of modification date | Loan	0	0	0	0
Residential Construction [Member]
Loans Modified as TDR's [Abstract]
Number of contracts | Contract			2
Pre-modification outstanding recorded investment			$ 189
Post-modification outstanding recorded investment			$ 189
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

LOANS, Financing Receivables by

LOANS, Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Risk Rating by Loan Class [Abstract]
Loans	$ 766,553	$ 775,494	$ 774,144
Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	728,250	725,886
Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	27,308	27,430
Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	10,995	21,728
Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	450
Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial [Member]
Risk Rating by Loan Class [Abstract]
Loans	104,913	125,177	129,381
Commercial [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	103,672	121,848
Commercial [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	201	66
Commercial [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	1,040	2,813
Commercial [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	450
Commercial [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial Real Estate [Member]
Risk Rating by Loan Class [Abstract]
Loans	433,698	420,106	414,311
Commercial Real Estate [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	408,716	395,436
Commercial Real Estate [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	18,567	14,272
Commercial Real Estate [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	6,415	10,398
Commercial Real Estate [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial Real Estate [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Agriculture [Member]
Risk Rating by Loan Class [Abstract]
Loans	118,516	123,626	123,753
Agriculture [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	108,117	104,809
Agriculture [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	8,040	11,750
Agriculture [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	2,359	7,067
Agriculture [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Agriculture [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Mortgage [Member]
Risk Rating by Loan Class [Abstract]
Loans	60,840	51,064	47,641
Residential Mortgage [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	60,219	50,149
Residential Mortgage [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Mortgage [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	621	915
Residential Mortgage [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Mortgage [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Construction [Member]
Risk Rating by Loan Class [Abstract]
Loans	20,214	20,124	23,039
Residential Construction [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	20,214	19,372
Residential Construction [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	752
Residential Construction [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Construction [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Residential Construction [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Consumer [Member]
Risk Rating by Loan Class [Abstract]
Loans	28,372	35,397	$ 36,019
Consumer [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	27,312	34,272
Consumer [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	500	590
Consumer [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	560	535
Consumer [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Consumer [Member] | Loss [Member]
Risk Rating 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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Allowance for credit losses [Roll Forward]
Beginning balance	$ 12,838	$ 11,807	$ 12,822	$ 11,133	$ 11,133
Provision for loan losses	0	525	0	1,575	2,100
Charge-offs	(558)	(8)	(723)	(494)	(685)
Recoveries	7	15	188	125	274
Net (charge-offs) recoveries	(551)	7	(535)	(369)	(411)
Ending balance	12,287	12,339	12,287	12,339	12,822
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	279	413	279	413	855
Loans collectively evaluated for impairment	12,008	11,926	12,008	11,926	11,967
Ending balance	12,287	12,339	12,287	12,339	12,822
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	4,758	7,096	4,758	7,096	10,874
Loans collectively evaluated for impairment	761,795	767,048	761,795	767,048	764,620
Ending balance	766,553	774,144	766,553	774,144	775,494
Commercial [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	2,372	2,764	3,198	2,625	2,625
Provision for loan losses	384	2	(375)	571	1,036
Charge-offs	(446)	0	(596)	(475)	(509)
Recoveries	2	0	85	45	46
Net (charge-offs) recoveries	(444)	0	(511)	(430)	(463)
Ending balance	2,312	2,766	2,312	2,766	3,198
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	30	41	30	41	496
Loans collectively evaluated for impairment	2,282	2,725	2,282	2,725	2,702
Ending balance	2,312	2,766	2,312	2,766	3,198
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,849	2,644	1,849	2,644	2,902
Loans collectively evaluated for impairment	103,064	126,737	103,064	126,737	122,275
Ending balance	104,913	129,381	104,913	129,381	125,177
Commercial Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	6,429	5,384	5,890	5,460	5,460
Provision for loan losses	154	287	693	211	572
Charge-offs	0	0	0	0	(142)
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	(142)
Ending balance	6,583	5,671	6,583	5,671	5,890
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	20	22	20	22	21
Loans collectively evaluated for impairment	6,563	5,649	6,563	5,649	5,869
Ending balance	6,583	5,671	6,583	5,671	5,890
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	596	1,900	596	1,900	642
Loans collectively evaluated for impairment	433,102	412,411	433,102	412,411	419,464
Ending balance	433,698	414,311	433,698	414,311	420,106
Agriculture [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,913	1,535	1,632	1,547	1,547
Provision for loan losses	280	153	561	141	85
Charge-offs	(98)	0	(98)	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	(98)	0	(98)	0	0
Ending balance	2,095	1,688	2,095	1,688	1,632
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	2,095	1,688	2,095	1,688	1,632
Ending balance	2,095	1,688	2,095	1,688	1,632
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	0	0	0	0	4,830
Loans collectively evaluated for impairment	118,516	123,753	118,516	123,753	118,796
Ending balance	118,516	123,753	118,516	123,753	123,626
Residential Mortgage [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	436	619	643	628	628
Provision for loan losses	17	1	(262)	(28)	(19)
Charge-offs	0	0	0	0	0
Recoveries	0	6	72	26	34
Net (charge-offs) recoveries	0	6	72	26	34
Ending balance	453	626	453	626	643
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	175	300	175	300	287
Loans collectively evaluated for impairment	278	326	278	326	356
Ending balance	453	626	453	626	643
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,093	1,566	1,093	1,566	1,551
Loans collectively evaluated for impairment	59,747	46,075	59,747	46,075	49,513
Ending balance	60,840	47,641	60,840	47,641	51,064
Residential Construction [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	196	361	318	360	360
Provision for loan losses	52	(6)	(91)	(7)	(173)
Charge-offs	0	0	0	0	0
Recoveries	0	2	21	4	131
Net (charge-offs) recoveries	0	2	21	4	131
Ending balance	248	357	248	357	318
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	53	48	53	48	49
Loans collectively evaluated for impairment	195	309	195	309	269
Ending balance	248	357	248	357	318
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	700	568	700	568	560
Loans collectively evaluated for impairment	19,514	22,471	19,514	22,471	19,564
Ending balance	20,214	23,039	20,214	23,039	20,124
Consumer [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	263	306	279	342	342
Provision for loan losses	(6)	(22)	(12)	(90)	(92)
Charge-offs	(14)	(8)	(29)	(19)	(34)
Recoveries	5	7	10	50	63
Net (charge-offs) recoveries	(9)	(1)	(19)	31	29
Ending balance	248	283	248	283	279
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	1	2	1	2	2
Loans collectively evaluated for impairment	247	281	247	281	277
Ending balance	248	283	248	283	279
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	520	418	520	418	389
Loans collectively evaluated for impairment	27,852	35,601	27,852	35,601	35,008
Ending balance	28,372	36,019	28,372	36,019	35,397
Unallocated [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,229	838	862	171	171
Provision for loan losses	(881)	110	(514)	777	691
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	348	948	348	948	862
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	348	948	348	948	862
Ending balance	$ 348	$ 948	$ 348	$ 948	$ 862

MORTGAGE OPERATIONS (Details)

MORTGAGE OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
MORTGAGE OPERATIONS [Abstract]
Real estate mortgage loans serviced	$ 204,128		$ 204,128		$ 211,845
Key assumptions used in measuring the fair value of mortgage servicing rights [Abstract]
Constant prepayment rate			12.73%		8.58%
Discount rate			10.01%		10.01%
Weighted average life			5 years 3 months 22 days		6 years 9 months 14 days
Mortgage servicing rights [Roll Forward]
Beginning balance			$ 1,579
Additions			99
Reductions			(218)
Ending balance	1,460		1,460		$ 1,579
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			1,579
Additions			99
Reductions			(218)
Ending balance	1,460		1,460
Fair value of mortgage servicing rights asset	1,509		1,509		$ 2,091
Contractually specified servicing fees	$ 129	$ 136	$ 393	$ 412

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 325,310	$ 314,637
Transfers between Levels [Abstract]
Transfers from Level 1 to Level 2	0		$ 0
Transfers from Level 2 to Level 1	0		$ 0
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	325,310	314,637
Liabilities Recorded at Fair Value [Abstract]
Liabilities	0	0
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	32,173	50,682
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	293,137	263,955
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	103	300
Other real estate owned	784	1,092
Total assets at fair value	887	1,392
Liabilities Recorded at Fair Value [Abstract]
Liabilities	0	0
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
Other real estate owned	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
Other real estate owned	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	103	300
Other real estate owned	784	1,092
Total assets at fair value	887	1,392
U.S. Treasury Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,173	50,682
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,173	50,682
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	32,173	50,682
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	59,449	42,076
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	59,449	42,076
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	59,449	42,076
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	26,285	19,168
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	26,285	19,168
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	26,285	19,168
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	71,887	63,799
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	71,887	63,799
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	71,887	63,799
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	135,516	138,912
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	135,516	138,912
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	135,516	138,912
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

FAIR VALUE MEASUREMENTS, Key Me

FAIR VALUE MEASUREMENTS, Key Methods and Assumptions Used (Details) - Selling Costs [Member]	Sep. 30, 2019	Dec. 31, 2018
Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Minimum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Impaired loans, measurement input	0.06	0.06
Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Maximum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Impaired loans, measurement input	0.1	0.1
Collateral [Member] | Minimum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Other real estate owned, measurement input	0.06	0.06
Collateral [Member] | Maximum [Member]
Key methods and assumptions used in measuring fair value of impaired loans [Abstract]
Other real estate owned, measurement input	0.1	0.1

FAIR VALUE MEASUREMENTS, Fair V

FAIR VALUE MEASUREMENTS, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans receivable [Abstract]
Mortgage servicing rights	$ 1,509	$ 2,091
Carrying Amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	136,093	116,032
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	14,945	7,595
Loans receivable [Abstract]
Loans held-for-sale	3,506	2,295
Interest receivable	4,490	4,158
Financial liabilities [Abstract]
Interest payable	109	74
Carrying Amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,574	6,019
Loans receivable [Abstract]
Net loans	755,004	763,393
Mortgage servicing rights	1,460	1,579
Financial liabilities [Abstract]
Deposits	1,138,034	1,124,612
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	136,093	116,032
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	15,247	7,573
Loans receivable [Abstract]
Loans held-for-sale	3,573	2,345
Interest receivable	4,490	4,158
Financial liabilities [Abstract]
Interest payable	109	74
Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,574	6,019
Loans receivable [Abstract]
Net loans	711,483	726,179
Mortgage servicing rights	1,509	2,091
Financial liabilities [Abstract]
Deposits	$ 1,023,011	$ 966,464

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 198,342	$ 205,527
Undisbursed Loan Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	192,502	201,983
Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,269	2,974
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	1,269	2,974
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	4,571	570
Reserve for Off-balance Sheet Activity [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Reserve for unfunded commitments	840	800
Derivative [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 0	$ 0

STOCK PLANS (Details)

STOCK PLANS (Details)	Jan. 24, 2019	Sep. 30, 2019
Dividends [Abstract]
Stock dividend percentage	5.00%
Dividends date declared		Jan. 24, 2019
Dividend date to be paid		Mar. 29, 2019
Dividends payable, date of record		Feb. 28, 2019

STOCK PLANS, Stock Options (Det

STOCK PLANS, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019		Sep. 30, 2019	Sep. 30, 2018
Stock options, number of shares [Roll Forward]
Balance, beginning of period (in shares)	405,137		329,160
Granted (in shares)	0		77,666
Expired (in shares)	0		0
Cancelled / Forfeited (in shares)	0		(1,689)
Exercised (in shares)	0		0
Balance, end of period (in shares)	405,137		405,137
Exercisable (vested) at end of period (in shares)	224,595		224,595
Stock options, weighted average exercise price [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 8.72		$ 8.23
Granted (in dollars per share)	0		10.86
Expired (in dollars per share)	0		0
Cancelled / Forfeited (in dollars per share)	0		12.41
Exercised (in dollars per share)	0		0
Balance, end of period (in dollars per share)	8.72		8.72
Exercisable (vested) at end of period (in dollars per share)	$ 6.95		$ 6.95
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value	$ 1,042,478		$ 1,042,478
Exercisable (vested), aggregate intrinsic value	$ 945,508		$ 945,508
Outstanding, weighted average remaining contractual term	6 years 7 months 24 days		6 years 7 months 24 days
Exercisable (vested), weighted average remaining contractual term	5 years 2 months 16 days		5 years 2 months 16 days
Weighted average fair value of options granted (in dollars per share)			$ 1.82
Intrinsic value of options exercised				$ 81,000
Fair value of awards vested			$ 141,000	$ 114,000
Unrecognized compensation related to non-vested stock options	$ 289,000		$ 289,000
Unrecognized compensation cost, period for recognition			2 years 4 months 20 days
Recognized compensation cost	$ 38,000		$ 111,000
Weighted average assumptions used in valuation [Abstract]
Risk free interest rate	0.00%	[1]	2.47%
Expected dividend yield	0.00%	[1]	0.00%
Expected life	0 years	[1]	5 years
Expected price volatility	0.00%	[1]	11.86%
[1]	There were no stock options granted during the three months ended September 30, 2019.

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	124,762	118,391
Granted (in shares) | shares	2,000	44,262
Cancelled / Forfeited (in shares) | shares	0	(1,969)
Exercised / Released / Vested (in shares) | shares	0	(33,922)
Outstanding at end of period (in shares) | shares	126,762	126,762
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 10.18	$ 8.94
Granted (in dollars per share) | $ / shares	11.31	10.88
Cancelled / Forfeited (in dollars per share) | $ / shares	0	11.10
Exercised / Released / Vested (in dollars per share) | $ / shares	0	6.64
Outstanding at end of period (in dollars per share) | $ / shares	$ 10.20	$ 10.20
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 1,400,720	$ 1,400,720
Outstanding, weighted average remaining contractual term	2 years 9 months 7 days	2 years 9 months 7 days
Unrecognized compensation related to restricted stock | $	$ 720,000	$ 720,000
Unrecognized compensation cost, period for recognition		2 years 9 months 7 days
Recognized compensation cost | $	$ 80,000	$ 230,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)shares	Sep. 30, 2019USD ($)$ / sharesshares
Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Unrecognized compensation cost	$ 6,000	$ 6,000
Weighted average period to recognize the unrecognized compensation		3 months
Recognized compensation cost	$ 6,000	$ 19,000
Weighted average fair value at issuance date (in dollars per share) | $ / shares		$ 2.57
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	2.67%	2.67%
Expected dividend yield	0.00%	0.00%
Expected life	1 year	1 year
Expected price volatility	8.47%	8.47%
2016 Amended Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Shares authorized for issuance under plan (in shares) | shares	295,277	295,277
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
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	$ 124,882	$ 118,027	$ 112,461	$ 103,574	$ 101,064	$ 100,044	$ 112,461	$ 100,044
Current period other comprehensive income (loss)	762	3,324	1,478	(569)	(610)	(1,811)	5,564	(2,990)
Balance	129,522	124,882	118,027	106,589	103,574	101,064	129,522	106,589
Accumulated Other Comprehensive Income (Loss) [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(234)	(3,558)	(5,036)	(6,818)	(6,208)	(4,397)	(5,036)	(4,397)
Current period other comprehensive income (loss)	762	3,324	1,478	(569)	(610)	(1,811)
Balance	528	(234)	(3,558)	(7,387)	(6,818)	(6,208)	528	(7,387)
Unrealized Gains (Losses) on Securities [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	935		(3,867)	(5,418)		(2,997)	(3,867)	(2,997)
Current period other comprehensive income (loss)	762			(569)			5,564	(2,990)
Balance	1,697	935		(5,987)	(5,418)		1,697	(5,987)
Officers' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(1,198)		(1,198)	(1,403)		(1,403)	(1,198)	(1,403)
Current period other comprehensive income (loss)	0			0			0	0
Balance	(1,198)	(1,198)		(1,403)	(1,403)		(1,198)	(1,403)
Directors' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	29		$ 29	3		$ 3	29	3
Current period other comprehensive income (loss)	0			0			0	0
Balance	$ 29	$ 29		$ 3	$ 3		$ 29	$ 3

OUTSTANDING SHARES AND EARNIN_3

OUTSTANDING SHARES AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 24, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Stock dividend percentage	5.00%
Dividends date declared								Jan. 24, 2019
Dividend date to be paid								Mar. 29, 2019
Dividends payable, date of record								Feb. 28, 2019
Basic earnings per share [Abstract]
Net income		$ 3,754	$ 3,406	$ 3,985	$ 3,467	$ 3,003	$ 2,733	$ 11,145	$ 9,203
Weighted average common shares outstanding (in shares)		12,167,957			12,127,378			12,159,205	12,122,252
Basic EPS (in dollars per share)		$ 0.31			$ 0.29			$ 0.92	$ 0.76
Diluted earnings per share [Abstract]
Net income		$ 3,754	$ 3,406	$ 3,985	$ 3,467	$ 3,003	$ 2,733	$ 11,145	$ 9,203
Weighted average common shares outstanding (in shares)		12,167,957			12,127,378			12,159,205	12,122,252
Effect of dilutive shares (in shares)		150,056			179,698			146,810	173,104
Adjusted weighted average common shares outstanding (in shares)		12,318,013			12,307,076			12,306,015	12,295,356
Diluted EPS (in dollars per share)		$ 0.30			$ 0.28			$ 0.91	$ 0.75
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		215,415			73,361			215,415	95,147

LEASES (Details)

LEASES (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)Location	Dec. 31, 2018USD ($)
Lessee, Operating Lease, Description [Abstract]
Lease right of use assets	$ 7,224	$ 7,224	$ 4,417
Lease liabilities	7,663	$ 7,663	4,812
Number of branch and administrative locations leased by the Bank | Location		9
Lease expenses		$ 724
Short term leases		86
Reduction in lease expense for deferred gain on sale-leaseback		62
Maturities of Remaining Lease Liabilities [Abstract]
2019	219	219
2020	1,116	1,116
2021	1,118	1,118
2022	1,064	1,064
2023	1,005	1,005
After 2023	3,991	3,991
Total lease payments	8,513	8,513
Less: interest	(850)	(850)
Present value of lease liabilities	7,663	7,663	$ 4,812
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	219	653
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 3,410	$ 7,827
Weighted Average Operating Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term - operating leases, in years	8 years 2 months 8 days	8 years 2 months 8 days
Weighted-average discount rate - operating leases	2.53%	2.53%
Minimum [Member]
Lessee, Operating Lease, Description [Abstract]
Renewal lease term	3 years	3 years
Maximum [Member]
Lessee, Operating Lease, Description [Abstract]
Renewal lease term	10 years	10 years