Capital City Bank (CCBG) 10-Q 3 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-13358
Entity Registrant Name	Capital City Bank Group, Inc.
Entity Incorporation State Country Code	FL
Entity Tax Identification Number	59-2273542
Address Line 1	217 North Monroe Street
Name of the City or Town	Tallahassee
Name of the state or province	FL
Code for the postal or zip code	32301
City Area Code	850
Local Phone Number	402-7821
Security 12b Title	Common Stock, Par value $0.01
Trading Symbol	CCBG
Security Exchange Name	NASDAQ
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,780,276
Entity Central Index Key	0000726601
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and Due From Banks	$ 75,155,000	$ 60,087,000
Federal Funds Sold and Interest Bearing Deposits	513,273,000	318,336,000
Total Cash and Cash Equivalents	588,428,000	378,423,000
Investment Securities, Available for Sale, at fair value	341,180,000	403,601,000
Investment Securities, Held to Maturity, (fair value of $238,499 and $241,429	232,178,000	239,539,000
Total Investment Securities	573,358,000	643,140,000
Loans held for sale, at fair value	76,610,000	9,509,000
Loans Held for Investment, Net	2,022,177,000	1,835,929,000
Allowance for Credit Losses	(22,457,000)	(13,905,000)
Loans Held for Investment, Net	1,999,720,000	1,822,024,000
Premises and Equipment, Net	87,972,000	84,543,000
Goodwill	89,095,000	84,811,000
Other Real Estate Owned	1,059,000	953,000
Other assets	83,282,000	65,550,000
Total Assets	3,499,524,000	3,088,953,000
Deposits:
Noninterest Bearing Deposits	1,377,032,000	1,044,699,000
Interest Bearing Deposits	1,577,964,000	1,600,755,000
Total Deposits	2,954,996,000	2,645,454,000
Short-Term Borrowings	63,958,000	6,404,000
Subordinated Notes Payable	52,887,000	52,887,000
Other Long-Term Borrowings	5,583,000	6,514,000
Other liabilities	75,702,000	50,678,000
Total Liabilities	3,153,126,000	2,761,937,000
Temporary Equity	11,341,000	0
SHAREOWNERS' EQUITY
Preferred Stock, $.01 par value;3,000,000 shares authorized; no shares issued and outstanding	0	0
Common Stock, $.01 par value; 90,000,000 shares authorized; 16,780,276 and 16,771,544 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	168,000	168,000
Additional Paid-In Capital	31,575,000	32,092,000
Retained Earnings	328,570,000	322,937,000
Accumulated Other Comprehensive Loss, Net of Tax	(25,256,000)	(28,181,000)
Total Shareowners' Equity	335,057,000	327,016,000
Total Liabilities and Shareowners' Equity	$ 3,499,524,000	$ 3,088,953,000

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Investment securities, held to maturity, fair value	$ 238,499	$ 241,429
Preferred Stock, par value (in dollar per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	3,000,000	3,000,000
Common Stock, par value (in dollar per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	90,000,000	90,000,000
Common Stock, shares issued	16,780,276	16,771,544
Common Stock, shares outstanding	16,780,276	16,771,544

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INTEREST INCOME
Loans, including Fees	$ 23,687	$ 23,765	$ 47,280	$ 46,381
Investment Securities:
Taxable	2,708	3,301	5,704	6,688
Tax Exempt	29	92	48	218
Funds Sold	88	1,507	845	3,100
Total Interest Income	26,512	28,665	53,877	56,387
INTEREST EXPENSE
Deposits	218	1,988	1,157	4,087
Short-Term Borrowings	421	31	553	66
Subordinated Notes Payable	374	596	845	1,204
Other Long-Term Borrowings	41	66	91	138
Total Interest Expense	1,054	2,681	2,646	5,495
NET INTEREST INCOME	25,458	25,984	51,231	50,892
Provision for Credit Losses	2,005	646	6,995	1,413
Net Interest Income After Provision For Loan Losses	23,453	25,338	44,236	49,479
NONINTEREST INCOME
Other	2,933	1,375	4,711	2,981
Total Noninterest Income	30,199	12,770	45,677	25,322
NONINTEREST EXPENSE
Compensation	23,658	16,437	43,394	32,786
Occupancy, Net	5,798	4,537	10,777	9,046
Other Real Estate Owned, Net	116	75	(682)	438
Other	7,731	7,347	14,783	14,324
Total Noninterest Expense	37,303	28,396	68,272	56,594
INCOME BEFORE INCOME TAXES	16,349	9,712	21,641	18,207
Income Tax Expense	2,950	2,387	4,232	4,446
NET INCOME	13,399	7,325	17,409	13,761
Net Loss Attributable to Noncontrolling Interests	4,253	0	3,976	0
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 9,146	$ 7,325	$ 13,433	$ 13,761
BASIC NET INCOME PER SHARE (in dollars per shares)	$ 0.55	$ 0.44	$ 0.80	$ 0.82
DILUTED NET INCOME PER SHARE (in dollars per shares)	$ 0.55	$ 0.44	$ 0.80	$ 0.82
Average Basic Common Shares Outstanding (in shares)	16,797	16,791	16,803	16,791
Average Diluted Common Shares Outstanding (in shares)	16,839	16,818	16,844	16,820
Deposit fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	$ 3,756	$ 4,756	$ 8,771	$ 9,531
Bank card fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	3,142	3,036	6,193	5,891
Wealth Managment fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	2,554	2,404	5,158	4,727
Mortgage banking [Member]
NONINTEREST INCOME
Revenue, fees and commissions	$ 17,814	$ 1,199	$ 20,844	$ 2,192

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net Income attributable to common shareowners	$ 9,146	$ 7,325	$ 13,433	$ 13,761
Other comprehensive income, before tax:
Change in net unrealized gain/loss on securities available for sale, Before Tax	424	1,736	3,962	2,985
Amortization of unrealized losses on securities transferred from available for sale to held to maturity	9	11	18	22
Total Investment Securities, Before Tax	433	1,747	3,980	3,007
Change in net unrealized gain/loss on interest rate swap	(104)	0	(104)	0
Other Comprehensive Income, before tax	329	1,747	3,876	3,007
Deferred tax expense related to other comprehensive income	52	443	951	762
Other comprehensive income, net of tax	277	1,304	2,925	2,245
Total Comprehensive Income attributable to common shareowners	$ 9,423	$ 8,629	$ 16,358	$ 16,006

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Adoption of ASC 326 [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member]Adoption of ASC 326 [Member]	Accumulated Other Comprehensive Loss, Net of Taxes [Member]
Balance at Dec. 31, 2018	$ 302,587		$ 167	$ 31,058	$ 300,177		$ (28,815)
Balance (in shares) at Dec. 31, 2018			16,747,571
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	13,761		$ 0	0	13,761		0
Other Comprehensive Income, net of tax	2,245		0	0	0		2,245
Cash Dividends ($0.1400 and $0.1100) per share for quarter June 30, 2020; 2019, and ($0.2800 and $0.2200) per share for YTD June 30, 2020, 2019 respectively	(3,691)		0	0	(3,691)		0
Repurchase of Common Stock	(1,806)		$ (1)	(1,805)	0		0
Repurchase of Common Stock (in shares)			(77,000)
Stock Compensation	885		$ 0	885	0		0
Stock Compensation Plan Transactions, net	614		$ 1	613	0		0
Stock Compensation Plan Transactions, net (in shares)			75,295
Balance at Jun. 30, 2019	314,595		$ 167	30,751	310,247		(26,570)
Balance, Shares at Jun. 30, 2019			16,745,866
Balance at Mar. 31, 2019	308,986		$ 168	31,929	304,763		(27,874)
Balance (in shares) at Mar. 31, 2019			16,812,460
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	7,325		$ 0	0	7,325		0
Other Comprehensive Income, net of tax	1,304		0	0	0		1,304
Cash Dividends ($0.1400 and $0.1100) per share for quarter June 30, 2020; 2019, and ($0.2800 and $0.2200) per share for YTD June 30, 2020, 2019 respectively	(1,841)		0	0	(1,841)		0
Repurchase of Common Stock	(1,806)		$ (1)	(1,805)	0		0
Repurchase of Common Stock (in shares)			(77,000)
Stock Compensation	386		$ 0	386	0		0
Stock Compensation Plan Transactions, net	$ 241		$ 0	241	0		0
Stock Compensation Plan Transactions, net (in shares)	10,406		10,406
Balance at Jun. 30, 2019	$ 314,595		$ 167	30,751	310,247		(26,570)
Balance, Shares at Jun. 30, 2019			16,745,866
Balance at Dec. 31, 2019	$ 327,016	$ (3,095)	$ 168	32,092	322,937	$ (3,095)	(28,181)
Balance (in shares) at Dec. 31, 2019	16,771,544		16,771,544
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 13,433		$ 0	0	13,433		0
Other Comprehensive Income, net of tax	2,925		0	0	0		2,925
Cash Dividends ($0.1400 and $0.1100) per share for quarter June 30, 2020; 2019, and ($0.2800 and $0.2200) per share for YTD June 30, 2020, 2019 respectively	(4,705)		0	0	(4,705)		0
Repurchase of Common Stock	(1,571)		$ (1)	(1,570)	0		0
Repurchase of Common Stock (in shares)			(76,952)
Stock Compensation	368		$ 0	368	0		0
Stock Compensation Plan Transactions, net	686		$ 1	685	0		0
Stock Compensation Plan Transactions, net (in shares)			85,684
Balance at Jun. 30, 2020	$ 335,057		$ 168	31,575	328,570		(25,256)
Balance, Shares at Jun. 30, 2020	16,780,276		16,780,276
Balance at Mar. 31, 2020	$ 328,507		$ 168	32,100	321,772		(25,533)
Balance (in shares) at Mar. 31, 2020	16,811,781		16,811,781
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 9,146		$ 0	0	9,146		0
Other Comprehensive Income, net of tax	277		0	0	0		277
Cash Dividends ($0.1400 and $0.1100) per share for quarter June 30, 2020; 2019, and ($0.2800 and $0.2200) per share for YTD June 30, 2020, 2019 respectively	(2,348)		0	0	(2,348)		0
Repurchase of Common Stock	(863)		$ 0	(863)	0		0
Repurchase of Common Stock (in shares)			(43,878)
Stock Compensation	77		$ 0	77	0		0
Stock Compensation Plan Transactions, net	$ 261		$ 0	261	0		0
Stock Compensation Plan Transactions, net (in shares)	12,373		12,373
Balance at Jun. 30, 2020	$ 335,057		$ 168	$ 31,575	$ 328,570		$ (25,256)
Balance, Shares at Jun. 30, 2020	16,780,276		16,780,276

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash Dividends (in dollars per share)	$ 0.1400	$ 0.1100	$ 0.2800	$ 0.2200

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 13,433	$ 13,761
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Provision for Loan Losses	6,995	1,413
Depreciation	3,400	3,148
Amortization of Premiums, Discounts, and Fees (net)	3,414	2,520
Originations of Loans Held for Sale	(431,775)	(94,776)
Proceeds From Sales of Loans Held for Sale	385,518	93,952
Gain Loss On Sale Of Mortgage Loans	(20,844)	(2,192)
Stock Compensation	368	885
Excess Tax Benefit From Share Based Compensation Operating Activities	(84)	(14)
Deferred Income Taxes	(695)	1,253
Net change in operating leases	498	45
Loss on Sales and Write-Downs of Other Real Estate Owned	(915)	204
Proceeds From Insurance Claim for Operating Loss	0	268
Loss on Sale or Disposal of Premises and Equipment	0	(39)
Net (Increase) Decrease in Other Assets	(23,035)	(11,628)
Net Increase (Decrease) in Other Liabilities	36,251	22,430
Net Cash Provided By Operating Activities	(27,471)	31,308
Securities Held to Maturity:
Purchases	(32,250)	(33,844)
Payments, Maturities, and Calls	38,362	20,891
Securities Available for Sale:
Purchases	(38,364)	(31,215)
Payments, Maturities, and Calls	102,846	67,551
Purchases of Loans Held for Investment	(18,359)	(18,661)
Net Increase in Loans Held for Investment	(167,587)	(43,822)
Net Cash Paid For Brand Acquisition	(2,405)	0
Proceeds From Insurance Claims on Premises	0	814
Proceeds From Sales of Other Real Estate Owned	1,800	1,703
Purchases of Premises and Equipment, net	(6,842)	(2,002)
Net Cash Used In Investing Activities	(122,799)	(38,585)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	309,542	29,248
Net Increase (Decrease) in Short-Term Borrowings	57,460	(4,148)
Repayment of Other Long-Term Borrowings	(837)	(895)
Dividends Paid	(4,705)	(3,691)
Payments to Repurchase Common Stock	(1,571)	(1,806)
Issuance of Common Stock Under Purchase Plans	386	397
Net Cash Used In Financing Activities	360,275	19,105
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	210,005	11,828
Cash and Cash Equivalents at Beginning of Period	378,423	276,000
Cash and Cash Equivalents at End of Period	588,428	287,828
Supplemental Cash Flow Disclosures:
Interest Paid, Net	2,655	5,505
Income Taxes Paid	3,613	1,381
Noncash Investing and Financing Activities:
Loans Transferred to Other Real Estate Owned	$ 991	$ 688

BUSINESS AND BASIS OF PRESENTAT

BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2020
Business and Basis of Presentation [Abstract]
Business and Basis of Presentation	CAPITAL CITY BANK GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BUSINESS AND BASIS OF PRESENTATION Nature of Operations . Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of banking and banking-related services to individual and corporate clients through its subsidiary, Capital City Bank, with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities. Basis of Presentation . The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and its wholly owned subsidiary, Capital City Bank (“CCB” or the “Bank”). All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year’s presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated statement of financial condition at December 31, 2019 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. Business Combination . On March 1, 2020, CCB completed its acquisition of a 51% membership interest in Brand Mortgage Group , LLC (“Brand”) which is now operated as Capital City Home Loans (“CCHL”). CCHL was consolidated into CCBG’s financial statements effective March 1, 2020. Assets acquired totaled $ 52 million (consisting primarily of loans held for sale) and liabilities assumed totaled $ 42 million (consisting primarily of warehouse line borrowings). The primary purpose of the acquisition was to gain access to an expanded residential mortgage product line-up and investor base (including a mandatory delivery channel for loan sales) and to generate other operational synergies and cost savings. CCB made a $ 7.1 million cash payment for its 51% membership interest and entered into a buyout agreement for the remaining 49% noncontrolling interest resulting in temporary equity with a fair value of $ 7.4 million. Goodwill totaling $ 4.3 million was recorded in connection with this acquisition. Factors that contributed to the purchase price resulting in goodwill include Brand’s strong management team and expertise in the mortgage industry, historical record of earnings, and operational synergies created as part of the strategic alliance. Adoption of New Accounting Standard On January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326-30 provides a new credit loss model for available-for-sale debt securities. The most significant change requires credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities that management does not intend to sell or believes that it is not more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of ASC 326 (“CECL”) had an impact of $ 4.0 million ($3.3 million increase in the allowance for credit losses and $ 0.7 million increase in the allowance for unfunded loan commitments (liability account)) that was offset by a corresponding decrease in retained earnings of $ 3.1 million and $ 0.9 million increase in deferred tax assets. The increase in the allowance for credit losses required under the ASC 326 generally reflected the impact of reserves calculated over the life of loan, and more specifically higher reserves required for longer duration loan portfolios, and the utilization of a longer historical look-back period in the calculation of loan loss rates (loss given default). Upon analyzing the debt security portfolios, the Company determined that no allowance was required as these debt securities are government guaranteed treasuries or government agency-backed securities for which the risk of loss was deemed minimal. Further, certain municipal debt securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. The following table illustrates the impact of adopting ASC 326 on January 1, 2020. As Reported Impact of Under Pre-ASC 326 ASC 326 (Dollars in Thousands) ASC 326 Adoption Adoption Loans: Commercial, Financial and Agricultural $ 2,163 $ 1,675 $ 488 Real Estate - Construction 672 370 302 Real Estate - Commercial Mortgage 4,874 3,416 1,458 Real Estate - Residential 4,371 3,128 1,243 Real Estate - Home Equity 2,598 2,224 374 Consumer, Other Loans and Overdrafts 2,496 3,092 ( 596) Allowance for Credit Losses on Loans 17,174 13,905 3,269 Other Liabilities: Allowance for Credit Losses on Off-Balance Sheet Credit Exposures $ 815 $ 157 $ 658 Significant Accounting Policy Changes Upon adoption of ASC 326, the Company revised certain accounting policies for Investment Securities, Loans, and the Allowance for Credit Losses as detailed below. In addition, certain accounting policies were revised upon the acquisition of Brand on March 1, 2020 and are also discussed in further detail below under the Mortgage Banking Activities section. Investment Securities Investment securities are classified as held-to-maturity and carried at amortized cost when the Company has the positive intent and ability to hold them until maturity. Investment securities not classified as held-to-maturity or trading securities are classified as available-for-sale and carried at fair value. The Company determines the appropriate classification of securities at the time of purchase. For reporting and risk management purposes, we further segment investment securities by the issuer of the security which correlates to its risk profile: U.S. government treasury, U.S. government agency, state and political subdivisions, and mortgage-backed securities. Certain equity securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are classified as available-for-sale and carried at cost. Interest income includes amortization and accretion of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Securities transferred from available-for-sale to held-to-maturity are recorded at amortized cost plus or minus any unrealized gain or loss at the time of transfer. Any existing unrecognized gain or loss continues to be reported in accumulated other comprehensive income (net of tax) and amortized as an adjustment to interest income over the remaining life of the security. Any existing allowance for credit loss is reversed at the time of transfer. Subsequent to transfer, the allowance for credit losses on the transferred security is evaluated in accordance with the accounting policy for held-to-maturity securities. Additionally, any allowance amounts reversed or established as part of the transfer are presented on a gross basis in the consolidated statement of income. The accrual of interest is generally suspended on securities more than 90 days past due with respect to principal or interest. When a security is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus not included in the estimate of credit losses. Credit losses and changes thereto, are established as an allowance for credit loss through a provision for credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Certain debt securities in the Company’s investment portfolio were issued by a U.S. government entity or agency and are either explicitly or implicitly guaranteed by the U.S. government. The Company considers the long history of no credit losses on these securities indicates that the expectation of nonpayment of the amortized cost basis is zero, even if the U.S. government were to technically default. Further, certain municipal securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. Therefore, for the aforementioned securities, the Company does not assess or record expected credit losses due to the zero loss assumption. Impairment - Available-for-Sale Securities . Unrealized gains on available-for-sale securities are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). For available-for-sale securities that are in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale securities that do not meet the aforementioned criteria or have a zero loss assumption, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded through a provision for credit loss expense, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Allowance for Credit Losses - Held-to-Maturity Securities. Management measures expected credit losses on each individual held-to-maturity debt security that has not been deemed to have a zero assumption. Each security that is not deemed to have zero credit losses is individually measured based on net realizable value, or the difference between the discounted value of the expected cash flows, based on the original effective rate, and the recorded amortized basis of the security. To the extent a shortfall is related to credit loss, an allowance for credit loss is recorded through a provision for credit loss expense. Any shortfall related to other noncredit-related factors is recognized in other comprehensive income. Loans Held for Investment Loans held for investment (“HFI”) are stated at amortized cost which includes the principal amount outstanding, net premiums and discounts, and net deferred loan fees and costs. Accrued interest receivable on loans is reported in other assets and is not included in the amortized cost basis of loans. Interest income is accrued on the effective yield method based on outstanding principal balances, and includes loan late fees. Fees charged to originate loans and direct loan origination costs are deferred and amortized over the life of the loan as a yield adjustment. The Company defines loans as past due when one full payment is past due or a contractual maturity is over 30 days late. The accrual of interest is generally suspended on loans more than 90 days past due with respect to principal or interest. When a loan is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus a policy election has been made to not include in the estimate of credit losses. Interest income on nonaccrual loans is recognized when the ultimate collectability is no longer considered doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought current or when future payments are reasonably assured. Loan charge-offs on commercial and investor real estate loans are recorded when the facts and circumstances of the individual loan confirm the loan is not fully collectible and the loss is reasonably quantifiable. Factors considered in making these determinations are the borrower’s and any guarantor’s ability and willingness to pay, the status of the account in bankruptcy court (if applicable), and collateral value. Charge-off decisions for consumer loans are dictated by the Federal Financial Institutions Examination Council’s (FFIEC) Uniform Retail Credit Classification and Account Management Policy which establishes standards for the classification and treatment of consumer loans, which generally require charge-off after 120 days of delinquency. The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to maximize loan income within an acceptable level of risk. Reporting systems are used to monitor loan originations, loan ratings, concentrations, loan delinquencies, nonperforming and potential problem loans, and other credit quality metrics. The ongoing review of loan portfolio quality and trends by Management and the Credit Risk Oversight Committee support the process for estimating the allowance for credit losses. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable off-balance sheet credit exposures is accounted for as a separate liability included in other liabilities. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of current conditions and forecasts. The methodology for estimating the amount of credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans; and second, a pooled component for expected credit losses for pools of loans that share similar risk characteristics. Loans That Do Not Share Risk Characteristics (Individually Analyzed) Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the liquidation and sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed by ASC 326-20 to measure the expected credit loss under the same approach as those loans where foreclosure is probable. For loans with balances greater than $250,000 the fair value of the collateral is obtained through independent appraisal of the underlying collateral. For loans with balances less than $250,000, the Company has made a policy election to measure expected loss for these individual loans utilizing loss rates for similar loan types. The aforementioned measurement criteria are applied for collateral dependent troubled debt restructurings. Loans That Share Similar Risk Characteristics (Pooled Loans) The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows:  Segment loans into pools according to similar risk characteristics  Develop historical loss rates for each loan pool segment  Incorporate the impact of forecasts  Incorporate the impact of other qualitative factors  Calculate and review pool specific allowance for credit loss estimate Methodology – A discounted cash flow (“DCF”) methodology is utilized to calculate expected cash flows for the life of each individual loan. The discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”) and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. Loans subject to the Company’s risk rating process are further sub-segmented by risk rating in the calculation of PD rates. LGD rates generally reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on observed prepayment rates occurring in the loan portfolio and consideration of forecasted interest rates. Forecast Factors – In developing loss rates, adjustments are made to incorporate the impact of forecasted conditions. Certain assumptions are also applied, including the length of the forecast and reversion periods. The forecast period is the period within which management is able to make a reasonable and supportable assessment of future conditions. The reversion period is the period beyond which management believes it can develop a reasonable and supportable forecast, and bridges the gap between the forecast period and the use of historical default and loss rates. The remainder period reflects the remaining life of the loan. The length of the forecast and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions and may vary by loan pool. For purposes of developing a reasonable and supportable assessment of future conditions, management utilizes established industry and economic data points and sources, including the Federal Open Market Committee forecast, with the forecasted unemployment rate being a significant factor. PD rates for the forecast period will be adjusted accordingly based on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. Reversion period PD rates reflect the difference between forecast and remainder period PD rates closed using a straight-line adjustment over the reversion period. Qualitative Factors – Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These basis point adjustments are based on management’s assessment of trends and conditions that impact credit risk and resulting loan losses, more specifically internal and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans, loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of natural disasters. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current outstanding loan balances by segment. Off-balance sheet credit exposures are identified and classified in the same categories as the allowance for credit losses with similar risk characteristics that have been previously mentioned. Mortgage Banking Activities Mortgage Loans Held for Sale and Revenue Recognition Mortgage loans held for sale (“HFS”) are carried at fair value under the fair value option with changes in fair value recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. The fair value of mortgage loans held for sale committed to investors is calculated using observable market information such as the investor commitment, assignment of trade (AOT) or other mandatory delivery commitment prices. The Company bases loans committed to Agency investors based on the Agency’s quoted mortgage backed security (MBS) prices. The fair value of mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices. If no such quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as MBS prices, adjusted for the specific attributes of that loan, which would be used by other market participants. Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and are recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. Sales proceeds reflect the cash received from investors through the sale of the loan and servicing release premium. If the related mortgage servicing right (MSR) is sold servicing retained, the MSR addition is recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. Gain on sale of mortgage loans held for sale also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans held for sale, and the realized and unrealized gains and losses from derivative instruments. Mortgage loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through either an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific assets. The Company typically considers the above criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser. Derivative Instruments (IRLC/Forward Commitments) The Company holds and issues derivative financial instruments such as interest rate lock commitments (IRLCs) and other forward sale commitments. IRLCs are subject to price risk primarily related to fluctuations in market interest rates. To hedge the interest rate risk on certain IRLCs, the Company uses forward sale commitments, such as to-be-announced securities (TBAs) or mandatory delivery commitments with investors. Management expects these forward sale commitments to experience changes in fair value opposite to the changes in fair value of the IRLCs thereby reducing earnings volatility. Forward sale commitments are also used to hedge the interest rate risk on mortgage loans held for sale that are not committed to investors and still subject to price risk. If the mandatory delivery commitments are not fulfilled, the Company pays a pair-off fee. Best effort forward sale commitments are also executed with investors, whereby certain loans are locked with a borrower and simultaneously committed to an investor at a fixed price. If the best effort IRLC does not fund, there is no obligation to fulfill the investor commitment. The Company considers various factors and strategies in determining what portion of the IRLCs and uncommitted mortgage loans held for sale to economically hedge. All derivative instruments are recognized as other assets or other liabilities on the consolidated statements of financial condition at their fair value. Changes in the fair value of the derivative instruments are recognized in gain on sale of mortgage loans held for sale on the consolidated statements of income in the period in which they occur. Gains and losses resulting from the pairing-out of forward sale commitments are recognized in gain on sale of mortgage loans held for sale on the consolidated statements of income. The Company accounts for all derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting. Mortgage Servicing Rights (“MSRs”) and Revenue Recognition The Company sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Upon sale, an MSR asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure any class of servicing assets under the fair value measurement method, the Company follows the amortization method. MSRs are amortized to noninterest income (other income) in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and included in other assets, net, on the consolidated statements of financial condition. The Company periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries. Derivative/Hedging Activities At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("standalone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related market value of investment securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses. June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Market Amortized Unrealized Unrealized Market Cost Gains Losses Value Cost Gain Losses Value Available for Sale U.S. Government Treasury $ 158,600 $ 2,167 $ - $ 160,767 $ 231,996 $ 849 $ 67 $ 232,778 U.S. Government Agency 163,658 2,890 31 166,517 155,706 697 325 156,078 States and Political Subdivisions 5,451 122 - 5,573 6,310 9 - 6,319 Mortgage-Backed Securities 488 57 - 545 693 80 - 773 Equity Securities (1) 7,778 - - 7,778 7,653 - - 7,653 Total $ 335,975 $ 5,236 $ 31 $ 341,180 $ 402,358 $ 1,635 $ 392 $ 403,601 Held to Maturity U.S. Government Treasury $ 20,017 $ 119 $ - $ 20,136 $ 20,036 $ 15 $ 9 $ 20,042 States and Political Subdivisions - - - - 1,376 - - 1,376 Mortgage-Backed Securities 212,161 6,202 - 218,363 218,127 2,064 180 220,011 Total $ 232,178 $ 6,321 $ - $ 238,499 $ 239,539 $ 2,079 $ 189 $ 241,429 Total Investment Securities $ 568,153 $ 11,557 $ 31 $ 579,679 $ 641,897 $ 3,714 $ 581 $ 645,030 (1) Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded at cost of $ 3.0 million and $ 4.8 million, respectively, at June 30, 2020 and includes Federal Home Loan Bank and Federal Reserve Bank stock recorded at cost of $ 2.9 million and $ 4.8 million, respectively, at December 31, 2019. Securities with an amortized cost of $ 262.0 million and $ 353.8 million at June 30, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes. The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required to own capital stock in the FHLB based generally upon the balances of residential and commercial real estate loans and FHLB advances. FHLB stock, which is included in equity securities, is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted market value; however, redemption of this stock has historically been at par value. As a member of the Federal Reserve Bank of Atlanta, the Bank is required to maintain stock in the Federal Reserve Bank of Atlanta based on a specified ratio relative to the Bank’s capital. Federal Reserve Bank stock is carried at cost. Maturity Distribution . At June 30, 2020, the Company's investment securities had the following maturity distribution based on contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government agency securities are shown separately because they are not due at a certain maturity date. Available for Sale Held to Maturity (Dollars in Thousands) Amortized Cost Market Value Amortized Cost Market Value Due in one year or less $ 120,988 $ 122,200 $ 20,017 $ 20,136 Due after one year through five years 43,063 44,140 - - Mortgage-Backed Securities 488 545 212,161 218,363 U.S. Government Agency 163,658 166,517 - - Equity Securities 7,778 7,778 - - Total $ 335,975 $ 341,180 $ 232,178 $ 238,499 Unrealized Losses on Investment Securities. The following table summarizes the available for sale investment securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position: Less Than Greater Than 12 Months 12 Months Total Market Unrealized Market Unrealized Market Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses June 30, 2020 Available for Sale U.S. Government Agency $ 6,168 $ 24 $ 2,734 $ 7 $ 8,902 $ 31 Total $ 6,168 $ 24 $ 2,734 $ 7 $ 8,902 $ 31 December 31, 2019 Available for Sale U.S. Government Treasury $ 9,955 $ - $ 93,310 $ 67 $ 103,265 $ 67 U.S. Government Agency 36,361 244 17,364 81 53,725 325 States and Political Subdivisions 578 - - - 578 - Mortgage-Backed Securities 8 - - - 8 - Total $ 46,902 $ 244 $ 110,674 $ 148 $ 157,576 $ 392 At June 30, 2020, there were 18 available-for-sale (“AFS”) positions with unrealized losses totaling $ 31,000. All of these positions were U.S. government agency and mortgage-backed securities issued by U.S. government sponsored entities. Because the declines in the market value of these securities were attributable to changes in interest rates and not credit quality, and because the Company had the ability and intent to hold these investments until there is a recovery in fair value, which may be at maturity, the Company did not record any allowance for credit losses on any investment securities at June 30, 2020. Additionally, ne of the AFS or held-to-maturity securities held by the Company were past due or in nonaccrual status at June 30, 2020. Credit Quality Indicators The Company monitors the credit quality of its investment securities through various risk management procedures, including the monitoring of credit ratings. A majority of the debt securities in the Company’s investment portfolio were issued by a U.S. government entity or agency and are either explicitly or implicitly guaranteed by the U.S. government. The Company considers the long history of no credit losses on these securities indicates that the expectation of nonpayment of the amortized cost basis is zero, even if the U.S. government were to technically default. Further, certain municipal securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. Therefore, for the aforementioned securities, the Company does not assess or record expected credit losses due to the zero loss assumption. The Company monitors the credit quality of its municipal securities portfolio via credit ratings which are updated on a quarterly basis. On a quarterly basis, municipal securities in an unrealized loss position are evaluated to determine if the loss is attributable to credit related factors and if an allowance for credit loss is needed.

LOANS HELD FOR INVESTMENT AND A

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES	6 Months Ended
	Jun. 30, 2020
Loans Held For Investment And Allowance For Credit Losses [Abstract]
LOANS, NET	NOTE 3 – LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES Loan Portfolio Composition . The composition of the loan portfolio was as follows: (Dollars in Thousands) June 30, 2020 December 31, 2019 Commercial, Financial and Agricultural $ 421,270 $ 255,365 Real Estate – Construction 117,794 115,018 Real Estate – Commercial Mortgage 662,434 625,556 Real Estate – Residential (1) 358,714 361,450 Real Estate – Home Equity 194,479 197,360 Consumer (2) 267,486 281,180 Loans, Net of Unearned Income $ 2,022,177 $ 1,835,929 (1) Includes loans in process with outstanding balances of $ 5.7 million and $ 8.3 million at June 30, 2020 and December 31, 2019, respectively. (2) Includes overdraft balances of $ 1.1 million and $ 1.6 million at June 30, 2020 and December 31, 2019, respectively. Net deferred fees, which include premiums on purchased loans, included in loans were $ 2.3 million at June 30, 2020 and net deferred costs were $ 1.8 million at December 31, 2019. Accrued interest receivable on loans which is excluded from amortized cost totaled $ 8.1 million at June 30, 2020 and $ 5.5 million at December 31, 2019, and is reported separately in Other Assets. The Company has pledged a blanket floating lien on all 1-4 family residential mortgage loans, commercial real estate mortgage loans, and home equity loans to support available borrowing capacity at the FHLB and has pledged a blanket floating lien on all consumer loans, commercial loans, and construction loans to support available borrowing capacity at the Federal Reserve Bank of Atlanta. Loan Purchases . The Company will periodically purchase newly originated 1-4 family real estate secured adjustable rate loans from Capital City Home Loans, a related party effective on March 1, 2020 (see Note 1). Loan purchases totaled $ 18.4 million for the six month period ended June 30, 2020, and were not credit impaired. Allowance for Credit Losses . The methodology for estimating the amount of credit losses reported in the allowance for credit losses (“ACL”) has two basic components: first, an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans; and second, a pooled component for expected credit losses for pools of loans that share similar risk characteristics. This methodology is discussed further in Note 1 – Business and Basis of Presentation/Significant Accounting Policies. The following table details the activity in the allowance for credit losses by portfolio segment. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Commercial, Real Estate Financial, Real Estate Commercial Real Estate Real Estate (Dollars in Thousands) Agricultural Construction Mortgage Residential Home Equity Consumer Total Three Months Ended June 30, 2020 Beginning Balance $ 2,247 $ 1,239 $ 5,828 $ 6,005 $ 2,701 $ 3,063 $ 21,083 Provision for Credit Losses 333 716 742 ( 615) 40 399 1,615 Charge-Offs ( 186) - - ( 1) ( 52) ( 1,175) ( 1,414) Recoveries 74 - 70 51 64 914 1,173 Net Charge-Offs ( 112) - 70 50 12 ( 261) ( 241) Ending Balance $ 2,468 $ 1,955 $ 6,640 $ 5,440 $ 2,753 $ 3,201 $ 22,457 Six Months Ended June 30, 2020 Beginning Balance $ 1,675 $ 370 $ 3,416 $ 3,128 $ 2,224 $ 3,092 $ 13,905 Impact of Adopting ASC 326 488 302 1,458 1,243 374 ( 596) 3,269 Provision for Credit Losses 739 1,283 1,516 1,089 141 1,837 6,605 Charge-Offs ( 548) - ( 11) ( 111) ( 83) ( 2,741) ( 3,494) Recoveries 114 - 261 91 97 1,609 2,172 Net Charge-Offs ( 434) - 250 ( 20) 14 ( 1,132) ( 1,322) Ending Balance $ 2,468 $ 1,955 $ 6,640 $ 5,440 $ 2,753 $ 3,201 $ 22,457 Three Months Ended June 30, 2019 Beginning Balance $ 1,630 $ 381 $ 3,993 $ 3,186 $ 2,261 $ 2,669 $ 14,120 Provision for Credit Losses 195 140 ( 204) ( 134) 107 542 646 Charge-Offs ( 235) - - ( 65) ( 45) ( 520) ( 865) Recoveries 58 - 100 223 60 251 692 Net Charge-Offs ( 177) - 100 158 15 ( 269) ( 173) Ending Balance $ 1,648 $ 521 $ 3,889 $ 3,210 $ 2,383 $ 2,942 $ 14,593 Six Months Ended June 30, 2019 Beginning Balance $ 1,434 $ 280 $ 4,181 $ 3,400 $ 2,301 $ 2,614 $ 14,210 Provision for Credit Losses 412 241 ( 307) ( 128) 87 1,108 1,413 Charge-Offs ( 330) - ( 155) ( 329) ( 97) ( 1,315) ( 2,226) Recoveries 132 - 170 267 92 535 1,196 Net Charge-Offs ( 198) - 15 ( 62) ( 5) ( 780) ( 1,030) Ending Balance $ 1,648 $ 521 $ 3,889 $ 3,210 $ 2,383 $ 2,942 $ 14,593 On January 1, 2020, we adopted ASC 326 and recorded a pre-tax cumulative effect transition adjustment of $ 3.3 million. The adoption of ASC 326 is discussed further in Note 1 – Business and Basis of Presentation/Accounting Standards Updates. For the first six months ended June, 30, 2020, the provision for credit losses totaled $ 6.6 million for held for investment loans and net loan charge-offs totaled $ 1.3 million. See Note 7 – Commitments and Contingencies for information on the provision for credit losses related to off-balance sheet commitments. The additional $ 3.9 million increase in the allowance for credit losses was attributable to an expected decline in economic conditions, primarily a higher rate of unemployment due to the COVID-19 pandemic and its effect on rates of default. Three unemployment rate forecast scenarios were utilized to estimate probability of default and were weighted based on management’s estimate of probability. The mitigating impact of the unprecedented fiscal stimulus, including direct payments to individuals, increased unemployment benefits, as well as various government sponsored loan programs, was also considered. Nonaccrual Loans . Loans are generally placed on nonaccrual status if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought current or when future payments are reasonably assured. The following table presents the amortized cost basis of loans in nonaccrual status and loans past due over 90 days and still on accrual by class of loans. June 30, 2020 December 31, 2019 Nonaccrual Nonaccrual Total With No 90 + Days Total With No 90 + Days (Dollars in Thousands) Nonaccrual ACL Still Accruing Nonaccrual ACL Still Accruing Commercial, Financial and Agricultural $ 548 $ - $ - $ 446 $ - $ - Real Estate – Construction 146 - - - - - Real Estate – Commercial Mortgage 2,580 1,789 - 1,434 958 - Real Estate – Residential 2,400 1,516 - 1,392 227 - Real Estate – Home Equity 1,010 - - 797 - - Consumer 282 - - 403 - - Total Nonaccrual Loans $ 6,966 $ 3,305 $ - $ 4,472 $ 1,185 $ - The Company recognized $ 10,000 of interest income on nonaccrual loans for the six months ended June 30, 2020. Collateral Dependent Loans. The following table presents the amortized cost basis of collateral-dependent loans at June 30, 2020. June 30, 2020 Real Estate Non Real Estate (Dollars in Thousands) Secured Secured Commercial, Financial and Agricultural $ 106 $ - Real Estate - Commercial Mortgage 4,939 - Real Estate - Residential 2,358 - Real Estate - Home Equity 429 - Consumer - - Total $ 7,832 $ - A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the sale or operation of the underlying collateral. The Bank’s collateral dependent loan portfolio is comprised primarily of real estate secured loans, collateralized by either residential or commercial collateral types. The loans are carried at fair value based on current values determined by either independent appraisals or internal evaluations, adjusted for selling costs or other amounts to be deducted when estimating expected net sales proceeds. Loan Portfolio Aging. A loan is defined as a past due loan when one full payment is past due or a contractual maturity is over 30 days past due (“DPD”). The following table presents the aging of the amortized cost basis in accruing past due loans by class of loans. 30-59 60-89 90 + Total Total Total (Dollars in Thousands) DPD DPD DPD Past Due Current Loans (1) June 30, 2020 Commercial, Financial and Agricultural $ 165 $ 220 $ - $ 385 $ 420,337 $ 421,270 Real Estate – Construction - 130 - 130 117,518 117,794 Real Estate – Commercial Mortgage 83 - - 83 659,771 662,434 Real Estate – Residential 143 583 - 726 355,588 358,714 Real Estate – Home Equity 122 26 - 148 193,321 194,479 Consumer 1,110 366 - 1,476 265,728 267,486 Total Loans $ 1,623 $ 1,325 $ - $ 2,948 $ 2,012,263 $ 2,022,177 December 31, 2019 Commercial, Financial and Agricultural $ 489 $ 191 $ - $ 680 $ 254,239 $ 255,365 Real Estate – Construction 300 10 - 310 114,708 115,018 Real Estate – Commercial Mortgage 148 84 - 232 623,890 625,556 Real Estate – Residential 629 196 - 825 359,233 361,450 Real Estate – Home Equity 155 20 - 175 196,388 197,360 Consumer 2,000 649 - 2,649 278,128 281,180 Total Loans $ 3,721 $ 1,150 $ - $ 4,871 $ 1,826,586 $ 1,835,929 (1) 7.0.0 million and $ 4.5 million at June 30, 2020 and December 31, 2019, respectively. Residential Real Estate Loans In Process of Foreclosure . At June 30, 2020 and December 31, 2019, the Company had $ 1.3 million and $ 0.6 million, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process. Troubled Debt Restructurings (“TDRs”) . TDRs are loans in which the borrower is experiencing financial difficulty and the Company has granted an economic concession to the borrower that it would not otherwise consider. In these instances, as part of a work-out alternative, the Company will make concessions including the extension of the loan term, a principal moratorium, a reduction in the interest rate, or a combination thereof. The impact of the TDR modifications and defaults are factored into the allowance for credit losses on a loan-by-loan basis as all TDRs are, by definition, impaired loans. Thus, specific reserves are established based upon the results of either a discounted cash flow analysis or the underlying collateral value, if the loan is deemed to be collateral dependent. A TDR classification can be removed if the borrower’s financial condition improves such that the borrower is no longer in financial difficulty, the loan has not had any forgiveness of principal or interest, and the loan is subsequently refinanced or restructured at market terms and qualifies as a new loan. At June 30, 2020, the Company had $ 16.0 million in TDRs, of which $ 15.1 million were performing in accordance with the modified terms. At December 31, 2019 the Company had $ 17.6 million in TDRs, of which $ 16.9 million were performing in accordance with modified terms. For TDRs, the Company estimated $ 1.0 million and $ 1.5 million of credit loss reserves at June 30, 2020 and December 31, 2019, respectively. The modifications made to TDRs involved either an extension of the loan term, a principal moratorium, a reduction in the interest rate, or a combination thereof. For the three months ended June 30, 2020, there were two loans modified with a recorded investment totaling $ 34,000. For the three months ended June 30, 2019, there was one loan modified with a recorded investment of $ 0.1 million. For the six months period ended June 30, 2020, there were three loans modified with a recorded investment totaling $ 0.2 million. For the six months period ended June 30, 2019, there were three loans modified with a recorded investment totaling $ 0.2 million. The financial impact of these modifications was not material. For the three months ended June 30, 2020, there were no loans classified as TDRs, for which there was a payment default and the loans were modified within the 12 months prior to default. For the six months ended June 30, 2020, there were two loans totaling $ 0.1 million classified as TDRs, for which there was a payment default and the loans were modified within the 12 months prior to default. For the three and six months ended June 30, 2019, there were no loans classified as TDRs, for which there was a payment default and the loans were modified within the 12 months prior to default . Credit Risk Management . The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to maximize loan income within an acceptable level of risk. Management and the Board of Directors review and approve these policies and procedures on a regular basis (at least annually). Reporting systems are used to monitor loan originations, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. Management and the Credit Risk Oversight Committee periodically review our lines of business to monitor asset quality trends and the appropriateness of credit policies. In addition, total borrower exposure limits are established and concentration risk is monitored. As part of this process, the overall composition of the portfolio is reviewed to gauge diversification of risk, client concentrations, industry group, loan type, geographic area, or other relevant classifications of loans. Specific segments of the loan portfolio are monitored and reported to the Board on a quarterly basis and have strategic plans in place to supplement Board approved credit policies governing exposure limits and underwriting standards. Detailed below are the types of loans within the Company’s loan portfolio and risk characteristics unique to each. Commercial, Financial, and Agricultural – Loans in this category are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral and personal or other guarantees. Lending policy establishes debt service coverage ratio limits that require a borrower’s cash flow to be sufficient to cover principal and interest payments on all new and existing debt. The majority of these loans are secured by the assets being financed or other business assets such as accounts receivable, inventory, or equipment. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy guidelines. Real Estate Construction – Loans in this category consist of short-term construction loans, revolving and non-revolving credit lines and construction/permanent loans made to individuals and investors to finance the acquisition, development, construction or rehabilitation of real property. These loans are primarily made based on identified cash flows of the borrower or project and generally secured by the property being financed, including 1-4 family residential properties and commercial properties that are either owner-occupied or investment in nature. These properties may include either vacant or improved property. Construction loans are generally based upon estimates of costs and value associated with the completed project. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy guidelines. The disbursement of funds for construction loans is made in relation to the progress of the project and as such these loans are closely monitored by on-site inspections. Real Estate Commercial Mortgage – Loans in this category consists of commercial mortgage loans secured by property that is either owner-occupied or investment in nature. These loans are primarily made based on identified cash flows of the borrower or project with consideration given to underlying real estate collateral and personal guarantees. Lending policy establishes debt service coverage ratios and loan to value ratios specific to the property type. Collateral values are determined based upon third party appraisals and evaluations. Real Estate Residential – Residential mortgage loans held in the Company’s loan portfolio are made to borrowers that demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current income, employment status, current assets, and other financial resources, credit history, and the value of the collateral. Collateral consists of mortgage liens on 1-4 family residential properties. Collateral values are determined based upon third party appraisals and evaluations. The Company does not originate sub-prime loans. Real Estate Home Equity – Home equity loans and lines are made to qualified individuals for legitimate purposes generally secured by senior or junior mortgage liens on owner-occupied 1-4 family homes or vacation homes. Borrower qualifications include favorable credit history combined with supportive income and debt ratio requirements and combined loan to value ratios within established policy guidelines. Collateral values are determined based upon third party appraisals and evaluations. Consumer Loans – This loan portfolio includes personal installment loans, direct and indirect automobile financing, and overdraft lines of credit. The majority of the consumer loan portfolio consists of indirect and direct automobile loans. Lending policy establishes maximum debt to income ratios, minimum credit scores, and includes guidelines for verification of applicants’ income and receipt of credit reports. Credit Quality Indicators . As part of the ongoing monitoring of the Company’s loan portfolio quality, management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment performance, credit documentation, and current economic and market trends, among other factors. Risk ratings are assigned to each loan and revised as needed through established monitoring procedures for individual loan relationships over a predetermined amount and review of smaller balance homogenous loan pools. The Company uses the definitions noted below for categorizing and managing its criticized loans. Loans categorized as “Pass” do not meet the criteria set forth below and are not considered criticized. Special Mention – Loans in this category are presently protected from loss, but weaknesses are apparent which, if not corrected, could cause future problems. Loans in this category may not meet required underwriting criteria and have no mitigating factors. More than the ordinary amount of attention is warranted for these loans. Substandard – Loans in this category exhibit well-defined weaknesses that would typically bring normal repayment into jeopardy. These loans are no longer adequately protected due to well-defined weaknesses that affect the repayment capacity of the borrower. The possibility of loss is much more evident and above average supervision is required for these loans. Doubtful – Loans in this category have all the weaknesses inherent in a loan categorized as Substandard, with the characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Performing/Nonperforming – Loans within certain homogenous loan pools (home equity and consumer) are not individually reviewed, but are monitored for credit quality via the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table summarizes gross loans held for investment by years of origination and internally assigned credit risk ratings (refer to Credit Risk Management section for detail on risk rating system). Term Loans by Origination Year Revolving (Dollars in Thousands) 2020 2019 2018 2017 2016 Prior Loans Total As of June 30, 2020 Commercial, Financial, Agriculture: Pass $ 214,844 $ 54,639 $ 49,571 $ 19,873 $ 16,582 $ 14,016 $ 50,597 $ 420,122 Special Mention - 4 61 9 - 64 - 138 Substandard - 11 553 312 39 92 3 1,010 Total $ 214,844 $ 54,654 $ 50,185 $ 20,194 $ 16,621 $ 14,172 $ 50,600 $ 421,270 Real Estate - Construction: Pass $ 27,315 $ 73,360 $ 11,162 $ 2,148 $ - $ - $ 3,533 $ 117,518 Substandard - 276 - - - - - 276 Total $ 27,315 $ 73,636 $ 11,162 $ 2,148 $ - $ - $ 3,533 $ 117,794 Real Estate - Commercial Mortgage: Pass $ 89,447 $ 118,464 $ 148,746 $ 99,444 $ 53,748 $ 106,278 $ 21,014 $ 637,141 Special Mention 6,116 123 5,141 216 - 6,494 - 18,090 Substandard 154 279 295 2,853 31 3,097 494 7,203 Total $ 95,717 $ 118,866 $ 154,182 $ 102,513 $ 53,779 $ 115,869 $ 21,508 $ 662,434 Real Estate - Residential: Pass $ 53,539 $ 82,903 $ 57,856 $ 49,232 $ 23,327 $ 77,875 $ 6,800 $ 351,532 Special Mention 143 26 128 178 96 345 - 916 Substandard - 1,126 1,118 563 1,005 2,369 85 6,266 Total $ 53,682 $ 84,055 $ 59,102 $ 49,973 $ 24,428 $ 80,589 $ 6,885 $ 358,714 Real Estate - Home Equity: Performing $ 1,558 $ 378 $ 252 $ 780 $ 200 $ 2,780 $ 187,703 $ 193,651 Nonperforming - 20 25 81 - 24 678 828 Total $ 1,558 $ 398 $ 277 $ 861 $ 200 $ 2,804 $ 188,381 $ 194,479 Consumer: Performing $ 46,790 $ 89,192 $ 67,729 $ 35,130 $ 16,947 $ 6,200 $ 5,215 $ 267,203 Nonperforming - 105 138 - 20 20 - 283 Total $ 46,790 $ 89,297 $ 67,867 $ 35,130 $ 16,967 $ 6,220 $ 5,215 $ 267,486

MORTGAGE BANKING ACTIVITIES

MORTGAGE BANKING ACTIVITIES	6 Months Ended
	Jun. 30, 2020
Mortgage Banking Activities [Abstract]
Mortgage Banking Activities [Text Block]	NOTE 4 – MORTGAGE BANKING ACTIVITIES Pursuant to the Brand acquisition on March 1, 2020, the Company’s mortgage banking activities at its subsidiary Capital City Homes Loans have expanded to include mandatory delivery loan sales, forward sales contracts used to manage residential loan pipeline price risk, utilization of warehouse lines to fund secondary market residential loan closings, and residential mortgage servicing. Information provided below reflects CCHL activities post acquisition for the period March 1, 2020 to June 30, 2020 and CCB legacy residential real estate activities for the period January 1, 2020 to March 1, 2020. Residential Mortgage Loan Production The Company originates, markets, and services conventional and government-sponsored residential mortgage loans. Generally, conforming fixed rate residential mortgage loans are held for sale in the secondary market and non-conforming and adjustable-rate residential mortgage loans may be held for investment. The volume of residential mortgage loans originated for sale and secondary market prices are the primary drivers of origination revenue. Residential mortgage loan commitments are generally outstanding for 30 to 90 days, which represents the typical period from commitment to originate a residential mortgage loan to when the closed loan is sold to an investor. Residential mortgage loan commitments are subject to both credit and price risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Price risk is primarily related to interest rate fluctuations and is partially managed through forward sales of residential mortgage-backed securities (primarily to-be announced securities, or TBAs) or mandatory delivery commitments with investors. The unpaid principal balance of residential mortgage loans held for sale, notional amounts of derivative contracts related to residential mortgage loan commitments and forward contract sales and their related fair values are set- forth below . June 30, 2020 Unpaid Principal (Dollars in Thousands) Balance/Notional Fair Value Residential Mortgage Loans Held for Sale $ 73,498 $ 76,610 Residential Mortgage Loan Commitments ("IRLCs") (1) 154,759 5,342 Forward Sales Contracts (2) 178,500 ( 963) $ 80,989 (1) Recorded in other assets at fair value (2) Recorded in other liabilities at fair value Residential mortgage loans held for sale that were 90 days or more outstanding or on nonaccrual totaled $ 0.7 million at June 30, 2020. Mortgage banking revenue was as follows: Three Months Ended Six Months Ended (Dollars in Thousands) June 30, 2020 June 30, 2020 Net Realized Gains on Sales of Mortgage Loans $ 14,580 $ 17,987 Net Change in Unrealized Gain on Mortgage Loans Held for Sale 1,092 1,830 Net Change in the Fair Value of Mortgage Loan Commitments (IRLCs) 1,487 3,142 Net Change in the Fair Value of Forward Sales Contracts 1,625 231 Pair-Offs on Net Settlement of Forward Sales Contracts ( 3,019) ( 4,395) Mortgage Servicing Rights Additions 2,049 2,049 Total Mortgage Banking Revenues $ 17,814 $ 20,844 Residential Mortgage Servicing The Company may retain the right to service residential mortgage loans sold. The unpaid principal balance of loans serviced for others is the primary driver of servicing revenue. The following represents a summary of mortgage servicing rights. (Dollars in Thousands) June 30, 2020 Number of Residential Mortgage Loans Serviced for Others 1,375 Outstanding Principal Balance of Residential Mortgage Loans Serviced for Others $ 355,778 Weighted Average Interest Rate 3.94% Remaining Contractual Term (in months) 318 Conforming conventional loans serviced by the Company are sold to FNMA on a non-recourse basis, whereby foreclosure losses are generally the responsibility of FNMA and not the Company. The government loans serviced by the Company are secured through GNMA, whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Veterans Administration. At June 30, 2020, the servicing portfolio balance consisted of the following loan types: FNMA ( 53%), GNMA ( 16%), and private investor ( 31%). FNMA and private investor loans are structured as actual/actual payment remittance. Activity in the capitalized mortgage servicing rights for the three month period ended June 30, 2020 was as follows: (Dollars in Thousands) Beginning Balance $ 910 Additions due to loans sold with servicing retained 2,049 Deletions and amortization ( 97) Ending Balance $ 2,862 The Company did not record any permanent impairment losses on mortgage servicing rights for the second quarter of 2020. At June 30, 2020, the key unobservable inputs used in determining the fair value of the Company’s mortgage servicing rights were as follows: Minimum Maximum Discount Rates 11.00% 15.00% Annual prepayment speeds 10.02% 62.88% Cost of Servicing (basis points) 90 110 Changes in residential mortgage interest rates directly affect the prepayment speeds used in valuing the Company’s mortgage servicing rights. A separate third party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults, and other relevant factors. The weighted average annual prepayment speed was 17.04% at June 30, 2020. Warehouse Line Borrowings The Company has the following warehouse lines of credit and master repurchase agreements with various financial institutions at June 30, 2020. Amounts (Dollars in Thousands) Outstanding $ 25 million warehouse line of credit agreement expiring October 2020. Interest is at LIBOR plus 2.25%, with a floor rate of 3.50%. A cash pledge deposit of $ 0.1 million is required by the lender. $ 16,220 $ 50 million master repurchase agreement without defined expiration. Interest is at the LIBOR plus 2.24% to 3.00%. A cash pledge deposit of $ 0.5 million is required by the lender. 27,844 $ 50 million warehouse line of credit agreement expiring in September 2020. Interest is at the LIBOR plus 2.25% 16,663 $ 60,727 Warehouse line borrowings are classified as short-term borrowings. At June 30, 2020, the Company had mortgage loans held for sale pledged as collateral under the above warehouse lines of credit and master repurchase agreements. The above agreements also contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquid assets, maximum debt to net worth ratio and positive net income, as defined in the agreements. The Company was in compliance with all significant debt covenants at June 30, 2020. The Company intends to renew the warehouse lines of credit and master repurchase agreements when they mature. The Company has extended a $ 30 million warehouse line of credit to CCHL, a 51% owned subsidiary entity. Balances and transactions under this line of credit are eliminated in the Company’s consolidated financial statements and thus not included in the total short term borrowings noted on the consolidated statement of financial condition. The balance of this line of credit at June 30, 2020 was $ 10.2 million.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2020
Derivatives [Abstract]
Derivatives	NOTE 5 – DERIVATIVES The Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s subordinated debt. Cash Flow Hedges of Interest Rate Risk Interest rate swaps with notional amounts totaling $ 30 million at June 30, 2020 were designed as a cash flow hedge for subordinated debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate subordinated debt. The following table reflects the cash flow hedges included in the consolidated statements of financial condition at June 30, 2020 Weighted Weighted Weighted Balance Average Average Average Notional Fair Sheet Rate Received Rate Paid Maturity (Dollars in Thousands) Amount Value Location (Floating) (Fixed) (Years) Interest rate swaps related to subordinated debt $ 30,000 $ ( 108) Other Liabilities 2.15% 2.50% 10.0 The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the consolidated statements of income related to the cash flow derivative instruments at June 30, 2020. Amount of Gain Amount of Gain (Loss) Recognized (Loss) Reclassified (Dollars in Thousands) in AOCI Category from AOCI to Income Interest rate swaps related to subordinated debt $ ( 108) Interest Expense $ ( 3) The Company estimates there will be approximately $ 0.1 million reclassified as an increase to interest expense within the next 12 months. At June 30, 2020, the Company has not posted any collateral related to these agreements.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	NOTE 6 – LEASES Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating liabilities, included in other assets and liabilities, respectively, on its consolidated statement of financial condition. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy expense in the consolidated statements of income. The Company’s operating leases primarily relate to banking offices with remaining lease terms from 1 to 30 years. The Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments made in applying the requirements of Topic 842. Operating leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. At June 30, 2020, the operating lease ROU assets and liabilities were $ 6.5 million and $ 7.4 million, respectively. The Company does not have any finance leases or any significant lessor agreements. The table below summarizes our lease expense and other information related to the Company’s operating leases . Three Months Ended Six Months Ended June 30, June 30, (Dollars in Thousands) 2020 2019 2020 2019 Operating lease expense $ 265 $ 81 $ 422 $ 162 Short-term lease expense 154 29 233 63 Total lease expense $ 419 $ 110 $ 655 $ 225 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 263 $ 84 $ 424 $ 169 Right-of-use assets obtained in exchange for new operating lease liabilities - - 5,120 1,860 Weighted-average remaining lease term — operating leases (in years) 15.5 7.2 15.5 7.2 Weighted-average discount rate — operating leases 2.4% 2.9% 2.4% 2.9% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) June 30, 2020 2020 $ 609 2021 1,200 2022 1,052 2023 680 2024 630 2025 and thereafter 4,840 Total $ 9,011 Less: Interest ( 1,624) Present Value of Lease liability $ 7,387 At June 30, 2020, the Company had additional operating lease payments for banking offices (to be constructed) that have not yet commenced of $ 4.8 million based on the initial contract term of 15 years. Payments for the banking office are expected to commence after the construction period ends, which is expected to occur during the second half of 2021. A related party is the lessor in an operating lease with the Company. The Company’s minimum payment is $ 0.2 million annually through 2024, for an aggregate remaining obligation of $ 0.9 million at June 30, 2020.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jun. 30, 2020
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 7 - EMPLOYEE BENEFIT PLANS The Company has a defined benefit pension plan covering substantially all full-time and eligible part-time associates and a Supplemental Executive Retirement Plan (“SERP”) and a Supplemental Executive Retirement Plan II (“SERP II”) covering its executive officers. The defined benefit plan was amended in December 2019 to remove plan eligibility for new associates hired after December 31, 2019. The SERP II was adopted by the Company’s Board on May 21, 2020 and covers certain executive officers that were not covered by the SERP. The components of the net periodic benefit cost for the Company's qualified benefit pension plan were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Service Cost $ 1,457 $ 1,529 $ 2,914 $ 3,057 Interest Cost 1,400 1,545 2,811 3,089 Expected Return on Plan Assets ( 2,748) ( 2,382) ( 5,496) ( 4,764) Prior Service Cost Amortization 4 4 8 8 Net Loss Amortization 974 965 1,985 1,931 Special Termination Charge - - 61 - Net Periodic Benefit Cost $ 1,087 $ 1,661 $ 2,283 $ 3,321 Discount Rate 3.53% 4.43% 3.53% 4.43% Long-term Rate of Return on Assets 7.00% 7.25% 7.00% 7.25% The components of the net periodic benefit cost for the Company's SERP and SERP II were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Service Cost $ 10 $ - $ 10 $ - Interest Cost $ 83 $ 87 $ 155 $ 174 Prior Service Cost Amortization 109 - 109 - Net Loss Amortization 71 190 318 380 Net Periodic Benefit Cost $ 273 $ 277 $ 592 $ 554 Discount Rate 3.16% 4.23% 3.16% 4.23% The service cost component of net periodic benefit cost is reflected in compensation expense in the accompanying statements of income. The other components of net periodic cost are included in “other” within the noninterest expense category in the statements of income.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 - COMMITMENTS AND CONTINGENCIES Lending Commitments . The Company is a party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs of its clients. These financial instruments consist of commitments to extend credit and standby letters of credit. The Company’s maximum exposure to credit loss under standby letters of credit and commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in establishing commitments and issuing letters of credit as it does for on-balance sheet instruments. The amounts associated with the Company’s off-balance sheet obligations were as follows: June 30, 2020 December 31, 2019 (Dollars in Thousands) Fixed Variable Total Fixed Variable Total Commitments to Extend Credit (1) $ 119,458 $ 524,196 $ 643,654 $ 114,903 $ 404,345 $ 519,248 Standby Letters of Credit 6,944 - 6,944 5,783 - 5,783 Total $ 126,402 $ 524,196 $ 650,598 $ 120,686 $ 404,345 $ 525,031 (1) Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments. Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities. In general, management does not anticipate any material losses as a result of participating in these types of transactions. However, any potential losses arising from such transactions are reserved for in the same manner as management reserves for its other credit facilities. For both on- and off-balance sheet financial instruments, the Company requires collateral to support such instruments when it is deemed necessary. The Company evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; real estate; accounts receivable; property, plant and equipment; and inventory. The allowance for credit losses for off-balance sheet credit commitments that are not unconditionally cancellable by the bank totaled $ 1.4 million at June 30, 2020 and $ 0.2 million at December 31, 2019. The allowance is adjusted as a provision for credit loss expense and is recorded in other liabilities. The allowance was increased by $ 0.7 million on January 1, 2020 upon the adoption of ASC 326. The following table shows the activity in the allowance. Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Beginning Balance $ 1,033 $ 160 $ 157 $ 160 Impact of Adoption of ASC 326 - - 658 - Provision for Credit Losses 391 ( 3) 609 ( 3) Ending Balance $ 1,424 $ 157 $ 1,424 $ 157 Contingencies . The Company is a party to lawsuits and claims arising out of the normal course of business. In management's opinion, there are no known pending claims or litigation, the outcome of which would, individually or in the aggregate, have a material effect on the consolidated results of operations, financial position, or cash flows of the Company. Indemnification Obligation . The Company is a member of the Visa U.S.A. network. Visa U.S.A member banks are required to indemnify the Visa U.S.A. network for potential future settlement of certain litigation (the “Covered Litigation”) that relates to several antitrust lawsuits challenging the practices of Visa and MasterCard International. In 2008, the Company, as a member of the Visa U.S.A. network, obtained Class B shares of Visa, Inc. upon its initial public offering. Since its initial public offering, Visa, Inc. has funded a litigation reserve for the Covered Litigation resulting in a reduction in the Class B shares held by the Company. During the first quarter of 2011, the Company sold its remaining Class B shares. Associated with this sale, the Company entered into a swap contract with the purchaser of the shares that requires a payment to the counterparty in the event that Visa, Inc. makes subsequent revisions to the conversion ratio for its Class B shares. Fixed charges included in the swap liability are payable quarterly until the litigation reserve is fully liquidated and at which time the aforementioned swap contract will be terminated. Quarterly fixed payments approximate $ 168,000. Conversion ratio payments and ongoing fixed quarterly charges are reflected in earnings in the period incurred.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 9 – FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:  Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date .  Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from, or corroborated, by market data by correlation or other means .  Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis Securities Available for Sale. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, credit information and the bond’s terms and conditions, among other things. In general, the Company does not purchase securities that have a complicated structure. The Company’s entire portfolio consists of traditional investments, nearly all of which are U.S. Treasury obligations, federal agency bullet or mortgage pass-through securities, or general obligation or revenue-based municipal bonds. Pricing for such instruments is easily obtained. At least annually, the Company will validate prices supplied by the independent pricing service by comparing them to prices obtained from an independent third-party source. Loans Held for Sale . The fair value of residential mortgage loans held for sale based on Level 2 inputs is determined, when possible, using either quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. The Company has elected the fair value option accounting for its held for sale loans. Mortgage Banking Derivative Instruments. The fair values of interest rate lock commitments (“IRLCs”) are derived by valuation models incorporating market pricing for instruments with similar characteristics, commonly referred to as best execution pricing, or investor commitment prices for best effort IRLCs which have unobservable inputs, such as an estimate of the fair value of the servicing rights expected to be recorded upon sale of the loans, net estimated costs to originate the loans, and the pull-through rate, and are therefore classified as Level 3 within the fair value hierarchy. The fair value of forward sale commitments is based on observable market pricing for similar instruments and are therefore classified as Level 2 within the fair value hierarchy. Interest Rate Swap. The Company’s derivative positions are classified as level 2 within the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers. The fair value derivatives are determined using discounted cash flow models. Fair Value Swap . The Company entered into a stand-alone derivative contract with the purchaser of its Visa Class B shares. The valuation represents the amount due and payable to the counterparty based upon the revised share conversion rate, if any, during the period. A summary of fair values for assets and liabilities consisted of the following: Level 1 Level 2 Level 3 Total Fair (Dollars in Thousands) Inputs Inputs Inputs Value June 30, 2020 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 160,767 $ - $ - $ 160,767 U.S. Government Agency - 166,517 - 166,517 States and Political Subdivisions - 5,573 - 5,573 Mortgage-Backed Securities - 545 - 545 Equity Securities - 7,778 - 7,778 Loans Held for Sale - 76,610 - 76,610 Mortgage Banking Derivative Asset - - 5,342 5,342 LIABILITIES: Mortgage Banking Derivative Liability - 963 - 963 Interest Rate Swap Derivative Liability - 108 - 108 December 31, 2019 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 232,778 $ - $ - $ 232,778 U.S. Government Agency - 156,078 - 156,078 States and Political Subdivisions - 6,319 - 6,319 Mortgage-Backed Securities - 773 - 773 Equity Securities - 7,653 - 7,653 Mortgage Banking Activities . The Company had Level 3 issuances and transfers of $ 14.6 million and $ 19.4 million, respectively, for the period March 1, 2020 to June 30, 2020 related to mortgage banking activities. Issuances are valued based on the change in fair value of the underlying mortgage loan from inception of the IRLC to the balance sheet date, adjusted for pull-through rates and costs to originate. IRLCs transferred out of Level 3 represent IRLCs that were funded and moved to mortgage loans held for sale, at fair value. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a non-recurring basis (i.e., the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances). An example would be assets exhibiting evidence of impairment. The following is a description of valuation methodologies used for assets measured on a non-recurring basis. Collateral Dependent Loans . Impairment for collateral dependent loans is measured using the fair value of the collateral less selling costs. The fair value of collateral is determined by an independent valuation or professional appraisal in conformance with banking regulations. Collateral values are estimated using Level 3 inputs due to the volatility in the real estate market, and the judgment and estimation involved in the real estate appraisal process. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. Valuation techniques are consistent with those techniques applied in prior periods. Collateral-dependent loans had a carrying value of $ 7.8 million with a valuation allowance of $ 0.1 million at June 30, 2020 and $ 6.6 million and $ 0.5 million, respectively, at December 31, 2019. Other Real Estate Owned . During the first six months of 2020, certain foreclosed assets, upon initial recognition, were measured and reported at fair value through a charge-off to the allowance for credit losses based on the fair value of the foreclosed asset less estimated cost to sell. The fair value of the foreclosed asset is determined by an independent valuation or professional appraisal in conformance with banking regulations. On an ongoing basis, we obtain updated appraisals on foreclosed assets and realize valuation adjustments as necessary. The fair value of foreclosed assets is estimated using Level 3 inputs due to the judgment and estimation involved in the real estate valuation process. Mortgage Servicing Rights . Residential mortgage loan servicing rights are evaluated for impairment at each reporting period based upon the fair value of the rights as compared to the carrying amount. Fair value is determined by a third party valuation model using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). The fair value is estimated using Level 3 inputs, including a discount rate, weighted average prepayment speed, and the cost of loan servicing. Further detail on the key inputs utilized are provided in Note 4 – Mortgage Banking Activities. At June 30, 2020, there was no valuation allowance for loan servicing rights. Assets and Liabilities Disclosed at Fair Value The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities, for which it is practical to estimate fair value and the following is a description of valuation methodologies used for those assets and liabilities. Cash and Short-Term Investments. The carrying amount of cash and short-term investments is used to approximate fair value, given the short time frame to maturity and as such assets do not present unanticipated credit concerns. Securities Held to Maturity . Securities held to maturity are valued in accordance with the methodology previously noted in this footnote under the caption “Assets and Liabilities Measured at Fair Value on a Recurring Basis – Securities Available for Sale”. Loans. The loan portfolio is segregated into categories and the fair value of each loan category is calculated using present value techniques based upon projected cash flows, estimated discount rates, and incorporates a liquidity discount to meet the objective of “exit price” valuation. Deposits. The fair value of Noninterest Bearing Deposits, NOW Accounts, Money Market Accounts and Savings Accounts are the amounts payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using present value techniques and rates currently offered for deposits of similar remaining maturities. Subordinated Notes Payable. The fair value of each note is calculated using present value techniques, based upon projected cash flows and estimated discount rates as well as rates being offered for similar obligations. Short-Term and Long-Term Borrowings. The fair value of each note is calculated using present value techniques, based upon projected cash flows and estimated discount rates as well as rates being offered for similar debt. A summary of estimated fair values of significant financial instruments consisted of the following: June 30, 2020 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 75,155 $ 75,155 $ - $ - Short-Term Investments 513,273 513,273 - - Investment Securities, Available for Sale 341,180 160,767 180,413 - Investment Securities, Held to Maturity 232,178 20,136 218,363 - Equity Securities (1) 3,588 - 3,588 - Loans Held for Sale 76,610 - 76,610 - Loans, Net of Allowance for Credit Losses 1,999,720 - - 2,006,877 Mortgage Banking Derivative Asset 5,342 - - 5,342 Mortgage Servicing Rights 2,862 - - 2,827 LIABILITIES: Deposits $ 2,954,996 $ - $ 3,063,239 $ - Short-Term Borrowings 63,958 - 63,958 - Subordinated Notes Payable 52,887 - 41,835 - Long-Term Borrowings 5,583 - 5,763 - Mortgage Banking Derivative Liability 963 - 963 - Interest Rate Swap Derivative Liability 108 - 108 - December 31, 2019 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 60,087 $ 60,087 $ - $ - Short-Term Investments 318,336 318,336 - - Investment Securities, Available for Sale 403,601 232,778 170,823 - Investment Securities, Held to Maturity 239,539 20,042 221,387 - Loans Held for Sale 9,509 - 9,509 - Equity Securities (1) 3,591 - 3,591 - Loans, Net of Allowance for Credit Losses 1,822,024 - - 1,804,930 LIABILITIES: Deposits $ 2,645,454 $ - $ 2,644,430 $ - Short-Term Borrowings 6,404 - 6,404 - Subordinated Notes Payable 52,887 - 40,280 - Long-Term Borrowings 6,514 - 6,623 - (1) All non-financial instruments are excluded from the above table. The disclosures also do not include goodwill. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
OTHER COMPREHENSIVE INCOME	NOTE 10 – OTHER COMPREHENSIVE INCOME The amounts allocated to other comprehensive income are presented in the table below. Reclassification adjustments related to securities held for sale are included in net gain (loss) on securities transactions in the accompanying consolidated statements of comprehensive income. For the periods presented, reclassifications adjustments related to securities held for sale was not material. Before Tax Net of Tax (Expense) Tax (Dollars in Thousands) Amount Benefit Amount Three Months Ended June 30, 2020 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 424 $ ( 75) $ 349 Amortization of losses on securities transferred from available for sale to held to maturity 9 ( 2) 7 Total Investment Securities 433 ( 77) 356 Change in net unrealized gain/loss on interest rate swap ( 104) 25 ( 79) Total Other Comprehensive Income $ 329 $ ( 52) $ 277 Six Months Ended June 30, 2020 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 3,962 $ ( 972) $ 2,990 Amortization of losses on securities transferred from available for sale to held to maturity 18 ( 4) 14 Total Investment Securities 3,980 ( 976) 3,004 Change in net unrealized gain/loss on interest rate swap ( 104) 25 ( 79) Total Other Comprehensive Income $ 3,876 $ ( 951) $ 2,925 Before Tax Net of Tax (Expense) Tax (Dollars in Thousands) Amount Benefit Amount Three Months Ended June 30, 2019 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 1,736 $ ( 439) $ 1,297 Amortization of losses on securities transferred from available for sale to held to maturity 11 ( 4) 7 Total Other Comprehensive Income $ 1,747 $ ( 443) $ 1,304 Six Months Ended June 30, 2019 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 2,985 $ ( 756) $ 2,229 Amortization of losses on securities transferred from available for sale to held to maturity 22 ( 6) 16 Total Other Comprehensive Income $ 3,007 $ ( 762) $ 2,245 Accumulated other comprehensive loss was comprised of the following components: Accumulated Securities Other Available Interest Rate Retirement Comprehensive (Dollars in Thousands) for Sale Swap Plans Loss Balance as of January 1, 2020 $ 864 $ - $ ( 29,045) $ ( 28,181) Other comprehensive income during the period 3,004 ( 79) - 2,925 Balance as of June 30, 2020 $ 3,868 $ ( 79) $ ( 29,045) $ ( 25,256) Balance as of January 1, 2019 $ ( 2,008) $ - $ ( 26,807) $ ( 28,815) Other comprehensive income during the period 2,245 - - 2,245 Balance as of June 30, 2019 $ 237 $ - $ ( 26,807) $ ( 26,570)

BUSINESS AND BASIS OF PRESENT_2

BUSINESS AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2020
Business and Basis of Presentation [Abstract]
Nature of Operations	Nature of Operations . Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of banking and banking-related services to individual and corporate clients through its subsidiary, Capital City Bank, with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities.
Basis of Presentation	Basis of Presentation . The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and its wholly owned subsidiary, Capital City Bank (“CCB” or the “Bank”). All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year’s presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated statement of financial condition at December 31, 2019 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019.
Business Combination	Business Combination . On March 1, 2020, CCB completed its acquisition of a 51% membership interest in Brand Mortgage Group , LLC (“Brand”) which is now operated as Capital City Home Loans (“CCHL”). CCHL was consolidated into CCBG’s financial statements effective March 1, 2020. Assets acquired totaled $ 52 million (consisting primarily of loans held for sale) and liabilities assumed totaled $ 42 million (consisting primarily of warehouse line borrowings). The primary purpose of the acquisition was to gain access to an expanded residential mortgage product line-up and investor base (including a mandatory delivery channel for loan sales) and to generate other operational synergies and cost savings. CCB made a $ 7.1 million cash payment for its 51% membership interest and entered into a buyout agreement for the remaining 49% noncontrolling interest resulting in temporary equity with a fair value of $ 7.4 million. Goodwill totaling $ 4.3 million was recorded in connection with this acquisition. Factors that contributed to the purchase price resulting in goodwill include Brand’s strong management team and expertise in the mortgage industry, historical record of earnings, and operational synergies created as part of the strategic alliance.
Adoption of New Accounting Standard	Adoption of New Accounting Standard On January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326-30 provides a new credit loss model for available-for-sale debt securities. The most significant change requires credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities that management does not intend to sell or believes that it is not more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The adoption of ASC 326 (“CECL”) had an impact of $ 4.0 million ($3.3 million increase in the allowance for credit losses and $ 0.7 million increase in the allowance for unfunded loan commitments (liability account)) that was offset by a corresponding decrease in retained earnings of $ 3.1 million and $ 0.9 million increase in deferred tax assets. The increase in the allowance for credit losses required under the ASC 326 generally reflected the impact of reserves calculated over the life of loan, and more specifically higher reserves required for longer duration loan portfolios, and the utilization of a longer historical look-back period in the calculation of loan loss rates (loss given default). Upon analyzing the debt security portfolios, the Company determined that no allowance was required as these debt securities are government guaranteed treasuries or government agency-backed securities for which the risk of loss was deemed minimal. Further, certain municipal debt securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. As Reported Impact of Under Pre-ASC 326 ASC 326 (Dollars in Thousands) ASC 326 Adoption Adoption Loans: Commercial, Financial and Agricultural $ 2,163 $ 1,675 $ 488 Real Estate - Construction 672 370 302 Real Estate - Commercial Mortgage 4,874 3,416 1,458 Real Estate - Residential 4,371 3,128 1,243 Real Estate - Home Equity 2,598 2,224 374 Consumer, Other Loans and Overdrafts 2,496 3,092 ( 596) Allowance for Credit Losses on Loans 17,174 13,905 3,269 Other Liabilities: Allowance for Credit Losses on Off-Balance Sheet Credit Exposures $ 815 $ 157 $ 658 Significant Accounting Policy Changes Upon adoption of ASC 326, the Company revised certain accounting policies for Investment Securities, Loans, and the Allowance for Credit Losses as detailed below. In addition, certain accounting policies were revised upon the acquisition of Brand on March 1, 2020 and are also discussed in further detail below under the Mortgage Banking Activities section.
Investment Securities	Investment Securities Investment securities are classified as held-to-maturity and carried at amortized cost when the Company has the positive intent and ability to hold them until maturity. Investment securities not classified as held-to-maturity or trading securities are classified as available-for-sale and carried at fair value. The Company determines the appropriate classification of securities at the time of purchase. For reporting and risk management purposes, we further segment investment securities by the issuer of the security which correlates to its risk profile: U.S. government treasury, U.S. government agency, state and political subdivisions, and mortgage-backed securities. Certain equity securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are classified as available-for-sale and carried at cost. Interest income includes amortization and accretion of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Securities transferred from available-for-sale to held-to-maturity are recorded at amortized cost plus or minus any unrealized gain or loss at the time of transfer. Any existing unrecognized gain or loss continues to be reported in accumulated other comprehensive income (net of tax) and amortized as an adjustment to interest income over the remaining life of the security. Any existing allowance for credit loss is reversed at the time of transfer. Subsequent to transfer, the allowance for credit losses on the transferred security is evaluated in accordance with the accounting policy for held-to-maturity securities. Additionally, any allowance amounts reversed or established as part of the transfer are presented on a gross basis in the consolidated statement of income. The accrual of interest is generally suspended on securities more than 90 days past due with respect to principal or interest. When a security is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus not included in the estimate of credit losses. Credit losses and changes thereto, are established as an allowance for credit loss through a provision for credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Certain debt securities in the Company’s investment portfolio were issued by a U.S. government entity or agency and are either explicitly or implicitly guaranteed by the U.S. government. The Company considers the long history of no credit losses on these securities indicates that the expectation of nonpayment of the amortized cost basis is zero, even if the U.S. government were to technically default. Further, certain municipal securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. Therefore, for the aforementioned securities, the Company does not assess or record expected credit losses due to the zero loss assumption. Impairment - Available-for-Sale Securities . Unrealized gains on available-for-sale securities are excluded from earnings and reported, net of tax, in other comprehensive income (“OCI”). For available-for-sale securities that are in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale securities that do not meet the aforementioned criteria or have a zero loss assumption, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded through a provision for credit loss expense, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Allowance for Credit Losses - Held-to-Maturity Securities. Management measures expected credit losses on each individual held-to-maturity debt security that has not been deemed to have a zero assumption. Each security that is not deemed to have zero credit losses is individually measured based on net realizable value, or the difference between the discounted value of the expected cash flows, based on the original effective rate, and the recorded amortized basis of the security. To the extent a shortfall is related to credit loss, an allowance for credit loss is recorded through a provision for credit loss expense. Any shortfall related to other noncredit-related factors is recognized in other comprehensive income.
Loans Held for Investment	Loans Held for Investment Loans held for investment (“HFI”) are stated at amortized cost which includes the principal amount outstanding, net premiums and discounts, and net deferred loan fees and costs. Accrued interest receivable on loans is reported in other assets and is not included in the amortized cost basis of loans. Interest income is accrued on the effective yield method based on outstanding principal balances, and includes loan late fees. Fees charged to originate loans and direct loan origination costs are deferred and amortized over the life of the loan as a yield adjustment. The Company defines loans as past due when one full payment is past due or a contractual maturity is over 30 days late. The accrual of interest is generally suspended on loans more than 90 days past due with respect to principal or interest. When a loan is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus a policy election has been made to not include in the estimate of credit losses. Interest income on nonaccrual loans is recognized when the ultimate collectability is no longer considered doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought current or when future payments are reasonably assured. Loan charge-offs on commercial and investor real estate loans are recorded when the facts and circumstances of the individual loan confirm the loan is not fully collectible and the loss is reasonably quantifiable. Factors considered in making these determinations are the borrower’s and any guarantor’s ability and willingness to pay, the status of the account in bankruptcy court (if applicable), and collateral value. Charge-off decisions for consumer loans are dictated by the Federal Financial Institutions Examination Council’s (FFIEC) Uniform Retail Credit Classification and Account Management Policy which establishes standards for the classification and treatment of consumer loans, which generally require charge-off after 120 days of delinquency. The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to maximize loan income within an acceptable level of risk. Reporting systems are used to monitor loan originations, loan ratings, concentrations, loan delinquencies, nonperforming and potential problem loans, and other credit quality metrics. The ongoing review of loan portfolio quality and trends by Management and the Credit Risk Oversight Committee support the process for estimating the allowance for credit losses.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable off-balance sheet credit exposures is accounted for as a separate liability included in other liabilities. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of current conditions and forecasts. The methodology for estimating the amount of credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans; and second, a pooled component for expected credit losses for pools of loans that share similar risk characteristics. Loans That Do Not Share Risk Characteristics (Individually Analyzed) Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the liquidation and sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed by ASC 326-20 to measure the expected credit loss under the same approach as those loans where foreclosure is probable. For loans with balances greater than $250,000 the fair value of the collateral is obtained through independent appraisal of the underlying collateral. For loans with balances less than $250,000, the Company has made a policy election to measure expected loss for these individual loans utilizing loss rates for similar loan types. The aforementioned measurement criteria are applied for collateral dependent troubled debt restructurings. Loans That Share Similar Risk Characteristics (Pooled Loans) The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows:  Segment loans into pools according to similar risk characteristics  Develop historical loss rates for each loan pool segment  Incorporate the impact of forecasts  Incorporate the impact of other qualitative factors  Calculate and review pool specific allowance for credit loss estimate Methodology – A discounted cash flow (“DCF”) methodology is utilized to calculate expected cash flows for the life of each individual loan. The discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”) and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. Loans subject to the Company’s risk rating process are further sub-segmented by risk rating in the calculation of PD rates. LGD rates generally reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on observed prepayment rates occurring in the loan portfolio and consideration of forecasted interest rates. Forecast Factors – In developing loss rates, adjustments are made to incorporate the impact of forecasted conditions. Certain assumptions are also applied, including the length of the forecast and reversion periods. The forecast period is the period within which management is able to make a reasonable and supportable assessment of future conditions. The reversion period is the period beyond which management believes it can develop a reasonable and supportable forecast, and bridges the gap between the forecast period and the use of historical default and loss rates. The remainder period reflects the remaining life of the loan. The length of the forecast and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions and may vary by loan pool. For purposes of developing a reasonable and supportable assessment of future conditions, management utilizes established industry and economic data points and sources, including the Federal Open Market Committee forecast, with the forecasted unemployment rate being a significant factor. PD rates for the forecast period will be adjusted accordingly based on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. Reversion period PD rates reflect the difference between forecast and remainder period PD rates closed using a straight-line adjustment over the reversion period. Qualitative Factors – Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These basis point adjustments are based on management’s assessment of trends and conditions that impact credit risk and resulting loan losses, more specifically internal and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans, loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of natural disasters. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current outstanding loan balances by segment. Off-balance sheet credit exposures are identified and classified in the same categories as the allowance for credit losses with similar risk characteristics that have been previously mentioned.
Mortgage Banking Activities	Mortgage Banking Activities Mortgage Loans Held for Sale and Revenue Recognition Mortgage loans held for sale (“HFS”) are carried at fair value under the fair value option with changes in fair value recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. The fair value of mortgage loans held for sale committed to investors is calculated using observable market information such as the investor commitment, assignment of trade (AOT) or other mandatory delivery commitment prices. The Company bases loans committed to Agency investors based on the Agency’s quoted mortgage backed security (MBS) prices. The fair value of mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices. If no such quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as MBS prices, adjusted for the specific attributes of that loan, which would be used by other market participants. Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and are recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. Sales proceeds reflect the cash received from investors through the sale of the loan and servicing release premium. If the related mortgage servicing right (MSR) is sold servicing retained, the MSR addition is recorded in gain on sale of mortgage loans held for sale on the consolidated statements of income. Gain on sale of mortgage loans held for sale also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans held for sale, and the realized and unrealized gains and losses from derivative instruments. Mortgage loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through either an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific assets. The Company typically considers the above criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser. Derivative Instruments (IRLC/Forward Commitments) The Company holds and issues derivative financial instruments such as interest rate lock commitments (IRLCs) and other forward sale commitments. IRLCs are subject to price risk primarily related to fluctuations in market interest rates. To hedge the interest rate risk on certain IRLCs, the Company uses forward sale commitments, such as to-be-announced securities (TBAs) or mandatory delivery commitments with investors. Management expects these forward sale commitments to experience changes in fair value opposite to the changes in fair value of the IRLCs thereby reducing earnings volatility. Forward sale commitments are also used to hedge the interest rate risk on mortgage loans held for sale that are not committed to investors and still subject to price risk. If the mandatory delivery commitments are not fulfilled, the Company pays a pair-off fee. Best effort forward sale commitments are also executed with investors, whereby certain loans are locked with a borrower and simultaneously committed to an investor at a fixed price. If the best effort IRLC does not fund, there is no obligation to fulfill the investor commitment. The Company considers various factors and strategies in determining what portion of the IRLCs and uncommitted mortgage loans held for sale to economically hedge. All derivative instruments are recognized as other assets or other liabilities on the consolidated statements of financial condition at their fair value. Changes in the fair value of the derivative instruments are recognized in gain on sale of mortgage loans held for sale on the consolidated statements of income in the period in which they occur. Gains and losses resulting from the pairing-out of forward sale commitments are recognized in gain on sale of mortgage loans held for sale on the consolidated statements of income. The Company accounts for all derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting. Mortgage Servicing Rights (“MSRs”) and Revenue Recognition The Company sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Upon sale, an MSR asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure any class of servicing assets under the fair value measurement method, the Company follows the amortization method. MSRs are amortized to noninterest income (other income) in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and included in other assets, net, on the consolidated statements of financial condition. The Company periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall, prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries.
Derivative/Hedging Activities	Derivative/Hedging Activities At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("standalone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods, in which the hedged transactions will affect earnings.
Accounting Standards Updates	Accounting Standards Updates ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation when there is a loss from continuing operations or a gain from other items and the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for the Company January 1, 2021 and is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). ASU 2020-01 clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company on January 1, 2021 and is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2020-02, "Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842)". ASU 2020-02 incorporates SEC SAB 119 (updated from SAB 102) into the Accounting Standards Codification (the "Codification") by aligning SEC recommended policies and procedures with ASC 326. ASU 2020-02 was effective on January 1, 2020 and had no material impact on the Company’s documentation requirements. ASU 2020-03, "Codification Improvements to Financial Instruments". ASU 2020-03 revised a wide variety of topics in the Codification with the intent to make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. ASU 2020-03 was effective immediately upon its release in March 2020 and did not have a material impact on the Company’s consolidated financial statements. ASU 2020-04, "Reference Rate Reform (Topic 848). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or re-measurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. It is anticipated this ASU will simplify any modifications executed between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. The Company is evaluating the impact of this ASU and has not yet determined if the LIBOR transition and this ASU will have material effects on the Company’s business operations and consolidated financial statements.

BUSINESS AND BASIS OF PRESENT_3

BUSINESS AND BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2020
Business and Basis of Presentation [Abstract]
Tablular illustration of the impact of adopting ASC 326	As Reported Impact of Under Pre-ASC 326 ASC 326 (Dollars in Thousands) ASC 326 Adoption Adoption Loans: Commercial, Financial and Agricultural $ 2,163 $ 1,675 $ 488 Real Estate - Construction 672 370 302 Real Estate - Commercial Mortgage 4,874 3,416 1,458 Real Estate - Residential 4,371 3,128 1,243 Real Estate - Home Equity 2,598 2,224 374 Consumer, Other Loans and Overdrafts 2,496 3,092 ( 596) Allowance for Credit Losses on Loans 17,174 13,905 3,269 Other Liabilities: Allowance for Credit Losses on Off-Balance Sheet Credit Exposures $ 815 $ 157 $ 658

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and related market value of investment securities available-for-sale	NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related market value of investment securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses. June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Market Amortized Unrealized Unrealized Market Cost Gains Losses Value Cost Gain Losses Value Available for Sale U.S. Government Treasury $ 158,600 $ 2,167 $ - $ 160,767 $ 231,996 $ 849 $ 67 $ 232,778 U.S. Government Agency 163,658 2,890 31 166,517 155,706 697 325 156,078 States and Political Subdivisions 5,451 122 - 5,573 6,310 9 - 6,319 Mortgage-Backed Securities 488 57 - 545 693 80 - 773 Equity Securities (1) 7,778 - - 7,778 7,653 - - 7,653 Total $ 335,975 $ 5,236 $ 31 $ 341,180 $ 402,358 $ 1,635 $ 392 $ 403,601 Held to Maturity U.S. Government Treasury $ 20,017 $ 119 $ - $ 20,136 $ 20,036 $ 15 $ 9 $ 20,042 States and Political Subdivisions - - - - 1,376 - - 1,376 Mortgage-Backed Securities 212,161 6,202 - 218,363 218,127 2,064 180 220,011 Total $ 232,178 $ 6,321 $ - $ 238,499 $ 239,539 $ 2,079 $ 189 $ 241,429 Total Investment Securities $ 568,153 $ 11,557 $ 31 $ 579,679 $ 641,897 $ 3,714 $ 581 $ 645,030 (1) Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded at cost of $ 3.0 million and $ 4.8 million, respectively, at June 30, 2020 and includes Federal Home Loan Bank and Federal Reserve Bank stock recorded at cost of $ 2.9 million and $ 4.8 million, respectively, at December 31, 2019.
Schedule of investment securities with maturity distribution based on contractual maturities	Available for Sale Held to Maturity (Dollars in Thousands) Amortized Cost Market Value Amortized Cost Market Value Due in one year or less $ 120,988 $ 122,200 $ 20,017 $ 20,136 Due after one year through five years 43,063 44,140 - - Mortgage-Backed Securities 488 545 212,161 218,363 U.S. Government Agency 163,658 166,517 - - Equity Securities 7,778 7,778 - - Total $ 335,975 $ 341,180 $ 232,178 $ 238,499
Schedule of investment securities with continuous unrealized loss position	Less Than Greater Than 12 Months 12 Months Total Market Unrealized Market Unrealized Market Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses June 30, 2020 Available for Sale U.S. Government Agency $ 6,168 $ 24 $ 2,734 $ 7 $ 8,902 $ 31 Total $ 6,168 $ 24 $ 2,734 $ 7 $ 8,902 $ 31 December 31, 2019 Available for Sale U.S. Government Treasury $ 9,955 $ - $ 93,310 $ 67 $ 103,265 $ 67 U.S. Government Agency 36,361 244 17,364 81 53,725 325 States and Political Subdivisions 578 - - - 578 - Mortgage-Backed Securities 8 - - - 8 - Total $ 46,902 $ 244 $ 110,674 $ 148 $ 157,576 $ 392

LOANS HELD FOR INVESTMENT AND_2

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
	Jun. 30, 2020
Loans Held For Investment And Allowance For Credit Losses [Abstract]
Schedule of composition of the loan portfolio	(Dollars in Thousands) June 30, 2020 December 31, 2019 Commercial, Financial and Agricultural $ 421,270 $ 255,365 Real Estate – Construction 117,794 115,018 Real Estate – Commercial Mortgage 662,434 625,556 Real Estate – Residential (1) 358,714 361,450 Real Estate – Home Equity 194,479 197,360 Consumer (2) 267,486 281,180 Loans, Net of Unearned Income $ 2,022,177 $ 1,835,929 (1) Includes loans in process with outstanding balances of $ 5.7 million and $ 8.3 million at June 30, 2020 and December 31, 2019, respectively. (2) Includes overdraft balances of $ 1.1 million and $ 1.6 million at June 30, 2020 and December 31, 2019, respectively.
Schedule of activity in the allowance for loan losses by portfolio class	Commercial, Real Estate Financial, Real Estate Commercial Real Estate Real Estate (Dollars in Thousands) Agricultural Construction Mortgage Residential Home Equity Consumer Total Three Months Ended June 30, 2020 Beginning Balance $ 2,247 $ 1,239 $ 5,828 $ 6,005 $ 2,701 $ 3,063 $ 21,083 Provision for Credit Losses 333 716 742 ( 615) 40 399 1,615 Charge-Offs ( 186) - - ( 1) ( 52) ( 1,175) ( 1,414) Recoveries 74 - 70 51 64 914 1,173 Net Charge-Offs ( 112) - 70 50 12 ( 261) ( 241) Ending Balance $ 2,468 $ 1,955 $ 6,640 $ 5,440 $ 2,753 $ 3,201 $ 22,457 Six Months Ended June 30, 2020 Beginning Balance $ 1,675 $ 370 $ 3,416 $ 3,128 $ 2,224 $ 3,092 $ 13,905 Impact of Adopting ASC 326 488 302 1,458 1,243 374 ( 596) 3,269 Provision for Credit Losses 739 1,283 1,516 1,089 141 1,837 6,605 Charge-Offs ( 548) - ( 11) ( 111) ( 83) ( 2,741) ( 3,494) Recoveries 114 - 261 91 97 1,609 2,172 Net Charge-Offs ( 434) - 250 ( 20) 14 ( 1,132) ( 1,322) Ending Balance $ 2,468 $ 1,955 $ 6,640 $ 5,440 $ 2,753 $ 3,201 $ 22,457 Three Months Ended June 30, 2019 Beginning Balance $ 1,630 $ 381 $ 3,993 $ 3,186 $ 2,261 $ 2,669 $ 14,120 Provision for Credit Losses 195 140 ( 204) ( 134) 107 542 646 Charge-Offs ( 235) - - ( 65) ( 45) ( 520) ( 865) Recoveries 58 - 100 223 60 251 692 Net Charge-Offs ( 177) - 100 158 15 ( 269) ( 173) Ending Balance $ 1,648 $ 521 $ 3,889 $ 3,210 $ 2,383 $ 2,942 $ 14,593 Six Months Ended June 30, 2019 Beginning Balance $ 1,434 $ 280 $ 4,181 $ 3,400 $ 2,301 $ 2,614 $ 14,210 Provision for Credit Losses 412 241 ( 307) ( 128) 87 1,108 1,413 Charge-Offs ( 330) - ( 155) ( 329) ( 97) ( 1,315) ( 2,226) Recoveries 132 - 170 267 92 535 1,196 Net Charge-Offs ( 198) - 15 ( 62) ( 5) ( 780) ( 1,030) Ending Balance $ 1,648 $ 521 $ 3,889 $ 3,210 $ 2,383 $ 2,942 $ 14,593
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans	June 30, 2020 December 31, 2019 Nonaccrual Nonaccrual Total With No 90 + Days Total With No 90 + Days (Dollars in Thousands) Nonaccrual ACL Still Accruing Nonaccrual ACL Still Accruing Commercial, Financial and Agricultural $ 548 $ - $ - $ 446 $ - $ - Real Estate – Construction 146 - - - - - Real Estate – Commercial Mortgage 2,580 1,789 - 1,434 958 - Real Estate – Residential 2,400 1,516 - 1,392 227 - Real Estate – Home Equity 1,010 - - 797 - - Consumer 282 - - 403 - - Total Nonaccrual Loans $ 6,966 $ 3,305 $ - $ 4,472 $ 1,185 $ -
Amortized cost basis of collateral-dependent loans	June 30, 2020 Real Estate Non Real Estate (Dollars in Thousands) Secured Secured Commercial, Financial and Agricultural $ 106 $ - Real Estate - Commercial Mortgage 4,939 - Real Estate - Residential 2,358 - Real Estate - Home Equity 429 - Consumer - - Total $ 7,832 $ -
Schedule of aging of the recorded investment in accruing past due loans by class of loans	30-59 60-89 90 + Total Total Total (Dollars in Thousands) DPD DPD DPD Past Due Current Loans (1) June 30, 2020 Commercial, Financial and Agricultural $ 165 $ 220 $ - $ 385 $ 420,337 $ 421,270 Real Estate – Construction - 130 - 130 117,518 117,794 Real Estate – Commercial Mortgage 83 - - 83 659,771 662,434 Real Estate – Residential 143 583 - 726 355,588 358,714 Real Estate – Home Equity 122 26 - 148 193,321 194,479 Consumer 1,110 366 - 1,476 265,728 267,486 Total Loans $ 1,623 $ 1,325 $ - $ 2,948 $ 2,012,263 $ 2,022,177 December 31, 2019 Commercial, Financial and Agricultural $ 489 $ 191 $ - $ 680 $ 254,239 $ 255,365 Real Estate – Construction 300 10 - 310 114,708 115,018 Real Estate – Commercial Mortgage 148 84 - 232 623,890 625,556 Real Estate – Residential 629 196 - 825 359,233 361,450 Real Estate – Home Equity 155 20 - 175 196,388 197,360 Consumer 2,000 649 - 2,649 278,128 281,180 Total Loans $ 3,721 $ 1,150 $ - $ 4,871 $ 1,826,586 $ 1,835,929 (1) 7.0.0 million and $ 4.5 million at June 30, 2020 and December 31, 2019, respectively.
Summary of gross loans held for investment by years of origination	The following table summarizes gross loans held for investment by years of origination and internally assigned credit risk ratings (refer to Credit Risk Management section for detail on risk rating system). Term Loans by Origination Year Revolving (Dollars in Thousands) 2020 2019 2018 2017 2016 Prior Loans Total As of June 30, 2020 Commercial, Financial, Agriculture: Pass $ 214,844 $ 54,639 $ 49,571 $ 19,873 $ 16,582 $ 14,016 $ 50,597 $ 420,122 Special Mention - 4 61 9 - 64 - 138 Substandard - 11 553 312 39 92 3 1,010 Total $ 214,844 $ 54,654 $ 50,185 $ 20,194 $ 16,621 $ 14,172 $ 50,600 $ 421,270 Real Estate - Construction: Pass $ 27,315 $ 73,360 $ 11,162 $ 2,148 $ - $ - $ 3,533 $ 117,518 Substandard - 276 - - - - - 276 Total $ 27,315 $ 73,636 $ 11,162 $ 2,148 $ - $ - $ 3,533 $ 117,794 Real Estate - Commercial Mortgage: Pass $ 89,447 $ 118,464 $ 148,746 $ 99,444 $ 53,748 $ 106,278 $ 21,014 $ 637,141 Special Mention 6,116 123 5,141 216 - 6,494 - 18,090 Substandard 154 279 295 2,853 31 3,097 494 7,203 Total $ 95,717 $ 118,866 $ 154,182 $ 102,513 $ 53,779 $ 115,869 $ 21,508 $ 662,434 Real Estate - Residential: Pass $ 53,539 $ 82,903 $ 57,856 $ 49,232 $ 23,327 $ 77,875 $ 6,800 $ 351,532 Special Mention 143 26 128 178 96 345 - 916 Substandard - 1,126 1,118 563 1,005 2,369 85 6,266 Total $ 53,682 $ 84,055 $ 59,102 $ 49,973 $ 24,428 $ 80,589 $ 6,885 $ 358,714 Real Estate - Home Equity: Performing $ 1,558 $ 378 $ 252 $ 780 $ 200 $ 2,780 $ 187,703 $ 193,651 Nonperforming - 20 25 81 - 24 678 828 Total $ 1,558 $ 398 $ 277 $ 861 $ 200 $ 2,804 $ 188,381 $ 194,479 Consumer: Performing $ 46,790 $ 89,192 $ 67,729 $ 35,130 $ 16,947 $ 6,200 $ 5,215 $ 267,203 Nonperforming - 105 138 - 20 20 - 283 Total $ 46,790 $ 89,297 $ 67,867 $ 35,130 $ 16,967 $ 6,220 $ 5,215 $ 267,486

MORTGAGE BANKING ACTIVITIES (Ta

MORTGAGE BANKING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2020
Mortgage Banking Activities [Abstract]
Residential Mortgage Loan Production	June 30, 2020 Unpaid Principal (Dollars in Thousands) Balance/Notional Fair Value Residential Mortgage Loans Held for Sale $ 73,498 $ 76,610 Residential Mortgage Loan Commitments ("IRLCs") (1) 154,759 5,342 Forward Sales Contracts (2) 178,500 ( 963) $ 80,989 (1) Recorded in other assets at fair value (2) Recorded in other liabilities at fair value
Mortgage banking revenue	Three Months Ended Six Months Ended (Dollars in Thousands) June 30, 2020 June 30, 2020 Net Realized Gains on Sales of Mortgage Loans $ 14,580 $ 17,987 Net Change in Unrealized Gain on Mortgage Loans Held for Sale 1,092 1,830 Net Change in the Fair Value of Mortgage Loan Commitments (IRLCs) 1,487 3,142 Net Change in the Fair Value of Forward Sales Contracts 1,625 231 Pair-Offs on Net Settlement of Forward Sales Contracts ( 3,019) ( 4,395) Mortgage Servicing Rights Additions 2,049 2,049 Total Mortgage Banking Revenues $ 17,814 $ 20,844
Summary of mortgage servicing rights	(Dollars in Thousands) June 30, 2020 Number of Residential Mortgage Loans Serviced for Others 1,375 Outstanding Principal Balance of Residential Mortgage Loans Serviced for Others $ 355,778 Weighted Average Interest Rate 3.94% Remaining Contractual Term (in months) 318
Summary of mortgage servicing rights	(Dollars in Thousands) Beginning Balance $ 910 Additions due to loans sold with servicing retained 2,049 Deletions and amortization ( 97) Ending Balance $ 2,862
Key unobservable inputs used in determining the fair value of mortgage servicing rights	Minimum Maximum Discount Rates 11.00% 15.00% Annual prepayment speeds 10.02% 62.88% Cost of Servicing (basis points) 90 110
Warehouse Line Borrowings	Amounts (Dollars in Thousands) Outstanding $ 25 million warehouse line of credit agreement expiring October 2020. Interest is at LIBOR plus 2.25%, with a floor rate of 3.50%. A cash pledge deposit of $ 0.1 million is required by the lender. $ 16,220 $ 50 million master repurchase agreement without defined expiration. Interest is at the LIBOR plus 2.24% to 3.00%. A cash pledge deposit of $ 0.5 million is required by the lender. 27,844 $ 50 million warehouse line of credit agreement expiring in September 2020. Interest is at the LIBOR plus 2.25% 16,663 $ 60,727

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2020
Derivatives [Abstract]
Cash flow hedges included in the Consolidated Statement of Financial Condition	Weighted Weighted Weighted Balance Average Average Average Notional Fair Sheet Rate Received Rate Paid Maturity (Dollars in Thousands) Amount Value Location (Floating) (Fixed) (Years) Interest rate swaps related to subordinated debt $ 30,000 $ ( 108) Other Liabilities 2.15% 2.50% 10.0
Net gains (losses) recorded in accumulated other comprehensive income	Amount of Gain Amount of Gain (Loss) Recognized (Loss) Reclassified (Dollars in Thousands) in AOCI Category from AOCI to Income Interest rate swaps related to subordinated debt $ ( 108) Interest Expense $ ( 3)

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Summary of lease expense and other information related to operating leases	Three Months Ended Six Months Ended June 30, June 30, (Dollars in Thousands) 2020 2019 2020 2019 Operating lease expense $ 265 $ 81 $ 422 $ 162 Short-term lease expense 154 29 233 63 Total lease expense $ 419 $ 110 $ 655 $ 225 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 263 $ 84 $ 424 $ 169 Right-of-use assets obtained in exchange for new operating lease liabilities - - 5,120 1,860 Weighted-average remaining lease term — operating leases (in years) 15.5 7.2 15.5 7.2 Weighted-average discount rate — operating leases 2.4% 2.9% 2.4% 2.9%
Summary of maturity of remaining lease liabilities	The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) June 30, 2020 2020 $ 609 2021 1,200 2022 1,052 2023 680 2024 630 2025 and thereafter 4,840 Total $ 9,011 Less: Interest ( 1,624) Present Value of Lease liability $ 7,387

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2020
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of Net Benefit Costs	Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Service Cost $ 1,457 $ 1,529 $ 2,914 $ 3,057 Interest Cost 1,400 1,545 2,811 3,089 Expected Return on Plan Assets ( 2,748) ( 2,382) ( 5,496) ( 4,764) Prior Service Cost Amortization 4 4 8 8 Net Loss Amortization 974 965 1,985 1,931 Special Termination Charge - - 61 - Net Periodic Benefit Cost $ 1,087 $ 1,661 $ 2,283 $ 3,321 Discount Rate 3.53% 4.43% 3.53% 4.43% Long-term Rate of Return on Assets 7.00% 7.25% 7.00% 7.25%
Supplemental Executive Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Schedule of Net Benefit Costs	The components of the net periodic benefit cost for the Company's SERP and SERP II were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Service Cost $ 10 $ - $ 10 $ - Interest Cost $ 83 $ 87 $ 155 $ 174 Prior Service Cost Amortization 109 - 109 - Net Loss Amortization 71 190 318 380 Net Periodic Benefit Cost $ 273 $ 277 $ 592 $ 554 Discount Rate 3.16% 4.23% 3.16% 4.23%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of amounts associated with the entities off-balance sheet obligations	June 30, 2020 December 31, 2019 (Dollars in Thousands) Fixed Variable Total Fixed Variable Total Commitments to Extend Credit (1) $ 119,458 $ 524,196 $ 643,654 $ 114,903 $ 404,345 $ 519,248 Standby Letters of Credit 6,944 - 6,944 5,783 - 5,783 Total $ 126,402 $ 524,196 $ 650,598 $ 120,686 $ 404,345 $ 525,031 (1) Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments.
Allowance for credit losses for off-balance sheet credit commitments	Three Months Ended June 30, Six Months Ended June 30, (Dollars in Thousands) 2020 2019 2020 2019 Beginning Balance $ 1,033 $ 160 $ 157 $ 160 Impact of Adoption of ASC 326 - - 658 - Provision for Credit Losses 391 ( 3) 609 ( 3) Ending Balance $ 1,424 $ 157 $ 1,424 $ 157

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis	Level 1 Level 2 Level 3 Total Fair (Dollars in Thousands) Inputs Inputs Inputs Value June 30, 2020 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 160,767 $ - $ - $ 160,767 U.S. Government Agency - 166,517 - 166,517 States and Political Subdivisions - 5,573 - 5,573 Mortgage-Backed Securities - 545 - 545 Equity Securities - 7,778 - 7,778 Loans Held for Sale - 76,610 - 76,610 Mortgage Banking Derivative Asset - - 5,342 5,342 LIABILITIES: Mortgage Banking Derivative Liability - 963 - 963 Interest Rate Swap Derivative Liability - 108 - 108 December 31, 2019 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 232,778 $ - $ - $ 232,778 U.S. Government Agency - 156,078 - 156,078 States and Political Subdivisions - 6,319 - 6,319 Mortgage-Backed Securities - 773 - 773 Equity Securities - 7,653 - 7,653
Schedule of financial instruments with estimated fair values	June 30, 2020 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 75,155 $ 75,155 $ - $ - Short-Term Investments 513,273 513,273 - - Investment Securities, Available for Sale 341,180 160,767 180,413 - Investment Securities, Held to Maturity 232,178 20,136 218,363 - Equity Securities (1) 3,588 - 3,588 - Loans Held for Sale 76,610 - 76,610 - Loans, Net of Allowance for Credit Losses 1,999,720 - - 2,006,877 Mortgage Banking Derivative Asset 5,342 - - 5,342 Mortgage Servicing Rights 2,862 - - 2,827 LIABILITIES: Deposits $ 2,954,996 $ - $ 3,063,239 $ - Short-Term Borrowings 63,958 - 63,958 - Subordinated Notes Payable 52,887 - 41,835 - Long-Term Borrowings 5,583 - 5,763 - Mortgage Banking Derivative Liability 963 - 963 - Interest Rate Swap Derivative Liability 108 - 108 - December 31, 2019 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 60,087 $ 60,087 $ - $ - Short-Term Investments 318,336 318,336 - - Investment Securities, Available for Sale 403,601 232,778 170,823 - Investment Securities, Held to Maturity 239,539 20,042 221,387 - Loans Held for Sale 9,509 - 9,509 - Equity Securities (1) 3,591 - 3,591 - Loans, Net of Allowance for Credit Losses 1,822,024 - - 1,804,930 LIABILITIES: Deposits $ 2,645,454 $ - $ 2,644,430 $ - Short-Term Borrowings 6,404 - 6,404 - Subordinated Notes Payable 52,887 - 40,280 - Long-Term Borrowings 6,514 - 6,623 - (1)

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Schedule of other comprehensive income loss	Before Tax Net of Tax (Expense) Tax (Dollars in Thousands) Amount Benefit Amount Three Months Ended June 30, 2020 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 424 $ ( 75) $ 349 Amortization of losses on securities transferred from available for sale to held to maturity 9 ( 2) 7 Total Investment Securities 433 ( 77) 356 Change in net unrealized gain/loss on interest rate swap ( 104) 25 ( 79) Total Other Comprehensive Income $ 329 $ ( 52) $ 277 Six Months Ended June 30, 2020 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 3,962 $ ( 972) $ 2,990 Amortization of losses on securities transferred from available for sale to held to maturity 18 ( 4) 14 Total Investment Securities 3,980 ( 976) 3,004 Change in net unrealized gain/loss on interest rate swap ( 104) 25 ( 79) Total Other Comprehensive Income $ 3,876 $ ( 951) $ 2,925 Before Tax Net of Tax (Expense) Tax (Dollars in Thousands) Amount Benefit Amount Three Months Ended June 30, 2019 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 1,736 $ ( 439) $ 1,297 Amortization of losses on securities transferred from available for sale to held to maturity 11 ( 4) 7 Total Other Comprehensive Income $ 1,747 $ ( 443) $ 1,304 Six Months Ended June 30, 2019 Investment Securities: Change in net unrealized gain/loss on securities available for sale $ 2,985 $ ( 756) $ 2,229 Amortization of losses on securities transferred from available for sale to held to maturity 22 ( 6) 16 Total Other Comprehensive Income $ 3,007 $ ( 762) $ 2,245
Schedule of activity in accumulated other comprehensive loss, net of tax	Accumulated other comprehensive loss was comprised of the following components: Accumulated Securities Other Available Interest Rate Retirement Comprehensive (Dollars in Thousands) for Sale Swap Plans Loss Balance as of January 1, 2020 $ 864 $ - $ ( 29,045) $ ( 28,181) Other comprehensive income during the period 3,004 ( 79) - 2,925 Balance as of June 30, 2020 $ 3,868 $ ( 79) $ ( 29,045) $ ( 25,256) Balance as of January 1, 2019 $ ( 2,008) $ - $ ( 26,807) $ ( 28,815) Other comprehensive income during the period 2,245 - - 2,245 Balance as of June 30, 2019 $ 237 $ - $ ( 26,807) $ ( 26,570)

BUSINESS AND BASIS OF PRESENT_4

BUSINESS AND BASIS OF PRESENTATION (Impact of adopting ASC 326) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 22,457	$ 21,083	$ 17,174	$ 13,905	$ 14,593	$ 14,120	$ 14,210
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures	1,424	1,033	815	157	157	160	160
Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				3,269
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures				658
Commercial, Financial and Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	2,468	2,247	2,163	1,675	1,648	1,630	1,434
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures				488
Commercial, Financial and Agricultural [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				488
Real Estate - Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	1,955	1,239	672	370	521	381	280
Real Estate - Construction [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				302
Real Estate - Commercial Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	6,640	5,828	4,874	3,416	3,889	3,993	4,181
Real Estate - Commercial Mortgage [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				1,458
Real Estate - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	5,440	6,005	4,371	3,128	3,210	3,186	3,400
Real Estate - Residential [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				1,243
Real Estate - Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	2,753	2,701	2,598	2,224	2,383	2,261	2,301
Real Estate - Home Equity [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				374
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 3,201	$ 3,063	$ 2,496	3,092	$ 2,942	$ 2,669	$ 2,614
Consumer [Member] | Impact of Adoption of ASC 326 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Loss				$ (596)

BUSINESS AND BASIS OF PRESENT_5

BUSINESS AND BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Thousands	Mar. 01, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Business and Basis of Presentation [Abstract]
Business Acquisition, Name of Acquired Entity	Brand Mortgage Group
Membership interest in Brand Mortgage Group	51.00%
Total assets acquired	$ 52,000
Liabilities assumed	42,000
Payments to Acquire Businesses, Gross	7,100
Temporary Equity	$ 7,400	$ 11,341		$ 11,341				$ 0
Noncontrolling interest in subsidiary	49.00%
Additional goodwill, Brand Mortgage Group	$ 4,300
Net Loss Attributable to Noncontrolling Interests		(4,253)	$ 0	(3,976)	$ 0
Impact of ASC 326 [Line Items]
Liabilities		3,153,126		3,153,126				2,761,937
Loans and Leases Receivable, Allowance		22,457	14,593	22,457	14,593			13,905
Retained Earnings		328,570		328,570				322,937
Financing Receivable, Allowance for Credit Loss		$ 22,457	$ 14,593	$ 22,457	$ 14,593	$ 21,083	$ 17,174	13,905	$ 14,120	$ 14,210
Impact of Adoption of ASC 326 [Member]
Impact of ASC 326 [Line Items]
Liabilities							4,000
Financing Receivable, Allowance for Credit Loss								$ 3,269
Impact of Adoption of ASC 326 [Member] | Unfunded Loan Commitment [Member]
Impact of ASC 326 [Line Items]
Retained Earnings							(3,100)
Deferred Tax Assets							900
Financing Receivable, Allowance for Credit Loss							$ 700

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale
Amortized Cost	$ 335,975	$ 402,358
Unrealized Gains	5,236	1,635
Unrealized Losses	31	392
Market Value	341,180	403,601
Federal Home Loan Bank	3,000	2,900
Federal Reserve Bank stock	4,800	4,800
Held to Maturity
Amortized Cost	232,178	239,539
Unrealized Gains	6,321	2,079
Unrealized Losses	0	189
Market Value	238,499	241,429
Total
Amortized Cost	568,153	641,897
Unrealized Gain	11,557	3,714
Unrealized Loss	31	581
Fair Value	579,679	645,030
U.S. Government Treasury [Member]
Available-for-sale
Amortized Cost	158,600	231,996
Unrealized Gains	2,167	849
Unrealized Losses	0	67
Market Value	160,767	232,778
Held to Maturity
Amortized Cost	20,017	20,036
Unrealized Gains	119	15
Unrealized Losses	0	9
Market Value	20,136	20,042
U.S. Government Agency [Member]
Available-for-sale
Amortized Cost	163,658	155,706
Unrealized Gains	2,890	697
Unrealized Losses	31	325
Market Value	166,517	156,078
States and Political Subdivisions [Member]
Available-for-sale
Amortized Cost	5,451	6,310
Unrealized Gains	122	9
Unrealized Losses	0	0
Market Value	5,573	6,319
Held to Maturity
Amortized Cost	0	1,376
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	0	1,376
Mortgage-Backed Securities [Member]
Available-for-sale
Amortized Cost	488	693
Unrealized Gains	57	80
Unrealized Losses	0	0
Market Value	545	773
Held to Maturity
Amortized Cost	212,161	218,127
Unrealized Gains	6,202	2,064
Unrealized Losses	0	180
Market Value	218,363	220,011
Equity Securities [Member]
Available-for-sale
Amortized Cost	7,778	7,653
Unrealized Gains	0	0
Unrealized Losses	0	0
Market Value	$ 7,778	$ 7,653

INVESTMENT SECURITIES (Maturity

INVESTMENT SECURITIES (Maturity Distribution) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 120,988
Due after one through five years	43,063
Total Investment Securities	335,975
Market Value
Due in one year or less	122,200
Due after one through five years	44,140
Total Investment Securities	341,180
Amortized Cost
Due in one year or less	20,017
Due after one through five years	0
Total Investment Securities	232,178	$ 239,539
Market Value
Due in one year or less	20,136
Due after one through five years	0
Total Investment Securities	238,499	241,429
Mortgage-Backed Securities [Member]
Amortized Cost
Due without single maturity date	488
Market Value
Due without single maturity date	545
Amortized Cost
Due without single maturity date	212,161
Total Investment Securities	212,161	218,127
Market Value
Due without single maturity date	218,363
Total Investment Securities	218,363	$ 220,011
U.S. Government Agency [Member]
Amortized Cost
Due without single maturity date	163,658
Market Value
Due without single maturity date	166,517
Amortized Cost
Due without single maturity date	0
Market Value
Due without single maturity date	0
Equity Securities [Member]
Amortized Cost
Due without single maturity date	7,778
Market Value
Due without single maturity date	$ 7,778

INVESTMENT SECURITIES (Unrealiz

INVESTMENT SECURITIES (Unrealized Losses on Investment Securities) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale securities
Less Than 12 Months, Fair Value	$ 6,168,000	$ 46,902,000
Less Than 12 Months, Unrealized Losses	24,000	244,000
12 Months Or Longer, Fair Value	2,734,000	110,674,000
12 Months Or Longer, Unrealized Losses	7,000	148,000
Total Fair Value	8,902,000	157,576,000
Total Unrealized Losses	31,000	392,000
U.S. Government Treasury [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value		9,955,000
Less Than 12 Months, Unrealized Losses		0
12 Months Or Longer, Fair Value		93,310,000
12 Months Or Longer, Unrealized Losses		67,000
Total Fair Value		103,265,000
Total Unrealized Losses		67,000
U.S. Government Agency [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	6,168,000	36,361,000
Less Than 12 Months, Unrealized Losses	24,000	244,000
12 Months Or Longer, Fair Value	2,734,000	17,364,000
12 Months Or Longer, Unrealized Losses	7,000	81,000
Total Fair Value	8,902,000	53,725,000
Total Unrealized Losses	$ 31,000	325,000
States and Political Subdivisions [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value		578,000
Less Than 12 Months, Unrealized Losses		0
12 Months Or Longer, Fair Value		0
12 Months Or Longer, Unrealized Losses		0
Total Fair Value		578,000
Total Unrealized Losses		0
Mortgage-Backed Securities [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value		8,000
Less Than 12 Months, Unrealized Losses		0
12 Months Or Longer, Fair Value		0
12 Months Or Longer, Unrealized Losses		0
Total Fair Value		8,000
Total Unrealized Losses		$ 0

INVESTMENT SECURITIES (Narrativ

INVESTMENT SECURITIES (Narrative) (Details)	Jun. 30, 2020USD ($)Investment_Positions	Mar. 31, 2020USD ($)	Jan. 01, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Investments, Debt and Equity Securities [Abstract]
Securities pledged to secure public deposits	$ 262,000,000			$ 353,800,000
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities and Held-to-maturity investments in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | Investment_Positions	18
Available-for-sale Securities and Held-To-Maturity, Continuous Unrealized Loss Position Fair Value, Total	$ 31,000
Financing Receivable, Allowance for Credit Loss	22,457,000	$ 21,083,000	$ 17,174,000	13,905,000	$ 14,593,000	$ 14,120,000	$ 14,210,000
Nonaccrual	6,966,000			4,472,000
Financing Receivable, Past Due	2,948,000			$ 4,871,000
AFS and HTM [Member]
Schedule of Available-for-sale Securities [Line Items]
Nonaccrual	0
Financing Receivable, Past Due	0
Investment securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 0

LOANS HELD FOR INVESTMENT AND_3

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Portfolio Composition) (Details) - USD ($) $ in Thousands		Jun. 30, 2020	Dec. 31, 2019
Loan Portfolio Composition
Loans Held for Investment, Net		$ 2,022,177	$ 1,835,929
Net deferred fees		2,300
Commercial, Financial and Agricultural [Member]
Loan Portfolio Composition
Loans Held for Investment, Net		421,270	255,365
Real Estate - Construction [Member]
Loan Portfolio Composition
Loans Held for Investment, Net		117,794	115,018
Real Estate - Commercial Mortgage [Member]
Loan Portfolio Composition
Loans Held for Investment, Net		662,434	625,556
Real Estate - Residential [Member]
Loan Portfolio Composition
Loans Held for Investment, Net	[1]	358,714	361,450
Loans in Process with outstanding balances		5,700	8,300
Real Estate - Home Equity [Member]
Loan Portfolio Composition
Loans Held for Investment, Net		194,479	197,360
Consumer [Member]
Loan Portfolio Composition
Loans Held for Investment, Net		267,486	281,180
Overdraft Balances		$ 1,100	$ 1,600
[1]	Includes loans in process with outstanding balances of $ 5.7 million and $ 8.3 million at June 30, 2020 and December 31, 2019, respectively. (2) Includes overdraft balances of $ 1.1 million and $ 1.6 million at June 30, 2020 and December 31, 2019, respectively.

LOANS HELD FOR INVESTMENT AND_4

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Activity in the allowance for credit losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Activity in the allowance for loan losses by portfolio class
Beginning Balance			$ 13,905
Provision for Loan Losses		$ 646	6,995	$ 1,413
Charge-Offs		(865)		(2,226)
Recoveries		692		1,196
Net Charge-Offs		(173)		(1,030)
Ending Balance	$ 22,457	14,593	22,457	14,593
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	21,083	14,120	13,905	14,210
Provision for credit losses	1,615		6,605
Charge-Offs	(1,414)		(3,494)
Recoveries	1,173		2,172
Net Charge-Offs	(241)		(1,322)
Ending Balance	22,457	14,593	22,457	14,593
Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			3,269
Commercial, Financial and Agricultural [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		195		412
Charge-Offs		(235)		(330)
Recoveries		58		132
Net Charge-Offs		(177)		(198)
Ending Balance		1,648		1,648
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,247	1,630	1,675	1,434
Provision for credit losses	333		739
Charge-Offs	(186)		(548)
Recoveries	74		114
Net Charge-Offs	(112)		(434)
Ending Balance	2,468	1,648	2,468	1,648
Commercial, Financial and Agricultural [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			488
Real Estate - Construction [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		140		241
Charge-Offs		0		0
Recoveries		0		0
Net Charge-Offs		0		0
Ending Balance		521		521
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,239	381	370	280
Provision for credit losses	716		1,283
Charge-Offs	0		0
Recoveries	0		0
Net Charge-Offs	0		0
Ending Balance	1,955	521	1,955	521
Real Estate - Construction [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			302
Real Estate - Commercial Mortgage [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		(204)		(307)
Charge-Offs		0		(155)
Recoveries		100		170
Net Charge-Offs		100		15
Ending Balance		3,889		3,889
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	5,828	3,993	3,416	4,181
Provision for credit losses	742		1,516
Charge-Offs	0		(11)
Recoveries	70		261
Net Charge-Offs	70		250
Ending Balance	6,640	3,889	6,640	3,889
Real Estate - Commercial Mortgage [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,458
Real Estate - Residential [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		(134)		(128)
Charge-Offs		(65)		(329)
Recoveries		223		267
Net Charge-Offs		158		(62)
Ending Balance		3,210		3,210
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	6,005	3,186	3,128	3,400
Provision for credit losses	(615)		1,089
Charge-Offs	(1)		(111)
Recoveries	51		91
Net Charge-Offs	50		(20)
Ending Balance	5,440	3,210	5,440	3,210
Real Estate - Residential [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,243
Real Estate - Home Equity [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		107		87
Charge-Offs		(45)		(97)
Recoveries		60		92
Net Charge-Offs		15		(5)
Ending Balance		2,383		2,383
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,701	2,261	2,224	2,301
Provision for credit losses	40		141
Charge-Offs	(52)		(83)
Recoveries	64		97
Net Charge-Offs	12		14
Ending Balance	2,753	2,383	2,753	2,383
Real Estate - Home Equity [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			374
Consumer [Member]
Activity in the allowance for loan losses by portfolio class
Provision for Loan Losses		542		1,108
Charge-Offs		(520)		(1,315)
Recoveries		251		535
Net Charge-Offs		(269)		(780)
Ending Balance		2,942		2,942
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	3,063	2,669	3,092	2,614
Provision for credit losses	399		1,837
Charge-Offs	(1,175)		(2,741)
Recoveries	914		1,609
Net Charge-Offs	(261)		(1,132)
Ending Balance	$ 3,201	$ 2,942	3,201	$ 2,942
Consumer [Member] | Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ (596)

LOANS HELD FOR INVESTMENT AND_5

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Recorded Investment In Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	$ 6,966	$ 4,472
Nonaccrual With No Allowance Credit Loss	3,305	1,185
90+ Days Still Accruing	0	0
Commercial, Financial and Agricultural [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	548	446
Nonaccrual With No Allowance Credit Loss	0	0
90+ Days Still Accruing	0	0
Real Estate - Construction [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	146	0
Nonaccrual With No Allowance Credit Loss	0	0
90+ Days Still Accruing	0	0
Real Estate - Commercial Mortgage [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	2,580	1,434
Nonaccrual With No Allowance Credit Loss	1,789	958
90+ Days Still Accruing	0	0
Real Estate - Residential [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	2,400	1,392
Nonaccrual With No Allowance Credit Loss	1,516	227
90+ Days Still Accruing	0	0
Real Estate - Home Equity [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	1,010	797
Nonaccrual With No Allowance Credit Loss	0	0
90+ Days Still Accruing	0	0
Consumer [Member]
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
Total Nonaccrual	282	403
Nonaccrual With No Allowance Credit Loss	0	0
90+ Days Still Accruing	$ 0	$ 0

LOANS HELD FOR INVESTMENT AND_6

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Loan Portfolio Aging) (Details) - USD ($) $ in Thousands		Jun. 30, 2020	Dec. 31, 2019
Aging of the recorded investment in past due loans by class of loans
Total Past Due		$ 2,948	$ 4,871
Total Current		2,012,263	1,826,586
Total Loans		2,022,177	1,835,929
30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		1,623	3,721
60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		1,325	1,150
90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Commercial, Financial and Agricultural [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		385	680
Total Current		420,337	254,239
Total Loans		421,270	255,365
Commercial, Financial and Agricultural [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		165	489
Commercial, Financial and Agricultural [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		220	191
Commercial, Financial and Agricultural [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Real Estate - Construction [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		130	310
Total Current		117,518	114,708
Total Loans		117,794	115,018
Real Estate - Construction [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	300
Real Estate - Construction [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		130	10
Real Estate - Construction [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Real Estate - Commercial Mortgage [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		83	232
Total Current		659,771	623,890
Total Loans		662,434	625,556
Real Estate - Commercial Mortgage [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		83	148
Real Estate - Commercial Mortgage [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	84
Real Estate - Commercial Mortgage [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Real Estate - Residential [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		726	825
Total Current		355,588	359,233
Total Loans	[1]	358,714	361,450
Real Estate - Residential [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		143	629
Real Estate - Residential [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		583	196
Real Estate - Residential [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Real Estate - Home Equity [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		148	175
Total Current		193,321	196,388
Total Loans		194,479	197,360
Real Estate - Home Equity [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		122	155
Real Estate - Home Equity [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		26	20
Real Estate - Home Equity [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		0	0
Consumer [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		1,476	2,649
Total Current		265,728	278,128
Total Loans		267,486	281,180
Consumer [Member] | 30-59 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		1,110	2,000
Consumer [Member] | 60-89 DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		366	649
Consumer [Member] | 90 +DPD [Member]
Aging of the recorded investment in past due loans by class of loans
Total Past Due		$ 0	$ 0
[1]	Includes loans in process with outstanding balances of $ 5.7 million and $ 8.3 million at June 30, 2020 and December 31, 2019, respectively. (2) Includes overdraft balances of $ 1.1 million and $ 1.6 million at June 30, 2020 and December 31, 2019, respectively.

LOANS HELD FOR INVESTMENT AND_7

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Collateral-dependent loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	$ 7,800	$ 6,600
Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	7,832
Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Commercial, Financial and Agricultural [Member] | Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	106
Commercial, Financial and Agricultural [Member] | Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Real Estate - Commercial Mortgage [Member] | Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	4,939
Real Estate - Commercial Mortgage [Member] | Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Real Estate - Residential [Member] | Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	2,358
Real Estate - Residential [Member] | Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Real Estate - Home Equity [Member] | Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	429
Real Estate - Home Equity [Member] | Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Consumer [Member] | Real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	0
Consumer [Member] | Non real estate secured [Member]
Loans and Leases Receivable Disclosure [Line Items]
Collateral-dependent loans	$ 0

LOANS HELD FOR INVESTMENT AND_8

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Loans held for investment by years of origination) (Details) $ in Thousands	Jun. 30, 2020USD ($)
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	$ 214,844
2019	54,654
2018	50,185
2017	20,194
2016	16,621
Prior	14,172
Revolving Loans	50,600
Total	421,270
Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	27,315
2019	73,636
2018	11,162
2017	2,148
2016	0
Prior	0
Revolving Loans	3,533
Total	117,794
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	95,717
2019	118,866
2018	154,182
2017	102,513
2016	53,779
Prior	115,869
Revolving Loans	21,508
Total	662,434
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	53,682
2019	84,055
2018	59,102
2017	49,973
2016	24,428
Prior	80,589
Revolving Loans	6,885
Total	358,714
Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	1,558
2019	398
2018	277
2017	861
2016	200
Prior	2,804
Revolving Loans	188,381
Total	194,479
Real Estate - Home Equity [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	1,558
2019	378
2018	252
2017	780
2016	200
Prior	2,780
Revolving Loans	187,703
Total	193,651
Real Estate - Home Equity [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	20
2018	25
2017	81
2016	0
Prior	24
Revolving Loans	678
Total	828
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	46,790
2019	89,297
2018	67,867
2017	35,130
2016	16,967
Prior	6,220
Revolving Loans	5,215
Total	267,486
Consumer [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	46,790
2019	89,192
2018	67,729
2017	35,130
2016	16,947
Prior	6,200
Revolving Loans	5,215
Total	267,203
Consumer [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	105
2018	138
2017	0
2016	20
Prior	20
Revolving Loans	0
Total	283
Pass [Member] | Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	214,844
2019	54,639
2018	49,571
2017	19,873
2016	16,582
Prior	14,016
Revolving Loans	50,597
Total	420,122
Pass [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	27,315
2019	73,360
2018	11,162
2017	2,148
2016	0
Prior	0
Revolving Loans	3,533
Total	117,518
Pass [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	89,447
2019	118,464
2018	148,746
2017	99,444
2016	53,748
Prior	106,278
Revolving Loans	21,014
Total	637,141
Pass [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	53,539
2019	82,903
2018	57,856
2017	49,232
2016	23,327
Prior	77,875
Revolving Loans	6,800
Total	351,532
Special Mention [Member] | Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	4
2018	61
2017	9
2016	0
Prior	64
Revolving Loans	0
Total	138
Special Mention [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	6,116
2019	123
2018	5,141
2017	216
2016	0
Prior	6,494
Revolving Loans	0
Total	18,090
Special Mention [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	143
2019	26
2018	128
2017	178
2016	96
Prior	345
Revolving Loans	0
Total	916
Substandard [Member] | Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	11
2018	553
2017	312
2016	39
Prior	92
Revolving Loans	3
Total	1,010
Substandard [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	276
2018	0
2017	0
2016	0
Prior	0
Revolving Loans	0
Total	276
Substandard [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	154
2019	279
2018	295
2017	2,853
2016	31
Prior	3,097
Revolving Loans	494
Total	7,203
Substandard [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2020	0
2019	1,126
2018	1,118
2017	563
2016	1,005
Prior	2,369
Revolving Loans	85
Total	$ 6,266

LOANS HELD FOR INVESTMENT AND_9

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES, (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 31, 2020	Jan. 01, 2020	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss	$ 22,457,000	$ 14,593,000	$ 22,457,000	$ 14,593,000	$ 13,905,000	$ 21,083,000	$ 17,174,000	$ 14,120,000	$ 14,210,000
Loans extended	1,999,720,000		1,999,720,000		1,822,024,000
Accrued interest receivable	8,100,000		8,100,000		5,500,000
Provision for credit losses	1,615,000		6,605,000
Net loan charge-offs	241,000		1,322,000
Interest income on nonaccrual loans	10,000
Nonaccrual loans	6,966,000		6,966,000		4,472,000
Real estate loans for which formal foreclosure proceedings were in process	1,300,000		1,300,000		600,000
TDRs	16,000,000		16,000,000		17,600,000
TDRs performing in accordance with modified terms	15,100,000				16,900,000
Estimated loan loss reserves	1,000,000		1,000,000		1,500,000
TDRs, for which there was a payment default and the loans were modified within the twelve months prior to default	0	0	100,000	0
Loan modified with a recorded investment	34,000	$ 100,000	200,000	$ 200,000
Purchase of real estate secured adjustable rate loans			18,400,000
Net deferred fees	2,300,000		2,300,000
Loans and Leases Receivable net deferred costs	1,800,000		1,800,000
Adjustments related to Covid 19 [Member]
Financing Receivable, Allowance for Credit Loss	$ 3,900,000		$ 3,900,000
Impact of Adoption of ASC 326 [Member]
Financing Receivable, Allowance for Credit Loss					$ 3,269,000
Pre-tax cumulative effect transition adjustment							$ 3,300,000

MORTGAGE BANKING ACTIVITIES (Un

MORTGAGE BANKING ACTIVITIES (Unpaid principal balance of residential mortgage loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other assets	$ 83,282	$ 65,550
Other liabilities	75,702	50,678
Loans held for sale, at fair value	76,610	$ 9,509
Fair value	80,989
Residential Mortgage [Member]
Loans held-for-sale	73,498
Loans held for sale, at fair value	76,610
Residential Mortgage [Member] | Loan Commitments (IRLCs) [Member]
Other assets	154,759
Other assets fair value	5,342
Residential Mortgage [Member] | Forward Sales Contracts [Member]
Other liabilities	178,500
Other liabilities at fair value	$ (963)

MORTGAGE BANKING ACTIVITIES (Mo

MORTGAGE BANKING ACTIVITIES (Mortgage banking revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Mortgage Servicing Rights Additions			$ 2,049
Mortgage banking [Member]
Net Realized Gains on Sales of Mortgage Loans	$ 14,580		17,987
Net Change in Unrealized Gain on Mortgage Loans Held for Sale	1,092		1,830
Net Change in the Fair Value of Mortgage Loan Commitments (IRLCs)	1,487		3,142
Net Change in the Fair Value of Forward Sales Contracts	1,625		231
Pair-Offs on Net Settlement of Forward Sales Contracts	(3,019)		(4,395)
Mortgage Servicing Rights Additions	2,049		2,049
Total Revenue	$ 17,814	$ 1,199	$ 20,844	$ 2,192

MORTGAGE BANKING ACTIVITIES (Su

MORTGAGE BANKING ACTIVITIES (Summary of mortgage servicing rights) (Details) - Residential Mortgage [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)Contracts
Servicing Assets at Fair Value [Line Items]
Number of Residential Mortgage Loans Serviced for Others | Contracts	1,375
Outstanding Principal Balance of Residential Mortgage Loans Serviced for Others | $	$ 355,778
Weighted Average Interest Rate	3.94%
Remaining contratual term related to mortgage serviced for others	318 months

MORTGAGE BANKING ACTIVITIES (Ca

MORTGAGE BANKING ACTIVITIES (Capitalized mortgage servicing rights) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Servicing Asset at Fair Value, Amount [Roll Forward
Beginning Balance	$ 910
Additions due to loans sold with servicing retained	2,049
Deletions and amortization	(97)
Ending Balance	$ 2,862

MORTGAGE BANKING ACTIVITIES (ke

MORTGAGE BANKING ACTIVITIES (key unobservable inputs used in determining the fair value) (Details)	6 Months Ended
	Jun. 30, 2020
Maximum [Member]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rates	11.00%
Annual prepayment speeds	10.02%
Cost of Servicing (Basis points)	0.90%
Minimum [Member]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rates	15.00%
Annual prepayment speeds	62.88%
Cost of Servicing (Basis points)	1.10%

MORTGAGE BANKING ACTIVITIES (Wa

MORTGAGE BANKING ACTIVITIES (Warehouse Line Borrowings) (Details) - Warehouse Line Borrowings [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Short-term Debt [Line Items]
Line of credit outstanding	$ 60,727
Line of credit agreement expiring Ocotber 2020 [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 25,000
Debt Instrument, Description of Variable Rate Basis	Interest is at LIBOR plus 2.25%
Debt Instrument, Basis Spread on Variable Rate	2.25%
Floor rate	3.50%
Line of credit outstanding	$ 16,220
Cash pledge deposit	100
Master Repurchase Agreement [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Debt Instrument, Description of Variable Rate Basis	Interest is at the LIBOR plus 2.24% to 3.00%
Line of credit outstanding	$ 27,844
Cash pledge deposit	$ 500
Master Repurchase Agreement [Member] | Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Master Repurchase Agreement [Member] | Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.24%
Line of credit expiring September 2020 [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Debt Instrument, Description of Variable Rate Basis	Interest is at the LIBOR plus 2.25%
Debt Instrument, Basis Spread on Variable Rate	2.25%
Line of credit outstanding	$ 16,663

MORTGAGE BANKING ACTIVITIES (Na

MORTGAGE BANKING ACTIVITIES (Narrative) (Details) $ in Millions	Jun. 30, 2020USD ($)
Mortgage Banking Activities [Abstract]
Residential mortgage loans held for sale that were 90 days or more outstanding	$ 0.7
Percentage of FNMA loan type of total loans serviced	53.00%
Percentage of GNMA loan type of total loans serviced	16.00%
Percentage of Private Investor loan type of total loans serviced	31.00%
Weighted average prepayment speed	17.04%
Warehouse lines of credit extended to CCHL	$ 30
Ownership interest in CCHL, subsidiary	51.00%
Balance of lines of credit receivable from CCHL	$ 10.2

DERIVATIVES (Cash flow hedges i

DERIVATIVES (Cash flow hedges included in the Consolidated Statement of Financial Condition) (Details) - Interest rate swaps related to subordinated debt [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Derivatives, Fair Value [Line Items]
Notional Amount	$ 30,000
Fair Value	$ (108)
Weighted average rate paid (floating)	2.15%
Weighted average rate paid (fixed)	2.50%
Weighted average maturity years	10 years

DERIVATIVES (Net gains (losses)

DERIVATIVES (Net gains (losses) recorded in accumulated other comprehensive income) (Details) - Interest rate product [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in AOCI	$ (108)
Amount of Gain (Loss) Reclassified from AOCI to Income	(3)
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 100

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Lesse lease description [Line Items]
Lessee operating lease term of contract	15 years	15 years
Lesse operating lease description	Operating leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term
Operating lease right of use asset	$ 6,500	$ 6,500
Operating lease liabilties	7,387	$ 7,387
Lessee, Operating Lease, Lease Not yet Commenced, Description		Payments for the banking office are expected to commence after the construction period ends, which is expected to occur during the second half of 2021.
Operating lease liabilities, not yet commenced	4,800	$ 4,800
Lease payment transaction [Member]
Lesse lease description [Line Items]
Operating lease liabilties	900	900
Operating lease, minimum annual payment	$ 200	$ 200
Minimum [Member]
Lesse lease description [Line Items]
Lessee operating lease term of contract	1 year	1 year
Maximum [Member]
Lesse lease description [Line Items]
Lessee operating lease term of contract	30 years	30 years

LEASES - Lease information (Det

LEASES - Lease information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lease expenses:
Operating lease expense	$ 265	$ 81	$ 422	$ 162
Short term lease expense	154	29	233	63
Total lease expense	419	110	655	225
Other information related to leases [Abstract]
Operating cash flows from operating leases	263	84	424	169
Right-of-use asset obtained in exchange for operating lease liability	$ 0	$ 0	$ 5,120	$ 1,860
Weighted Average remaining lease term	15 years 6 months	7 years 2 months 12 days	15 years 6 months	7 years 2 months 12 days
Weighted-average discount rate - operating leases	2.40%	2.90%	2.40%	2.90%

LEASES - Maturity of remaining

LEASES - Maturity of remaining lease liabilities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Summary of the maturity of remaining lease liabilities:
2020	$ 609
2021	1,200
2022	1,052
2023	680
2024	630
2025 and thereafter	4,840
Total	9,011
Less: Interest	(1,624)
Present Value of Lease Liabilities	$ 7,387

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined Benefit Pension Plan [Member]
Components of Net Periodic Benefit Costs:
Service Cost	$ 1,457	$ 1,529	$ 2,914	$ 3,057
Interest Cost	1,400	1,545	2,811	3,089
Expected Return on Plan Assets	(2,748)	(2,382)	(5,496)	(4,764)
Prior Service Cost Amortization	4	4	8	8
Net Gain (Loss) Amortization	974	965	1,985	1,931
Special Termination Charge	0	0	61	0
Net Periodic Benefit Cost (Income)	$ 1,087	$ 1,661	$ 2,283	$ 3,321
Discount Rate (in percent)	3.53%	4.43%	3.53%	4.43%
Long-Term Rate of Return on Assets (in percent)	7.00%	7.25%	7.00%	7.25%
Supplemental Executive Retirement Plan [Member]
Components of Net Periodic Benefit Costs:
Service Cost	$ 10	$ 0	$ 10	$ 0
Interest Cost	83	87	155	174
Prior Service Cost Amortization	109	0	109	0
Net Gain (Loss) Amortization	71	190	318	380
Net Periodic Benefit Cost (Income)	$ 273	$ 277	$ 592	$ 554
Discount Rate (in percent)	3.16%	4.23%	3.16%	4.23%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Fixed	$ 126,402	$ 120,686
Variable	524,196	404,345
Total	650,598	525,031
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Fixed	119,458	114,903
Variable	524,196	404,345
Total	643,654	519,248
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Fixed	6,944	5,783
Variable	0	0
Total	$ 6,944	$ 5,783

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Allowance for credit losses for off-balance sheet credit commitments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning Balance	$ 1,033	$ 160	$ 157	$ 160
Impact of Adoption of ASC 326	0	0	658	0
Provision for Credit Losses	391	(3)	609	(3)
Ending Balance	$ 1,424	$ 157	$ 1,424	$ 157

COMMITMENTS AND CONTINGENCIES N

COMMITMENTS AND CONTINGENCIES Narratives (Details) - USD ($)	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Loss Contingency Quarterly Accrual Payments until settled	$ 168,000
Off-Balance Sheet, Credit Loss, Liability	$ 1,424,000	$ 1,033,000	$ 815,000	$ 157,000	$ 157,000	$ 160,000	$ 160,000
Adoption of ASC 326 [Member]
Loss Contingencies [Line Items]
Off-Balance Sheet, Credit Loss, Liability				$ 658,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans held for sale [Member]
ASSETS:
Assets, Fair Value Disclosure	$ 76,610
U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	160,767	$ 232,778
U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	166,517	156,078
States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	5,573	6,319
Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	545	773
Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	7,778	7,653
Mortgage Banking Derivative Asset [Member]
ASSETS:
Assets, Fair Value Disclosure	5,342
Mortgage Banking Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	963
Interest Rate Swap Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	108
Level 1 Inputs [Member] | Loans held for sale [Member]
ASSETS:
Assets, Fair Value Disclosure	0
Level 1 Inputs [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	160,767	232,778
Level 1 Inputs [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Mortgage Banking Derivative Asset [Member]
ASSETS:
Assets, Fair Value Disclosure	0
Level 1 Inputs [Member] | Mortgage Banking Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	0
Level 1 Inputs [Member] | Interest Rate Swap Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member] | Loans held for sale [Member]
ASSETS:
Assets, Fair Value Disclosure	76,610
Fair Value, Inputs, Level 2 [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	166,517	156,078
Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	5,573	6,319
Fair Value, Inputs, Level 2 [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	545	773
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	7,778	7,653
Fair Value, Inputs, Level 2 [Member] | Mortgage Banking Derivative Asset [Member]
ASSETS:
Assets, Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member] | Mortgage Banking Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	963
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	108
Fair Value, Inputs, Level 3 [Member] | Loans held for sale [Member]
ASSETS:
Assets, Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	$ 0
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative Asset [Member]
ASSETS:
Assets, Fair Value Disclosure	5,342
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap Derivative Liability [Member]
LIABILITIES:
Financial Liabilities Fair Value Disclosure	$ 0

FAIR VALUE MEASUREMENTS (Financ

FAIR VALUE MEASUREMENTS (Financial Instruments) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
ASSETS:
Investment Securities, Available for Sale	$ 341,180,000	$ 403,601,000
Investment securities, held to maturity, fair value	238,499,000	241,429,000
Loans held for sale, at fair value	76,610,000	9,509,000
Mortgage Servicing Rights	2,862,000	910,000
Level 1 Inputs [Member]
ASSETS:
Cash	75,155,000	60,087,000
Short-Term Investments	513,273,000	318,336,000
Investment Securities, Available for Sale	160,767,000	232,778,000
Investment Securities, Held to Maturity	20,136,000	20,042,000
Fair Value, Inputs, Level 2 [Member]
ASSETS:
Investment Securities, Available for Sale	180,413,000	170,823,000
Investment Securities, Held to Maturity	218,363,000	221,387,000
Other Investments And Securities At Cost	3,588,000	3,591,000
Loans held for sale, at fair value	76,610,000	9,509,000
LIABILITIES:
Deposits	3,063,239,000	2,644,430,000
Short-Term Borrowings	63,958,000	6,404,000
Subordinated Notes Payable	41,835,000	40,280,000
Long-Term Borrowings	5,763,000	6,623,000
Mortgage Banking Derivative Liability	963,000
Interest Rate Swap Derivative Liability	108,000
Fair Value, Inputs, Level 3 [Member]
ASSETS:
Loans, Net of Allowance for Loan Losses	2,006,877,000	1,804,930,000
Mortgage Banking Derivative Asset	5,342,000
Mortgage Servicing Rights	2,827,000
Carrying (Reported) Amount, Fair Value Disclosure [Member]
ASSETS:
Cash	75,155,000	60,087,000
Short-Term Investments	513,273,000	318,336,000
Investment Securities, Available for Sale	341,180,000	403,601,000
Investment Securities, Held to Maturity	232,178,000	239,539,000
Other Investments And Securities At Cost	3,588,000	3,591,000
Loans held for sale, at fair value	76,610,000	9,509,000
Loans, Net of Allowance for Loan Losses	1,999,720,000	1,822,024,000
Mortgage Banking Derivative Asset	5,342,000
Mortgage Servicing Rights	2,862,000
LIABILITIES:
Deposits	2,954,996,000	2,645,454,000
Short-Term Borrowings	63,958,000	6,404,000
Subordinated Notes Payable	52,887,000	52,887,000
Long-Term Borrowings	5,583,000	$ 6,514,000
Mortgage Banking Derivative Liability	963,000
Interest Rate Swap Derivative Liability	$ 108,000

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narratives) (Details) - USD ($) $ in Millions	4 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Level 3 issuances	$ 14.6
Level 3 transfers	19.4
Collateral-dependent loans	7.8	$ 6.6
valuation allowance	$ 0.1	$ 0.5

OTHER COMPREHENSIVE INCOME (L_2

OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investment Securities Before Tax Amount [Abstract]
Change in net unrealized gain/loss on securities available for sale, Before Tax	$ 424	$ 1,736	$ 3,962	$ 2,985
Amortization of unrealized losses on securities transferred from available for sale to held to maturity, before tax	9	11	18	22
Total Investment Securities, Before Tax	433	1,747	3,980	3,007
Change in net unrealized gain/loss on interest rate swap, before tax	(104)	0	(104)	0
Other Comprehensive Income, before tax	329	1,747	3,876	3,007
Investment Securities Tax Expense (Benefit) [Abstract]
Change in net unrealized gain/loss on securities available for sale, Tax	(75)	(439)	(972)	(756)
Amortization of unrealized losses on securities transferred from available for sale to held to maturity tax expense (benefit)	(2)	(4)	(4)	(6)
Total Investment Securities, Tax	(77)		(976)
Change in net unrealized gain/loss on interest rate swap, Tax	25		25
Total Other Comprehensive Income, Tax (Expense) Benefit	(52)	(443)	(951)	(762)
Investment Securities Net of Tax Amount [Abstract]
Change in net unrealized gain/loss on securities available for sale Net of Tax amount	349	1,297	2,990	2,229
Amortization of unrealized losses on securities transferred from available for sale to held to maturity net of tax	7	7	14	16
Total Investment Securities, Net of Tax	356		3,004
Change in net unrealized gain/loss on interest rate swap, net of tax	(79)		(79)
Total Other Comprehensive Income, Net of Tax	$ 277	$ 1,304	$ 2,925	$ 2,245

OTHER COMPREHENSIVE INCOME (L_3

OTHER COMPREHENSIVE INCOME (LOSS) (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Activity in accumulated other comprehensive loss, net of tax
Balance, Begining			$ (28,181)	$ (28,815)
Other comprehensive loss during the period	$ 277	$ 1,304	2,925	2,245
Balance, Ending	(25,256)	(26,570)	(25,256)	(26,570)
Interest rate swap [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Begining			0	0
Other comprehensive loss during the period			(79)	0
Balance, Ending	(79)	0	(79)	0
Securities Available for Sale [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Begining			864	(2,008)
Other comprehensive loss during the period			3,004	2,245
Balance, Ending	3,868	237	3,868	237
Retirement Plans [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Begining			(29,045)	(26,807)
Other comprehensive loss during the period			0	0
Balance, Ending	$ (29,045)	$ (26,807)	$ (29,045)	$ (26,807)