New Peoples Bankshares (NWPP) 10-Q 20 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 20, 2020
Cover [Abstract]
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	0001163389
Document Type	10-Q
Entity File Number	000-33411
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	VA
Entity Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,922,086
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 7,271	$ 7,290	$ 21,483	$ 21,361
Federal funds sold		1	1	5
Interest-earning deposits with banks	16	170	191	643
Investments	245	334	814	1,066
Dividends on equity securities (restricted)	34	38	108	118
Total Interest and Dividend Income	7,566	7,833	22,597	23,193
INTEREST EXPENSE
Deposits	1,024	1,275	3,417	3,795
Borrowed funds	128	211	484	675
Total Interest Expense	1,152	1,486	3,901	4,470
NET INTEREST INCOME	6,414	6,347	18,696	18,723
PROVISION FOR LOAN LOSSES	450	1,020	2,000	1,290
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,964	5,327	16,696	17,433
NONINTEREST INCOME
Service charges and fees	859	924	2,238	2,597
Card processing and interchange	892	800	2,480	2,276
Insurance and investment fees	206	158	447	481
Net gain on sales of available-for-sale securities			4
Other noninterest income	159	973	744	1,247
Total Noninterest Income	2,116	2,855	5,913	6,601
NONINTEREST EXPENSES
Salaries and employee benefits	2,981	3,544	10,300	11,020
Occupancy and equipment expense	1,132	1,128	3,395	3,407
Data processing and telecommunications	604	615	1,881	1,913
Other operating expenses	1,565	1,792	5,149	5,650
Total Noninterest Expenses	6,282	7,079	20,725	21,990
INCOME BEFORE INCOME TAXES	1,798	1,103	1,884	2,044
INCOME TAX EXPENSE	374	227	385	417
NET INCOME	$ 1,424	$ 876	$ 1,499	$ 1,627
Income Per Share
Basic and diluted (in dollars per share)	$ 0.06	$ 0.04	$ 0.06	$ 0.07
Average Weighted Shares of Common Stock
Basic and diluted (in shares)	23,922,086	23,922,086	23,922,086	23,922,086

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 1,424	$ 876	$ 1,499	$ 1,627
Investment securities activity
Unrealized gains arising during the period	28	191	1,039	1,682
Reclassification adjustment for net gains included in net income			(4)
Other comprehensive gain on investment securities	28	191	1,035	1,682
Related tax expense	(6)	(40)	(217)	(353)
TOTAL OTHER COMPREHENSIVE INCOME	22	151	818	1,329
TOTAL COMPREHENSIVE INCOME	$ 1,446	$ 1,027	$ 2,317	$ 2,956

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 16,002	$ 13,998
Interest-bearing deposits with banks	61,636	35,897
Federal funds sold	270	252
Total Cash and Cash Equivalents	77,908	50,147
Investment securities available-for-sale	44,109	50,649
Loans held for sale	337	2
Loans receivable	585,122	562,544
Allowance for loan losses	(6,987)	(5,368)
Net loans	578,135	557,176
Bank premises and equipment, net	22,580	22,242
Other real estate owned	3,237	3,393
Accrued interest receivable	2,781	2,115
Deferred taxes, net	3,974	4,576
Right-of-use assets - operating leases	5,537	5,835
Other assets	10,527	10,238
Total Assets	749,125	706,373
Deposits:
Noninterest bearing	215,371	170,782
Interest-bearing	446,301	450,695
Total Deposits	661,672	621,477
Borrowed funds	21,496	21,496
Lease liabilities - operating leases	5,537	5,835
Accrued interest payable	491	694
Accrued expenses and other liabilities	3,010	2,269
Total Liabilities	692,206	651,771
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at September 30, 2020 and December 31, 2019	47,844	47,844
Additional paid-in-capital	14,570	14,570
Retained deficit	(6,370)	(7,869)
Accumulated other comprehensive income	875	57
Total Stockholders' Equity	56,919	54,602
Total Liabilities and Stockholders' Equity	$ 749,125	$ 706,373

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	23,922,086	23,922,086
Common stock, outstanding	23,922,086	23,922,086

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at beginning at Dec. 31, 2018	$ 47,844	$ 14,570	$ (9,928)	$ (1,236)	$ 51,250
Balance at beginning (in shares) at Dec. 31, 2018	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			406		406
Other comprehensive loss, net of tax				370	370
Balance at ending at Mar. 31, 2019	$ 47,844	14,570	(9,522)	(866)	52,026
Balance at ending (in shares) at Mar. 31, 2019	23,922
Balance at beginning at Dec. 31, 2018	$ 47,844	14,570	(9,928)	(1,236)	51,250
Balance at beginning (in shares) at Dec. 31, 2018	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					1,627
Other comprehensive loss, net of tax					1,329
Balance at ending at Sep. 30, 2019	$ 47,844	14,570	(8,301)	93	54,206
Balance at ending (in shares) at Sep. 30, 2019	23,922
Balance at beginning at Mar. 31, 2019	$ 47,844	14,570	(9,522)	(866)	52,026
Balance at beginning (in shares) at Mar. 31, 2019	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			345		345
Other comprehensive loss, net of tax				808	808
Balance at ending at Jun. 30, 2019	$ 47,844	14,570	(9,177)	(58)	53,179
Balance at ending (in shares) at Jun. 30, 2019	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			876		876
Other comprehensive loss, net of tax				151	151
Balance at ending at Sep. 30, 2019	$ 47,844	14,570	(8,301)	93	54,206
Balance at ending (in shares) at Sep. 30, 2019	23,922
Balance at beginning at Dec. 31, 2019	$ 47,844	14,570	(7,869)	57	$ 54,602
Balance at beginning (in shares) at Dec. 31, 2019	23,922				23,922,086
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			46		$ 46
Other comprehensive loss, net of tax				603	603
Balance at ending at Mar. 31, 2020	$ 47,844	14,570	(7,823)	660	55,251
Balance at ending (in shares) at Mar. 31, 2020	23,922
Balance at beginning at Dec. 31, 2019	$ 47,844	14,570	(7,869)	57	$ 54,602
Balance at beginning (in shares) at Dec. 31, 2019	23,922				23,922,086
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					$ 1,499
Other comprehensive loss, net of tax					818
Balance at ending at Sep. 30, 2020	$ 47,844	14,570	(6,370)	875	$ 56,919
Balance at ending (in shares) at Sep. 30, 2020	23,922				23,922,086
Balance at beginning at Mar. 31, 2020	$ 47,844	14,570	(7,823)	660	$ 55,251
Balance at beginning (in shares) at Mar. 31, 2020	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			29		29
Other comprehensive loss, net of tax				193	193
Balance at ending at Jun. 30, 2020	$ 47,844	14,570	(7,794)	853	55,473
Balance at ending (in shares) at Jun. 30, 2020	23,922
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			1,424		1,424
Other comprehensive loss, net of tax				22	22
Balance at ending at Sep. 30, 2020	$ 47,844	$ 14,570	$ (6,370)	$ 875	$ 56,919
Balance at ending (in shares) at Sep. 30, 2020	23,922				23,922,086

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,499	$ 1,627
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,634	1,757
Provision for loan losses	2,000	1,290
Income on bank owned life insurance	(61)	(54)
Net gain on sale of securities available-for-sale	(4)
Gain on sale of mortgage loans	(144)	(78)
Loss (gain) on sale or disposal of premises and equipment	19	(807)
Loss on sale of repossessed assets	2
(Gain) loss on sale of other real estate owned	(52)	55
Loans originated for sale	(10,307)	(4,216)
Proceeds from sales of loans originated for sale	10,116	8,082
Adjustment of carrying value of other real estate owned	132	214
Adjustment of carrying value of repossessed assets	33
Amortization/accretion of bond premiums/discounts	318	410
Deferred tax expense (benefit)	385	418
Net change in:
Accrued interest receivable	(666)	(243)
Other assets	(314)	(278)
Accrued interest payable	(203)	100
Accrued expenses and other liabilities	741	769
Net Cash Provided by Operating Activities	5,128	9,046
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(23,445)	(16,006)
Purchase of securities available-for-sale	(2,045)	(790)
Proceeds from sale of investment securities available-for-sale	1,025
Proceeds from repayments and maturities of securities available-for-sale	8,281	7,991
Net purchase of equity securities (restricted)	(22)	(14)
Payments for the purchase of premises and equipment	(1,992)	(1,429)
Proceeds from sale of premises and equipment	1	559
Proceeds from sales of repossessed assets	73
Proceeds from insurance claims on other real estate owned		19
Proceeds from sales of other real estate owned	562	1,155
Net Cash Used in Investing Activities	(17,562)	(8,515)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in short term borrowings		(5,630)
Net change in noninterest bearing deposits	44,589	11,673
Net change in interest bearing deposits	(4,394)	13,938
Net Cash Provided by Financing Activities	40,195	19,981
Net increase in cash and cash equivalents	27,761	20,512
Cash and Cash Equivalents, Beginning of the Period	50,147	28,173
Cash and Cash Equivalents, End of the Period	77,908	48,685
Supplemental Disclosure of Cash Paid During the Period for:
Interest	4,104	4,370
Taxes
Supplemental Disclosure of Non-cash Transactions:
Transfer of loans to Loans Held for Sale		4,359
Right-of-use asset established in exchange for new operating lease liability		1,232
Loan to finance sale of premises		752
Other real estate acquired in settlement of foreclosed loans	914	492
Loans made to finance sale of other real estate owned	428	647
Change in unrealized gains on securities available for sale	$ 1,035	$ 1,682

NATURE OF OPERATIONS

NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS Nature of Operations –

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2020 and December 31, 2019, and the results of operations for the three month and nine month periods ended September 30, 2020 and 2019. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc. (Hereinafter, collectively referred to as the Company, we, us or our). All significant intercompany balances and transactions have been eliminated. In accordance with Accounting Standards Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are not included in the consolidated financial statements. Certain reclassifications have been made to prior period financial statements to allow them to be presented on a comparable basis with the current period. Previously reported net income and stockholders’ equity were not affected by these reclassifications. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

INCOME PER SHARE

INCOME PER SHARE	9 Months Ended
	Sep. 30, 2020
Income Per Share
INCOME PER SHARE	NOTE 3 INCOME PER SHARE Basic income per share computations are based on the weighted average number of shares outstanding during each period. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the three-month and nine-month periods ended September 30, 2020 and 2019, there were no potential common shares. Basic and diluted net income per common share calculations follows: (Dollars in Thousands, Except For the three months For the nine months 2020 2019 2020 2019 Net income $ 1,424 $ 876 $ 1,499 $ 1,627 Weighted average shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Weighted average dilutive shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Basic and diluted income per share $ 0.06 $ 0.04 $ 0.06 $ 0.07

CAPITAL

CAPITAL	9 Months Ended
	Sep. 30, 2020
Banking Regulation, Total Capital [Abstract]
CAPITAL	NOTE 4 CAPITAL Capital Requirements and Ratios The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve’s Small Bank Holding Company Policy Statement issued in February 2015 and, therefore, is not obligated to report consolidated regulatory capital. The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and Common Equity Tier 1 capital to risk-weighted assets. As of September 30, 2020, the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2020 and December 31, 2019, respectively. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020: Total Capital to Risk Weighted Assets 74,191 15.73 % $ 37,725 8.0 % $ 47,156 10.0 % Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 28,294 6.0 % 37,725 8.0 % Tier 1 Capital to Average Assets 68,283 9.11 % 29,979 4.0 % 37,473 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 21,220 4.5 % 30,652 6.5 % December 31, 2019: Total Capital to Risk Weighted Assets 72,109 14.83 % $ 38,910 8.0 % $ 48,637 10.0 % Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 29,182 6.0 % 38,910 8.0 % Tier 1 Capital to Average Assets 66,741 9.43 % 28,313 4.0 % 35,391 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 21,887 4.5 % 31,614 6.5 % Accordingly, as of September 30, 2020 and December 31, 2019, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since such dates that management believes have changed the Bank’s category. The Bank is also subject to the rules implementing the Basel III capital framework and certain related provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The final rules require the Bank to comply with the following minimum capital ratios: (i) a Common Equity Tier 1 capital to risk-weighted assets ratio of at least 4.5%, plus a 2.5% capital conservation buffer (effectively resulting in a minimum Common Equity Tier 1 capital to risk-weighted assets ratio of 7.0%), (ii) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (iii) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%), and (iv) a leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The phase-in of the capital conservation buffer requirement began on January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a Common Equity Tier 1 capital to risk-weighted assets ratio above the minimum but below the conservation buffer face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. All ratios shown in the table above exceed the minimum requirements. The Bank’s capital conservation buffer as of September 30, 2020 was 7.73%.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2020
Investment securities activity
INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES The amortized cost and estimated fair value of available-for-sale (AFS) securities as of September 30, 2020 and December 31, 2019 is as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2020 U.S. Government Agencies $ 14,468 $ 375 $ (62 ) $ 14,781 Taxable municipals 4,363 204 — 4,567 Corporate bonds 5,396 189 (27 ) 5,558 Mortgage backed securities 18,775 436 (8 ) 19,203 Total Securities AFS $ 43,002 $ 1,204 $ (97 ) $ 44,109 December 31, 2019 U.S. Government Agencies $ 15,703 $ 57 $ (127 ) $ 15,633 Taxable municipals 4,389 54 (1 ) 4,442 Corporate bonds 5,408 115 — 5,523 Mortgage backed securities 25,077 111 (137 ) 25,051 Total Securities AFS $ 50,577 $ 337 $ (265 ) $ 50,649 The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized September 30, 2020 U.S. Government Agencies $ 1,503 $ (2 ) $ 4,162 $ (60 ) $ 5,665 $ (62 ) Taxable municipals — — — — — — Corporate bonds 1,223 (27 ) — — 1,223 (27 ) Mortgage backed securities 1,647 (5 ) 261 (3 ) 1,908 (8 ) Total Securities AFS $ 4,373 $ (34 ) $ 4,423 $ (63 ) $ 8,796 $ (97 ) December 31, 2019 U.S. Government Agencies $ 6,788 $ (46 ) $ 4,516 $ (81 ) $ 11,304 $ (127 ) Taxable municipals 1,049 (1 ) — — 1,049 (1 ) Mortgage backed securities 1,586 (4 ) 12,002 (133 ) 13,588 (137 ) Total Securities AFS $ 9,423 $ (51 ) $ 16,518 $ (214 ) $ 25,941 $ (265 ) At September 30, 2020, there were 39 securities in a loss position, of which 26 have been in a loss position for twelve months or more. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. Management does not intend to sell, and it is not likely that the Bank will be required to sell, any of the securities referenced in the table above before recovery of their amortized cost. Investment securities with a carrying value of $7.0 million and $6.9 million at September 30, 2020 and December 31, 2019, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. The following table summarizes sales of AFS debt securities for the nine months ended September 30, (Dollars are in thousands) 2020 2019 Proceeds $ 1,025 $ — Gains 7 — Losses (3 ) — Tax benefit (1 ) — The amortized cost and fair value of investment securities at September 30, 2020, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ — $ — — Due after one year through five years 5,080 5,263 2.53 % Due after five years through ten years 10,817 11,027 3.29 % Due after ten years 27,104 27,819 2.27 % Total $ 43,001 $ 44,109 2.35 % The Bank, as a member of the Federal Reserve Bank of Richmond (the Reserve Bank) and the Federal Home Loan Bank (the FHLB) of Atlanta, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.58 million and $2.56 million at September 30, 2020 and December 31, 2019, respectively.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
LOANS	NOTE 6 LOANS There were $337 thousand of loans held for sale at September 30, 2020 and $2 thousand at December 31, 2019, which represents mortgage loans originated for sale. These originations and sales are executed on a best efforts basis. Loans receivable outstanding as of September 30, 2020 and December 31, 2019 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 174,898 $ 170,436 Construction and land development 26,054 31,130 Residential 1-4 family 226,267 242,922 Multifamily 14,979 13,638 Farmland 19,111 20,790 Total real estate loans 461,309 478,916 Commercial 96,107 53,994 Agriculture 4,572 4,797 Consumer installment loans 21,313 23,127 All other loans 1,821 1,710 Total loans $ 585,122 $ 562,544 Included in commercial loans are 665 loans originated under the Paycheck Protection Program totaling $43,546,000 at September 30, 2020 and none at December 31, 2019. Loans receivable on nonaccrual status as of September 30, 2020 and December 31, 209 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 1,761 $ 1,601 Construction and land development 59 45 Residential 1-4 family 3,172 2,544 Farmland 205 531 Total real estate loans 5,197 4,721 Commercial 118 390 Consumer installment loans and other loans 28 45 Total loans receivable on nonaccrual status $ 5,343 $ 5,156 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2020 and September 30, 2019 was $418 thousand and $544 thousand, respectively. The following tables present information concerning the Company’s investment in loans considered impaired as of September 30, 2020 and December 31, 2019: As of September 30, 2020 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 984 $ 1,011 $ — Construction and land development 104 381 — Residential 1-4 family 2,254 2,407 — Multifamily — — — Farmland 408 577 — Commercial — — — Agriculture — — — Consumer installment loans 6 6 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 605 672 285 Construction and land development — — — Residential 1-4 family 229 249 49 Multifamily — — — Farmland 210 222 4 Commercial 33 41 8 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 4,833 $ 5,566 $ 346 As of December 31, 2019 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,416 $ 2,478 $ — Construction and land development 70 346 — Residential 1-4 family 1,263 1,460 — Multifamily — — — Farmland 778 970 — Commercial 128 178 — Agriculture — 1 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 363 379 70 Construction and land development — — — Residential 1-4 family 55 60 44 Multifamily — — — Farmland 216 228 9 Commercial 286 886 200 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 5,575 $ 6,986 $ 323 The following tables present information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 2,004 $ 1 $ 1,918 $ 76 Construction and land development 87 12 96 3 Residential 1-4 family 1,819 49 2,114 47 Multifamily — — 37 1 Farmland 590 51 1,235 29 Commercial 74 1 691 11 Agriculture — — — — Consumer installment loans 3 — 3 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 493 — 496 1 Construction and land development — — — — Residential 1-4 family 104 3 364 — Multifamily — — — — Farmland 213 7 223 6 Commercial 160 1 563 — Agriculture — — — — Consumer installment loans — — 3 — All other loans — — — — Total $ 5,547 $ 125 $ 7,743 $ 174 Three Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 1,673 $ — $ 1,978 $ 34 Construction and land development 107 8 84 3 Residential 1-4 family 2,334 36 1,365 8 Multifamily — — — — Farmland 419 41 788 16 Commercial 33 — 45 — Agriculture — — — — Consumer installment loans 7 — 6 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 553 — 372 — Construction and land development — — — — Residential 1-4 family 154 3 340 — Multifamily — — — — Farmland 211 5 111 — Commercial 34 1 1,036 1 Agriculture — — — — Consumer installment loans — — — — All other loans — — — — Total $ 5,525 $ 94 $ 6,125 $ 62 An age analysis of past due loans receivable as of September 30, 2020 and December 31, 2019 is below. At September 30, 2020 and December 31, 2019, no loans over 90 days past due were accruing. As of September 30, 2020 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial 681 $ — 61 742 174,156 $ 174,898 Construction and land development 25 — — 25 26,029 26,054 Residential 1-4 family 3,516 422 930 4,868 221,399 226,267 Multifamily — — — — 14,979 14,979 Farmland 75 — 103 178 18,933 19,111 Total real estate loans 4,297 422 1,094 5,813 455,496 461,309 Commercial 153 — 10 163 95,944 96,107 Agriculture 211 — 11 222 4,350 4,572 Consumer installment loans 142 18 3 163 21,150 21,313 All other loans — — — — 1,821 1,821 Total loans 4,803 $ 440 1,118 6,361 578,761 $ 585,122 As of December 31, 2019 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 502 $ 125 $ 262 $ 889 $ 169,547 $ 170,436 Construction and land development 50 18 18 86 31,044 31,130 Residential 1-4 family 3,700 1,096 710 5,506 237,416 242,922 Multifamily 262 — — 262 13,376 13,638 Farmland 111 47 152 310 20,480 20,790 Total real estate loans 4,625 1,286 1,142 7,053 471,863 478,916 Commercial 406 — 323 729 53,265 53,994 Agriculture 244 — 21 265 4,532 4,797 Consumer installment loans 98 24 23 145 22,982 23,127 All other loans — — — — 1,710 1,710 Total loans $ 5,373 $ 1,310 $ 1,509 $ 8,192 $ 554,352 $ 562,544 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified doubtful have all the weaknesses inherent in loans classified as substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Based on the most recent analysis performed, the risk categories of loans receivable as of September 30, 2020 and December 31, 2019 were as follows: As of September 30, 2020 (Dollars are in thousands) Pass Special Substandard Doubtful Total Real estate secured: Commercial $ 168,111 $ 5,026 $ 1,761 $ — $ 174,898 Construction and land development 25,752 243 59 — 26,054 Residential 1-4 family 221,385 1,742 3,140 — 226,267 Multifamily 14,744 235 — — 14,979 Farmland 17,626 1,280 205 — 19,111 Total real estate loans 447,618 8,526 5,165 — 461,309 Commercial 93,331 2,708 68 — 96,107 Agriculture 4,561 — 11 — 4,572 Consumer installment loans 21,289 7 17 — 21,313 All other loans 1,821 — — — 1,821 Total $ 568,620 $ 11,241 $ 5,261 $ — $ 585,122 As of December 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 165,570 $ 3,265 $ 1,601 $ — $ 170,436 Construction and land development 30,747 360 23 — 31,130 Residential 1-4 family 239,210 1,207 2,505 — 242,922 Multifamily 13,638 — — — 13,638 Farmland 18,779 1,480 531 — 20,790 Total real estate loans 467,944 6,312 4,660 — 478,916 Commercial 51,086 2,504 118 286 53,994 Agriculture 4,753 4 40 — 4,797 Consumer installment loans 23,087 12 28 — 23,127 All other loans 1,710 — — — 1,710 Total $ 548,580 $ 8,832 $ 4,846 $ 286 $ 562,544 Included in Commercial loans under the “Pass” classification are loans extended under the Paycheck Protection Program totaling $43,5 million at September 30, 2020 and $0 at December 31, 2019.

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
ALLOWANCE FOR LOAN LOSSES	NOTE 7 ALLOWANCE FOR LOAN LOSSES In determining the amount of our allowance for loan losses, we evaluate the risk characteristics and credit quality of our loan portfolio, and assess current economic conditions, diversification of the portfolio, collateral adequacy, past loss experience and the level of nonperforming loans. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. As a result of the COVID-19 pandemic, and the resulting economic impact, the company provided forbearance, largely in the form of payment deferrals, on $117.4 million in loans to borrowers during the first nine months of 2020. Factors have been incorporated into the allowance determination to consider the effects of credit deterioration due to the economic impact resulting from the pandemic, such as increased unemployment and decreased gross domestic production. The following table presents activity in the allowance for loan losses for the nine- and three-month periods ending September 30, 2020 and 2019, respectively. Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of September 30, 2020 and December 31, 2019, respectively. Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2020 Beginning balance $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Charge-offs (65) - (66) - (42) (326) (15) (59) - (573) Recoveries 56 - 31 - 33 34 1 37 - 192 Provision 874 32 361 44 20 627 31 13 (2) 2,000 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Three months ended September 30, 2020 Beginning balance $ 2,054 $ 169 $ 2,039 $ 145 $ 121 $ 1,817 $ 49 $ 181 $ - $ 6,575 Charge-offs (43) - (66) - - - - (15) - (124) Recoveries 54 - 14 - - 3 - 15 - 86 Provision 48 21 75 3 (1) 304 (5) 5 - 450 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Allowance for loan losses at September 30, 2020 Individually evaluated for impairment $ 285 $ - $ 49 $ - $ 4 $ 8 $ - $ - $ - $ 346 Collectively evaluated for impairment 1,828 190 2,013 148 116 2,116 44 186 - 6,641 $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Loans at September 30, 2020 Individually evaluated for impairment $ 1,589 $ 104 $ 2,483 $ - $ 618 $ 33 $ - $ 6 $ - $ 4,833 Collectively evaluated for impairment 173,309 25,950 223,784 14,979 18,493 96,074 4,572 23,128 - 580,289 $ 174,898 $ 26,054 $ 226,267 $ 14,979 $ 19,111 $ 96,107 $ 4,572 $ 23,134 $ - $ 585,122 Allowance for loan losses at December 31, 2019 Individually evaluated for impairment $ 70 $ - $ 44 $ - $ 9 $ 200 $ - $ - $ - $ 323 Collectively evaluated for impairment 1,178 158 1,692 104 100 1,589 27 195 2 5,045 $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Loans at December 31, 2019 Individually evaluated for impairment $ 2,779 $ 70 $ 1,318 $ - $ 994 $ 414 $ - $ - $ - $ 5,575 Collectively evaluated for impairment 167,657 31,060 241,604 13,638 19,796 53,580 4,797 24,837 - 556,969 $ 170,436 $ 31,130 $ 242,922 $ 13,638 $ 20,790 $ 53,994 $ 4,797 $ 24,837 $ - $ 562,544 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2019 Beginning balance $ 1,386 $ 202 $ 2,437 $ 89 $ 287 $ 448 $ 37 $ 175 $ 275 $ 5,336 Charge-offs - - (171) - (33) (1,563) (9) (73) - (1,849) Recoveries 16 34 168 30 8 59 1 57 - 373 Provision (143) (70) (566) (17) (135) 2,480 (5) 18 (272) 1,290 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 Three months ended September 30, 2019 Beginning balance $ 1,225 $ 146 $ 1,967 $ 87 $ 118 $ 1,383 $ 35 $ 162 $ 65 $ 5,188 Charge-offs - - (42) - - (1,026) (9) (30) - (1,107) Recoveries 14 - 11 - - 14 - 10 - 49 Provision 20 20 (68) 15 9 1,053 (2) 35 (62) 1,020 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 During the second quarter of 2019, $4.4 million of non-performing or under-performing real estate loans were sold resulting in $57 thousand of charge-offs and $113 thousand of recoveries. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

TROUBLED DEBT RESTRUCTURINGS

TROUBLED DEBT RESTRUCTURINGS	9 Months Ended
	Sep. 30, 2020
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS There were $4.5 million in loans that were classified as troubled debt restructurings at September 30, 2020 and $4.3 million at December 31, 2019. All loans considered to be troubled debt restructurings are individually evaluated for impairment as part of the allowance for loan losses calculation. The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2020 and 2019. For the nine months ended For the nine months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial 3 $ 190 $ 190 — $ — $ — Construction and land — — — — — — Residential 1-4 family 27 1,236 1,236 — — — Multifamily — — — — — — Farmland — — — 1 281 281 Total real estate loans 30 1,426 1,426 1 281 281 Commercial — — — Agriculture — — — — — — Consumer installment loans 2 7 7 — — — All other loans — — — — — — Total 32 $ 1,433 $ 1,433 1 $ 281 $ 281 For the three months ended For the three months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family 1 32 32 — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans 1 32 32 — — — Commercial — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 32 $ 32 — $ — $ — During the three months ended September 30, 2020, one loan with a balance of $32 thousand, modified due to bankruptcy, was considered to be a troubled debt restructuring. During the first nine months of 2020, 32 modified loans totaling $1.4 million were considered to be troubled debt restructurings. During the three months ended September 30, 2019, no modified loans were considered to be troubled debt restructurings. During the first nine months of 2019, one loan was modified for which the modification was considered to be a troubled debt restructure. This loan is secured by farmland and the modification is related to a court-ordered payment plan. During the three months ended September 30, 2020, no loans previously modified as troubled debt restructurings defaulted. During the nine months ended September 30, 2020, one loan previously modified as a troubled debt restructuring, with a balance of $31 thousand, defaulted. One loan previously modified as a troubled debt restructuring, with a balance of $663 thousand, which defaulted during the first three months of 2020, has been paid off. No loans modified as troubled debt restructurings defaulted during the three or nine months ended September 30, 2019. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determining the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further write down the carrying value of the loan.

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
OTHER REAL ESTATE OWNED	NOTE 9 OTHER REAL ESTATE OWNED The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2020 and the year ended December 31, 2019: (Dollars are in thousands) September 30, December 31, 2019 Balance, beginning of period $ 3,393 $ 5,937 Additions 914 811 Transfers from premises and equipment — 683 Proceeds from sales (562 ) (1,322 ) Proceeds from insurance claims — (19 ) Loans made to finance sales (428 ) (2,360 ) Adjustment of carrying value (132 ) (214 ) Gains (losses) from sales 52 (123 ) Balance, end of period $ 3,237 $ 3,393

FAIR VALUES

FAIR VALUES	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUES	NOTE 10 FAIR VALUES The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair Value Measurements and Disclosures also establish fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Significant unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available for Sale Loans - Foreclosed Assets – Assets and liabilities measured at fair value were as follows as of September 30, 2020 (for purpose of this table the impaired loans are shown net of the related allowance): September 30, 2020 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 14,781 $ — Taxable municipals — 4,567 — Corporate bonds — 5,558 — Mortgage backed securities — 19,203 — (On a non-recurring basis) — — 3,237 Impaired loans — — 4,487 Total $ — $ 44,109 $ 7,724 Assets and liabilities measured at fair value are as follows as of December 31, 2019 (for purpose of this table the impaired loans are shown net of the related allowance): December 31, 2019 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 15,633 $ — Taxable municipals — 4,442 — Corporate bonds — 5,523 — Mortgage backed securities — 25,051 — (On a non-recurring basis) — — 3,393 Impaired loans 5,252 Total $ — $ 50,649 $ 8,645 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2020 Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 4,487 $ 5,252 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 3,237 $ 3,393 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value, is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2020 Financial Instruments – Assets Net Loans $ 578,135 $ 575,103 $ — $ 570,270 $ 4,487 Financial Instruments – Liabilities Time Deposits 249,733 252,846 — 252,846 — FHLB Advances 5,000 4,971 — 4,971 — December 31, 2019 Financial Instruments – Assets Net Loans $ 557,176 $ 550,495 $ — $ 545,243 $ 5,252 Financial Instruments – Liabilities Time Deposits 257,406 259,325 — 259,325 — FHLB Advances 5,000 5,054 — 5,054 — Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature, involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. The carrying values of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value and are excluded from the table above. In accordance with our adoption of Accounting Standards Update (ASU) 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at September 30, 2020 and December 31, 2019, represent an approximation of exit price; however, an actual exit price may differ.

LEASING ACTIVITIES

LEASING ACTIVITIES	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
LEASING ACTIVITIES	NOTE 11 LEASING ACTIVITIES The Company adopted ASU 2016-02 (Topic 842) effective May 31, 2017, as the Bank entered into sale leaseback transactions for four branch office sites. In September 2019, the Bank entered into a sale leaseback transaction, with a non-affiliated third party, for its branch office located in Lebanon, Virginia for a total purchase price of $1.34 million. Net proceeds, after sales expenses of $42 thousand totaled $1.30 million and a gain of $803 thousand was recorded. The Bank provided financing to the purchaser, in the amount of $752 thousand, for a term of 5 years. In connection with this sale, the Bank entered into a lease agreement with the purchaser with an initial term of 15 years, with five 5-year renewal options. As of September 30, 2020, the Bank leases five branch offices and a loan production office. The lease agreements have maturity dates ranging from November 2020 to September 2034. It is assumed that there are currently no circumstances in which the leases would be terminated prior to expiration. The weighted average remaining life of the lease terms at September 30, 2020 was 12.13 years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate that corresponded to the lease term for each transaction. This methodology is expected to be used for any other subsequent lease agreements. The weighted average discount rate for the leases at September 30, 2020 was 3.16%. For the nine months ended September 30, 2020 and 2019, operating lease expenses were $429 thousand and $361 thousand, respectively. The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At September 30, 2020, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2020 $ 132 2021 511 2022 530 2023 544 2024 546 Thereafter 4,528 Total lease payments 6,791 Less imputed interest 1,254 Total $ 5,537

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 12 REVENUE FROM CONTRACTS WITH CUSTOMERS All our revenue from contracts with customers as defined in ASC 606 is recognized within Non-interest income. The following table presents Non-interest income by revenue stream for the three and nine months ended September 30, 2020 and 2019. For the three months ended For the nine months ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees $ 859 $ 924 $ 2,238 $ 2,597 Card Processing and interchange income 892 800 2,480 2,276 Gain on sale of securities available-for-sale (1) — — 4 — Insurance and investment fees 206 158 447 481 Other noninterest income 159 973 744 1,247 Total Noninterest Income $ 2,116 $ 2,855 $ 5,913 $ 6,601 (1) Not within the scope of ASU 2014-09

NONINTEREST EXPENSES

NONINTEREST EXPENSES	9 Months Ended
	Sep. 30, 2020
Noninterest Expenses
NONINTEREST EXPENSES	NOTE 13 NONINTEREST EXPENSES Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2020 2019 2020 2019 Advertising $ 42 $ 82 $ 166 $ 233 ATM network expense 357 488 1,113 1,389 Legal and professional fees 112 244 602 727 Consulting fees 82 77 443 296 Loan related expenses 88 194 275 484 Printing and supplies 38 39 105 116 FDIC insurance premiums 103 (3 ) 297 210 Other real estate owned expenses, net 59 99 255 525 Other operating expenses 684 572 1,893 1,670 Total other operating expenses $ 1,565 $ 1,792 $ 5,149 $ 5,650

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. No subsequent events have occurred since September 30, 2020.

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	9 Months Ended
	Sep. 30, 2020
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	NOTE 15 RECENT ACCOUNTING DEVELOPMENTS The following is a summary of recent authoritative announcements: In June 2016, per ASU No. 2016-13, ‘Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,’ the Financial Accounting Standards Board (the FASB) issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. Subsequently, per ASU No. 2019-10, implementation for the Company is delayed until reporting periods beginning after December 15, 2022. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In May 2019, the FASB issued targeted transition relief for entities, which irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the amendments to the transition guidance for ASU 2016-13 will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Subsequently, per ASU No. 2019-10, implementation for the Company is delayed until reporting periods beginning after December 15, 2021. The Company is currently in the process of evaluating the impact of adoption of this guidance on its financial statements. In November, 2019, the FASB released ASU 2019-10, ‘Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),’ in which the FASB shared a new philosophy to extend and simplify how effective dates for certain major Updates would be staggered between larger public companies (bucket one) and all other entities (bucket two). A major Update would first be effective for bucket-one entities. For bucket-two entities, including the Company, it is anticipated that the FASB will consider requiring an effective date staggered at least two years after bucket one for major Updates. Generally, it is expected that early application would continue to be allowed for all entities. The Company is considered a bucket-two entity due to its eligibility to be a smaller reporting company, per the Securities and Exchange Commission (the SEC). This Update applies to ASU 2016-13, as discussed above, ASU 2017-12, which does not apply to the Company, and ASU 2016-02, which the Company has already early-adopted. In December, 2019, the FASB released ASU 2019-12, ‘Income Taxes (Topic 740),’ which simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, improve consistent application, and simplify GAAP for other areas of Topic 740. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect these amendments to have a material effect on its financial statements. In January, 2020, the FASB released ASU 2020-01, ‘Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815),’ which clarify certain interactions between the guidance to account for certain equity securities under Topic 321, 323 and 815, and improve current GAAP by reducing diversity in practice and increasing comparability of accounting. The amendments in this Update are effective for the Company for fiscal years beginning after December 31, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB released ASU 2020-03, ‘Codification Improvements to Financial Instruments,’ as part of its ongoing project for improving the Codification or correcting its unintended application. This particular Update is being issued to increase stakeholder awareness of these amendments. These amendments affect Fair Value Option Disclosures, Applicability of Portfolio Exception in Topic 820 to Nonfinancial Items, Disclosures for Depository and Lending Institutions, Cross-Reference to Line-of-Credit or Revolving-Debt Arrangements Guidance in Subtopic 470-50, Cross-Reference to Net Asset Value Practical Expedient in Subtopic 820-10, Interaction of Topic 842 and Topic 326, and Interaction of Topic 326 and Subtopic 860-20. The amendments in this update are effective immediately. The Company does not expect these amendments to have a material effect on its financial statements. In March, 2020, the FASB released ASU 2020-04, ‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting,’ which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in the Update are effective for the Company as of March 12, 2020 through December 31, 2022. The Company is currently in the process of evaluating the impact of adoption of this guidance on its financial statements. In August 2020, the FASB released ASU 2020-06, ‘Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,’ which reduces the number of accounting models for convertible debt instruments and convertible preferred stock. The Board concluded that eliminating certain accounting models simplifies the accounting for convertible instruments, reduces complexity for preparers and practitioners, and improves the decision usefulness and relevance of the information provided to financial statement users. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In October, 2020, the FASB released ASU 2020-08, ‘Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs,’ which amends ASU 2017-08 and clarifies that an entity should reevaluate whether a callable debt security that has multiple call dates is within the scope of paragraph 310-20-35-33 for each reporting period. These amendments are part of the FASB’s ongoing project for improving the Codification or correcting its unintended application. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is not permitted. The Company does not expect this amendment to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2020 and December 31, 2019, and the results of operations for the three month and nine month periods ended September 30, 2020 and 2019. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc. (Hereinafter, collectively referred to as the Company, we, us or our). All significant intercompany balances and transactions have been eliminated. In accordance with Accounting Standards Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are not included in the consolidated financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

INCOME PER SHARE (Tables)

INCOME PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
Income Per Share
Schedule of basic and diluted net loss per common share calculations	Basic and diluted net income per common share calculations follows: (Dollars in Thousands, Except For the three months For the nine months 2020 2019 2020 2019 Net income $ 1,424 $ 876 $ 1,499 $ 1,627 Weighted average shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Weighted average dilutive shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Basic and diluted income per share $ 0.06 $ 0.04 $ 0.06 $ 0.07

CAPITAL (Tables)

CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2020
Banking Regulation, Total Capital [Abstract]
Schedule of capital requirements	The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2020 and December 31, 2019, respectively. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020: Total Capital to Risk Weighted Assets 74,191 15.73 % $ 37,725 8.0 % $ 47,156 10.0 % Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 28,294 6.0 % 37,725 8.0 % Tier 1 Capital to Average Assets 68,283 9.11 % 29,979 4.0 % 37,473 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 21,220 4.5 % 30,652 6.5 % December 31, 2019: Total Capital to Risk Weighted Assets 72,109 14.83 % $ 38,910 8.0 % $ 48,637 10.0 % Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 29,182 6.0 % 38,910 8.0 % Tier 1 Capital to Average Assets 66,741 9.43 % 28,313 4.0 % 35,391 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 21,887 4.5 % 31,614 6.5 %

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2020
Investment securities activity
Schedule of securities amortized cost and estimated fair value	The amortized cost and estimated fair value of available-for-sale (AFS) securities as of September 30, 2020 and December 31, 2019 is as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2020 U.S. Government Agencies $ 14,468 $ 375 $ (62 ) $ 14,781 Taxable municipals 4,363 204 — 4,567 Corporate bonds 5,396 189 (27 ) 5,558 Mortgage backed securities 18,775 436 (8 ) 19,203 Total Securities AFS $ 43,002 $ 1,204 $ (97 ) $ 44,109 December 31, 2019 U.S. Government Agencies $ 15,703 $ 57 $ (127 ) $ 15,633 Taxable municipals 4,389 54 (1 ) 4,442 Corporate bonds 5,408 115 — 5,523 Mortgage backed securities 25,077 111 (137 ) 25,051 Total Securities AFS $ 50,577 $ 337 $ (265 ) $ 50,649
Schedule of fair value and gross unrealized losses on investment securities	The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized September 30, 2020 U.S. Government Agencies $ 1,503 $ (2 ) $ 4,162 $ (60 ) $ 5,665 $ (62 ) Taxable municipals — — — — — — Corporate bonds 1,223 (27 ) — — 1,223 (27 ) Mortgage backed securities 1,647 (5 ) 261 (3 ) 1,908 (8 ) Total Securities AFS $ 4,373 $ (34 ) $ 4,423 $ (63 ) $ 8,796 $ (97 ) December 31, 2019 U.S. Government Agencies $ 6,788 $ (46 ) $ 4,516 $ (81 ) $ 11,304 $ (127 ) Taxable municipals 1,049 (1 ) — — 1,049 (1 ) Mortgage backed securities 1,586 (4 ) 12,002 (133 ) 13,588 (137 ) Total Securities AFS $ 9,423 $ (51 ) $ 16,518 $ (214 ) $ 25,941 $ (265 )
Schedule of debt securities	The following table summarizes sales of AFS debt securities for the nine months ended September 30, (Dollars are in thousands) 2020 2019 Proceeds $ 1,025 $ — Gains 7 — Losses (3 ) — Tax benefit (1 ) —
Schedule of amortized cost and fair value of investment securities contractual maturity	Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ — $ — — Due after one year through five years 5,080 5,263 2.53 % Due after five years through ten years 10,817 11,027 3.29 % Due after ten years 27,105 27,819 2.27 % Total $ 43,002 $ 44,109 2.35 %

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Summary of loans receivable outstanding	Loans receivable outstanding as of September 30, 2020 and December 31, 2019 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 174,898 $ 170,436 Construction and land development 26,054 31,130 Residential 1-4 family 226,267 242,922 Multifamily 14,979 13,638 Farmland 19,111 20,790 Total real estate loans 461,309 478,916 Commercial 96,107 53,994 Agriculture 4,572 4,797 Consumer installment loans 21,313 23,127 All other loans 1,821 1,710 Total loans $ 585,122 $ 562,544
Summary of loans receivable on nonaccrual status	Loans receivable on nonaccrual status as of September 30, 2020 and December 31, 209 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 1,761 $ 1,601 Construction and land development 59 45 Residential 1-4 family 3,172 2,544 Farmland 205 531 Total real estate loans 5,197 4,721 Commercial 118 390 Consumer installment loans and other loans 28 45 Total loans receivable on nonaccrual status $ 5,343 $ 5,156
Summary of impaired loans	The following tables present information concerning the Company’s investment in loans considered impaired as of September 30, 2020 and December 31, 2019: As of September 30, 2020 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 984 $ 1,011 $ — Construction and land development 104 381 — Residential 1-4 family 2,254 2,407 — Multifamily — — — Farmland 408 577 — Commercial — — — Agriculture — — — Consumer installment loans 6 6 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 605 672 285 Construction and land development — — — Residential 1-4 family 229 249 49 Multifamily — — — Farmland 210 222 4 Commercial 33 41 8 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 4,833 $ 5,566 $ 346 As of December 31, 2019 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,416 $ 2,478 $ — Construction and land development 70 346 — Residential 1-4 family 1,263 1,460 — Multifamily — — — Farmland 778 970 — Commercial 128 178 — Agriculture — 1 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 363 379 70 Construction and land development — — — Residential 1-4 family 55 60 44 Multifamily — — — Farmland 216 228 9 Commercial 286 886 200 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 5,575 $ 6,986 $ 323 The following tables present information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 2,004 $ 1 $ 1,918 $ 76 Construction and land development 87 12 96 3 Residential 1-4 family 1,819 49 2,114 47 Multifamily — — 37 1 Farmland 590 51 1,235 29 Commercial 74 1 691 11 Agriculture — — — — Consumer installment loans 3 — 3 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 493 — 496 1 Construction and land development — — — — Residential 1-4 family 104 3 364 — Multifamily — — — — Farmland 213 7 223 6 Commercial 160 1 563 — Agriculture — — — — Consumer installment loans — — 3 — All other loans — — — — Total $ 5,547 $ 125 $ 7,743 $ 174 Three Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 1,673 $ — $ 1,978 $ 34 Construction and land development 107 8 84 3 Residential 1-4 family 2,334 36 1,365 8 Multifamily — — — — Farmland 419 41 788 16 Commercial 33 — 45 — Agriculture — — — — Consumer installment loans 7 — 6 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 553 — 372 — Construction and land development — — — — Residential 1-4 family 154 3 340 — Multifamily — — — — Farmland 211 5 111 — Commercial 34 1 1,036 1 Agriculture — — — — Consumer installment loans — — — — All other loans — — — — Total $ 5,525 $ 94 $ 6,125 $ 62
Summary of age analysis of past due loans receivable	An age analysis of past due loans receivable as of September 30, 2020 and December 31, 2019 is below. At September 30, 2020 and December 31, 2019, no loans over 90 days past due were accruing. As of September 30, 2020 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial 681 $ — 61 742 174,156 $ 174,898 Construction and land development 25 — — 25 26,029 26,054 Residential 1-4 family 3,516 422 930 4,868 221,399 226,267 Multifamily — — — — 14,979 14,979 Farmland 75 — 103 178 18,933 19,111 Total real estate loans 4,297 422 1,094 5,813 455,496 461,309 Commercial 153 — 10 163 95,944 96,107 Agriculture 211 — 11 222 4,350 4,572 Consumer installment loans 142 18 3 163 21,150 21,313 All other loans — — — — 1,821 1,821 Total loans 4,803 $ 440 1,118 6,361 578,761 $ 585,122 As of December 31, 2019 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 502 $ 125 $ 262 $ 889 $ 169,547 $ 170,436 Construction and land development 50 18 18 86 31,044 31,130 Residential 1-4 family 3,700 1,096 710 5,506 237,416 242,922 Multifamily 262 — — 262 13,376 13,638 Farmland 111 47 152 310 20,480 20,790 Total real estate loans 4,625 1,286 1,142 7,053 471,863 478,916 Commercial 406 — 323 729 53,265 53,994 Agriculture 244 — 21 265 4,532 4,797 Consumer installment loans 98 24 23 145 22,982 23,127 All other loans — — — — 1,710 1,710 Total loans $ 5,373 $ 1,310 $ 1,509 $ 8,192 $ 554,352 $ 562,544
Summary of risk category of loans receivable	Based on the most recent analysis performed, the risk categories of loans receivable as of September 30, 2020 and December 31, 2019 were as follows: As of September 30, 2020 (Dollars are in thousands) Pass Special Substandard Doubtful Total Real estate secured: Commercial $ 168,111 $ 5,026 $ 1,761 $ — $ 174,898 Construction and land development 25,752 243 59 — 26,054 Residential 1-4 family 221,385 1,742 3,140 — 226,267 Multifamily 14,744 235 — — 14,979 Farmland 17,626 1,280 205 — 19,111 Total real estate loans 447,618 8,526 5,165 — 461,309 Commercial 93,331 2,708 68 — 96,107 Agriculture 4,561 — 11 — 4,572 Consumer installment loans 21,289 7 17 — 21,313 All other loans 1,821 — — — 1,821 Total $ 568,620 $ 11,241 $ 5,261 $ — $ 585,122 As of December 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 165,570 $ 3,265 $ 1,601 $ — $ 170,436 Construction and land development 30,747 360 23 — 31,130 Residential 1-4 family 239,210 1,207 2,505 — 242,922 Multifamily 13,638 — — — 13,638 Farmland 18,779 1,480 531 — 20,790 Total real estate loans 467,944 6,312 4,660 — 478,916 Commercial 51,086 2,504 118 286 53,994 Agriculture 4,753 4 40 — 4,797 Consumer installment loans 23,087 12 28 — 23,127 All other loans 1,710 — — — 1,710 Total $ 548,580 $ 8,832 $ 4,846 $ 286 $ 562,544

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Summary of activity in the allowance for loan losses	Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of September 30, 2020 and December 31, 2019, respectively. Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2020 Beginning balance $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Charge-offs (65) - (66) - (42) (326) (15) (59) - (573) Recoveries 56 - 31 - 33 34 1 37 - 192 Provision 874 32 361 44 20 627 31 13 (2) 2,000 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Three months ended September 30, 2020 Beginning balance $ 2,054 $ 169 $ 2,039 $ 145 $ 121 $ 1,817 $ 49 $ 181 $ - $ 6,575 Charge-offs (43) - (66) - - - - (15) - (124) Recoveries 54 - 14 - - 3 - 15 - 86 Provision 48 21 75 3 (1) 304 (5) 5 - 450 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Allowance for loan losses at September 30, 2020 Individually evaluated for impairment $ 285 $ - $ 49 $ - $ 4 $ 8 $ - $ - $ - $ 346 Collectively evaluated for impairment 1,828 190 2,013 148 116 2,116 44 186 - 6,641 $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Loans at September 30, 2020 Individually evaluated for impairment $ 1,589 $ 104 $ 2,483 $ - $ 618 $ 33 $ - $ 6 $ - $ 4,833 Collectively evaluated for impairment 173,309 25,950 223,784 14,979 18,493 96,074 4,572 23,128 - 580,289 $ 174,898 $ 26,054 $ 226,267 $ 14,979 $ 19,111 $ 96,107 $ 4,572 $ 23,134 $ - $ 585,122 Allowance for loan losses at December 31, 2019 Individually evaluated for impairment $ 70 $ - $ 44 $ - $ 9 $ 200 $ - $ - $ - $ 323 Collectively evaluated for impairment 1,178 158 1,692 104 100 1,589 27 195 2 5,045 $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Loans at December 31, 2019 Individually evaluated for impairment $ 2,779 $ 70 $ 1,318 $ - $ 994 $ 414 $ - $ - $ - $ 5,575 Collectively evaluated for impairment 167,657 31,060 241,604 13,638 19,796 53,580 4,797 24,837 - 556,969 $ 170,436 $ 31,130 $ 242,922 $ 13,638 $ 20,790 $ 53,994 $ 4,797 $ 24,837 $ - $ 562,544 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2019 Beginning balance $ 1,386 $ 202 $ 2,437 $ 89 $ 287 $ 448 $ 37 $ 175 $ 275 $ 5,336 Charge-offs - - (171) - (33) (1,563) (9) (73) - (1,849) Recoveries 16 34 168 30 8 59 1 57 - 373 Provision (143) (70) (566) (17) (135) 2,480 (5) 18 (272) 1,290 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 Three months ended September 30, 2019 Beginning balance $ 1,225 $ 146 $ 1,967 $ 87 $ 118 $ 1,383 $ 35 $ 162 $ 65 $ 5,188 Charge-offs - - (42) - - (1,026) (9) (30) - (1,107) Recoveries 14 - 11 - - 14 - 10 - 49 Provision 20 20 (68) 15 9 1,053 (2) 35 (62) 1,020 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150

TROUBLED DEBT RESTRUCTURINGS (T

TROUBLED DEBT RESTRUCTURINGS (Tables)	9 Months Ended
	Sep. 30, 2020
Troubled Debt Restructurings Tables Abstract
Schedule of loans modified as troubled debt restructurings	The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2020 and 2019. For the nine months ended For the nine months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial 3 $ 190 $ 190 — $ — $ — Construction and land — — — — — — Residential 1-4 family 27 1,236 1,236 — — — Multifamily — — — — — — Farmland — — — 1 281 281 Total real estate loans 30 1,426 1,426 1 281 281 Commercial — — — Agriculture — — — — — — Consumer installment loans 2 7 7 — — — All other loans — — — — — — Total 32 $ 1,433 $ 1,433 1 $ 281 $ 281 For the three months ended For the three months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family 1 32 32 — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans 1 32 32 — — — Commercial — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 32 $ 32 — $ — $ —

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Schedule of other real estate owned	The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2020 and the year ended December 31, 2019: (Dollars are in thousands) September 30, December 31, 2019 Balance, beginning of period $ 3,393 $ 5,937 Additions 914 811 Transfers from premises and equipment — 683 Proceeds from sales (562 ) (1,322 ) Proceeds from insurance claims — (19 ) Loans made to finance sales (428 ) (2,360 ) Adjustment of carrying value (132 ) (214 ) Gains (losses) from sales 52 (123 ) Balance, end of period $ 3,237 $ 3,393

FAIR VALUES (Tables)

FAIR VALUES (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of summary of assets and liabilities measured at fair value	Assets and liabilities measured at fair value were as follows as of September 30, 2020 (for purpose of this table the impaired loans are shown net of the related allowance): September 30, 2020 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 14,781 $ — Taxable municipals — 4,567 — Corporate bonds — 5,558 — Mortgage backed securities — 19,203 — (On a non-recurring basis) — — 3,237 Impaired loans — — 4,487 Total $ — $ 44,109 $ 7,724 Assets and liabilities measured at fair value are as follows as of December 31, 2019 (for purpose of this table the impaired loans are shown net of the related allowance): December 31, 2019 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 15,633 $ — Taxable municipals — 4,442 — Corporate bonds — 5,523 — Mortgage backed securities — 25,051 — (On a non-recurring basis) — — 3,393 Impaired loans 5,252 Total $ — $ 50,649 $ 8,645
Schedule of significant unobservable inputs In level 3 assets	For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2020 Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 4,487 $ 5,252 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 3,237 $ 3,393 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18%
Schedule of estimated fair value of financial instruments	The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2020 Financial Instruments – Assets Net Loans $ 578,135 $ 575,103 $ — $ 570,270 $ 4,487 Financial Instruments – Liabilities Time Deposits 249,733 252,846 — 252,846 — FHLB Advances 5,000 4,971 — 4,971 — December 31, 2019 Financial Instruments – Assets Net Loans $ 557,176 $ 550,495 $ — $ 545,243 $ 5,252 Financial Instruments – Liabilities Time Deposits 257,406 259,325 — 259,325 — FHLB Advances 5,000 5,054 — 5,054 —

LEASING ACTIVITIES (Tables)

LEASING ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of future minimum rental commitments under the non-cancellable operating leases	At September 30, 2020, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2020 $ 132 2021 511 2022 530 2023 544 2024 546 Thereafter 4,528 Total lease payments 6,791 Less imputed interest 1,254 Total $ 5,537

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of revenue from contracts with customers	The following table presents Non-interest income by revenue stream for the three and nine months ended September 30, 2020 and 2019. For the three months ended For the nine months ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees $ 859 $ 924 $ 2,238 $ 2,597 Card Processing and interchange income 892 800 2,480 2,276 Gain on sale of securities available-for-sale (1) — — 4 — Insurance and investment fees 206 158 447 481 Other noninterest income 159 973 744 1,247 Total Noninterest Income $ 2,116 $ 2,855 $ 5,913 $ 6,601 (1) Not within the scope of ASU 2014-09

NON-INTEREST EXPENSES (Tables)

NON-INTEREST EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2020
Noninterest Expenses
Schedule of noninterest expenses	Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2020 2019 2020 2019 Advertising $ 42 $ 82 $ 166 $ 233 ATM network expense 357 488 1,113 1,389 Legal and professional fees 112 244 602 727 Consulting fees 82 77 443 296 Loan related expenses 88 194 275 484 Printing and supplies 38 39 105 116 FDIC insurance premiums 103 (3 ) 297 210 Other real estate owned expenses, net 59 99 255 525 Other operating expenses 684 572 1,893 1,670 Total other operating expenses $ 1,565 $ 1,792 $ 5,149 $ 5,650

INCOME PER SHARE (Details)

INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Per Share
Net income	$ 1,424	$ 29	$ 46	$ 876	$ 345	$ 406	$ 1,499	$ 1,627
Weighted average shares outstanding (in shares)	23,922,086			23,922,086			23,922,086	23,922,086
Weighted average dilutive shares outstanding (in shares)	23,922,086			23,922,086			23,922,086	23,922,086
Basic and diluted income per share (in shares)	$ 0.06			$ 0.04			$ 0.06	$ 0.07

CAPITAL (Details)

CAPITAL (Details) - Bank $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Total Capital to Risk Weighted Assets, Actual, Amount	$ 74,191	$ 72,109
Total Capital to Risk Weighted Assets, Actual, Ratio	0.1573	0.1483
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 37,725	$ 38,910
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	0.0800	0.080
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 47,156	$ 48,637
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.1000	0.100
Tier 1 Capital Risk Weighted Assets, Actual, Amount	$ 68,283	$ 66,741
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	0.1448	0.1372
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 28,294	$ 29,182
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio	0.0600	0.060
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 37,725	$ 38,910
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800	0.080
Tier 1 Capital to Average Assets, Actual, Amount	$ 68,283	$ 66,741
Tier 1 Capital to Average Assets, Actual, Ratio	0.0911	0.0943
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 29,979	$ 28,313
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio	0.0400	0.040
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 37,473	$ 35,391
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0500	0.050
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount	$ 68,283	$ 66,741
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	14.48%	13.72%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 21,220	$ 21,887
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 30,652	$ 31,614
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost	$ 43,002	$ 50,577
Gross Unrealized Gains	1,204	337
Gross Unrealized Losses	(97)	(265)
Approximate Fair Value	44,109	50,649
U.S. Government Agencies [Member]
Amortized Cost	14,468	15,703
Gross Unrealized Gains	375	57
Gross Unrealized Losses	(62)	(127)
Approximate Fair Value	14,781	15,633
Taxable Municipals [Member]
Amortized Cost	4,363	4,389
Gross Unrealized Gains	204	54
Gross Unrealized Losses		(1)
Approximate Fair Value	4,567	4,442
Corporate Bonds [Member]
Amortized Cost	5,396	5,408
Gross Unrealized Gains	189	115
Gross Unrealized Losses	(27)
Approximate Fair Value	5,558	5,523
Mortgage Backed Securities [Member]
Amortized Cost	18,775	25,077
Gross Unrealized Gains	436	111
Gross Unrealized Losses	(8)	(137)
Approximate Fair Value	$ 19,203	$ 25,051

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Less than 12 Months	$ 4,373	$ 9,423
Unrealized Losses, Less than 12 Months	(34)	(51)
Fair Value, 12 Months or More	4,423	16,518
Unrealized Losses, 12 Months or More	(63)	(214)
Fair Value, Total	8,796	25,941
Unrealized Losses, Total	(97)	(265)
U.S. Government Agencies [Member]
Fair Value, Less than 12 Months	1,503	6,788
Unrealized Losses, Less than 12 Months	(2)	(46)
Fair Value, 12 Months or More	4,162	4,516
Unrealized Losses, 12 Months or More	(60)	(81)
Fair Value, Total	5,665	11,304
Unrealized Losses, Total	(62)	(127)
Taxable Municipals [Member]
Fair Value, Less than 12 Months		1,049
Unrealized Losses, Less than 12 Months		(1)
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total		1,049
Unrealized Losses, Total		(1)
Corporate Bonds [Member]
Fair Value, Less than 12 Months	1,223
Unrealized Losses, Less than 12 Months	(27)
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	1,223
Unrealized Losses, Total	(27)
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	1,647	1,586
Unrealized Losses, Less than 12 Months	(5)	(4)
Fair Value, 12 Months or More	261	12,002
Unrealized Losses, 12 Months or More	(3)	(133)
Fair Value, Total	1,908	13,588
Unrealized Losses, Total	$ (8)	$ (137)

INVESTMENT SECURITIES (Detail_2

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Investment securities activity
Proceeds	$ 1,025
Gains	7
Losses	(3)
Tax benefit	$ (1)

INVESTMENT SECURITIES (Detail_3

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Investment securities activity
Due in one year or less, amortized cost
Due after one year through five years, amortized cost	5,080
Due after five years through ten years, amortized cost	10,817
Due after ten years, amortized cost	27,105
Amortized cost, total	43,002	$ 50,577
Due in one year or less, fair value
Due after one year through five years, fair value	5,263
Due after five years through ten years, fair value	11,027
Due after ten years, fair value	27,819
Approximate fair value	$ 44,109	$ 50,649
Due in one year or less, weighted average yield
Due after one year through five years, weighted average yield	2.53%
Due after five years through ten years, weighted average yield	3.29%
Due after ten years, weighted average yield	2.27%
Weighted average yield, total	2.35%

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Total loans and leases	$ 585,122	$ 562,544
Real Estate [Member]
Total loans and leases	461,309	478,916
Commercial [Member]
Total loans and leases	96,107	53,994
Commercial [Member] | Real Estate [Member]
Total loans and leases	174,898	170,436
Construction and Land Development [Member] | Real Estate [Member]
Total loans and leases	26,054	31,130
Residential 1-4 Family [Member] | Real Estate [Member]
Total loans and leases	226,267	242,922
Multifamily [Member] | Real Estate [Member]
Total loans and leases	14,979	13,638
Farmland [Member] | Real Estate [Member]
Total loans and leases	19,111	20,790
Agriculture [Member]
Total loans and leases	4,572	4,797
Consumer Installment Loans [Member]
Total loans and leases	21,313	23,127
Other Loans [Member]
Total loans and leases	$ 1,821	$ 1,710

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Total loans receivable on nonaccrual status	$ 5,343	$ 5,156
Real Estate [Member]
Total loans receivable on nonaccrual status	5,197	4,721
Commercial [Member]
Total loans receivable on nonaccrual status	118	390
Commercial [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	1,761	1,601
Construction and Land Development [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	59	45
Residential 1-4 Family [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	3,172	2,544
Farmland [Member] | Real Estate [Member]
Total loans receivable on nonaccrual status	205	531
Consumer Installment Loans [Member]
Total loans receivable on nonaccrual status	$ 28	$ 45

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Recorded Investment	$ 4,833	$ 5,575
Unpaid Principal Balance	5,566	6,986
Related Allowance	346	323
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance		1
Related Allowance
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	6
Unpaid Principal Balance	6
Related Allowance
Commercial [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	33	286
Unpaid Principal Balance	41	886
Related Allowance	8	200
Commercial [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment		128
Unpaid Principal Balance		178
Related Allowance
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	210	216
Unpaid Principal Balance	222	228
Related Allowance	4	9
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	408	778
Unpaid Principal Balance	577	970
Related Allowance
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	229	55
Unpaid Principal Balance	249	60
Related Allowance	49	44
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	2,254	1,263
Unpaid Principal Balance	2,407	1,460
Related Allowance
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment
Unpaid Principal Balance
Related Allowance
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	104	70
Unpaid Principal Balance	381	346
Related Allowance
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Recorded Investment	605	363
Unpaid Principal Balance	672	379
Related Allowance	285	70
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Recorded Investment	984	2,416
Unpaid Principal Balance	1,011	2,478
Related Allowance

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Average Recorded Investment	$ 5,525	$ 6,125	$ 5,547	$ 7,743
Interest Income Recognized	94	62	125	174
Commercial [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	33	45	74	691
Interest Income Recognized			1	11
Commercial [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	34	1,036	160	563
Interest Income Recognized	1	1	1
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	7	6	3	3
Interest Income Recognized
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment				3
Interest Income Recognized
All Other Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
All Other Loans [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	1,673	1,978	2,004	1,918
Interest Income Recognized		34	1	76
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	553	372	493	496
Interest Income Recognized				1
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	107	84	87	96
Interest Income Recognized	8	3	12	3
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	2,334	1,365	1,819	2,114
Interest Income Recognized	36	8	49	47
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	154	340	104	364
Interest Income Recognized	3		3
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment				37
Interest Income Recognized				1
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	419	788	590	1,235
Interest Income Recognized	41	16	51	29
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	211	111	213	223
Interest Income Recognized	$ 5		$ 7	$ 6

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans 30-59 Days Past Due	$ 4,803	$ 5,373
Loans 60-89 Days Past Due	440	1,310
Loans 90 or More Days Past Due	1,118	1,509
Total Past Due Loans	6,361	8,192
Current Loans	578,761	554,352
Total loans and leases	585,122	562,544
Real Estate [Member]
Loans 30-59 Days Past Due	4,297	4,625
Loans 60-89 Days Past Due	422	1,286
Loans 90 or More Days Past Due	1,094	1,142
Total Past Due Loans	5,813	7,053
Current Loans	455,496	471,863
Total loans and leases	461,309	478,916
Commercial [Member]
Loans 30-59 Days Past Due	153	406
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	10	323
Total Past Due Loans	163	729
Current Loans	95,944	53,265
Total loans and leases	96,107	53,994
Commercial [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	681	502
Loans 60-89 Days Past Due		125
Loans 90 or More Days Past Due	61	262
Total Past Due Loans	742	889
Current Loans	174,156	169,547
Total loans and leases	174,898	170,436
Construction and Land Development [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	25	50
Loans 60-89 Days Past Due		18
Loans 90 or More Days Past Due		18
Total Past Due Loans	25	86
Current Loans	26,029	31,044
Total loans and leases	26,054	31,130
Residential 1-4 Family [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	3,516	3,700
Loans 60-89 Days Past Due	422	1,096
Loans 90 or More Days Past Due	930	710
Total Past Due Loans	4,868	5,506
Current Loans	221,399	237,416
Total loans and leases	226,267	242,922
Multifamily [Member] | Real Estate [Member]
Loans 30-59 Days Past Due		262
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans		262
Current Loans	14,979	13,376
Total loans and leases	14,979	13,638
Farmland [Member] | Real Estate [Member]
Loans 30-59 Days Past Due	75	111
Loans 60-89 Days Past Due		47
Loans 90 or More Days Past Due	103	152
Total Past Due Loans	178	310
Current Loans	18,933	20,480
Total loans and leases	19,111	20,790
Agriculture [Member]
Loans 30-59 Days Past Due	211	244
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	11	21
Total Past Due Loans	222	265
Current Loans	4,350	4,532
Total loans and leases	4,572	4,797
Consumer Installment Loans [Member]
Loans 30-59 Days Past Due	142	98
Loans 60-89 Days Past Due	18	24
Loans 90 or More Days Past Due	3	23
Total Past Due Loans	163	145
Current Loans	21,150	22,982
Total loans and leases	21,313	23,127
Other Loans [Member]
Loans 30-59 Days Past Due
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans
Current Loans	1,821	1,710
Total loans and leases	$ 1,821	$ 1,710

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Total	$ 585,122	$ 562,544
Pass [Member]
Total	568,620	548,580
Special Mention [Member]
Total	11,241	8,832
Substandard [Member]
Total	5,261	4,846
Doubtful [Member]
Total		286
Real Estate [Member]
Total	461,309	478,916
Real Estate [Member] | Pass [Member]
Total	447,618	467,944
Real Estate [Member] | Special Mention [Member]
Total	8,526	6,312
Real Estate [Member] | Substandard [Member]
Total	5,165	4,660
Real Estate [Member] | Doubtful [Member]
Total
Commercial [Member]
Total	96,107	53,994
Commercial [Member] | Pass [Member]
Total	93,331	51,086
Commercial [Member] | Special Mention [Member]
Total	2,708	2,504
Commercial [Member] | Substandard [Member]
Total	68	118
Commercial [Member] | Doubtful [Member]
Total		286
Commercial [Member] | Real Estate [Member]
Total	174,898	170,436
Commercial [Member] | Real Estate [Member] | Pass [Member]
Total	168,111	165,570
Commercial [Member] | Real Estate [Member] | Special Mention [Member]
Total	5,026	3,265
Commercial [Member] | Real Estate [Member] | Substandard [Member]
Total	1,761	1,601
Commercial [Member] | Real Estate [Member] | Doubtful [Member]
Total
Construction and Land Development [Member] | Real Estate [Member]
Total	26,054	31,130
Construction and Land Development [Member] | Real Estate [Member] | Pass [Member]
Total	25,752	30,747
Construction and Land Development [Member] | Real Estate [Member] | Special Mention [Member]
Total	243	360
Construction and Land Development [Member] | Real Estate [Member] | Substandard [Member]
Total	59	23
Construction and Land Development [Member] | Real Estate [Member] | Doubtful [Member]
Total
Residential 1-4 Family [Member] | Real Estate [Member]
Total	226,267	242,922
Residential 1-4 Family [Member] | Real Estate [Member] | Pass [Member]
Total	221,385	239,210
Residential 1-4 Family [Member] | Real Estate [Member] | Special Mention [Member]
Total	1,742	1,207
Residential 1-4 Family [Member] | Real Estate [Member] | Substandard [Member]
Total	3,140	2,505
Residential 1-4 Family [Member] | Real Estate [Member] | Doubtful [Member]
Total
Multifamily [Member] | Real Estate [Member]
Total	14,979	13,638
Multifamily [Member] | Real Estate [Member] | Pass [Member]
Total	14,744	13,638
Multifamily [Member] | Real Estate [Member] | Special Mention [Member]
Total	235
Multifamily [Member] | Real Estate [Member] | Substandard [Member]
Total
Multifamily [Member] | Real Estate [Member] | Doubtful [Member]
Total
Farmland [Member] | Real Estate [Member]
Total	19,111	20,790
Farmland [Member] | Real Estate [Member] | Pass [Member]
Total	17,626	18,779
Farmland [Member] | Real Estate [Member] | Special Mention [Member]
Total	1,280	1,480
Farmland [Member] | Real Estate [Member] | Substandard [Member]
Total	205	531
Farmland [Member] | Real Estate [Member] | Doubtful [Member]
Total
Agriculture [Member]
Total	4,572	4,797
Agriculture [Member] | Pass [Member]
Total	4,561	4,753
Agriculture [Member] | Special Mention [Member]
Total		4
Agriculture [Member] | Substandard [Member]
Total	11	40
Agriculture [Member] | Doubtful [Member]
Total
Consumer Installment Loans [Member]
Total	21,313	23,127
Consumer Installment Loans [Member] | Pass [Member]
Total	21,289	23,087
Consumer Installment Loans [Member] | Special Mention [Member]
Total	7	12
Consumer Installment Loans [Member] | Substandard [Member]
Total	17	28
Consumer Installment Loans [Member] | Doubtful [Member]
Total
Other Loans [Member]
Total	1,821	1,710
Other Loans [Member] | Pass [Member]
Total	1,821	1,710
Other Loans [Member] | Special Mention [Member]
Total
Other Loans [Member] | Substandard [Member]
Total
Other Loans [Member] | Doubtful [Member]
Total

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Balance, beginning of year	$ 6,575	$ 5,188	$ 5,368	$ 5,336
Charge Offs	(124)	(1,107)	(573)	(1,849)
Recoveries	86	49	192	373
Provision for loan losses	450	1,020	2,000	1,290
Balance, End of period	6,987	5,150	6,987	5,150
Commercial [Member]
Balance, beginning of year	1,817	1,383	1,789	448
Charge Offs		(1,026)	(326)	(1,563)
Recoveries	3	14	34	59
Provision for loan losses	304	1,053	627	2,480
Balance, End of period	2,124	1,424	2,124	1,424
Commercial [Member] | Real Estate [Member]
Balance, beginning of year	2,054	1,225	1,248	1,386
Charge Offs	(43)		(65)
Recoveries	54	14	56	16
Provision for loan losses	48	20	874	(143)
Balance, End of period	2,113	1,259	2,113	1,259
Construction and Land Development [Member] | Real Estate [Member]
Balance, beginning of year	169	146	158	202
Recoveries				34
Provision for loan losses	21	20	32	(70)
Balance, End of period	190	166	190	166
Residential 1-4 Family [Member] | Real Estate [Member]
Balance, beginning of year	2,039	1,967	1,736	2,437
Charge Offs	(66)	(42)	(66)	(171)
Recoveries	14	11	31	168
Provision for loan losses	75	(68)	361	(566)
Balance, End of period	2,062	1,868	2,062	1,868
Multifamily [Member] | Real Estate [Member]
Balance, beginning of year	145	87	104	89
Recoveries				30
Provision for loan losses	3	15	44	(17)
Balance, End of period	148	102	148	102
Farmland [Member] | Real Estate [Member]
Balance, beginning of year	121	118	109	287
Charge Offs			(42)	(33)
Recoveries			33	8
Provision for loan losses	(1)	9	20	(135)
Balance, End of period	120	127	120	127
Agriculture [Member]
Balance, beginning of year	49	35	27	37
Charge Offs		(9)	(15)	(9)
Recoveries			1	1
Provision for loan losses	(5)	(2)	31	(5)
Balance, End of period	44	24	44	24
Consumer Installment Loans [Member]
Balance, beginning of year	181	162	195	175
Charge Offs	(15)	(30)	(59)	(73)
Recoveries	15	10	37	57
Provision for loan losses	5	35	13	18
Balance, End of period	186	177	186	177
Unallocated [Member]
Balance, beginning of year		65	2	275
Provision for loan losses		(62)	(2)	(272)
Balance, End of period		$ 3		$ 3

ALLOWANCE FOR LOAN LOSSES (De_2

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Allowance for loan losses, individually evaluated for impairment	$ 346		$ 323
Allowance for loan losses, collectively evaluated for impairment	6,641		5,045
Allowance for loan losses, total	6,987	$ 6,575	5,368	$ 5,150	$ 5,188	$ 5,336
Recorded investment in loans, individually evaluated for impairment	4,833		5,575
Recorded investment in loans, collectively evaluated for impairment	580,289		556,969
Recorded investment in loans, total	585,122		562,544
Real Estate [Member]
Recorded investment in loans, total	461,309		478,916
Commercial [Member]
Allowance for loan losses, individually evaluated for impairment	8		200
Allowance for loan losses, collectively evaluated for impairment	2,116		1,589
Allowance for loan losses, total	2,124		1,789
Recorded investment in loans, individually evaluated for impairment	33		414
Recorded investment in loans, collectively evaluated for impairment	96,074		53,580
Recorded investment in loans, total	96,107		53,994
Commercial [Member] | Real Estate [Member]
Allowance for loan losses, individually evaluated for impairment	285		70
Allowance for loan losses, collectively evaluated for impairment	1,828		1,178
Allowance for loan losses, total	2,113		1,248
Recorded investment in loans, individually evaluated for impairment	1,589		2,779
Recorded investment in loans, collectively evaluated for impairment	173,309		167,657
Recorded investment in loans, total	174,898		170,436
Construction and Land Development [Member] | Real Estate [Member]
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	190		158
Allowance for loan losses, total	190		158
Recorded investment in loans, individually evaluated for impairment	104		70
Recorded investment in loans, collectively evaluated for impairment	25,950		31,060
Recorded investment in loans, total	26,054		31,130
Residential 1-4 Family [Member] | Real Estate [Member]
Allowance for loan losses, individually evaluated for impairment	49		44
Allowance for loan losses, collectively evaluated for impairment	2,013		1,692
Allowance for loan losses, total	2,062		1,736
Recorded investment in loans, individually evaluated for impairment	2,483		1,318
Recorded investment in loans, collectively evaluated for impairment	223,784		241,604
Recorded investment in loans, total	226,267		242,922
Multifamily [Member] | Real Estate [Member]
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	148		104
Allowance for loan losses, total	148		104
Recorded investment in loans, individually evaluated for impairment
Recorded investment in loans, collectively evaluated for impairment	14,979		13,638
Recorded investment in loans, total	14,979		13,638
Farmland [Member] | Real Estate [Member]
Allowance for loan losses, individually evaluated for impairment	4		9
Allowance for loan losses, collectively evaluated for impairment	116		100
Allowance for loan losses, total	120		109
Recorded investment in loans, individually evaluated for impairment	618		994
Recorded investment in loans, collectively evaluated for impairment	18,493		19,796
Recorded investment in loans, total	19,111		20,790
Agriculture [Member]
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	44		27
Allowance for loan losses, total	44	49	27	24	35	37
Recorded investment in loans, individually evaluated for impairment
Recorded investment in loans, collectively evaluated for impairment	4,572		4,797
Recorded investment in loans, total	4,572		4,797
Consumer and All Other [Member]
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment	186		195
Allowance for loan losses, total	186		195
Recorded investment in loans, individually evaluated for impairment	6
Recorded investment in loans, collectively evaluated for impairment	23,128		24,837
Recorded investment in loans, total	23,134		24,837
Unallocated [Member]
Allowance for loan losses, individually evaluated for impairment
Allowance for loan losses, collectively evaluated for impairment			2
Allowance for loan losses, total			2	$ 3	$ 65	$ 275
Recorded investment in loans, individually evaluated for impairment
Recorded investment in loans, collectively evaluated for impairment
Recorded investment in loans, total

TROUBLED DEBT RESTRUCTURINGS (D

TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Number	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Number	Sep. 30, 2019USD ($)Number
# of Loans | Number	1		32	1
Pre-Mod. Recorded Investment	$ 32		$ 1,433	$ 281
Post-Mod. Recorded Investment	$ 32		$ 1,433	$ 281
Real Estate [Member]
# of Loans | Number	1		30	1
Pre-Mod. Recorded Investment	$ 32		$ 1,426	$ 281
Post-Mod. Recorded Investment	32		$ 1,426	281
Commercial [Member] | Real Estate [Member]
# of Loans | Number			3
Pre-Mod. Recorded Investment			$ 190
Post-Mod. Recorded Investment			190
Construction and Land Development [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Residential 1-4 Family [Member] | Real Estate [Member]
# of Loans | Number	1		27
Pre-Mod. Recorded Investment	$ 32		$ 1,236
Post-Mod. Recorded Investment	32		1,236
Multifamily [Member] | Real Estate [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Farmland [Member] | Real Estate [Member]
# of Loans | Number				1
Pre-Mod. Recorded Investment				$ 281
Post-Mod. Recorded Investment				281
Commercial [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Agriculture [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Consumer Installment Loans [Member]
# of Loans | Number			2
Pre-Mod. Recorded Investment			$ 7
Post-Mod. Recorded Investment			7
Other Loans [Member]
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Real Estate [Abstract]
Balance, beginning of year	$ 3,393	$ 5,937
Additions	914	811
Transfers from premises and equipment		683
Proceeds from sales	(562)	(1,322)
Proceeds from insurance claims		(19)
Loans made to finance sales	(428)	(2,360)
Adjustment of carrying value	(132)	(214)
Gains (losses) from sales	52	(123)
Balance, end of year	$ 3,237	$ 3,393

FAIR VALUES (Details)

FAIR VALUES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Inputs, Level 2 [Member]
Available for sale investments	$ 44,109	$ 50,649
Fair Value, Inputs, Level 3 [Member]
Available for sale investments	7,724	8,645
Other real estate owned	3,237	3,393
Impaired loans	4,487	5,252
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member]
Available for sale investments	14,781	15,633
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Taxable Municipals
Available for sale investments	4,567	4,442
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds
Available for sale investments	5,558	5,523
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities [Member]
Available for sale investments	$ 19,203	$ 25,051

FAIR VALUES (Details 1)

FAIR VALUES (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Impaired Loans
Fair Value	$ 4,487	$ 5,252
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell
Other Real Estate Owned
Fair Value	$ 3,237	$ 3,393
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Minimum [Member] | Impaired Loans
General Range of Significant Unobservable Input Values	0.00%
Minimum [Member] | Other Real Estate Owned
General Range of Significant Unobservable Input Values	0.00%
Maximum [Member] | Impaired Loans
General Range of Significant Unobservable Input Values	18.00%
Maximum [Member] | Other Real Estate Owned
General Range of Significant Unobservable Input Values	18.00%

FAIR VALUES (Details 2)

FAIR VALUES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Net Loans	$ 578,135	$ 557,176
Fair Value, Inputs, Level 2 [Member]
Net Loans	570,270	545,243
Time deposits	252,846	259,325
FHLB advances	4,971	5,054
Fair Value, Inputs, Level 3 [Member]
Net Loans	4,487	5,252
Time deposits
FHLB advances
Reported Value Measurement [Member]
Net Loans	578,135	557,176
Time deposits	249,733	257,406
FHLB advances	5,000	5,000
Estimate of Fair Value Measurement [Member]
Net Loans	575,103	550,495
Time deposits	252,846	259,325
FHLB advances	$ 4,971	$ 5,054

LEASING ACTIVITIES (Details)

LEASING ACTIVITIES (Details) $ in Thousands	Sep. 30, 2020USD ($)
Leases [Abstract]
2020	$ 132
2021	511
2022	530
2023	544
2024	546
Thereafter	4,528
Total lease payments	6,791
Less imputed interest	1,254
Total	$ 5,537

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Service charges and fees	$ 859	$ 924	$ 2,238	$ 2,597
Card Processing and interchange income	892	800	2,480	2,276
Gain on sale and leaseback transactions			4
Insurance and investment fees	206	158	447	481
Other noninterest income	159	973	744	1,247
Total Noninterest Income	$ 2,116	$ 2,855	$ 5,913	$ 6,601

NONINTEREST EXPENSES (Details)

NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Noninterest Expenses
Advertising	$ 42	$ 82	$ 166	$ 233
ATM network expense	357	488	1,113	1,389
Legal and professional fees	112	244	602	727
Consulting fees	82	77	443	296
Loan related expenses	88	194	275	484
Printing and supplies	38	39	105	116
FDIC insurance premiums	103	(3)	297	210
Other real estate owned expenses, net	59	99	255	525
Other operating expenses	684	572	1,893	1,670
Total	$ 1,565	$ 1,792	$ 5,149	$ 5,650