First Northern Community Bancorp (FNRN) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [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 Common Stock, Shares Outstanding		12,969,267
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-30707
Entity Tax Identification Number	68-0450397
Entity Incorporation, State or Country Code	CA
Entity Address, Address Line One	195 N. First Street
Entity Address, City or Town	Dixon
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95620
City Area Code	707
Local Phone Number	678-3041
Title of 12(g) Security	Common Stock, no par value

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 275,643	$ 111,493
Certificates of deposit	18,142	14,700
Investment securities - available-for-sale	363,369	342,897
Loans, net of allowance for loan losses of $14,456 at September 30, 2020 and $12,356 at December 31, 2019	965,847	768,873
Loans held-for-sale	4,650	4,130
Stock in Federal Home Loan Bank and other equity securities, at cost	6,480	6,574
Premises and equipment, net	6,713	6,594
Interest receivable and other assets	36,422	37,330
Total Assets	1,677,266	1,292,591
Liabilities:
Demand deposits	658,270	423,095
Interest-bearing transaction deposits	376,852	317,681
Savings and MMDA's	406,468	344,415
Time, $250,000 or less	43,011	37,564
Time, over $250,000	14,400	15,877
Total deposits	1,499,001	1,138,632
Federal Home Loan Bank advances	10,000	0
Interest payable and other liabilities	19,895	21,044
Total Liabilities	1,528,896	1,159,676
Commitments and contingencies (Note 7)
Stockholders' Equity:
Common stock, no par value; 16,000,000 shares authorized; 12,969,267 shares issued and outstanding at September 30, 2020 and 12,919,132 shares issued and outstanding at December 31, 2019	100,970	100,187
Additional paid-in capital	977	977
Retained earnings	40,070	31,617
Accumulated other comprehensive income, net	6,353	134
Total Stockholders' Equity	148,370	132,915
Total Liabilities and Stockholders' Equity	$ 1,677,266	$ 1,292,591

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Loans, allowance for loan losses	$ 14,456	$ 12,356
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)	12,969,267	12,919,132
Common stock, shares outstanding (in shares)	12,969,267	12,919,132

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income:
Loans	$ 10,815	$ 9,642	$ 29,752	$ 29,110
Due from banks interest bearing accounts	160	700	852	1,979
Investment securities
Taxable	1,500	1,660	4,924	4,890
Non-taxable	131	82	355	202
Other earning assets	82	114	289	337
Total interest and dividend income	12,688	12,198	36,172	36,518
Interest expense:
Deposits	314	487	1,217	1,310
Total interest expense	314	487	1,217	1,310
Net interest income	12,374	11,711	34,955	35,208
Provision for loan losses	800	0	2,250	0
Net interest income after provision for loan losses	11,574	11,711	32,705	35,208
Non-interest income:
Service charges on deposit accounts	325	514	980	1,481
Gains on sales of loans held-for-sale	834	155	1,584	340
Investment and brokerage services income	138	165	422	463
Mortgage brokerage income	0	68	54	206
Loan servicing income	50	88	178	274
Debit card income	581	568	1,588	1,626
Gains (losses) on sales/calls of available-for-sale securities	254	0	296	(6)
Other income	207	231	584	935
Total non-interest income	2,389	1,789	5,686	5,319
Non-interest expenses:
Salaries and employee benefits	6,049	5,511	17,212	16,313
Occupancy and equipment	935	797	2,722	2,241
Data processing	640	718	1,968	1,961
Stationery and supplies	66	51	220	185
Advertising	131	106	304	282
Directors' fees	103	76	224	206
Other real estate owned (recovery) expense	0	17	(1)	388
Other expense	1,326	1,039	3,678	3,562
Total non-interest expenses	9,250	8,315	26,327	25,138
Income before provision for income taxes	4,713	5,185	12,064	15,389
Provision for income taxes	1,288	1,431	3,255	4,244
Net income	$ 3,425	$ 3,754	$ 8,809	$ 11,145
Basic earnings per common share (in dollars per share)	$ 0.27	$ 0.29	$ 0.69	$ 0.87
Diluted earnings per common share (in dollars per share)	$ 0.27	$ 0.29	$ 0.68	$ 0.86

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 3,425	$ 3,754	$ 8,809	$ 11,145
Other comprehensive (loss) income, net of tax:
Unrealized holding gains arising during the period, net of tax effect of $37 and $307 for the three months ended September 30, 2020 and September 30, 2019, respectively, and $2,593 and $2,241 for the nine months ended September 30, 2020 and September 30, 2019, respectively	92	762	6,430	5,560
Less: reclassification adjustment due to (gains) losses realized on sales of securities, net of tax effect of $(73) and $0 for the three months ended September 30, 2020 and September 30, 2019, respectively, and $(85) and $2 for the nine months ended September 30, 2020 and September 30, 2019, respectively	(181)	0	(211)	4
Other comprehensive (loss) income, net of tax	(89)	762	6,219	5,564
Comprehensive income	$ 3,336	$ 4,516	$ 15,028	$ 16,709

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Unrealized holding gains on securities:
Unrealized holding gains arising during the period, tax	$ 37	$ 307	$ 2,593	$ 2,241
Reclassification adjustment due to gains realized on sales of securities, tax	$ (73)	$ 0	$ (85)	$ 2

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, 2018	$ 92,618	$ 977	$ 23,902	$ (5,036)	$ 112,461
Balance (in shares) at Dec. 31, 2018	12,253,812
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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
Balance at Dec. 31, 2019	$ 100,187	977	31,617	134	132,915
Balance (in shares) at Dec. 31, 2019	12,919,132
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,679		2,679
Other comprehensive income (loss), net of taxes				5,069	5,069
Stock dividend adjustment	$ 348		(348)		0
Stock dividend adjustment (in shares)	1,310
Cash in lieu of fractional shares			(8)		(8)
Cash in lieu of fractional shares (in shares)	(166)
Stock-based compensation	$ 134				134
Common shares issued related to restricted stock grants	$ 0				0
Common shares issued related to restricted stock grants (in shares)	38,224
Stock options exercised, net	$ 4				4
Stock options exercised, net (in shares)	10,067
Balance at Mar. 31, 2020	$ 100,673	977	33,940	5,203	140,793
Balance (in shares) at Mar. 31, 2020	12,968,567
Balance at Dec. 31, 2019	$ 100,187	977	31,617	134	132,915
Balance (in shares) at Dec. 31, 2019	12,919,132
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					8,809
Other comprehensive income (loss), net of taxes					6,219
Balance at Sep. 30, 2020	$ 100,970	977	40,070	6,353	148,370
Balance (in shares) at Sep. 30, 2020	12,969,267
Balance at Mar. 31, 2020	$ 100,673	977	33,940	5,203	140,793
Balance (in shares) at Mar. 31, 2020	12,968,567
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,705		2,705
Other comprehensive income (loss), net of taxes				1,239	1,239
Stock-based compensation	$ 149				149
Balance at Jun. 30, 2020	$ 100,822	977	36,645	6,442	144,886
Balance (in shares) at Jun. 30, 2020	12,968,567
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			3,425		3,425
Other comprehensive income (loss), net of taxes				(89)	(89)
Stock-based compensation	$ 148				148
Common shares issued related to restricted stock grants (in shares)	700
Balance at Sep. 30, 2020	$ 100,970	$ 977	$ 40,070	$ 6,353	$ 148,370
Balance (in shares) at Sep. 30, 2020	12,969,267

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, 2020	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash Flows From Operating Activities
Net income	$ 3,425	$ 2,679	$ 3,754	$ 3,985	$ 8,809	$ 11,145
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation					723	512
Accretion and amortization of investment securities premiums and discounts, net					1,341	1,269
Valuation adjustment on mortgage servicing rights					305	0
Increase (decrease) in deferred loan origination fees and costs, net					4,254	(17)
Provision for loan losses	800		0		2,250	0	$ 0
Stock-based compensation					431	360
Gain on sale of fixed assets					0	(281)
(Gains) losses on sales/calls of available-for-sale securities	(254)		0		(296)	6
Other real estate owned writedowns					0	308
Amortization of operating lease right-of-use asset					769	612
Gains on sales of loans held-for-sale	(834)		(155)		(1,584)	(340)
Proceeds from sales of loans held-for-sale					58,616	19,749
Originations of loans held-for-sale					(57,552)	(20,620)
Changes in assets and liabilities:
Increase in interest receivable and other assets					(2,453)	(1,553)
Decrease in interest payable and other liabilities					(1,370)	(892)
Net cash provided by operating activities					14,243	10,258
Cash Flows From Investing Activities
Proceeds from calls or maturities of available-for-sale securities					33,330	35,555
Proceeds from sales of available-for-sale securities					14,201	8,102
Principal repayments on available-for-sale securities					47,991	37,297
Purchase of available-for-sale securities					(108,312)	(85,095)
Net increase in certificates of deposit					(3,442)	(7,350)
Net (increase) decrease in loans					(203,478)	8,406
Net decrease (increase) in stock in Federal Home Loan Bank and other equity securities, at cost					94	(555)
Proceeds from the sale of premises and equipment					0	668
Purchases of premises and equipment, net					(842)	(639)
Net cash used in investing activities					(220,458)	(3,611)
Cash Flows From Financing Activities
Net increase in deposits					360,369	13,422
Increase in Federal Home Loan Bank advances					10,000	0
Cash dividends paid in lieu of fractional shares					(8)	(8)
Stock options exercised					4	0
Net cash provided by financing activities					370,365	13,414
Net increase in Cash and Cash Equivalents					164,150	20,061
Cash and Cash Equivalents, beginning of period		$ 111,493		$ 116,032	111,493	116,032	116,032
Cash and Cash Equivalents, end of period	$ 275,643		$ 136,093		275,643	136,093	$ 111,493
Cash paid during the period for:
Interest					1,222	1,275
Income taxes					3,350	4,160
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed					7,016	6,610
Unrealized holding gains on available for sale securities, net of taxes					$ 6,219	$ 5,564

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2020
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, 2019 as filed with the Securities and Exchange Commission ("SEC"). 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, 2020
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, 2019. 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 Issued Accounting Pronouncements: The Coronavirus Aid, Relief and Economic Security (‘CARES’) Act was passed by Congress and signed into law on March 27, 2020. Section 4013 of the CARES Act stipulates that a financial institution may elect to not apply GAAP requirements to loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR, and suspends the determination of loan modifications related to the COVID-19 pandemic from being treated as TDR’s. The relief from TDR guidance applies to modifications of loans that were not more than 30 days past due as of December 31, 2019, and modifications that occur beginning on March 1, 2020 until the earlier of: sixty days after the date on which the national emergency related to the COVID-19 outbreak is terminated or December 31, 2020. The suspension of TDR accounting and reporting guidance may not be applied to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic . On April 3, 2020, the SEC Office of the Chief Accountant issued a public statement communicating that for eligible entities that elect to apply Section 4013 of the CARES Act, the SEC staff would not object that this is in accordance with GAAP for the periods for which such elections are available. In June 2020, the American Institute of Certified Public Accountants published Q&A Section 2130.41 regarding a technical question regarding the recognition of interest income on Section 4013 loans which provided multiple permitted policy elections regarding the recognition of interest on Section 4013 restructured loans . The Bank has continued to actively assist its communities by providing temporary loan relief under Section 4013 of the CARES Act. This relief included loan modifications which include forbearance programs (both full payment deferrals and interest only payments) to customers who have been negatively impacted by the pandemic. For loans that have been provided temporary full payment deferrals, the Bank has made a policy election to cease recognition of interest income during the term of the payment deferrals (generally three . In March 2020, the FASB issued ASU 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). Leases (Topic 842) Financial Instruments - Credit Losses (Topic 326) hile the Company is currently unable to reasonably estimate the impact of adopting ASU , it expects that the impact of adoption will be significantly influenced by the composition, characteristics and quality of the Company’s loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848).

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2020
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2020 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 29,738 $ 1,135 $ — $ 30,873 Securities of U.S. government agencies and corporations 77,912 1,353 (20 ) 79,245 Obligations of states and political subdivisions 30,619 1,639 (17 ) 32,241 Collateralized mortgage obligations 76,359 2,158 — 78,517 Mortgage-backed securities 137,823 4,693 (23 ) 142,493 Total debt securities $ 352,451 $ 10,978 $ (60 ) $ 363,369 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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 $ 42,667 $ 601 $ (13 ) $ 43,255 Securities of U.S. government agencies and corporations 53,525 433 (46 ) 53,912 Obligations of states and political subdivisions 26,311 749 (29 ) 27,031 Collateralized mortgage obligations 79,470 349 (399 ) 79,420 Mortgage-backed securities 138,733 999 (453 ) 139,279 Total debt securities $ 340,706 $ 3,131 $ (940 ) $ 342,897 The Company had $15,487,000 and $10,974,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three-month periods ended September 30, 2020 and 2019, respectively. The Company had $47,531,000 and $43,657,000 in proceeds from sales, calls and maturities of available-for-sale securities for the nine-month periods ended September 30, 2020 and 2019, respectively. Gross realized gains on sales/calls of available-for-sale securities were $254,000 and $0 for the three-month periods ended September 30, 2020 and 2019, respectively. There were no gross realized losses from sales of available-for-sale securities for the three-month periods ended September 30, 2020 and 2019, respectively. Gross realized gains on sales/calls of available-for-sale securities were $342,000 and $47,000 for the nine-month periods ended September 30, 2020 and 2019, respectively. Gross realized losses on sales of available-for-sale securities were $46,000 and $53,000 for the nine-month periods ended September 30, 2020 and 2019, respectively. The amortized cost and estimated market value of debt and other securities at September 30, 2020, by contractual or expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 21,869 $ 22,006 Due after one year through five years 75,120 77,293 Due after five years through ten years 21,753 22,565 Due after ten years 19,527 20,495 Subtotal 138,269 142,359 MBS & CMO 214,182 221,010 Total $ 352,451 $ 363,369 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, 2020, follows: (in thousands) 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 $ — $ — $ — $ — $ — $ — Securities of U.S. government agencies and corporations 6,482 (20 ) — — 6,482 (20 ) Obligations of states and political subdivisions 2,163 (17 ) — — 2,163 (17 ) Collateralized Mortgage obligations — — — — — — Mortgage-backed securities 2,642 (23 ) — — 2,642 (23 ) Total $ 11,287 $ (60 ) $ — $ — $ 11,287 $ (60 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2019, follows: (in thousands) Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 10,113 $ (8 ) $ 2,015 $ (5 ) $ 12,128 $ (13 ) Securities of U.S. government agencies and corporations 13,187 (44 ) 1,998 (2 ) 15,185 (46 ) Obligations of states and political subdivisions 4,645 (29 ) — — 4,645 (29 ) Collateralized Mortgage obligations 21,763 (129 ) 21,132 (270 ) 42,895 (399 ) Mortgage-backed securities 11,970 (28 ) 44,433 (425 ) 56,403 (453 ) Total $ 61,678 $ (238 ) $ 69,578 $ (702 ) $ 131,256 $ (940 ) Investment securities carried at $43,601,000 and $37,943,000 at September 30, 2020 and December 31, 2019, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2020
LOANS [Abstract]
LOANS	4. LOANS The composition of the Company’s loan portfolio, by loan class, as of September 30, 2020 and December 31, 2019 was as follows: ($ in thousands) September 30, 2020 December 31, 2019 Commercial $ 331,445 $ 106,140 Commercial Real Estate 456,237 451,774 Agriculture 102,045 115,751 Residential Mortgage 67,240 64,943 Residential Construction 6,610 15,212 Consumer 20,396 26,825 983,973 780,645 Allowance for loan losses (14,456 ) (12,356 ) Net deferred origination fees and costs (3,670 ) 584 Loans, net $ 965,847 $ 768,873 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, 2020, approximately 34% in principal amount of the Company's loans were for general commercial uses, including professional, retail and small businesses. Approximately 46% 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 10% in principal amount of the Company's loans were for agriculture, approximately 7% in principal amount of the Company’s loans were residential mortgage loans, approximately 1% in principal amount of the Company’s loans were residential construction loans and approximately 2% 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, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, 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, 2020 Commercial $ 331,012 $ 139 $ 27 $ — $ 267 $ 331,445 Commercial Real Estate 450,601 246 — — 5,390 456,237 Agriculture 92,915 — — — 9,130 102,045 Residential Mortgage 67,085 — — — 155 67,240 Residential Construction 6,347 263 — — — 6,610 Consumer 19,684 17 — — 695 20,396 Total $ 967,644 $ 665 $ 27 $ — $ 15,637 $ 983,973 December 31, 2019 Commercial $ 105,741 $ — $ 133 $ — $ 266 $ 106,140 Commercial Real Estate 451,215 — 93 — 466 451,774 Agriculture 115,751 — — — — 115,751 Residential Mortgage 64,771 — — — 172 64,943 Residential Construction 15,212 — — — — 15,212 Consumer 26,472 100 — — 253 26,825 Total $ 779,162 $ 100 $ 226 $ — $ 1,157 $ 780,645 Non-accrual loans amounted to $15,637,000 at September 30, 2020 and were comprised of two commercial loans totaling $267,000, four commercial real estate loans totaling $5,390,000 , agriculture loans totaling $ 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 $500,000 or more. Once identified, impaired loans are measured individually for impairment using one of three methods: present value of expected cash flows discounted at the loan's effective interest rate; the loan's observable market price; or fair value of collateral if the loan is collateral dependent. In general, any portion of the recorded investment in a collateral dependent loan in excess of the fair value of the collateral that can be identified as uncollectible, and is, therefore, deemed a confirmed loss, is promptly charged-off against the allowance for loan losses. Impaired loans, segregated by loan class, as of September 30, 2020 and December 31, 2019 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2020 Commercial $ 1,138 $ 267 $ 842 $ 1,109 $ 16 Commercial Real Estate 5,625 5,390 — 5,390 — Agriculture 9,189 9,130 — 9,130 — Residential Mortgage 1,055 155 892 1,047 162 Residential Construction 693 — 661 661 72 Consumer 813 695 74 769 1 Total $ 18,513 $ 15,637 $ 2,469 $ 18,106 $ 251 December 31, 2019 Commercial $ 1,694 $ 266 $ 1,385 $ 1,651 $ 26 Commercial Real Estate 715 466 250 716 19 Agriculture — — — — — Residential Mortgage 1,152 172 912 1,084 171 Residential Construction 724 — 691 691 56 Consumer 340 253 80 333 1 Total $ 4,625 $ 1,157 $ 3,318 $ 4,475 $ 273 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2020 and September 30, 2019 was as follows: ($ in thousands) Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 1,291 $ 15 $ 2,098 $ 28 Commercial Real Estate 5,549 5 600 4 Agriculture 9,137 — — — Residential Mortgage 1,057 7 1,054 29 Residential Construction 666 8 705 9 Consumer 865 14 361 1 Total $ 18,565 $ 49 $ 4,818 $ 71 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2020 and September 30, 2019 was as follows: ($ in thousands) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 1,424 $ 50 $ 2,318 $ 102 Commercial Real Estate 3,142 9 617 12 Agriculture 4,569 — 2,402 240 Residential Mortgage 1,068 22 1,253 63 Residential Construction 676 26 678 26 Consumer 598 16 374 23 Total $ 11,477 $ 123 $ 7,642 $ 466 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 . 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 $2,541,000 and $3,413,000 in TDR loans as of September 30, 2020 and December 31, 2019, respectively. Specific reserves for TDR loans totaled $251,000 and $273,000 as of September 30, 2020 and December 31, 2019, respectively. TDR loans performing in compliance with modified terms totaled $2,469,000 and $3,318,000 as of September 30, 2020 and December 31, 2019, respectively. There were no commitments to advance additional funds on existing TDR loans as of September 30, 2020 and December 31, 2019. On March 22, 2020, the federal bank regulatory agencies issued joint guidance advising that the agencies have confirmed with the staff of the Financial Accounting Standards Board that short-term modifications due to COVID-19, made on a good faith basis to borrowers who were current prior to relief, are not TDRs. The CARES Act also provided relief from TDR classification for certain COVID-19 loan modifications. The Bank elected not to classify modifications that meet the criteria under either the CARES Act or the criteria specified by the regulatory agencies as TDRs. There were loans modified as TDRs during the month periods ended and . There were loans modified as TDRs during the month period ended . Loans modified as TDRs during the nine months ended September 30, 2019 were as follows: ($ 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 Loan modifications generally involve reductions in the interest rate, payment extensions, forgiveness of principal, or forbearance. loans were modified as a TDR within the previous months that subsequently defaulted during the and months ended and . 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, 2019. The following table presents the risk ratings by loan class as of September 30, 2020 and December 31, 2019: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2020 Commercial $ 320,552 $ 9,907 $ 986 $ — $ — $ 331,445 Commercial Real Estate 435,391 8,699 12,147 — — 456,237 Agriculture 90,582 — 11,463 — — 102,045 Residential Mortgage 66,929 — 311 — — 67,240 Residential Construction 6,610 — — — — 6,610 Consumer 19,621 — 775 — — 20,396 Total $ 939,685 $ 18,606 $ 25,682 $ — $ — $ 983,973 December 31, 2019 Commercial $ 104,944 $ 428 $ 768 $ — $ — $ 106,140 Commercial Real Estate 427,991 17,739 6,044 — — 451,774 Agriculture 105,573 7,823 2,355 — — 115,751 Residential Mortgage 64,596 — 347 — — 64,943 Residential Construction 15,212 — — — — 15,212 Consumer 25,933 500 392 — — 26,825 Total $ 744,249 $ 26,490 $ 9,906 $ — $ — $ 780,645 Allowance for Loan Losses The following tables detail activity in the allowance for loan losses by loan class for the and months ended . Three months ended September 30, 2020 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2020 $ 2,338 $ 7,434 $ 1,655 $ 540 $ 245 $ 224 $ 1,195 $ 13,631 Provision for loan losses (5 ) 1,075 225 133 (99 ) (24 ) (505 ) 800 Charge-offs — — — — — — — — Recoveries 1 — — — — 24 — 25 Net recoveries 1 — — — — 24 — 25 Balance as of September 30, 2020 $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 Nine months ended September 30, 2020 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2019 $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 Provision for loan losses 151 1,663 (174 ) 207 (55 ) (33 ) 491 2,250 Charge-offs (184 ) — — — — (13 ) — (197 ) Recoveries 13 — — — — 34 — 47 Net (charge-offs) recoveries (171 ) — — — — 21 — (150 ) Balance as of September 30, 2020 $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 16 $ — $ — $ 162 $ 72 $ 1 $ — $ 251 Loans collectively evaluated for impairment 2,318 8,509 1,880 511 74 223 690 14,205 Ending Balance $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 The following table details activity in the allowance for loan losses by loan class for the and months ended . 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 (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 . ($ 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended . Year ended December 31, 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 (415 ) 956 520 (251 ) (138 ) (9 ) (663 ) — Charge-offs (638 ) — (98 ) — — (43 ) — (779 ) Recoveries 209 — — 74 21 9 — 313 Net (charge-offs) recoveries (429 ) — (98 ) 74 21 (34 ) — (466 ) Ending Balance $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 Period-end amount allocated to: Loans individually evaluated for impairment $ 26 $ 19 $ — $ 171 $ 56 $ 1 $ — $ 273 Loans collectively evaluated for impairment 2,328 6,827 2,054 295 145 235 199 12,083 Balance as of December 31, 2019 $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 The Company’s investment in loans as of , and 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, 2020 Loans individually evaluated for impairment $ 1,109 $ 5,390 $ 9,130 $ 1,047 $ 661 $ 769 $ 18,106 Loans collectively evaluated for impairment 330,336 450,847 92,915 66,193 5,949 19,627 965,867 Ending Balance $ 331,445 $ 456,237 $ 102,045 $ 67,240 $ 6,610 $ 20,396 $ 983,973 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 December 31, 2019 Loans individually evaluated for impairment $ 1,651 $ 716 $ — $ 1,084 $ 691 $ 333 $ 4,475 Loans collectively evaluated for impairment 104,489 451,058 115,751 63,859 14,521 26,492 776,170 Ending Balance $ 106,140 $ 451,774 $ 115,751 $ 64,943 $ 15,212 $ 26,825 $ 780,645

MORTGAGE OPERATIONS

MORTGAGE OPERATIONS	9 Months Ended
	Sep. 30, 2020
MORTGAGE OPERATIONS [Abstract]
MORTGAGE OPERATIONS	5. MORTGAGE OPERATIONS Transfers and servicing of financial assets and extinguishments of liabilities are accounted for and reported based on consistent application of a financial-components approach that focuses on control. Transfers of financial assets that are sales are distinguished from transfers that are secured borrowings. Retained interests (mortgage servicing rights) in loans sold are measured by allocating the previous carrying amount of the transferred assets between the loans sold and retained interests, if any, based on their relative fair value at the date of transfer. Fair values are estimated using discounted cash flows based on a current market interest rate. The Company recognizes a gain and a related asset for the fair value of the rights to service loans for others when loans are sold. The Company sold substantially its entire portfolio of conforming long-term residential mortgage loans originated during the months ended for cash proceeds equal to the fair value of the loans. The Company serviced real estate mortgage loans for others totaling at and , 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 non-interest income on the condensed consolidated statements of income. Key assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Constant prepayment rate 18.91 % 12.10 % Discount rate 10.00 % 10.01 % Weighted average life (years) 4.18 5.50 The following table summarizes the Company’s mortgage servicing rights assets as of September 30, 2020 and December 31, 2019. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2019 Additions Reductions September 30, 2020 Mortgage servicing rights $ 1,481 $ 393 $ (305 ) $ 1,569 Valuation allowance — (305 ) — (305 ) Mortgage servicing rights, net of valuation allowance $ 1,481 $ 88 $ (305 ) $ 1,264 At September 30, 2020 and December 31, 2019, the estimated fair market value of the Company’s mortgage servicing rights asset was $1,264,000 and $1,631,000, respectively. The Company received contractually specified servicing fees of $134,000 and $129,000 for the three months ended September 30, 2020 and September 30, 2019, respectively. The Company received contractually specified servicing fees of $396,000 and $393,000 for the nine months ended September 30, 2020 and September 30, 2019, 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, 2020
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale and trading securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a non-recurring basis, such as loans held-for-sale, loans held-for-investment and certain other assets. These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. Assets Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2020: (in thousands) September 30, 2020 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 $ 30,873 $ 30,873 $ — $ — Securities of U.S. government agencies and corporations 79,245 — 79,245 — Obligations of states and political subdivisions 32,241 — 32,241 — Collateralized mortgage obligations 78,517 — 78,517 — Mortgage-backed securities 142,493 — 142,493 — Total investments at fair value $ 363,369 $ 30,873 $ 332,496 $ — 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, 2019: (in thousands) December 31, 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 $ 43,255 $ 43,255 $ — $ — Securities of U.S. government agencies and corporations 53,912 — 53,912 — Obligations of states and political subdivisions 27,031 — 27,031 — Collateralized mortgage obligations 79,420 — 79,420 — Mortgage-backed securities 139,279 — 139,279 — Total investments at fair value $ 342,897 $ 43,255 $ 299,642 $ — 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, 2020 and December 31, 2019: (in thousands) September 30, 2020 Carrying Value Level 1 Level 2 Level 3 Mortgage servicing rights $ 1,264 $ — $ — $ 1,264 Total assets at fair value $ 1,264 $ — $ — $ 1,264 (in thousands) December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 170 $ — $ — $ 170 Total assets at fair value $ 170 $ — $ — $ 170 There were no liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2020 and December 31, 2019. Key methods and assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2020 and impaired loans as of December 31, 2019 were as follows: Method Assumption Inputs Mortgage servicing rights Discounted cash flows Present value of expected future cash flows was estimated using a discount rate factor of 10.00% as of September 30, 2020. A constant prepayment rate of 18.91% as of September 30, 2020 was utilized. 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. 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. Mortgage Servicing Rights Mortgage servicing rights (MSRs) are subject to impairment testing. All mortgage servicing rights are initially measured and recorded at fair value at the time loans are sold. The fair value of MSRs is determined based on the price that would be received to sell the MSRs in an orderly transaction between market participants at the measurement date. Subsequent fair value measurements are determined using a discounted cash flow model. In order to determine the fair value of the mortgage servicing rights, the present value of expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, delinquency and foreclosure rates, and ancillary fee income. At September 30, 2020, the discount rate and constant prepayment rate used in measuring the fair value of the Company’s mortgage servicing rights was 10.00% and 18.91%, respectively. The model used to calculate the fair value of the Company’s mortgage servicing rights is periodically validated by an independent external model validation group. The model assumptions and the mortgage servicing rights fair value estimates are also compared to observable trades of similar portfolios as well as to mortgage servicing rights broker valuations and industry surveys, as available. If the valuation model reflects a value less than the carrying value, mortgage servicing rights are adjusted to fair value through a valuation allowance as determined by the model. As such, the Company classifies mortgage servicing rights subjected to non-recurring fair value adjustments as Level 3. 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, 2020 and December 31, 2019 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. Disclosures about Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2020 and December 31, 2019 were approximately as follows: (in thousands) September 30, 2020 December 31, 2019 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 275,643 $ 275,643 $ 111,493 $ 111,493 Certificates of deposit 2 18,142 18,751 14,700 14,984 Stock in Federal Home Loan Bank and other equity securities 3 6,480 6,480 6,574 6,574 Loans receivable: Net loans 3 965,847 921,387 768,873 723,507 Loans held-for-sale 2 4,650 4,812 4,130 4,213 Interest receivable 2 5,088 5,088 4,295 4,295 Mortgage servicing rights 3 1,264 1,264 1,481 1,631 Financial liabilities: Deposits 3 1,499,001 1,468,740 1,138,632 1,035,644 Federal Home Loan Bank advances 2 10,000 9,993 — — Interest payable 2 87 87 92 92 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, 2020
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments, whose contract amounts represent credit risk at the indicated periods, were as follows: (in thousands) September 30, 2020 December 31, 2019 Undisbursed loan commitments $ 192,765 $ 198,534 Standby letters of credit 2,898 2,455 Commitments to sell loans 2,330 1,240 $ 197,993 $ 202,229 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, 2020 and December 31, 2019, there were no financial standby letters of credit outstanding. The performance standby letters of credit are typically issued to municipalities as specific performance bonds. Performance standby letters of credit totaled $2,898,000 and $2,455,000 at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020, the Bank had 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 $950,000 and $840,000 at September 30, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, 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, 2020
STOCK PLANS [Abstract]
STOCK PLANS	8. STOCK PLANS On January 23, 2020, the Board of Directors of the Company declared a 5% stock dividend payable as of March 25, 2020 to shareholders of record as of February 28, 2020. 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, 2020. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 588,420 $ 9.31 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 588,420 $ 9.31 $ 456,692 6.94 Exercisable (vested) at End of Period 293,924 $ 7.59 $ 456,692 5.14 The following table presents the activity related to stock options for the nine months ended September 30, 2020. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 425,373 $ 8.30 Granted 178,087 $ 11.19 Expired — $ — Cancelled / Forfeited — — Exercised (15,040 ) 3.11 Options outstanding at End of Period 588,420 $ 9.31 $ 456,692 6.94 Exercisable (vested) at End of Period 293,924 $ 7.59 $ 456,692 5.14 The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2020 was $1.41 per share. The intrinsic value of options exercised was $96,000 and $0 during the nine months ended September 30, 2020 and September 30, 2019, respectively. The fair value of awards vested was $149,000 and $141,000 during the nine months ended September 30, 2020 and September 30, 2019, respectively. As of September 30, 2020, there was $367,000 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 2.53 years. There was $46,000 and $134,000 of recognized compensation cost related to stock options granted for the three and nine months ended September 30, 2020, respectively. A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2020 is presented below: Three Months Ended September 30, 2020* Nine Months Ended September 30, 2020 Risk Free Interest Rate — 1.42 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 10.18 % * There were no stock options granted during the three months ended September 30, 2020. The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2020. 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 140,971 $ 10.84 _ _ Granted 700 8.00 Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 141,671 $ 10.82 $ 1,161,702 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2020. 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 131,661 $ 9.72 _ _ _ _ Granted 41,685 11.14 Cancelled / Forfeited (858) 10.74 Exercised/Released/Vested (30,817) 6.56 Non-vested restricted stock outstanding at End of Period 141,671 $ 10.82 $ 1,161,702 2.68 The weighted average fair value of restricted stock granted during the nine months ended September 30, 2020 was $11.14 per share. As of September 30, 2020, there was $816,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 2.68 years. There was $96,000 and $278,000 of recognized compensation cost related to restricted stock awards for the three and nine months ended September 30, 2020, respectively. The Company has an Employee Stock Purchase Plan (“ESPP”). There are 310,041 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 23, 2020, payable March 25, 2020 to shareholders of record as of February 28, 2020. 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, 2019 to November 23, 2020. 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, 2020, 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, 2020, respectively. The weighted average fair value option at issuance date during the nine months ended September 30, 2020 was $2.37 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2020 is presented below. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Risk Free Interest Rate 1.56 % 1.56 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 13.09 % 13.09 %

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	9. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table details activity in accumulated other comprehensive income for the three months ended September 30, 2020. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income Balance as of June 30, 2020 $ 7,869 $ (1,411 ) $ (16 ) $ 6,442 Current period other comprehensive loss (89 ) — — (89 ) Balance as of September 30, 2020 $ 7,780 $ (1,411 ) $ (16 ) $ 6,353 The following table details activity in accumulated other comprehensive income for the nine months ended September 30, 2020. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income Balance as of December 31, 2019 $ 1,561 $ (1,411 ) $ (16 ) $ 134 Current period other comprehensive income 6,219 — — 6,219 Balance as of September 30, 2020 $ 7,780 $ (1,411 ) $ (16 ) $ 6,353 The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2019. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income 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 loss for the nine months ended September 30, 2019. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income 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

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2020
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
OUTSTANDING SHARES AND EARNINGS PER SHARE	10. OUTSTANDING SHARES AND EARNINGS PER SHARE On January 23, 2020, the Board of Directors of the Company declared a 5% stock dividend payable March 25, 2020 to shareholders of record as of February 28, 2020. 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, 2020 and 2019 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic earnings per share: Net income $ 3,425 $ 3,754 $ 8,809 $ 11,145 Weighted average common shares outstanding 12,827,363 12,778,125 12,816,320 12,769,373 Basic EPS $ 0.27 $ 0.29 $ 0.69 $ 0.87 Diluted earnings per share: Net income $ 3,425 $ 3,754 $ 8,809 $ 11,145 Weighted average common shares outstanding 12,827,363 12,778,125 12,816,320 12,769,373 Effect of dilutive shares 93,971 157,559 111,028 154,151 Adjusted weighted average common shares outstanding 12,921,334 12,935,684 12,927,348 12,923,524 Diluted EPS $ 0.27 $ 0.29 $ 0.68 $ 0.86 Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 404,262 shares and 226,186 shares for the three months ended September 30, 2020 and 2019, respectively. Restricted stock which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 42,035 shares and 0 shares for the three months ended September 30, 2020 and 2019, respectively. Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 404,262 shares and 226,186 shares for the nine months ended September 30, 2020 and 2019, respectively. Restricted stock which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 42,035 shares and 0 shares for the nine months ended September 30, 2020 and 2019, respectively.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2020
LEASES [Abstract]
LEASES	11. LEASES The Bank leases ten branch and administrative locations under operating leases expiring on various dates through 2030. 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. The Bank had no financing leases as of September 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. The Company had right-of-use assets totaling $6,414,000 and $6,962,000 as of September 30, 2020 and December 31, 2019, respectively. The Company had lease liabilities totaling as of September 30, 2020 and December 31, 2019, respectively. The Company recognized lease expenses totaling for the three month periods ended September 30, 2020 and 2019, respectively, and $ and $ for the nine month periods ended September 30, 2020 and 2019, respectively. Lease expenses include expenses related to short-term leases and recognition of deferred gain on sale-leaseback. Lease expense is included in Occupancy and equipment expense on the Income Statement The table below summarizes the maturity of remaining lease liabilities at September 30, 2020 (in thousands) September 30, 2020 2020 $ 301 2021 1,229 2022 1,140 2023 1,006 2024 899 2025 and thereafter 3,080 Total lease payments 7,655 Less: interest (666 ) Present value of lease liabilities $ 6,989 The following table presents supplemental cash flow information related to leases for the three and nine months ended September 30, 2020: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 302 $ 219 $ 851 $ 653 Right-of-use assets obtained in exchange for new operating lease liabilities — 3,410 221 7,827 The following table presents the weighted average operating lease term and discount rate at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Weighted-average remaining lease term – operating leases, in years $ 7.32 $ 8.01 Weighted-average discount rate – operating leases $ 2.45 % $ 2.52 %

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	9 Months Ended
	Sep. 30, 2020
SHORT-TERM BORROWINGS [Abstract]
SHORT-TERM BORROWINGS	12. SHORT-TERM BORROWINGS Short-term borrowings totaling $ million as of September 30, 2020 consisted of advances with the FHLB through its COVID-19 Relief and Recovery Advances Program. Such advances mature at a range of interest rate. The advances are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral such as commercial and mortgage loans. As of September 30, 2020, the Company had a remaining collateral borrowing capacity with the FHLB of $ . The Company also has unsecured formal lines of credit totaling $ with correspondent banks. The Company had short-term borrowings as of December 31, 2019.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2020
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, 2019 as filed with the Securities and Exchange Commission ("SEC"). 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, 2020
ACCOUNTING POLICIES [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements: The Coronavirus Aid, Relief and Economic Security (‘CARES’) Act was passed by Congress and signed into law on March 27, 2020. Section 4013 of the CARES Act stipulates that a financial institution may elect to not apply GAAP requirements to loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR, and suspends the determination of loan modifications related to the COVID-19 pandemic from being treated as TDR’s. The relief from TDR guidance applies to modifications of loans that were not more than 30 days past due as of December 31, 2019, and modifications that occur beginning on March 1, 2020 until the earlier of: sixty days after the date on which the national emergency related to the COVID-19 outbreak is terminated or December 31, 2020. The suspension of TDR accounting and reporting guidance may not be applied to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic . On April 3, 2020, the SEC Office of the Chief Accountant issued a public statement communicating that for eligible entities that elect to apply Section 4013 of the CARES Act, the SEC staff would not object that this is in accordance with GAAP for the periods for which such elections are available. In June 2020, the American Institute of Certified Public Accountants published Q&A Section 2130.41 regarding a technical question regarding the recognition of interest income on Section 4013 loans which provided multiple permitted policy elections regarding the recognition of interest on Section 4013 restructured loans . The Bank has continued to actively assist its communities by providing temporary loan relief under Section 4013 of the CARES Act. This relief included loan modifications which include forbearance programs (both full payment deferrals and interest only payments) to customers who have been negatively impacted by the pandemic. For loans that have been provided temporary full payment deferrals, the Bank has made a policy election to cease recognition of interest income during the term of the payment deferrals (generally three . In March 2020, the FASB issued ASU 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). Leases (Topic 842) Financial Instruments - Credit Losses (Topic 326) hile the Company is currently unable to reasonably estimate the impact of adopting ASU , it expects that the impact of adoption will be significantly influenced by the composition, characteristics and quality of the Company’s loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848).

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 29,738 $ 1,135 $ — $ 30,873 Securities of U.S. government agencies and corporations 77,912 1,353 (20 ) 79,245 Obligations of states and political subdivisions 30,619 1,639 (17 ) 32,241 Collateralized mortgage obligations 76,359 2,158 — 78,517 Mortgage-backed securities 137,823 4,693 (23 ) 142,493 Total debt securities $ 352,451 $ 10,978 $ (60 ) $ 363,369 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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 $ 42,667 $ 601 $ (13 ) $ 43,255 Securities of U.S. government agencies and corporations 53,525 433 (46 ) 53,912 Obligations of states and political subdivisions 26,311 749 (29 ) 27,031 Collateralized mortgage obligations 79,470 349 (399 ) 79,420 Mortgage-backed securities 138,733 999 (453 ) 139,279 Total debt securities $ 340,706 $ 3,131 $ (940 ) $ 342,897
Amortized Cost and Estimated Fair Value of Debt and Other Securities by Contractual or Expected Maturity	The amortized cost and estimated market value of debt and other securities at September 30, 2020, by contractual or expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 21,869 $ 22,006 Due after one year through five years 75,120 77,293 Due after five years through ten years 21,753 22,565 Due after ten years 19,527 20,495 Subtotal 138,269 142,359 MBS & CMO 214,182 221,010 Total $ 352,451 $ 363,369
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, 2020, follows: (in thousands) 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 $ — $ — $ — $ — $ — $ — Securities of U.S. government agencies and corporations 6,482 (20 ) — — 6,482 (20 ) Obligations of states and political subdivisions 2,163 (17 ) — — 2,163 (17 ) Collateralized Mortgage obligations — — — — — — Mortgage-backed securities 2,642 (23 ) — — 2,642 (23 ) Total $ 11,287 $ (60 ) $ — $ — $ 11,287 $ (60 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2019, follows: (in thousands) Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 10,113 $ (8 ) $ 2,015 $ (5 ) $ 12,128 $ (13 ) Securities of U.S. government agencies and corporations 13,187 (44 ) 1,998 (2 ) 15,185 (46 ) Obligations of states and political subdivisions 4,645 (29 ) — — 4,645 (29 ) Collateralized Mortgage obligations 21,763 (129 ) 21,132 (270 ) 42,895 (399 ) Mortgage-backed securities 11,970 (28 ) 44,433 (425 ) 56,403 (453 ) Total $ 61,678 $ (238 ) $ 69,578 $ (702 ) $ 131,256 $ (940 )

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2020
LOANS [Abstract]
Loan Portfolio, by Loan Class	The composition of the Company’s loan portfolio, by loan class, as of September 30, 2020 and December 31, 2019 was as follows: ($ in thousands) September 30, 2020 December 31, 2019 Commercial $ 331,445 $ 106,140 Commercial Real Estate 456,237 451,774 Agriculture 102,045 115,751 Residential Mortgage 67,240 64,943 Residential Construction 6,610 15,212 Consumer 20,396 26,825 983,973 780,645 Allowance for loan losses (14,456 ) (12,356 ) Net deferred origination fees and costs (3,670 ) 584 Loans, net $ 965,847 $ 768,873
Loans by Delinquency and Non-Accrual Status	The Company’s loans by delinquency and non-accrual status, as of September 30, 2020 and December 31, 2019, 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, 2020 Commercial $ 331,012 $ 139 $ 27 $ — $ 267 $ 331,445 Commercial Real Estate 450,601 246 — — 5,390 456,237 Agriculture 92,915 — — — 9,130 102,045 Residential Mortgage 67,085 — — — 155 67,240 Residential Construction 6,347 263 — — — 6,610 Consumer 19,684 17 — — 695 20,396 Total $ 967,644 $ 665 $ 27 $ — $ 15,637 $ 983,973 December 31, 2019 Commercial $ 105,741 $ — $ 133 $ — $ 266 $ 106,140 Commercial Real Estate 451,215 — 93 — 466 451,774 Agriculture 115,751 — — — — 115,751 Residential Mortgage 64,771 — — — 172 64,943 Residential Construction 15,212 — — — — 15,212 Consumer 26,472 100 — — 253 26,825 Total $ 779,162 $ 100 $ 226 $ — $ 1,157 $ 780,645
Impaired Loans, Segregated by Loan Class	Impaired loans, segregated by loan class, as of September 30, 2020 and December 31, 2019 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, 2020 Commercial $ 1,138 $ 267 $ 842 $ 1,109 $ 16 Commercial Real Estate 5,625 5,390 — 5,390 — Agriculture 9,189 9,130 — 9,130 — Residential Mortgage 1,055 155 892 1,047 162 Residential Construction 693 — 661 661 72 Consumer 813 695 74 769 1 Total $ 18,513 $ 15,637 $ 2,469 $ 18,106 $ 251 December 31, 2019 Commercial $ 1,694 $ 266 $ 1,385 $ 1,651 $ 26 Commercial Real Estate 715 466 250 716 19 Agriculture — — — — — Residential Mortgage 1,152 172 912 1,084 171 Residential Construction 724 — 691 691 56 Consumer 340 253 80 333 1 Total $ 4,625 $ 1,157 $ 3,318 $ 4,475 $ 273
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, 2020 and September 30, 2019 was as follows: ($ in thousands) Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 1,291 $ 15 $ 2,098 $ 28 Commercial Real Estate 5,549 5 600 4 Agriculture 9,137 — — — Residential Mortgage 1,057 7 1,054 29 Residential Construction 666 8 705 9 Consumer 865 14 361 1 Total $ 18,565 $ 49 $ 4,818 $ 71 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2020 and September 30, 2019 was as follows: ($ in thousands) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 1,424 $ 50 $ 2,318 $ 102 Commercial Real Estate 3,142 9 617 12 Agriculture 4,569 — 2,402 240 Residential Mortgage 1,068 22 1,253 63 Residential Construction 676 26 678 26 Consumer 598 16 374 23 Total $ 11,477 $ 123 $ 7,642 $ 466
Loans Modified as TDR's	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
Risk Ratings by Loan Class	The following table presents the risk ratings by loan class as of September 30, 2020 and December 31, 2019: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2020 Commercial $ 320,552 $ 9,907 $ 986 $ — $ — $ 331,445 Commercial Real Estate 435,391 8,699 12,147 — — 456,237 Agriculture 90,582 — 11,463 — — 102,045 Residential Mortgage 66,929 — 311 — — 67,240 Residential Construction 6,610 — — — — 6,610 Consumer 19,621 — 775 — — 20,396 Total $ 939,685 $ 18,606 $ 25,682 $ — $ — $ 983,973 December 31, 2019 Commercial $ 104,944 $ 428 $ 768 $ — $ — $ 106,140 Commercial Real Estate 427,991 17,739 6,044 — — 451,774 Agriculture 105,573 7,823 2,355 — — 115,751 Residential Mortgage 64,596 — 347 — — 64,943 Residential Construction 15,212 — — — — 15,212 Consumer 25,933 500 392 — — 26,825 Total $ 744,249 $ 26,490 $ 9,906 $ — $ — $ 780,645
Allowance for Loan Losses	The following tables detail activity in the allowance for loan losses by loan class for the and months ended . Three months ended September 30, 2020 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2020 $ 2,338 $ 7,434 $ 1,655 $ 540 $ 245 $ 224 $ 1,195 $ 13,631 Provision for loan losses (5 ) 1,075 225 133 (99 ) (24 ) (505 ) 800 Charge-offs — — — — — — — — Recoveries 1 — — — — 24 — 25 Net recoveries 1 — — — — 24 — 25 Balance as of September 30, 2020 $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 Nine months ended September 30, 2020 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2019 $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 Provision for loan losses 151 1,663 (174 ) 207 (55 ) (33 ) 491 2,250 Charge-offs (184 ) — — — — (13 ) — (197 ) Recoveries 13 — — — — 34 — 47 Net (charge-offs) recoveries (171 ) — — — — 21 — (150 ) Balance as of September 30, 2020 $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 16 $ — $ — $ 162 $ 72 $ 1 $ — $ 251 Loans collectively evaluated for impairment 2,318 8,509 1,880 511 74 223 690 14,205 Ending Balance $ 2,334 $ 8,509 $ 1,880 $ 673 $ 146 $ 224 $ 690 $ 14,456 The following table details activity in the allowance for loan losses by loan class for the and months ended . 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 (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 . ($ 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 and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended . Year ended December 31, 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 (415 ) 956 520 (251 ) (138 ) (9 ) (663 ) — Charge-offs (638 ) — (98 ) — — (43 ) — (779 ) Recoveries 209 — — 74 21 9 — 313 Net (charge-offs) recoveries (429 ) — (98 ) 74 21 (34 ) — (466 ) Ending Balance $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 Period-end amount allocated to: Loans individually evaluated for impairment $ 26 $ 19 $ — $ 171 $ 56 $ 1 $ — $ 273 Loans collectively evaluated for impairment 2,328 6,827 2,054 295 145 235 199 12,083 Balance as of December 31, 2019 $ 2,354 $ 6,846 $ 2,054 $ 466 $ 201 $ 236 $ 199 $ 12,356 The Company’s investment in loans as of , and 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, 2020 Loans individually evaluated for impairment $ 1,109 $ 5,390 $ 9,130 $ 1,047 $ 661 $ 769 $ 18,106 Loans collectively evaluated for impairment 330,336 450,847 92,915 66,193 5,949 19,627 965,867 Ending Balance $ 331,445 $ 456,237 $ 102,045 $ 67,240 $ 6,610 $ 20,396 $ 983,973 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 December 31, 2019 Loans individually evaluated for impairment $ 1,651 $ 716 $ — $ 1,084 $ 691 $ 333 $ 4,475 Loans collectively evaluated for impairment 104,489 451,058 115,751 63,859 14,521 26,492 776,170 Ending Balance $ 106,140 $ 451,774 $ 115,751 $ 64,943 $ 15,212 $ 26,825 $ 780,645

MORTGAGE OPERATIONS (Tables)

MORTGAGE OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Constant prepayment rate 18.91 % 12.10 % Discount rate 10.00 % 10.01 % Weighted average life (years) 4.18 5.50
Mortgage Servicing Rights Assets	The following table summarizes the Company’s mortgage servicing rights assets as of September 30, 2020 and December 31, 2019. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2019 Additions Reductions September 30, 2020 Mortgage servicing rights $ 1,481 $ 393 $ (305 ) $ 1,569 Valuation allowance — (305 ) — (305 ) Mortgage servicing rights, net of valuation allowance $ 1,481 $ 88 $ (305 ) $ 1,264

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020: (in thousands) September 30, 2020 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 $ 30,873 $ 30,873 $ — $ — Securities of U.S. government agencies and corporations 79,245 — 79,245 — Obligations of states and political subdivisions 32,241 — 32,241 — Collateralized mortgage obligations 78,517 — 78,517 — Mortgage-backed securities 142,493 — 142,493 — Total investments at fair value $ 363,369 $ 30,873 $ 332,496 $ — 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, 2019: (in thousands) December 31, 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 $ 43,255 $ 43,255 $ — $ — Securities of U.S. government agencies and corporations 53,912 — 53,912 — Obligations of states and political subdivisions 27,031 — 27,031 — Collateralized mortgage obligations 79,420 — 79,420 — Mortgage-backed securities 139,279 — 139,279 — Total investments at fair value $ 342,897 $ 43,255 $ 299,642 $ —
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, 2020 and December 31, 2019: (in thousands) September 30, 2020 Carrying Value Level 1 Level 2 Level 3 Mortgage servicing rights $ 1,264 $ — $ — $ 1,264 Total assets at fair value $ 1,264 $ — $ — $ 1,264 (in thousands) December 31, 2019 Carrying Value Level 1 Level 2 Level 3 Impaired loans $ 170 $ — $ — $ 170 Total assets at fair value $ 170 $ — $ — $ 170
Key Methods and Assumptions Used in Measuring Fair Value	Key methods and assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2020 and impaired loans as of December 31, 2019 were as follows: Method Assumption Inputs Mortgage servicing rights Discounted cash flows Present value of expected future cash flows was estimated using a discount rate factor of 10.00% as of September 30, 2020. A constant prepayment rate of 18.91% as of September 30, 2020 was utilized. 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.
Estimated Fair Value of Financial Instruments	The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2020 and December 31, 2019 were approximately as follows: (in thousands) September 30, 2020 December 31, 2019 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 275,643 $ 275,643 $ 111,493 $ 111,493 Certificates of deposit 2 18,142 18,751 14,700 14,984 Stock in Federal Home Loan Bank and other equity securities 3 6,480 6,480 6,574 6,574 Loans receivable: Net loans 3 965,847 921,387 768,873 723,507 Loans held-for-sale 2 4,650 4,812 4,130 4,213 Interest receivable 2 5,088 5,088 4,295 4,295 Mortgage servicing rights 3 1,264 1,264 1,481 1,631 Financial liabilities: Deposits 3 1,499,001 1,468,740 1,138,632 1,035,644 Federal Home Loan Bank advances 2 10,000 9,993 — — Interest payable 2 87 87 92 92

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 December 31, 2019 Undisbursed loan commitments $ 192,765 $ 198,534 Standby letters of credit 2,898 2,455 Commitments to sell loans 2,330 1,240 $ 197,993 $ 202,229

STOCK PLANS (Tables)

STOCK PLANS (Tables)	9 Months Ended
	Sep. 30, 2020
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended September 30, 2020. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 588,420 $ 9.31 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 588,420 $ 9.31 $ 456,692 6.94 Exercisable (vested) at End of Period 293,924 $ 7.59 $ 456,692 5.14 The following table presents the activity related to stock options for the nine months ended September 30, 2020. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 425,373 $ 8.30 Granted 178,087 $ 11.19 Expired — $ — Cancelled / Forfeited — — Exercised (15,040 ) 3.11 Options outstanding at End of Period 588,420 $ 9.31 $ 456,692 6.94 Exercisable (vested) at End of Period 293,924 $ 7.59 $ 456,692 5.14
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, 2020 is presented below: Three Months Ended September 30, 2020* Nine Months Ended September 30, 2020 Risk Free Interest Rate — 1.42 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 10.18 % * There were no stock options granted during the three months ended September 30, 2020.
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2020. 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 140,971 $ 10.84 _ _ Granted 700 8.00 Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 141,671 $ 10.82 $ 1,161,702 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2020. 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 131,661 $ 9.72 _ _ _ _ Granted 41,685 11.14 Cancelled / Forfeited (858) 10.74 Exercised/Released/Vested (30,817) 6.56 Non-vested restricted stock outstanding at End of Period 141,671 $ 10.82 $ 1,161,702 2.68
Weighted Average Assumptions Used in Valuing ESPP	A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2020 is presented below. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Risk Free Interest Rate 1.56 % 1.56 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 13.09 % 13.09 %

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]
Accumulated Other Comprehensive Income (Loss)	The following table details activity in accumulated other comprehensive income for the three months ended September 30, 2020. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income Balance as of June 30, 2020 $ 7,869 $ (1,411 ) $ (16 ) $ 6,442 Current period other comprehensive loss (89 ) — — (89 ) Balance as of September 30, 2020 $ 7,780 $ (1,411 ) $ (16 ) $ 6,353 The following table details activity in accumulated other comprehensive income for the nine months ended September 30, 2020. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income Balance as of December 31, 2019 $ 1,561 $ (1,411 ) $ (16 ) $ 134 Current period other comprehensive income 6,219 — — 6,219 Balance as of September 30, 2020 $ 7,780 $ (1,411 ) $ (16 ) $ 6,353 The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2019. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income 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 loss for the nine months ended September 30, 2019. (in thousands) Unrealized Gains on Securities Officers’ retirement plan Directors’ retirement plan Accumulated Other Comprehensive Income 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

OUTSTANDING SHARES AND EARNIN_2

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 and 2019 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic earnings per share: Net income $ 3,425 $ 3,754 $ 8,809 $ 11,145 Weighted average common shares outstanding 12,827,363 12,778,125 12,816,320 12,769,373 Basic EPS $ 0.27 $ 0.29 $ 0.69 $ 0.87 Diluted earnings per share: Net income $ 3,425 $ 3,754 $ 8,809 $ 11,145 Weighted average common shares outstanding 12,827,363 12,778,125 12,816,320 12,769,373 Effect of dilutive shares 93,971 157,559 111,028 154,151 Adjusted weighted average common shares outstanding 12,921,334 12,935,684 12,927,348 12,923,524 Diluted EPS $ 0.27 $ 0.29 $ 0.68 $ 0.86

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2020
LEASES [Abstract]
Maturities of Remaining Lease Liabilities	The table below summarizes the maturity of remaining lease liabilities at September 30, 2020 (in thousands) September 30, 2020 2020 $ 301 2021 1,229 2022 1,140 2023 1,006 2024 899 2025 and thereafter 3,080 Total lease payments 7,655 Less: interest (666 ) Present value of lease liabilities $ 6,989
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, 2020: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 302 $ 219 $ 851 $ 653 Right-of-use assets obtained in exchange for new operating lease liabilities — 3,410 221 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, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Weighted-average remaining lease term – operating leases, in years $ 7.32 $ 8.01 Weighted-average discount rate – operating leases $ 2.45 % $ 2.52 %

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details) - CARES Act [Member]	9 Months Ended
	Sep. 30, 2020
Minimum [Member]
Recently Issued Accounting Pronouncements [Abstract]
Term of payment deferrals	3 months
Maximum [Member]
Recently Issued Accounting Pronouncements [Abstract]
Term of payment deferrals	6 months

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Investment securities available-for-sale [Abstract]
Amortized cost	$ 352,451,000		$ 352,451,000		$ 340,706,000
Unrealized gains	10,978,000		10,978,000		3,131,000
Unrealized losses	(60,000)		(60,000)		(940,000)
Estimated fair value	363,369,000		363,369,000		342,897,000
Proceeds from sales, calls and maturities of available-for-sale securities	15,487,000	$ 10,974,000	47,531,000	$ 43,657,000
Gross realized gains from sales/calls of available-for-sale securities	254,000	0	342,000	47,000
Gross realized losses from sales/calls of available-for-sale securities	0	$ 0	(46,000)	$ (53,000)
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	29,738,000		29,738,000		42,667,000
Unrealized gains	1,135,000		1,135,000		601,000
Unrealized losses	0		0		(13,000)
Estimated fair value	30,873,000		30,873,000		43,255,000
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	77,912,000		77,912,000		53,525,000
Unrealized gains	1,353,000		1,353,000		433,000
Unrealized losses	(20,000)		(20,000)		(46,000)
Estimated fair value	79,245,000		79,245,000		53,912,000
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	30,619,000		30,619,000		26,311,000
Unrealized gains	1,639,000		1,639,000		749,000
Unrealized losses	(17,000)		(17,000)		(29,000)
Estimated fair value	32,241,000		32,241,000		27,031,000
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	76,359,000		76,359,000		79,470,000
Unrealized gains	2,158,000		2,158,000		349,000
Unrealized losses	0		0		(399,000)
Estimated fair value	78,517,000		78,517,000		79,420,000
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	137,823,000		137,823,000		138,733,000
Unrealized gains	4,693,000		4,693,000		999,000
Unrealized losses	(23,000)		(23,000)		(453,000)
Estimated fair value	$ 142,493,000		$ 142,493,000		$ 139,279,000

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual or Expected Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Maturity in years [Abstract]
Due in one year or less	$ 21,869
Due after one year through five years	75,120
Due after five years through ten years	21,753
Due after ten years	19,527
Subtotal	138,269
MBS & CMO	214,182
Amortized cost	352,451	$ 340,706
Maturity in years [Abstract]
Due in one year or less	22,006
Due after one year through five years	77,293
Due after five years through ten years	22,565
Due after ten years	20,495
Subtotal	142,359
MBS & CMO	221,010
Estimated fair value	$ 363,369	$ 342,897

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 11,287,000	$ 61,678,000
12 months or more, fair value	0	69,578,000
Total fair value	11,287,000	131,256,000
Less than 12 months, unrealized losses	(60,000)	(238,000)
12 Months or more, unrealized losses	0	(702,000)
Total unrealized losses	(60,000)	(940,000)
Investment securities pledged as collateral	43,601,000	37,943,000
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	0	10,113,000
12 months or more, fair value	0	2,015,000
Total fair value	0	12,128,000
Less than 12 months, unrealized losses	0	(8,000)
12 Months or more, unrealized losses	0	(5,000)
Total unrealized losses	0	(13,000)
Securities of U.S. Government Agencies and Corporations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	6,482,000	13,187,000
12 months or more, fair value	0	1,998,000
Total fair value	6,482,000	15,185,000
Less than 12 months, unrealized losses	(20,000)	(44,000)
12 Months or more, unrealized losses	0	(2,000)
Total unrealized losses	(20,000)	(46,000)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	2,163,000	4,645,000
12 months or more, fair value	0	0
Total fair value	2,163,000	4,645,000
Less than 12 months, unrealized losses	(17,000)	(29,000)
12 Months or more, unrealized losses	0	0
Total unrealized losses	(17,000)	(29,000)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	0	21,763,000
12 months or more, fair value	0	21,132,000
Total fair value	0	42,895,000
Less than 12 months, unrealized losses	0	(129,000)
12 Months or more, unrealized losses	0	(270,000)
Total unrealized losses	0	(399,000)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	2,642,000	11,970,000
12 months or more, fair value	0	44,433,000
Total fair value	2,642,000	56,403,000
Less than 12 months, unrealized losses	(23,000)	(28,000)
12 Months or more, unrealized losses	0	(425,000)
Total unrealized losses	$ (23,000)	$ (453,000)

LOANS (Details)

LOANS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)Category	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Loan Portfolio by Loan Class [Abstract]
Loans	$ 983,973		$ 780,645	$ 766,553
Allowance for loan losses	(14,456)	$ (13,631)	(12,356)	(12,287)	$ (12,838)	$ (12,822)
Net deferred origination fees and costs	(3,670)		584
Loans, net	$ 965,847		768,873
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	$ 331,445		106,140	104,913
Allowance for loan losses	$ (2,334)	(2,338)	(2,354)	(2,312)	(2,372)	(3,198)
Loan portfolio by segment	34.00%
Commercial Real Estate [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 456,237		451,774	433,698
Allowance for loan losses	$ (8,509)	(7,434)	(6,846)	(6,583)	(6,429)	(5,890)
Categories of loans | Category	2
Loan portfolio by segment	46.00%
Agriculture [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 102,045		115,751	118,516
Allowance for loan losses	$ (1,880)	(1,655)	(2,054)	(2,095)	(1,913)	(1,632)
Loan portfolio by segment	10.00%
Residential Mortgage [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 67,240		64,943	60,840
Allowance for loan losses	$ (673)	(540)	(466)	(453)	(436)	(643)
Loan portfolio by segment	7.00%
Residential Construction [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 6,610		15,212	20,214
Allowance for loan losses	$ (146)	(245)	(201)	(248)	(196)	(318)
Loan portfolio by segment	1.00%
Consumer [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	$ 20,396		26,825	28,372
Allowance for loan losses	$ (224)	$ (224)	$ (236)	$ (248)	$ (263)	$ (279)
Loan portfolio by segment	2.00%

LOANS, Non-accrual and Past Due

LOANS, Non-accrual and Past Due Loans (Details)	Sep. 30, 2020USD ($)Loan	Dec. 31, 2019USD ($)Loan	Sep. 30, 2019USD ($)
Non-accrual and Past Due Loans [Abstract]
Current & accruing	$ 967,644,000	$ 779,162,000
Nonaccrual	15,637,000	1,157,000
Total	983,973,000	780,645,000	$ 766,553,000
Commitments to lend additional funds to borrower whose loan was on non-accrual status	0
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	665,000	100,000
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	27,000	226,000
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	331,012,000	105,741,000
Nonaccrual	267,000	266,000
Total	$ 331,445,000	$ 106,140,000	104,913,000
Number of nonaccrual loans | Loan	2	3
Commercial [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 139,000	$ 0
Commercial [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	27,000	133,000
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	450,601,000	451,215,000
Nonaccrual	5,390,000	466,000
Total	$ 456,237,000	$ 451,774,000	433,698,000
Number of nonaccrual loans | Loan	4	2
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 246,000	$ 0
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	93,000
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	92,915,000	115,751,000
Nonaccrual	9,130,000	0
Total	$ 102,045,000	115,751,000	118,516,000
Number of nonaccrual loans | Loan	3
Agriculture [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 0	0
Agriculture [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Agriculture [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
Residential Mortgage [Member]
Non-accrual and Past Due Loans [Abstract]
Current & accruing	67,085,000	64,771,000
Nonaccrual	155,000	172,000
Total	$ 67,240,000	$ 64,943,000	60,840,000
Number of nonaccrual loans | Loan	1	1
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	6,347,000	15,212,000
Nonaccrual	0	0
Total	6,610,000	15,212,000	20,214,000
Residential Construction [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	263,000	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	19,684,000	26,472,000
Nonaccrual	695,000	253,000
Total	$ 20,396,000	$ 26,825,000	$ 28,372,000
Number of nonaccrual loans | Loan	4	4
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	$ 17,000	$ 100,000
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Past due & accruing	0	0
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 ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Impaired loans [Abstract]
Unpaid contractual principal balance	$ 18,513,000		$ 18,513,000		$ 4,625,000
Recorded investment with no allowance	15,637,000		15,637,000		1,157,000
Recorded investment with allowance	2,469,000		2,469,000		3,318,000
Total recorded investment	18,106,000		18,106,000		4,475,000
Related allowance	251,000		251,000		273,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	18,565,000	$ 4,818,000	11,477,000	$ 7,642,000
Interest income recognized	49,000	71,000	123,000	466,000
Risk Rating of 5 (Special Mention) or Worse [Member]
Impaired loans [Abstract]
Threshold aggregate exposure for loan to be considered impaired	500,000		500,000
Commercial [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	1,138,000		1,138,000		1,694,000
Recorded investment with no allowance	267,000		267,000		266,000
Recorded investment with allowance	842,000		842,000		1,385,000
Total recorded investment	1,109,000		1,109,000		1,651,000
Related allowance	16,000		16,000		26,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	1,291,000	2,098,000	1,424,000	2,318,000
Interest income recognized	15,000	28,000	50,000	102,000
Commercial Real Estate [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	5,625,000		5,625,000		715,000
Recorded investment with no allowance	5,390,000		5,390,000		466,000
Recorded investment with allowance	0		0		250,000
Total recorded investment	5,390,000		5,390,000		716,000
Related allowance	0		0		19,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	5,549,000	600,000	3,142,000	617,000
Interest income recognized	5,000	4,000	9,000	12,000
Agriculture [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	9,189,000		9,189,000		0
Recorded investment with no allowance	9,130,000		9,130,000		0
Recorded investment with allowance	0		0		0
Total recorded investment	9,130,000		9,130,000		0
Related allowance	0		0		0
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	9,137,000	0	4,569,000	2,402,000
Interest income recognized	0	0	0	240,000
Residential Mortgage [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	1,055,000		1,055,000		1,152,000
Recorded investment with no allowance	155,000		155,000		172,000
Recorded investment with allowance	892,000		892,000		912,000
Total recorded investment	1,047,000		1,047,000		1,084,000
Related allowance	162,000		162,000		171,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	1,057,000	1,054,000	1,068,000	1,253,000
Interest income recognized	7,000	29,000	22,000	63,000
Residential Construction [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	693,000		693,000		724,000
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	661,000		661,000		691,000
Total recorded investment	661,000		661,000		691,000
Related allowance	72,000		72,000		56,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	666,000	705,000	676,000	678,000
Interest income recognized	8,000	9,000	26,000	26,000
Consumer [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	813,000		813,000		340,000
Recorded investment with no allowance	695,000		695,000		253,000
Recorded investment with allowance	74,000		74,000		80,000
Total recorded investment	769,000		769,000		333,000
Related allowance	1,000		1,000		$ 1,000
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	865,000	361,000	598,000	374,000
Interest income recognized	$ 14,000	$ 1,000	$ 16,000	$ 23,000

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019Loan	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019USD ($)ContractLoan	Dec. 31, 2019USD ($)
Troubled Debt Restructurings [Abstract]
Period of continuous payment for reclassification of nonaccrual loans to accruing status			6 months
TDR loans	$ 2,541,000		$ 2,541,000		$ 3,413,000
Specific reserves for TDR loans	251,000		251,000		273,000
TDR loans performing in compliance with modified terms	2,469,000		2,469,000		3,318,000
Commitments to advance existing TDR loans	$ 0		$ 0		$ 0
Loans Modified as TDR's [Abstract]
Number of contracts | Contract				2
Pre-modification outstanding recorded investment				$ 189,000
Post-modification outstanding recorded investment				$ 189,000
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				$ 189,000
Post-modification outstanding recorded investment				$ 189,000

LOANS, Financing Receivables by

LOANS, Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Risk Rating by Loan Class [Abstract]
Loans	$ 983,973	$ 780,645	$ 766,553
Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	939,685	744,249
Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	18,606	26,490
Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	25,682	9,906
Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial [Member]
Risk Rating by Loan Class [Abstract]
Loans	331,445	106,140	104,913
Commercial [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	320,552	104,944
Commercial [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	9,907	428
Commercial [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	986	768
Commercial [Member] | Doubtful [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial [Member] | Loss [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
Commercial Real Estate [Member]
Risk Rating by Loan Class [Abstract]
Loans	456,237	451,774	433,698
Commercial Real Estate [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	435,391	427,991
Commercial Real Estate [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	8,699	17,739
Commercial Real Estate [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	12,147	6,044
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	102,045	115,751	118,516
Agriculture [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	90,582	105,573
Agriculture [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	7,823
Agriculture [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	11,463	2,355
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	67,240	64,943	60,840
Residential Mortgage [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	66,929	64,596
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	311	347
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	6,610	15,212	20,214
Residential Construction [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	6,610	15,212
Residential Construction [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	0
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	20,396	26,825	$ 28,372
Consumer [Member] | Pass [Member]
Risk Rating by Loan Class [Abstract]
Loans	19,621	25,933
Consumer [Member] | Special Mention [Member]
Risk Rating by Loan Class [Abstract]
Loans	0	500
Consumer [Member] | Substandard [Member]
Risk Rating by Loan Class [Abstract]
Loans	775	392
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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Allowance for credit losses [Roll Forward]
Beginning balance	$ 13,631	$ 12,838	$ 12,356	$ 12,822	$ 12,822
Provision for loan losses	800	0	2,250	0	0
Charge-offs	0	(558)	(197)	(723)	(779)
Recoveries	25	7	47	188	313
Net (charge-offs) recoveries	25	(551)	(150)	(535)	(466)
Ending balance	14,456	12,287	14,456	12,287	12,356
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	251	279	251	279	273
Loans collectively evaluated for impairment	14,205	12,008	14,205	12,008	12,083
Ending balance	14,456	12,287	14,456	12,287	12,356
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	18,106	4,758	18,106	4,758	4,475
Loans collectively evaluated for impairment	965,867	761,795	965,867	761,795	776,170
Ending balance	983,973	766,553	983,973	766,553	780,645
Commercial [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	2,338	2,372	2,354	3,198	3,198
Provision for loan losses	(5)	384	151	(375)	(415)
Charge-offs	0	(446)	(184)	(596)	(638)
Recoveries	1	2	13	85	209
Net (charge-offs) recoveries	1	(444)	(171)	(511)	(429)
Ending balance	2,334	2,312	2,334	2,312	2,354
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	16	30	16	30	26
Loans collectively evaluated for impairment	2,318	2,282	2,318	2,282	2,328
Ending balance	2,334	2,312	2,334	2,312	2,354
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,109	1,849	1,109	1,849	1,651
Loans collectively evaluated for impairment	330,336	103,064	330,336	103,064	104,489
Ending balance	331,445	104,913	331,445	104,913	106,140
Commercial Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	7,434	6,429	6,846	5,890	5,890
Provision for loan losses	1,075	154	1,663	693	956
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	8,509	6,583	8,509	6,583	6,846
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	20	0	20	19
Loans collectively evaluated for impairment	8,509	6,563	8,509	6,563	6,827
Ending balance	8,509	6,583	8,509	6,583	6,846
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	5,390	596	5,390	596	716
Loans collectively evaluated for impairment	450,847	433,102	450,847	433,102	451,058
Ending balance	456,237	433,698	456,237	433,698	451,774
Agriculture [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,655	1,913	2,054	1,632	1,632
Provision for loan losses	225	280	(174)	561	520
Charge-offs	0	(98)	0	(98)	(98)
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	(98)	0	(98)	(98)
Ending balance	1,880	2,095	1,880	2,095	2,054
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	1,880	2,095	1,880	2,095	2,054
Ending balance	1,880	2,095	1,880	2,095	2,054
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	9,130	0	9,130	0	0
Loans collectively evaluated for impairment	92,915	118,516	92,915	118,516	115,751
Ending balance	102,045	118,516	102,045	118,516	115,751
Residential Mortgage [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	540	436	466	643	643
Provision for loan losses	133	17	207	(262)	(251)
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	72	74
Net (charge-offs) recoveries	0	0	0	72	74
Ending balance	673	453	673	453	466
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	162	175	162	175	171
Loans collectively evaluated for impairment	511	278	511	278	295
Ending balance	673	453	673	453	466
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	1,047	1,093	1,047	1,093	1,084
Loans collectively evaluated for impairment	66,193	59,747	66,193	59,747	63,859
Ending balance	67,240	60,840	67,240	60,840	64,943
Residential Construction [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	245	196	201	318	318
Provision for loan losses	(99)	52	(55)	(91)	(138)
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	21	21
Net (charge-offs) recoveries	0	0	0	21	21
Ending balance	146	248	146	248	201
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	72	53	72	53	56
Loans collectively evaluated for impairment	74	195	74	195	145
Ending balance	146	248	146	248	201
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	661	700	661	700	691
Loans collectively evaluated for impairment	5,949	19,514	5,949	19,514	14,521
Ending balance	6,610	20,214	6,610	20,214	15,212
Consumer [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	224	263	236	279	279
Provision for loan losses	(24)	(6)	(33)	(12)	(9)
Charge-offs	0	(14)	(13)	(29)	(43)
Recoveries	24	5	34	10	9
Net (charge-offs) recoveries	24	(9)	21	(19)	(34)
Ending balance	224	248	224	248	236
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	1	1	1	1	1
Loans collectively evaluated for impairment	223	247	223	247	235
Ending balance	224	248	224	248	236
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	769	520	769	520	333
Loans collectively evaluated for impairment	19,627	27,852	19,627	27,852	26,492
Ending balance	20,396	28,372	20,396	28,372	26,825
Unallocated [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,195	1,229	199	862	862
Provision for loan losses	(505)	(881)	491	(514)	(663)
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0	0
Ending balance	690	348	690	348	199
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	690	348	690	348	199
Ending balance	$ 690	$ 348	$ 690	$ 348	$ 199

MORTGAGE OPERATIONS (Details)

MORTGAGE OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
MORTGAGE OPERATIONS [Abstract]
Real estate mortgage loans serviced	$ 209,444,000		$ 209,444,000		$ 208,862,000
Key assumptions used in measuring the fair value of mortgage servicing rights [Abstract]
Constant prepayment rate			18.91%		12.10%
Discount rate			10.00%		10.01%
Weighted average life			4 years 2 months 4 days		5 years 6 months
Mortgage servicing rights [Roll Forward]
Beginning balance			$ 1,481,000
Additions			393,000
Reductions			(305,000)
Ending balance	1,569,000		1,569,000		$ 1,481,000
Valuation allowance [Roll Forward]
Beginning balance			0
Additions			(305,000)
Reductions			0
Ending balance	(305,000)		(305,000)		0
Mortgage servicing rights, net of valuation allowance [Roll Forward]
Beginning balance			1,481,000
Additions			88,000
Reductions			(305,000)
Ending balance	1,264,000		1,264,000
Fair value of mortgage servicing rights asset	1,264,000		1,264,000		$ 1,631,000
Contractually specified servicing fees	$ 134,000	$ 129,000	$ 396,000	$ 393,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 363,369,000	$ 342,897,000
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Mortgage servicing rights	1,264,000	1,631,000
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	363,369,000	342,897,000
Transfers between Levels [Abstract]
Transfers from Level 1 to Level 2	0
Transfers from Level 2 to Level 1	0
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	30,873,000	43,255,000
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	332,496,000	299,642,000
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]
Mortgage servicing rights	1,264,000
Impaired loans		170,000
Total assets at fair value	1,264,000	170,000
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]
Mortgage servicing rights	0
Impaired loans		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]
Mortgage servicing rights	0
Impaired loans		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]
Mortgage servicing rights	1,264,000
Impaired loans		170,000
Total assets at fair value	1,264,000	170,000
U.S. Treasury Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	30,873,000	43,255,000
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	30,873,000	43,255,000
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	30,873,000	43,255,000
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	79,245,000	53,912,000
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	79,245,000	53,912,000
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	79,245,000	53,912,000
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	32,241,000	27,031,000
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	32,241,000	27,031,000
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	32,241,000	27,031,000
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	78,517,000	79,420,000
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	78,517,000	79,420,000
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	78,517,000	79,420,000
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	142,493,000	139,279,000
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	142,493,000	139,279,000
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	142,493,000	139,279,000
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)	Sep. 30, 2020	Dec. 31, 2019
Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Selling Costs [Member] | Minimum [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Impaired loans, measurement input	0.06	0.06
Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Selling Costs [Member] | Maximum [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Impaired loans, measurement input	0.10	0.10
Discounted Cash Flows [Member] | Discount Rate Factor [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Mortgage servicing rights, measurement input	0.1000
Discounted Cash Flows [Member] | Constant Prepayment Rate [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Mortgage servicing rights, measurement input	0.1891

FAIR VALUE MEASUREMENTS, Fair V

FAIR VALUE MEASUREMENTS, Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Loans receivable [Abstract]
Mortgage servicing rights	$ 1,264,000	$ 1,631,000
Carrying Amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	275,643,000	111,493,000
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	18,142,000	14,700,000
Loans receivable [Abstract]
Loans held-for-sale	4,650,000	4,130,000
Interest receivable	5,088,000	4,295,000
Financial liabilities [Abstract]
Federal Home Loan Bank advances	10,000,000	0
Interest payable	87,000	92,000
Carrying Amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,480,000	6,574,000
Loans receivable [Abstract]
Net loans	965,847,000	768,873,000
Mortgage servicing rights	1,264,000	1,481,000
Financial liabilities [Abstract]
Deposits	1,499,001,000	1,138,632,000
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	275,643,000	111,493,000
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	18,751,000	14,984,000
Loans receivable [Abstract]
Loans held-for-sale	4,812,000	4,213,000
Interest receivable	5,088,000	4,295,000
Financial liabilities [Abstract]
Federal Home Loan Bank advances	9,993,000	0
Interest payable	87,000	92,000
Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	6,480,000	6,574,000
Loans receivable [Abstract]
Net loans	921,387,000	723,507,000
Mortgage servicing rights	1,264,000	1,631,000
Financial liabilities [Abstract]
Deposits	$ 1,468,740,000	$ 1,035,644,000

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 197,993,000	$ 202,229,000
Undisbursed Loan Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	192,765,000	198,534,000
Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	2,898,000	2,455,000
Financial Standby Letter of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	0	0
Draw on letters of credit	0	0
Performance Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	2,898,000	2,455,000
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	2,330,000	1,240,000
Reserve for Off-balance Sheet Activity [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Reserve for unfunded commitments	950,000	840,000
Derivative [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 0	$ 0

STOCK PLANS (Details)

STOCK PLANS (Details)	Jan. 23, 2020	Sep. 30, 2020
Dividends [Abstract]
Stock dividend percentage	5.00%
Dividends, date declared		Jan. 23, 2020
Dividends, date to be paid		Mar. 25, 2020

STOCK PLANS, Stock Options (Det

STOCK PLANS, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020		Sep. 30, 2020	Sep. 30, 2019
Stock options, number of shares [Roll Forward]
Balance, beginning of period (in shares)	588,420		425,373
Granted (in shares)	0		178,087
Expired (in shares)	0		0
Cancelled / Forfeited (in shares)	0		0
Exercised (in shares)	0		(15,040)
Balance, end of period (in shares)	588,420		588,420
Exercisable (vested) at end of period (in shares)	293,924		293,924
Stock options, weighted average exercise price [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 9.31		$ 8.30
Granted (in dollars per share)	0		11.19
Expired (in dollars per share)	0		0
Cancelled / Forfeited (in dollars per share)	0		0
Exercised (in dollars per share)	0		3.11
Balance, end of period (in dollars per share)	9.31		9.31
Exercisable (vested) at end of period (in dollars per share)	$ 7.59		$ 7.59
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value	$ 456,692		$ 456,692
Exercisable (vested), aggregate intrinsic value	$ 456,692		$ 456,692
Outstanding, weighted average remaining contractual term	6 years 11 months 8 days		6 years 11 months 8 days
Exercisable (vested), weighted average remaining contractual term	5 years 1 month 20 days		5 years 1 month 20 days
Weighted average fair value of options granted (in dollars per share)			$ 1.41
Intrinsic value of options exercised			$ 96,000	$ 0
Fair value of awards vested			149,000	$ 141,000
Unrecognized compensation related to non-vested stock options	$ 367,000		$ 367,000
Unrecognized compensation cost, period for recognition			2 years 6 months 10 days
Recognized compensation cost	$ 46,000		$ 134,000
Weighted average assumptions used in valuation [Abstract]
Risk free interest rate	0.00%	[1]	1.42%
Expected dividend yield	0.00%	[1]	0.00%
Expected life			5 years
Expected price volatility	0.00%	[1]	10.18%
[1]	There were no stock options granted during the three months ended September 30, 2020.

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / sharesshares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	140,971	131,661
Granted (in shares) | shares	700	41,685
Cancelled / Forfeited (in shares) | shares	0	(858)
Exercised / Released / Vested (in shares) | shares	0	(30,817)
Outstanding at end of period (in shares) | shares	141,671	141,671
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 10.84	$ 9.72
Granted (in dollars per share) | $ / shares	8	11.14
Cancelled/Forfeited (in dollars per share) | $ / shares	0	10.74
Exercised / Released / Vested (in dollars per share) | $ / shares	0	6.56
Outstanding at end of period (in dollars per share) | $ / shares	$ 10.82	$ 10.82
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 1,161,702	$ 1,161,702
Outstanding, weighted average remaining contractual term	2 years 8 months 4 days	2 years 8 months 4 days
Unrecognized compensation related to restricted stock | $	$ 816,000	$ 816,000
Unrecognized compensation cost, period for recognition		2 years 8 months 4 days
Recognized compensation cost | $	$ 96,000	$ 278,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details) - USD ($)	Jan. 23, 2020	Sep. 30, 2020	Sep. 30, 2020
Employee Stock Purchase Plan [Abstract]
Stock dividend percentage	5.00%
Dividends, date declared			Jan. 23, 2020
Dividends, date to be paid			Mar. 25, 2020
Dividends, date of record			Feb. 28, 2020
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 option at issuance date (in dollars per share)			$ 2.37
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate		1.56%	1.56%
Expected dividend yield		0.00%	0.00%
Expected life		1 year	1 year
Expected price volatility		13.09%	13.09%
2016 Amended Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Shares authorized for issuance under plan (in shares)		310,041	310,041
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 (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	$ 144,886	$ 140,793	$ 132,915	$ 124,882	$ 118,027	$ 112,461	$ 132,915	$ 112,461
Current period other comprehensive income (loss)	(89)	1,239	5,069	762	3,324	1,478	6,219	5,564
Balance	148,370	144,886	140,793	129,522	124,882	118,027	148,370	129,522
Accumulated Other Comprehensive Income (Loss) [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	6,442	5,203	134	(234)	(3,558)	(5,036)	134	(5,036)
Current period other comprehensive income (loss)	(89)	1,239	5,069	762	3,324	1,478
Balance	6,353	6,442	5,203	528	(234)	(3,558)	6,353	528
Unrealized Gains on Securities [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	7,869		1,561	935		(3,867)	1,561	(3,867)
Current period other comprehensive income (loss)	(89)			762			6,219	5,564
Balance	7,780	7,869		1,697	935		7,780	1,697
Officers' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(1,411)		(1,411)	(1,198)		(1,198)	(1,411)	(1,198)
Current period other comprehensive income (loss)	0			0			0	0
Balance	(1,411)	(1,411)		(1,198)	(1,198)		(1,411)	(1,198)
Directors' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(16)		$ (16)	29		$ 29	(16)	29
Current period other comprehensive income (loss)	0			0			0	0
Balance	$ (16)	$ (16)		$ 29	$ 29		$ (16)	$ 29

OUTSTANDING SHARES AND EARNIN_3

OUTSTANDING SHARES AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 23, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Stock dividend percentage	5.00%
Dividends, date declared								Jan. 23, 2020
Dividends, date to be paid								Mar. 25, 2020
Dividends, date of record								Feb. 28, 2020
Basic earnings per share [Abstract]
Net income		$ 3,425	$ 2,705	$ 2,679	$ 3,754	$ 3,406	$ 3,985	$ 8,809	$ 11,145
Weighted average common shares outstanding (in shares)		12,827,363			12,778,125			12,816,320	12,769,373
Basic EPS (in dollars per share)		$ 0.27			$ 0.29			$ 0.69	$ 0.87
Diluted earnings per share [Abstract]
Net income		$ 3,425	$ 2,705	$ 2,679	$ 3,754	$ 3,406	$ 3,985	$ 8,809	$ 11,145
Weighted average common shares outstanding (in shares)		12,827,363			12,778,125			12,816,320	12,769,373
Effect of dilutive shares (in shares)		93,971			157,559			111,028	154,151
Adjusted weighted average common shares outstanding (in shares)		12,921,334			12,935,684			12,927,348	12,923,524
Diluted EPS (in dollars per share)		$ 0.27			$ 0.29			$ 0.68	$ 0.86
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		404,262			226,186			404,262	226,186
Restricted Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		42,035			0			42,035	0

LEASES (Details)

LEASES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Location	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Lessee, Operating Lease, Description [Abstract]
Number of branch and administrative locations leased by the Bank | Location			10
Lease right-of-use assets	$ 6,414,000		$ 6,414,000		$ 6,962,000
Lease liabilities	6,989,000		6,989,000		7,483,000
Lease expenses	312,000	$ 277,000	932,000	$ 724,000
Maturities of Remaining Lease Liabilities [Abstract]
2020	301,000		301,000
2021	1,229,000		1,229,000
2022	1,140,000		1,140,000
2023	1,006,000		1,006,000
2024	899,000		899,000
2025 and thereafter	3,080,000		3,080,000
Total lease payments	7,655,000		7,655,000
Less: interest	(666,000)		(666,000)
Present value of lease liabilities	6,989,000		6,989,000		$ 7,483,000
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	302,000	219,000	851,000	653,000
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 3,410,000	$ 221,000	$ 7,827,000
Weighted Average Operating Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term - operating leases, in years	7 years 3 months 25 days		7 years 3 months 25 days		8 years 3 days
Weighted-average discount rate - operating leases	2.45%		2.45%		2.52%
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

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Short-term borrowings	$ 10,000,000	$ 0
Federal Home Loan Bank Advances [Member] | COVID-19 Relief and Recovery Advances Program [Member]
Short-term Debt [Line Items]
Short-term borrowings	$ 10,000,000
Interest rate	0.00%
Remaining collateral borrowing capacity with FHLB	$ 309,051,000
Federal Home Loan Bank Advances [Member] | COVID-19 Relief and Recovery Advances Program [Member] | Minimum [Member]
Short-term Debt [Line Items]
FHLB advances maturity period	2 months 12 days
Federal Home Loan Bank Advances [Member] | COVID-19 Relief and Recovery Advances Program [Member] | Maximum [Member]
Short-term Debt [Line Items]
FHLB advances maturity period	8 months 12 days
Line of Credit [Member]
Short-term Debt [Line Items]
Unsecured lines of credit with correspondent banks	$ 122,000,000