First Northern Community Bancorp (FNRN) 10-Q 9 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 06, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		14,730,761

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 197,105	$ 187,417
Certificates of deposit	20,696	20,948
Investment securities - available-for-sale, at estimated fair value, net of allowance for credit losses of $0; amortized cost of $636,903 at September 30, 2023 and $683,784 at December 31, 2022	567,409	618,092
Loans, net of allowance for credit losses of $16,149 at September 30, 2023 and $14,792 at December 31, 2022	1,037,066	970,138
Loans held-for-sale	369	0
Stock in Federal Home Loan Bank and other equity securities, at cost	10,518	9,440
Premises and equipment, net	10,058	6,122
Core deposit intangible	4,367	0
Interest receivable and other assets	54,740	59,204
Total Assets	1,902,328	1,871,361
Liabilities:
Demand deposits	770,620	775,173
Interest-bearing transaction deposits	405,980	448,039
Savings and MMDA's	444,646	459,307
Time, $250,000 or less	106,241	35,115
Time, over $250,000	18,857	9,240
Total deposits	1,746,344	1,726,874
Interest payable and other liabilities	19,498	19,447
Total Liabilities	1,765,842	1,746,321
Commitments and contingencies (Note 7)
Stockholders' Equity:
Common stock, no par value; 32,000,000 shares authorized at September 30, 2023, 16,000,000 shares authorized at December 31, 2022; 14,732,351 shares issued and outstanding at September 30, 2023 and 14,652,584 shares issued and outstanding at December 31, 2022	116,768	116,099
Additional paid-in capital	977	977
Retained earnings	67,945	54,492
Accumulated other comprehensive loss, net	(49,204)	(46,528)
Total Stockholders' Equity	136,486	125,040
Total Liabilities and Stockholders' Equity	$ 1,902,328	$ 1,871,361

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Investment securities available-for-sale, amortized cost	$ 636,903	$ 683,784
Investment securities - available-for-sale, at estimated fair value, allowance for loan losses	0	0
Loans, allowance for credit losses	$ 16,149	$ 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)	14,732,351	14,652,584
Common stock, shares outstanding (in shares)	14,732,351	14,652,584

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest and dividend income:
Loans	$ 13,098	$ 10,857	$ 38,197	$ 30,979
Due from banks interest bearing accounts	2,064	1,118	6,967	1,793
Investment securities
Taxable	2,685	2,122	8,041	5,783
Non-taxable	199	250	692	634
Other earning assets	214	137	557	361
Total interest and dividend income	18,260	14,484	54,454	39,550
Interest expense:
Deposits	2,386	271	4,817	691
Total interest expense	2,386	271	4,817	691
Net interest income	15,874	14,213	49,637	38,859
Provision for credit losses	500	300	3,100	900
Net interest income after provision for credit losses	15,374	13,913	46,537	37,959
Non-interest income:
Service charges on deposit accounts	436	414	1,259	1,308
Gains on sales of loans held-for-sale	62	27	93	145
Investment and brokerage services income	136	137	387	443
Mortgage brokerage income	11	10	21	21
Loan servicing income	79	78	209	569
Debit card income	713	635	2,094	1,915
Losses on sales/calls of available-for-sale securities	0	0	(64)	(152)
Gain on bargain purchase	0	0	1,405	0
Other income	339	769	751	1,231
Total non-interest income	1,776	2,070	6,155	5,480
Non-interest expenses:
Salaries and employee benefits	6,377	6,164	19,653	17,578
Occupancy and equipment	1,064	896	3,138	2,645
Data processing	933	912	2,949	2,587
Stationery and supplies	103	75	272	203
Advertising	111	99	322	276
Directors' fees	83	60	234	196
Amortization of core deposit intangible	226	0	603	0
Other expense	1,986	1,703	5,363	4,854
Total non-interest expenses	10,883	9,909	32,534	28,339
Income before provision for income taxes	6,267	6,074	20,158	15,100
Provision for income taxes	1,648	1,506	5,486	3,945
Net income	$ 4,619	$ 4,568	$ 14,672	$ 11,155
Basic earnings per common share (in dollars per share)	$ 0.32	$ 0.32	$ 1.01	$ 0.77
Diluted earnings per common share (in dollars per share)	$ 0.32	$ 0.31	$ 1.01	$ 0.77

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract]
Net income	$ 4,619	$ 4,568	$ 14,672	$ 11,155
Other comprehensive loss, net of tax:
Unrealized holding losses arising during the period, net of tax effect of $(2,097) and $(7,461) for the three months ended September 30, 2023 and September 30, 2022, respectively, and $(1,145) and $(19,850) for the nine months ended September 30, 2023 and September 30, 2022, respectively	(4,999)	(18,492)	(2,721)	(49,204)
Less: reclassification adjustment due to losses realized on sales of securities, net of tax effect of $0 for each of the three months ended September 30, 2023 and September 30, 2022, and $19 and $44 for the nine months ended September 30, 2023 and September 30, 2022, respectively	0	0	45	108
Other comprehensive loss, net of tax	(4,999)	(18,492)	(2,676)	(49,096)
Comprehensive (loss) income	$ (380)	$ (13,924)	$ 11,996	$ (37,941)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other comprehensive loss, net of tax:
Unrealized holding (losses) gains arising during the period, tax	$ (2,097)	$ (7,461)	$ (1,145)	$ (19,850)
Reclassification adjustment due to losses realized on sales of securities, tax	$ 0	$ 0	$ 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 Loss [Member]	Accumulated Other Comprehensive 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										11,155
Other comprehensive income (loss), net of tax								(49,096)		(49,096)
Balance at Sep. 30, 2022	$ 110,557		977		55,119			(53,293)		113,360
Balance (in shares) at Sep. 30, 2022	13,922,049
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					4,568					4,568
Other comprehensive income (loss), net of tax								(18,492)		(18,492)
Stock-based compensation	$ 168									168
Stock repurchase and retirement	$ (18)									(18)
Stock repurchase and retirement (in shares)	(2,000)
Balance at Sep. 30, 2022	$ 110,557		977		55,119			(53,293)		113,360
Balance (in shares) at Sep. 30, 2022	13,922,049
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										14,672
Other comprehensive income (loss), net of tax								(2,676)		(2,676)
Balance at Sep. 30, 2023	$ 116,768		977		67,945			(49,204)		136,486
Balance (in shares) at Sep. 30, 2023	14,732,351
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					4,619					4,619
Other comprehensive income (loss), net of tax								(4,999)		(4,999)
Stock-based compensation	$ 136									136
Restricted stock cancelled, net of common shares issued related to restricted stock grants										0
Restricted stock cancelled, net of common shares issued related to restricted stock grants (in shares)	(10,209)
Stock options exercised, net of swapped shares	$ 0									0
Stock options exercised, net of swapped shares (in shares)	21,927
Balance at Sep. 30, 2023	$ 116,768		$ 977		$ 67,945			$ (49,204)		$ 136,486
Balance (in shares) at Sep. 30, 2023	14,732,351

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows From Operating Activities
Net income	$ 14,672	$ 11,155
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	730	571
Accretion and amortization of investment securities premiums and discounts, net	1,591	3,545
Valuation adjustment on mortgage servicing rights	0	(276)
Increase (decrease) in deferred loan origination fees and costs, net	759	(2,259)
Amortization of core deposit intangible	603	0
Provision for credit losses	3,100	900
Stock-based compensation	516	500
Losses on sales/calls of available-for-sale securities	64	152
Amortization of operating lease right-of-use asset	806	835
Gains on sales of loans held-for-sale	(93)	(145)
Proceeds from sales of loans held-for-sale	5,277	10,206
Originations of loans held-for-sale	(5,553)	(8,998)
Gain on bargain purchase	(1,405)	0
Changes in assets and liabilities:
Decrease (increase) in interest receivable and other assets	4,128	(2,167)
Decrease in interest payable and other liabilities	(196)	(995)
Net cash provided by operating activities	24,999	13,024
Cash Flows From Investing Activities
Proceeds from calls or maturities of available-for-sale securities	30,766	11,090
Proceeds from sales of available-for-sale securities	16,987	6,349
Principal repayments on available-for-sale securities	54,864	77,635
Purchases of available-for-sale securities	(57,391)	(143,445)
Proceeds from maturities of certificates of deposit	3,687	4,416
Proceeds from sales of certificates of deposit	0	493
Purchases of certificates of deposit	(3,435)	(2,728)
Net increase in loans	(66,781)	(117,173)
Purchases of Federal Home Loan Bank stock and other equity securities, at cost	(1,078)	(2,343)
Purchases of premises and equipment	(1,045)	(37)
Cash and cash equivalents acquired in acquisition	103,425	0
Net cash provided by (used in) investing activities	79,999	(165,743)
Cash Flows From Financing Activities
Net (decrease) increase in deposits	(95,160)	71,303
Cash dividends paid in lieu of fractional shares	(7)	(8)
Repurchases of common stock	(143)	(102)
Net cash (used in) provided by financing activities	(95,310)	71,193
Net increase (decrease) in Cash and Cash Equivalents	9,688	(81,526)
Cash and Cash Equivalents, beginning of period	187,417	345,929
Cash and Cash Equivalents, end of period	197,105	264,403
Cash paid during the period for:
Interest	3,699	644
Income taxes	0	3,810
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed	5,652	6,992
Unrealized holding losses on available for sale securities, net of taxes	(2,676)	(49,096)
Market value of shares tendered in-lieu of cash to pay for exercise of options	361	65
Recognition of right-of-use assets obtained in exchange for operating lease liabilities	245	869
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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 $1,991,000 and $2,151,000 as of September 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 $5,194,000 and $3,594,000 as of September 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	9 Months Ended
	Sep. 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 September 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 $ 101,564 $ 1 $ (4,587 ) $ 96,978 Securities of U.S. government agencies and corporations 123,822 — (8,858 ) 114,964 Obligations of states and political subdivisions 51,386 1 (6,903 ) 44,484 Collateralized mortgage obligations 112,079 1 (20,780 ) 91,300 Mortgage-backed securities 248,052 1 (28,370 ) 219,683 Total debt securities $ 636,903 $ 4 $ (69,498 ) $ 567,409 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 no proceeds from sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022, respectively. The Company had $16,987,000 and $6,349,000 in proceeds from sales of available-for-sale securities for the nine-month periods ended September 30, 2023 and 2022, respectively. There were no gross realized gains on sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022. Gross realized gains on sales of available-for-sale securities were $96,000 and $0 for the nine-month periods ended September 30, 2023 and 2022, respectively. There were no gross realized losses on sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022. Gross realized losses on sales of available-for-sale securities were $160,000 and $152,000 for the nine-month periods ended September 30, 2023 and 2022, respectively. The amortized cost and estimated fair value of debt and other securities at September 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 $ 89,660 $ 87,943 Due after one year through five years 135,601 125,056 Due after five years through ten years 24,901 21,549 Due after ten years 26,610 21,878 Subtotal 276,772 256,426 Mortgage-backed securities & Collateralized mortgage obligations 360,131 310,983 Total $ 636,903 $ 567,409 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 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 $ 10,775 $ (53 ) $ 83,726 $ (4,534 ) $ 94,501 $ (4,587 ) Securities of U.S. government agencies and corporations 17,526 (183 ) 97,438 (8,675 ) 114,964 (8,858 ) Obligations of states and political subdivisions 9,900 (430 ) 34,011 (6,473 ) 43,911 (6,903 ) Collateralized mortgage obligations 11,689 (244 ) 77,729 (20,536 ) 89,418 (20,780 ) Mortgage-backed securities 31,322 (1,081 ) 185,973 (27,289 ) 217,295 (28,370 ) Total $ 81,212 $ (1,991 ) $ 478,877 $ (67,507 ) $ 560,089 $ (69,498 ) Sixty-eight securities, all considered investment grade, which had an aggregate fair value of $81,212,000 and a total unrealized loss of $1,991,000, have been in an unrealized loss position for less than twelve months as of September 30, 2023. Four hundred and ninety-six The fair value of investment securities could decline in the future if the general economy deteriorates, inflation and interest rate increases, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, an allowance for credit loss 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 $45,366,000 and $44,319,000 at September 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	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022 was as follows: ($ in thousands) September 30, 2023 December 31, 2022 Commercial $ 93,753 $ 106,771 Commercial Real Estate 718,847 645,166 Agriculture 109,942 114,040 Residential Mortgage 101,755 92,669 Residential Construction 14,021 10,167 Consumer 14,826 15,287 1,053,144 984,100 Allowance for credit losses (16,149 ) (14,792 ) Deferred origination fees and costs, net 71 830 Loans, net $ 1,037,066 $ 970,138 At September 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 For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: Allowance for credit losses – Three months ended September 30, 2023 ($ in thousands) Beginning balance Charge-offs Recoveries Provision (recovery) Ending Balance Commercial $ 1,775 $ (91 ) $ 20 $ 32 $ 1,736 Commercial Real Estate 10,050 — — 526 10,576 Agriculture 939 — — 80 1,019 Residential Mortgage 1,824 — — 79 1,903 Residential Construction 487 — — (155 ) 332 Consumer 367 (9 ) — 4 362 Unallocated 137 — — 84 221 Allowance for credit losses on loans 15,579 (100 ) 20 650 16,149 Reserve for unfunded commitments 1,200 — — (150 ) 1,050 Total $ 16,779 $ (100 ) $ 20 $ 500 $ 17,199 Allowance for credit losses – Nine months ended September 30, 2023 ($ in thousands) Beginning balance Adoption of CECL Charge-offs Recoveries Provision (recovery) Ending Balance Commercial $ 1,463 $ 623 $ (269 ) $ 155 $ (236 ) $ 1,736 Commercial Real Estate 10,073 (464 ) — — 967 10,576 Agriculture 1,757 (671 ) (2,567 ) — 2,500 1,019 Residential Mortgage 880 834 (3 ) — 192 1,903 Residential Construction 178 200 — — (46 ) 332 Consumer 173 201 (10 ) 1 (3 ) 362 Unallocated 268 77 — — (124 ) 221 Allowance for credit losses on loans 14,792 800 (2,849 ) 156 3,250 16,149 Reserve for unfunded commitments 700 500 — — (150 ) 1,050 Total $ 15,492 $ 1,300 $ (2,849 ) $ 156 $ 3,100 $ 17,199 During . The following tables summarize the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275 Provision for (reversal of) loan losses (385 ) 566 128 45 (21 ) 26 (59 ) 300 Charge-offs — — — — — (30 ) — (30 ) Recoveries 225 — — — — 1 — 226 Net (charge-offs)/recoveries 225 — — — — (29 ) — 196 Balance as of September 30, 2022 $ 1,490 $ 10,137 $ 1,822 $ 847 $ 130 $ 176 $ 169 $ 14,771 Nine Months Ended September 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 (66 ) 1,329 340 105 56 42 (906 ) 900 Charge-offs (297 ) — — — — (39 ) — (336 ) Recoveries 249 — — — — 6 — 255 Net (charge-offs)/recoveries (48 ) — — — — (33 ) — (81 ) Balance as of September 30, 2022 $ 1,490 $ 10,137 $ 1,822 $ 847 $ 130 $ 176 $ 169 $ 14,771 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 September 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 September 30, 2023 and December 31, 2022: September 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 — — — — — 1,008 4,012 5,020 Residential Mortgage 400 — — — — — — 400 Residential Construction — — — — — — — — Consumer — 372 327 — — — — 699 Total $ 400 $ 372 $ 327 $ — $ — $ 1,008 $ 4,012 $ 6,119 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 September 30, 2023 and December 31, 2022. Non-accrual and Past Due Loans The Company’s loans by delinquency and non-accrual status, as of September 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 September 30 2023 Commercial $ 7 $ 47 $ — $ — $ 54 $ 93,699 $ 93,753 $ — Commercial Real Estate 1,910 1,956 — — 3,866 714,981 718,847 — Agriculture — — — 5,020 5,020 104,922 109,942 5,020 Residential Mortgage 636 — — 400 1,036 100,719 101,755 400 Residential Construction 3,420 — — — 3,420 10,601 14,021 — Consumer 45 — — 699 744 14,082 14,826 699 Total $ 6,018 $ 2,003 $ — $ 6,119 $ 14,140 $ 1,039,004 $ 1,053,144 $ 6,119 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 $4,000 and $19,000 of interest income on nonaccrual loans during the three months ended September 30, 2023 and September 30, 2022, respectively. The Company recognized $1,289,000 and $46,000 of interest income on nonaccrual loans during the nine months ended September 30, 2023 and September 30, 2022, respectively. Loan Modifications On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Occasionally, the Company modifies loans to borrowers in financial difficulty by providing principal forgiveness, term extension, payment delays or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following tables present the amortized cost basis of loans that were experiencing both financial difficulty and modification during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below. The amortized cost basis of loans that were experiencing both financial difficulty and modification during the three months ended September 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ — — Commercial Real Estate — — — Agriculture — — — Residential Mortgage — — — Residential Construction 3,420 — 24.39 % Consumer — — — Total $ 3,420 $ — 24.39 % The amortized cost basis of loans that were experiencing both financial difficulty and modification during the nine months ended September 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ 44 0.05 % Commercial Real Estate — 398 0.06 % Agriculture 4,005 — 3.64 % Residential Mortgage — — — Residential Construction 3,420 — 24.39 % Consumer — — — Total $ 7,425 $ 442 28.14 % The Company had commitments to lend additional funds totaling $580,000 to borrowers whose loans were modified at September 30, 2023. The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the three-month period ended September 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial — $ — Commercial Real Estate — — Agriculture — — Residential Mortgage — — Residential Construction — 1 Consumer — — Total — $ 1 The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the nine-month period ended September 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 — 1 Consumer — — Total 0.27 % $ 4 There were no loans modified within the previous twelve months and for which there was a payment default during the three months ended September 30, 2023. 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 nine months ended September 30, 2023. The Company recorded charge-offs on these two agricultural loans totaling $2,567,000 during the nine months ended September 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 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 $8,399,000 as of December 31, 2022. There were no loans modified as TDRs during the three months ended September 30, 2022. Loans modified as TDRs during the nine months ended September 30, 2022 were as follows: ($ in thousands) Nine months ended September 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 nine month periods ended September 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 September 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 $80,000 as of September 30, 2023. (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 7,398 $ 18,546 $ 22,473 $ 5,829 $ 7,999 $ 6,764 $ 20,995 $ 90,004 Special Mention — — — 258 326 — 945 1,529 Substandard 44 — 1,576 553 — — 47 2,220 Doubtful/Loss — — — — — — — — Total Commercial loans $ 7,442 $ 18,546 $ 24,049 $ 6,640 $ 8,325 $ 6,764 $ 21,987 $ 93,753 Year-to-date Period Charge-offs — (146 ) (36 ) — (87 ) — — (269 ) Year-to-date Recoveries — — — — 87 68 — 155 Year-to-date Net Charge-offs — (146 ) (36 ) — — 68 — (114 ) Commercial Real Estate Pass $ 98,815 $ 171,601 $ 197,873 $ 50,758 $ 52,652 $ 121,005 $ 6,953 $ 699,657 Special Mention — — 2,219 846 2,898 1,291 — 7,254 Substandard 398 — 1,728 2,117 6,671 1,022 — 11,936 Doubtful/Loss — — — — — — — — Total Commercial Real Estate loans $ 99,213 $ 171,601 $ 201,820 $ 53,721 $ 62,221 $ 123,318 $ 6,953 $ 718,847 Year-to-date Charge-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — — — — Agriculture Pass $ 6,836 $ 21,080 $ 23,854 $ 8,868 $ 4,459 11,712 $ 27,050 $ 103,859 Special Mention — — — — — 1,064 — 1,064 Substandard — — 1,525 — — — 3,494 5,019 Doubtful/Loss — — — — — — — — Total Agriculture loans $ 6,836 $ 21,080 $ 25,379 $ 8,868 $ 4,459 $ 12,776 $ 30,544 $ 109,942 Year-to-date Charge-offs (1,825 ) — — — — — (742 ) (2,567 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs (1,825 ) — — — — — (742 ) (2,567 ) (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential Mortgage Pass $ 14,581 $ 23,310 $ 26,725 $ 15,053 $ 6,073 $ 15,574 $ — $ 101,316 Special Mention — — — — — — — — Substandard — — 39 — — 400 — 439 Doubtful/Loss — — — — — — — — Total Residential Mortgage loans $ 14,581 $ 23,310 $ 26,764 $ 15,053 $ 6,073 $ 15,974 $ — $ 101,755 Year-to-date Charge-offs — — — — — (3 ) — (3 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — (3 ) — (3 ) Residential Construction Pass $ 3,086 $ 4,521 $ 2,994 $ — $ — $ — $ — $ 10,601 Special Mention — — — — — — — — Substandard — 3,420 — — — — — 3,420 Doubtful/Loss — — — — — — — — Total Residential Construction loans $ 3,086 $ 7,941 $ 2,994 $ — $ — $ — $ — $ 14,021 Year-to-date Charge-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — — — — Consumer Pass $ 357 $ 801 $ 138 $ 172 $ 64 $ 433 $ 12,162 $ 14,127 Special Mention — — — — — — — — Substandard — — — — — — 699 699 Doubtful/Loss — — — — — — — — Total Consumer loans $ 357 $ 801 $ 138 $ 172 $ 64 $ 433 $ 12,861 $ 14,826 Year-to-date Charge-offs (10 ) — — — — — — (10 ) Year-to-date Recoveries — — — — — 1 — 1 Year-to-date Net Charge-offs (10 ) — — — — 1 — (9 ) Total Loans Pass $ 131,073 $ 239,859 $ 274,057 $ 80,680 $ 71,247 $ 155,488 $ 67,160 $ 1,019,564 Special Mention — — 2,219 1,104 3,224 2,355 945 9,847 Substandard 442 3,420 4,868 2,670 6,671 1,422 4,240 23,733 Doubtful/Loss — — — — — — — — Total Loans $ 131,515 $ 243,279 $ 281,144 $ 84,454 $ 81,142 $ 159,265 $ 72,345 $ 1,053,144 Year-to-date Charge-offs $ (1,835 ) $ (146 ) $ (36 ) $ — $ (87 ) $ (3 ) $ (742 ) $ (2,849 ) Year-to-date Recoveries $ — $ — $ — $ — $ 87 $ 69 $ — $ 156 Year-to-date Net Charge-offs $ (1,835 ) $ (146 ) $ (36 ) $ — $ — $ 66 $ (742 ) $ (2,693 ) 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 for cash proceeds equal to the fair value of the loans. The Company serviced real estate mortgage loans for others totaling $186,373,000 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 September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Constant prepayment rate 7.58 % 7.55 % Discount rate 9.50 % 9.50 % Weighted average life (years) 7.10 7.20 The following table summarizes the Company’s mortgage servicing rights assets as of September 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 September 30, 2023 Mortgage servicing rights $ 1,650 $ 35 $ (182 ) $ 1,503 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,650 $ 35 $ (182 ) $ 1,503 At September 30, 2023 and December 31, 2022, the estimated fair market value of the Company’s mortgage servicing rights assets was $2,031,000 and $2,101,000, respectively. The change 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 and weighted average life. The Company received contractually specified servicing fees of $117,000 and $126,000 for the three months ended September 30, 2023 and September 30, 2022, respectively. The Company received contractually specified servicing fees of $357,000 and $385,000 for the nine months ended September 30, 2023 and September 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	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022. (in thousands) September 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 $ 96,978 $ 96,978 $ — $ — Securities of U.S. government agencies and corporations 114,964 — 114,964 — Obligations of states and political subdivisions 44,484 — 44,484 — Collateralized mortgage obligations 91,300 — 91,300 — Mortgage-backed securities 219,683 — 219,683 — Total investments at fair value $ 567,409 $ 96,978 $ 470,431 $ — (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 nine months ended September 30, 2023 (in thousands) September 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 September 30, 2023 and December 31, 2022. Key methods and assumptions used in measuring the fair value of collateral dependent loans as of September 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 of 8% (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 September 30, 2023 and December 31, 2022 were approximately as follows: (in thousands) September 30, 2023 December 31, 2022 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 197,105 $ 197,105 $ 187,417 $ 187,417 Certificates of deposit 2 20,696 20,311 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 1,037,066 933,513 970,138 929,163 Loans held-for-sale 2 369 371 — — Interest receivable 2 7,185 7,185 5,745 5,745 Mortgage servicing rights 3 1,503 2,031 1,650 2,101 Financial liabilities: Time deposits 3 125,098 124,671 44,355 43,987 Interest payable 2 1,211 1,211 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	9 Months Ended
	Sep. 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) September 30, 2023 December 31, 2022 Undisbursed loan commitments $ 197,710 $ 205,610 Standby letters of credit 1,251 1,930 Commitments to sell loans 765 — $ 199,726 $ 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 September 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 $1,251,000 and $1,930,000 at September 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 $1,050,000 and $700,000 at September 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 September 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 $310,000 and $0 at September 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 $765,000 and $0 at September 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	9 Months Ended
	Sep. 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 September 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 (51,485 ) 5.44 Options outstanding at End of Period 612,193 $ 8.82 $ 523,161 4.95 Exercisable (vested) at End of Period 526,829 $ 8.67 $ 523,161 4.58 The following table presents the activity related to stock options for the nine months ended September 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 (72,644 ) 4.97 Options outstanding at End of Period 612,193 $ 8.82 $ 523,161 4.95 Exercisable (vested) at End of Period 526,829 $ 8.67 $ 523,161 4.58 The intrinsic value of options exercised was $305,000 and $125,000 during the nine months ended September September September September As of September 30, 2023, there was $87,000 of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 1.90 years. There was $22,000 and $71,000 of recognized compensation cost related to stock options granted for the three and nine months ended September The following table presents the activity related to non-vested restricted stock for the three months ended September 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 275,473 $ 9.17 Granted 1,000 9.55 Cancelled / Forfeited (11,209 ) 9.46 Exercised/Released/Vested (2,428 ) 9.31 Non-vested restricted stock outstanding at End of Period 262,836 $ 9.56 $ 2,494,314 2.76 The following table presents the activity related to non-vested restricted stock for the nine months ended September 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 78,351 8.51 Cancelled / Forfeited (11,209 ) 9.46 Exercised/Released/Vested (52,724 ) 8.98 Non-vested restricted stock outstanding at End of Period 262,836 $ 9.56 $ 2,494,314 2.76 The weighted average fair value of restricted stock granted during the nine months ended September 30, 2023 was $8.51 per share. As of September 30, 2023, there was $1,335,000 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 2.76 years. There was $106,000 and $421,000 of recognized compensation cost related to restricted stock awards for the three and nine months ended September 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 September 30, 2023, there was $7,000 of unrecognized compensation cost related to ESPP issuances. This cost is expected to be recognized over a weighted average period of approximately 0.25 years. There was $8,000 and $24,000 of recognized compensation cost related to ESPP issuances for the three and nine months ended September 30, 2023, respectively. The weighted average fair value option at issuance date during the nine months ended September 30, 2023 was $1.83 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2023 is presented below. Three Months Ended September 30, 2023 Nine Months Ended September 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)	9 Months Ended
	Sep. 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 September 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of June 30, 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) Current period other comprehensive loss (4,999 ) — — (4,999 ) Balance as of September 30 2023 $ (48,949 ) $ (308 ) $ 53 $ (49,204 ) The following table details activity in accumulated other comprehensive loss for the nine months ended September 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 (2,676 ) — — (2,676 ) Balance as of September 30, 2023 $ (48,949 ) $ (308 ) $ 53 $ (49,204 ) The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of June 30, 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 ) Current period other comprehensive loss (18,492 ) — — (18,492 ) Balance as of September 30 2022 $ (51,860 ) $ (1,420 ) $ (13 ) $ (53,293 ) The following table details activity in accumulated other comprehensive loss for the nine months ended September 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 (49,096 ) — — (49,096 ) Balance as of September 30, 2022 $ (51,860 ) $ (1,420 ) $ (13 ) $ (53,293 )

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 and 2022 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Basic earnings per share: Net income $ 4,619 $ 4,568 $ 14,672 $ 11,155 Weighted average common shares outstanding 14,465,191 14,404,438 14,455,772 14,394,959 Basic EPS $ 0.32 $ 0.32 $ 1.01 $ 0.77 Diluted earnings per share: Net income $ 4,619 $ 4,568 $ 14,672 $ 11,155 Weighted average common shares outstanding 14,465,191 14,404,438 14,455,772 14,394,959 Effect of dilutive shares 160,012 150,672 129,448 162,748 Adjusted weighted average common shares outstanding 14,625,203 14,555,110 14,585,220 14,557,707 Diluted EPS $ 0.32 $ 0.31 $ 1.01 $ 0.77 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 338,346 shares and 513,058 shares for the three months ended September 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 0 shares and 74,522 shares for the three months ended September 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 454,174 shares and 413,335 shares for the nine months ended September 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 44,982 shares and 61,966 shares for the nine months ended September 30, 2023 and 2022, respectively.

LEASES

LEASES	9 Months Ended
	Sep. 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 September 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 $4,345,000 and $4,905,000 as of September 30, 2023 and December 31, 2022, respectively. The Company had lease liabilities totaling $4,854,000 and $5,422,000 as of September 30, 2023 and December 31, 2022, respectively. The Company recognized lease expense totaling $315,000 and $286,000 for the three-month periods ended September 30, 2023 and 2022, respectively, and $916,000 and $874,000 for the nine-month periods ended September 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 September 30, 2023: (in thousands) September 30, 2023 2023 $ 297 2024 1,040 2025 1,052 2026 672 2027 611 2028 1,520 Total lease payments 5,192 Less: interest (338 ) Present value of lease liabilities $ 4,854 The following table presents supplemental cash flow information related to leases for the three and nine months ended September 30, 2023: Three months ended September 30, Nine September 30 (in thousands) 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 296 $ 345 $ 910 $ 948 Right-of-use assets obtained in exchange for new operating lease liabilities — 162 245 869 The following table presents the weighted average operating lease term and discount rate as of September September 30, 2023 December 31, 2022 Weighted-average remaining lease term – operating leases, in years 5.55 6.14 Weighted-average discount rate – operating leases 2.43 % 2.37 %

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 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 ASC 805, 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 $154,000 are included in the income statement for the three months ended September 30, 2023 and September 30, 2022, respectively. Acquisition related costs of approximately $204,000 and $154,000 are included in the income statement for the nine months ended September 30, 2023 and September 30, 2022, respectively. 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 nine months ended September 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 (along with the associated deposits and loans) for competitive reasons 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 September 30, 2023 Three months ended September 30, 2022 Nine months ended September 30, 2023 Nine months ended September 30, 2022 Summarized proforma income statement data: Net interest income $ 15,874 $ 14,622 $ 49,875 $ 40,073 Provision for loan losses 500 300 3,100 900 Non-interest income 1,776 2,244 6,194 6,002 Non-interest expense 10,883 10,568 32,705 30,315 Income before taxes 6,267 5,998 20,264 14,860 Provision for income taxes 1,648 1,487 5,515 3,882 Net income $ 4,619 $ 4,511 $ 14,749 $ 10,978 Basic earnings per share $ 0.32 $ 0.31 $ 1.02 $ 0.76 Diluted earnings per share $ 0.32 $ 0.31 $ 1.01 $ 0.75 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 September

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 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)	9 Months Ended
	Sep. 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 $1,991,000 and $2,151,000 as of September 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 $5,194,000 and $3,594,000 as of September 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)	9 Months Ended
	Sep. 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 September 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 $ 101,564 $ 1 $ (4,587 ) $ 96,978 Securities of U.S. government agencies and corporations 123,822 — (8,858 ) 114,964 Obligations of states and political subdivisions 51,386 1 (6,903 ) 44,484 Collateralized mortgage obligations 112,079 1 (20,780 ) 91,300 Mortgage-backed securities 248,052 1 (28,370 ) 219,683 Total debt securities $ 636,903 $ 4 $ (69,498 ) $ 567,409 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 September 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 $ 89,660 $ 87,943 Due after one year through five years 135,601 125,056 Due after five years through ten years 24,901 21,549 Due after ten years 26,610 21,878 Subtotal 276,772 256,426 Mortgage-backed securities & Collateralized mortgage obligations 360,131 310,983 Total $ 636,903 $ 567,409
Analysis of Gross Unrealized Losses of the Available-for-sale Investment Securities Portfolio	An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 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 $ 10,775 $ (53 ) $ 83,726 $ (4,534 ) $ 94,501 $ (4,587 ) Securities of U.S. government agencies and corporations 17,526 (183 ) 97,438 (8,675 ) 114,964 (8,858 ) Obligations of states and political subdivisions 9,900 (430 ) 34,011 (6,473 ) 43,911 (6,903 ) Collateralized mortgage obligations 11,689 (244 ) 77,729 (20,536 ) 89,418 (20,780 ) Mortgage-backed securities 31,322 (1,081 ) 185,973 (27,289 ) 217,295 (28,370 ) Total $ 81,212 $ (1,991 ) $ 478,877 $ (67,507 ) $ 560,089 $ (69,498 ) 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)	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022 was as follows: ($ in thousands) September 30, 2023 December 31, 2022 Commercial $ 93,753 $ 106,771 Commercial Real Estate 718,847 645,166 Agriculture 109,942 114,040 Residential Mortgage 101,755 92,669 Residential Construction 14,021 10,167 Consumer 14,826 15,287 1,053,144 984,100 Allowance for credit losses (16,149 ) (14,792 ) Deferred origination fees and costs, net 71 830 Loans, net $ 1,037,066 $ 970,138
Activity in ACL on Loans by Loan Class	For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: Allowance for credit losses – Three months ended September 30, 2023 ($ in thousands) Beginning balance Charge-offs Recoveries Provision (recovery) Ending Balance Commercial $ 1,775 $ (91 ) $ 20 $ 32 $ 1,736 Commercial Real Estate 10,050 — — 526 10,576 Agriculture 939 — — 80 1,019 Residential Mortgage 1,824 — — 79 1,903 Residential Construction 487 — — (155 ) 332 Consumer 367 (9 ) — 4 362 Unallocated 137 — — 84 221 Allowance for credit losses on loans 15,579 (100 ) 20 650 16,149 Reserve for unfunded commitments 1,200 — — (150 ) 1,050 Total $ 16,779 $ (100 ) $ 20 $ 500 $ 17,199 Allowance for credit losses – Nine months ended September 30, 2023 ($ in thousands) Beginning balance Adoption of CECL Charge-offs Recoveries Provision (recovery) Ending Balance Commercial $ 1,463 $ 623 $ (269 ) $ 155 $ (236 ) $ 1,736 Commercial Real Estate 10,073 (464 ) — — 967 10,576 Agriculture 1,757 (671 ) (2,567 ) — 2,500 1,019 Residential Mortgage 880 834 (3 ) — 192 1,903 Residential Construction 178 200 — — (46 ) 332 Consumer 173 201 (10 ) 1 (3 ) 362 Unallocated 268 77 — — (124 ) 221 Allowance for credit losses on loans 14,792 800 (2,849 ) 156 3,250 16,149 Reserve for unfunded commitments 700 500 — — (150 ) 1,050 Total $ 15,492 $ 1,300 $ (2,849 ) $ 156 $ 3,100 $ 17,199 The following tables summarize the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2022 $ 1,650 $ 9,571 $ 1,694 $ 802 $ 151 $ 179 $ 228 $ 14,275 Provision for (reversal of) loan losses (385 ) 566 128 45 (21 ) 26 (59 ) 300 Charge-offs — — — — — (30 ) — (30 ) Recoveries 225 — — — — 1 — 226 Net (charge-offs)/recoveries 225 — — — — (29 ) — 196 Balance as of September 30, 2022 $ 1,490 $ 10,137 $ 1,822 $ 847 $ 130 $ 176 $ 169 $ 14,771 Nine Months Ended September 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 (66 ) 1,329 340 105 56 42 (906 ) 900 Charge-offs (297 ) — — — — (39 ) — (336 ) Recoveries 249 — — — — 6 — 255 Net (charge-offs)/recoveries (48 ) — — — — (33 ) — (81 ) Balance as of September 30, 2022 $ 1,490 $ 10,137 $ 1,822 $ 847 $ 130 $ 176 $ 169 $ 14,771
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 September 30, 2023 and December 31, 2022: September 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 — — — — — 1,008 4,012 5,020 Residential Mortgage 400 — — — — — — 400 Residential Construction — — — — — — — — Consumer — 372 327 — — — — 699 Total $ 400 $ 372 $ 327 $ — $ — $ 1,008 $ 4,012 $ 6,119 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 September 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 September 30 2023 Commercial $ 7 $ 47 $ — $ — $ 54 $ 93,699 $ 93,753 $ — Commercial Real Estate 1,910 1,956 — — 3,866 714,981 718,847 — Agriculture — — — 5,020 5,020 104,922 109,942 5,020 Residential Mortgage 636 — — 400 1,036 100,719 101,755 400 Residential Construction 3,420 — — — 3,420 10,601 14,021 — Consumer 45 — — 699 744 14,082 14,826 699 Total $ 6,018 $ 2,003 $ — $ 6,119 $ 14,140 $ 1,039,004 $ 1,053,144 $ 6,119 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 September 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 — — — Agriculture — — — Residential Mortgage — — — Residential Construction 3,420 — 24.39 % Consumer — — — Total $ 3,420 $ — 24.39 % The amortized cost basis of loans that were experiencing both financial difficulty and modification during the nine months ended September 30, 2023 were as follows: ($ in thousands) Term Extension Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Commercial $ — $ 44 0.05 % Commercial Real Estate — 398 0.06 % Agriculture 4,005 — 3.64 % Residential Mortgage — — — Residential Construction 3,420 — 24.39 % Consumer — — — Total $ 7,425 $ 442 28.14 % The Company had commitments to lend additional funds totaling $580,000 to borrowers whose loans were modified at September 30, 2023. The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the three-month period ended September 30, 2023: ($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in months) Commercial — $ — Commercial Real Estate — — Agriculture — — Residential Mortgage — — Residential Construction — 1 Consumer — — Total — $ 1 The following table presents the financial effect of the loan modifications to borrowers experiencing financial difficulty during the nine-month period ended September 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 — 1 Consumer — — Total 0.27 % $ 4 Loans modified as TDRs during the nine months ended September 30, 2022 were as follows: ($ in thousands) Nine months ended September 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 September 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 $80,000 as of September 30, 2023. (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 7,398 $ 18,546 $ 22,473 $ 5,829 $ 7,999 $ 6,764 $ 20,995 $ 90,004 Special Mention — — — 258 326 — 945 1,529 Substandard 44 — 1,576 553 — — 47 2,220 Doubtful/Loss — — — — — — — — Total Commercial loans $ 7,442 $ 18,546 $ 24,049 $ 6,640 $ 8,325 $ 6,764 $ 21,987 $ 93,753 Year-to-date Period Charge-offs — (146 ) (36 ) — (87 ) — — (269 ) Year-to-date Recoveries — — — — 87 68 — 155 Year-to-date Net Charge-offs — (146 ) (36 ) — — 68 — (114 ) Commercial Real Estate Pass $ 98,815 $ 171,601 $ 197,873 $ 50,758 $ 52,652 $ 121,005 $ 6,953 $ 699,657 Special Mention — — 2,219 846 2,898 1,291 — 7,254 Substandard 398 — 1,728 2,117 6,671 1,022 — 11,936 Doubtful/Loss — — — — — — — — Total Commercial Real Estate loans $ 99,213 $ 171,601 $ 201,820 $ 53,721 $ 62,221 $ 123,318 $ 6,953 $ 718,847 Year-to-date Charge-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — — — — Agriculture Pass $ 6,836 $ 21,080 $ 23,854 $ 8,868 $ 4,459 11,712 $ 27,050 $ 103,859 Special Mention — — — — — 1,064 — 1,064 Substandard — — 1,525 — — — 3,494 5,019 Doubtful/Loss — — — — — — — — Total Agriculture loans $ 6,836 $ 21,080 $ 25,379 $ 8,868 $ 4,459 $ 12,776 $ 30,544 $ 109,942 Year-to-date Charge-offs (1,825 ) — — — — — (742 ) (2,567 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs (1,825 ) — — — — — (742 ) (2,567 ) (in thousands) Term Loans Amortized Cost Basis by Origination Year - As of September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential Mortgage Pass $ 14,581 $ 23,310 $ 26,725 $ 15,053 $ 6,073 $ 15,574 $ — $ 101,316 Special Mention — — — — — — — — Substandard — — 39 — — 400 — 439 Doubtful/Loss — — — — — — — — Total Residential Mortgage loans $ 14,581 $ 23,310 $ 26,764 $ 15,053 $ 6,073 $ 15,974 $ — $ 101,755 Year-to-date Charge-offs — — — — — (3 ) — (3 ) Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — (3 ) — (3 ) Residential Construction Pass $ 3,086 $ 4,521 $ 2,994 $ — $ — $ — $ — $ 10,601 Special Mention — — — — — — — — Substandard — 3,420 — — — — — 3,420 Doubtful/Loss — — — — — — — — Total Residential Construction loans $ 3,086 $ 7,941 $ 2,994 $ — $ — $ — $ — $ 14,021 Year-to-date Charge-offs — — — — — — — — Year-to-date Recoveries — — — — — — — — Year-to-date Net Charge-offs — — — — — — — — Consumer Pass $ 357 $ 801 $ 138 $ 172 $ 64 $ 433 $ 12,162 $ 14,127 Special Mention — — — — — — — — Substandard — — — — — — 699 699 Doubtful/Loss — — — — — — — — Total Consumer loans $ 357 $ 801 $ 138 $ 172 $ 64 $ 433 $ 12,861 $ 14,826 Year-to-date Charge-offs (10 ) — — — — — — (10 ) Year-to-date Recoveries — — — — — 1 — 1 Year-to-date Net Charge-offs (10 ) — — — — 1 — (9 ) Total Loans Pass $ 131,073 $ 239,859 $ 274,057 $ 80,680 $ 71,247 $ 155,488 $ 67,160 $ 1,019,564 Special Mention — — 2,219 1,104 3,224 2,355 945 9,847 Substandard 442 3,420 4,868 2,670 6,671 1,422 4,240 23,733 Doubtful/Loss — — — — — — — — Total Loans $ 131,515 $ 243,279 $ 281,144 $ 84,454 $ 81,142 $ 159,265 $ 72,345 $ 1,053,144 Year-to-date Charge-offs $ (1,835 ) $ (146 ) $ (36 ) $ — $ (87 ) $ (3 ) $ (742 ) $ (2,849 ) Year-to-date Recoveries $ — $ — $ — $ — $ 87 $ 69 $ — $ 156 Year-to-date Net Charge-offs $ (1,835 ) $ (146 ) $ (36 ) $ — $ — $ 66 $ (742 ) $ (2,693 ) 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)	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Constant prepayment rate 7.58 % 7.55 % Discount rate 9.50 % 9.50 % Weighted average life (years) 7.10 7.20
Mortgage Servicing Rights Assets	The following table summarizes the Company’s mortgage servicing rights assets as of September 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 September 30, 2023 Mortgage servicing rights $ 1,650 $ 35 $ (182 ) $ 1,503 Valuation allowance — — — — Mortgage servicing rights, net of valuation allowance $ 1,650 $ 35 $ (182 ) $ 1,503

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022. (in thousands) September 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 $ 96,978 $ 96,978 $ — $ — Securities of U.S. government agencies and corporations 114,964 — 114,964 — Obligations of states and political subdivisions 44,484 — 44,484 — Collateralized mortgage obligations 91,300 — 91,300 — Mortgage-backed securities 219,683 — 219,683 — Total investments at fair value $ 567,409 $ 96,978 $ 470,431 $ — (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 nine months ended September 30, 2023 (in thousands) September 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 September 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 of 8% (generally ranging from 6% to 10%), or the amount and timing of cash flows based on the loan’s effective interest rate.
Estimated Fair Value of Financial Instruments	The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2023 and December 31, 2022 were approximately as follows: (in thousands) September 30, 2023 December 31, 2022 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 197,105 $ 197,105 $ 187,417 $ 187,417 Certificates of deposit 2 20,696 20,311 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 1,037,066 933,513 970,138 929,163 Loans held-for-sale 2 369 371 — — Interest receivable 2 7,185 7,185 5,745 5,745 Mortgage servicing rights 3 1,503 2,031 1,650 2,101 Financial liabilities: Time deposits 3 125,098 124,671 44,355 43,987 Interest payable 2 1,211 1,211 93 93

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	9 Months Ended
	Sep. 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) September 30, 2023 December 31, 2022 Undisbursed loan commitments $ 197,710 $ 205,610 Standby letters of credit 1,251 1,930 Commitments to sell loans 765 — $ 199,726 $ 207,540

STOCK PLANS (Tables)

STOCK PLANS (Tables)	9 Months Ended
	Sep. 30, 2023
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended September 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 (51,485 ) 5.44 Options outstanding at End of Period 612,193 $ 8.82 $ 523,161 4.95 Exercisable (vested) at End of Period 526,829 $ 8.67 $ 523,161 4.58 The following table presents the activity related to stock options for the nine months ended September 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 (72,644 ) 4.97 Options outstanding at End of Period 612,193 $ 8.82 $ 523,161 4.95 Exercisable (vested) at End of Period 526,829 $ 8.67 $ 523,161 4.58
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended September 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 275,473 $ 9.17 Granted 1,000 9.55 Cancelled / Forfeited (11,209 ) 9.46 Exercised/Released/Vested (2,428 ) 9.31 Non-vested restricted stock outstanding at End of Period 262,836 $ 9.56 $ 2,494,314 2.76 The following table presents the activity related to non-vested restricted stock for the nine months ended September 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 78,351 8.51 Cancelled / Forfeited (11,209 ) 9.46 Exercised/Released/Vested (52,724 ) 8.98 Non-vested restricted stock outstanding at End of Period 262,836 $ 9.56 $ 2,494,314 2.76
Weighted Average Assumptions Used in Valuing ESPP	A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2023 is presented below. Three Months Ended September 30, 2023 Nine Months Ended September 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)	9 Months Ended
	Sep. 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 September 30, 2023. (in thousands) Unrealized losses on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of June 30, 2023 $ (43,950 ) $ (308 ) $ 53 $ (44,205 ) Current period other comprehensive loss (4,999 ) — — (4,999 ) Balance as of September 30 2023 $ (48,949 ) $ (308 ) $ 53 $ (49,204 ) The following table details activity in accumulated other comprehensive loss for the nine months ended September 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 (2,676 ) — — (2,676 ) Balance as of September 30, 2023 $ (48,949 ) $ (308 ) $ 53 $ (49,204 ) The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2022. (in thousands) Unrealized gains on securities Officers’ retirement plan Directors’ retirement plan Accumulated other comprehensive loss Balance as of June 30, 2022 $ (33,368 ) $ (1,420 ) $ (13 ) $ (34,801 ) Current period other comprehensive loss (18,492 ) — — (18,492 ) Balance as of September 30 2022 $ (51,860 ) $ (1,420 ) $ (13 ) $ (53,293 ) The following table details activity in accumulated other comprehensive loss for the nine months ended September 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 (49,096 ) — — (49,096 ) Balance as of September 30, 2022 $ (51,860 ) $ (1,420 ) $ (13 ) $ (53,293 )

OUTSTANDING SHARES AND EARNIN_2

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 and 2022 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Basic earnings per share: Net income $ 4,619 $ 4,568 $ 14,672 $ 11,155 Weighted average common shares outstanding 14,465,191 14,404,438 14,455,772 14,394,959 Basic EPS $ 0.32 $ 0.32 $ 1.01 $ 0.77 Diluted earnings per share: Net income $ 4,619 $ 4,568 $ 14,672 $ 11,155 Weighted average common shares outstanding 14,465,191 14,404,438 14,455,772 14,394,959 Effect of dilutive shares 160,012 150,672 129,448 162,748 Adjusted weighted average common shares outstanding 14,625,203 14,555,110 14,585,220 14,557,707 Diluted EPS $ 0.32 $ 0.31 $ 1.01 $ 0.77

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2023
LEASES [Abstract]
Maturities of Remaining Lease Liabilities	The table below summarizes the maturity of remaining lease liabilities at September 30, 2023: (in thousands) September 30, 2023 2023 $ 297 2024 1,040 2025 1,052 2026 672 2027 611 2028 1,520 Total lease payments 5,192 Less: interest (338 ) Present value of lease liabilities $ 4,854
Supplemental Cash Flow Information Related to Leases	The following table presents supplemental cash flow information related to leases for the three and nine months ended September 30, 2023: Three months ended September 30, Nine September 30 (in thousands) 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 296 $ 345 $ 910 $ 948 Right-of-use assets obtained in exchange for new operating lease liabilities — 162 245 869
Weighted Average Operating Lease Term and Discount Rate	The following table presents the weighted average operating lease term and discount rate as of September September 30, 2023 December 31, 2022 Weighted-average remaining lease term – operating leases, in years 5.55 6.14 Weighted-average discount rate – operating leases 2.43 % 2.37 %

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 Three months ended September 30, 2022 Nine months ended September 30, 2023 Nine months ended September 30, 2022 Summarized proforma income statement data: Net interest income $ 15,874 $ 14,622 $ 49,875 $ 40,073 Provision for loan losses 500 300 3,100 900 Non-interest income 1,776 2,244 6,194 6,002 Non-interest expense 10,883 10,568 32,705 30,315 Income before taxes 6,267 5,998 20,264 14,860 Provision for income taxes 1,648 1,487 5,515 3,882 Net income $ 4,619 $ 4,511 $ 14,749 $ 10,978 Basic earnings per share $ 0.32 $ 0.31 $ 1.02 $ 0.76 Diluted earnings per share $ 0.32 $ 0.31 $ 1.01 $ 0.75

ACCOUNTING POLICIES, Allowance

ACCOUNTING POLICIES, Allowance for Credit Losses (Details) $ in Thousands	Sep. 30, 2023 USD ($) Category	Dec. 31, 2022 USD ($)
Loan Portfolio by Loan Class [Abstract]
Accrued interest receivable, available-for-sale debt securities	$ 1,991	$ 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	$ 5,194	$ 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	9 Months Ended
	Sep. 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	Sep. 30, 2023	Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Retained earnings	$ 67,945	$ 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Investment securities available-for-sale [Abstract]
Amortized cost	$ 636,903		$ 636,903		$ 683,784
Unrealized gains	4		4		102
Unrealized losses	(69,498)		(69,498)		(65,794)
Estimated fair value	567,409		567,409		618,092
Proceeds from sales of available-for-sale securities	0	$ 0	16,987	$ 6,349
Gross realized gains from sales of available-for-sale securities	0	0	96	0
Gross realized losses from sales of available-for-sale securities	0	$ 0	160	$ 152
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	101,564		101,564		119,644
Unrealized gains	1		1		13
Unrealized losses	(4,587)		(4,587)		(5,842)
Estimated fair value	96,978		96,978		113,815
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	123,822		123,822		128,697
Unrealized gains	0		0		20
Unrealized losses	(8,858)		(8,858)		(9,806)
Estimated fair value	114,964		114,964		118,911
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	51,386		51,386		58,955
Unrealized gains	1		1		13
Unrealized losses	(6,903)		(6,903)		(5,642)
Estimated fair value	44,484		44,484		53,326
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	112,079		112,079		114,983
Unrealized gains	1		1		0
Unrealized losses	(20,780)		(20,780)		(19,633)
Estimated fair value	91,300		91,300		95,350
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	248,052		248,052		261,505
Unrealized gains	1		1		56
Unrealized losses	(28,370)		(28,370)		(24,871)
Estimated fair value	$ 219,683		$ 219,683		$ 236,690

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual or Expected Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Maturity in years [Abstract]
Due in one year or less	$ 89,660
Due after one year through five years	135,601
Due after five years through ten years	24,901
Due after ten years	26,610
Subtotal	276,772
Mortgage-backed securities & Collateralized mortgage obligations	360,131
Amortized cost	636,903	$ 683,784
Maturity in years [Abstract]
Due in one year or less	87,943
Due after one year through five years	125,056
Due after five years through ten years	21,549
Due after ten years	21,878
Subtotal	256,426
Mortgage-backed securities & Collateralized mortgage obligations	310,983
Estimated fair value	$ 567,409	$ 618,092

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details) $ in Thousands	Sep. 30, 2023 USD ($) Security	Dec. 31, 2022 USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 81,212	$ 275,604
12 months or more, fair value	478,877	327,817
Total fair value	560,089	603,421
Less than 12 months, unrealized losses	(1,991)	(14,760)
12 Months or more, unrealized losses	(67,507)	(51,034)
Total unrealized losses	$ (69,498)	(65,794)
Investment securities in an unrealized loss position less than 12 months | Security	68
Investment securities in an unrealized loss position more than 12 months | Security	496
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	45,366	44,319
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	10,775	54,574
12 months or more, fair value	83,726	56,872
Total fair value	94,501	111,446
Less than 12 months, unrealized losses	(53)	(1,680)
12 Months or more, unrealized losses	(4,534)	(4,162)
Total unrealized losses	(4,587)	(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	17,526	45,261
12 months or more, fair value	97,438	69,635
Total fair value	114,964	114,896
Less than 12 months, unrealized losses	(183)	(1,341)
12 Months or more, unrealized losses	(8,675)	(8,465)
Total unrealized losses	(8,858)	(9,806)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	9,900	40,479
12 months or more, fair value	34,011	10,049
Total fair value	43,911	50,528
Less than 12 months, unrealized losses	(430)	(3,022)
12 Months or more, unrealized losses	(6,473)	(2,620)
Total unrealized losses	(6,903)	(5,642)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	11,689	36,040
12 months or more, fair value	77,729	59,310
Total fair value	89,418	95,350
Less than 12 months, unrealized losses	(244)	(2,586)
12 Months or more, unrealized losses	(20,536)	(17,047)
Total unrealized losses	(20,780)	(19,633)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	31,322	99,250
12 months or more, fair value	185,973	131,951
Total fair value	217,295	231,201
Less than 12 months, unrealized losses	(1,081)	(6,131)
12 Months or more, unrealized losses	(27,289)	(18,740)
Total unrealized losses	$ (28,370)	$ (24,871)

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Loan Portfolio by Loan Class [Abstract]
Loans	$ 1,053,144		$ 984,100
Allowance for credit losses	(16,149)	$ (15,579)	(14,792)	$ (14,771)	$ (13,952)
Deferred origination fees and costs, net	71		830
Loans, net	1,037,066		970,138
Commercial [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	93,753		106,771
Allowance for credit losses	(1,736)	(1,775)	(1,463)	(1,490)	(1,604)
Commercial Real Estate [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	718,847		645,166
Allowance for credit losses	(10,576)	(10,050)	(10,073)	(10,137)	(8,808)
Agriculture [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	109,942		114,040
Allowance for credit losses	(1,019)	(939)	(1,757)	(1,822)	(1,482)
Residential Mortgage [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	101,755		92,669
Allowance for credit losses	(1,903)	(1,824)	(880)	(847)	(742)
Residential Construction [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	14,021		10,167
Allowance for credit losses	(332)	(487)	(178)	(130)	(74)
Consumer [Member]
Loan Portfolio by Loan Class [Abstract]
Loans	14,826		15,287
Allowance for credit losses	$ (362)	$ (367)	$ (173)	$ (176)	$ (167)

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	$ 15,579		$ 14,792	$ 13,952
Total beginning balance	16,779		15,492
Charge-offs	(100)	$ (30)	(2,849)	(336)
Total charge offs	(100)
Recoveries	20	226	156	255
Total recoveries			156
Provision (recovery)	650	300	3,250	900
Total provision (recovery)	500	300	3,100	900
Net (charge-offs)/recoveries		196	(2,693)	(81)
Ending balance	16,149	14,771	16,149	14,771
Total ending balance	17,199		17,199
Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	800		800
Total ending balance	1,300		1,300
Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance		14,275
Reserve for Unfunded Commitments [Member]
Activity in ACL on loans by loan class [Roll Forward]
Total beginning balance	1,200		700
Charge-offs			0
Total charge offs	0
Recoveries	0
Total recoveries			0
Total provision (recovery)	(150)		(150)
Total ending balance	1,050		1,050
Reserve for Unfunded Commitments [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Total ending balance	500		500
Commercial [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	1,775		1,463	1,604
Charge-offs	(91)	0	(269)	(297)
Recoveries	20	225	155	249
Provision (recovery)	32	(385)	(236)	(66)
Net (charge-offs)/recoveries		225	(114)	(48)
Ending balance	1,736	1,490	1,736	1,490
Commercial [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance		1,650
Commercial Real Estate [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	10,050		10,073	8,808
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (recovery)	526	566	967	1,329
Net (charge-offs)/recoveries		0	0	0
Ending balance	10,576	10,137	10,576	10,137
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		623
Ending balance	(464)		(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		9,571
Agriculture [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	939		1,757	1,482
Charge-offs	0	0	(2,567)	0
Recoveries	0	0	0	0
Provision (recovery)	80	128	2,500	340
Net (charge-offs)/recoveries		0	(2,567)	0
Ending balance	1,019	1,822	1,019	1,822
Agriculture [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	(671)		(671)
Agriculture [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance		1,694
Residential Mortgage [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	1,824		880	742
Charge-offs	0	0	(3)	0
Recoveries	0	0	0	0
Provision (recovery)	79	45	192	105
Net (charge-offs)/recoveries		0	(3)	0
Ending balance	1,903	847	1,903	847
Residential Mortgage [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	834		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		802
Residential Construction [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	487		178	74
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (recovery)	(155)	(21)	(46)	56
Net (charge-offs)/recoveries		0	0	0
Ending balance	332	130	332	130
Residential Construction [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	200		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		151
Consumer [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	367		173	167
Charge-offs	(9)	(30)	(10)	(39)
Recoveries	0	1	1	6
Provision (recovery)	4	26	(3)	42
Net (charge-offs)/recoveries		(29)	(9)	(33)
Ending balance	362	176	362	176
Consumer [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	201		201
Consumer [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance		179
Unallocated [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance	137		268	1,075
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (recovery)	84	(59)	(124)	(906)
Net (charge-offs)/recoveries		0		0
Ending balance	221	169	221	$ 169
Unallocated [Member] | Impact of Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Ending balance	$ 77		$ 77
Unallocated [Member] | Post Adopting ASC 326 [Member] | ASU 2016-13 [Member]
Activity in ACL on loans by loan class [Roll Forward]
Beginning balance		$ 228

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES, Collateral-Dependent Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	$ 6,119	$ 8,176
Secured by 1-4 Family Residential Properties-1st Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	400	123
Secured by 1-4 Family Residential Properties-Junior Lien [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	372	0
Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	327	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	1,008	1,148
Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	4,012	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	5,020	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	1,008	1,148
Agriculture [Member] | Agriculture Production Loans [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	4,012	6,268
Residential Mortgage [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	400	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	400	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	699	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	372	0
Consumer [Member] | Secured by 1-4 Family Residential Properties-Revolving [Member]
Collateral Dependent Loans By Class [Abstract]
Collateral dependent loans, amortized cost	327	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	Sep. 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Non-accrual and Past Due Loans [Abstract]
Total Loans	$ 1,053,144		$ 1,053,144		$ 984,100
Nonaccrual Loans	6,119		6,119		8,176
Nonaccrual loans with no ACL	6,119		6,119		8,176
Interest income on nonaccrual loans	4	$ 19	1,289	$ 46
30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	6,018		6,018		41
60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	2,003		2,003		0
90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		403
Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	14,140		14,140		8,620
Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	1,039,004		1,039,004		975,480
Commercial [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	93,753		93,753		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	7		7		41
Commercial [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	47		47		0
Commercial [Member] | 90 Days or More Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		403
Commercial [Member] | Total Past Due & Nonaccrual [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	54		54		444
Commercial [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	93,699		93,699		106,327
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	718,847		718,847		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	1,910		1,910		0
Commercial Real Estate [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	1,956		1,956		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	3,866		3,866		0
Commercial Real Estate [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	714,981		714,981		645,166
Agriculture [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	109,942		109,942		114,040
Nonaccrual Loans	5,020		5,020		7,416
Nonaccrual loans with no ACL	5,020		5,020		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	5,020		5,020		7,416
Agriculture [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	104,922		104,922		106,624
Residential Mortgage [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	101,755		101,755		92,669
Nonaccrual Loans	400		400		123
Nonaccrual loans with no ACL	400		400		123
Residential Mortgage [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	636		636		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	1,036		1,036		123
Residential Mortgage [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	100,719		100,719		92,546
Residential Construction [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	14,021		14,021		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	3,420		3,420		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	3,420		3,420		0
Residential Construction [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	10,601		10,601		10,167
Consumer [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	14,826		14,826		15,287
Nonaccrual Loans	699		699		637
Nonaccrual loans with no ACL	699		699		637
Consumer [Member] | 30-59 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	45		45		0
Consumer [Member] | 60-89 Days Past Due & Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	0		0		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	744		744		637
Consumer [Member] | Current & Accruing Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Total Loans	$ 14,082		$ 14,082		$ 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	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 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	24.39%	28.14%
Commitments to lend additional funds to borrowers whose loans were modified	$ 580	$ 580
Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	3,420	7,425
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	$ 442
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	$ 44
Commercial Real Estate [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0%	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	$ 0	$ 398
Agriculture [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0%	3.64%
Agriculture [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 0	$ 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	24.39%	24.39%
Residential Construction [Member] | Term Extension [Member]
Financing Receivable Modification [Abstract]
Amortized cost basis of loans that were experiencing both financial difficulty and modification	$ 3,420	$ 3,420
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	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty [Abstract]
Weighted-Average Interest Rate Reduction	0%	0.27%
Weighted-Average Term Extension	1 month	4 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%	0.25%
Weighted-Average Term Extension	0 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	0 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	1 month	1 month
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		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2023 USD ($) Loan	Sep. 30, 2022 USD ($) 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	$ (100)	$ (30)	$ (2,849)	$ (336)
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	(9)	$ (30)	$ (10)	$ (39)
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
Loans modified within previous twelve months and for which there was a payment default			$ 4,005
Charge-offs	$ 0	$ 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Risk Ratings by Loan Class [Abstract]
2023	$ 131,515		$ 131,515
2022	243,279		243,279
2021	281,144		281,144
2020	84,454		84,454
2019	81,142		81,142
Prior	159,265		159,265
Revolving loans amortized cost basis	72,345		72,345
Total	1,053,144		1,053,144		$ 984,100
Revolving loans converted to term loans	80		80
Year-to-date Charge-offs [Abstract]
2023			(1,835)
2022			(146)
2021			(36)
2020			0
2019			(87)
Prior			(3)
Revolving loans amortized cost basis			(742)
Total	(100)	$ (30)	(2,849)	$ (336)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			87
Prior			69
Revolving loans amortized cost basis			0
Total	20	226	156	255
Year-to-date Net Charge-offs [Abstract]
2023			(1,835)
2022			(146)
2021			(36)
2020			0
2019			0
Prior			66
Revolving loans amortized cost basis			(742)
Net (charge-offs)/recoveries		196	(2,693)	(81)
Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	131,073		131,073
2022	239,859		239,859
2021	274,057		274,057
2020	80,680		80,680
2019	71,247		71,247
Prior	155,488		155,488
Revolving loans amortized cost basis	67,160		67,160
Total	1,019,564		1,019,564		961,012
Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	2,219		2,219
2020	1,104		1,104
2019	3,224		3,224
Prior	2,355		2,355
Revolving loans amortized cost basis	945		945
Total	9,847		9,847		8,019
Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	442		442
2022	3,420		3,420
2021	4,868		4,868
2020	2,670		2,670
2019	6,671		6,671
Prior	1,422		1,422
Revolving loans amortized cost basis	4,240		4,240
Total	23,733		23,733		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	7,442		7,442
2022	18,546		18,546
2021	24,049		24,049
2020	6,640		6,640
2019	8,325		8,325
Prior	6,764		6,764
Revolving loans amortized cost basis	21,987		21,987
Total	93,753		93,753		106,771
Year-to-date Charge-offs [Abstract]
2023			0
2022			(146)
2021			(36)
2020			0
2019			(87)
Prior			0
Revolving loans amortized cost basis			0
Total	(91)	0	(269)	(297)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			87
Prior			68
Revolving loans amortized cost basis			0
Total	20	225	155	249
Year-to-date Net Charge-offs [Abstract]
2023			0
2022			(146)
2021			(36)
2020			0
2019			0
Prior			68
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries		225	(114)	(48)
Commercial [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	7,398		7,398
2022	18,546		18,546
2021	22,473		22,473
2020	5,829		5,829
2019	7,999		7,999
Prior	6,764		6,764
Revolving loans amortized cost basis	20,995		20,995
Total	90,004		90,004		106,643
Commercial [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	0		0
2020	258		258
2019	326		326
Prior	0		0
Revolving loans amortized cost basis	945		945
Total	1,529		1,529		0
Commercial [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	44		44
2022	0		0
2021	1,576		1,576
2020	553		553
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	47		47
Total	2,220		2,220		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	99,213		99,213
2022	171,601		171,601
2021	201,820		201,820
2020	53,721		53,721
2019	62,221		62,221
Prior	123,318		123,318
Revolving loans amortized cost basis	6,953		6,953
Total	718,847		718,847		645,166
Year-to-date Charge-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 Charge-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
Commercial Real Estate [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	98,815		98,815
2022	171,601		171,601
2021	197,873		197,873
2020	50,758		50,758
2019	52,652		52,652
Prior	121,005		121,005
Revolving loans amortized cost basis	6,953		6,953
Total	699,657		699,657		631,693
Commercial Real Estate [Member] | Special Mention [Member]
Risk Ratings by Loan Class [Abstract]
2023	0		0
2022	0		0
2021	2,219		2,219
2020	846		846
2019	2,898		2,898
Prior	1,291		1,291
Revolving loans amortized cost basis	0		0
Total	7,254		7,254		6,748
Commercial Real Estate [Member] | Substandard [Member]
Risk Ratings by Loan Class [Abstract]
2023	398		398
2022	0		0
2021	1,728		1,728
2020	2,117		2,117
2019	6,671		6,671
Prior	1,022		1,022
Revolving loans amortized cost basis	0		0
Total	11,936		11,936		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	6,836		6,836
2022	21,080		21,080
2021	25,379		25,379
2020	8,868		8,868
2019	4,459		4,459
Prior	12,776		12,776
Revolving loans amortized cost basis	30,544		30,544
Total	109,942		109,942		114,040
Year-to-date Charge-offs [Abstract]
2023			(1,825)
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			(742)
Total	0	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 Charge-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		0	(2,567)	0
Agriculture [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	6,836		6,836
2022	21,080		21,080
2021	23,854		23,854
2020	8,868		8,868
2019	4,459		4,459
Prior	11,712		11,712
Revolving loans amortized cost basis	27,050		27,050
Total	103,859		103,859		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	1,525		1,525
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	3,494		3,494
Total	5,019		5,019		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	14,581		14,581
2022	23,310		23,310
2021	26,764		26,764
2020	15,053		15,053
2019	6,073		6,073
Prior	15,974		15,974
Revolving loans amortized cost basis	0		0
Total	101,755		101,755		92,669
Year-to-date Charge-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 Charge-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	(3)	0
Residential Mortgage [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	14,581		14,581
2022	23,310		23,310
2021	26,725		26,725
2020	15,053		15,053
2019	6,073		6,073
Prior	15,574		15,574
Revolving loans amortized cost basis	0		0
Total	101,316		101,316		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	400		400
Revolving loans amortized cost basis	0		0
Total	439		439		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	3,086		3,086
2022	7,941		7,941
2021	2,994		2,994
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	14,021		14,021		10,167
Year-to-date Charge-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 Charge-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
Residential Construction [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	3,086		3,086
2022	4,521		4,521
2021	2,994		2,994
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	10,601		10,601		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	3,420		3,420
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving loans amortized cost basis	0		0
Total	3,420		3,420		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	357		357
2022	801		801
2021	138		138
2020	172		172
2019	64		64
Prior	433		433
Revolving loans amortized cost basis	12,861		12,861
Total	14,826		14,826		15,287
Year-to-date Charge-offs [Abstract]
2023			(10)
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving loans amortized cost basis			0
Total	(9)	(30)	(10)	(39)
Year-to-date Recoveries [Abstract]
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			1
Revolving loans amortized cost basis			0
Total	0	1	1	6
Year-to-date Net Charge-offs [Abstract]
2023			(10)
2022			0
2021			0
2020			0
2019			0
Prior			1
Revolving loans amortized cost basis			0
Net (charge-offs)/recoveries		$ (29)	(9)	$ (33)
Consumer [Member] | Pass [Member]
Risk Ratings by Loan Class [Abstract]
2023	357		357
2022	801		801
2021	138		138
2020	172		172
2019	64		64
Prior	433		433
Revolving loans amortized cost basis	12,162		12,162
Total	14,127		14,127		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	699		699
Total	699		699		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		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
MORTGAGE OPERATIONS [Abstract]
Real estate mortgage loans serviced	$ 186,373,000		$ 186,373,000		$ 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 6 days		7 years 2 months 12 days
Mortgage servicing rights [Roll Forward]
Beginning balance			$ 1,650,000
Additions			35,000
Reductions			(182,000)
Ending balance	1,503,000		1,503,000		$ 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			35,000
Reductions			(182,000)
Ending balance	1,503,000		1,503,000
Fair value of mortgage servicing rights assets	2,031,000		2,031,000		$ 2,101,000
Contractually specified servicing fees	$ 117,000	$ 126,000	$ 357,000	$ 385,000

FAIR VALUE MEASUREMENTS, Assets

FAIR VALUE MEASUREMENTS, Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 567,409	$ 618,092
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	567,409	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	96,978	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	470,431	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	96,978	113,815
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	96,978	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	96,978	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	114,964	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	114,964	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	114,964	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	44,484	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	44,484	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	44,484	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	91,300	95,350
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	91,300	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	91,300	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	219,683	236,690
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	219,683	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	219,683	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]	Sep. 30, 2023
Key methods and assumptions used in measuring fair value [Abstract]
Impaired loans, measurement input	0.08
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	Sep. 30, 2023	Dec. 31, 2022
Loans receivable [Abstract]
Mortgage servicing rights	$ 2,031	$ 2,101
Carrying Amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	197,105	187,417
Carrying Amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	20,696	20,948
Loans receivable [Abstract]
Loans held-for-sale	369	0
Interest receivable	7,185	5,745
Financial liabilities [Abstract]
Interest payable	1,211	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	1,037,066	970,138
Mortgage servicing rights	1,503	1,650
Financial liabilities [Abstract]
Time deposits	125,098	44,355
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	197,105	187,417
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	20,311	20,560
Loans receivable [Abstract]
Loans held-for-sale	371	0
Interest receivable	7,185	5,745
Financial liabilities [Abstract]
Interest payable	1,211	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	933,513	929,163
Mortgage servicing rights	2,031	2,101
Financial liabilities [Abstract]
Time deposits	$ 124,671	$ 43,987

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	$ 199,726	$ 207,540
Undisbursed Loan Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	197,710	205,610
Standby Letters of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Off-balance sheet credit risks	1,251	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	1,251	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	765	0
Reserve for Off-balance Sheet Activity [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Reserve for unfunded commitments	1,050	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	$ 310	$ 0

STOCK PLANS, Dividends (Details

STOCK PLANS, Dividends (Details)		9 Months Ended
	Jan. 26, 2023	Sep. 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	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Stock options, number of shares [Roll Forward]
Balance, beginning of period (in shares)	663,678	684,837
Granted (in shares)	0	0
Expired (in shares)	0	0
Cancelled / Forfeited (in shares)	0	0
Exercised (in shares)	(51,485)	(72,644)
Balance, end of period (in shares)	612,193	612,193
Exercisable (vested) at end of period (in shares)	526,829	526,829
Stock options, weighted average exercise price [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 8.56	$ 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)	5.44	4.97
Balance, end of period (in dollars per share)	8.82	8.82
Exercisable (vested) at end of period (in dollars per share)	$ 8.67	$ 8.67
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value	$ 523,161	$ 523,161
Exercisable (vested), aggregate intrinsic value	$ 523,161	$ 523,161
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		$ 305,000	$ 125,000
Fair value of awards vested		123,000	$ 142,000
Unrecognized compensation related to non-vested stock options	$ 87,000	$ 87,000
Unrecognized compensation cost, period for recognition		1 year 10 months 24 days
Recognized compensation cost	$ 22,000	$ 71,000

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	275,473	248,418
Granted (in shares) | shares	1,000	78,351
Cancelled / Forfeited (in shares) | shares	(11,209)	(11,209)
Exercised / Released / Vested (in shares) | shares	(2,428)	(52,724)
Outstanding at end of period (in shares) | shares	262,836	262,836
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.17	$ 9.34
Granted (in dollars per share) | $ / shares	9.55	8.51
Cancelled/Forfeited (in dollars per share) | $ / shares	9.46	9.46
Exercised / Released / Vested (in dollars per share) | $ / shares	9.31	8.98
Outstanding at end of period (in dollars per share) | $ / shares	$ 9.56	$ 9.56
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 2,494,314	$ 2,494,314
Outstanding, weighted average remaining contractual term	2 years 9 months 3 days	2 years 9 months 3 days
Unrecognized compensation related to restricted stock | $	$ 1,335,000	$ 1,335,000
Unrecognized compensation cost, period for recognition		2 years 9 months 3 days
Recognized compensation cost | $	$ 106,000	$ 421,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details) - USD ($)		3 Months Ended	9 Months Ended
	Jan. 26, 2023	Sep. 30, 2023	Sep. 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		$ 7,000	$ 7,000
Weighted average period to recognize the unrecognized compensation			3 months
Recognized compensation cost		$ 8,000	$ 24,000
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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	$ 136,730	$ 135,785	$ 125,040	$ 127,134	$ 134,130	$ 150,911	$ 125,040	$ 150,911
Current period other comprehensive income (loss)	(4,999)	(3,690)	6,013	(18,492)	(10,641)	(19,963)	(2,676)	(49,096)
Balance	136,486	136,730	135,785	113,360	127,134	134,130	136,486	113,360
Accumulated Other Comprehensive Income (Loss) [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	(44,205)	(40,515)	(46,528)	(34,801)	(24,160)	(4,197)	(46,528)	(4,197)
Current period other comprehensive income (loss)	(4,999)	(3,690)	6,013	(18,492)	(10,641)	(19,963)	(2,676)	(49,096)
Balance	(49,204)	(44,205)	(40,515)	(53,293)	(34,801)	(24,160)	(49,204)	(53,293)
Unrealized Gains (Losses) on Securities [Member]
Activity in accumulated other comprehensive loss [Roll Forward]
Balance	(43,950)		(46,273)	(33,368)		(2,764)	(46,273)	(2,764)
Current period other comprehensive income (loss)	(4,999)			(18,492)			(2,676)	(49,096)
Balance	(48,949)	(43,950)		(51,860)	(33,368)		(48,949)	(51,860)
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						9 Months Ended
	Jan. 26, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 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		$ 4,619	$ 4,564	$ 5,489	$ 4,568	$ 3,546	$ 3,041	$ 14,672	$ 11,155
Weighted average common shares outstanding (in shares)		14,465,191			14,404,438			14,455,772	14,394,959
Basic EPS (in dollars per share)		$ 0.32			$ 0.32			$ 1.01	$ 0.77
Diluted earnings per share [Abstract]
Net income		$ 4,619	$ 4,564	$ 5,489	$ 4,568	$ 3,546	$ 3,041	$ 14,672	$ 11,155
Weighted average common shares outstanding (in shares)		14,465,191			14,404,438			14,455,772	14,394,959
Effect of dilutive shares (in shares)		160,012			150,672			129,448	162,748
Adjusted weighted average common shares outstanding (in shares)		14,625,203			14,555,110			14,585,220	14,557,707
Diluted EPS (in dollars per share)		$ 0.32			$ 0.31			$ 1.01	$ 0.77
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		338,346			513,058			454,174	413,335
Restricted Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from EPS computation (in shares)		0			74,522			44,982	61,966

LEASES (Details)

LEASES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Location	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Operating Lease, Description [Abstract]
Number of branch and administrative locations leased | Location			11
Lease right-of-use assets	$ 4,345,000		$ 4,345,000		$ 4,905,000
Lease liabilities	4,854,000		4,854,000		5,422,000
Lease expense	315,000	$ 286,000	916,000	$ 874,000
Maturities of Remaining Lease Liabilities [Abstract]
2023 (remaining 3 months)	297,000		297,000
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	5,192,000		5,192,000
Less: interest	(338,000)		(338,000)
Present value of lease liabilities	4,854,000		4,854,000		$ 5,422,000
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	296,000	345,000	910,000	948,000
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 162,000	$ 245,000	$ 869,000
Weighted Average Operating Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term - operating leases, in years	5 years 6 months 18 days		5 years 6 months 18 days		6 years 1 month 20 days
Weighted-average discount rate - operating leases	2.43%		2.43%		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		9 Months Ended
	Jan. 20, 2023 USD ($) Branches	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares	Sep. 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		15,874,000	14,622,000	49,875,000	40,073,000
Provision for loan losses		500,000	300,000	3,100,000	900,000
Non-interest income		1,776,000	2,244,000	6,194,000	6,002,000
Non-interest expense		10,883,000	10,568,000	32,705,000	30,315,000
Income before taxes		6,267,000	5,998,000	20,264,000	14,860,000
Provision for income taxes		1,648,000	1,487,000	5,515,000	3,882,000
Net income		$ 4,619,000	$ 4,511,000	$ 14,749,000	$ 10,978,000
Basic earnings per share (in dollars per share) | $ / shares		$ 0.32	$ 0.31	$ 1.02	$ 0.76
Diluted earnings per share (in dollars per share) | $ / shares		$ 0.32	$ 0.31	$ 1.01	$ 0.75
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	$ 154,000	$ 204,000	$ 154,000
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