First Northern Community Bancorp (FNRN) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	000-30707
Entity Registrant Name	First Northern Community Bancorp
Entity Central Index Key	0001114927
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	68-0450397
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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,720,633

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 204,806	$ 187,417
Certificates of deposit	21,192	20,948
Investment securities - available-for-sale, at estimated fair value, net of allowance for credit losses of $0	587,660	618,092
Loans, net of allowance for credit losses of $15,579 at June 30, 2023 and $14,792 at December 31, 2022	1,017,721	970,138
Loans held-for-sale	1,011	0
Stock in Federal Home Loan Bank and other equity securities, at cost	10,518	9,440
Premises and equipment, net	9,769	6,122
Core deposit intangible	4,593	0
Interest receivable and other assets	56,213	59,204
Total Assets	1,913,483	1,871,361
Liabilities:
Demand deposits	781,041	775,173
Interest-bearing transaction deposits	423,312	448,039
Savings and MMDA's	444,126	459,307
Time, $250,000 or less	96,233	35,115
Time, over $250,000	13,964	9,240
Total deposits	1,758,676	1,726,874
Interest payable and other liabilities	18,077	19,447
Total Liabilities	1,776,753	1,746,321
Commitments and contingencies (Note 7)
Stockholders' Equity:
Common stock, no par value; 32,000,000 shares authorized at June 30, 2023, 16,000,000 shares authorized at December 31, 2022; 14,720,633 shares issued and outstanding at June 30, 2023 and 14,652,584 shares issued and outstanding at December 31, 2022	116,632	116,099
Additional paid-in capital	977	977
Retained earnings	63,326	54,492
Accumulated other comprehensive loss, net	(44,205)	(46,528)
Total Stockholders' Equity	136,730	125,040
Total Liabilities and Stockholders' Equity	$ 1,913,483	$ 1,871,361

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Investment securities - available-for-sale, at estimated fair value, allowance for loan losses	$ 0	$ 0
Loans, allowance for credit losses	$ 15,579	$ 14,792
Stockholder's Equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	32,000,000	16,000,000
Common stock, shares issued (in shares)	14,720,633	14,652,584
Common stock, shares outstanding (in shares)	14,720,633	14,652,584

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest and dividend income:
Loans	$ 13,722	$ 10,465	$ 25,099	$ 20,122
Due from banks interest bearing accounts	2,503	509	4,903	675
Investment securities
Taxable	2,673	1,933	5,356	3,661
Non-taxable	220	206	493	384
Other earning assets	165	106	343	224
Total interest and dividend income	19,283	13,219	36,194	25,066
Interest expense:
Deposits	1,501	211	2,431	420
Total interest expense	1,501	211	2,431	420
Net interest income	17,782	13,008	33,763	24,646
Provision for credit losses	2,600	300	2,600	600
Net interest income after provision for credit losses	15,182	12,708	31,163	24,046
Non-interest income:
Service charges on deposit accounts	411	451	823	894
Gains on sales of loans held-for-sale	13	50	31	118
Investment and brokerage services income	130	145	251	306
Mortgage brokerage income	0	11	10	11
Loan servicing income	66	107	130	491
Debit card income	727	657	1,381	1,280
Gains on sales/calls of available-for-sale securities	(66)	(152)	(64)	(152)
Gain on bargain purchase	0	0	1,405	0
Other income	225	223	412	462
Total non-interest income	1,506	1,492	4,379	3,410
Non-interest expenses:
Salaries and employee benefits	6,471	5,731	13,276	11,414
Occupancy and equipment	1,057	883	2,074	1,749
Data processing	997	836	2,016	1,675
Stationery and supplies	69	64	169	128
Advertising	65	74	211	177
Directors' fees	85	73	151	136
Amortization of core deposit intangible	226	0	377	0
Other expense	1,397	1,667	3,377	3,151
Total non-interest expenses	10,367	9,328	21,651	18,430
Income before provision for income taxes	6,321	4,872	13,891	9,026
Provision for income taxes	1,757	1,326	3,838	2,439
Net income	$ 4,564	$ 3,546	$ 10,053	$ 6,587
Basic earnings per common share (in dollars per share)	$ 0.32	$ 0.25	$ 0.7	$ 0.46
Diluted earnings per common share (in dollars per share)	$ 0.31	$ 0.24	$ 0.69	$ 0.45

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract]
Net income	$ 4,564	$ 3,546	$ 10,053	$ 6,587
Other comprehensive income (loss), net of tax:
Unrealized holding (losses) gains arising during the period, net of tax effect of $(1,570) and $(4,335) for the three months ended June 30, 2023 and June 30, 2022, respectively, and $952 and $(12,389) for the six months ended June 30, 2023 and June 30, 2022, respectively	(3,736)	(10,749)	2,278	(30,712)
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $20 and $44 for the three months ended June 30, 2023 and June 30, 2022, respectively, and $19 and $44 for the six months ended June 30, 2023 and June 30, 2022, respectively	46	108	45	108
Other comprehensive income (loss), net of tax	(3,690)	(10,641)	2,323	(30,604)
Comprehensive income (loss)	$ 874	$ (7,095)	$ 12,376	$ (24,017)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other comprehensive income (loss), net of tax:
Unrealized holding (losses) gains arising during the period, tax	$ (1,570)	$ (4,335)	$ 952	$ (12,389)
Reclassification adjustment due to losses realized on sales of securities, tax	$ 20	$ 44	$ 19	$ 44

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Common Stock [Member] Cumulative Change, Adjusted Balance [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Cumulative Change, Adjusted Balance [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Change, Adjustment [Member]	Retained Earnings [Member] Cumulative Change, Adjusted Balance [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Cumulative Change, Adjusted Balance [Member]	Total	Cumulative Change, Adjustment [Member]	Cumulative Change, Adjusted Balance [Member]
Balance at Dec. 31, 2021	$ 109,793		$ 977		$ 44,338			$ (4,197)		$ 150,911
Balance (in shares) at Dec. 31, 2021	13,848,904
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					3,041					3,041
Other comprehensive income (loss), net of tax								(19,963)		(19,963)
Stock dividend adjustment	$ 366				(366)					0
Stock dividend adjustment (in shares)	3,276
Cash in lieu of fractional shares					(8)					(8)
Cash in lieu of fractional shares (in shares)	(161)
Stock-based compensation	$ 164									164
Common shares issued related to restricted stock grants	$ 0									0
Common shares issued related to restricted stock grants (in shares)	67,596
Stock options exercised, net of swapped shares	$ 0									0
Stock options exercised, net of swapped shares (in shares)	11,615
Stock repurchase and retirement	$ (15)									(15)
Stock repurchase and retirement (in shares)	(1,401)
Balance at Mar. 31, 2022	$ 110,308		977		47,005			(24,160)		134,130
Balance (in shares) at Mar. 31, 2022	13,929,829
Balance at Dec. 31, 2021	$ 109,793		977		44,338			(4,197)		150,911
Balance (in shares) at Dec. 31, 2021	13,848,904
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income										6,587
Other comprehensive income (loss), net of tax								(30,604)		(30,604)
Balance at Jun. 30, 2022	$ 110,407		977		50,551			(34,801)		127,134
Balance (in shares) at Jun. 30, 2022	13,924,049
Balance at Dec. 31, 2021	$ 109,793		977		44,338			(4,197)		150,911
Balance (in shares) at Dec. 31, 2021	13,848,904
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]						ASU 2016-13 [Member]	ASU 2016-13 [Member]				ASU 2016-13 [Member]	ASU 2016-13 [Member]
Balance at Dec. 31, 2022	$ 116,099	$ 116,099	977	$ 977	54,492	$ (916)	$ 53,576	(46,528)	$ (46,528)	125,040	$ (916)	$ 124,124
Balance (in shares) at Dec. 31, 2022	14,652,584	14,652,584
Balance at Mar. 31, 2022	$ 110,308		977		47,005			(24,160)		134,130
Balance (in shares) at Mar. 31, 2022	13,929,829
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					3,546					3,546
Other comprehensive income (loss), net of tax								(10,641)		(10,641)
Stock-based compensation	$ 168									168
Common shares issued related to restricted stock grants	$ 0									0
Common shares issued related to restricted stock grants (in shares)	1,500
Stock repurchase and retirement	$ (69)									(69)
Stock repurchase and retirement (in shares)	(7,280)
Balance at Jun. 30, 2022	$ 110,407		977		50,551			(34,801)		127,134
Balance (in shares) at Jun. 30, 2022	13,924,049
Balance at Dec. 31, 2022	$ 116,099	$ 116,099	977	977	54,492	(916)	53,576	(46,528)	(46,528)	125,040	(916)	124,124
Balance (in shares) at Dec. 31, 2022	14,652,584	14,652,584
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					5,489					5,489
Other comprehensive income (loss), net of tax								6,013		6,013
Stock dividend adjustment	$ 296				(296)					0
Stock dividend adjustment (in shares)	3,525
Cash in lieu of fractional shares					(7)					(7)
Cash in lieu of fractional shares (in shares)	(164)
Stock-based compensation	$ 192									192
Common shares issued related to restricted stock grants	$ 0									0
Common shares issued related to restricted stock grants (in shares)	72,242
Stock options exercised, net of swapped shares	$ 0									0
Stock options exercised, net of swapped shares (in shares)	11,000
Stock repurchase and retirement	$ (26)									(26)
Stock repurchase and retirement (in shares)	(3,580)
Balance at Mar. 31, 2023	$ 116,561		977		58,762			(40,515)		135,785
Balance (in shares) at Mar. 31, 2023	14,735,607
Balance at Dec. 31, 2022	$ 116,099	$ 116,099	977	$ 977	54,492	$ (916)	$ 53,576	(46,528)	$ (46,528)	125,040	$ (916)	$ 124,124
Balance (in shares) at Dec. 31, 2022	14,652,584	14,652,584
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income										10,053
Other comprehensive income (loss), net of tax								2,323		2,323
Balance at Jun. 30, 2023	$ 116,632		977		63,326			(44,205)		136,730
Balance (in shares) at Jun. 30, 2023	14,720,633
Balance at Mar. 31, 2023	$ 116,561		977		58,762			(40,515)		135,785
Balance (in shares) at Mar. 31, 2023	14,735,607
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					4,564					4,564
Other comprehensive income (loss), net of tax								(3,690)		(3,690)
Stock-based compensation	$ 188									188
Common shares issued related to restricted stock grants										0
Common shares issued related to restricted stock grants (in shares)	1,500
Stock repurchase and retirement	$ (117)									(117)
Stock repurchase and retirement (in shares)	(16,474)
Balance at Jun. 30, 2023	$ 116,632		$ 977		$ 63,326			$ (44,205)		$ 136,730
Balance (in shares) at Jun. 30, 2023	14,720,633

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities
Net income	$ 10,053	$ 6,587
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	480	383
Accretion and amortization of investment securities premiums and discounts, net	1,150	2,523
Valuation adjustment on mortgage servicing rights	0	(276)
Increase (decrease) in deferred loan origination fees and costs, net	553	(2,252)
Amortization of core deposit intangible	377	0
Provision for credit losses	2,600	600
Stock-based compensation	380	332
Losses on sales/calls of available-for-sale securities	64	152
Amortization of operating lease right-of-use asset	536	560
Gains on sales of loans held-for-sale	(31)	(118)
Proceeds from sales of loans held-for-sale	1,945	8,796
Originations of loans held-for-sale	(2,925)	(7,615)
Gain on bargain purchase	(1,405)	0
Changes in assets and liabilities:
Decrease (increase) in interest receivable and other assets	828	(1,634)
Decrease in interest payable and other liabilities	(1,617)	(2,139)
Net cash provided by operating activities	12,988	5,899
Cash Flows From Investing Activities
Proceeds from calls or maturities of available-for-sale securities	15,265	8,590
Proceeds from sales of available-for-sale securities	16,986	6,349
Principal repayments on available-for-sale securities	36,202	54,926
Purchases of available-for-sale securities	(35,941)	(121,041)
Proceeds from maturities of certificates of deposit	1,963	3,926
Proceeds from sales of certificates of deposit	0	493
Purchases of certificates of deposit	(2,207)	(2,480)
Net increase in loans	(46,730)	(77,565)
Purchases of Federal Home Loan Bank stock and other equity securities, at cost	(1,078)	(2,343)
Purchases of premises and equipment	(506)	(12)
Cash and cash equivalents acquired in acquisition	103,425	0
Net cash provided by (used in) investing activities	87,379	(129,157)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(82,828)	22,893
Cash dividends paid in lieu of fractional shares	(7)	(8)
Repurchases of common stock	(143)	(84)
Net cash (used in) provided by financing activities	(82,978)	22,801
Net increase (decrease) in Cash and Cash Equivalents	17,389	(100,457)
Cash and Cash Equivalents, beginning of period	187,417	345,929
Cash and Cash Equivalents, end of period	204,806	245,472
Cash paid during the period for:
Interest	2,000	395
Income taxes	0	2,610
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed	5,652	6,992
Unrealized holding gains (losses) on available for sale securities, net of taxes	2,323	(30,604)
Market value of shares tendered in-lieu of cash to pay for exercise of options	81	65
Recognition of right-of-use assets obtained in exchange for operating lease liabilities	245	707
Non-cash assets acquired (liabilities assumed) in acquisition:
Total assets acquired	12,612	0
Total liabilities assumed	$ (115,916)	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2023
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 for interim financial information and have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission . Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements 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	6 Months Ended
	Jun. 30, 2023
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, 2022. 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. The following accounting policies were updated from those disclosed in the Form 10-K for the year ended December 31, 2022 and were effective as of January 1, 2023. Allowance for Credit Losses – Available-For-Sale Securities For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is excluded from the estimate of credit losses. Accrued interest receivable on available-for-sale debt securities totaled $1,999,000 and $2,151,000 as of June 30, 2023 and December 31, 2022, respectively, and is included in interest receivable and other assets Allowance for Credit Losses – Loans The allowance for credit losses (ACL) is a valuation account that is deducted from the loan’s amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the ACL using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In determining the ACL, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including historical credit losses, have been statistically correlated with various econometrics, including California unemployment rate, and California gross domestic product. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. The Company utilized a reasonable and supportable forecast period of approximately eight quarters and obtained the forecast data from Moody’s Analytics. The Company also considered the impact of portfolio concentrations, changes in underwriting practices, imprecision in its economic forecasts, and other risk factors that might influence its loss estimation process. Loans that do not share similar risk characteristics are individually evaluated by management for potential impairment. Included in loans individually evaluated are collateral dependent loans. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are considered to have unique risk characteristics and are individually evaluated. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments to evaluate and measure the ACL: Commercial 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 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. Agriculture 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, fire, 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 Residential construction loans Consumer 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, inflation and demand shifts. Unfunded commitments Accrued interest receivable on loans is not included in the calculation of the allowance for credit losses. Accrued interest receivable on loans totaled $4,387,000 and $3,594,000 as of June 30, 2023 and December 31, 2022, respectively, and is included in interest receivable and other assets Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase consideration over the fair value of acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill and a deficit is recognized as a bargain purchase gain. Goodwill and intangible assets acquired in a business combination and that are determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has no goodwill arising from business combinations. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets arising from business combinations are amortized on an accelerated basis reflecting the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. The estimated life of the core deposit intangible is approximately 10 years. Accounting Standards Adopted in 2023 On January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Upon adoption of ASU 2016-13, the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. Results for the reporting periods beginning January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption of CECL, the Company recognized an increase in the ACL for loans and reserve for unfunded commitments totaling $1,300,000 as a cumulative effect adjustment from change in accounting policies, with a corresponding decrease in retained earnings of $916,000, net of deferred taxes of $384,000. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Recently Issued Accounting Pronouncements In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury securities $ 115,926 $ 1 $ (5,050 ) $ 110,877 Securities of U.S. government agencies and corporations 120,835 — (8,879 ) 111,956 Obligations of states and political subdivisions 48,924 2 (4,936 ) 43,990 Collateralized mortgage obligations 113,363 — (19,397 ) 93,966 Mortgage-backed securities 251,010 13 (24,152 ) 226,871 Total debt securities $ 650,058 $ 16 $ (62,414 ) $ 587,660 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2022 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury securities $ 119,644 $ 13 $ (5,842 ) $ 113,815 Securities of U.S. government agencies and corporations 128,697 20 (9,806 ) 118,911 Obligations of states and political subdivisions 58,955 13 (5,642 ) 53,326 Collateralized mortgage obligations 114,983 — (19,633 ) 95,350 Mortgage-backed securities 261,505 56 (24,871 ) 236,690 Total debt securities $ 683,784 $ 102 $ (65,794 ) $ 618,092 The Company had $9,785,000 and $6,349,000 in proceeds from sales of available-for-sale securities for the three-month periods ended June 30, 2023 and 2022, respectively. The Company had $16,986,000 and $6,349,000 in proceeds from sales of available-for-sale securities for the six-month periods ended June 30, 2023 and 2022, respectively. Gross realized gains on sales of available-for-sale securities were $38,000 and $0 for the three-month periods ended June 30, 2023 and 2022, respectively. Gross realized gains on sales of available-for-sale securities were $96,000 and $0 for the six-month periods ended June 30, 2023 and 2022, respectively. Gross realized losses on sales of available-for-sale securities were $104,000 and $152,000 for the three-month periods ended June 30, 2023 and 2022, respectively. Gross realized losses on sales of available-for-sale securities were $160,000 and $152,000 for the six-month periods ended June 30, 2023 and 2022, respectively. The amortized cost and estimated fair value of debt and other securities at June 30, 2023, by contractual maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 81,976 $ 80,271 Due after one year through five years 154,651 143,425 Due after five years through ten years 22,207 19,626 Due after ten years 26,851 23,501 Subtotal 285,685 266,823 Mortgage-backed securities & Collateralized mortgage obligations 364,373 320,837 Total $ 650,058 $ 587,660 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 June 30, 2023, 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 $ 20,249 $ (203 ) $ 88,156 $ (4,847 ) $ 108,405 $ (5,050 ) Securities of U.S. government agencies and corporations 15,013 (183 ) 96,943 (8,696 ) 111,956 (8,879 ) Obligations of states and political subdivisions 12,066 (222 ) 31,174 (4,714 ) 43,240 (4,936 ) Collateralized mortgage obligations 11,172 (233 ) 82,794 (19,164 ) 93,966 (19,397 ) Mortgage-backed securities 33,276 (975 ) 190,719 (23,177 ) 223,995 (24,152 ) Total $ 91,776 $ (1,816 ) $ 489,786 $ (60,598 ) $ 581,562 $ (62,414 ) Ninety securities, all considered investment grade, which had an aggregate fair value of $91,776,000 and a total unrealized loss of $1,816,000, have been in an unrealized loss position for less than twelve months as of June 30, 2023. Four hundered and seventy three The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2022, 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 $ 54,574 $ (1,680 ) $ 56,872 $ (4,162 ) $ 111,446 $ (5,842 ) Securities of U.S. government agencies and corporations 45,261 (1,341 ) 69,635 (8,465 ) 114,896 (9,806 ) Obligations of states and political subdivisions 40,479 (3,022 ) 10,049 (2,620 ) 50,528 (5,642 ) Collateralized Mortgage obligations 36,040 (2,586 ) 59,310 (17,047 ) 95,350 (19,633 ) Mortgage-backed securities 99,250 (6,131 ) 131,951 (18,740 ) 231,201 (24,871 ) Total $ 275,604 $ (14,760 ) $ 327,817 $ (51,034 ) $ 603,421 $ (65,794 ) Investment securities carried at $43,449,000 and $44,319,000 at June 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.

LOANS AND ALLOWANCE FOR CREDIT

LOANS AND ALLOWANCE FOR CREDIT LOSSES	6 Months Ended
	Jun. 30, 2023
LOANS AND ALLOWANCE FOR CREDIT LOSSES [Abstract]
LOANS AND ALLOWANCE FOR CREDIT LOSSES	4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the Company’s loan portfolio, by loan class, as of June 30, 2023 and December 31, 2022 was as follows: ($ in thousands) June 30, 2023 December 31, 2022 Commercial $ 100,849 $ 106,771 Commercial Real Estate 702,410 645,166 Agriculture 103,772 114,040 Residential Mortgage 98,521 92,669 Residential Construction 12,407 10,167 Consumer 15,064 15,287 1,033,023 984,100 Allowance for credit losses (15,579 ) (14,792 ) Net deferred origination fees and costs 277 830 Loans, net $ 1,017,721 $ 970,138 At June 30, 2023 and December 31, 2022, all loans were pledged under a blanket collateral lien to secure actual or potential borrowings from the Federal Home Loan Bank (“FHLB”). Allowance for Credit Losses (ACL) The following table summarizes the activity in the ACL on loans by loan class for the three and six months ended June 30, 2023. Three Months Ended June 30, 2023 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of March 31, 2023 $ 1,750 $ 9,155 $ 873 $ 1,678 $ 417 $ 365 $ 1,246 $ 15,484 Provision for credit losses (36 ) 895 2,633 146 70 1 (1,109 ) 2,600 Charge-offs (51 ) — (2,567 ) — — — — (2,618 ) Recoveries 112 — — — — 1 — 113 Net charge-offs 61 — (2,567 ) — — 1 — (2,505 ) Balance as of June 30, 2023 $ 1,775 $ 10,050 $ 939 $ 1,824 $ 487 $ 367 $ 137 $ 15,579 Six Months Ended June 30, 2023 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2022 prior to adoption of ASC 326 $ 1,463 $ 10,073 $ 1,757 $ 880 $ 178 $ 173 $ 268 $ 14,792 Impact of adopting ASC 326 623 (464 ) (671 ) 834 200 201 77 800 Balance as of January 1, 2023, post adoption of ASC 326 2,086 9,609 1,086 1,714 378 374 345 15,592 Provision for credit losses (268 ) 441 2,420 113 109 (7 ) (208 ) 2,600 Charge-offs (178 ) — (2,567 ) (3 ) — (1 ) — (2,749 ) Recoveries 135 — — — — 1 — 136 Net charge-offs (43 ) — (2,567 ) (3 ) — — — (2,613 ) Balance as of June 30, 2023 $ 1,775 $ 10,050 $ 939 $ 1,824 $ 487 $ 367 $ 137 $ 15,579 During . The following table summarizes the activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of March 31, 2022 $ 1,747 $ 9,380 $ 1,607 $ 754 $ 135 $ 191 $ 444 $ 14,258 Provision for (reversal of) loan losses 183 191 87 48 16 (9 ) (216 ) 300 Charge-offs (297 ) — — — — (5 ) — (302 ) Recoveries 17 — — — — 2 — 19 Net (charge-offs)/recoveries (280 ) — — — — (3 ) — (283 ) Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275 Six Months Ended June 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2021 $ 1,604 $ 8,808 $ 1,482 $ 742 $ 74 $ 167 $ 1,075 $ 13,952 Provision for (reversal of) loan losses 319 763 212 60 77 16 (847 ) 600 Charge-offs (297 ) — — — — (9 ) — (306 ) Recoveries 24 — — — — 5 — 29 Net (charge-offs)/recoveries (273 ) — — — — (4 ) — (277 ) Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275 Collateral-Dependent Loans In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. All loans individually analyzed were collateral-dependent loans as of June 30, 2023 and December 31, 2022. The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses as of June 30, 2023 and December 31, 2022: June 30, 2023 ($ in thousands) Secured by 1-4 Family Residential Properties-1st lien Secured by 1-4 Family Residential Properties-junior lien Secured by 1-4 Family Residential Properties- revolving Commercial Construction and land development Secured by farmland Agriculture production loans Total Commercial $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate — — — — — — — — Agriculture — — — — — 1,054 4,109 5,163 Residential Mortgage 412 — — — — — — 412 Residential Construction — — — — — — — — Consumer — 388 205 — — — — 593 Total $ 412 $ 388 $ 205 $ — $ — $ 1,054 $ 4,109 $ 6,168 December 31, 2022 ($ in thousands) Secured by 1-4 Family Residential Properties-1st lien Secured by 1-4 Family Residential Properties-junior lien Secured by 1-4 Family Residential Properties- revolving Commercial Construction and land development Secured by farmland Agriculture production loans Total Commercial $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate — — — — — — — — Agriculture — — — — — 1,148 6,268 7,416 Residential Mortgage 123 — — — — — — 123 Residential Construction — — — — — — — — Consumer — — 637 — — — — 637 Total $ 123 $ — $ 637 $ — $ — $ 1,148 $ 6,268 $ 8,176 Foreclosure Proceedings The Company had no residential real estate property in the process of foreclosure at June 30, 2023 and December 31, 2022. Non-accrual and Past Due Loans The Company’s loans by delinquency and non-accrual status, as of June 30, 2023 and December 31, 2022, was as follows: ($ in thousands) 30-59 days Past Due Accruing 60-89 days Past Due Accruing 90 days or More Past Due & Accruing Nonaccrual Loans Total Past Due & Nonaccrual Loans Current & Accruing Loans Total Loans Nonaccrual loans with No ACL June 30 2023 Commercial $ — $ — $ 403 $ — $ 403 $ 100,446 $ 100,849 $ — Commercial Real Estate — — — — — 702,410 702,410 — Agriculture — — — 5,163 5,163 98,609 103,772 5,163 Residential Mortgage 339 — — 412 751 97,770 98,521 412 Residential Construction — — — — — 12,407 12,407 — Consumer 200 84 — 593 877 14,187 15,064 593 Total $ 539 $ 84 $ 403 $ 6,168 $ 7,194 $ 1,025,829 $ 1,033,023 $ 6,168 December 31, 2022 Commercial $ 41 $ — $ 403 $ — $ 444 $ 106,327 $ 106,771 $ — Commercial Real Estate — — — — — 645,166 645,166 — Agriculture — — — 7,416 7,416 106,624 114,040 7,416 Residential Mortgage — — — 123 123 92,546 92,669 123 Residential Construction — — — — — 10,167 10,167 — Consumer — — — 637 637 14,650 15,287 637 Total $ 41 $ — $ 403 $ 8,176 $ 8,620 $ 975,480 $ 984,100 $ 8,176 The Company recognized $1,285,000 and $13,000 of interest income on nonaccrual loans during the three months ended June 30, 2023 and June 30, 2022, respectively. The Company recognized $1,285,000 and $28,000 of interest income on nonaccrual loans during the six months ended June 30, 2023 and June 30, 2022, respectively. Loan Modifications On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Occasionally, the Company modifies loans to borrowers in financial difficulty by providing principal forgiveness, term extension, payment delays or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following tables present the amortized cost basis of loans that were experiencing both financial difficulty and modification during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below. The amortized cost basis of loans that were experiencing both financial difficulty and modification during the three months ended June 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ — — Commercial Real Estate — 400 0.06 % Agriculture 4,005 — 3.86 % Residential Mortgage — — — Residential Construction — — — Consumer — — — Total $ 4,005 $ 400 3.92 % The amortized cost basis of loans that were experiencing both financial difficulty and modification during the six months ended June 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ 50 0.05 % Commercial Real Estate — 400 0.06 % Agriculture 4,005 — 3.86 % Residential Mortgage — — — Residential Construction — — — Consumer — — — Total $ 4,005 $ 450 3.97 % The Company had no commitments to lend additional funds to borrowers whose loans were modified at June 30, 2023. The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the three-month period ended June 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial — $ — Commercial Real Estate 0.25 % 26 Agriculture — 4 Residential Mortgage — — Residential Construction — — Consumer — — Total 0.25 % $ 6 The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the six-month period ended June 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial 0.50 % $ 38 Commercial Real Estate 0.25 % 26 Agriculture — 4 Residential Mortgage — — Residential Construction — — Consumer — — Total 0.28 % $ 6 There were two agricultural loans totaling $4,005,000 that were modified within the previous twelve months and for which there was a payment default during the three and six months ended June 30, 2023. The Company recorded charge-offs on these two agricultural loans totaling $2,567,000 during the three and six months ended June 30, 2023. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently become uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a troubled debt restructuring (TDR). The Company had $8,399,000 in TDR loans as of December 31, 2022. Specific reserves for TDR loans totaled $77,000 as of December 31, 2022. TDR loans performing in compliance with modified terms totaled $8,399,000 as of December 31, 2022. There were no loans modified as TDRs during the three months ended June 30, 2022. Loans modified as TDRs during the six months ended June 30, 2022 were as follows: ($ in thousands) Six months ended June 30, 2022 Number of Contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 75 $ 75 Total 1 $ 75 $ 75 There were no loans modified as a TDR within the previous twelve months that subsequently defaulted during the three and six month periods ended June 30, 2022. 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, 2022. The following tables present the loan portfolio by loan class, origination year, and internal risk rating as of June 30, 2023. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to permanent loans, are presented by year of origination. Revolving loans converted to term loans totaled $358,000 during the six months ended June 30, 2023. (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 5,567 $ 20,674 $ 24,445 $ 6,750 $ 8,928 $ 9,593 $ 22,281 $ 98,238 Special Mention — — — — — — — — Substandard 47 — 1,996 568 — — — 2,611 Doubtful/Loss — — — — — — — — Total Commercial loans $ 5,614 $ 20,674 $ 26,441 $ 7,318 $ 8,928 $ 9,593 $ 22,281 $ 100,849 Year-to-date Period Write-offs — (91 ) — — (87 ) — — (178 ) Year-to-date Recoveries — — — — 86 49 — 135 Year-to-date Net Write-offs — (91 ) — — (1 ) 49 — (43 ) Commercial Real Estate Pass $ 74,538 $ 173,787 $ 201,926 $ 45,638 $ 58,982 $ 126,251 $ 7,035 $ 688,157 Special Mention — — — 855 2,927 — — 3,782 Substandard 400 — 171 2,136 6,736 1,028 — 10,471 Doubtful/Loss — — — — — — — — Total Commercial Real Estate loans $ 74,938 $ 173,787 $ 202,097 $ 48,629 $ 68,645 $ 127,279 $ 7,035 $ 702,410 Year-to-date Write-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — — — — Agriculture Pass $ 6,235 $ 21,015 $ 23,921 $ 9,038 $ 4,470 11,857 $ 21,009 $ 97,545 Special Mention — — — — — 1,064 — 1,064 Substandard — — 1,572 — — — 3,591 5,163 Doubtful/Loss — — — — — — — — Total Agriculture loans $ 6,235 $ 21,015 $ 25,493 $ 9,038 $ 4,470 $ 12,921 $ 24,600 $ 103,772 Year-to-date Write-offs (1,825 ) — — — — — (742 ) (2,567 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs (1,825 ) — — — — — (742 ) (2,567 ) (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential Mortgage Pass $ 10,396 $ 23,601 $ 27,060 $ 14,931 $ 6,134 $ 15,948 $ — $ 98,070 Special Mention — — — — — — — — Substandard — — 39 — — 412 — 451 Doubtful/Loss — — — — — — — — Total Residential Mortgage loans $ 10,396 $ 23,601 $ 27,099 $ 14,931 $ 6,134 $ 16,360 $ — $ 98,521 Year-to-date Write-offs — — — — — (3 ) — (3 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — (3 ) — (3 ) Residential Construction Pass $ 2,536 $ 6,160 $ 3,711 $ — $ — $ — $ — $ 12,407 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful/Loss — — — — — — — — Total Residential Construction loans $ 2,536 $ 6,160 $ 3,711 $ — $ — $ — $ — $ 12,407 Year-to-date Write-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — — — — Consumer Pass $ 314 $ 822 $ 144 $ 197 $ 68 $ 447 $ 12,479 $ 14,471 Special Mention — — — — — — — — Substandard — — — — — — 593 593 Doubtful/Loss — — — — — — — — Total Consumer loans $ 314 $ 822 $ 144 $ 197 $ 68 $ 447 $ 13,072 $ 15,064 Year-to-date Write-offs (1 ) — — — — — — (1 ) Year-to-date Recoveries — — — — — 1 — 1 Year-to-date Net Write-offs (1 ) — — — — 1 — — Total Loans Pass $ 99,586 $ 246,059 $ 281,207 $ 76,554 $ 78,582 $ 164,096 $ 62,804 $ 1,008,888 Special Mention — — — 855 2,927 1,064 — 4,846 Substandard 447 — 3,778 2,704 6,736 1,440 4,184 19,289 Doubtful/Loss — — — — — — — — Total Loans $ 100,033 $ 246,059 $ 284,985 $ 80,113 $ 88,245 $ 166,600 $ 66,988 $ 1,033,023 Year-to-date Write-offs $ (1,826 ) $ (91 ) $ — $ — $ (87 ) $ (3 ) $ (742 ) $ (2,749 ) Year-to-date Recoveries $ — $ — $ — $ — $ 86 $ 50 $ — $ 136 Year-to-date Net Write-offs $ (1,826 ) $ (91 ) $ — $ — $ (1 ) $ 47 $ (742 ) $ (2,613 ) The following table presents the risk ratings by loan class as of December 31, 2022. Pass Special Substandard Doubtful Loss Total December 31, 2022 Commercial $ 106,643 $ — $ 128 $ — $ — $ 106,771 Commercial Real Estate 631,693 6,748 6,725 — — 645,166 Agriculture 105,560 1,064 7,416 — — 114,040 Residential Mortgage 92,299 207 163 — — 92,669 Residential Construction 10,167 — — — — 10,167 Consumer 14,650 — 637 — — 15,287 Total $ 961,012 $ 8,019 $ 15,069 $ — $ — $ 984,100

MORTGAGE OPERATIONS

MORTGAGE OPERATIONS	6 Months Ended
	Jun. 30, 2023
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 servicing rights on loans sold are measured by allocating the previous carrying amount of the transferred assets between the loans sold and retained interest, 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 a substantial portion of its portfolio of conforming long-term residential mortgage loans originated during the six months ended June 30, 2023 for cash proceeds equal to the fair value of the loans. The Company serviced real estate mortgage loans for others totaling $187,504,974 and $194,818,000 at The recorded value of mortgage servicing rights is amortized in proportion to, and over the period of, estimated net servicing revenues. The Company assesses capitalized mortgage servicing rights for impairment based upon the fair value of those rights at each reporting date. For purposes of measuring impairment, the rights are stratified based upon the product type, term and interest rates. Fair value is determined by discounting estimated net future cash flows from mortgage servicing activities using discount rates that approximate current market rates and estimated prepayment rates, among other assumptions. The amount of impairment recognized, if any, is the amount by which the capitalized mortgage servicing rights for a stratum exceeds their fair value. Impairment, if any, is recognized through a valuation allowance for each individual stratum. Changes in the carrying amount of mortgage servicing rights are reported in earnings under other operating income on the condensed consolidated statements of income. Key assumptions used in measuring the fair value of mortgage servicing rights as of June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Constant prepayment rate 7.58 % 7.55 % Discount rate 9.50 % 9.50 % Weighted average life (years) 7.12 7.20 The following table summarizes the Company’s mortgage servicing rights assets as of June 30, 2023 and December 31, 2022. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets. (in thousands) December 31, 2022 Additions Reductions June 30, 2023 Mortgage servicing rights $ 1,650 $ 14 $ (123 ) $ 1,541 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,650 $ 14 $ (123 ) $ 1,541 At June 30, 2023 and December 31, 2022, the estimated fair market value of the Company’s mortgage servicing rights assets was $2,002,000 and $2,101,000, respectively. The changes in fair value of mortgage servicing rights during 2023 was primarily due to a decrease in the amount of mortgage loans serviced coupled with changes in prepayment speeds. The Company received contractually specified servicing fees of $119,000 and $129,000 for the three months ended June 30, 2023 and June 30, 2022, respectively. The Company received contractually specified servicing fees of $240,000 and $259,000 for the six months ended June 30, 2023 and June 30, 2022, respectively. Loan servicing income on the condensed consolidated statements of income include contractually specified servicing fees, mortgage servicing rights additions, amortization and changes in the valuation allowance.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 and December 31, 2022. (in thousands) June 30 2023 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 $ 110,877 $ 110,877 $ — $ — Securities of U.S. government agencies and corporations 111,956 — 111,956 — Obligations of states and political subdivisions 43,990 — 43,990 — Collateralized mortgage obligations 93,966 — 93,966 — Mortgage-backed securities 226,871 — 226,871 — Total investments at fair value $ 587,660 $ 110,877 $ 476,783 $ — (in thousands) December 31, 2022 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 $ 113,815 $ 113,815 $ — $ — Securities of U.S. government agencies and corporations 118,911 — 118,911 — Obligations of states and political subdivisions 53,326 — 53,326 — Collateralized mortgage obligations 95,350 — 95,350 — Mortgage-backed securities 236,690 — 236,690 — Total investments at fair value $ 618,092 $ 113,815 $ 504,277 $ — Assets Recorded at Fair Value on a Non-Recurring Basis The table below presents the recorded amount of assets measured at fair value on a nonrecurring basis that had a write-down or an additional allowance provided during the period ended June 30, 2023 (in thousands) June 30, 2023 Carrying Value Level 1 Level 2 Level 3 Individually evaluated loans $ 1,439 $ — $ — $ 1,439 Total assets at fair value $ 1,439 $ — $ — $ 1,439 There were no assets measured at fair value on a non-recurring basis as of December 31, 2022. There were no liabilities measured at fair value on a recurring or non-recurring basis at June 30, 2023 and December 31, 2022. Key methods and assumptions used in measuring the fair value of collateral dependent loans as of June 30, 2023 were as follows: Method Assumption Inputs Individually evaluated 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. Individually Evaluated Loans The Company does not record loans at fair value on a recurring basis. Loans that do not share similar risk characteristics are individually evaluated by management for potential impairment. Included in loans individually evaluated are collateral dependent loans. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are considered to have unique risk characteristics and are individually evaluated. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. Collateral dependent 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 collateral dependent loan as non-recurring Level 3 given the valuation includes significant unobservable assumption Disclosures about Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments for the periods ended June 30, 2023 and December 31, 2022 were approximately as follows: (in thousands) June 30, 2023 December 31, 2022 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 204,806 $ 204,806 $ 187,417 $ 187,417 Certificates of deposit 2 21,192 20,667 20,948 20,560 Stock in Federal Home Loan Bank and other equity securities 3 10,518 10,518 9,440 9,440 Loans receivable: Net loans 3 1,017,721 952,199 970,138 929,163 Loans held-for-sale 2 1,011 1,033 — — Interest receivable 2 6,386 6,386 5,745 5,745 Mortgage servicing rights 3 1,541 2,002 1,650 2,101 Financial liabilities: Time deposits 3 110,197 109,587 44,355 43,987 Interest payable 2 524 524 93 93 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	6 Months Ended
	Jun. 30, 2023
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) June 30, 2023 December 31, 2022 Undisbursed loan commitments $ 198,385 $ 205,610 Standby letters of credit 1,262 1,930 Commitments to sell loans 1,905 — $ 201,552 $ 207,540 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. The types of 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 June 30, 2023 and December 31, 2022, there were no financial standby letters of credit outstanding. The performance standby letters of credit are typically issued to municipalities as specific performance bonds. Performance standby letters of credit totaled $1,262,000 and $1,930,000 at June 30, 2023 and December 31, 2022, respectively. The Bank had experienced no draws on outstanding 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 $1,200,000 and $700,000 at June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022, the Company had no off-balance sheet derivatives requiring additional disclosure. The Company may enter into interest rate lock commitments in connection with its mortgage banking activities to fund residential mortgage loans within specified times in the future. Interest rate lock commitments totaled $2,370,000 and $0 at June 30, 2023 and December 31, 2022, respectively. These commitments expose the Company to the risk that the price of the loan underlying the interest rate lock commitment might decline from the inception of the interest rate lock commitment to the funding of the mortgage loan. To protect against this risk, the Company may enter into commitments to sell loans at specified prices to economically hedge the risk of potential changes in the value of the loans that would result from the commitment. These commitments totaled $1,905,000 and $0 at June 30, 2023 and December 31, 2022, respectively. 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	6 Months Ended
	Jun. 30, 2023
STOCK PLANS [Abstract]
STOCK PLANS	8. STOCK PLANS On January 26, 2023, the Board of Directors of the Company declared a 5% stock dividend payable as of March 24, 2023 to shareholders of record as of February 28, 2023. All stock options and restricted stock amounts 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 June 30, 2023. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 663,678 $ 8.56 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 663,678 $ 8.56 $ 240,488 4.95 Exercisable (vested) at End of Period 578,314 $ 8.39 $ 240,488 4.58 The following table presents the activity related to stock options for the six months ended June 30, 2023. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 684,837 $ 8.41 Granted — — Expired — — Cancelled / Forfeited — — Exercised (21,159 ) 3.83 Options outstanding at End of Period 663,678 $ 8.56 $ 240,488 4.95 Exercisable (vested) at End of Period 578,314 $ 8.39 $ 240,488 4.58 The intrinsic value of options exercised was $97,000 and $125,000 during the six months ended June June June June As of June There was $22,000 and $49,000 of recognized compensation cost related to stock options granted for the three and six months ended June The following table presents the activity related to non-vested restricted stock for the three months ended June 30,2023. 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 273,973 $ 9.18 Granted 1,500 7.10 Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 275,473 $ 9.17 $ 1,928,311 2.94 The following table presents the activity related to non-vested restricted stock for the six months ended June 30, 2023. 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 248,418 $ 9.34 Granted 77,351 8.49 Cancelled / Forfeited — — Exercised/Released/Vested (50,296 ) 8.96 Non-vested restricted stock outstanding at End of Period 275,473 $ 9.17 $ 1,928,311 2.94 The weighted average fair value of restricted stock granted during the six months ended June 30, 2023 was $8.49 per share. As of June 30, 2023, there was $1,539,000 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 2.94 years. There was $158,000 and $315,000 of recognized compensation cost related to restricted stock awards for the three and six months ended June 30, 2023, respectively. The Company has an Employee Stock Purchase Plan (“ESPP”). There are 358,911 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 26, 2023, payable March 24, 2023 to shareholders of record as of February 28, 2023. The ESPP will expire on March 16, 2026. The ESPP is implemented by participation periods of not more than twenty-seven months As of June 30, 2023, there was $15,000 of unrecognized compensation cost related to ESPP issuances. This cost is expected to be recognized over a weighted average period of approximately 0.50 years. There was $8,000 and $16,000 of recognized compensation cost related to ESPP issuances for the three and six months ended June 30, 2023, respectively. The weighted average fair value option at issuance date during the six months ended June 30, 2023 was $1.83 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and six months ended June 30, 2023 is presented below. Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Risk Free Interest Rate 4.75 % 4.75 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 16.58 % 16.58 %

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table details activity in accumulated other comprehensive loss for the three months ended June 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of March 31, 2023 $ (40,260 ) $ (308 ) $ 53 $ (40,515 ) Current period other comprehensive loss (3,690 ) — — (3,690 ) Balance as of June 30 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) The following table details activity in accumulated other comprehensive loss for the six months ended June 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of December 31, 2022 $ (46,273 ) $ (308 ) $ 53 $ (46,528 ) Current period other comprehensive income 2,323 — — 2,323 Balance as of June 30, 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) The following table details activity in accumulated other comprehensive loss for the three months ended June 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of March 31, 2022 $ (22,727 ) $ (1,420 ) $ (13 ) $ (24,160 ) Current period other comprehensive loss (10,641 ) — — (10,641 ) Balance as of June 30 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 ) The following table details activity in accumulated other comprehensive loss for the six months ended June 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of December 31, 2021 $ (2,764 ) $ (1,420 ) $ (13 ) $ (4,197 ) Current period other comprehensive loss (30,604 ) — — (30,604 ) Balance as of June 30, 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 )

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2023
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
OUTSTANDING SHARES AND EARNINGS PER SHARE	10. OUTSTANDING SHARES AND EARNINGS PER SHARE On January 26, 2023, the Board of Directors of the Company declared a 5% stock dividend payable March 24, 2023 to shareholders of record as of February 28, 2023. 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 six months ended June 30, 2023 and 2022 (dollars in thousands except per share amounts): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Basic earnings per share: Net income $ 4,564 $ 3,546 $ 10,053 $ 6,587 Weighted average common shares outstanding 14,454,826 14,408,458 14,438,460 14,390,219 Basic EPS $ 0.32 $ 0.25 $ 0.70 $ 0.46 Diluted earnings per share: Net income $ 4,564 $ 3,546 $ 10,053 $ 6,587 Weighted average common shares outstanding 14,454,826 14,408,458 14,438,460 14,390,219 Effect of dilutive shares 92,894 154,659 113,913 168,885 Adjusted weighted average common shares outstanding 14,547,720 14,563,117 14,552,373 14,559,104 Diluted EPS $ 0.31 $ 0.24 $ 0.69 $ 0.45 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 513,038 shares and 411,495 shares for the three months ended June 30, 2023 and 2022, respectively. Unvested 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 104,106 shares and 74,522 shares for the three months ended June 30, 2023 and 2022, 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 513,048 shares and 362,647 shares for the six months ended June 30, 2023 and 2022, respectively. Unvested 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 67,847 shares and 55,583 shares for the six months ended June 30, 2023 and 2022, respectively.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2023
LEASES [Abstract]
LEASES	11. LEASES The Company leases eleven branch and administrative locations under operating leases expiring on various dates through 2031. 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 ASU 2016-02, Leases (Topic 842), the Company combines lease and nonlease components. The Company had no financing leases as of June 30, 2023. 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 Company’s sole discretion. Most leases are currently in the extension period. For the remaining leases with options to renew, the Company 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 Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The Company uses its FHLB advance fixed rates, which are its incremental borrowing rates for secured borrowings, as the discount rates to calculate lease liabilities. The Company had right-of-use assets totaling $4,615,000 and $4,905,000 as of June 30, 2023 and December 31, 2022, respectively. The Company had lease liabilities totaling $5,119,000 and $5,422,000 as of June 30, 2023 and December 31, 2022, respectively. The Company recognized lease expense totaling $293,000 and $294,000 for the three-month periods ended June 30, 2023 and 2022, respectively, and $601,000 and $588,000 for the six-month periods ended June 30, 2023 and 2022, respectively. Lease expense includes operating lease costs, short-term lease costs and variable lease costs. Lease expense is included in occupancy and equipment expense on the condensed consolidated statements of income. The table below summarizes the maturity of remaining lease liabilities at June 30, 2023: (in thousands) June 30, 2023 2023 $ 593 2024 1,040 2025 1,052 2026 672 2027 611 2028 1,520 Total lease payments 5,488 Less: interest (369 ) Present value of lease liabilities $ 5,119 The following table presents supplemental cash flow information related to leases for the three and six months ended June 30, 2023: Three months ended June 30, Six June 30 (in thousands) 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 301 $ 304 $ 614 $ 603 Right-of-use assets obtained in exchange for new operating lease liabilities — — 245 707 The following table presents the weighted average operating lease term and discount rate as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Weighted-average remaining lease term – operating leases, in years 5.69 6.14 Weighted-average discount rate – operating leases 2.44 % 2.37 %

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2023
BUSINESS COMBINATIONS [Abstract]
BUSINESS COMBINATIONS	12. BUSINESS COMBINATIONS On January 20, 2023, the Company completed the acquisition from Columbia State Bank of three branches located in the California cities of Colusa, Willows, and Orland, in accordance with a Purchase and Assumption Agreement dated as of November 5, 2022. The acquired assets included all the real property, cash on hand, personal property, safe deposit agreements, books and records along with certain loans (including accrued interest and fees) booked at the branches or allocated by the seller to the acquired branches. The assumed liabilities primarily consisted of the deposits booked in the branches or allocated by the seller to the acquired branches. In accordance with accounting for business combinations, the Company recorded a bargain purchase gain of $1,405,000 and $4,970,000 of core deposit intangibles on the acquisition date. The core deposit intangible will be amortized using the sum of the year’s digits method over the expected life of 10 years with no significant residual value. For tax purposes, acquisition accounting adjustments including the core deposit intangible are all non-taxable and/or non-deductible. Acquisition related costs of approximately $0 and $204,000 are included in the income statement for the three and six months ended June 30, 2023 , The Company recorded the fair values based on the valuations available as of reporting date. In accordance with business combination accounting guidance, we will continue to evaluate these fair values for up to one year following the acquisition date of January 20, 2023. While management believes the information available and presented below provide a reasonable basis for estimating fair value, we may obtain additional information and evidence during the measurement period that could result in changes to the estimated fair value amounts. Valuations subject to change include, but are not limited to, loans, deposits and certain other assets and liabilities. This acquisition enabled the Company to extend its existing footprint and provided additional core deposit funding for future growth and liquidity and is expected to enhance profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region. The following table summarizes the consideration paid for the acquired branches and amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands): Acquired Branches January 20, 2023 Fair value of consideration received: Cash consideration $ 103,425 Total fair value of consideration received 103,425 Assets acquired: Cash and cash equivalents 1,284 Loans 4,006 Premises and equipment 3,621 Core deposit intangible 4,970 Other assets 15 Total assets acquired 13,896 Liabilities assumed: Deposits 115,914 Other liabilities 2 Total liabilities assumed 115,916 Total net liabilities assumed 102,020 Bargain purchase gain recognized $ 1,405 A summary of the estimated fair value adjustments resulting in the bargain purchase gain recorded in the branch acquisition are presented below (in thousands): Acquired Branches January 20, 2023 Cash consideration received $ 103,425 Less: Cost basis of net liabilities assumed (107,097 ) Fair Value Adjustments: Loans (363 ) Premises and equipment 307 Core deposit intangible 4,970 Deposits 163 Bargain purchase gain recognized $ 1,405 The loan portfolio of the acquired branches was recorded at fair value at the date of acquisition. For the purposes of the valuation analysis, the loan portfolio was segmented based on loan type and credit quality. None of the acquired loans were considered purchased credit deteriorated (PCD) at acquisition. The fair value of the acquired loans was calculated on a loan-level basis using the discounted cash flow method. The Company recorded a core deposit intangible of $4,970,000 at acquisition. A core deposit intangible refers to the intangible asset that represents the cost savings derived from available core deposits to an alternative funding source. The fair value of the core deposit intangible was calculated using a net cost savings method based on the present value of the estimated net cost savings attributable to the core deposit base over the expected remaining life of the deposits (plus the present value of the tax amortization benefit). The cost savings derived from the core deposit balance was calculated as the difference between the prevailing alternative cost of funds and the estimated cost of the core deposits. The Company assumed net liabilities, at fair value, of $102,020,000 at acquisition in exchange for cash consideration received of $103,425,000. Under accounting guidance, a bargain purchase gain results if the fair value of consideration received is more than the fair value of the liabilities assumed. Because the cash consideration received exceeded the fair value of liabilities assumed, the Company recorded a bargain purchase gain of $1,405,000 related to the branch acquisitions during the first quarter of 2023. The bargain purchase gain is separately reported as a component of non-interest income in our Condensed Consolidated Statements of Income for the six months ended June 30, 2023. We believe that we were able to negotiate a bargain purchase price primarily as a result of Columbia State Bank being required to divest of certain branches for competitive reasons (along with the associated deposits and loans) in accordance with a Letter of Agreement between Columbia State Bank, Umpqua and the Department of Justice Antitrust Division. This agreement was reached in conjunction with the Department of Justice’s required approval of the merger of Columbia State Bank and Umpqua. The required divestiture, in conjunction with the rural location of the branches acquired, allowed the Company to negotiate a favorable purchase price that, when combined with changes in market conditions between the date of agreement and the closing date, resulted in the recognition of the bargain purchase gain. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2022 (in thousands): Three months ended June 30, 2023 Three months ended June 30, 2022 Six months ended June 30, 2023 Six months ended June 30, 2022 Summarized proforma income statement data: Net interest income $ 17,782 $ 13,413 $ 34,001 $ 25,451 Provision for loan losses 2,600 300 2,600 600 Non-interest income 1,506 1,666 4,418 3,758 Non-interest expense 10,367 9,987 21,822 19,747 Income before taxes 6,321 4,792 13,997 8,862 Provision for income taxes 1,757 1,304 3,867 2,395 Net income $ 4,564 $ 3,488 $ 10,130 $ 6,467 Basic earnings per share $ 0.32 $ 0.24 $ 0.70 $ 0.45 Diluted earnings per share $ 0.31 $ 0.24 $ 0.70 $ 0.44 It is impractical to separately provide information regarding the revenue and earnings of the acquired branches included in the Company’s condensed consolidated statements of income from the January 20, 2023 acquisition date to June 30, 2023 because the operations of the acquired branches were substantially comingled with the operations of the Company as of the system conversion date of January 20, 2023.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2023
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 for interim financial information and have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission . Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements 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)	6 Months Ended
	Jun. 30, 2023
ACCOUNTING POLICIES [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses – Available-For-Sale Securities For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is excluded from the estimate of credit losses. Accrued interest receivable on available-for-sale debt securities totaled $1,999,000 and $2,151,000 as of June 30, 2023 and December 31, 2022, respectively, and is included in interest receivable and other assets Allowance for Credit Losses – Loans The allowance for credit losses (ACL) is a valuation account that is deducted from the loan’s amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the ACL using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In determining the ACL, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including historical credit losses, have been statistically correlated with various econometrics, including California unemployment rate, and California gross domestic product. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. The Company utilized a reasonable and supportable forecast period of approximately eight quarters and obtained the forecast data from Moody’s Analytics. The Company also considered the impact of portfolio concentrations, changes in underwriting practices, imprecision in its economic forecasts, and other risk factors that might influence its loss estimation process. Loans that do not share similar risk characteristics are individually evaluated by management for potential impairment. Included in loans individually evaluated are collateral dependent loans. A loan is considered to be collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are considered to have unique risk characteristics and are individually evaluated. The ACL on collateral dependent loans is measured using the fair value of the underlying collateral, adjusted for costs to sell when applicable, less the amortized cost basis of the financial asset. If the value of underlying collateral is determined to be less than the recorded amount of the loan, a charge-off will be taken. The ACL is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following portfolio segments to evaluate and measure the ACL: Commercial 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 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. Agriculture 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, fire, 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 Residential construction loans Consumer 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, inflation and demand shifts. Unfunded commitments Accrued interest receivable on loans is not included in the calculation of the allowance for credit losses. Accrued interest receivable on loans totaled $4,387,000 and $3,594,000 as of June 30, 2023 and December 31, 2022, respectively, and is included in interest receivable and other assets
Business Combinations	Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase consideration over the fair value of acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill and a deficit is recognized as a bargain purchase gain. Goodwill and intangible assets acquired in a business combination and that are determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate the necessity for such impairment tests to be performed. The Company has no goodwill arising from business combinations. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets arising from business combinations are amortized on an accelerated basis reflecting the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. The estimated life of the core deposit intangible is approximately 10 years.
Accounting Standards Adopted and Recently Issued Accounting Pronouncements	Accounting Standards Adopted in 2023 On January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Upon adoption of ASU 2016-13, the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. Results for the reporting periods beginning January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon adoption of CECL, the Company recognized an increase in the ACL for loans and reserve for unfunded commitments totaling $1,300,000 as a cumulative effect adjustment from change in accounting policies, with a corresponding decrease in retained earnings of $916,000, net of deferred taxes of $384,000. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Recently Issued Accounting Pronouncements In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury securities $ 115,926 $ 1 $ (5,050 ) $ 110,877 Securities of U.S. government agencies and corporations 120,835 — (8,879 ) 111,956 Obligations of states and political subdivisions 48,924 2 (4,936 ) 43,990 Collateralized mortgage obligations 113,363 — (19,397 ) 93,966 Mortgage-backed securities 251,010 13 (24,152 ) 226,871 Total debt securities $ 650,058 $ 16 $ (62,414 ) $ 587,660 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2022 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury securities $ 119,644 $ 13 $ (5,842 ) $ 113,815 Securities of U.S. government agencies and corporations 128,697 20 (9,806 ) 118,911 Obligations of states and political subdivisions 58,955 13 (5,642 ) 53,326 Collateralized mortgage obligations 114,983 — (19,633 ) 95,350 Mortgage-backed securities 261,505 56 (24,871 ) 236,690 Total debt securities $ 683,784 $ 102 $ (65,794 ) $ 618,092
Amortized Cost and Estimated Fair Value of Debt and Other Securities by Contractual Maturity	The amortized cost and estimated fair value of debt and other securities at June 30, 2023, by contractual maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Maturity in years: Due in one year or less $ 81,976 $ 80,271 Due after one year through five years 154,651 143,425 Due after five years through ten years 22,207 19,626 Due after ten years 26,851 23,501 Subtotal 285,685 266,823 Mortgage-backed securities & Collateralized mortgage obligations 364,373 320,837 Total $ 650,058 $ 587,660
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 June 30, 2023, 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 $ 20,249 $ (203 ) $ 88,156 $ (4,847 ) $ 108,405 $ (5,050 ) Securities of U.S. government agencies and corporations 15,013 (183 ) 96,943 (8,696 ) 111,956 (8,879 ) Obligations of states and political subdivisions 12,066 (222 ) 31,174 (4,714 ) 43,240 (4,936 ) Collateralized mortgage obligations 11,172 (233 ) 82,794 (19,164 ) 93,966 (19,397 ) Mortgage-backed securities 33,276 (975 ) 190,719 (23,177 ) 223,995 (24,152 ) Total $ 91,776 $ (1,816 ) $ 489,786 $ (60,598 ) $ 581,562 $ (62,414 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2022, 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 $ 54,574 $ (1,680 ) $ 56,872 $ (4,162 ) $ 111,446 $ (5,842 ) Securities of U.S. government agencies and corporations 45,261 (1,341 ) 69,635 (8,465 ) 114,896 (9,806 ) Obligations of states and political subdivisions 40,479 (3,022 ) 10,049 (2,620 ) 50,528 (5,642 ) Collateralized Mortgage obligations 36,040 (2,586 ) 59,310 (17,047 ) 95,350 (19,633 ) Mortgage-backed securities 99,250 (6,131 ) 131,951 (18,740 ) 231,201 (24,871 ) Total $ 275,604 $ (14,760 ) $ 327,817 $ (51,034 ) $ 603,421 $ (65,794 )

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
	Jun. 30, 2023
LOANS AND ALLOWANCE FOR CREDIT LOSSES [Abstract]
Loan Portfolio, by Loan Class	The composition of the Company’s loan portfolio, by loan class, as of June 30, 2023 and December 31, 2022 was as follows: ($ in thousands) June 30, 2023 December 31, 2022 Commercial $ 100,849 $ 106,771 Commercial Real Estate 702,410 645,166 Agriculture 103,772 114,040 Residential Mortgage 98,521 92,669 Residential Construction 12,407 10,167 Consumer 15,064 15,287 1,033,023 984,100 Allowance for credit losses (15,579 ) (14,792 ) Net deferred origination fees and costs 277 830 Loans, net $ 1,017,721 $ 970,138
Activity in ACL on Loans by Loan Class	The following table summarizes the activity in the ACL on loans by loan class for the three and six months ended June 30, 2023. Three Months Ended June 30, 2023 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of March 31, 2023 $ 1,750 $ 9,155 $ 873 $ 1,678 $ 417 $ 365 $ 1,246 $ 15,484 Provision for credit losses (36 ) 895 2,633 146 70 1 (1,109 ) 2,600 Charge-offs (51 ) — (2,567 ) — — — — (2,618 ) Recoveries 112 — — — — 1 — 113 Net charge-offs 61 — (2,567 ) — — 1 — (2,505 ) Balance as of June 30, 2023 $ 1,775 $ 10,050 $ 939 $ 1,824 $ 487 $ 367 $ 137 $ 15,579 Six Months Ended June 30, 2023 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2022 prior to adoption of ASC 326 $ 1,463 $ 10,073 $ 1,757 $ 880 $ 178 $ 173 $ 268 $ 14,792 Impact of adopting ASC 326 623 (464 ) (671 ) 834 200 201 77 800 Balance as of January 1, 2023, post adoption of ASC 326 2,086 9,609 1,086 1,714 378 374 345 15,592 Provision for credit losses (268 ) 441 2,420 113 109 (7 ) (208 ) 2,600 Charge-offs (178 ) — (2,567 ) (3 ) — (1 ) — (2,749 ) Recoveries 135 — — — — 1 — 136 Net charge-offs (43 ) — (2,567 ) (3 ) — — — (2,613 ) Balance as of June 30, 2023 $ 1,775 $ 10,050 $ 939 $ 1,824 $ 487 $ 367 $ 137 $ 15,579 The following table summarizes the activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of March 31, 2022 $ 1,747 $ 9,380 $ 1,607 $ 754 $ 135 $ 191 $ 444 $ 14,258 Provision for (reversal of) loan losses 183 191 87 48 16 (9 ) (216 ) 300 Charge-offs (297 ) — — — — (5 ) — (302 ) Recoveries 17 — — — — 2 — 19 Net (charge-offs)/recoveries (280 ) — — — — (3 ) — (283 ) Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275 Six Months Ended June 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2021 $ 1,604 $ 8,808 $ 1,482 $ 742 $ 74 $ 167 $ 1,075 $ 13,952 Provision for (reversal of) loan losses 319 763 212 60 77 16 (847 ) 600 Charge-offs (297 ) — — — — (9 ) — (306 ) Recoveries 24 — — — — 5 — 29 Net (charge-offs)/recoveries (273 ) — — — — (4 ) — (277 ) Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275
Amortized Cost of Collateral Dependent Loans by Class	The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses as of June 30, 2023 and December 31, 2022: June 30, 2023 ($ in thousands) Secured by 1-4 Family Residential Properties-1st lien Secured by 1-4 Family Residential Properties-junior lien Secured by 1-4 Family Residential Properties- revolving Commercial Construction and land development Secured by farmland Agriculture production loans Total Commercial $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate — — — — — — — — Agriculture — — — — — 1,054 4,109 5,163 Residential Mortgage 412 — — — — — — 412 Residential Construction — — — — — — — — Consumer — 388 205 — — — — 593 Total $ 412 $ 388 $ 205 $ — $ — $ 1,054 $ 4,109 $ 6,168 December 31, 2022 ($ in thousands) Secured by 1-4 Family Residential Properties-1st lien Secured by 1-4 Family Residential Properties-junior lien Secured by 1-4 Family Residential Properties- revolving Commercial Construction and land development Secured by farmland Agriculture production loans Total Commercial $ — $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate — — — — — — — — Agriculture — — — — — 1,148 6,268 7,416 Residential Mortgage 123 — — — — — — 123 Residential Construction — — — — — — — — Consumer — — 637 — — — — 637 Total $ 123 $ — $ 637 $ — $ — $ 1,148 $ 6,268 $ 8,176
Loans by Delinquency and Non-Accrual Status	The Company’s loans by delinquency and non-accrual status, as of June 30, 2023 and December 31, 2022, was as follows: ($ in thousands) 30-59 days Past Due Accruing 60-89 days Past Due Accruing 90 days or More Past Due & Accruing Nonaccrual Loans Total Past Due & Nonaccrual Loans Current & Accruing Loans Total Loans Nonaccrual loans with No ACL June 30 2023 Commercial $ — $ — $ 403 $ — $ 403 $ 100,446 $ 100,849 $ — Commercial Real Estate — — — — — 702,410 702,410 — Agriculture — — — 5,163 5,163 98,609 103,772 5,163 Residential Mortgage 339 — — 412 751 97,770 98,521 412 Residential Construction — — — — — 12,407 12,407 — Consumer 200 84 — 593 877 14,187 15,064 593 Total $ 539 $ 84 $ 403 $ 6,168 $ 7,194 $ 1,025,829 $ 1,033,023 $ 6,168 December 31, 2022 Commercial $ 41 $ — $ 403 $ — $ 444 $ 106,327 $ 106,771 $ — Commercial Real Estate — — — — — 645,166 645,166 — Agriculture — — — 7,416 7,416 106,624 114,040 7,416 Residential Mortgage — — — 123 123 92,546 92,669 123 Residential Construction — — — — — 10,167 10,167 — Consumer — — — 637 637 14,650 15,287 637 Total $ 41 $ — $ 403 $ 8,176 $ 8,620 $ 975,480 $ 984,100 $ 8,176
Amortized Cost Basis of Loans Modification to Borrowers Experiencing Financial Difficulty and Financial Effects of Loan Modifications	The amortized cost basis of loans that were experiencing both financial difficulty and modification during the three months ended June 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ — — Commercial Real Estate — 400 0.06 % Agriculture 4,005 — 3.86 % Residential Mortgage — — — Residential Construction — — — Consumer — — — Total $ 4,005 $ 400 3.92 % The amortized cost basis of loans that were experiencing both financial difficulty and modification during the six months ended June 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ 50 0.05 % Commercial Real Estate — 400 0.06 % Agriculture 4,005 — 3.86 % Residential Mortgage — — — Residential Construction — — — Consumer — — — Total $ 4,005 $ 450 3.97 % The Company had no commitments to lend additional funds to borrowers whose loans were modified at June 30, 2023. The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the three-month period ended June 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial — $ — Commercial Real Estate 0.25 % 26 Agriculture — 4 Residential Mortgage — — Residential Construction — — Consumer — — Total 0.25 % $ 6 The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the six-month period ended June 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial 0.50 % $ 38 Commercial Real Estate 0.25 % 26 Agriculture — 4 Residential Mortgage — — Residential Construction — — Consumer — — Total 0.28 % $ 6 Loans modified as TDRs during the six months ended June 30, 2022 were as follows: ($ in thousands) Six months ended June 30, 2022 Number of Contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Consumer 1 $ 75 $ 75 Total 1 $ 75 $ 75
Risk Ratings by Loan Class	The following tables present the loan portfolio by loan class, origination year, and internal risk rating as of June 30, 2023. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to permanent loans, are presented by year of origination. Revolving loans converted to term loans totaled $358,000 during the six months ended June 30, 2023. (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 5,567 $ 20,674 $ 24,445 $ 6,750 $ 8,928 $ 9,593 $ 22,281 $ 98,238 Special Mention — — — — — — — — Substandard 47 — 1,996 568 — — — 2,611 Doubtful/Loss — — — — — — — — Total Commercial loans $ 5,614 $ 20,674 $ 26,441 $ 7,318 $ 8,928 $ 9,593 $ 22,281 $ 100,849 Year-to-date Period Write-offs — (91 ) — — (87 ) — — (178 ) Year-to-date Recoveries — — — — 86 49 — 135 Year-to-date Net Write-offs — (91 ) — — (1 ) 49 — (43 ) Commercial Real Estate Pass $ 74,538 $ 173,787 $ 201,926 $ 45,638 $ 58,982 $ 126,251 $ 7,035 $ 688,157 Special Mention — — — 855 2,927 — — 3,782 Substandard 400 — 171 2,136 6,736 1,028 — 10,471 Doubtful/Loss — — — — — — — — Total Commercial Real Estate loans $ 74,938 $ 173,787 $ 202,097 $ 48,629 $ 68,645 $ 127,279 $ 7,035 $ 702,410 Year-to-date Write-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — — — — Agriculture Pass $ 6,235 $ 21,015 $ 23,921 $ 9,038 $ 4,470 11,857 $ 21,009 $ 97,545 Special Mention — — — — — 1,064 — 1,064 Substandard — — 1,572 — — — 3,591 5,163 Doubtful/Loss — — — — — — — — Total Agriculture loans $ 6,235 $ 21,015 $ 25,493 $ 9,038 $ 4,470 $ 12,921 $ 24,600 $ 103,772 Year-to-date Write-offs (1,825 ) — — — — — (742 ) (2,567 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs (1,825 ) — — — — — (742 ) (2,567 ) (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential Mortgage Pass $ 10,396 $ 23,601 $ 27,060 $ 14,931 $ 6,134 $ 15,948 $ — $ 98,070 Special Mention — — — — — — — — Substandard — — 39 — — 412 — 451 Doubtful/Loss — — — — — — — — Total Residential Mortgage loans $ 10,396 $ 23,601 $ 27,099 $ 14,931 $ 6,134 $ 16,360 $ — $ 98,521 Year-to-date Write-offs — — — — — (3 ) — (3 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — (3 ) — (3 ) Residential Construction Pass $ 2,536 $ 6,160 $ 3,711 $ — $ — $ — $ — $ 12,407 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful/Loss — — — — — — — — Total Residential Construction loans $ 2,536 $ 6,160 $ 3,711 $ — $ — $ — $ — $ 12,407 Year-to-date Write-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Write-offs — — — — — — — — Consumer Pass $ 314 $ 822 $ 144 $ 197 $ 68 $ 447 $ 12,479 $ 14,471 Special Mention — — — — — — — — Substandard — — — — — — 593 593 Doubtful/Loss — — — — — — — — Total Consumer loans $ 314 $ 822 $ 144 $ 197 $ 68 $ 447 $ 13,072 $ 15,064 Year-to-date Write-offs (1 ) — — — — — — (1 ) Year-to-date Recoveries — — — — — 1 — 1 Year-to-date Net Write-offs (1 ) — — — — 1 — — Total Loans Pass $ 99,586 $ 246,059 $ 281,207 $ 76,554 $ 78,582 $ 164,096 $ 62,804 $ 1,008,888 Special Mention — — — 855 2,927 1,064 — 4,846 Substandard 447 — 3,778 2,704 6,736 1,440 4,184 19,289 Doubtful/Loss — — — — — — — — Total Loans $ 100,033 $ 246,059 $ 284,985 $ 80,113 $ 88,245 $ 166,600 $ 66,988 $ 1,033,023 Year-to-date Write-offs $ (1,826 ) $ (91 ) $ — $ — $ (87 ) $ (3 ) $ (742 ) $ (2,749 ) Year-to-date Recoveries $ — $ — $ — $ — $ 86 $ 50 $ — $ 136 Year-to-date Net Write-offs $ (1,826 ) $ (91 ) $ — $ — $ (1 ) $ 47 $ (742 ) $ (2,613 ) The following table presents the risk ratings by loan class as of December 31, 2022. Pass Special Substandard Doubtful Loss Total December 31, 2022 Commercial $ 106,643 $ — $ 128 $ — $ — $ 106,771 Commercial Real Estate 631,693 6,748 6,725 — — 645,166 Agriculture 105,560 1,064 7,416 — — 114,040 Residential Mortgage 92,299 207 163 — — 92,669 Residential Construction 10,167 — — — — 10,167 Consumer 14,650 — 637 — — 15,287 Total $ 961,012 $ 8,019 $ 15,069 $ — $ — $ 984,100

MORTGAGE OPERATIONS (Tables)

MORTGAGE OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Constant prepayment rate 7.58 % 7.55 % Discount rate 9.50 % 9.50 % Weighted average life (years) 7.12 7.20
Mortgage Servicing Rights Assets	The following table summarizes the Company’s mortgage servicing rights assets as of June 30, 2023 and December 31, 2022. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets. (in thousands) December 31, 2022 Additions Reductions June 30, 2023 Mortgage servicing rights $ 1,650 $ 14 $ (123 ) $ 1,541 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,650 $ 14 $ (123 ) $ 1,541

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 and December 31, 2022. (in thousands) June 30 2023 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 $ 110,877 $ 110,877 $ — $ — Securities of U.S. government agencies and corporations 111,956 — 111,956 — Obligations of states and political subdivisions 43,990 — 43,990 — Collateralized mortgage obligations 93,966 — 93,966 — Mortgage-backed securities 226,871 — 226,871 — Total investments at fair value $ 587,660 $ 110,877 $ 476,783 $ — (in thousands) December 31, 2022 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 $ 113,815 $ 113,815 $ — $ — Securities of U.S. government agencies and corporations 118,911 — 118,911 — Obligations of states and political subdivisions 53,326 — 53,326 — Collateralized mortgage obligations 95,350 — 95,350 — Mortgage-backed securities 236,690 — 236,690 — Total investments at fair value $ 618,092 $ 113,815 $ 504,277 $ —
Assets Measured at Fair Value on a Nonrecurring Basis	The table below presents the recorded amount of assets measured at fair value on a nonrecurring basis that had a write-down or an additional allowance provided during the period ended June 30, 2023 (in thousands) June 30, 2023 Carrying Value Level 1 Level 2 Level 3 Individually evaluated loans $ 1,439 $ — $ — $ 1,439 Total assets at fair value $ 1,439 $ — $ — $ 1,439
Key Methods and Assumptions Used in Measuring Fair Value	Key methods and assumptions used in measuring the fair value of collateral dependent loans as of June 30, 2023 were as follows: Method Assumption Inputs Individually evaluated 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 June 30, 2023 and December 31, 2022 were approximately as follows: (in thousands) June 30, 2023 December 31, 2022 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 204,806 $ 204,806 $ 187,417 $ 187,417 Certificates of deposit 2 21,192 20,667 20,948 20,560 Stock in Federal Home Loan Bank and other equity securities 3 10,518 10,518 9,440 9,440 Loans receivable: Net loans 3 1,017,721 952,199 970,138 929,163 Loans held-for-sale 2 1,011 1,033 — — Interest receivable 2 6,386 6,386 5,745 5,745 Mortgage servicing rights 3 1,541 2,002 1,650 2,101 Financial liabilities: Time deposits 3 110,197 109,587 44,355 43,987 Interest payable 2 524 524 93 93

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	6 Months Ended
	Jun. 30, 2023
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) June 30, 2023 December 31, 2022 Undisbursed loan commitments $ 198,385 $ 205,610 Standby letters of credit 1,262 1,930 Commitments to sell loans 1,905 — $ 201,552 $ 207,540

STOCK PLANS (Tables)

STOCK PLANS (Tables)	6 Months Ended
	Jun. 30, 2023
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended June 30, 2023. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 663,678 $ 8.56 Granted — — Expired — — Cancelled / Forfeited — — Exercised — — Options outstanding at End of Period 663,678 $ 8.56 $ 240,488 4.95 Exercisable (vested) at End of Period 578,314 $ 8.39 $ 240,488 4.58 The following table presents the activity related to stock options for the six months ended June 30, 2023. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 684,837 $ 8.41 Granted — — Expired — — Cancelled / Forfeited — — Exercised (21,159 ) 3.83 Options outstanding at End of Period 663,678 $ 8.56 $ 240,488 4.95 Exercisable (vested) at End of Period 578,314 $ 8.39 $ 240,488 4.58
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended June 30,2023. 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 273,973 $ 9.18 Granted 1,500 7.10 Cancelled / Forfeited — — Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 275,473 $ 9.17 $ 1,928,311 2.94 The following table presents the activity related to non-vested restricted stock for the six months ended June 30, 2023. 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 248,418 $ 9.34 Granted 77,351 8.49 Cancelled / Forfeited — — Exercised/Released/Vested (50,296 ) 8.96 Non-vested restricted stock outstanding at End of Period 275,473 $ 9.17 $ 1,928,311 2.94
Weighted Average Assumptions Used in Valuing ESPP	A summary of the weighted average assumptions used in valuing ESPP issuances during the three and six months ended June 30, 2023 is presented below. Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Risk Free Interest Rate 4.75 % 4.75 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 16.58 % 16.58 %

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
Activity in Accumulated Other Comprehensive Income (Loss)	The following table details activity in accumulated other comprehensive loss for the three months ended June 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of March 31, 2023 $ (40,260 ) $ (308 ) $ 53 $ (40,515 ) Current period other comprehensive loss (3,690 ) — — (3,690 ) Balance as of June 30 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) The following table details activity in accumulated other comprehensive loss for the six months ended June 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of December 31, 2022 $ (46,273 ) $ (308 ) $ 53 $ (46,528 ) Current period other comprehensive income 2,323 — — 2,323 Balance as of June 30, 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) The following table details activity in accumulated other comprehensive loss for the three months ended June 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of March 31, 2022 $ (22,727 ) $ (1,420 ) $ (13 ) $ (24,160 ) Current period other comprehensive loss (10,641 ) — — (10,641 ) Balance as of June 30 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 ) The following table details activity in accumulated other comprehensive loss for the six months ended June 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of December 31, 2021 $ (2,764 ) $ (1,420 ) $ (13 ) $ (4,197 ) Current period other comprehensive loss (30,604 ) — — (30,604 ) Balance as of June 30, 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 )

OUTSTANDING SHARES AND EARNIN_2

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
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 six months ended June 30, 2023 and 2022 (dollars in thousands except per share amounts): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Basic earnings per share: Net income $ 4,564 $ 3,546 $ 10,053 $ 6,587 Weighted average common shares outstanding 14,454,826 14,408,458 14,438,460 14,390,219 Basic EPS $ 0.32 $ 0.25 $ 0.70 $ 0.46 Diluted earnings per share: Net income $ 4,564 $ 3,546 $ 10,053 $ 6,587 Weighted average common shares outstanding 14,454,826 14,408,458 14,438,460 14,390,219 Effect of dilutive shares 92,894 154,659 113,913 168,885 Adjusted weighted average common shares outstanding 14,547,720 14,563,117 14,552,373 14,559,104 Diluted EPS $ 0.31 $ 0.24 $ 0.69 $ 0.45

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2023
LEASES [Abstract]
Maturities of Remaining Lease Liabilities	The table below summarizes the maturity of remaining lease liabilities at June 30, 2023: (in thousands) June 30, 2023 2023 $ 593 2024 1,040 2025 1,052 2026 672 2027 611 2028 1,520 Total lease payments 5,488 Less: interest (369 ) Present value of lease liabilities $ 5,119
Supplemental Cash Flow Information Related to Leases	The following table presents supplemental cash flow information related to leases for the three and six months ended June 30, 2023: Three months ended June 30, Six June 30 (in thousands) 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 301 $ 304 $ 614 $ 603 Right-of-use assets obtained in exchange for new operating lease liabilities — — 245 707
Weighted Average Operating Lease Term and Discount Rate	The following table presents the weighted average operating lease term and discount rate as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Weighted-average remaining lease term – operating leases, in years 5.69 6.14 Weighted-average discount rate – operating leases 2.44 % 2.37 %

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	6 Months Ended
	Jun. 30, 2023
BUSINESS COMBINATIONS [Abstract]
Summary of Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid for the acquired branches and amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands): Acquired Branches January 20, 2023 Fair value of consideration received: Cash consideration $ 103,425 Total fair value of consideration received 103,425 Assets acquired: Cash and cash equivalents 1,284 Loans 4,006 Premises and equipment 3,621 Core deposit intangible 4,970 Other assets 15 Total assets acquired 13,896 Liabilities assumed: Deposits 115,914 Other liabilities 2 Total liabilities assumed 115,916 Total net liabilities assumed 102,020 Bargain purchase gain recognized $ 1,405 A summary of the estimated fair value adjustments resulting in the bargain purchase gain recorded in the branch acquisition are presented below (in thousands): Acquired Branches January 20, 2023 Cash consideration received $ 103,425 Less: Cost basis of net liabilities assumed (107,097 ) Fair Value Adjustments: Loans (363 ) Premises and equipment 307 Core deposit intangible 4,970 Deposits 163 Bargain purchase gain recognized $ 1,405
Unaudited Pro Forma Information	The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2022 (in thousands): Three months ended June 30, 2023 Three months ended June 30, 2022 Six months ended June 30, 2023 Six months ended June 30, 2022 Summarized proforma income statement data: Net interest income $ 17,782 $ 13,413 $ 34,001 $ 25,451 Provision for loan losses 2,600 300 2,600 600 Non-interest income 1,506 1,666 4,418 3,758 Non-interest expense 10,367 9,987 21,822 19,747 Income before taxes 6,321 4,792 13,997 8,862 Provision for income taxes 1,757 1,304 3,867 2,395 Net income $ 4,564 $ 3,488 $ 10,130 $ 6,467 Basic earnings per share $ 0.32 $ 0.24 $ 0.70 $ 0.45 Diluted earnings per share $ 0.31 $ 0.24 $ 0.70 $ 0.44

ACCOUNTING POLICIES, Allowance

ACCOUNTING POLICIES, Allowance for Credit Losses (Details) $ in Thousands	Jun. 30, 2023 USD ($) Category	Dec. 31, 2022 USD ($)
Loan Portfolio by Loan Class [Abstract]
Accrued interest receivable, available-for-sale debt securities	$ 1,999	$ 2,151
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Interest receivable and other assets	Interest receivable and other assets
Accrued interest receivable, loans	$ 4,387	$ 3,594
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Interest receivable and other assets	Interest receivable and other assets
Commercial Real Estate [Member]
Loan Portfolio by Loan Class [Abstract]
Number of categories of loans | Category	2

ACCOUNTING POLICIES, Business C

ACCOUNTING POLICIES, Business Combinations (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Business Combinations [Abstract]
Goodwill	$ 0
Core Deposit Intangible [Member]
Business Combinations [Abstract]
Estimated useful life	10 years

ACCOUNTING POLICIES, Accounting

ACCOUNTING POLICIES, Accounting Standards Adopted (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Retained earnings	$ 63,326	$ 54,492
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Accounting Standards Update and Change in Accounting Principle [Abstract]
Reserve for unfunded commitments		1,300
Retained earnings		(916)
Deferred taxes		$ (384)

INVESTMENT SECURITIES, Amortize

INVESTMENT SECURITIES, Amortized Cost, Unrealized Gains and Losses and Estimated Fair Values of Investments in Debt and Other Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Investment securities available-for-sale [Abstract]
Amortized cost	$ 650,058		$ 650,058		$ 683,784
Unrealized gains	16		16		102
Unrealized losses	(62,414)		(62,414)		(65,794)
Estimated fair value	587,660		587,660		618,092
Proceeds from sales of available-for-sale securities	9,785	$ 6,349	16,986	$ 6,349
Gross realized gains from sales of available-for-sale securities	38	0	96	0
Gross realized losses from sales of available-for-sale securities	104	$ 152	160	$ 152
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	115,926		115,926		119,644
Unrealized gains	1		1		13
Unrealized losses	(5,050)		(5,050)		(5,842)
Estimated fair value	110,877		110,877		113,815
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	120,835		120,835		128,697
Unrealized gains	0		0		20
Unrealized losses	(8,879)		(8,879)		(9,806)
Estimated fair value	111,956		111,956		118,911
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	48,924		48,924		58,955
Unrealized gains	2		2		13
Unrealized losses	(4,936)		(4,936)		(5,642)
Estimated fair value	43,990		43,990		53,326
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	113,363		113,363		114,983
Unrealized gains	0		0		0
Unrealized losses	(19,397)		(19,397)		(19,633)
Estimated fair value	93,966		93,966		95,350
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	251,010		251,010		261,505
Unrealized gains	13		13		56
Unrealized losses	(24,152)		(24,152)		(24,871)
Estimated fair value	$ 226,871		$ 226,871		$ 236,690

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual or Expected Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Maturity in years [Abstract]
Due in one year or less	$ 81,976
Due after one year through five years	154,651
Due after five years through ten years	22,207
Due after ten years	26,851
Subtotal	285,685
Mortgage-backed securities & Collateralized mortgage obligations	364,373
Amortized cost	650,058	$ 683,784
Maturity in years [Abstract]
Due in one year or less	80,271
Due after one year through five years	143,425
Due after five years through ten years	19,626
Due after ten years	23,501
Subtotal	266,823
Mortgage-backed securities & Collateralized mortgage obligations	320,837
Estimated fair value	$ 587,660	$ 618,092

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details) $ in Thousands	Jun. 30, 2023 USD ($) Security	Dec. 31, 2022 USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 91,776	$ 275,604
12 months or more, fair value	489,786	327,817
Total fair value	581,562	603,421
Less than 12 months, unrealized losses	(1,816)	(14,760)
12 Months or more, unrealized losses	(60,598)	(51,034)
Total unrealized losses	$ (62,414)	(65,794)
Investment securities in an unrealized loss position less than 12 months | Security	90
Investment securities in an unrealized loss position more than 12 months | Security	473
Allowance for credit losses on available-for-sale securities	$ 0	0
Asset Pledged as Collateral [Member] | Public Deposits or Other Purposes [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Investment securities	43,449	44,319
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	20,249	54,574
12 months or more, fair value	88,156	56,872
Total fair value	108,405	111,446
Less than 12 months, unrealized losses	(203)	(1,680)
12 Months or more, unrealized losses	(4,847)	(4,162)
Total unrealized losses	(5,050)	(5,842)
Securities of U.S. Government Agencies and Corporations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	15,013	45,261
12 months or more, fair value	96,943	69,635
Total fair value	111,956	114,896
Less than 12 months, unrealized losses	(183)	(1,341)
12 Months or more, unrealized losses	(8,696)	(8,465)
Total unrealized losses	(8,879)	(9,806)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	12,066	40,479
12 months or more, fair value	31,174	10,049
Total fair value	43,240	50,528
Less than 12 months, unrealized losses	(222)	(3,022)
12 Months or more, unrealized losses	(4,714)	(2,620)
Total unrealized losses	(4,936)	(5,642)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	11,172	36,040
12 months or more, fair value	82,794	59,310
Total fair value	93,966	95,350
Less than 12 months, unrealized losses	(233)	(2,586)
12 Months or more, unrealized losses	(19,164)	(17,047)
Total unrealized losses	(19,397)	(19,633)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	33,276	99,250
12 months or more, fair value	190,719	131,951
Total fair value	223,995	231,201
Less than 12 months, unrealized losses	(975)	(6,131)
12 Months or more, unrealized losses	(23,177)	(18,740)
Total unrealized losses	$ (24,152)	$ (24,871)

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Loan Portfolio by Loan Class [Abstract]
Loans	$ 1,033,023		$ 984,100
Allowance for credit losses	(15,579)	$ (15,484)	(14,792)	$ (14,275)	$ (14,258)	$ (13,952)
Net deferred origination fees and costs	277		830
Loans, net	1,017,721		970,138
Commercial [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	100,849		106,771
Allowance for credit losses	(1,775)	(1,750)	(1,463)	(1,650)	(1,747)	(1,604)
Commercial Real Estate [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	702,410		645,166
Allowance for credit losses	(10,050)	(9,155)	(10,073)	(9,571)	(9,380)	(8,808)
Agriculture [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	103,772		114,040
Allowance for credit losses	(939)	(873)	(1,757)	(1,694)	(1,607)	(1,482)
Residential Mortgage [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	98,521		92,669
Allowance for credit losses	(1,824)	(1,678)	(880)	(802)	(754)	(742)
Residential Construction [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	12,407		10,167
Allowance for credit losses	(487)	(417)	(178)	(151)	(135)	(74)
Consumer [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	15,064		15,287
Allowance for credit losses	$ (367)	$ (365)	$ (173)	$ (179)	$ (191)	$ (167)

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	$ 15,484	$ 14,258	$ 14,792	$ 13,952
Provision for credit losses/ Provision for (reversal of) loan losses	2,600	300	2,600	600
Charge-offs	(2,618)	(302)	(2,749)	(306)
Recoveries	113	19	136	29
Net (charge-offs)/recoveries	(2,505)	(283)	(2,613)	(277)
Ending balance	15,579	14,275	15,579	14,275
Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			800
Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			15,592
Commercial [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	1,750	1,747	1,463	1,604
Provision for credit losses/ Provision for (reversal of) loan losses	(36)	183	(268)	319
Charge-offs	(51)	(297)	(178)	(297)
Recoveries	112	17	135	24
Net (charge-offs)/recoveries	61	(280)	(43)	(273)
Ending balance	1,775	1,650	1,775	1,650
Commercial [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			623
Commercial [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			2,086
Commercial Real Estate [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	9,155	9,380	10,073	8,808
Provision for credit losses/ Provision for (reversal of) loan losses	895	191	441	763
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs)/recoveries	0	0	0	0
Ending balance	10,050	9,571	10,050	9,571
Commercial Real Estate [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			(464)
Commercial Real Estate [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			9,609
Agriculture [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	873	1,607	1,757	1,482
Provision for credit losses/ Provision for (reversal of) loan losses	2,633	87	2,420	212
Charge-offs	(2,567)	0	(2,567)	0
Recoveries	0	0	0	0
Net (charge-offs)/recoveries	(2,567)	0	(2,567)	0
Ending balance	939	1,694	939	1,694
Agriculture [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			(671)
Agriculture [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			1,086
Residential Mortgage [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	1,678	754	880	742
Provision for credit losses/ Provision for (reversal of) loan losses	146	48	113	60
Charge-offs	0	0	(3)	0
Recoveries	0	0	0	0
Net (charge-offs)/recoveries	0	0	(3)	0
Ending balance	1,824	802	1,824	802
Residential Mortgage [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			834
Residential Mortgage [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			1,714
Residential Construction [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	417	135	178	74
Provision for credit losses/ Provision for (reversal of) loan losses	70	16	109	77
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs)/recoveries	0	0	0	0
Ending balance	487	151	487	151
Residential Construction [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			200
Residential Construction [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			378
Consumer [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	365	191	173	167
Provision for credit losses/ Provision for (reversal of) loan losses	1	(9)	(7)	16
Charge-offs	0	(5)	(1)	(9)
Recoveries	1	2	1	5
Net (charge-offs)/recoveries	1	(3)	0	(4)
Ending balance	367	179	367	179
Consumer [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			201
Consumer [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			374
Unallocated [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	1,246	444	268	1,075
Provision for credit losses/ Provision for (reversal of) loan losses	(1,109)	(216)	(208)	(847)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net (charge-offs)/recoveries	0	0	0	0
Ending balance	$ 137	$ 228	137	$ 228
Unallocated [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			77
Unallocated [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance			$ 345

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Collateral-Dependent Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	$ 6,168	$ 8,176
Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	412	123
Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	388	0
Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	205	637
Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	1,054	1,148
Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	4,109	6,268
Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Commercial Real Estate [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	5,163	7,416
Agriculture [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Agriculture [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	1,054	1,148
Agriculture [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	4,109	6,268
Residential Mortgage [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	412	123
Residential Mortgage [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	412	123
Residential Mortgage [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Mortgage [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Mortgage [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Mortgage [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Mortgage [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Mortgage [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Residential Construction [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Consumer [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	593	637
Consumer [Member] | Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Consumer [Member] | Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	388	0
Consumer [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	205	637
Consumer [Member] | Commercial [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Consumer [Member] | Construction and Land Development [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Consumer [Member] | Secured by Farmland [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	0	0
Consumer [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	$ 0	$ 0

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Foreclosure Proceedings (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Residential Real Estate [Member]
Foreclosure Proceedings [Abstract]
Amount of mortgage loans in process of foreclosure	$ 0	$ 0

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Non-accrual and Past Due Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Non-accrual and Past Due Loans [Abstract]
Total Loans	$ 1,033,023		$ 1,033,023		$ 984,100
Nonaccrual Loans	6,168		6,168		8,176
Nonaccrual loans with no ACL	6,168		6,168		8,176
Interest income on nonaccrual loans	1,285	$ 13	1,285	$ 28
30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	539		539		41
60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	84		84		0
90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	403		403		403
Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	7,194		7,194		8,620
Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	1,025,829		1,025,829		975,480
Commercial [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	100,849		100,849		106,771
Nonaccrual Loans	0		0		0
Nonaccrual loans with no ACL	0		0		0
Commercial [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		41
Commercial [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Commercial [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	403		403		403
Commercial [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	403		403		444
Commercial [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	100,446		100,446		106,327
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	702,410		702,410		645,166
Nonaccrual Loans	0		0		0
Nonaccrual loans with no ACL	0		0		0
Commercial Real Estate [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Commercial Real Estate [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Commercial Real Estate [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Commercial Real Estate [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Commercial Real Estate [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	702,410		702,410		645,166
Agriculture [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	103,772		103,772		114,040
Nonaccrual Loans	5,163		5,163		7,416
Nonaccrual loans with no ACL	5,163		5,163		7,416
Agriculture [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Agriculture [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Agriculture [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Agriculture [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	5,163		5,163		7,416
Agriculture [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	98,609		98,609		106,624
Residential Mortgage [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	98,521		98,521		92,669
Nonaccrual Loans	412		412		123
Nonaccrual loans with no ACL	412		412		123
Residential Mortgage [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	339		339		0
Residential Mortgage [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Mortgage [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Mortgage [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	751		751		123
Residential Mortgage [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	97,770		97,770		92,546
Residential Construction [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	12,407		12,407		10,167
Nonaccrual Loans	0		0		0
Nonaccrual loans with no ACL	0		0		0
Residential Construction [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Construction [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Construction [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Construction [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Residential Construction [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	12,407		12,407		10,167
Consumer [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	15,064		15,064		15,287
Nonaccrual Loans	593		593		637
Nonaccrual loans with no ACL	593		593		637
Consumer [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	200		200		0
Consumer [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	84		84		0
Consumer [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		0
Consumer [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	877		877		637
Consumer [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	$ 14,187		$ 14,187		$ 14,650

LOANS AND ALLOWANCE FOR CREDI_8

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Amortized Cost Basis of Loans Modification to Borrowers in Financial Distress (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification			$ 75
Total class of financing receivable	3.92%	3.97%
Commitments to lend additional funds to borrowers whose loans were modified	$ 0	$ 0
Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	4,005	4,005
Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 400	$ 450
Commercial [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0%	0.05%
Commercial [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Commercial [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 50
Commercial Real Estate [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.06%	0.06%
Commercial Real Estate [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Commercial Real Estate [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 400	$ 400
Agriculture [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	3.86%	3.86%
Agriculture [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 4,005	$ 4,005
Agriculture [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Residential Mortgage [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0%	0%
Residential Mortgage [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Residential Mortgage [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Residential Construction [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0%	0%
Residential Construction [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Residential Construction [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Consumer [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification			$ 75
Total class of financing receivable	0%	0%
Consumer [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0
Consumer [Member] | Combination Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 0

LOANS AND ALLOWANCE FOR CREDI_9

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Financial Effect of Loan Modifications (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0.25%	0.28%
Weighted-Average Term Extension	6 months	6 months
Commercial [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0.50%
Weighted-Average Term Extension	0 months	38 months
Commercial Real Estate [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0.25%	0.25%
Weighted-Average Term Extension	26 months	26 months
Agriculture [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0%
Weighted-Average Term Extension	4 months	4 months
Residential Mortgage [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0%
Weighted-Average Term Extension	0 months	0 months
Residential Construction [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0%
Weighted-Average Term Extension	0 months	0 months
Consumer [Member]
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0%
Weighted-Average Term Extension	0 months	0 months

LOANS AND ALLOWANCE FOR CRED_10

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) Loan	Jun. 30, 2022 USD ($) Loan	Jun. 30, 2023 USD ($) Loan	Jun. 30, 2022 USD ($) Contract Loan	Dec. 31, 2022 USD ($)
Troubled Debt Restructurings [Abstract]
Number of TDR loans defaulted within 12 months of modification date | Loan		0		0
Charge-offs	$ (2,618)	$ (302)	$ (2,749)	$ (306)
TDR loans					$ 8,399
Specific reserves for TDR loans					77
TDR loans performing in compliance with modified terms					$ 8,399
Loans Modified as TDR's [Abstract]
Number of contracts		0		1
Pre-modification outstanding recorded investment				$ 75
Post-modification outstanding recorded investment				75
Consumer [Member]
Troubled Debt Restructurings [Abstract]
Charge-offs	$ 0	$ (5)	$ (1)	$ (9)
Loans Modified as TDR's [Abstract]
Number of contracts | Contract				1
Pre-modification outstanding recorded investment				$ 75
Post-modification outstanding recorded investment				75
Agriculture [Member]
Troubled Debt Restructurings [Abstract]
Number of TDR loans defaulted within 12 months of modification date | Loan	2		2
Loans modified within previous twelve months and for which there was a payment default	$ 4,005		$ 4,005
Charge-offs	$ (2,567)	$ 0	$ (2,567)	$ 0

LOANS AND ALLOWANCE FOR CRED_11

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Risk Ratings by Loan Class [Abstract]
2023	$ 100,033		$ 100,033
2022	246,059		246,059
2021	284,985		284,985
2020	80,113		80,113
2019	88,245		88,245
Prior	166,600		166,600
Revolving loans amortized cost basis	66,988		66,988
Total	1,033,023		1,033,023		$ 984,100
Revolving loans converted to term loans	358		358
Year-to-date Write-offs [Abstract]
2023			(1,826)
2022			(91)
2021			0
2020			0
2019			(87)
Prior			(3)
Revolving loans amortized cost basis			(742)
Total	(2,618)	$ (302)	(2,749)	$ (306)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			86
Prior			50
Revolving loans amortized cost basis			0
Total	113	19	136	29
Year-to-date Net Write-offs [Abstract]
2023			(1,826)
2022			(91)
2021			0
2020			0
2019			(1)
Prior			47
Revolving loans amortized cost basis			(742)
Net (charge-offs)/recoveries	(2,505)	(283)	(2,613)	(277)
Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	99,586		99,586
2022	246,059		246,059
2021	281,207		281,207
2020	76,554		76,554
2019	78,582		78,582
Prior	164,096		164,096
Revolving loans amortized cost basis	62,804		62,804
Total	1,008,888		1,008,888		961,012
Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	855		855
2019	2,927		2,927
Prior	1,064		1,064
Revolving loans amortized cost basis	0		0
Total	4,846		4,846		8,019
Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	447		447
2022	0		0
2021	3,778		3,778
2020	2,704		2,704
2019	6,736		6,736
Prior	1,440		1,440
Revolving loans amortized cost basis	4,184		4,184
Total	19,289		19,289		15,069
Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0
Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Commercial [Member]
Risk Ratings by Loan Class [Abstract]
2023	5,614		5,614
2022	20,674		20,674
2021	26,441		26,441
2020	7,318		7,318
2019	8,928		8,928
Prior	9,593		9,593
Revolving loans amortized cost basis	22,281		22,281
Total	100,849		100,849		106,771
Year-to-date Write-offs [Abstract]
2023			0
2022			(91)
2021			0
2020			0
2019			(87)
Prior			0
Revolving loans amortized cost basis			0
Total	(51)	(297)	(178)	(297)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			86
Prior			49
Revolving loans amortized cost basis			0
Total	112	17	135	24
Year-to-date Net Write-offs [Abstract]
2023			0
2022			(91)
2021			0
2020			0
2019			(1)
Prior			49
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries	61	(280)	(43)	(273)
Commercial [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	5,567		5,567
2022	20,674		20,674
2021	24,445		24,445
2020	6,750		6,750
2019	8,928		8,928
Prior	9,593		9,593
Revolving loans amortized cost basis	22,281		22,281
Total	98,238		98,238		106,643
Commercial [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0		0
Commercial [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	47		47
2022	0		0
2021	1,996		1,996
2020	568		568
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	2,611		2,611		128
Commercial [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Commercial [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Commercial [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Commercial Real Estate [Member]
Risk Ratings by Loan Class [Abstract]
2023	74,938		74,938
2022	173,787		173,787
2021	202,097		202,097
2020	48,629		48,629
2019	68,645		68,645
Prior	127,279		127,279
Revolving loans amortized cost basis	7,035		7,035
Total	702,410		702,410		645,166
Year-to-date Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Net Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries	0	0	0	0
Commercial Real Estate [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	74,538		74,538
2022	173,787		173,787
2021	201,926		201,926
2020	45,638		45,638
2019	58,982		58,982
Prior	126,251		126,251
Revolving loans amortized cost basis	7,035		7,035
Total	688,157		688,157		631,693
Commercial Real Estate [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	855		855
2019	2,927		2,927
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	3,782		3,782		6,748
Commercial Real Estate [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	400		400
2022	0		0
2021	171		171
2020	2,136		2,136
2019	6,736		6,736
Prior	1,028		1,028
Revolving loans amortized cost basis	0		0
Total	10,471		10,471		6,725
Commercial Real Estate [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0
Commercial Real Estate [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Commercial Real Estate [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Agriculture [Member]
Risk Ratings by Loan Class [Abstract]
2023	6,235		6,235
2022	21,015		21,015
2021	25,493		25,493
2020	9,038		9,038
2019	4,470		4,470
Prior	12,921		12,921
Revolving loans amortized cost basis	24,600		24,600
Total	103,772		103,772		114,040
Year-to-date Write-offs [Abstract]
2023			(1,825)
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			(742)
Total	(2,567)	0	(2,567)	0
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Net Write-offs [Abstract]
2023			(1,825)
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			(742)
Net (charge-offs)/recoveries	(2,567)	0	(2,567)	0
Agriculture [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	6,235		6,235
2022	21,015		21,015
2021	23,921		23,921
2020	9,038		9,038
2019	4,470		4,470
Prior	11,857		11,857
Revolving loans amortized cost basis	21,009		21,009
Total	97,545		97,545		105,560
Agriculture [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	1,064		1,064
Revolving loans amortized cost basis	0		0
Total	1,064		1,064		1,064
Agriculture [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	1,572		1,572
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	3,591		3,591
Total	5,163		5,163		7,416
Agriculture [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0
Agriculture [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Agriculture [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Residential Mortgage [Member]
Risk Ratings by Loan Class [Abstract]
2023	10,396		10,396
2022	23,601		23,601
2021	27,099		27,099
2020	14,931		14,931
2019	6,134		6,134
Prior	16,360		16,360
Revolving loans amortized cost basis	0		0
Total	98,521		98,521		92,669
Year-to-date Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			(3)
Revolving loans amortized cost basis			0
Total	0	0	(3)	0
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Net Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			(3)
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries	0	0	(3)	0
Residential Mortgage [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	10,396		10,396
2022	23,601		23,601
2021	27,060		27,060
2020	14,931		14,931
2019	6,134		6,134
Prior	15,948		15,948
Revolving loans amortized cost basis	0		0
Total	98,070		98,070		92,299
Residential Mortgage [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0		207
Residential Mortgage [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	39		39
2020	0		0
2019	0		0
Prior	412		412
Revolving loans amortized cost basis	0		0
Total	451		451		163
Residential Mortgage [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0
Residential Mortgage [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Residential Mortgage [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Residential Construction [Member]
Risk Ratings by Loan Class [Abstract]
2023	2,536		2,536
2022	6,160		6,160
2021	3,711		3,711
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	12,407		12,407		10,167
Year-to-date Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	0	0	0
Year-to-date Net Write-offs [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries	0	0	0	0
Residential Construction [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	2,536		2,536
2022	6,160		6,160
2021	3,711		3,711
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	12,407		12,407		10,167
Residential Construction [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0		0
Residential Construction [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0		0
Residential Construction [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0
Residential Construction [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Residential Construction [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Consumer [Member]
Risk Ratings by Loan Class [Abstract]
2023	314		314
2022	822		822
2021	144		144
2020	197		197
2019	68		68
Prior	447		447
Revolving loans amortized cost basis	13,072		13,072
Total	15,064		15,064		15,287
Year-to-date Write-offs [Abstract]
2023			(1)
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	0	(5)	(1)	(9)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			1
Revolving loans amortized cost basis			0
Total	1	2	1	5
Year-to-date Net Write-offs [Abstract]
2023			(1)
2022			0
2021			0
2020			0
2019			0
Prior			1
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries	1	$ (3)	0	$ (4)
Consumer [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	314		314
2022	822		822
2021	144		144
2020	197		197
2019	68		68
Prior	447		447
Revolving loans amortized cost basis	12,479		12,479
Total	14,471		14,471		14,650
Consumer [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	0		0		0
Consumer [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	593		593
Total	593		593		637
Consumer [Member] | Doubtful/Loss [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	$ 0		$ 0
Consumer [Member] | Doubtful [Member]
Risk Ratings by Loan Class [Abstract]
Total					0
Consumer [Member] | Loss [Member]
Risk Ratings by Loan Class [Abstract]
Total					$ 0

MORTGAGE OPERATIONS (Details)

MORTGAGE OPERATIONS (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
MORTGAGE OPERATIONS [Abstract]
Real estate mortgage loans serviced	$ 187,504,974		$ 187,504,974		$ 194,818,000
Key assumptions used in measuring the fair value of mortgage servicing rights [Abstract]
Constant prepayment rate			7.58%		7.55%
Discount rate			9.50%		9.50%
Weighted average life			7 years 1 month 13 days		7 years 2 months 12 days
Mortgage servicing rights [Roll Forward]
Beginning balance			$ 1,650,000
Additions			14,000
Reductions			(123,000)
Ending balance	1,541,000		1,541,000		$ 1,650,000
Valuation allowance [Roll Forward]
Beginning balance			0
Additions			0
Reductions			0
Ending balance	0		0		0
Mortgage servicing rights, net of valuation allowance [Roll Forward]
Beginning balance			1,650,000
Additions			14,000
Reductions			(123,000)
Ending balance	1,541,000		1,541,000
Fair value of mortgage servicing rights assets	2,002,000		2,002,000		$ 2,101,000
Contractually specified servicing fees	$ 119,000	$ 129,000	$ 240,000	$ 259,000

FAIR VALUE MEASUREMENTS, Assets

FAIR VALUE MEASUREMENTS, Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 587,660	$ 618,092
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	587,660	618,092
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	110,877	113,815
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	476,783	504,277
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Non-recurring [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Individually evaluated loans	1,439
Assets at fair value	1,439	0
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]
Individually evaluated loans	0
Assets at fair value	0
Non-recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Individually evaluated loans	0
Assets at fair value	0
Non-recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Individually evaluated loans	1,439
Assets at fair value	1,439
U.S. Treasury Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	110,877	113,815
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	110,877	113,815
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	110,877	113,815
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	111,956	118,911
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	111,956	118,911
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	111,956	118,911
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	43,990	53,326
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	43,990	53,326
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	43,990	53,326
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	93,966	95,350
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	93,966	95,350
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	93,966	95,350
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	226,871	236,690
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	226,871	236,690
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	226,871	236,690
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) - Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] - Selling Costs [Member]	Jun. 30, 2023
Minimum [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Impaired loans, measurement input	0.06
Maximum [Member]
Key methods and assumptions used in measuring fair value [Abstract]
Impaired loans, measurement input	0.10

FAIR VALUE MEASUREMENTS, Fair V

FAIR VALUE MEASUREMENTS, Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans receivable [Abstract]
Mortgage servicing rights	$ 2,002	$ 2,101
Carrying Amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	204,806	187,417
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	21,192	20,948
Loans receivable [Abstract]
Loans held-for-sale	1,011	0
Interest receivable	6,386	5,745
Financial liabilities [Abstract]
Interest payable	524	93
Carrying Amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	10,518	9,440
Loans receivable [Abstract]
Net loans	1,017,721	970,138
Mortgage servicing rights	1,541	1,650
Financial liabilities [Abstract]
Time deposits	110,197	44,355
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	204,806	187,417
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	20,667	20,560
Loans receivable [Abstract]
Loans held-for-sale	1,033	0
Interest receivable	6,386	5,745
Financial liabilities [Abstract]
Interest payable	524	93
Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	10,518	9,440
Loans receivable [Abstract]
Net loans	952,199	929,163
Mortgage servicing rights	2,002	2,101
Financial liabilities [Abstract]
Time deposits	$ 109,587	$ 43,987

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 201,552	$ 207,540
Undisbursed Loan Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	198,385	205,610
Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,262	1,930
Financial Standby Letter of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	0	0
Draw on outstanding letters of credit	0	0
Performance Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,262	1,930
Draw on outstanding letters of credit	0	0
Commitments to Sell Loans [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,905	0
Reserve for Off-balance Sheet Activity [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Reserve for unfunded commitments	1,200	700
Derivatives [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	0	0
Interest Rate Lock Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 2,370	$ 0

STOCK PLANS, Dividends (Details

STOCK PLANS, Dividends (Details)		6 Months Ended
	Jan. 26, 2023	Jun. 30, 2023
Dividends [Abstract]
Stock dividend percentage	5%
Dividends, date declared		Jan. 26, 2023
Dividends, date to be paid		Mar. 24, 2023
Dividends, date of record		Feb. 28, 2023

STOCK PLANS, Stock Options (Det

STOCK PLANS, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Stock options, number of shares [Roll Forward]
Balance, beginning of period (in shares)	663,678	684,837	684,837
Granted (in shares)	0		0
Expired (in shares)	0		0
Cancelled / Forfeited (in shares)	0		0
Exercised (in shares)	0		(21,159)
Balance, end of period (in shares)	663,678	663,678	663,678
Exercisable (vested) at end of period (in shares)	578,314		578,314
Stock options, weighted average exercise price [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 8.56	$ 8.41	$ 8.41
Granted (in dollars per share)	0		0
Expired (in dollars per share)	0		0
Cancelled / Forfeited (in dollars per share)	0		0
Exercised (in dollars per share)	0		3.83
Balance, end of period (in dollars per share)	8.56	$ 8.56	8.56
Exercisable (vested) at end of period (in dollars per share)	$ 8.39		$ 8.39
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value	$ 240,488		$ 240,488
Exercisable (vested), aggregate intrinsic value	$ 240,488		$ 240,488
Outstanding, weighted average remaining contractual term	4 years 11 months 12 days		4 years 11 months 12 days
Exercisable (vested), weighted average remaining contractual term	4 years 6 months 29 days		4 years 6 months 29 days
Intrinsic value of options exercised			$ 97,000	$ 125,000
Fair value of awards vested			123,000	$ 142,000
Unrecognized compensation related to non-vested stock options	$ 109,000		$ 109,000
Unrecognized compensation cost, period for recognition			1 year 11 months 19 days
Recognized compensation cost	$ 22,000		$ 49,000

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	273,973	248,418
Granted (in shares) | shares	1,500	77,351
Cancelled / Forfeited (in shares) | shares	0	0
Exercised / Released / Vested (in shares) | shares	0	(50,296)
Outstanding at end of period (in shares) | shares	275,473	275,473
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.18	$ 9.34
Granted (in dollars per share) | $ / shares	7.1	8.49
Cancelled/Forfeited (in dollars per share) | $ / shares	0	0
Exercised / Released / Vested (in dollars per share) | $ / shares	0	8.96
Outstanding at end of period (in dollars per share) | $ / shares	$ 9.17	$ 9.17
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 1,928,311	$ 1,928,311
Outstanding, weighted average remaining contractual term	2 years 11 months 8 days	2 years 11 months 8 days
Unrecognized compensation related to restricted stock | $	$ 1,539,000	$ 1,539,000
Unrecognized compensation cost, period for recognition		2 years 11 months 8 days
Recognized compensation cost | $	$ 158,000	$ 315,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details) - USD ($)		3 Months Ended	6 Months Ended
	Jan. 26, 2023	Jun. 30, 2023	Jun. 30, 2023
Employee Stock Purchase Plan [Abstract]
Stock dividend percentage	5%
Dividends, date declared			Jan. 26, 2023
Dividends, date to be paid			Mar. 24, 2023
Dividends, date of record			Feb. 28, 2023
Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Unrecognized compensation cost		$ 15,000	$ 15,000
Weighted average period to recognize the unrecognized compensation			6 months
Recognized compensation cost		$ 8,000	$ 16,000
Weighted average fair value option at issuance date (in dollars per share)			$ 1.83
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate		4.75%	4.75%
Expected dividend yield		0%	0%
Expected life		1 year	1 year
Expected price volatility		16.58%	16.58%
2016 Amended Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan [Abstract]
Shares authorized for issuance under plan (in shares)		358,911	358,911
Purchase price of stock in percentage for participation			85%
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%

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	$ 135,785	$ 125,040	$ 134,130	$ 150,911	$ 125,040	$ 150,911
Current period other comprehensive income (loss)	(3,690)	6,013	(10,641)	(19,963)	2,323	(30,604)
Balance	136,730	135,785	127,134	134,130	136,730	127,134
Accumulated Other Comprehensive Income (Loss) [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	(40,515)	(46,528)	(24,160)	(4,197)	(46,528)	(4,197)
Current period other comprehensive income (loss)	(3,690)	6,013	(10,641)	(19,963)	2,323	(30,604)
Balance	(44,205)	(40,515)	(34,801)	(24,160)	(44,205)	(34,801)
Unrealized Gains (Losses) on Securities [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	(40,260)	(46,273)	(22,727)	(2,764)	(46,273)	(2,764)
Current period other comprehensive income (loss)	(3,690)		(10,641)		2,323	(30,604)
Balance	(43,950)	(40,260)	(33,368)	(22,727)	(43,950)	(33,368)
Officers' Retirement Plan [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	(308)	(308)	(1,420)	(1,420)	(308)	(1,420)
Current period other comprehensive income (loss)	0		0		0	0
Balance	(308)	(308)	(1,420)	(1,420)	(308)	(1,420)
Directors' Retirement Plan [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	53	53	(13)	(13)	53	(13)
Current period other comprehensive income (loss)	0		0		0	0
Balance	$ 53	$ 53	$ (13)	$ (13)	$ 53	$ (13)

OUTSTANDING SHARES AND EARNIN_3

OUTSTANDING SHARES AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
	Jan. 26, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Dividends, date declared						Jan. 26, 2023
Stock dividend percentage	5%
Dividends, date to be paid						Mar. 24, 2023
Dividends, date of record						Feb. 28, 2023
Basic earnings per share [Abstract]
Net income		$ 4,564	$ 5,489	$ 3,546	$ 3,041	$ 10,053	$ 6,587
Weighted average common shares outstanding (in shares)		14,454,826		14,408,458		14,438,460	14,390,219
Basic EPS (in dollars per share)		$ 0.32		$ 0.25		$ 0.7	$ 0.46
Diluted earnings per share [Abstract]
Net income		$ 4,564	$ 5,489	$ 3,546	$ 3,041	$ 10,053	$ 6,587
Weighted average common shares outstanding (in shares)		14,454,826		14,408,458		14,438,460	14,390,219
Effect of dilutive shares (in shares)		92,894		154,659		113,913	168,885
Adjusted weighted average common shares outstanding (in shares)		14,547,720		14,563,117		14,552,373	14,559,104
Diluted EPS (in dollars per share)		$ 0.31		$ 0.24		$ 0.69	$ 0.45
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		513,038		411,495		513,048	362,647
Restricted Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		104,106		74,522		67,847	55,583

LEASES (Details)

LEASES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Location	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Operating Lease, Description [Abstract]
Number of branch and administrative locations leased | Location			11
Lease right-of-use assets	$ 4,615,000		$ 4,615,000		$ 4,905,000
Lease liabilities	5,119,000		5,119,000		5,422,000
Lease expense	293,000	$ 294,000	601,000	$ 588,000
Maturities of Remaining Lease Liabilities [Abstract]
2023 (remaining 6 months)	593,000		593,000
2024	1,040,000		1,040,000
2025	1,052,000		1,052,000
2026	672,000		672,000
2027	611,000		611,000
2028 and thereafter	1,520,000		1,520,000
Total lease payments	5,488,000		5,488,000
Less: interest	(369,000)		(369,000)
Present value of lease liabilities	5,119,000		5,119,000		$ 5,422,000
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	301,000	304,000	614,000	603,000
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0	$ 245,000	$ 707,000
Weighted Average Operating Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term - operating leases, in years	5 years 8 months 8 days		5 years 8 months 8 days		6 years 1 month 20 days
Weighted-average discount rate - operating leases	2.44%		2.44%		2.37%
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

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details)		3 Months Ended		6 Months Ended
	Jan. 20, 2023 USD ($) Branches	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($) $ / shares
Liabilities assumed [Abstract]
Bargain purchase gain recognized		$ 0	$ 0	$ 1,405,000	$ 0
Summarized proforma income statement data [Abstract]
Net interest income		17,782,000	13,413,000	34,001,000	25,451,000
Provision for loan losses		2,600,000	300,000	2,600,000	600,000
Non-interest income		1,506,000	1,666,000	4,418,000	3,758,000
Non-interest expense		10,367,000	9,987,000	21,822,000	19,747,000
Income before taxes		6,321,000	4,792,000	13,997,000	8,862,000
Provision for income taxes		1,757,000	1,304,000	3,867,000	2,395,000
Net income		$ 4,564,000	$ 3,488,000	$ 10,130,000	$ 6,467,000
Basic earnings per share (in dollars per share) | $ / shares		$ 0.32	$ 0.24	$ 0.7	$ 0.45
Diluted earnings per share (in dollars per share) | $ / shares		$ 0.31	$ 0.24	$ 0.7	$ 0.44
Core Deposit Intangible [Member]
Business Combination [Abstract]
Core deposit intangible estimated life				10 years
Columbia State Bank [Member]
Business Combination [Abstract]
Number of branches | Branches	3
Acquisition related costs		$ 0	$ 0	$ 204,000	$ 0
Fair value of consideration received [Abstract]
Cash consideration received	$ 103,425,000
Total fair value of consideration received	103,425,000
Assets acquired [Abstract]
Cash and cash equivalents	1,284,000
Loans	4,006,000
Premises and equipment	3,621,000
Core deposit intangible	4,970,000
Other assets	15,000
Total assets acquired	13,896,000
Liabilities assumed [Abstract]
Deposits	115,914,000
Other liabilities	2,000
Total liabilities assumed	115,916,000
Cost basis of net liabilities assumed	(107,097,000)
Total net liabilities assumed	102,020,000
Bargain purchase gain recognized	1,405,000
Columbia State Bank [Member] | Fair Value Adjustments [Member]
Assets acquired [Abstract]
Loans	(363,000)
Premises and equipment	307,000
Core deposit intangible	4,970,000
Liabilities assumed [Abstract]
Deposits	$ 163,000
Columbia State Bank [Member] | Core Deposit Intangible [Member]
Business Combination [Abstract]
Core deposit intangible estimated life				10 years