Citizens Financial Services (CZFS) 10-K 7 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 25, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CITIZENS FINANCIAL SERVICES INC
Entity Central Index Key	739,421
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Public Float			$ 194,033,706
Entity Common Stock, Shares Outstanding		3,500,277
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents:
Noninterest-bearing	$ 15,327	$ 16,347
Interest-bearing	1,470	2,170
Total cash and cash equivalents	16,797	18,517
Interest bearing time deposits with other banks	15,498	10,283
Equity securities	516	0
Available-for-sale securities	241,010	254,782
Loans held for sale	1,127	1,439
Loans (net of allowance for loan losses:2018, $12,884; 2017, $11,190)	1,068,999	989,335
Premises and equipment	16,273	16,523
Accrued interest receivable	4,452	4,196
Goodwill	23,296	23,296
Bank owned life insurance	27,505	26,883
Other intangibles	1,623	1,953
Other assets	13,616	14,679
TOTAL ASSETS	1,430,712	1,361,886
Deposits:
Noninterest-bearing	179,971	171,840
Interest-bearing	1,005,185	933,103
Total deposits	1,185,156	1,104,943
Borrowed funds	91,194	114,664
Accrued interest payable	1,076	897
Other liabilities	14,057	12,371
TOTAL LIABILITIES	1,291,483	1,232,875
STOCKHOLDERS' EQUITY:
Preferred Stock $1.00 par value; authorized 3,000,000 shares 2018 and 2017; none issued in 2018 or 2017	0	0
Common Stock $1.00 par value; authorized 25,000,000 shares in 2018 and 15,000,000 shares in 2017; issued 3,904,212 and 3,869,939 shares in 2018 and 2017, respectively	3,904	3,870
Additional paid-in capital	53,099	51,108
Retained earnings	99,727	89,982
Accumulated other comprehensive loss	(3,921)	(3,398)
Treasury stock, at cost: 399,616 and 383,065 shares for 2018 and 2017, respectively	(13,580)	(12,551)
TOTAL STOCKHOLDERS' EQUITY	139,229	129,011
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,430,712	$ 1,361,886

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ASSETS:
Loans, allowance for loan losses	$ 12,884	$ 11,190
STOCKHOLDERS' EQUITY:
Preferred Stock , par value (in dollars per share)	$ 1	$ 1
Preferred Stock , authorized (in shares)	3,000,000	3,000,000
Preferred Stock , issued (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, authorized (in shares)	25,000,000	15,000,000
Common Stock, issued (in shares)	3,904,212	3,869,939
Treasury stock, shares (in shares)	399,616	383,065

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans	$ 50,458	$ 42,127	$ 35,844
Interest-bearing deposits with banks	319	186	221
Investment securities:
Taxable	3,790	3,095	3,687
Nontaxable	1,744	2,414	2,970
Dividends	447	271	283
TOTAL INTEREST AND DIVIDEND INCOME	56,758	48,093	43,005
INTEREST EXPENSE:
Deposits	6,910	4,625	4,247
Borrowed funds	2,664	1,214	794
TOTAL INTEREST EXPENSE	9,574	5,839	5,041
NET INTEREST INCOME	47,184	42,254	37,964
Provision for loan losses	1,925	2,540	1,520
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	45,259	39,714	36,444
NON-INTEREST INCOME:
Revenue from customers	6,512
Available for sale security gains (losses), net	(19)	1,035	255
Gains on loans sold	382	578	449
Earnings on bank owned life insurance	622	660	688
Other	588	537	587
TOTAL NON-INTEREST INCOME	7,735	8,656	7,899
NON-INTEREST EXPENSES:
Salaries and employee benefits	19,094	17,655	16,533
Occupancy	2,126	1,988	1,900
Furniture and equipment	536	603	644
Professional and legal fees	1,925	1,299	1,200
Federal depository insurance	417	385	572
Pennsylvania shares tax	835	705	690
Amortization of intangibles	296	297	327
Merger and acquisition	0	165	0
ORE expenses	158	395	283
Other	6,170	5,822	6,522
TOTAL NON-INTEREST EXPENSES	31,557	29,314	28,671
Income before provision for income taxes	21,437	19,056	15,672
Provision for income taxes	3,403	6,031	3,034
NET INCOME	$ 18,034	$ 13,025	$ 12,638
PER COMMON SHARE DATA:
NET INCOME - BASIC (in dollars per share)	$ 5.14	$ 3.70	$ 3.57
NET INCOME - DILUTED (in dollars per share)	5.14	3.70	3.57
CASH DIVIDENDS PER SHARE (in dollars per share)	$ 1.74	$ 1.65	$ 1.57
Number of shares used in computation - basic (in shares)	3,505,218	3,515,638	3,541,769
Number of shares used in computation - diluted (in shares)	3,507,206	3,517,362	3,543,325
Service Charges [Member]
NON-INTEREST INCOME:
Revenue from customers	$ 4,667	$ 4,456	$ 4,461
Trust [Member]
NON-INTEREST INCOME:
Revenue from customers	705	755	693
Brokerage and Insurance [Member]
NON-INTEREST INCOME:
Revenue from customers	$ 790	$ 635	$ 766

Consolidated Statement of Chang

Consolidated Statement of Changes in Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Changes in Comprehensive Income [Abstract]
Net income	$ 18,034	$ 13,025	$ 12,638
Securities available for sale
Unrealized holding loss during the period	(913)	(1,283)	(1,105)
Income tax (benefit)	(193)	(436)	(375)
Securities available for sale	(720)	(847)	(730)
Reclassification adjustment for (gains) losses included in income	19	(1,035)	(255)
Income tax (benefit)	4	(352)	(87)
Reclassification	15	(683)	(168)
Change in unrecognized pension costs	229	127	(391)
Income tax (benefit)	48	44	(133)
Other comprehensive gain (loss) gain on unrecognized pension costs	181	83	(258)
Net other comprehensive loss	(524)	(1,447)	(1,156)
Comprehensive income	$ 17,510	$ 11,578	$ 11,482

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2015	$ 3,672	$ 40,715	$ 85,790	$ (236)	$ (10,181)	$ 119,760
Balance (in shares) at Dec. 31, 2015	3,671,751
Comprehensive income:
Net income			12,638			12,638
Net other comprehensive income				(1,156)		(1,156)
Stock dividend	$ 32	1,542
Stock dividend			(1,574)			0
Stock dividend (in shares)	32,624
Purchase of treasury stock					(3,227)	(3,227)
Restricted stock, executive and Board of Director awards		(197)			288	91
Restricted stock vesting		184				184
Sale of treasury stock		(1)			60	59
Forfeited restricted stock		4			(4)	0
Cash dividend reinvestment paid from treasury stock		3	(495)		492	0
Cash dividends			(5,081)			(5,081)
Balance at Dec. 31, 2016	$ 3,704	42,250	91,278	(1,392)	(12,572)	123,268
Balance (in shares) at Dec. 31, 2016	3,704,375
Comprehensive income:
Net income			13,025			13,025
Net other comprehensive income				(1,447)		(1,447)
Stock dividend	$ 166	8,857
Stock dividend			(9,023)			0
Stock dividend (in shares)	165,564
Purchase of treasury stock					(979)	(979)
Restricted stock, executive and Board of Director awards		(224)			296	72
Restricted stock vesting		206				206
Sale of treasury stock		0			43	43
Forfeited restricted stock		2			(2)	0
Change in other comprehensive income due to change in the federal tax rate			559	(559)		0
Cash dividend reinvestment paid from treasury stock		17	(680)		663	0
Cash dividends			(5,177)			(5,177)
Balance at Dec. 31, 2017	$ 3,870	51,108	89,982	(3,398)	(12,551)	129,011
Balance (in shares) at Dec. 31, 2017	3,869,939
Comprehensive income:
Change in Accounting policy for equity securities			(1)	1		0
Net income			18,034			18,034
Net other comprehensive income				(524)		(524)
Stock dividend	$ 34	2,108
Stock dividend			(2,142)			0
Stock dividend (in shares)	34,273
Purchase of treasury stock					(1,175)	(1,175)
Restricted stock, executive and Board of Director awards		(364)			116	(248)
Restricted stock vesting		247				247
Cash dividend reinvestment paid from treasury stock		0	(30)		30	0
Cash dividends			(6,116)			(6,116)
Balance at Dec. 31, 2018	$ 3,904	$ 53,099	$ 99,727	$ (3,921)	$ (13,580)	139,229
Balance (in shares) at Dec. 31, 2018	3,904,212
Comprehensive income:
Change in Accounting policy for equity securities						$ 1

Consolidated Statement of Cha_3

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Changes in Stockholders' Equity [Abstract]
Purchase of treasury stock (in shares)	18,943	17,990	66,110
Cash dividends (in dollars per share)	$ 1.74	$ 1.65	$ 1.57

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities:
Net income	$ 4,515	$ 2,604	$ 18,034	$ 13,025	$ 12,638
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	625	800	1,925	2,540	1,520
Depreciation, amortization and accretion			387	200	320
Amortization and accretion on investment securities			999	1,441	2,302
Deferred income taxes			(435)	1,448	362
Investment securities (gains) losses, net	20	(831)	19	(1,035)	(255)
Earnings on bank owned life insurance			(622)	(660)	(688)
Stock awards			308	278	284
Originations of loans held for sale			(19,153)	(25,305)	(22,237)
Proceeds from sales of loans held for sale			19,696	26,086	21,462
Realized gains on loans sold			(382)	(578)	(449)
(Increase) decrease in accrued interest receivable			(256)	(34)	122
Increase (decrease) in accrued interest payable			179	147	(14)
Other, net			787	(1,814)	827
Net cash provided by operating activities			21,486	15,739	16,194
Available-for-sale securities:
Proceeds from sales of available-for-sale securities			27,149	58,177	22,372
Proceeds from maturity and principal repayments of securities			54,041	60,081	67,782
Purchase of securities			(67,899)	(54,003)	(55,600)
Purchase of equity securities			(425)	0	0
Proceeds from redemption of Regulatory Stock			10,209	7,425	1,556
Purchase of Regulatory Stock			(9,537)	(8,903)	(3,403)
Net increase in loans			(81,113)	(161,127)	(103,915)
Purchase of interest bearing time deposits			(6,457)	(7,301)	0
Proceeds from matured interest bearing time deposits with other banks			0	744	744
Proceeds from sale of interest bearing time deposits with other banks			1,239	3,243	0
Purchase of premises, equipment and software			(500)	(208)	(587)
Proceeds from sale of foreclosed assets held for sale			942	846	973
Acquisition, net of cash paid			0	(4,399)	0
Net cash used in investing activities			(72,351)	(105,425)	(70,078)
Cash Flows from Financing Activities:
Net increase in deposits			80,213	61,560	17,472
Proceeds from long-term borrowings			10	9	543
Repayments of long-term borrowings			(1,000)	(2,000)	(534)
Net increase (decrease) in short-term borrowed funds			(22,480)	36,993	38,022
Purchase of treasury stock			(1,175)	(979)	(3,227)
Purchase of restricted stock			(307)	0	0
Reissuance of treasury stock to employee stock purchase plan			0	43	59
Dividends paid			(6,116)	(5,177)	(5,081)
Net cash provided by financing activities			49,145	90,449	47,254
Net increase (decrease) in cash and cash equivalents			(1,720)	763	(6,630)
Cash and Cash Equivalents at Beginning of Year			18,517	17,754	24,384
Cash and Cash Equivalents at End of Year	16,797	18,517	16,797	18,517	17,754
Supplemental Disclosures of Cash Flow Information:
Interest paid			9,395	5,662	5,055
Income taxes paid			3,050	4,550	2,475
Non-cash activities:
Stock dividend			2,142	9,023	1,574
Real estate acquired in settlement of loans			393	911	599
Investments purchased and not settled included in other liabilities			1,521	0	0
Investments sold and not settled included in other assets			0	0	7,759
Non-cash assets acquired
Goodwill	23,296	23,296	23,296	23,296
S&T State College Branch [Member]
Non-cash assets acquired
Available-for-sale securities	0	0	0	0	0
Interest bearing time deposits with other banks	0	0	0	0	0
Loans	0	39,847	0	39,847	0
Premises and equipment	0	86	0	86	0
Accrued interest receivable	0	74	0	74	0
Bank-owned life insurance	0	0	0	0	0
Intangibles	0	145	0	145	0
Deferred tax asset	0	0	0	0	0
Other assets	0	0	0	0	0
Goodwill	0	2,207	0	2,207	0
Total Non-cash assets acquired	0	42,359	0	42,359	0
Liabilities assumed
Noninterest-bearing deposits	0	37,880	0	37,880	0
Interest-bearing deposits	0	0	0	0	0
Accrued interest payable	0	29	0	29	0
Other liabilities	0	51	0	51	0
Total liabilities assumed	0	37,960	0	37,960	0
Net non-cash liabilities acquired	0	4,399	0	4,399	0
Cash and cash equivalents acquired	$ 0	$ 154	$ 0	$ 154	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Organization Citizens Financial Services, Inc. (individually and collectively, the “Company”) is headquartered in Mansfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, First Citizens Community Bank (the “Bank”), and its wholly owned subsidiary, First Citizens Insurance Agency, Inc. On December 11, 2015, the Company completed its acquisition of The First National Bank of Fredericksburg (FNB). On December 8, 2017, the Bank completed its acquisition of the S&T Bank branch in State College (State College). As of December 31, 2018, the Bank operates twenty six full-service banking branches in Potter, Tioga, Bradford, Clinton, Lebanon, Lancaster, Berks, Schuylkill and Centre counties, Pennsylvania and Allegany County, New York, and a limited branch office in Union county, Pennsylvania. The Bank also provides trust services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, along with a brokerage division that provides a comprehensive menu of investment services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. The Company and Bank are supervised by the Board of Governors of the Federal Reserve System, while the Bank is subject to additional regulation and supervision by the Pennsylvania Department of Banking. A summary of significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows: Basis of Presentation The financial statements are consolidated to include the accounts of the Company and its subsidiary, First Citizens Community Bank, and its subsidiary, First Citizens Insurance Agency, Inc. These statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. Use of Estimates In preparing the financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to determination of the allowance for loan losses, pension plans and deferred tax assets and liabilities. Operating Segments An operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While the Company’s chief decision makers monitor the revenue streams of the various Company’s products, services and regions, operations are managed and financial performance is evaluated on a Company-wide basis. Consistent with our internal reporting, the Company’s business activities are reported as one segment, which is community banking. Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short term borrowing transactions. Interest bearing time deposits with other banks are not included with cash and cash equivalents as the original maturities were greater than 90 days. Investment Securities Investment securities at the time of purchase are classified as one of the three following types: Held-to-Maturity Securities Trading Securities Available-for-Sale Securities The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Debt securities are periodically reviewed for other-than-temporary impairment. The fair value of investments, except certain state and municipal securities, is based on bid prices published in financial newspapers or bid quotations received from securities dealers. The fair value of certain state and municipal securities is not readily available through market sources other than dealer quotations, so fair value is based on quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued. Equity Securities – Common stock of the Federal Reserve Bank, Federal Home Loan Bank of Pittsburgh (FHLB) and correspondent banks represent ownership in institutions which are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified as other assets. Loans Held for Sale Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management’s intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value. Loans Interest on all loans is recognized on the accrual basis based upon the principal amount outstanding. The accrual of interest income on loans is discontinued when, in the opinion of management, doubt exists as to the ability to collect such interest. Payments received on non-accrual loans are applied to the outstanding principal balance or recorded as interest income, depending upon our assessment of our ultimate ability to collect principal and interest. Loans are returned to the accrual status when factors indicating doubtful collectability cease to exist. The Company recognizes nonrefundable loan origination fees and certain direct loan origination costs over the life of the related loan as an adjustment of loan yield using the interest method. Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses which is charged to operations. The provision is based upon management’s periodic evaluation of individual loans, the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses are particularly susceptible to significant change in the near term. Impaired loans are other commercial, other agricultural, municipal, agricultural real estate, commercial real estate loans and certain residential mortgages cross collateralized with commercial relationships for which it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. The Company may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial, agricultural, municipal or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value; or, as a practical expedient in the case of a collateral dependent loan, the difference between the fair value of the collateral and the recorded amount of the loans. Mortgage loans on one to four family properties and all consumer loans are large groups of smaller balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which is defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. The Company allocates the allowance based on the factors described below, which conform to the Company’s loan classification policy. In reviewing risk within the Bank’s loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial real estate (iii) agricultural real estate loans; (iv) construction; (v) consumer loans; (vi) other commercial loans (vii) other agricultural loans and (viii) state and political subdivision loans. Factors considered in this process include general loan terms, collateral, and availability of historical data to support the analysis. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non classified loans. The following qualitative factors are analyzed: • Level of and trends in delinquencies, impaired/classified loans • Change in volume and severity of past due loans • Volume of non-accrual loans • Volume and severity of classified, adversely or graded loans • Level of and trends in charge-offs and recoveries • Trends in volume, terms and nature of the loan portfolio • Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices • Changes in the quality of the Bank’s loan review system • Experience, ability and depth of lending management and other relevant staff • National, state, regional and local economic trends and business conditions • General economic conditions • Unemployment rates • Inflation / CPI • Changes in values of underlying collateral for collateral-dependent loans • Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses. • Existence and effect of any credit concentrations, and changes in the level of such concentrations • Any change in the level of board oversight The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses. Loan Charge-off Policies Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset when the loan is 180 days past due for open-end loans or 120 days past due for closed-end loans unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. TDRs are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Purchased Credit Impaired Loans The Company purchased loans in connection with its acquisition of FNB in 2015 and its acquisition of the State College branch in 2017, some of which showed evidence of credit deterioration as of the acquisition since origination. These purchased credit impaired (PCI) loans were recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan, expected cash flows continue to be estimated. If this subsequent estimated indicated that the present value of expected cash flows is less than the carrying amount, a charge to the allowance for loan loss is made through a provision. If the estimate indicates that the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Such purchased credit impaired loans are accounted for individually, and the Company estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not amortized over the remaining life of the loan (nonaccretable difference). For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan’s face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method. Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell. Prior to foreclosure, as the value of the underlying loan is written down to fair market value of the real estate or other assets to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Operating expenses of such properties, net of related income and losses on disposition, are included in other expenses and gains and losses are included in other non-interest income or other non-interest expense. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed on straight line and accelerated methods over the estimated useful lives of the assets, which range from 3 to 15 years for furniture, fixtures and equipment and 5 to 40 years for building premises. Repair and maintenance expenditures which extend the useful life of an asset are capitalized and other repair expenditures are expensed as incurred. When premises or equipment are retired or sold, the remaining cost and accumulated depreciation are removed from the accounts and any gain or loss is credited to income or charged to expense, respectively. Intangible Assets Intangible assets, other than goodwill, include core deposit intangibles, covenants not to compete and mortgage servicing rights (MSRs). Core deposit intangibles are a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. Covenants not to compete are payments made to former employees as compensation for agreeing not to work for competitors. The core deposit intangibles are being amortized over 10 years using the sum-of-the-years digits method of amortization, while the covenant not to compete is being amortized over four years on a straight line basis. MSR’s arise from the Company originating certain loans for the express purpose of selling such loans in the secondary market. The Company maintains all servicing rights for these loans. The loans held for sale are carried at lower of cost or market. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio and measured annually for impairment. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense. Goodwill The Company utilizes a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company’s reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company may also perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Based on the fair value of the reporting unit, no impairment of goodwill was recognized in 2018, 2017 or 2016. Bank Owned Life Insurance The Company has purchased life insurance policies on certain employees. Prior to January 1, 2015 . Additionally, as a result of the acquisition of FNB, the Company acquired life insurance policies on former FNB employees and directors. The policies obtained as part of the acquisition provide a fixed dollar benefit to the former employee or director beneficiaries, whether or not the insured person is affiliated with the Company at the time of his or her death. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as other non-interest income. The obligation of $648,000 and $578,000 under split-dollar benefit agreements to former employees and directors or their beneficiaries have been recognized as liabilities on the consolidated balance sheet.at December 31, 2018 and 2017. Income Taxes The Company and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax basis of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period. Employee Benefit Plans The Company has noncontributory defined benefit pension plans covering employees hired before January 1, 2007 and employees acquired as part of the FNB acquisition. It is the Company’s policy to fund pension costs on a current basis to the extent deductible under existing tax regulations. Such contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. The Company has a defined contribution, 401(k) plan covering eligible employees. The employee may also contribute to the plan on a voluntary basis, up to a maximum percentage allowable not to exceed the limits of Code Sections 401(k). Under the plan, the Company also makes contributions on behalf of eligible employees, which vest immediately. For employees hired after January 1, 2007, in lieu of the pension plan, an additional annual discretionary 401(k) plan contribution is made and is equal to a percentage of an employee’s base compensation. The Company also has a profit-sharing plan for employees which provide tax-deferred salary savings to plan participants. The Company has a deferred compensation plan for directors who have elected to defer all or portions of their fees until their retirement or termination from service. The Company has a restricted stock plan which covers eligible employees and non-employee corporate directors. Under the plan, awards are granted based upon performance related requirements and are subject to certain vesting criteria. Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period. The Company has an employee stock purchase plan that allows employees to withhold money from their paychecks, which is then utilized to purchase shares of the Company’s stock on either the open market or through treasury stock, if shares are unavailable on the open market. The Company maintains a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Company’s noncontributory defined benefit pension plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Company. Expenses under the SERP are recognized as earned over the expected years of service. The Company The Deferred Compensation Plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the Deferred Compensation Plan are payable from the general assets of the Company. Expenses under the Deferred Compensation Plan are recognized as earned over the expected years of service. Advertising Costs Advertising costs are generally expensed as incurred and amounted to $361,000, $343,000 and $356,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Comprehensive Loss The Company is required to present comprehensive income in a full set of general purpose financial statements for all periods presented. Other comprehensive loss is comprised of unrealized holding gains (losses) on the available-for-sale securities portfolio and unrecognized pension costs. Recent Accounting Pronouncements - Adopted In May 2014,the Financial Accounting Standards Board ("FASB") issued Ac counting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which was subsequently amended, modified, and/or clarified with ASU 2015-14, 2016-08, 2016-10, 2016-12, 2017-05, and 2017-10. The standard In January 2016, the FASB finalized ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $1,000 between accumulated other comprehensive income and retained earnings on the consolidated balance sheet for the fair value of equity securities included in accumulated other comprehensive income as of the beginning of the period. The adjustment had no impact on net income on any prior periods presented. The Company has adopted this standard during the reporting period on a prospective basis. The Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 18 to the financial statements. The December 31, 2018 fair value of each class of financial instruments disclosure did utilize the exit price notion when measuring fair value and, therefore, may not be comparable to the December 3l, 2017 disclosure. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 71S). The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. The Company adopted the standard on January 1, 2018, which resulted in a reclassification of $(199)and ($123) from Salaries and employee benefits into other noninterest expenses on the Consolidated Statement of Income for the years ended December 31, 2017 and 2016, respectively. See Note 11 for additional information on the presentation of these pension cost components. Recent Accounting Pronouncements – Not yet effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. “Leases (Topic 842) - Targeted Improvements,” ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors,” In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This Update is not expected to have a significant impact on the Company’s financial statements. ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118, to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 12 - Income Taxes. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20). ember 15, 2021. This Update is not expected to have a significant impact on the Company’s consolidated financial statements. Treasury Stock The purchase of the Company’s common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a last-in-first-out basis. Cash Flows The Company utilizes the net reporting of cash receipts and cash payments for deposit, short-term borrowing and lending activities. The Company considers amounts due from banks and interest-bearing deposits in banks as cash equivalents. Trust Assets and Income Assets held by the Company in a fiduciary or agency capacity for its customers are not included in the consolidated financial statements since such items are not assets of the Company. Earnings Per Share The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. 2018 2017 2016 Basic earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding 3,505,218 3,515,638 3,541,769 Earnings per share - basic $ 5.14 $ 3.70 $ 3.57 Diluted earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding for basic earnings per share 3,505,218 3,515,638 3,541,769 Add: Dilutive effects of restricted stock 1,988 1,724 1,556 Weighted average common shares outstanding for dilutive earnings per share 3,507,206 3,517,362 3,543,325 Earnings per share - dilutive $ 5.14 $ 3.70 $ 3.57 Nonvested shares of restricted stock totaling 3,201, 3,403 and 3,087 were outstanding during 2018, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. These anti-dilutive shares had per share prices ranging

REVENUE RECOGNITION

REVENUE RECOGNITION	12 Months Ended
	Dec. 31, 2018
REVENUE RECOGNITION [Abstract]
REVENUE RECOGNITION	2. REVENUE RECOGNITION Effective January 1, 2018, the Company adopted Accounting Standards Update ASU 2014-09 Revenue from Contracts with Customers – Topic 606 • Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. • Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers’ accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer’s assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction. • Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset. • Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company’s performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer’s portfolio and is not dependent on certain return or performance level of the customer’s portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price. The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows for the year ended December 31, 2018 (in thousands). All revenue in the table below relates to goods and services transferred at a point in time. Revenue stream Service charges on deposit accounts Overdraft fees $ 1,551 Statement fees 206 Interchange revenue 2,259 ATM income 400 Other service charges 251 Total Service Charges 4,667 Trust 705 Brokerage and insurance 790 Other 350 Total $ 6,512

RESTRICTIONS ON CASH AND DUE FR

RESTRICTIONS ON CASH AND DUE FROM BANKS	12 Months Ended
	Dec. 31, 2018
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
RESTRICTIONS ON CASH AND DUE FROM BANKS	3. RESTRICTIONS ON CASH AND DUE FROM BANKS The Bank is required to maintain reserves, in the form of cash balances with the Federal Reserve Bank, against its deposit liabilities. The amount of such reserves was $2,751,000 and $2,645,000 at December 31, 2018 and 2017, respectively. Non-retirement account deposits with one financial institution are insured up to $250,000. At times, the Company maintains cash and cash equivalents with other financial institutions in excess of the insured amount.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2018
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	4. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, and fair value of investment securities at December 31, 2018 and 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 106,516 $ 509 $ (640 ) $ 106,385 U.S. Treasuries 33,813 - (455 ) 33,358 Obligations of state and political subdivisions 52,074 150 (177 ) 52,047 Corporate obligations 3,000 34 - 3,034 Mortgage-backed securities in government sponsored entities 46,839 59 (712 ) 46,186 Total available-for-sale securities $ 242,242 $ 752 $ (1,984 ) $ 241,010 Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. Treasuries 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782 The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2018 and 2017 (in thousands). As of December 31, 2018, the Company owned 110 securities each of whose fair value was less than its cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized 2018 Value Losses Value Losses Value Losses U.S. agency securities $ 5,981 $ (5 ) $ 52,673 $ (635 ) $ 58,654 $ (640 ) U.S. Treasuries 4,948 (31 ) 28,410 (424 ) 33,358 (455 ) Obligations of states and political subdivisions 8,979 (22 ) 12,441 (155 ) 21,420 (177 ) Mortgage-backed securities in government sponsored entities 5,272 (18 ) 32,570 (694 ) 37,842 (712 ) Total securities $ 25,180 $ (76 ) $ 126,094 $ (1,908 ) $ 151,274 $ (1,984 ) 2017 U.S. agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. Treasuries 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 ) As of December 31, 2018, the Company’s investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, U.S Treasury securities, obligations of states and political subdivisions and mortgage backed securities in government sponsored entities. For fixed maturity available for sale investments As of December 31, 2018 and 2017, the Company had concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or company-specific rating changes that are not expected to result in the non-collection of principal and interest during the period. Proceeds from sales of securities available-for-sale during 2018, 2017 and 2016 were $27,149,000, $58,177,000, and $22,372,000, respectively. The gross gains realized during 2018 consisted of $160,000 from the sale of fourteen municipal securities. The gross losses realized during 2018 consisted of $179,000 from the sale of seven agency securities. The gross gains realized during 2017 consisted of $23,000, $20,000, $13,000 and $1,149,000 from the sales of ten agency securities, one mortgage backed security, thirteen interest bearing time deposits with other banks and five equity security positions. The gross losses realized during 2017 consisted of $170,000 from the sale of fourteen agency securities. The gross gains realized during 2016 consisted of $72,000, $27,000, $80,000 and $133,000 from the sales of four agency securities, two US treasury notes, four municipal securities and portions of three equity security positions, respectively. The gross losses realized during 2016 consisted of $22,000 and $35,000 from the sales of four agency securities and six corporate securities. Gross gains and gross losses were realized as follows on available for sale securities (in thousands): 2018 2017 2016 Gross gains $ 160 $ 1,205 $ 312 Gross losses (179 ) (170 ) (57 ) Net (losses) gains $ (19 ) $ 1,035 $ 255 The Company’s portfolio of equity securities experienced no net gain or loss during the year. Investment securities with an approximate carrying value of $221,191,000 and $243,382,000 at December 31, 2018 and 2017, respectively, were pledged to secure public funds and certain other deposits as provided by law and certain borrowing arrangements of the Company. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of debt securities at December 31, 2018, by contractual maturity are shown below (in thousands). Municipal securities that have been refunded and will therefore pay-off on the call date are reflected in the table below utilizing the call date as the date of repayment as payment is guaranteed on that day: Amortized Cost Fair Value Available-for-sale securities: Due in one year or less $ 23,212 $ 23,138 Due after one year through five years 111,439 110,666 Due after five years through ten years 55,904 55,838 Due after ten years 51,687 51,368 Total $ 242,242 $ 241,010

LOANS AND RELATED ALLOWANCE FOR

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2018
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES	5. LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES The Company grants commercial, industrial, agricultural, residential, and consumer loans primarily to customers throughout north central and south central Pennsylvania and southern New York. Although the Company has a diversified loan portfolio at December 31, 2018 and 2017, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio, as well as how those segments are analyzed within the allowance for loan losses as of December 31, 2018 and 2017 (in thousands): 2018 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 215,305 $ 890 $ 28 $ 214,387 Commercial 319,265 13,327 1,321 304,617 Agricultural 284,520 5,592 - 278,928 Construction 33,913 - - 33,913 Consumer 9,858 - - 9,858 Other commercial loans 74,118 2,206 510 71,402 Other agricultural loans 42,186 1,435 - 40,751 State and political subdivision loans 102,718 - - 102,718 Total 1,081,883 23,450 1,859 1,056,574 Allowance for loan losses 12,884 676 - 12,208 Net loans $ 1,068,999 $ 22,774 $ 1,859 $ 1,044,366 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709 As of December 31, 2018 and 2017, net unamortized loan fees and costs of $918,000 and $794,000, respectively, were included in the carrying value of loans. Upon acquisition, the Company evaluated whether an acquired loan was within the scope of ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased credit-impaired (“PCI”) loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. The fair value of PCI loans, on the acquisition date, was determined, primarily based on the fair value of the loans’ collateral. The carrying value of PCI loans was $1,859,000 and $2,638,000 at December 31, 2018 and December 31, 2017, respectively. The carrying value of the PCI loans was determined by projected discounted contractual cash flows. On the acquisition date, the unpaid principal balance for all PCI loans was $6,969,000 and the estimated fair value of the loans was $3,809,000. Total contractually required payments on these loans, including interest, at the acquisition date was $9,913,000. However, the Company’s preliminary estimate of expected cash flows was $4,474,000. At such date, the Company established a credit risk related non-accretable discount (a discount representing amounts which are not expected to be collected from the customer nor liquidation of collateral) of $5,439,000 relating to these PCI loans, reflected in the recorded net fair value. Such amount is reflected as a non-accretable fair value adjustment to loans. The Company further estimated the timing and amount of expected cash flows and established an accretable discount of $665,000 on the acquisition date relating to these PCI loans. Changes in the amortizable yield for PCI loans were as follows for the years ended December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Balance at beginning of period $ 106 $ 389 Accretion (95 ) (632 ) Reclassification of non-accretable discount 93 349 Balance at end of period $ 104 $ 106 The following table presents additional information regarding PCI loans (in thousands): December 31, 2018 December 31, 2017 Outstanding balance $ 4,529 $ 5,295 Carrying amount 1,859 2,638 Real estate loans serviced for Freddie Mac, Fannie Mae and the FHLB, which are not included in the Consolidated Balance Sheet, totaled $147,072,000 and $142,972,000 at December 31, 2018 and 2017, respectively. Loans sold to Freddie Mac and Fannie Mae were sold without recourse and total $122,219,000 and $114,643,000 at December 31, 2018 and 2017, The segments of the Bank’s loan portfolio are disaggregated into classes to a level that allows management to monitor risk and performance. Residential real estate mortgages consists of 15 to 30 year first mortgages on residential real estate, while residential real estate home equities are consumer purpose installment loans or lines of credit secured by a mortgage which is often a second lien on residential real estate with terms of 15 years or less. Commercial real estate are business purpose loans secured by a mortgage on commercial real estate. Agricultural real estate are loans secured by a mortgage on real estate used in agriculture production. Construction real estate are loans secured by residential or commercial real estate used during the construction phase of residential and commercial projects. Consumer loans are typically unsecured or primarily secured by collateral other than real estate and overdraft lines of credit connected with customer deposit accounts. Other commercial loans are loans for commercial purposes primarily secured by non-real estate collateral. Other agricultural loans are loans for agricultural purposes primarily secured by non real estate collateral. State and political subdivisions are loans for state and local municipalities for capital and operating expenses or tax free loans used to finance commercial development. Management considers other commercial loans, other agricultural loans, commercial and agricultural real estate loans and state and political subdivision loans which are 90 days or more past due to be impaired. C ertain residential mortgages, home equity and consumer loans that are cross collateralized with commercial relationships determined to be impaired may be classified as impaired as well. The following table includes the recorded investment and unpaid principal balances for impaired loans by class, with the associated allowance amount as of December 31, 2018 and 2017, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2018 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 932 $ 515 $ 288 $ 803 $ 10 Home Equity 106 12 75 87 14 Commercial 16,326 11,933 1,394 13,327 216 Agricultural 5,598 2,386 3,206 5,592 84 Other commercial loans 2,711 1,836 370 2,206 193 Other agricultural loans 1,487 120 1,315 1,435 159 Total $ 27,160 $ 16,802 $ 6,648 $ 23,450 $ 676 Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 The following table includes the average investment in impaired loans and the income recognized on impaired loans for 2018, 2017 and 2016 (in thousands): Interest Average Interest Income Recorded Income Recognized 2018 Investment Recognized Cash Basis Real estate loans: Mortgages $ 944 $ 13 $ - Home Equity 95 4 - Commercial 13,907 506 20 Agricultural 4,736 151 - Consumer 1 - - Other commercial loans 3,659 89 - Other agricultural loans 1,401 23 - Total $ 24,743 $ 786 $ 20 Interest Average Interest Income Recorded Income Recognized 2017 Investment Recognized Cash Basis Real estate loans: Mortgages $ 900 $ 13 $ - Home Equity 67 4 - Commercial 11,567 385 7 Agricultural 3,574 131 - Consumer 3 - - Other commercial loans 4,790 152 52 Other agricultural loans 1,491 65 - Total $ 22,392 $ 750 $ 59 Interest Average Interest Income Recorded Income Recognized 2016 Investment Recognized Cash Basis Real estate loans: Mortgages $ 590 $ 13 $ - Home Equity 59 4 - Commercial 5,959 69 1 Agricultural 361 17 - Consumer - - - Other commercial loans 5,715 87 6 Other agricultural loans 190 11 - Total $ 12,874 $ 201 $ 7 Credit Quality Information For commercial real estate, agricultural real estate, construction, other commercial, other agricultural loans and state and political subdivision loans, management uses a nine point internal risk rating system to monitor the credit quality. • Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. • Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. • Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. • Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Bank’s loan rating process includes several layers of internal and external oversight. The Company’s loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the supervision of management. All commercial and agricultural loans are reviewed annually to ensure the appropriateness of the loan grade. In addition, the Bank engages an external consultant on at least an annual basis. The external consultant is engaged to 1) review a minimum of 50% of the dollar volume of the commercial loan portfolio on an annual basis, 2) review new loans originated over $1.0 million in the last years, 3) review a majority of borrowers with commitments greater than or equal to $1.0 million, 4) review selected loan relationships over $750,000 which are over 30 days past due, or classified Special Mention, Substandard, Doubtful, or Loss, and 5) such other loans which management or the consultant deems appropriate. The following tables represent credit exposures by internally assigned grades as of December 31, 2018 and 2017 (in thousands) Pass Special Mention Substandard Doubtful Loss Ending Balance 2018 Real estate loans: Commercial $ 297,690 $ 10,792 $ 10,743 $ 40 $ - $ 319,265 Agricultural 264,732 10,017 9,771 - - 284,520 Construction 33,913 - - - - 33,913 Other commercial loans 70,425 777 2,800 116 - 74,118 Other agricultural loans 38,628 1,724 1,834 - - 42,186 State and political subdivision loans 92,666 9,481 571 - - 102,718 Total $ 798,054 $ 32,791 $ 25,719 $ 156 $ - $ 856,720 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 For residential real estate mortgages, home equities and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below and all loans past due 90 or more days. The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2018 and 2017 ( in thousands) 2018 Performing Non-performing PCI Total Real estate loans: Mortgages $ 155,360 $ 1,099 $ 28 $ 156,487 Home Equity 58,736 82 - 58,818 Consumer 9,832 26 - 9,858 Total $ 223,928 $ 1,207 $ 28 $ 225,163 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - 60,134 Consumer 9,895 49 - 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423 Aging Analysis of Past Due Loans by Class Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due loans as of December 31, 2018 and 2017 (in thousands): 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days Past Due 2018 Past Due Past Due Or Greater Due Current PCI Receivables And Accruing Real estate loans: Mortgages $ 483 $ 789 $ 686 $ 1,958 $ 154,501 $ 28 $ 156,487 $ 20 Home Equity 257 108 63 428 58,390 - 58,818 - Commercial 999 631 4,706 6,336 311,608 1,321 319,265 36 Agricultural 121 - 3,184 3,305 281,215 - 284,520 - Construction - - - - 33,913 - 33,913 - Consumer 37 14 12 63 9,795 - 9,858 12 Other commercial loans 141 53 2,061 2,255 71,353 510 74,118 - Other agricultural loans - - 1,201 1,201 40,985 - 42,186 - State and political subdivision loans - - - - 102,718 - 102,718 - Total $ 2,038 $ 1,595 $ 11,913 $ 15,546 $ 1,064,478 $ 1,859 $ 1,081,883 $ 68 Loans considered non-accrual $ 72 $ 253 $ 11,845 $ 12,170 $ 1,554 $ - $ 13,724 Loans still accruing 1,966 1,342 68 3,376 1,062,924 1,859 1,068,159 Total $ 2,038 $ 1,595 $ 11,913 $ 15,546 $ 1,064,478 $ 1,859 $ 1,081,883 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days Past Due 2017 Past Due Past Due Or Greater Due Current PCI Receivables and Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 Nonaccrual Loans Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans or if full payment of principal and interest is not expected. The following table reflects the loans on nonaccrual status as of December 31, 2018 and 2017, respectively. The balances are presented by class of loan (in thousands): 2018 2017 Real estate loans: Mortgages $ 1,079 $ 1,274 Home Equity 82 112 Commercial 5,957 5,192 Agricultural 3,206 175 Construction - 133 Consumer 14 42 Other commercial loans 2,185 2,637 Other agricultural loans 1,201 606 $ 13,724 $ 10,171 Interest income on loans would have increased by approximately $961,000, $709,000 and $603,000 during 2018. 2017 and 2016, respectively, if these loans had performed in accordance with their terms. Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring by calculating the present value of the revised loan terms and comparing this balance to the Company’s investment in the loan prior to the restructuring. As these loans are individually evaluated, they are excluded from pooled portfolios when calculating the allowance for loan and lease losses and a separate allocation within the allowance for loan and lease losses is provided. Management continually evaluates loans that are considered TDRs, including payment history under the modified loan terms, the borrower’s ability to continue to repay the loan based on continued evaluation of their operating results and cash flows from operations. Based on this evaluation management would no longer consider a loan to be a TDR when the relevant facts support such a conclusion. As of December 31, 2018, 2017 and 2016, included within the allowance for loan losses are reserves of $255,000, $41,000 and $29,000, respectively, that are associated with loans modified as TDRs . Loan modifications that are considered TDRs completed during the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment 2018 Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 7 $ - $ 7 Home Equity - 1 - 1 - 1 Commercial - 2 - 683 - 683 Agricultural - 5 - 3,209 - 3,209 Other agricultural loans - 4 - 176 - 176 Total - 13 $ - $ 4,076 $ - $ 4,076 2017 Real estate loans: Home Equity - 1 $ - $ 25 $ - $ 25 Commercial - 5 - 7,021 - 7,021 Agricultural - 4 - 1,475 - 1,475 Other commercial loans - 1 - 9 - 9 Other agricultural loans - 1 - 161 - 161 Total - 12 $ - $ 8,691 $ - $ 8,691 2016 Real estate loans: Commercial - 4 $ - $ 1,188 $ - $ 1,188 Agricultural - 5 - 1,956 - 1,956 Other commercial loans - 3 - 3,076 - 3,076 Other agricultural loans - 7 - 1,558 - 1,558 Total - 19 $ - $ 7,778 $ - $ 7,778 Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans. The following table presents the recorded investment in loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2018, 2017 and 2016, respectively, and that subsequently defaulted during these reporting periods (dollars in thousands): December 31, 2018 December 31, 2017 December 31, 2016 Number of contracts Recorded investment Number of contracts Recorded investment Number of contracts Recorded investment Real estate loans: Commercial 2 $ 683 - $ - - $ - Agricultural 2 1,325 - - - - Other agricultural loans 1 161 2 632 - - Total recidivism 5 $ 2,169 2 $ 632 - $ - Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the Consolidated Balance Sheet. As of December 31, 2018 and 2017 included with other assets are $601,000, and $1,119,000, respectively, of foreclosed assets. As of December 31, 2018, included within the foreclosed assets is $197,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of December 31, 2018, the Company has initiated formal foreclosure proceedings on $2,635,000 of consumer residential mortgages, which have not yet been transferred into foreclosed assets. Allowance for Loan Losses The following tables roll forward the balance of the allowance for loan and lease losses for the years ended December 31, 2018, 2017 and 2016 and is segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2018, 2017 and 2016 (in thousands): Balance at December 31, 2017 Charge-offs Recoveries Provision Balance at December 31, 2018 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,049 $ (118 ) $ 69 $ 105 $ 1,105 $ 24 $ 1,081 Commercial 3,867 (66 ) 3 311 4,115 216 3,899 Agricultural 3,143 - - 1,121 4,264 84 4,180 Construction 23 - - 35 58 - 58 Consumer 124 (40 ) 31 5 120 - 120 Other commercial loans 1,272 (91 ) 30 143 1,354 193 1,161 Other agricultural loans 492 (50 ) 1 309 752 159 593 State and political subdivision loans 816 - - (54 ) 762 - 762 Unallocated 404 - - (50 ) 354 - 354 Total $ 11,190 $ (365 ) $ 134 $ 1,925 $ 12,884 $ 676 $ 12,208 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,064 $ (107 ) $ - $ 92 $ 1,049 $ 56 $ 993 Commercial 3,589 (41 ) 11 308 3,867 94 3,773 Agricultural 1,494 (30 ) - 1,679 3,143 3 3,140 Construction 47 - - (24 ) 23 - 23 Consumer 122 (130 ) 49 83 124 - 124 Other commercial loans 1,327 - 16 (71 ) 1,272 231 1,041 Other agricultural loans 312 (5 ) 1 184 492 26 466 State and political subdivision loans 833 - - (17 ) 816 - 816 Unallocated 98 - - 306 404 - 404 Total $ 8,886 $ (313 ) $ 77 $ 2,540 $ 11,190 $ 410 $ 10,780 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 905 $ (85 ) $ - $ 244 $ 1,064 $ 32 $ 1,032 Commercial 3,376 (100 ) 479 (166 ) 3,589 45 3,544 Agricultural 409 - - 1,085 1,494 54 1,440 Construction 24 - - 23 47 - 47 Consumer 102 (100 ) 88 32 122 - 122 Other commercial loans 1,183 (55 ) 33 166 1,327 326 1,001 Other agricultural loans 122 - - 190 312 30 282 State and political - subdivision loans 593 - - 240 833 - 833 Unallocated 392 - - (294 ) 98 - 98 Total $ 7,106 $ (340 ) $ 600 $ 1,520 $ 8,886 $ 487 $ 8,399 As discussed in Footnote 1, management evaluates various qualitative factors on a quarterly basis. The following are explanations for the changes in the allowance by portfolio segments: 2018 Residential - There was a slight increase in the historical loss factor for residential loans when comparing 2017 and 2018. The specific reserve for residential loans decreased slightly between 2017 and 2018. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for residential loan categories due to a decrease in the unemployment rates in the local economy during 2018. Commercial real estate– There was no change in the historical loss factor for commercial real estate loans from 2017 to 2018. Agricultural real estate – There was no change in the historical loss factor for agricultural real estate loans from 2017 to 2018. The specific reserve for agricultural real estate loans increased from 2017 to 2018. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was increased for agricultural real estate due to an increase in classified and past due loans. The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses, was increased for agricultural real estate due to the prices received for products sold in relation to costs to produce, specifically in the dairy economy in 2018 which negatively affected customer earnings. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for agricultural real estate loans due to a decrease in the unemployment rates in the local economy during 2018. Other commercial - There was an increase in the historical loss factor for other commercial loans when comparing 2017 and 2018. The specific reserve for other commercial loans decreased from 2017 to 2018. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other commercial loans due to a decrease in the unemployment rates in the local economy during 2018. Other agricultural - There was an increase in the historical loss factor for other agricultural loans from 2017 to 2018. The specific reserve for other agricultural loans increased from 2017 to 2018. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other agricultural loans due to an increase in past due loans. The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses, was increased for other agricultural loans due to the prices received for products sold in relation to costs to produce, specifically in the dairy economy in 2018 which negatively affected customer earnings. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other agricultural loan categories due to a decrease in the unemployment rates in the local economy during 2018. Municipal loans - There was no change in the historical loss factor or specific reserve for municipal loans from 2017 to 2018. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for municipal loans due to a decrease in the unemployment rates in the local economy during 2018. 2017 Residential - There was an increase in the historical loss factor for residential loans when comparing 2016 and 2017. The specific reserve for residential loans increased slightly between 2016 and 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for residential loans due to an increase in past due. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for residential loan categories due to an decrease in the unemployment rates in the local economy during 2017. Commercial real estate– There was a decrease in the historical loss factor for commercial real estate loans when comparing 2016 and 2017. The specific reserve for commercial real estate loans increased slightly between 2016 and 2017. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for all commercial real estate loans due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for changes in the levels of and trends in delinquencies, impaired and classified loans was decreased due to a lower amount of substandard loans. Agricultural real estate – There was an increase in the historical loss factor for agricultural real estate loans from 2016 to 2017. The specific reserve for agricultural real estate loans decreased from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was increased for agricultural real estate due to an increase in classified loans. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for agricultural real estate loans due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were increased for agricultural real estate loans due to growth in these loan categories. Other commercial - There was a decrease in the historical loss factor for other commercial loans when comparing 2016 and 2017. The specific reserve for other commercial loans decreased from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was decreased due to the decrease in non-accrual loans and past due loans. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other commercial loans due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were decreased for other commercial loans due to limited organic growth in these loan categories. Other agricultural - There was an increase in the historical loss factor for other agricultural loans from 2016 to 2017. The specific reserve for other agricultural loans decreased slightly from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other agricultural loans due to an increase in past due, non-accrual and substandard loans. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other agricultural loan categories due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were increased for other agricultural loans due to growth in these loan categories. Municipal loans - There was no change in the historical loss factor or specific reserve for municipal loans from 2016 to 2017. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for municipal loans due to a decrease in the unemployment rates in the local economy during 2017. 2016 Residential - There was an increase in the historical loss factor for residential loans when comparing 2015 and 2016. The specific reserve for residential loans decreased slightly between 2015 and 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for residential loans due to an increase in past due, non-accrual and classified loans. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for residential loan categories due to an increase in the unemployment rates in the local economy during 2016. Commercial real estate– There was a decrease in the historical loss factor for commercial real estate loans when comparing 2015 and 2016. The specific reserve for commercial real estate loans decreased slightly between 2015 and 2016. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for all commercial real estate loans due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for changes in quality of the institutions loan review system were increased for commercial real estate loans due to the addition of new staff and processes. Agricultural real estate – There was no change in the historical loss factor for agricultural real estate loans from 2015 to 2016. The specific reserve for agricultural real estate loans increased from 2015 to 2016. The qualitative factors for changes in levels of and trends in delin

PREMISES & EQUIPMENT

PREMISES & EQUIPMENT	12 Months Ended
	Dec. 31, 2018
PREMISES & EQUIPMENT [Abstract]
PREMISES & EQUIPMENT	6. PREMISES & EQUIPMENT Premises and equipment at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 2017 Land $ 5,110 $ 5,110 Buildings 17,496 17,402 Furniture, fixtures and equipment 6,798 6,698 Construction in process 300 16 29,704 29,226 Less: accumulated depreciation 13,431 12,703 Premises and equipment, net $ 16,273 $ 16,523 Depreciation expense amounted to $751,000, $776,000 and $763,000 for 2018, 2017 and 2016, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	7. GOODWILL AND OTHER INTANGIBLE ASSETS The following table provides the gross carrying value and accumulated amortization of intangible assets as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,725 $ (1,066 ) $ 659 $ 1,605 $ (912 ) $ 693 Core deposit intangibles 1,786 (851 ) 935 1,786 (586 ) 1,200 Covenant not to compete 125 (96 ) 29 125 (65 ) 60 Total amortized intangible assets $ 3,636 $ (2,013 ) $ 1,623 $ 3,516 $ (1,563 ) $ 1,953 Unamortized intangible assets: Goodwill $ 23,296 $ 23,296 (1) Excludes fully amortized intangible assets The following table provides the current year and estimated future amortization expense for the next five years of amortized intangible assets (in thousands). We based our projections of amortization expense shown below on existing asset balances at December 31, 2018. Future amortization expense may vary from these projections: MSRs Core deposit intangibles Covenant not to compete Total Year ended December 31, 2018 (actual) $ 184 $ 265 $ 31 $ 480 Estimate for year ending December 31, 2019 181 230 29 440 2020 143 197 - 340 2021 111 165 - 276 2022 83 133 - 216 2023 60 100 - 160

FEDERAL HOME LOAN BANK (FHLB) S

FEDERAL HOME LOAN BANK (FHLB) STOCK	12 Months Ended
	Dec. 31, 2018
FEDERAL HOME LOAN BANK (FHLB) STOCK [Abstract]
FEDERAL HOME LOAN BANK (FHLB) STOCK	8. FEDERAL HOME LOAN BANK (FHLB) STOCK As a member of the FHLB of Pittsburgh, the Bank is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of December 31, 2018 and 2017, the Bank held $5,348,000 and $6,021,000, respectively, of FHLB stock.

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2018
DEPOSITS [Abstract]
DEPOSITS	9. DEPOSITS The following table shows the breakdown of deposits as of December 31, 2018 and 2017, by deposit type (in thousands): 2018 2017 Non-interest-bearing deposits $ 179,971 $ 171,840 NOW accounts 336,756 337,307 Savings deposits 205,334 184,057 Money market deposit accounts 164,625 145,287 Certificates of deposit 298,470 266,452 Total $ 1,185,156 $ 1,104,943 Certificates of deposit of $250,000 or more amounted to $67,191,000 and $62,561,000 at December 31, 2018 and 2017, respectively. Following are maturities of certificates of deposit as of December 31, 2018 (in thousands): 2019 $ 135,301 2020 64,136 2021 44,387 2022 34,410 2023 17,332 Thereafter 2,904 Total certificates of deposit $ 298,470

BORROWED FUNDS AND REPURCHASE A

BORROWED FUNDS AND REPURCHASE AGREEMENTS	12 Months Ended
	Dec. 31, 2018
BORROWED FUNDS AND REPURCHASE AGREEMENTS [Abstract]
BORROWED FUNDS AND REPURCHASE AGREEMENTS	10. BORROWED FUNDS AND REPURCHASE AGREEMENTS The following table shows the breakdown of borrowed funds as of December 31, 2018 and 2017 (dollars in thousands): Securities Sold Under Total Agreements to FHLB Federal Funds FRB Notes Term Borrowed Repurchase(a) Advances(b) Lines (c) BIC Line (d) Payable(e) Loans(f) Funds 2018 Balance at December 31 $ 17,983 $ 52,186 $ - $ - $ 7,500 $ 13,525 $ 91,194 Highest balance at any month-end 17,983 114,817 - - 7,500 14,525 154,825 Average balance 15,226 81,123 - 12 7,500 14,051 117,912 Weighted average interest rate: Paid during the year 1.77 % 2.06 % 2.38 % 2.47 % 5.03 % 2.44 % 2.26 % As of year-end 2.19 % 2.62 % 0.00 % 0.00 % 5.56 % 2.40 % 2.74 % 2017 Balance at December 31 $ 14,989 $ 77,650 $ - $ - $ 7,500 $ 14,525 $ 114,664 Highest balance at any month-end 16,643 78,858 - - 7,500 16,525 119,526 Average balance 15,598 29,409 1 2 7,500 16,026 68,536 Weighted average interest rate: Paid during the year 0.97 % 1.25 % 1.52 % 1.75 % 4.06 % 2.44 % 1.77 % As of year-end 1.37 % 1.54 % 0.00 % 0.00 % 4.40 % 2.42 % 1.82 % The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31 , 2018 December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2018 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,970 $ - $ - $ 2,008 $ 20,978 Total carrying value of collateral pledged $ 18,970 $ - $ - $ 2,008 $ 20,978 Total liability recognized for repurchase agreements $ 17,983 2017 Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 $ 18,062 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989 (a) We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. (b) FHLB Advances consist of an “Open RepoPlus” agreement with the FHLB of Pittsburgh. FHLB “Open RepoPlus” advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $518,353,000, inclusive of any outstanding advances and letters of credit. FHLB advances are secured by a blanket security agreement that includes the Company’s FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans. (c) The federal funds lines consist of unsecured lines from two third party banks at market rates. The Company has a borrowing limit totaling $34,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings. (d) The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2018 and 2017, the Company has a borrowing limit of $9,797,000 and $4,400,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $28,784,000 and $14,590,000 as of December 31, 2018 and 2017, respectively. (e) In December 2003, the Company formed a special purpose entity (“Entity”) to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company’s minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company’s consolidated financial statements. (f) Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (dollars in thousands): Interest Rate December 31, December 31, Fixed: Maturity 2018 2017 2.72 % July 12, 2018 - 1,000 1.87 % February 4, 2019 2,000 2,000 2.61 % February 3, 2021 2,000 2,000 3.52 % July 12, 2021 2,000 2,000 2.37 % August 20, 2021 2,800 2,800 2.08 % January 6, 2022 4,725 4,725 Total term loans $ 13,525 $ 14,525 Following are maturities of borrowed funds as of December 31, 2018 (in thousands): 2019 $ 78,546 2020 589 2021 7,334 2022 4,725 2023 - Thereafter - Total borrowed funds $ 91,194

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS [Abstract]
EMPLOYEE BENEFIT PLANS	11. EMPLOYEE BENEFIT PLANS Noncontributory Defined Benefit Pension Plan The Bank sponsors a trusteed, noncontributory defined benefit pension plan covering substantially all employees and officers hired prior to January 1, 2007. Additionally, the Bank assumed the noncontributory defined benefit pension plan of FNB when it was acquired during 2015. The FNB plan was frozen prior to the acquisition and therefore, no additional benefits will accrue for employees covered under that plan. These two plans are collectively referred to herein as “the Plans”. The pension plans call for benefits to be paid to eligible employees at retirement based primarily upon years of service with the Bank and compensation rates during employment. Upon retirement or other termination of employment, employees can elect either an annuity benefit or a lump sum distribution of vested benefits in the pension plan. The Bank’s funding policy is to make annual contributions, if needed, based upon the funding formula developed by the pension plans’ actuary. For the years ended December 31, 2018, 2017 and 2016, contributions to the pension plans totaled $0, $3,000,000 and $818,000, respectively. The Board of Directors in 2018 voted to terminate the plan acquired as part of the FNB acquisition, which is expected to be completed in 2019. In lieu of the pension plan, employees with a hire date of January 1, 2007 or later are eligible to receive, after meeting length of service requirements, an annual discretionary 401(k) plan contribution from the Bank equal to a percentage of an employee’s base compensation. The contribution amount is placed in a separate account within the 401(k) plan and is subject to a vesting requirement. Contributions by the Company totaled $151,000, $133,000 and $82,000 for 2018, 2017 and 2016, respectively. The following table sets forth the obligation and funded status of the Plans as of December 31 (in thousands): 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 19,833 $ 18,603 Service cost 359 349 Interest cost 652 671 Actuarial (Gain) / Loss (1,693 ) 1,015 Benefits paid (1,256 ) (805 ) Benefit obligation at end of year 17,895 19,833 Change in plan assets Fair value of plan assets at beginning of year 19,992 15,786 Actual return (loss) on plan assets (524 ) 2,011 Employer contribution - 3,000 Benefits paid (1,256 ) (805 ) Fair value of plan assets at end of year 18,212 19,992 Funded status $ 317 $ 159 Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands): Amounts recognized in accumulated other comprehensive loss consists of: 2018 2017 Net loss $ 3,811 $ 4,088 Prior service cost (80 ) (127 ) Total $ 3,731 $ 3,961 The accumulated benefit obligation for the defined benefit pension plan was $17,895,000 and $19,833,000 at December 31, 2018 and 2017, respectively. The components of net periodic benefit costs for the years ended December 31 are as follows (in thousands): 2018 2017 2016 Affected line item on the Consolidated Statement of Income Service cost $ 359 $ 349 $ 345 Salary and Employee Benefits Interest cost 652 671 692 Other Expenses Return on plan assets (1,126 ) (1,094 ) (1,034 ) Other Expenses Net amortization and deferral 186 224 219 Other Expenses Net periodic benefit cost $ 71 $ 150 $ 222 The estimated net loss and prior service cost that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost (income) in 2019 is $290,000 and $(48,000), respectively. The weighted-average assumptions used to determine benefit obligations at December 31, 2018 and 2017 is summarized in the following table. Due to the decision to terminate the pension plan acquired as part of the FNB acquisition, the discount rate for the plans will be separated for the 2018 disclosure. The rate for 2017 represents a combined rate of the plans. The change in the discount rate is the primary driver of the actuarial gain that occurred in 2018 of $1,693,000. 2018 2017 Discount rate FCCB Plan 4.00 % 3.35 % Discount rate FNB Plan 3.49 % 3.35 % Rate of compensation increase 3.00 % 3.00 % The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31: 2018 2017 2016 Discount rate 3.35 % 3.78 % 3.94 % Expected long-term return on plan assets FCCB plan 7.00 % 7.00 % 7.00 % Expected long-term return on plan assets FNB plan 3.00 % 7.00 % 7.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % The long-term rate of return on plan assets gives consideration to returns currently being earned on plan assets as well as future rates expected to be earned. The investment objective is to maximize total return consistent with the interests of the participants and beneficiaries, and prudent investment management. The allocation of the pension plan assets is determined on the basis of sound economic principles and is continually reviewed in light of changes in market conditions. Asset allocation favors equity securities, with a target allocation of 50-70%. The target allocation for debt securities is 30-50%. At December 31, 2018, the pension plan had a sufficient cash and money market position in order to re-allocate the equity portfolio for diversification purposes and reduce risk in the total portfolio. The following table sets forth by level, within the fair value hierarchy as defined in footnote 18, the Plan’s assets at fair value as of December 31, 2018 and 2017 (dollars in thousands): 2018 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 5,057 $ - $ - $ 5,057 27.8 % Equity Securities 4,891 - - 4,815 26.8 % Mutual Funds and ETF's 5,114 - - 5,114 28.1 % Corporate Bonds - 3,150 - 3,150 17.3 % Municipal Bonds - - 0.0 % U.S. Agency Securities - - - - 0.0 % Certificate of deposit - - - - 0.0 % Total $ 15,062 $ 3,150 $ - $ 18,212 100.0 % 2017 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 3,827 $ - $ - $ 3,827 19.1 % Equity Securities 6,018 - - 6,018 30.1 % Mutual Funds and ETF's 6,090 - - 6,090 30.5 % Corporate Bonds - 3,469 - 3,469 17.4 % Municipal Bonds 105 105 0.5 % U.S. Agency Securities - 483 - 483 2.4 % Certificate of deposit - - - - 0.0 % Total $ 15,935 $ 4,057 $ - $ 19,992 100.0 % Equity securities include the Company’s common stock in the amounts of $610,000 (3.4% of total plan assets) and $684,000 (3.4% of total plan assets) at December 31, 2018and 2017, respectively. The Bank expects to contribute $500,000 to its pension plans in 2019. Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands): 2019 $ 7,863 2020 1,238 2021 1,080 2022 531 2023 559 2024 - 2028 5,907 Defined Contribution Plan The Company sponsors a voluntary 401(k) savings plan which eligible employees can elect to contribute up to the maximum amount allowable not to exceed the limits of IRS Code Sections 401(k). Under the plan, the Company also makes required contributions on behalf of the eligible employees. The Company’s contributions vest immediately. Contributions by the Company totaled $433,000, $388,000 and $351,000 for 2018, 2017 and 2016, respectively. Directors’ Deferred Compensation Plan The Company’s directors may elect to defer all or portions of their fees until their retirement or termination from service. Amounts deferred under the deferred compensation plan earn interest based upon the highest current rate offered to certificate of deposit customers. Amounts deferred under the deferred compensation plan are not guaranteed and represent a general liability of the Company. As of December 31, 2018 and 2017, an obligation of $921,000 and $928,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Amounts included in interest expense on the deferred amounts totaled $22,000, $19,000 and $15,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Restricted Stock Plan The Company maintains a Restricted Stock Plan (the Plan) whereby employees and non-employee corporate directors are eligible to receive awards of restricted stock based upon performance related requirements. Awards granted under the Plan are in the form of the Company’s common stock and maybe subject to certain vesting requirements including in the case of employees, continuous employment or service with the Company. In April of 2016, the Company’s shareholders authorized a total of 150,000 shares of the Company’s common stock to be made available under the Plan. As of December 31, 2018, 135,582 shares remain available to be issued under the Plan. The Plan assists the Company in attracting, retaining and motivating employees to make substantial contributions to the success of the Company and to increase the emphasis on the use of equity as a key component of compensation. The following table details the vesting, awarding and forfeiting of restricted shares during 2018: 2018 Weighted Average Shares Market Price Outstanding, beginning of year 8,783 $ 51.20 Granted 5,826 62.74 Vested (4,845 ) 50.94 Outstanding, end of year 9,764 $ 58.21 Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period. Compensation expense related to restricted stock was $256,000, $214,000 and $193,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Supplemental Executive Retirement Plan The Company maintains a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Company’s noncontributory defined benefit pension plan whose benefits are limited by compensation limitations under current tax law. At December 31, 2018 and 2017, an obligation of $1,751,000 and $1,571,000, respectively, was included in other liabilities for the SERP in the Consolidated Balance Sheet. Expenses related to the SERP totaled $180,000, $111,000 and $121,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Deferred Compensation Plan The Company in 2018 initiated a non-qualified executive deferred compensation plan for eligible employees designated by the Board of Directors. At December 31, 2018 and 2017, an obligation of $95,000 and $0, respectively, was included in other liabilities for the deferred compensation plan in the Consolidated Balance Sheet. Expenses related to the deferred compensation plan totaled $95,000, $0 and $0 for the years ended December 31, 2018, 2017 and 2016, respectively. Salary Continuation Plan The Company maintains a salary continuation plan for certain employees acquired through the acquisition of the FNB. At December 31, 2018 and 2017 an obligation of $704,000 and $716,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to the salary continuation plan totaled $53,000, $54,000 and $62,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Continuation of Life Insurance Plan The Company, as part of the acquisition of FNB, has promised a continuation of life insurance coverage to certain persons post-retirement. GAAP requires the recording of post-retirement costs and a liability equal to the present value of the cost of post-retirement insurance during the person’s term of service. The estimated present value of future benefits to be paid totaled $648,000 and $578,000 at December 31, 2018 and 2017, respectively, which is included in other liabilities in the Consolidated Balance Sheet. Expenses for the plan total $70,000 and $9,000 for the years ended December 31, 2018 and 2017, respectively. There were no expenses related to this plan during the year ended December 31, 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
INCOME TAXES [Abstract]
INCOME TAXES	12. INCOME TAXES The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 Currently payable $ 3,838 $ 4,583 $ 2,672 Change in corporate tax rate - 1,531 - Deferred (435 ) (83 ) 362 Provision for income taxes $ 3,403 $ 6,031 $ 3,034 The following temporary differences gave rise to the net deferred tax asset and liabilities at December 31, 2018 and 2017, respectively (in thousands): 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,323 $ 3,058 Deferred compensation 479 464 Merger & acquisition costs 5 7 Allowance for losses on available-for-sale securities 5 6 Pension and other retirement obligation 301 297 Interest on non-accrual loans 1,126 917 Incentive plan accruals 361 324 Other real estate owned 1 108 Unrealized losses on available-for-sale securities 259 71 Low income housing tax credits 139 64 NOL carry forward 212 339 Other 134 125 Total $ 6,345 $ 5,780 Deferred tax liabilities: Premises and equipment $ (612 ) $ (623 ) Investment securities accretion (53 ) (66 ) Loan fees and costs (253 ) (257 ) Goodwill and core deposit intangibles (2,229 ) (2,200 ) Mortgage servicing rights (139 ) (146 ) Other (4 ) (7 ) Total (3,290 ) (3,299 ) Deferred tax asset, net $ 3,055 $ 2,481 No valuation allowance was established at December 31, 2018 and 2017, due to the Company’s ability to carryback to taxes paid in previous years and certain tax strategies, coupled with the anticipated future taxable income as evidenced by the Company’s earnings potential. The total provision for income taxes is different from that computed at the statutory rates due to the following items (dollars in thousands): Year Ended December 31, 2018 2017 2016 Provision at statutory rates on pre-tax income $ 4,502 $ 6,505 $ 5,328 Effect of tax-exempt income (955 ) (1,710 ) (1,943 ) Low income housing tax credits (141 ) (141 ) (198 ) Bank owned life insurance (131 ) (225 ) (234 ) Nondeductible interest 41 54 55 Nondeductible merger and acquisition expenses - - - Change in tax rate - 1,531 - Other items 87 17 26 Provision for income taxes $ 3,403 $ 6,031 $ 3,034 Statutory tax rates 21 % 35 % 35 % Effective tax rates 15.9 % 31.6 % 19.4 % The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. With limited exception, the Company’s federal and state income tax returns for taxable years through 2014 have been closed for purposes of examination by the federal and state taxing authorities. Investments in Qualified Affordable Housing Projects As of December 31, 2018 and 2017, the Company was invested in four partnerships that provide affordable housing. The balance of the investments, which is included within other assets in the Consolidated Balance Sheet, was $433,000 and $541,000 as of December 31, 2018 and 2017, respectively. Investments purchased prior to January 1, 2015, are accounted for utilizing the effective yield method. As of December 31, 2018, the Company has $564,000 of tax credits remaining that will be recognized over four years. Tax credits of $141,000, $141,000 and $198,000 were recognized as a reduction of tax expense during 2018, 2017 and 2016, respectively. Included within other expenses on the Consolidated Statement of Income was $108,000, $159,000 and $259,000 of amortization of the investments in qualified affordable housing projects for 2018, 2017 and 2016, respectively.

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2018
OTHER COMPREHENSIVE INCOME [Abstract]
OTHER COMPREHENSIVE INCOME	13. OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive loss, net of tax, as of December 31, were as follows (in thousands): 2018 2017 Net unrealized gain on securities available for sale $ (1,232 ) $ (340 ) Tax effect 259 71 Net -of-tax amount (973 ) (269 ) Unrecognized pension costs (3,731 ) (3,961 ) Tax effect 783 832 Net -of-tax amount (2,948 ) (3,129 ) Total accumulated other comprehensive income $ (3,921 ) $ (3,398 ) The following tables present the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2018, 2017 and 2016 (in thousands): Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) (730 ) (403 ) (1,133 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (168 ) 145 (23 ) Net current period other comprehensive income (loss) (898 ) (258 ) (1,156 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) (847 ) (65 ) (912 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (683 ) 148 (535 ) Net current period other comprehensive income (loss) (1,530 ) 83 (1,447 ) Change in other comprehensive income due to change in the federal tax rate (45 ) (514 ) (559 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Change in Accounting policy for equity securities 1 1 Other comprehensive income (loss) before reclassifications (net of tax) (720 ) 34 (686 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) 15 147 162 Net current period other comprehensive income (loss) (705 ) 181 (524 ) Balance as of December 31, 2018 $ (973 ) $ (2,948 ) $ (3,921 ) (a) Amounts in parentheses indicate debits to stockholders equity The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income December 31, 2018 2017 2016 Unrealized gains and losses on available for sale securities $ (19 ) $ 1,035 $ 255 Available for sale securities gains, net 4 (352 ) (87 ) Provision for income taxes $ (15 ) $ 683 $ 168 Net of tax Defined benefit pension items $ (186 ) $ (225 ) $ (219 ) Other expenses 39 77 74 Provision for income taxes $ (147 ) $ (148 ) $ (145 ) Net of tax Total reclassifications $ (162 ) $ 535 $ 23 (a) Amounts in parentheses indicate debits to the consolidated statement of income

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	14. RELATED PARTY TRANSACTIONS Certain executive officers and directors of the Company, or companies in which they have 10 percent or more beneficial ownership, were indebted to the Bank. Such loans were made in the ordinary course of business at the Bank’s normal credit terms and do not present more than a normal risk of collection. A summary of loan activity for the years ended December 31, 2018 and 2017 with officers, directors, stockholders and associates of such persons is listed below (in thousands): Year Ended December 31, 2018 2017 Balance, beginning of year $ 4,585 $ 5,570 New loans 14,377 4,161 Repayments (4,868 ) (5,146 ) Balance, end of year $ 14,094 $ 4,585

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2018
REGULATORY MATTERS [Abstract]
REGULATORY MATTERS	15. REGULATORY MATTERS Dividend Restrictions: The approval of the Federal Reserve Board (FRB) is required for the Bank to pay dividends to the Company if the total of all dividends declared in any calendar year exceeds the Bank’s net income (as defined) for that year combined with its retained net income for the preceding two calendar years. Under this formula, the Bank can declare dividends in 2019 without approval of the FRB or Pennsylvania Department of Banking of approximately $15,681,000, plus the Bank’s 2019 year-to-date net income at the time of the dividend declaration. Loans: The Bank is subject to regulatory restrictions which limit its ability to loan funds to the Company. At December 31, 2018, the Bank’s regulatory lending limit amounted to approximately $21,191,000. Regulatory Capital Requirements: Federal regulations require the Company and the Bank to maintain minimum amounts of capital. Specifically, each is required to maintain certain minimum dollar amounts and ratios of Total, Tier I and Common Equity Tier I capital to risk-weighted assets and of Tier I capital to average total assets. In addition to the capital requirements, the Federal Deposit Insurance Corporation Improvement Act (FDICIA) established five capital categories ranging from “well capitalized” to “critically under-capitalized.” Should any institution fail to meet the requirements to be considered “adequately capitalized”, it would become subject to a series of increasingly restrictive regulatory actions. As of December 31, 2018 and 2017, the FRB categorized the Company and the Bank as well capitalized, under the regulatory framework for prompt corrective action. To be categorized as a well capitalized financial institution, Total risk-based, Tier I risk-based, Common Equity Tier I risk based and Tier I leverage capital ratios must be at least 10%, 8%, 6.5% and 5%, respectively. The Company and Bank’s computed risk‑based capital ratios are as follows as of December 31, 2018 and 2017 (dollars in thousands): Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 141,272 13.42 % $ 84,227 8.00 % $ 105,284 10.00 % Bank $ 134,841 12.82 % $ 84,141 8.00 % $ 105,176 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 128,224 12.18 % $ 63,171 6.00 % $ 84,227 8.00 % Bank $ 121,792 11.58 % $ 63,106 6.00 % $ 84,141 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 120,724 11.47 % $ 47,378 4.50 % $ 68,435 6.50 % Bank $ 121,792 11.58 % $ 47,329 4.50 % $ 68,364 6.50 % Tier 1 Capital (to Average Assets): Company $ 128,224 9.15 % $ 56,041 4.00 % $ 70,051 5.00 % Bank $ 121,792 8.70 % $ 56,018 4.00 % $ 70,023 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 128,578 13.20 % $ 77,906 8.00 % $ 97,383 10.00 % Bank $ 122,469 12.58 % $ 77,852 8.00 % $ 97,315 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 117,224 12.04 % $ 58,430 6.00 % $ 77,906 8.00 % Bank $ 111,114 11.42 % $ 58,389 6.00 % $ 77,852 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 109,724 11.27 % $ 43,822 4.50 % $ 63,299 6.50 % Bank $ 111,114 11.42 % $ 43,792 4.50 % $ 63,255 6.50 % Tier 1 Capital (to Average Assets): Company $ 117,224 9.18 % $ 51,085 4.00 % $ 63,857 5.00 % Bank $ 111,114 8.71 % $ 51,023 4.00 % $ 63,778 5.00 % This annual report has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	16. COMMITMENTS AND CONTINGENT LIABILITIES The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate or liquidity risk in excess of the amount recognized in the consolidated balance sheet. Credit Extension Commitments The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments, whose contract amounts represent credit risk at December 31, 2018 and 2017, are as follows (in thousands): 2018 2017 Commitments to extend credit $ 199,183 $ 188,482 Standby letters of credit 16,311 15,244 $ 215,494 $ 203,726 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company on extension of credit is based on management’s credit assessment of the counter party. Standby letters of credit are conditional commitments issued by the Company to guarantee a financial agreement between a customer and a third party. Performance letters of credit represent conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized during the coverage period. For secured letters of credit, the collateral is typically Bank deposit instruments or customer business assets. The Company also offers limited overdraft protection as a non-contractual courtesy which is available to demand deposit accounts in good standing for business, personal or household use. The non-contractual amount of financial instruments with off-balance sheet risk at December 31, 2018 was $11,855,000. The Company reserves the right to discontinue this service without prior notice. Legal and Regulatory Proceedings In the ordinary course of business, the Company is subject to legal proceedings, including claims, litigation, investigations and administrative proceedings, all of which are considered incidental to the normal conduct of business. Litigation may relate to lending, deposit and other customer relationships, vendor and contractual issues, employee matters, intellectual property matters, personal injuries and torts, regulatory and legal compliance, and other matters. The Company believes it has substantial defenses to the claims asserted against it in its currently outstanding legal proceedings and, with respect to such legal proceedings, intends to defend itself vigorously. Set forth below are descriptions of certain of the Company’s legal proceedings. The Bank was named as a defendant in a lawsuit filed in the United States Bankruptcy Court for Western District of New York District, Arnold v. First Citizens National Bank, wherein the plaintiff is seeking avoid and recover various payments to First Citizens by Cornerstone Homes, Inc. and avoid or subordinate liens made in favor of First Citizens on property of Cornerstone on multiple grounds, including that the transfers constituted fraudulent conveyances under applicable law. The Bank and Arnold have agreed to a settlement of this matter (See Note 22 of the consolidated financial statements for additional information). The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments. Where a loss is not probable or the amount of a probable loss is not reasonably estimable, the Company does not accrue legal reserves. Additionally, for those matters where a loss is reasonably possible and the amount of loss is reasonably estimable, the Company estimates the amount of losses that it could incur beyond the accrued legal reserves. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote" if “the chance of the future event or events occurring is slight.” While the outcome of legal proceedings and the timing of the ultimate resolution are inherently difficult to predict, based on information currently available, advice of counsel and available insurance coverage, the Company believes that it has established adequate legal reserves. Further, based upon available information, the Company is of the opinion that these legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s financial condition or results of operations. However, in the event of unexpected future developments, it is reasonably possible that an adverse outcome in any of the matters discussed above could be material to the Company’s business, consolidated financial position, results of operations or cash flows for any particular reporting period of occurrence.

OPERATING LEASES

OPERATING LEASES	12 Months Ended
	Dec. 31, 2018
OPERATING LEASES [Abstract]
OPERATING LEASES	17. OPERATING LEASES The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2018 ( in thousands): 2019 388 2020 232 2021 184 2022 171 2023 81 Thereafter 72 Total $ 1,128 The Company’s operating lease obligations represent short and long-term lease and rental payments for facilities. Total rental expense for all operating leases for the years ended December 31, 2018, 2017 and 2016 were $412,000, $351,000 and $289,000, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	18. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by this hierarchy are as follows Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. Assets and Liabilities Required to be Measured at Fair Value on a Recurring Basis The fair values of equity securities and securities available for sale are determined by quoted prices in active markets, when available, and classified as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The following tables present the assets reported on the consolidated balance sheet at their fair value on a recurring basis as of December 31, 2018 and 2017 (in thousands) 2018 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Equity securities $ 516 $ - $ - $ 516 Available for sale securities: U.S. Agency securities - 106,385 - 106,385 U.S. Treasuries securities 33,358 - - 33,358 Obligations of state and political subdivisions - 52,047 - 52,047 Corporate obligations - 3,034 - 3,034 Mortgage-backed securities in government sponsored entities - 46,186 - 46,186 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91 Financial Instruments, Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during 2018 and 2017 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. Assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 (in thousands) 2018 Level I Level II Level III Total Impaired Loans $ - $ - $ 5,815 $ 5,815 Other real estate owned - - 532 532 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024 • Impaired Loans - • Other Real Estate Owned – OREO is carried at the lower of cost or fair value, less estimated costs to sell, which is measured at the date of foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in the above table as a Level III measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from OREO. The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands). Quantitative Information about Level 3 Fair Value Measurements 2018 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 5,815 Appraised Collateral Values Discount for time since appraisal 0-100% 19.22% Selling costs 5%-12% 8.70% Holding period 6 - 12 months 11.61 months Other real estate owned 532 Appraised Collateral Values Discount for time since appraisal 20-55% 31.44% 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 1,569 Appraised Collateral Values Discount for time since appraisal 0-100% 30.83% Selling costs 5%-9% 8.35% Holding period 6 - 12 months 11 months Other real estate owned 1,024 Appraised Collateral Values Discount for time since appraisal 15-65% 26.26% Financial Instruments Not Required to be Measured or Reported at Fair Value The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands): Carrying December 31, 2018 Amount Fair Value Level I Level II Level III Financial assets: Interest bearing time deposits with other banks $ 15,498 $ 15,422 $ - $ - 15,422 Loans held for sale 1,127 1,126 - - 1,126 Net loans 1,068,999 1,062,645 - - 1,062,645 Financial liabilities: Deposits $ 1,185,156 $ 1,180,694 $ 886,686 $ - $ 294,008 Borrowed funds 91,194 90,427 - - 90,427 Carrying December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Interest bearing time deposits with other banks $ 10,283 $ 10,287 $ - $ - 10,287 Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802 Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. The carrying amounts for cash and due from banks, bank owned life insurance, regulatory stock, accrued interest receivable and payable approximate fair value and are considered Level I measurements.

CONDENSED FINANCIAL INFORMATION

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY	12 Months Ended
	Dec. 31, 2018
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract]
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY	19. CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY The following is condensed financial information for Citizens Financial Services, Inc.: CITIZENS FINANCIAL SERVICES, INC. CONDENSED BALANCE SHEET December 31, (in thousands) 2018 2017 Assets: Cash $ 5,576 $ 6,238 Available-for-sale securities 516 91 Investment in subsidiary: First Citizens Community Bank 140,298 130,402 Other assets 813 369 Total assets $ 147,203 $ 137,100 Liabilities: Other liabilities $ 474 $ 589 Borrowed funds 7,500 7,500 Total liabilities 7,974 8,089 Stockholders' equity 139,229 129,011 Total liabilities and stockholders' equity $ 147,203 $ 137,100 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF INCOME Year Ended December 31, (in thousands) 2018 2017 2016 Dividends from: Bank subsidiary $ 8,248 $ 7,507 $ 5,842 Equity securities 7 60 92 Total income 8,255 7,567 5,934 Realized securities gains (losses) - 1,021 31 Expenses 642 824 463 Income before equity in undistributed earnings of subsidiary 7,613 7,764 5,502 Equity in undistributed earnings - First Citizens Community Bank 10,421 5,261 7,136 Net income $ 18,034 $ 13,025 $ 12,638 Comprehensive income $ 17,510 $ 11,578 $ 11,482 CITIZENS FINANCIAL SERVICES, INC. STATEMENT OF CASH FLOWS Year Ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 18,034 $ 13,025 $ 12,638 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (10,421 ) (5,261 ) (7,136 ) Investment securities (gains) losses, net - (1,021 ) (31 ) Other, net (251 ) 629 230 Net cash provided by operating activities 7,362 7,372 5,701 Cash flows from investing activities: Purchases of equity securities (425 ) (94 ) (1 ) Proceeds from the sale of available-for-sale securities - 2,828 201 Net cash provided by (used in) investing activities (425 ) 2,734 200 Cash flows from financing activities: Cash dividends paid (6,116 ) (5,177 ) (5,081 ) Purchase of treasury stock (1,483 ) (979 ) (3,227 ) Reissuance of treasury stock to employee stock purchase plan - 43 59 Purchase of restricted stock - - - Net cash used in financing activities (7,599 ) (6,113 ) (8,249 ) Net (decrease) increase in cash (662 ) 3,993 (2,348 ) Cash at beginning of year 6,238 2,245 4,593 Cash at end of year $ 5,576 $ 6,238 $ 2,245

CONSOLIDATED CONDENSED QUARTERL

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2018
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED)	20. CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) The following table presents summarized quarterly financial data for 2018 and 2017: (in thousands, except per share data) Three Months Ended, 2018 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 13,383 $ 14,028 $ 14,259 $ 15,088 Interest expense 1,963 2,277 2,489 2,845 Net interest income 11,420 11,751 11,770 12,243 Provision for loan losses 500 325 475 625 Non-interest income 1,900 1,835 2,022 1,997 Investment securities gains, net 6 7 (12 ) (20 ) Non-interest expenses 7,832 7,702 7,788 8,235 Income before provision for income taxes 4,994 5,566 5,517 5,360 Provision for income taxes 747 875 936 845 Net income $ 4,247 $ 4,691 $ 4,581 $ 4,515 Earnings Per Share Basic $ 1.20 $ 1.34 $ 1.31 $ 1.29 Earnings Per Share Diluted $ 1.20 $ 1.34 $ 1.31 $ 1.29 (in thousands, except per share data) Three Months Ended, 2017 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 11,300 $ 11,778 $ 12,120 $ 12,895 Interest expense 1,303 1,374 1,503 1,659 Net interest income 9,997 10,404 10,617 11,236 Provision for loan losses 615 625 500 800 Non-interest income 1,863 1,865 1,912 1,981 Investment securities gains, net 172 23 9 831 Non-interest expenses 7,191 7,166 7,247 7,710 Income before provision for income taxes 4,226 4,501 4,791 5,538 Provision for income taxes 923 1,033 1,141 2,934 Net income $ 3,303 $ 3,468 $ 3,650 $ 2,604 Earnings Per Share Basic $ 0.93 $ 0.99 $ 1.04 $ 0.74 Earnings Per Share Diluted $ 0.93 $ 0.99 $ 1.04 $ 0.74

ACQUISITION OF STATE COLLEGE BR

ACQUISITION OF STATE COLLEGE BRANCH	12 Months Ended
	Dec. 31, 2018
ACQUISITION OF STATE COLLEGE BRANCH [Abstract]
ACQUISITION OF STATE COLLEGE BRANCH	21. ACQUISITION OF STATE COLLEGE BRANCH In the second quarter of 2017, the Company announced the signing of a purchase and assumption agreement to acquire the full service branch in State College of S&T Bank. The transaction closed on December 8, 2017, and the Bank paid consideration of $1,044,000, which was based on the average deposit balances for the 30 days prior to the closing date. The acquisition established the Company’s presence in the Centre County, Pennsylvania market. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of S&T. The Bank also recorded an identifiable intangible asset representing the core deposit base of the branch based on management’s evaluation of the cost of such deposits relative to alternative funding sources. The business combination resulted in the acquisition of loans without evidence of credit quality deterioration. Loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and pre-payment speeds. The following table summarizes the purchase of the branch as of December 7, 2017: (In Thousands) Purchase Price Consideration in cash $ 1,044 Net Assets Acquired for cash Loans, interest, PP&E less deposits, interest and escrow payable 3,509 Total cash consideration 4,553 Net Assets Acquired for cash $ 3,509 Adjustments to reflect assets acquired at fair value: Loans Interest rate (522 ) General credit (740 ) Core deposit intangible 145 Adjustments to reflect liabilities acquired at fair value: Time deposits (46 ) Acquired net assets at fair value 2,346 Goodwill resulting from acquisition $ 2,207 The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 4,553 Net assets acquired: Cash and cash equivalents $ 154 Loans 39,847 Premises and equipment, net 86 Accrued interest receivable 74 Intangibles 145 Deposits (37,880 ) Accrued interest payable (29 ) Other liabilities (51 ) 2,346 Goodwill resulting from the branch acquisition $ 2,207 The Company recorded goodwill and other intangibles associated with the purchase of the branch totaling $2,352,000. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment from December 8, 2017 to December 31, 2018. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. For the period from December 8, 2017 to December 31, 2018, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible. See footnote 7 for additional information on the identifiable intangible assets.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2018
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	22. SUBSEQUENT EVENTS On March 1, 2019, the Judge presiding over the matter between Arnold v. First Citizens National Bank in the United States Bankruptcy Court for Western District New York District approved the settlement between the Company and Arnold. This settlement provides for the Bank to receive titles to properties in lieu of additional payments related to the outstanding loans. This settlement will be effective March 15, 2019, at which time the company will obtain clean title to the properties upon the payment of past due taxes owed on the properties. The Company is currently evaluating the fair value of the properties and the impact on the allowance for loan losses.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation The financial statements are consolidated to include the accounts of the Company and its subsidiary, First Citizens Community Bank, and its subsidiary, First Citizens Insurance Agency, Inc. These statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements.
Use of Estimates	Use of Estimates In preparing the financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to determination of the allowance for loan losses, pension plans and deferred tax assets and liabilities.
Operating Segments	Operating Segments An operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While the Company’s chief decision makers monitor the revenue streams of the various Company’s products, services and regions, operations are managed and financial performance is evaluated on a Company-wide basis. Consistent with our internal reporting, the Company’s business activities are reported as one segment, which is community banking.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short term borrowing transactions. Interest bearing time deposits with other banks are not included with cash and cash equivalents as the original maturities were greater than 90 days.
Investment Securities	Investment Securities Investment securities at the time of purchase are classified as one of the three following types: Held-to-Maturity Securities Trading Securities Available-for-Sale Securities The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Debt securities are periodically reviewed for other-than-temporary impairment. The fair value of investments, except certain state and municipal securities, is based on bid prices published in financial newspapers or bid quotations received from securities dealers. The fair value of certain state and municipal securities is not readily available through market sources other than dealer quotations, so fair value is based on quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued. Equity Securities – Common stock of the Federal Reserve Bank, Federal Home Loan Bank of Pittsburgh (FHLB) and correspondent banks represent ownership in institutions which are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified as other assets.
Loans Held for Sale	Loans Held for Sale Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management’s intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value.
Loans	Loans Interest on all loans is recognized on the accrual basis based upon the principal amount outstanding. The accrual of interest income on loans is discontinued when, in the opinion of management, doubt exists as to the ability to collect such interest. Payments received on non-accrual loans are applied to the outstanding principal balance or recorded as interest income, depending upon our assessment of our ultimate ability to collect principal and interest. Loans are returned to the accrual status when factors indicating doubtful collectability cease to exist. The Company recognizes nonrefundable loan origination fees and certain direct loan origination costs over the life of the related loan as an adjustment of loan yield using the interest method.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses which is charged to operations. The provision is based upon management’s periodic evaluation of individual loans, the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses are particularly susceptible to significant change in the near term. Impaired loans are other commercial, other agricultural, municipal, agricultural real estate, commercial real estate loans and certain residential mortgages cross collateralized with commercial relationships for which it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. The Company may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial, agricultural, municipal or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value; or, as a practical expedient in the case of a collateral dependent loan, the difference between the fair value of the collateral and the recorded amount of the loans. Mortgage loans on one to four family properties and all consumer loans are large groups of smaller balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which is defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. The Company allocates the allowance based on the factors described below, which conform to the Company’s loan classification policy. In reviewing risk within the Bank’s loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial real estate (iii) agricultural real estate loans; (iv) construction; (v) consumer loans; (vi) other commercial loans (vii) other agricultural loans and (viii) state and political subdivision loans. Factors considered in this process include general loan terms, collateral, and availability of historical data to support the analysis. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non classified loans. The following qualitative factors are analyzed: • Level of and trends in delinquencies, impaired/classified loans • Change in volume and severity of past due loans • Volume of non-accrual loans • Volume and severity of classified, adversely or graded loans • Level of and trends in charge-offs and recoveries • Trends in volume, terms and nature of the loan portfolio • Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices • Changes in the quality of the Bank’s loan review system • Experience, ability and depth of lending management and other relevant staff • National, state, regional and local economic trends and business conditions • General economic conditions • Unemployment rates • Inflation / CPI • Changes in values of underlying collateral for collateral-dependent loans • Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses. • Existence and effect of any credit concentrations, and changes in the level of such concentrations • Any change in the level of board oversight The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.
Loan Charge-off Policies	Loan Charge-off Policies Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset when the loan is 180 days past due for open-end loans or 120 days past due for closed-end loans unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due.
Troubled Debt Restructurings	Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. TDRs are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment.
Purchased Credit Impaired Loans	Purchased Credit Impaired Loans The Company purchased loans in connection with its acquisition of FNB in 2015 and its acquisition of the State College branch in 2017, some of which showed evidence of credit deterioration as of the acquisition since origination. These purchased credit impaired (PCI) loans were recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan, expected cash flows continue to be estimated. If this subsequent estimated indicated that the present value of expected cash flows is less than the carrying amount, a charge to the allowance for loan loss is made through a provision. If the estimate indicates that the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Such purchased credit impaired loans are accounted for individually, and the Company estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not amortized over the remaining life of the loan (nonaccretable difference). For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan’s face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method.
Foreclosed Assets Held For Sale	Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell. Prior to foreclosure, as the value of the underlying loan is written down to fair market value of the real estate or other assets to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Operating expenses of such properties, net of related income and losses on disposition, are included in other expenses and gains and losses are included in other non-interest income or other non-interest expense.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed on straight line and accelerated methods over the estimated useful lives of the assets, which range from 3 to 15 years for furniture, fixtures and equipment and 5 to 40 years for building premises. Repair and maintenance expenditures which extend the useful life of an asset are capitalized and other repair expenditures are expensed as incurred. When premises or equipment are retired or sold, the remaining cost and accumulated depreciation are removed from the accounts and any gain or loss is credited to income or charged to expense, respectively.
Intangible Assets	Intangible Assets Intangible assets, other than goodwill, include core deposit intangibles, covenants not to compete and mortgage servicing rights (MSRs). Core deposit intangibles are a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. Covenants not to compete are payments made to former employees as compensation for agreeing not to work for competitors. The core deposit intangibles are being amortized over 10 years using the sum-of-the-years digits method of amortization, while the covenant not to compete is being amortized over four years on a straight line basis. MSR’s arise from the Company originating certain loans for the express purpose of selling such loans in the secondary market. The Company maintains all servicing rights for these loans. The loans held for sale are carried at lower of cost or market. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio and measured annually for impairment. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense.
Goodwill	Goodwill The Company utilizes a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company’s reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company may also perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Based on the fair value of the reporting unit, no impairment of goodwill was recognized in 2018, 2017 or 2016.
Bank Owned Life Insurance	Bank Owned Life Insurance The Company has purchased life insurance policies on certain employees. Prior to January 1, 2015 . Additionally, as a result of the acquisition of FNB, the Company acquired life insurance policies on former FNB employees and directors. The policies obtained as part of the acquisition provide a fixed dollar benefit to the former employee or director beneficiaries, whether or not the insured person is affiliated with the Company at the time of his or her death. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as other non-interest income. The obligation of $648,000 and $578,000 under split-dollar benefit agreements to former employees and directors or their beneficiaries have been recognized as liabilities on the consolidated balance sheet.at December 31, 2018 and 2017.
Income Taxes	Income Taxes The Company and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax basis of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period.
Employee Benefit Plans	Employee Benefit Plans The Company has noncontributory defined benefit pension plans covering employees hired before January 1, 2007 and employees acquired as part of the FNB acquisition. It is the Company’s policy to fund pension costs on a current basis to the extent deductible under existing tax regulations. Such contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. The Company has a defined contribution, 401(k) plan covering eligible employees. The employee may also contribute to the plan on a voluntary basis, up to a maximum percentage allowable not to exceed the limits of Code Sections 401(k). Under the plan, the Company also makes contributions on behalf of eligible employees, which vest immediately. For employees hired after January 1, 2007, in lieu of the pension plan, an additional annual discretionary 401(k) plan contribution is made and is equal to a percentage of an employee’s base compensation. The Company also has a profit-sharing plan for employees which provide tax-deferred salary savings to plan participants. The Company has a deferred compensation plan for directors who have elected to defer all or portions of their fees until their retirement or termination from service. The Company has a restricted stock plan which covers eligible employees and non-employee corporate directors. Under the plan, awards are granted based upon performance related requirements and are subject to certain vesting criteria. Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period. The Company has an employee stock purchase plan that allows employees to withhold money from their paychecks, which is then utilized to purchase shares of the Company’s stock on either the open market or through treasury stock, if shares are unavailable on the open market. The Company maintains a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Company’s noncontributory defined benefit pension plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Company. Expenses under the SERP are recognized as earned over the expected years of service. The Company The Deferred Compensation Plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the Deferred Compensation Plan are payable from the general assets of the Company. Expenses under the Deferred Compensation Plan are recognized as earned over the expected years of service.
Advertising Costs	Advertising Costs Advertising costs are generally expensed as incurred and amounted to $361,000, $343,000 and $356,000 for the years ended December 31, 2018, 2017 and 2016, respectively.
Comprehensive Loss	Comprehensive Loss The Company is required to present comprehensive income in a full set of general purpose financial statements for all periods presented. Other comprehensive loss is comprised of unrealized holding gains (losses) on the available-for-sale securities portfolio and unrecognized pension costs.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - Adopted In May 2014,the Financial Accounting Standards Board ("FASB") issued Ac counting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which was subsequently amended, modified, and/or clarified with ASU 2015-14, 2016-08, 2016-10, 2016-12, 2017-05, and 2017-10. The standard In January 2016, the FASB finalized ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $1,000 between accumulated other comprehensive income and retained earnings on the consolidated balance sheet for the fair value of equity securities included in accumulated other comprehensive income as of the beginning of the period. The adjustment had no impact on net income on any prior periods presented. The Company has adopted this standard during the reporting period on a prospective basis. The Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes included in Note 18 to the financial statements. The December 31, 2018 fair value of each class of financial instruments disclosure did utilize the exit price notion when measuring fair value and, therefore, may not be comparable to the December 3l, 2017 disclosure. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 71S). The amendments in this Update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. The Company adopted the standard on January 1, 2018, which resulted in a reclassification of $(199)and ($123) from Salaries and employee benefits into other noninterest expenses on the Consolidated Statement of Income for the years ended December 31, 2017 and 2016, respectively. See Note 11 for additional information on the presentation of these pension cost components. Recent Accounting Pronouncements – Not yet effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. “Leases (Topic 842) - Targeted Improvements,” ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors,” In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This Update is not expected to have a significant impact on the Company’s financial statements. ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118, to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 12 - Income Taxes. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20). ember 15, 2021. This Update is not expected to have a significant impact on the Company’s consolidated financial statements.
Treasury Stock	Treasury Stock The purchase of the Company’s common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a last-in-first-out basis.
Cash Flows	Cash Flows The Company utilizes the net reporting of cash receipts and cash payments for deposit, short-term borrowing and lending activities. The Company considers amounts due from banks and interest-bearing deposits in banks as cash equivalents.
Trust Assets and Income	Trust Assets and Income Assets held by the Company in a fiduciary or agency capacity for its customers are not included in the consolidated financial statements since such items are not assets of the Company.
Earnings Per Share	Earnings Per Share The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. 2018 2017 2016 Basic earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding 3,505,218 3,515,638 3,541,769 Earnings per share - basic $ 5.14 $ 3.70 $ 3.57 Diluted earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding for basic earnings per share 3,505,218 3,515,638 3,541,769 Add: Dilutive effects of restricted stock 1,988 1,724 1,556 Weighted average common shares outstanding for dilutive earnings per share 3,507,206 3,517,362 3,543,325 Earnings per share - dilutive $ 5.14 $ 3.70 $ 3.57 Nonvested shares of restricted stock totaling 3,201, 3,403 and 3,087 were outstanding during 2018, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. These anti-dilutive shares had per share prices ranging from $47.81-$61.04, $46.69-$53.15 and $46.69-$53.15 for 2018, 2017 and 2016, respectively.
Reclassification	Reclassification Certain of the prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net income or stockholders’ equity.

REVENUE RECOGNITION (Policies)

REVENUE RECOGNITION (Policies)	12 Months Ended
	Dec. 31, 2018
REVENUE RECOGNITION [Abstract]
Revenue Recognition	Effective January 1, 2018, the Company adopted Accounting Standards Update ASU 2014-09 Revenue from Contracts with Customers – Topic 606 • Service charges on deposit accounts – The Company has contracts with its deposit customers where fees are charged if certain parameters are not met. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific transactions or activities resulting from a customer request or activity that include overdraft fees, online banking fees, interchange fees, ATM fees and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time upon the completion of the requested service/transaction. • Trust fees – Typical contracts for trust services are based on a fixed percentage of the assets earned ratably over a defined period and billed on a monthly basis. Fees charged to customers’ accounts are recognized as revenue over the period during which the Company fulfills its performance obligation under the contract (i.e., holding client asset in a managed fiduciary trust account). For these accounts, the performance obligation of the Company is typically satisfied by holding and managing the customer’s assets over time. Other fees related to specific customer requests are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, upon completion of the requested service/transaction. • Gains (losses) on sale of other real estate owned – Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred, payment terms, and that the contract has a true commercial substance and that collection of amounts due from the buyer are reasonable. In situations where financing terms are not reflective of current market terms, the transaction price is discounted impacting the gain/loss and the carrying value of the asset. • Brokerage and insurance – Fees includes commissions from the sales of investments and insurance products recognized on a trade date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Additional fees are based on a percentage of the market value of customer accounts and billed on a monthly or quarterly basis. The Company’s performance obligation under the contracts with certain customers is generally satisfied through the passage of time as the Company monitors and manages the assets in the customer’s portfolio and is not dependent on certain return or performance level of the customer’s portfolio. Fees for these services are billed monthly and are recorded as revenue at the end of the month for which the wealth management service has been performed. Other performance obligations (such as the delivery of account statements to customers) are generally considered immaterial to the overall transaction price.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Computation of Earnings per Share	The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. 2018 2017 2016 Basic earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding 3,505,218 3,515,638 3,541,769 Earnings per share - basic $ 5.14 $ 3.70 $ 3.57 Diluted earnings per share computation: Net income applicable to common stock $ 18,034,000 $ 13,025,000 $ 12,638,000 Weighted average common shares outstanding for basic earnings per share 3,505,218 3,515,638 3,541,769 Add: Dilutive effects of restricted stock 1,988 1,724 1,556 Weighted average common shares outstanding for dilutive earnings per share 3,507,206 3,517,362 3,543,325 Earnings per share - dilutive $ 5.14 $ 3.70 $ 3.57

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	12 Months Ended
	Dec. 31, 2018
REVENUE RECOGNITION [Abstract]
Disaggregation of Revenue Derived from Contracts with Customers	The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows for the year ended December 31, 2018 (in thousands). All revenue in the table below relates to goods and services transferred at a point in time. Revenue stream Service charges on deposit accounts Overdraft fees $ 1,551 Statement fees 206 Interchange revenue 2,259 ATM income 400 Other service charges 251 Total Service Charges 4,667 Trust 705 Brokerage and insurance 790 Other 350 Total $ 6,512

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2018
INVESTMENT SECURITIES [Abstract]
Amortized Cost and Fair Value of Investment Securities	The amortized cost, gross unrealized gains and losses, and fair value of investment securities at December 31, 2018 and 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 106,516 $ 509 $ (640 ) $ 106,385 U.S. Treasuries 33,813 - (455 ) 33,358 Obligations of state and political subdivisions 52,074 150 (177 ) 52,047 Corporate obligations 3,000 34 - 3,034 Mortgage-backed securities in government sponsored entities 46,839 59 (712 ) 46,186 Total available-for-sale securities $ 242,242 $ 752 $ (1,984 ) $ 241,010 Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. Treasuries 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782
Unrealized Losses and Fair Value of Investments	The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2018 and 2017 (in thousands). As of December 31, 2018, the Company owned 110 securities each of whose fair value was less than its cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized 2018 Value Losses Value Losses Value Losses U.S. agency securities $ 5,981 $ (5 ) $ 52,673 $ (635 ) $ 58,654 $ (640 ) U.S. Treasuries 4,948 (31 ) 28,410 (424 ) 33,358 (455 ) Obligations of states and political subdivisions 8,979 (22 ) 12,441 (155 ) 21,420 (177 ) Mortgage-backed securities in government sponsored entities 5,272 (18 ) 32,570 (694 ) 37,842 (712 ) Total securities $ 25,180 $ (76 ) $ 126,094 $ (1,908 ) $ 151,274 $ (1,984 ) 2017 U.S. agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. Treasuries 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 )
Gross Gains and Losses on Available-for-sale Securities	Gross gains and gross losses were realized as follows on available for sale securities (in thousands): 2018 2017 2016 Gross gains $ 160 $ 1,205 $ 312 Gross losses (179 ) (170 ) (57 ) Net (losses) gains $ (19 ) $ 1,035 $ 255
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	The amortized cost and fair value of debt securities at December 31, 2018, by contractual maturity are shown below (in thousands). Amortized Cost Fair Value Available-for-sale securities: Due in one year or less $ 23,212 $ 23,138 Due after one year through five years 111,439 110,666 Due after five years through ten years 55,904 55,838 Due after ten years 51,687 51,368 Total $ 242,242 $ 241,010

LOANS AND RELATED ALLOWANCE F_2

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2018
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
Loan Portfolio and Allowance for Loan Losses	The following table summarizes the primary segments of the loan portfolio, as well as how those segments are analyzed within the allowance for loan losses as of December 31, 2018 and 2017 (in thousands): 2018 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 215,305 $ 890 $ 28 $ 214,387 Commercial 319,265 13,327 1,321 304,617 Agricultural 284,520 5,592 - 278,928 Construction 33,913 - - 33,913 Consumer 9,858 - - 9,858 Other commercial loans 74,118 2,206 510 71,402 Other agricultural loans 42,186 1,435 - 40,751 State and political subdivision loans 102,718 - - 102,718 Total 1,081,883 23,450 1,859 1,056,574 Allowance for loan losses 12,884 676 - 12,208 Net loans $ 1,068,999 $ 22,774 $ 1,859 $ 1,044,366 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709
Accretable Yield for Purchased Credit Impaired Loans	Changes in the amortizable yield for PCI loans were as follows for the years ended December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Balance at beginning of period $ 106 $ 389 Accretion (95 ) (632 ) Reclassification of non-accretable discount 93 349 Balance at end of period $ 104 $ 106
Loans Acquired with Specific Evidence of Deterioration in Credit Quality	The following table presents additional information regarding PCI loans (in thousands): December 31, 2018 December 31, 2017 Outstanding balance $ 4,529 $ 5,295 Carrying amount 1,859 2,638
Impaired Financing Receivables with Associated Allowance Amount	The following table includes the recorded investment and unpaid principal balances for impaired loans by class, with the associated allowance amount as of December 31, 2018 and 2017, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2018 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 932 $ 515 $ 288 $ 803 $ 10 Home Equity 106 12 75 87 14 Commercial 16,326 11,933 1,394 13,327 216 Agricultural 5,598 2,386 3,206 5,592 84 Other commercial loans 2,711 1,836 370 2,206 193 Other agricultural loans 1,487 120 1,315 1,435 159 Total $ 27,160 $ 16,802 $ 6,648 $ 23,450 $ 676 Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 The following table includes the average investment in impaired loans and the income recognized on impaired loans for 2018, 2017 and 2016 (in thousands): Interest Average Interest Income Recorded Income Recognized 2018 Investment Recognized Cash Basis Real estate loans: Mortgages $ 944 $ 13 $ - Home Equity 95 4 - Commercial 13,907 506 20 Agricultural 4,736 151 - Consumer 1 - - Other commercial loans 3,659 89 - Other agricultural loans 1,401 23 - Total $ 24,743 $ 786 $ 20 Interest Average Interest Income Recorded Income Recognized 2017 Investment Recognized Cash Basis Real estate loans: Mortgages $ 900 $ 13 $ - Home Equity 67 4 - Commercial 11,567 385 7 Agricultural 3,574 131 - Consumer 3 - - Other commercial loans 4,790 152 52 Other agricultural loans 1,491 65 - Total $ 22,392 $ 750 $ 59 Interest Average Interest Income Recorded Income Recognized 2016 Investment Recognized Cash Basis Real estate loans: Mortgages $ 590 $ 13 $ - Home Equity 59 4 - Commercial 5,959 69 1 Agricultural 361 17 - Consumer - - - Other commercial loans 5,715 87 6 Other agricultural loans 190 11 - Total $ 12,874 $ 201 $ 7
Financing Receivable Credit Exposures by Internally Assigned Grades	The following tables represent credit exposures by internally assigned grades as of December 31, 2018 and 2017 (in thousands) Pass Special Mention Substandard Doubtful Loss Ending Balance 2018 Real estate loans: Commercial $ 297,690 $ 10,792 $ 10,743 $ 40 $ - $ 319,265 Agricultural 264,732 10,017 9,771 - - 284,520 Construction 33,913 - - - - 33,913 Other commercial loans 70,425 777 2,800 116 - 74,118 Other agricultural loans 38,628 1,724 1,834 - - 42,186 State and political subdivision loans 92,666 9,481 571 - - 102,718 Total $ 798,054 $ 32,791 $ 25,719 $ 156 $ - $ 856,720 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 For residential real estate mortgages, home equities and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below and all loans past due 90 or more days. The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2018 and 2017 ( in thousands) 2018 Performing Non-performing PCI Total Real estate loans: Mortgages $ 155,360 $ 1,099 $ 28 $ 156,487 Home Equity 58,736 82 - 58,818 Consumer 9,832 26 - 9,858 Total $ 223,928 $ 1,207 $ 28 $ 225,163 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - 60,134 Consumer 9,895 49 - 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423
Aging Analysis of Past Due Financing Receivables	The following table includes an aging analysis of the recorded investment of past due loans as of December 31, 2018 and 2017 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days Past Due 2018 Past Due Past Due Or Greater Due Current PCI Receivables And Accruing Real estate loans: Mortgages $ 483 $ 789 $ 686 $ 1,958 $ 154,501 $ 28 $ 156,487 $ 20 Home Equity 257 108 63 428 58,390 - 58,818 - Commercial 999 631 4,706 6,336 311,608 1,321 319,265 36 Agricultural 121 - 3,184 3,305 281,215 - 284,520 - Construction - - - - 33,913 - 33,913 - Consumer 37 14 12 63 9,795 - 9,858 12 Other commercial loans 141 53 2,061 2,255 71,353 510 74,118 - Other agricultural loans - - 1,201 1,201 40,985 - 42,186 - State and political subdivision loans - - - - 102,718 - 102,718 - Total $ 2,038 $ 1,595 $ 11,913 $ 15,546 $ 1,064,478 $ 1,859 $ 1,081,883 $ 68 Loans considered non-accrual $ 72 $ 253 $ 11,845 $ 12,170 $ 1,554 $ - $ 13,724 Loans still accruing 1,966 1,342 68 3,376 1,062,924 1,859 1,068,159 Total $ 2,038 $ 1,595 $ 11,913 $ 15,546 $ 1,064,478 $ 1,859 $ 1,081,883 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days Past Due 2017 Past Due Past Due Or Greater Due Current PCI Receivables and Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525
Financing Receivables on Nonaccrual Status	The following table reflects the loans on nonaccrual status as of December 31, 2018 and 2017, respectively. The balances are presented by class of loan (in thousands): 2018 2017 Real estate loans: Mortgages $ 1,079 $ 1,274 Home Equity 82 112 Commercial 5,957 5,192 Agricultural 3,206 175 Construction - 133 Consumer 14 42 Other commercial loans 2,185 2,637 Other agricultural loans 1,201 606 $ 13,724 $ 10,171
Troubled Debt Restructurings on Financing Receivables	Loan modifications that are considered TDRs completed during the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands): Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment 2018 Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Mortgages - 1 $ - $ 7 $ - $ 7 Home Equity - 1 - 1 - 1 Commercial - 2 - 683 - 683 Agricultural - 5 - 3,209 - 3,209 Other agricultural loans - 4 - 176 - 176 Total - 13 $ - $ 4,076 $ - $ 4,076 2017 Real estate loans: Home Equity - 1 $ - $ 25 $ - $ 25 Commercial - 5 - 7,021 - 7,021 Agricultural - 4 - 1,475 - 1,475 Other commercial loans - 1 - 9 - 9 Other agricultural loans - 1 - 161 - 161 Total - 12 $ - $ 8,691 $ - $ 8,691 2016 Real estate loans: Commercial - 4 $ - $ 1,188 $ - $ 1,188 Agricultural - 5 - 1,956 - 1,956 Other commercial loans - 3 - 3,076 - 3,076 Other agricultural loans - 7 - 1,558 - 1,558 Total - 19 $ - $ 7,778 $ - $ 7,778
Subsequent Default Recorded Investment	The following table presents the recorded investment in loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2018, 2017 and 2016, respectively, and that subsequently defaulted during these reporting periods (dollars in thousands): December 31, 2018 December 31, 2017 December 31, 2016 Number of contracts Recorded investment Number of contracts Recorded investment Number of contracts Recorded investment Real estate loans: Commercial 2 $ 683 - $ - - $ - Agricultural 2 1,325 - - - - Other agricultural loans 1 161 2 632 - - Total recidivism 5 $ 2,169 2 $ 632 - $ -
Roll forward of Allowance for Loan Losses by Portfolio Segment	The following tables roll forward the balance of the allowance for loan and lease losses for the years ended December 31, 2018, 2017 and 2016 and is segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2018, 2017 and 2016 (in thousands): Balance at December 31, 2017 Charge-offs Recoveries Provision Balance at December 31, 2018 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,049 $ (118 ) $ 69 $ 105 $ 1,105 $ 24 $ 1,081 Commercial 3,867 (66 ) 3 311 4,115 216 3,899 Agricultural 3,143 - - 1,121 4,264 84 4,180 Construction 23 - - 35 58 - 58 Consumer 124 (40 ) 31 5 120 - 120 Other commercial loans 1,272 (91 ) 30 143 1,354 193 1,161 Other agricultural loans 492 (50 ) 1 309 752 159 593 State and political subdivision loans 816 - - (54 ) 762 - 762 Unallocated 404 - - (50 ) 354 - 354 Total $ 11,190 $ (365 ) $ 134 $ 1,925 $ 12,884 $ 676 $ 12,208 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,064 $ (107 ) $ - $ 92 $ 1,049 $ 56 $ 993 Commercial 3,589 (41 ) 11 308 3,867 94 3,773 Agricultural 1,494 (30 ) - 1,679 3,143 3 3,140 Construction 47 - - (24 ) 23 - 23 Consumer 122 (130 ) 49 83 124 - 124 Other commercial loans 1,327 - 16 (71 ) 1,272 231 1,041 Other agricultural loans 312 (5 ) 1 184 492 26 466 State and political subdivision loans 833 - - (17 ) 816 - 816 Unallocated 98 - - 306 404 - 404 Total $ 8,886 $ (313 ) $ 77 $ 2,540 $ 11,190 $ 410 $ 10,780 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 905 $ (85 ) $ - $ 244 $ 1,064 $ 32 $ 1,032 Commercial 3,376 (100 ) 479 (166 ) 3,589 45 3,544 Agricultural 409 - - 1,085 1,494 54 1,440 Construction 24 - - 23 47 - 47 Consumer 102 (100 ) 88 32 122 - 122 Other commercial loans 1,183 (55 ) 33 166 1,327 326 1,001 Other agricultural loans 122 - - 190 312 30 282 State and political - subdivision loans 593 - - 240 833 - 833 Unallocated 392 - - (294 ) 98 - 98 Total $ 7,106 $ (340 ) $ 600 $ 1,520 $ 8,886 $ 487 $ 8,399

PREMISES & EQUIPMENT (Tables)

PREMISES & EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
PREMISES & EQUIPMENT [Abstract]
Summary of Premises and Equipment	Premises and equipment at December 31, 2018 and 2017 are summarized as follows (in thousands): December 31, 2018 2017 Land $ 5,110 $ 5,110 Buildings 17,496 17,402 Furniture, fixtures and equipment 6,798 6,698 Construction in process 300 16 29,704 29,226 Less: accumulated depreciation 13,431 12,703 Premises and equipment, net $ 16,273 $ 16,523

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]
Gross Carrying Value and Accumulated Amortization of Intangible Assets	The following table provides the gross carrying value and accumulated amortization of intangible assets as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,725 $ (1,066 ) $ 659 $ 1,605 $ (912 ) $ 693 Core deposit intangibles 1,786 (851 ) 935 1,786 (586 ) 1,200 Covenant not to compete 125 (96 ) 29 125 (65 ) 60 Total amortized intangible assets $ 3,636 $ (2,013 ) $ 1,623 $ 3,516 $ (1,563 ) $ 1,953 Unamortized intangible assets: Goodwill $ 23,296 $ 23,296 (1) Excludes fully amortized intangible assets
Future Amortization Expense for Amortized Intangible Assets	The following table provides the current year and estimated future amortization expense for the next five years of amortized intangible assets (in thousands). We based our projections of amortization expense shown below on existing asset balances at December 31, 2018. Future amortization expense may vary from these projections: MSRs Core deposit intangibles Covenant not to compete Total Year ended December 31, 2018 (actual) $ 184 $ 265 $ 31 $ 480 Estimate for year ending December 31, 2019 181 230 29 440 2020 143 197 - 340 2021 111 165 - 276 2022 83 133 - 216 2023 60 100 - 160

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2018
DEPOSITS [Abstract]
Summary of Deposits	The following table shows the breakdown of deposits as of December 31, 2018 and 2017, by deposit type (in thousands): 2018 2017 Non-interest-bearing deposits $ 179,971 $ 171,840 NOW accounts 336,756 337,307 Savings deposits 205,334 184,057 Money market deposit accounts 164,625 145,287 Certificates of deposit 298,470 266,452 Total $ 1,185,156 $ 1,104,943
Maturities of Certificates of Deposit	Following are maturities of certificates of deposit as of December 31, 2018 (in thousands): 2019 $ 135,301 2020 64,136 2021 44,387 2022 34,410 2023 17,332 Thereafter 2,904 Total certificates of deposit $ 298,470

BORROWED FUNDS AND REPURCHASE_2

BORROWED FUNDS AND REPURCHASE AGREEMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
BORROWED FUNDS AND REPURCHASE AGREEMENTS [Abstract]
Borrowed Funds	The following table shows the breakdown of borrowed funds as of December 31, 2018 and 2017 (dollars in thousands): Securities Sold Under Total Agreements to FHLB Federal Funds FRB Notes Term Borrowed Repurchase(a) Advances(b) Lines (c) BIC Line (d) Payable(e) Loans(f) Funds 2018 Balance at December 31 $ 17,983 $ 52,186 $ - $ - $ 7,500 $ 13,525 $ 91,194 Highest balance at any month-end 17,983 114,817 - - 7,500 14,525 154,825 Average balance 15,226 81,123 - 12 7,500 14,051 117,912 Weighted average interest rate: Paid during the year 1.77 % 2.06 % 2.38 % 2.47 % 5.03 % 2.44 % 2.26 % As of year-end 2.19 % 2.62 % 0.00 % 0.00 % 5.56 % 2.40 % 2.74 % 2017 Balance at December 31 $ 14,989 $ 77,650 $ - $ - $ 7,500 $ 14,525 $ 114,664 Highest balance at any month-end 16,643 78,858 - - 7,500 16,525 119,526 Average balance 15,598 29,409 1 2 7,500 16,026 68,536 Weighted average interest rate: Paid during the year 0.97 % 1.25 % 1.52 % 1.75 % 4.06 % 2.44 % 1.77 % As of year-end 1.37 % 1.54 % 0.00 % 0.00 % 4.40 % 2.42 % 1.82 %
Remaining Contractual Maturity of Repurchase Agreements	The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31 and is presented in the following tables (in thousands). Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2018 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 18,970 $ - $ - $ 2,008 $ 20,978 Total carrying value of collateral pledged $ 18,970 $ - $ - $ 2,008 $ 20,978 Total liability recognized for repurchase agreements $ 17,983 2017 Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 $ 18,062 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989
Federal Home Loan Bank Loans by Branch	Interest Rate December 31, December 31, Fixed: Maturity 2018 2017 2.72 % July 12, 2018 - 1,000 1.87 % February 4, 2019 2,000 2,000 2.61 % February 3, 2021 2,000 2,000 3.52 % July 12, 2021 2,000 2,000 2.37 % August 20, 2021 2,800 2,800 2.08 % January 6, 2022 4,725 4,725 Total term loans $ 13,525 $ 14,525
Maturities of Borrowed Funds	Following are maturities of borrowed funds as of December 31, 2018 (in thousands): 2019 $ 78,546 2020 589 2021 7,334 2022 4,725 2023 - Thereafter - Total borrowed funds $ 91,194

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS [Abstract]
Obligation and Net Funded Status	The following table sets forth the obligation and funded status of the Plans as of December 31 (in thousands): 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 19,833 $ 18,603 Service cost 359 349 Interest cost 652 671 Actuarial (Gain) / Loss (1,693 ) 1,015 Benefits paid (1,256 ) (805 ) Benefit obligation at end of year 17,895 19,833 Change in plan assets Fair value of plan assets at beginning of year 19,992 15,786 Actual return (loss) on plan assets (524 ) 2,011 Employer contribution - 3,000 Benefits paid (1,256 ) (805 ) Fair value of plan assets at end of year 18,212 19,992 Funded status $ 317 $ 159
Components of Net Periodic Pension Cost not yet recognized	Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands): Amounts recognized in accumulated other comprehensive loss consists of: 2018 2017 Net loss $ 3,811 $ 4,088 Prior service cost (80 ) (127 ) Total $ 3,731 $ 3,961
Components of Net Periodic Benefit Costs	The components of net periodic benefit costs for the years ended December 31 are as follows (in thousands): 2018 2017 2016 Affected line item on the Consolidated Statement of Income Service cost $ 359 $ 349 $ 345 Salary and Employee Benefits Interest cost 652 671 692 Other Expenses Return on plan assets (1,126 ) (1,094 ) (1,034 ) Other Expenses Net amortization and deferral 186 224 219 Other Expenses Net periodic benefit cost $ 71 $ 150 $ 222
Weighted-average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost (Income)	The weighted-average assumptions used to determine benefit obligations at December 31, 2018 and 2017 is summarized in the following table. Due to the decision to terminate the pension plan acquired as part of the FNB acquisition, the discount rate for the plans will be separated for the 2018 disclosure. The rate for 2017 represents a combined rate of the plans. The change in the discount rate is the primary driver of the actuarial gain that occurred in 2018 of $1,693,000. 2018 2017 Discount rate FCCB Plan 4.00 % 3.35 % Discount rate FNB Plan 3.49 % 3.35 % Rate of compensation increase 3.00 % 3.00 % The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31: 2018 2017 2016 Discount rate 3.35 % 3.78 % 3.94 % Expected long-term return on plan assets FCCB plan 7.00 % 7.00 % 7.00 % Expected long-term return on plan assets FNB plan 3.00 % 7.00 % 7.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 %
Fair Value of Plan Assets	The following table sets forth by level, within the fair value hierarchy as defined in footnote 18, the Plan’s assets at fair value as of December 31, 2018 and 2017 (dollars in thousands): 2018 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 5,057 $ - $ - $ 5,057 27.8 % Equity Securities 4,891 - - 4,815 26.8 % Mutual Funds and ETF's 5,114 - - 5,114 28.1 % Corporate Bonds - 3,150 - 3,150 17.3 % Municipal Bonds - - 0.0 % U.S. Agency Securities - - - - 0.0 % Certificate of deposit - - - - 0.0 % Total $ 15,062 $ 3,150 $ - $ 18,212 100.0 % 2017 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 3,827 $ - $ - $ 3,827 19.1 % Equity Securities 6,018 - - 6,018 30.1 % Mutual Funds and ETF's 6,090 - - 6,090 30.5 % Corporate Bonds - 3,469 - 3,469 17.4 % Municipal Bonds 105 105 0.5 % U.S. Agency Securities - 483 - 483 2.4 % Certificate of deposit - - - - 0.0 % Total $ 15,935 $ 4,057 $ - $ 19,992 100.0 %
Expected Future Benefit Payments	Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands): 2019 $ 7,863 2020 1,238 2021 1,080 2022 531 2023 559 2024 - 2028 5,907
Vesting, Awarding and Forfeiting of Restricted Shares	The following table details the vesting, awarding and forfeiting of restricted shares during 2018: 2018 Weighted Average Shares Market Price Outstanding, beginning of year 8,783 $ 51.20 Granted 5,826 62.74 Vested (4,845 ) 50.94 Outstanding, end of year 9,764 $ 58.21

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
INCOME TAXES [Abstract]
Provision for Income Taxes	The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 Currently payable $ 3,838 $ 4,583 $ 2,672 Change in corporate tax rate - 1,531 - Deferred (435 ) (83 ) 362 Provision for income taxes $ 3,403 $ 6,031 $ 3,034
Deferred Tax Assets and Liabilities	The following temporary differences gave rise to the net deferred tax asset and liabilities at December 31, 2018 and 2017, respectively (in thousands): 2018 2017 Deferred tax assets: Allowance for loan losses $ 3,323 $ 3,058 Deferred compensation 479 464 Merger & acquisition costs 5 7 Allowance for losses on available-for-sale securities 5 6 Pension and other retirement obligation 301 297 Interest on non-accrual loans 1,126 917 Incentive plan accruals 361 324 Other real estate owned 1 108 Unrealized losses on available-for-sale securities 259 71 Low income housing tax credits 139 64 NOL carry forward 212 339 Other 134 125 Total $ 6,345 $ 5,780 Deferred tax liabilities: Premises and equipment $ (612 ) $ (623 ) Investment securities accretion (53 ) (66 ) Loan fees and costs (253 ) (257 ) Goodwill and core deposit intangibles (2,229 ) (2,200 ) Mortgage servicing rights (139 ) (146 ) Other (4 ) (7 ) Total (3,290 ) (3,299 ) Deferred tax asset, net $ 3,055 $ 2,481
Reconciliation of Statutory Tax Rates to Effective Tax Rates	The total provision for income taxes is different from that computed at the statutory rates due to the following items (dollars in thousands): Year Ended December 31, 2018 2017 2016 Provision at statutory rates on pre-tax income $ 4,502 $ 6,505 $ 5,328 Effect of tax-exempt income (955 ) (1,710 ) (1,943 ) Low income housing tax credits (141 ) (141 ) (198 ) Bank owned life insurance (131 ) (225 ) (234 ) Nondeductible interest 41 54 55 Nondeductible merger and acquisition expenses - - - Change in tax rate - 1,531 - Other items 87 17 26 Provision for income taxes $ 3,403 $ 6,031 $ 3,034 Statutory tax rates 21 % 35 % 35 % Effective tax rates 15.9 % 31.6 % 19.4 %

OTHER COMPREHENSIVE INCOME (Tab

OTHER COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2018
OTHER COMPREHENSIVE INCOME [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax	The components of accumulated other comprehensive loss, net of tax, as of December 31, were as follows (in thousands): 2018 2017 Net unrealized gain on securities available for sale $ (1,232 ) $ (340 ) Tax effect 259 71 Net -of-tax amount (973 ) (269 ) Unrecognized pension costs (3,731 ) (3,961 ) Tax effect 783 832 Net -of-tax amount (2,948 ) (3,129 ) Total accumulated other comprehensive income $ (3,921 ) $ (3,398 ) The following tables present the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2018, 2017 and 2016 (in thousands): Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) (730 ) (403 ) (1,133 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (168 ) 145 (23 ) Net current period other comprehensive income (loss) (898 ) (258 ) (1,156 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) (847 ) (65 ) (912 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (683 ) 148 (535 ) Net current period other comprehensive income (loss) (1,530 ) 83 (1,447 ) Change in other comprehensive income due to change in the federal tax rate (45 ) (514 ) (559 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) Change in Accounting policy for equity securities 1 1 Other comprehensive income (loss) before reclassifications (net of tax) (720 ) 34 (686 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) 15 147 162 Net current period other comprehensive income (loss) (705 ) 181 (524 ) Balance as of December 31, 2018 $ (973 ) $ (2,948 ) $ (3,921 ) (a) Amounts in parentheses indicate debits to stockholders equity
Significant Amounts Reclassified out of each Component of Accumulated Other Comprehensive Loss	The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income December 31, 2018 2017 2016 Unrealized gains and losses on available for sale securities $ (19 ) $ 1,035 $ 255 Available for sale securities gains, net 4 (352 ) (87 ) Provision for income taxes $ (15 ) $ 683 $ 168 Net of tax Defined benefit pension items $ (186 ) $ (225 ) $ (219 ) Other expenses 39 77 74 Provision for income taxes $ (147 ) $ (148 ) $ (145 ) Net of tax Total reclassifications $ (162 ) $ 535 $ 23 (a) Amounts in parentheses indicate debits to the consolidated statement of income

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS [Abstract]
Summary of Loan Activity with Officers, Directors, Stockholders and Associates	A summary of loan activity for the years ended December 31, 2018 and 2017 with officers, directors, stockholders and associates of such persons is listed below (in thousands): Year Ended December 31, 2018 2017 Balance, beginning of year $ 4,585 $ 5,570 New loans 14,377 4,161 Repayments (4,868 ) (5,146 ) Balance, end of year $ 14,094 $ 4,585

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2018
REGULATORY MATTERS [Abstract]
Capital Ratios under Banking Regulations	The Company and Bank’s computed risk‑based capital ratios are as follows as of December 31, 2018 and 2017 (dollars in thousands): Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 141,272 13.42 % $ 84,227 8.00 % $ 105,284 10.00 % Bank $ 134,841 12.82 % $ 84,141 8.00 % $ 105,176 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 128,224 12.18 % $ 63,171 6.00 % $ 84,227 8.00 % Bank $ 121,792 11.58 % $ 63,106 6.00 % $ 84,141 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 120,724 11.47 % $ 47,378 4.50 % $ 68,435 6.50 % Bank $ 121,792 11.58 % $ 47,329 4.50 % $ 68,364 6.50 % Tier 1 Capital (to Average Assets): Company $ 128,224 9.15 % $ 56,041 4.00 % $ 70,051 5.00 % Bank $ 121,792 8.70 % $ 56,018 4.00 % $ 70,023 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 128,578 13.20 % $ 77,906 8.00 % $ 97,383 10.00 % Bank $ 122,469 12.58 % $ 77,852 8.00 % $ 97,315 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 117,224 12.04 % $ 58,430 6.00 % $ 77,906 8.00 % Bank $ 111,114 11.42 % $ 58,389 6.00 % $ 77,852 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 109,724 11.27 % $ 43,822 4.50 % $ 63,299 6.50 % Bank $ 111,114 11.42 % $ 43,792 4.50 % $ 63,255 6.50 % Tier 1 Capital (to Average Assets): Company $ 117,224 9.18 % $ 51,085 4.00 % $ 63,857 5.00 % Bank $ 111,114 8.71 % $ 51,023 4.00 % $ 63,778 5.00 %

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
Financial Instruments whose Contract Amounts Represent Credit Risk	Financial instruments, whose contract amounts represent credit risk at December 31, 2018 and 2017, are as follows (in thousands): 2018 2017 Commitments to extend credit $ 199,183 $ 188,482 Standby letters of credit 16,311 15,244 $ 215,494 $ 203,726

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	12 Months Ended
	Dec. 31, 2018
OPERATING LEASES [Abstract]
Future Minimum Rental Payments under Operating Leases	The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2018 ( in thousands): 2019 388 2020 232 2021 184 2022 171 2023 81 Thereafter 72 Total $ 1,128

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Assets Measured at Fair Value on a Recurring Basis	The following tables present the assets reported on the consolidated balance sheet at their fair value on a recurring basis as of December 31, 2018 and 2017 (in thousands) 2018 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Equity securities $ 516 $ - $ - $ 516 Available for sale securities: U.S. Agency securities - 106,385 - 106,385 U.S. Treasuries securities 33,358 - - 33,358 Obligations of state and political subdivisions - 52,047 - 52,047 Corporate obligations - 3,034 - 3,034 Mortgage-backed securities in government sponsored entities - 46,186 - 46,186 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91
Assets Measured at Fair Value on Non-recurring Basis	Assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 (in thousands) 2018 Level I Level II Level III Total Impaired Loans $ - $ - $ 5,815 $ 5,815 Other real estate owned - - 532 532 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024
Significant Unobservable Inputs Used in Fair Value Measurement Process	The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques (dollars in thousands). Quantitative Information about Level 3 Fair Value Measurements 2018 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 5,815 Appraised Collateral Values Discount for time since appraisal 0-100% 19.22% Selling costs 5%-12% 8.70% Holding period 6 - 12 months 11.61 months Other real estate owned 532 Appraised Collateral Values Discount for time since appraisal 20-55% 31.44% 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans 1,569 Appraised Collateral Values Discount for time since appraisal 0-100% 30.83% Selling costs 5%-9% 8.35% Holding period 6 - 12 months 11 months Other real estate owned 1,024 Appraised Collateral Values Discount for time since appraisal 15-65% 26.26%
Fair Value of Financial Instruments	The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows (in thousands): Carrying December 31, 2018 Amount Fair Value Level I Level II Level III Financial assets: Interest bearing time deposits with other banks $ 15,498 $ 15,422 $ - $ - 15,422 Loans held for sale 1,127 1,126 - - 1,126 Net loans 1,068,999 1,062,645 - - 1,062,645 Financial liabilities: Deposits $ 1,185,156 $ 1,180,694 $ 886,686 $ - $ 294,008 Borrowed funds 91,194 90,427 - - 90,427 Carrying December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Interest bearing time deposits with other banks $ 10,283 $ 10,287 $ - $ - 10,287 Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802

CONDENSED FINANCIAL INFORMATI_2

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Tables)	12 Months Ended
	Dec. 31, 2018
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract]
Condensed Financial Information	The following is condensed financial information for Citizens Financial Services, Inc.: CITIZENS FINANCIAL SERVICES, INC. CONDENSED BALANCE SHEET December 31, (in thousands) 2018 2017 Assets: Cash $ 5,576 $ 6,238 Available-for-sale securities 516 91 Investment in subsidiary: First Citizens Community Bank 140,298 130,402 Other assets 813 369 Total assets $ 147,203 $ 137,100 Liabilities: Other liabilities $ 474 $ 589 Borrowed funds 7,500 7,500 Total liabilities 7,974 8,089 Stockholders' equity 139,229 129,011 Total liabilities and stockholders' equity $ 147,203 $ 137,100 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF INCOME Year Ended December 31, (in thousands) 2018 2017 2016 Dividends from: Bank subsidiary $ 8,248 $ 7,507 $ 5,842 Equity securities 7 60 92 Total income 8,255 7,567 5,934 Realized securities gains (losses) - 1,021 31 Expenses 642 824 463 Income before equity in undistributed earnings of subsidiary 7,613 7,764 5,502 Equity in undistributed earnings - First Citizens Community Bank 10,421 5,261 7,136 Net income $ 18,034 $ 13,025 $ 12,638 Comprehensive income $ 17,510 $ 11,578 $ 11,482 CITIZENS FINANCIAL SERVICES, INC. STATEMENT OF CASH FLOWS Year Ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 18,034 $ 13,025 $ 12,638 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (10,421 ) (5,261 ) (7,136 ) Investment securities (gains) losses, net - (1,021 ) (31 ) Other, net (251 ) 629 230 Net cash provided by operating activities 7,362 7,372 5,701 Cash flows from investing activities: Purchases of equity securities (425 ) (94 ) (1 ) Proceeds from the sale of available-for-sale securities - 2,828 201 Net cash provided by (used in) investing activities (425 ) 2,734 200 Cash flows from financing activities: Cash dividends paid (6,116 ) (5,177 ) (5,081 ) Purchase of treasury stock (1,483 ) (979 ) (3,227 ) Reissuance of treasury stock to employee stock purchase plan - 43 59 Purchase of restricted stock - - - Net cash used in financing activities (7,599 ) (6,113 ) (8,249 ) Net (decrease) increase in cash (662 ) 3,993 (2,348 ) Cash at beginning of year 6,238 2,245 4,593 Cash at end of year $ 5,576 $ 6,238 $ 2,245

CONSOLIDATED CONDENSED QUARTE_2

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2018
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
Consolidated Condensed Quarterly Data	The following table presents summarized quarterly financial data for 2018 and 2017: (in thousands, except per share data) Three Months Ended, 2018 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 13,383 $ 14,028 $ 14,259 $ 15,088 Interest expense 1,963 2,277 2,489 2,845 Net interest income 11,420 11,751 11,770 12,243 Provision for loan losses 500 325 475 625 Non-interest income 1,900 1,835 2,022 1,997 Investment securities gains, net 6 7 (12 ) (20 ) Non-interest expenses 7,832 7,702 7,788 8,235 Income before provision for income taxes 4,994 5,566 5,517 5,360 Provision for income taxes 747 875 936 845 Net income $ 4,247 $ 4,691 $ 4,581 $ 4,515 Earnings Per Share Basic $ 1.20 $ 1.34 $ 1.31 $ 1.29 Earnings Per Share Diluted $ 1.20 $ 1.34 $ 1.31 $ 1.29 (in thousands, except per share data) Three Months Ended, 2017 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 11,300 $ 11,778 $ 12,120 $ 12,895 Interest expense 1,303 1,374 1,503 1,659 Net interest income 9,997 10,404 10,617 11,236 Provision for loan losses 615 625 500 800 Non-interest income 1,863 1,865 1,912 1,981 Investment securities gains, net 172 23 9 831 Non-interest expenses 7,191 7,166 7,247 7,710 Income before provision for income taxes 4,226 4,501 4,791 5,538 Provision for income taxes 923 1,033 1,141 2,934 Net income $ 3,303 $ 3,468 $ 3,650 $ 2,604 Earnings Per Share Basic $ 0.93 $ 0.99 $ 1.04 $ 0.74 Earnings Per Share Diluted $ 0.93 $ 0.99 $ 1.04 $ 0.74

ACQUISITION OF STATE COLLEGE _2

ACQUISITION OF STATE COLLEGE BRANCH (Tables)	12 Months Ended
	Dec. 31, 2018
ACQUISITION OF STATE COLLEGE BRANCH [Abstract]
Summarizes the Purchase Price of Branch	The following table summarizes the purchase of the branch as of December 7, 2017: (In Thousands) Purchase Price Consideration in cash $ 1,044 Net Assets Acquired for cash Loans, interest, PP&E less deposits, interest and escrow payable 3,509 Total cash consideration 4,553 Net Assets Acquired for cash $ 3,509 Adjustments to reflect assets acquired at fair value: Loans Interest rate (522 ) General credit (740 ) Core deposit intangible 145 Adjustments to reflect liabilities acquired at fair value: Time deposits (46 ) Acquired net assets at fair value 2,346 Goodwill resulting from acquisition $ 2,207
Asset Acquired and Liability Assumed	The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 4,553 Net assets acquired: Cash and cash equivalents $ 154 Loans 39,847 Premises and equipment, net 86 Accrued interest receivable 74 Intangibles 145 Deposits (37,880 ) Accrued interest payable (29 ) Other liabilities (51 ) 2,346 Goodwill resulting from the branch acquisition $ 2,207

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018USD ($)Security$ / shares	Sep. 30, 2018USD ($)$ / shares	Jun. 30, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2018USD ($)BranchSegmentSecurity$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Business and Organization [Abstract]
Number of full service banking offices | Branch									26
Operating Segments [Abstract]
Number of operating segments | Segment									1
Cash and Cash Equivalents [Abstract]
Interest earning deposits maturity, Maximum for inclusion as cash equivalents									90 days
Investment Securities [Abstract]
Number of classifications of investment securities | Security	3								3
Held-to-maturity securities	$ 0				$ 0				$ 0	$ 0
Trading securities	0				0				$ 0	0
Allowance for Loan Losses [Abstract]
Number of days past for loan to be considered impaired									90 days
Goodwill [Abstract]
Goodwill impairment loss									$ 0	0	$ 0
Bank Owned Life Insurance [Abstract]
Benefit in excess of the cash surrender value									50.00%
Obligation included in other liabilities	648				578				$ 648	$ 578
Income Taxes [Abstract]
Federal corporate tax rate									21.00%	35.00%	35.00%
Net deferred tax asset										$ 1,531
Advertising Costs [Abstract]
Advertising cost									$ 361	343	$ 356
Recent Accounting Pronouncements - Adopted [Abstract]
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings	1				0				1	0
Salaries and employee benefits									19,094	17,655	16,533
Other noninterest expenses									6,170	5,822	6,522
Basic earnings per share computation [Abstract]
Net income applicable to common stock	$ 4,515	$ 4,581	$ 4,691	$ 4,247	$ 2,604	$ 3,650	$ 3,468	$ 3,303	$ 18,034	$ 13,025	$ 12,638
Weighted average common shares outstanding (in shares) | shares									3,505,218	3,515,638	3,541,769
Earnings per share - basic (in dollars per share) | $ / shares	$ 1.29	$ 1.31	$ 1.34	$ 1.20	$ 0.74	$ 1.04	$ 0.99	$ 0.93	$ 5.14	$ 3.70	$ 3.57
Diluted earnings per share computation [Abstract]
Net income applicable to common stock	$ 4,515	$ 4,581	$ 4,691	$ 4,247	$ 2,604	$ 3,650	$ 3,468	$ 3,303	$ 18,034	$ 13,025	$ 12,638
Weighted average common shares outstanding for basic earnings per share (in shares) | shares									3,505,218	3,515,638	3,541,769
Add: Dilutive effects of restricted stock (in shares) | shares									1,988	1,724	1,556
Weighted average common shares outstanding for dilutive earnings per share (in shares) | shares									3,507,206	3,517,362	3,543,325
Earnings per share - dilutive (in dollars per share) | $ / shares	$ 1.29	$ 1.31	$ 1.34	$ 1.20	$ 0.74	$ 1.04	$ 0.99	$ 0.93	$ 5.14	$ 3.70	$ 3.57
Minimum [Member]
Allowance for Loan Losses [Abstract]
Number of days past for loan to be considered impaired									90 days
ASU 2017-07 [Member]
Recent Accounting Pronouncements - Adopted [Abstract]
Salaries and employee benefits										$ (199,000)	$ (123,000)
Other noninterest expenses										199,000	123,000
ASU 2016-02 [Member] | Plan [Member]
Recent Accounting Pronouncements - Not yet effective [Abstract]
Right to use asset	$ 1,500								$ 1,500
Lease liability	$ 1,500								$ 1,500
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Premises and Equipment [Abstract]
Useful life									3 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Useful life									15 years
Building Premises [Member] | Minimum [Member]
Premises and Equipment [Abstract]
Useful life									5 years
Building Premises [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Useful life									40 years
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life									10 years
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life									4 years
Retained Earnings [Member]
Recent Accounting Pronouncements - Adopted [Abstract]
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings					$ (1)					(1)
Basic earnings per share computation [Abstract]
Net income applicable to common stock									$ 18,034	13,025	12,638
Diluted earnings per share computation [Abstract]
Net income applicable to common stock									$ 18,034	13,025	$ 12,638
Retained Earnings [Member] | ASU 2016-01 [Member]
Recent Accounting Pronouncements - Adopted [Abstract]
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings					(1,000)					(1,000)
Accumulated Other Comprehensive Income (Loss) [Member]
Recent Accounting Pronouncements - Adopted [Abstract]
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings					1					1
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2016-01 [Member]
Recent Accounting Pronouncements - Adopted [Abstract]
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings					$ 1,000					$ 1,000
Restricted Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive restricted stock excluded from net income per share calculations (in shares) | shares									3,201	3,403	3,087
Restricted Stock [Member] | Minimum [Member]
Antidilutive Securities [Abstract]
Antidilutive stock share price range (in dollars per share) | $ / shares									$ 47.81	$ 46.69	$ 46.69
Restricted Stock [Member] | Maximum [Member]
Antidilutive Securities [Abstract]
Antidilutive stock share price range (in dollars per share) | $ / shares									$ 61.04	$ 53.15	$ 53.15

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue from Customers [Abstract]
Revenue from customers	$ 6,512
Service Charges [Member]
Revenue from Customers [Abstract]
Revenue from customers	4,667
Overdraft Fees [Member]
Revenue from Customers [Abstract]
Revenue from customers	1,551
Statement Fees [Member]
Revenue from Customers [Abstract]
Revenue from customers	206
Interchange Revenue [Member]
Revenue from Customers [Abstract]
Revenue from customers	2,259
ATM Income [Member]
Revenue from Customers [Abstract]
Revenue from customers	400
Other Service Charges [Member]
Revenue from Customers [Abstract]
Revenue from customers	251
Trust [Member]
Revenue from Customers [Abstract]
Revenue from customers	705	$ 755	$ 693
Brokerage and Insurance [Member]
Revenue from Customers [Abstract]
Revenue from customers	790	$ 635	$ 766
Other [Member]
Revenue from Customers [Abstract]
Revenue from customers	$ 350
Revenue [Member] | Product Concentration Risk [Member] | Products and Services Not within the Scope of ASC 606 [Member]
Concentration Risk [Abstract]
Concentration risk percentage	89.90%

RESTRICTIONS ON CASH AND DUE _2

RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
Cash reserves at the Federal Reserve Bank	$ 2,751	$ 2,645
Cash FDIC insured amount, maximum	$ 250

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Security	Dec. 31, 2017USD ($)Security	Dec. 31, 2016USD ($)Security
Debt Securities [Abstract]
Amortized cost	$ 242,242
Fair value	241,010
Total Available-for-sale Securities [Abstract]
Amortized cost	242,242	$ 255,122
Gross unrealized gains	752	948
Gross unrealized losses	(1,984)	(1,288)
Fair value	$ 241,010	254,782
Number of securities owned with fair value less than cost | Security	110
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	$ 25,180	145,686
Twelve months or greater, Fair value	126,094	36,708
Total, Fair value	151,274	182,394
Less than twelve months, Gross unrealized losses	(76)	(875)
Twelve months or greater, Gross unrealized losses	(1,908)	(413)
Total, Gross Unrealized Losses	(1,984)	(1,288)
Proceeds from sale of securities available-for-sale	27,149	58,177	$ 22,372
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities	160	1,205	312
Gross losses on available for sale securities	(179)	(170)	(57)
Net (losses) gains	(19)	1,035	255
Investment securities pledged as collateral	221,191	243,382
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Due in one year or less	23,212
Due after one year through five years	111,439
Due after five years through ten years	55,904
Due after ten years	51,687
Amortized cost	242,242
Available-for-Sale Debt Securities, Fair Value [Abstract]
Due in one year or less	23,138
Due after one year through five years	110,666
Due after five years through ten years	55,838
Due after ten years	51,368
Total	241,010
U.S. Agency Securities [Member]
Debt Securities [Abstract]
Amortized cost	106,516	99,454
Gross Unrealized Gains	509	26
Gross Unrealized Losses	(640)	(593)
Fair value	106,385	98,887
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	5,981	74,952
Twelve months or greater, Fair value	52,673	16,928
Total, Fair value	58,654	91,880
Less than twelve months, Gross unrealized losses	(5)	(421)
Twelve months or greater, Gross unrealized losses	(635)	(172)
Total, Gross Unrealized Losses	(640)	(593)
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities		$ 23	72
Gross losses on available for sale securities	$ (179)		$ (22)
Available-for-sale securities sold at a gross gain | Security		10	4
Available-for-sale securities sold at a gross loss | Security	7		4
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Amortized cost	$ 106,516	$ 99,454
Available-for-Sale Debt Securities, Fair Value [Abstract]
Total	106,385	98,887
U.S. Treasuries [Member]
Debt Securities [Abstract]
Amortized cost	33,813	28,782
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(455)	(178)
Fair value	33,358	28,604
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	4,948	28,604
Twelve months or greater, Fair value	28,410	0
Total, Fair value	33,358	28,604
Less than twelve months, Gross unrealized losses	(31)	(178)
Twelve months or greater, Gross unrealized losses	(424)	0
Total, Gross Unrealized Losses	(455)	(178)
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities			$ 27
Gross losses on available for sale securities		$ (170)	$ (11)
Available-for-sale securities sold at a gross gain | Security			2
Available-for-sale securities sold at a gross loss | Security		14	1
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Amortized cost	33,813	$ 28,782
Available-for-Sale Debt Securities, Fair Value [Abstract]
Total	33,358	28,604
Obligations of State and Political Subdivisions [Member]
Debt Securities [Abstract]
Amortized cost	52,074	78,409
Gross Unrealized Gains	150	820
Gross Unrealized Losses	(177)	(139)
Fair value	52,047	79,090
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	8,979	14,885
Twelve months or greater, Fair value	12,441	5,958
Total, Fair value	21,420	20,843
Less than twelve months, Gross unrealized losses	(22)	(85)
Twelve months or greater, Gross unrealized losses	(155)	(54)
Total, Gross Unrealized Losses	(177)	(139)
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities	$ 160		$ 80
Available-for-sale securities sold at a gross gain | Security	14		4
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Amortized cost	$ 52,074	78,409
Available-for-Sale Debt Securities, Fair Value [Abstract]
Total	52,047	79,090
Interest-bearing Deposits [Member]
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities		$ 13
Available-for-sale securities sold at a gross gain | Security		13
Corporate Obligations [Member]
Debt Securities [Abstract]
Amortized cost	3,000	$ 3,000
Gross Unrealized Gains	34	83
Gross Unrealized Losses	0	0
Fair value	3,034	3,083
Realized investment gains (losses) [Abstract]
Gross losses on available for sale securities			$ (35)
Available-for-sale securities sold at a gross loss | Security			6
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Amortized cost	3,000	3,000
Available-for-Sale Debt Securities, Fair Value [Abstract]
Total	3,034	3,083
Mortgage-backed Securities in Government Sponsored Entities [Member]
Debt Securities [Abstract]
Amortized cost	46,839	45,385
Gross Unrealized Gains	59	19
Gross Unrealized Losses	(712)	(377)
Fair value	46,186	45,027
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	5,272	27,154
Twelve months or greater, Fair value	32,570	13,822
Total, Fair value	37,842	40,976
Less than twelve months, Gross unrealized losses	(18)	(190)
Twelve months or greater, Gross unrealized losses	(694)	(187)
Total, Gross Unrealized Losses	(712)	(377)
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities		$ 20	$ 69
Available-for-sale securities sold at a gross gain | Security		1	5
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Amortized cost	46,839	$ 45,385
Available-for-Sale Debt Securities, Fair Value [Abstract]
Total	46,186	45,027
Equity Securities in Financial Institutions [Member]
Equity Securities [Abstract]
Amortized cost		92
Gross unrealized gains		0
Gross unrealized losses		(1)
Fair value		91
Available-for-sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value		91
Twelve months or greater, Fair value		0
Total, Fair value		91
Less than twelve months, Gross unrealized losses		(1)
Twelve months or greater, Gross unrealized losses		0
Total, Gross Unrealized Losses		(1)
Realized investment gains (losses) [Abstract]
Gross gains on available for sale securities	0	$ 1,149	$ 133
Gross losses on available for sale securities	$ 0
Available-for-sale securities sold at a gross gain | Security		5	3

LOANS AND RELATED ALLOWANCE F_3

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 11, 2015
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			$ 1,081,883	$ 1,000,525
Individually evaluated for impairment			23,450	24,398
Loans acquired with deteriorated credit quality			1,859	2,638
Collectively evaluated for impairment			1,056,574	973,489
Allowance for loan losses			12,884	11,190
Allowance for loan losses related to individually evaluated for impairment			676	410	$ 487
Allowance for loan losses related to loans acquired with deteriorated credit quality			0	0
Allowance for loan losses related to collectively evaluated for impairment			12,208	10,780	8,399
Net loans			1,068,999	989,335
Net loans, individually evaluated for impairment			22,774	23,988
Net loans, loans acquired with deteriorated credit quality			1,859	2,638
Net loans, collectively evaluated for impairment			1,044,366	962,709
Net unamortized loan fees and costs			918	794
Real estate loans serviced for Freddie Mac and Fannie Mae			142,072	142,972
Real estate loans sold to Freddie Mac and Fannie Mae without recourse	$ 122,219	$ 114,643
Portfolio balance under MPF			24,853	28,329
First-loss position for MPF maintained by FHLB			133
Credit enhancement for MPF by FHLB	$ 856
Number of days past for loan to be considered impaired, Minimum	90 days
Minimum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Number of days past for loan to be considered impaired, Minimum	90 days
First Mortgage [Member] | Minimum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	15 years
First Mortgage [Member] | Maximum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	30 years
Second Mortgage [Member] | Maximum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	15 years
Real Estate Loans [Member] | Residential [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			215,305	214,479
Individually evaluated for impairment			890	1,065
Loans acquired with deteriorated credit quality			28	33
Collectively evaluated for impairment			214,387	213,381
Allowance for loan losses related to individually evaluated for impairment			24	56	32
Allowance for loan losses related to collectively evaluated for impairment			1,081	993	1,032
Real Estate Loans [Member] | Commercial [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			319,265	308,084
Individually evaluated for impairment			13,327	13,864
Loans acquired with deteriorated credit quality			1,321	1,460
Collectively evaluated for impairment			304,617	292,760
Allowance for loan losses related to individually evaluated for impairment			216	94	45
Allowance for loan losses related to collectively evaluated for impairment			3,899	3,773	3,544
Real Estate Loans [Member] | Agricultural [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			284,520	239,957
Individually evaluated for impairment			5,592	3,901
Loans acquired with deteriorated credit quality			0	702
Collectively evaluated for impairment			278,928	235,354
Allowance for loan losses related to individually evaluated for impairment			84	3	54
Allowance for loan losses related to collectively evaluated for impairment			4,180	3,140	1,440
Real Estate Loans [Member] | Construction [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			33,913	13,502
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			33,913	13,502
Allowance for loan losses related to individually evaluated for impairment			0	0	0
Allowance for loan losses related to collectively evaluated for impairment			58	23	47
Consumer [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			9,858	9,944
Individually evaluated for impairment			0	8
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			9,858	9,936
Allowance for loan losses related to individually evaluated for impairment			0	0	0
Allowance for loan losses related to collectively evaluated for impairment			120	124	122
Other Commercial Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			74,118	72,013
Individually evaluated for impairment			2,206	4,197
Loans acquired with deteriorated credit quality			510	443
Collectively evaluated for impairment			71,402	67,373
Allowance for loan losses related to individually evaluated for impairment			193	231	326
Allowance for loan losses related to collectively evaluated for impairment			1,161	1,041	1,001
Other Agricultural Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			42,186	37,809
Individually evaluated for impairment			1,435	1,363
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			40,751	36,446
Allowance for loan losses related to individually evaluated for impairment			159	26	30
Allowance for loan losses related to collectively evaluated for impairment			593	466	282
State and Political Subdivision Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			102,718	104,737
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			102,718	104,737
Allowance for loan losses related to individually evaluated for impairment			0	0	0
Allowance for loan losses related to collectively evaluated for impairment			762	816	833
First National Bank of Fredericksburg [Member]
Components of the purchase accounting adjustments related to the purchased impaired loans in FNB Acquisition [Abstract]
Estimated fair value						$ 3,809
Contractually required principal and interest at acquisition						9,913
Expected cash flows						4,474
Non-accretable discount						5,439
Accretable discount	$ 106	389	104	106	$ 389	665
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward]
Balance at beginning of period	106	389
Accretion	(95)	(632)
Reclassification of non-accretable discount	93	349
Balance at end of period	$ 104	$ 106
Loans acquired with specific evidence of deterioration in credit quality [Abstract]
Outstanding balance			4,529	5,295		$ 6,969
Carrying amount			$ 1,859	$ 2,638

LOANS AND RELATED ALLOWANCE F_4

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Impaired Financing Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	$ 27,160	$ 28,887
Recorded Investment With No Allowance	16,802	21,756
Recorded Investment With Allowance	6,648	2,642
Total Recorded Investment	23,450	24,398
Related Allowance	676	410
Average Recorded Investment	24,743	22,392	$ 12,874
Interest Income Recognized	786	750	201
Interest Income Recognized Cash Basis	20	59	7
Real Estate Loans [Member] | Mortgages [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	932	1,055
Recorded Investment With No Allowance	515	273
Recorded Investment With Allowance	288	700
Total Recorded Investment	803	973
Related Allowance	10	47
Average Recorded Investment	944	900	590
Interest Income Recognized	13	13	13
Interest Income Recognized Cash Basis	0	0	0
Real Estate Loans [Member] | Home Equity [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	106	92
Recorded Investment With No Allowance	12	40
Recorded Investment With Allowance	75	52
Total Recorded Investment	87	92
Related Allowance	14	9
Average Recorded Investment	95	67	59
Interest Income Recognized	4	4	4
Interest Income Recognized Cash Basis	0	0	0
Real Estate Loans [Member] | Commercial [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	16,326	16,363
Recorded Investment With No Allowance	11,933	13,154
Recorded Investment With Allowance	1,394	710
Total Recorded Investment	13,327	13,864
Related Allowance	216	94
Average Recorded Investment	13,907	11,567	5,959
Interest Income Recognized	506	385	69
Interest Income Recognized Cash Basis	20	7	1
Real Estate Loans [Member] | Agricultural [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	5,598	5,231
Recorded Investment With No Allowance	2,386	3,283
Recorded Investment With Allowance	3,206	618
Total Recorded Investment	5,592	3,901
Related Allowance	84	3
Average Recorded Investment	4,736	3,574	361
Interest Income Recognized	151	131	17
Interest Income Recognized Cash Basis	0	0	0
Consumer [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance		10
Recorded Investment With No Allowance		2
Recorded Investment With Allowance		6
Total Recorded Investment		8
Related Allowance		0
Average Recorded Investment	1	3	0
Interest Income Recognized	0	0	0
Interest Income Recognized Cash Basis	0	0	0
Other Commercial Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	2,711	4,739
Recorded Investment With No Allowance	1,836	3,766
Recorded Investment With Allowance	370	431
Total Recorded Investment	2,206	4,197
Related Allowance	193	231
Average Recorded Investment	3,659	4,790	5,715
Interest Income Recognized	89	152	87
Interest Income Recognized Cash Basis	0	52	6
Other Agricultural Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	1,487	1,397
Recorded Investment With No Allowance	120	1,238
Recorded Investment With Allowance	1,315	125
Total Recorded Investment	1,435	1,363
Related Allowance	159	26
Average Recorded Investment	1,401	1,491	190
Interest Income Recognized	23	65	11
Interest Income Recognized Cash Basis	$ 0	$ 0	$ 0

LOANS AND RELATED ALLOWANCE F_5

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Credit Quality Indicator (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable by credit exposure [Abstract]
Total	$ 225,163	$ 224,423
Minimum [Member]
Financing Receivable [Abstract]
Percentage of dollar volume of commercial loan portfolio to be reviewed	50.00%
Amount over which all new loans to be reviewed	$ 1,000
Amount over which all relationships to be reviewed	1,000
Amount which is 30 days past due to be reviewed for all aggregate loan relationships	750
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	319,265	308,084
Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	284,520	239,957
Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	33,913	13,502
Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	156,487	154,345
Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	58,818	60,134
Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,858	9,944
Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	74,118	72,013
Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	42,186	37,809
State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	102,718	104,737
Pass [Member]
Financing Receivable by credit exposure [Abstract]
Total	798,054	714,049
Pass [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	297,690	281,742
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	264,732	222,198
Pass [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	33,913	13,364
Pass [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	70,425	67,706
Pass [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	38,628	34,914
Pass [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	92,666	94,125
Special Mention [Member]
Financing Receivable by credit exposure [Abstract]
Total	32,791	28,507
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,792	15,029
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,017	11,538
Special Mention [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Special Mention [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	777	615
Special Mention [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,724	1,325
Special Mention [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,481	0
Substandard [Member]
Financing Receivable by credit exposure [Abstract]
Total	25,719	33,379
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,743	11,271
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,771	6,221
Substandard [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	138
Substandard [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	2,800	3,567
Substandard [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,834	1,570
Substandard [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	571	10,612
Doubtful [Member]
Financing Receivable by credit exposure [Abstract]
Total	156	167
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	40	42
Doubtful [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	116	125
Doubtful [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Internally Assigned Grade [Member]
Financing Receivable by credit exposure [Abstract]
Total	856,720	776,102
Performing [Member]
Financing Receivable by credit exposure [Abstract]
Total	223,928	222,737
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	155,360	152,820
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	58,736	60,022
Performing [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,832	9,895
Nonperforming [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,207	1,653
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,099	1,492
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	82	112
Nonperforming [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	26	49
PCI [Member]
Financing Receivable by credit exposure [Abstract]
Total	28	33
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	28	33
PCI [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
PCI [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	$ 0	$ 0

LOANS AND RELATED ALLOWANCE F_6

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Past Due (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Recorded investment of past due [Abstract]
Total past due	$ 15,546	$ 12,204
Current	1,064,478	985,683
PCI	1,859	2,638
Total financing receivables	1,081,883	1,000,525
90 Days past due and accruing	68	555
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	12,170	8,160
Current and non-accrual	1,554	2,011
PCI Loans considered non accrual	0	0
Financing receivable nonaccrual status	13,724	10,171
Foregone interest income	961	709	$ 603
Financing receivables on accrual status [Abstract]
Total past due and still accruing	3,376	4,044
Current and still accruing	1,062,924	983,672
PCI Loans still accruing	1,859	2,638
Total financing receivables and still accruing	$ 1,068,159	990,354
Minimum [Member]
Financing receivables on nonaccrual status [Abstract]
Period of past due after which loans considered as non accrual	90 days
30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	$ 2,038	3,053
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	72	816
Financing receivables on accrual status [Abstract]
Total past due and still accruing	1,966	2,237
60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	1,595	1,533
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	253	281
Financing receivables on accrual status [Abstract]
Total past due and still accruing	1,342	1,252
90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	11,913	7,618
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	11,845	7,063
Financing receivables on accrual status [Abstract]
Total past due and still accruing	68	555
Real Estate Loans [Member] | Mortgages [Member]
Recorded investment of past due [Abstract]
Total past due	1,958	2,168
Current	154,501	152,144
PCI	28	33
Total financing receivables	156,487	154,345
90 Days past due and accruing	20	218
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	1,079	1,274
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	483	996
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	789	362
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	686	810
Real Estate Loans [Member] | Home Equity [Member]
Recorded investment of past due [Abstract]
Total past due	428	441
Current	58,390	59,693
PCI	0	0
Total financing receivables	58,818	60,134
90 Days past due and accruing	0	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	82	112
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	257	277
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	108	86
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	63	78
Real Estate Loans [Member] | Commercial [Member]
Recorded investment of past due [Abstract]
Total past due	6,336	6,228
Current	311,608	300,396
PCI	1,321	1,460
Total financing receivables	319,265	308,084
90 Days past due and accruing	36	162
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	5,957	5,192
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	999	1,353
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	631	1,010
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	4,706	3,865
Real Estate Loans [Member] | Agricultural [Member]
Recorded investment of past due [Abstract]
Total past due	3,305	447
Current	281,215	238,808
PCI	0	702
Total financing receivables	284,520	239,957
90 Days past due and accruing	0	30
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	3,206	175
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	121	242
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	3,184	205
Real Estate Loans [Member] | Construction [Member]
Recorded investment of past due [Abstract]
Total past due	0	133
Current	33,913	13,369
PCI	0	0
Total financing receivables	33,913	13,502
90 Days past due and accruing	0	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	0	133
Real Estate Loans [Member] | Construction [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Real Estate Loans [Member] | Construction [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Real Estate Loans [Member] | Construction [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	0	133
Consumer [Member]
Recorded investment of past due [Abstract]
Total past due	63	135
Current	9,795	9,809
PCI	0	0
Total financing receivables	9,858	9,944
90 Days past due and accruing	12	7
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	14	42
Consumer [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	37	53
Consumer [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	14	33
Consumer [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	12	49
Other Commercial Loans [Member]
Recorded investment of past due [Abstract]
Total past due	2,255	2,504
Current	71,353	69,066
PCI	510	443
Total financing receivables	74,118	72,013
90 Days past due and accruing	0	32
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	2,185	2,637
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	141	132
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	53	0
Other Commercial Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	2,061	2,372
Other Agricultural Loans [Member]
Recorded investment of past due [Abstract]
Total past due	1,201	148
Current	40,985	37,661
PCI	0	0
Total financing receivables	42,186	37,809
90 Days past due and accruing	0	106
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	1,201	606
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	42
Other Agricultural Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	1,201	106
State and Political Subdivision Loans [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Current	102,718	104,737
PCI	0	0
Total financing receivables	102,718	104,737
90 Days past due and accruing	0	0
State and Political Subdivision Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
State and Political Subdivision Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
State and Political Subdivision Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	$ 0	$ 0

LOANS AND RELATED ALLOWANCE F_7

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Contract	Dec. 31, 2017USD ($)Contract	Dec. 31, 2016USD ($)Contract
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
Reserves of allowance for loan losses	$ 255	$ 41	$ 29
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	5	2	0
Total recidivism, Recorded investment	$ 2,169	$ 632	$ 0
Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0	$ 0
Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	13	12	19
Pre-modification outstanding recorded investment	$ 4,076	$ 8,691	$ 7,778
Post-modification outstanding recorded investment	$ 4,076	$ 8,691	$ 7,778
Real Estate Loans [Member] | Mortgages [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0
Pre-modification outstanding recorded investment	$ 0
Post-modification outstanding recorded investment	$ 0
Real Estate Loans [Member] | Mortgages [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	1
Pre-modification outstanding recorded investment	$ 7
Post-modification outstanding recorded investment	$ 7
Real Estate Loans [Member] | Home Equity [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0
Real Estate Loans [Member] | Home Equity [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	1	1
Pre-modification outstanding recorded investment	$ 1	$ 25
Post-modification outstanding recorded investment	$ 1	$ 25
Real Estate Loans [Member] | Commercial [Member]
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	2	0	0
Total recidivism, Recorded investment	$ 683	$ 0	$ 0
Real Estate Loans [Member] | Commercial [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0	$ 0
Real Estate Loans [Member] | Commercial [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	2	5	4
Pre-modification outstanding recorded investment	$ 683	$ 7,021	$ 1,188
Post-modification outstanding recorded investment	$ 683	$ 7,021	$ 1,188
Real Estate Loans [Member] | Agricultural [Member]
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	2	0	0
Total recidivism, Recorded investment	$ 1,325	$ 0	$ 0
Real Estate Loans [Member] | Agricultural [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0	$ 0
Real Estate Loans [Member] | Agricultural [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	5	4	5
Pre-modification outstanding recorded investment	$ 3,209	$ 1,475	$ 1,956
Post-modification outstanding recorded investment	$ 3,209	$ 1,475	$ 1,956
Other Commercial Loans [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract		0	0
Pre-modification outstanding recorded investment		$ 0	$ 0
Post-modification outstanding recorded investment		$ 0	$ 0
Other Commercial Loans [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract		1	3
Pre-modification outstanding recorded investment		$ 9	$ 3,076
Post-modification outstanding recorded investment		$ 9	$ 3,076
Other Agricultural Loans [Member]
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	1	2	0
Total recidivism, Recorded investment	$ 161	$ 632	$ 0
Other Agricultural Loans [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0	$ 0
Other Agricultural Loans [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	4	1	7
Pre-modification outstanding recorded investment	$ 176	$ 161	$ 1,558
Post-modification outstanding recorded investment	$ 176	$ 161	$ 1,558

LOANS AND RELATED ALLOWANCE F_8

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Foreclosed Assets Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	$ 601	$ 1,119
Consumer Residential Mortgages [Member]
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	197
Formal foreclosure proceedings on potential foreclosure assets	$ 2,635

LOANS AND RELATED ALLOWANCE F_9

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				$ 11,190				$ 8,886	$ 11,190	$ 8,886	$ 7,106
Charge-offs									(365)	(313)	(340)
Recoveries									134	77	600
Provision	$ 625	$ 475	$ 325	500	$ 800	$ 500	$ 625	615	1,925	2,540	1,520
Balance at end of period	12,884				11,190				12,884	11,190	8,886
Individually evaluated for impairment	676				410				676	410	487
Collectively evaluated for impairment	12,208				10,780				12,208	10,780	8,399
Real Estate Loans [Member] | Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				1,049				1,064	1,049	1,064	905
Charge-offs									(118)	(107)	(85)
Recoveries									69	0	0
Provision									105	92	244
Balance at end of period	1,105				1,049				1,105	1,049	1,064
Individually evaluated for impairment	24				56				24	56	32
Collectively evaluated for impairment	1,081				993				1,081	993	1,032
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				3,867				3,589	3,867	3,589	3,376
Charge-offs									(66)	(41)	(100)
Recoveries									3	11	479
Provision									311	308	(166)
Balance at end of period	4,115				3,867				4,115	3,867	3,589
Individually evaluated for impairment	216				94				216	94	45
Collectively evaluated for impairment	3,899				3,773				3,899	3,773	3,544
Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				3,143				1,494	3,143	1,494	409
Charge-offs									0	(30)	0
Recoveries									0	0	0
Provision									1,121	1,679	1,085
Balance at end of period	4,264				3,143				4,264	3,143	1,494
Individually evaluated for impairment	84				3				84	3	54
Collectively evaluated for impairment	4,180				3,140				4,180	3,140	1,440
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				23				47	23	47	24
Charge-offs									0	0	0
Recoveries									0	0	0
Provision									35	(24)	23
Balance at end of period	58				23				58	23	47
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	58				23				58	23	47
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				124				122	124	122	102
Charge-offs									(40)	(130)	(100)
Recoveries									31	49	88
Provision									5	83	32
Balance at end of period	120				124				120	124	122
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	120				124				120	124	122
Other Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				1,272				1,327	1,272	1,327	1,183
Charge-offs									(91)	0	(55)
Recoveries									30	16	33
Provision									143	(71)	166
Balance at end of period	1,354				1,272				1,354	1,272	1,327
Individually evaluated for impairment	193				231				193	231	326
Collectively evaluated for impairment	1,161				1,041				1,161	1,041	1,001
Other Agricultural Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				492				312	492	312	122
Charge-offs									(50)	(5)	0
Recoveries									1	1	0
Provision									309	184	190
Balance at end of period	752				492				752	492	312
Individually evaluated for impairment	159				26				159	26	30
Collectively evaluated for impairment	593				466				593	466	282
State and Political Subdivision Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				816				833	816	833	593
Charge-offs									0	0	0
Recoveries									0	0	0
Provision									(54)	(17)	240
Balance at end of period	762				816				762	816	833
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	762				816				762	816	833
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				$ 404				$ 98	404	98	392
Charge-offs									0	0	0
Recoveries									0	0	0
Provision									(50)	306	(294)
Balance at end of period	354				404				354	404	98
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	$ 354				$ 404				$ 354	$ 404	$ 98

PREMISES & EQUIPMENT (Details)

PREMISES & EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Premises and Equipment [Abstract]
Premises and equipment, gross	$ 29,704	$ 29,226
Less: accumulated depreciation	13,431	12,703
Premises and equipment, net	16,273	16,523
Depreciation expense	751	776	$ 763
Land [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	5,110	5,110
Buildings [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	17,496	17,402
Furniture, Fixtures and Equipment [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	6,798	6,698
Construction in Process [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	$ 300	$ 16

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	$ 3,636	$ 3,516
Accumulated amortization	[1]	(2,013)	(1,563)
Net carrying value	[1]	1,623	1,953
Non-amortized intangible assets [Abstract]
Goodwill		23,296	23,296
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		480
Estimated Amortization Expense [Abstract]
2,019		440
2,020		340
2,021		276
2,022		216
2,023		160
MSRs [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	1,725	1,605
Accumulated amortization	[1]	(1,066)	(912)
Net carrying value	[1]	659	693
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		184
Estimated Amortization Expense [Abstract]
2,019		181
2,020		143
2,021		111
2,022		83
2,023		60
Core Deposit Intangibles [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	1,786	1,786
Accumulated amortization	[1]	(851)	(586)
Net carrying value	[1]	935	1,200
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		265
Estimated Amortization Expense [Abstract]
2,019		230
2,020		197
2,021		165
2,022		133
2,023		100
Covenant not to Compete [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	125	125
Accumulated amortization	[1]	(96)	(65)
Net carrying value	[1]	29	$ 60
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		31
Estimated Amortization Expense [Abstract]
2,019		29
2,020		0
2,021		0
2,022		0
2,023		$ 0
[1]	Excludes fully amortized intangible assets

FEDERAL HOME LOAN BANK (FHLB)_2

FEDERAL HOME LOAN BANK (FHLB) STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
FEDERAL HOME LOAN BANK (FHLB) STOCK [Abstract]
Federal home loan bank stock	$ 5,348	$ 6,021
FHLB Stock, at par value (in dollars per share)	$ 100

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
DEPOSITS [Abstract]
Non-interest-bearing deposits	$ 179,971	$ 171,840
NOW accounts	336,756	337,307
Savings deposits	205,334	184,057
Money market deposit accounts	164,625	145,287
Certificates of deposit	298,470	266,452
Total deposits	1,185,156	1,104,943
Certificates of deposit of $250,000 or more [Abstract]
Certificates of deposit of $250,000 or more	67,191	$ 62,561
Maturities of certificates of deposit [Abstract]
2,019	135,301
2,020	64,136
2,021	44,387
2,022	34,410
2,023	17,332
Thereafter	2,904
Total certificates of deposit	$ 298,470

BORROWED FUNDS AND REPURCHASE_3

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Breakdown of Borrowed Funds (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Breakdown of Borrowed Funds [Abstract]
Borrowed funds		$ 91,194	$ 114,664
Highest balance at any month-end		154,825	119,526
Average balance		$ 117,912	$ 68,536
Weighted average interest rate paid during the year		2.26%	1.77%
Weighted average interest rate as of year end		2.74%	1.80%
Securities Sold Under Agreements to Repurchase [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[1]	$ 17,983	$ 14,989
Highest balance at any month-end	[1]	17,983	16,643
Average balance	[1]	$ 15,226	$ 15,598
Weighted average interest rate paid during the year	[1]	1.77%	0.97%
Weighted average interest rate as of year end	[1]	2.19%	1.37%
FHLB Advances [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[2]	$ 52,186	$ 77,650
Federal Home Loan Bank, advances, highest balance at any month-end	[2]	114,817	78,858
Federal Home Loan Bank, advances, average balance	[2]	$ 81,123	$ 29,409
Federal Home Loan Bank, advances, weighted average interest rate paid during the year	[2]	2.06%	1.25%
Federal Home Loan Bank, advances, weighted average interest rate as of year-end	[2]	2.62%	1.54%
Federal Funds Line [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[3]	$ 0	$ 0
Highest balance at any month-end	[3]	0	0
Average balance	[3]	$ 0	$ 1
Weighted average interest rate paid during the year	[3]	2.38%	1.52%
Weighted average interest rate as of year end	[3]	0.00%	0.00%
FRB BIC Line [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[4]	$ 0	$ 0
Highest balance at any month-end	[4]	0	0
Average balance	[4]	$ 12	$ 2
Weighted average interest rate paid during the year	[4]	2.47%	1.75%
Weighted average interest rate as of year end	[4]	0.00%	0.00%
Notes Payable [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[5]	$ 7,500	$ 7,500
Highest balance at any month-end	[5]	7,500	7,500
Average balance	[5]	$ 7,500	$ 7,500
Weighted average interest rate paid during the year	[5]	5.03%	4.06%
Weighted average interest rate as of year end	[5]	5.56%	4.40%
Term Loans [Member]
Breakdown of Borrowed Funds [Abstract]
Borrowed funds	[6]	$ 13,525	$ 14,525
Highest balance at any month-end	[6]	14,525	16,525
Average balance	[6]	$ 14,051	$ 16,026
Weighted average interest rate paid during the year	[6]	2.44%	2.44%
Weighted average interest rate as of year end	[6]	2.40%	2.42%
[1]	We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017 is presented in the following tables (in thousands).
[2]	FHLB Advances consist of an "Open RepoPlus" agreement with the FHLB of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $518,353,000, inclusive of any outstanding advances and letters of credit. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.
[3]	The federal funds lines consist of unsecured lines from two third party banks at market rates. The Company has a borrowing limit totaling $34,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings.
[4]	The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2018 and 2017, the Company has a borrowing limit of $9,797,000 and $4,400,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $28,784,000 and $14,590,000 as of December 31, 2018 and 2017, respectively.
[5]	In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements.
[6]	Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (dollars in thousands):

BORROWED FUNDS AND REPURCHASE_4

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Collateral Pledged on the Repurchase Agreements by Contractual Maturity (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2008	Dec. 31, 2003
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		$ 20,978	$ 18,062
Total liability recognized for repurchase agreements		17,983	14,989
Borrowed Funds And Repurchase Agreement [Abstract]
Borrowed funds		91,194	114,664
U.S. Agency Securities [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		20,978	18,602
Overnight and Continuous [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		18,970	16,027
Overnight and Continuous [Member] | U.S. Agency Securities [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		18,970	16,027
Up to 30 Days [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		0	0
Up to 30 Days [Member] | U.S. Agency Securities [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		0	0
30 - 90 Days [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		0	0
30 - 90 Days [Member] | U.S. Agency Securities [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		0	0
Greater than 90 Days [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		2,008	2,035
Greater than 90 Days [Member] | U.S. Agency Securities [Member]
Remaining Contractual Maturity of Agreements [Abstract]
Total carrying value of collateral pledged		2,008	2,035
Securities Sold Under Agreements to Repurchase [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Borrowed funds	[1]	17,983	14,989
FHLB Advances [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Maximum borrowing limit		518,353
Borrowed funds	[2]	52,186	77,650
Federal Funds Line [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Maximum borrowing limit		34,000
Borrowed funds	[3]	0	0
FRB BIC Line [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Maximum borrowing limit		9,797	4,400
Carrying value of securities pledged as collateral		28,784	14,590
Borrowed funds	[4]	0	0
Notes Payable [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Face amount of debt		$ 7,500
Variable rate basis		3 month LIBOR
Basis spread on variable rate		2.80%
Notional amount of derivative liability				$ 7,500
Unamortized debt issuance costs					$ 75
Borrowed funds	[5]	$ 7,500	7,500
Term Loans [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Borrowed funds	[6]	$ 13,525	14,525
Term Loans [Member] | July 12, 2018 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		2.72%
Maturity date		Jul. 12, 2018
Borrowed funds		$ 0	1,000
Term Loans [Member] | February 4, 2019 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		1.87%
Maturity date		Feb. 4, 2019
Borrowed funds		$ 2,000	2,000
Term Loans [Member] | February 3, 2021 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		2.61%
Maturity date		Feb. 3, 2021
Borrowed funds		$ 2,000	2,000
Term Loans [Member] | July 12, 2021 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		3.52%
Maturity date		Jul. 12, 2021
Borrowed funds		$ 2,000	2,000
Term Loans [Member] | August 20, 2021 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		2.37%
Maturity date		Aug. 20, 2021
Borrowed funds		$ 2,800	2,800
Term Loans [Member] | January 6, 2022 [Member]
Borrowed Funds And Repurchase Agreement [Abstract]
Stated interest rate		2.08%
Maturity date		Jan. 6, 2022
Borrowed funds		$ 4,725	$ 4,725
[1]	We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017 is presented in the following tables (in thousands).
[2]	FHLB Advances consist of an "Open RepoPlus" agreement with the FHLB of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $518,353,000, inclusive of any outstanding advances and letters of credit. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.
[3]	The federal funds lines consist of unsecured lines from two third party banks at market rates. The Company has a borrowing limit totaling $34,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings.
[4]	The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2018 and 2017, the Company has a borrowing limit of $9,797,000 and $4,400,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $28,784,000 and $14,590,000 as of December 31, 2018 and 2017, respectively.
[5]	In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements.
[6]	Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (dollars in thousands):

BORROWED FUNDS AND REPURCHASE_5

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Maturities of Borrowed Funds (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Maturities of borrowed funds [Abstract]
2,019	$ 78,546
2,020	589
2,021	7,334
2,022	4,725
2,023	0
Thereafter	0
Total borrowed funds	$ 91,194	$ 114,664

EMPLOYEE BENEFIT PLANS, Noncont

EMPLOYEE BENEFIT PLANS, Noncontributory Defined Benefit Pension Plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Plan	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
EMPLOYEE BENEFIT PLANS [Abstract]
Number of plans | Plan	2
Employer discretionary contribution to 401 (k) plan	$ 151	$ 133	$ 82
Amounts recognized in accumulated other comprehensive loss consists of [Abstract]
Total	181	83	(258)
Pension Plan [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at beginning of year	19,833	18,603
Service cost	359	349	345
Interest cost	652	671	692
Actuarial (Gain) / Loss	(1,693)	1,015
Benefits paid	(1,256)	(805)
Benefit obligation at end of year	17,895	19,833	18,603
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year	19,992	15,786
Actual return (loss) on plan assets	(524)	2,011
Employer contributions	0	3,000	818
Benefits paid	(1,256)	(805)
Fair value of plan assets at end of year	18,212	19,992	15,786
Funded status	317	159
Amounts recognized in accumulated other comprehensive loss consists of [Abstract]
Net loss	3,811	4,088
Prior service cost	(80)	(127)
Total	3,731	3,961
Components of net periodic benefit cost [Abstract]
Service cost	359	349	345
Interest cost	652	671	692
Return on plan assets	(1,126)	(1,094)	(1,034)
Net amortization and deferral	186	224	219
Net periodic benefit cost	71	$ 150	$ 222
Amounts that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost in 2019, related to estimated net loss	290
Amounts that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost in 2019 related to prior service cost (benefit)	$ (48)
Weighted-average assumptions used to determine benefit obligations [Abstract]
Rate of compensation increase	3.00%	3.00%
Weighted-average assumptions used to determine net periodic benefit cost (income) [Abstract]
Discount rate	3.35%	3.78%	3.94%
Rate of compensation increase	3.00%	3.00%	3.00%
Pension Plan [Member] | FCCB Plan [Member]
Weighted-average assumptions used to determine benefit obligations [Abstract]
Discount rate	4.00%	3.35%
Weighted-average assumptions used to determine net periodic benefit cost (income) [Abstract]
Expected long-term return on plan assets	7.00%	7.00%	7.00%
Pension Plan [Member] | FNB Plan [Member]
Weighted-average assumptions used to determine benefit obligations [Abstract]
Discount rate	3.49%	3.35%
Weighted-average assumptions used to determine net periodic benefit cost (income) [Abstract]
Expected long-term return on plan assets	3.00%	7.00%	7.00%

EMPLOYEE BENEFIT PLANS, Nonco_2

EMPLOYEE BENEFIT PLANS, Noncontributory Defined Benefit Pension Plan Fair Value of Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 18,212	$ 19,992	$ 15,786
Allocation	100.00%	100.00%
Expected employer contribution to pension plan	$ 500
Expected future benefit payments [Abstract]
2,019	7,863
2,020	1,238
2,021	1,080
2,022	531
2,023	559
2024 - 2028	5,907
Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	15,062	$ 15,935
Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	3,150	4,057
Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Cash and Cash Equivalents [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 5,057	$ 3,827
Allocation	27.80%	19.10%
Cash and Cash Equivalents [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 5,057	$ 3,827
Cash and Cash Equivalents [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Cash and Cash Equivalents [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Equity Securities [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 4,815	$ 6,018
Allocation	26.80%	30.10%
Equity Securities [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 4,891	$ 6,018
Equity Securities [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Equity Securities [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	0
Equity Securities [Member] | Minimum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	50.00%
Equity Securities [Member] | Maximum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	70.00%
Mutual Funds and ETF's [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 5,114	$ 6,090
Allocation	28.10%	30.50%
Mutual Funds and ETF's [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 5,114	$ 6,090
Mutual Funds and ETF's [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Mutual Funds and ETF's [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Corporate Bonds [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 3,150	$ 3,469
Allocation	17.30%	17.40%
Corporate Bonds [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
Corporate Bonds [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	3,150	3,469
Corporate Bonds [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	0
Corporate Bonds [Member] | Minimum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	30.00%
Corporate Bonds [Member] | Maximum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	50.00%
Municipal Bonds [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 105
Allocation	0.00%	0.50%
Municipal Bonds [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 105
U.S. Agency Securities [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 483
Allocation	0.00%	2.40%
U.S. Agency Securities [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
U.S. Agency Securities [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	483
U.S. Agency Securities [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Certificates of Deposit [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
Allocation	0.00%	0.00%
Certificates of Deposit [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
Certificates of Deposit [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Certificates of Deposit [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Common Stock [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 610	$ 684
Allocation	3.40%	3.40%

EMPLOYEE BENEFIT PLANS, Defined

EMPLOYEE BENEFIT PLANS, Defined Contribution Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS [Abstract]
Employer contribution to 401 (k) defined contribution plan	$ 433	$ 388	$ 351

EMPLOYEE BENEFIT PLANS, Directo

EMPLOYEE BENEFIT PLANS, Directors' Deferred Compensation Plan (Details) - Director [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation liability	$ 921	$ 928
Deferred interest expense	$ 22	$ 19	$ 15

EMPLOYEE BENEFIT PLANS, Restric

EMPLOYEE BENEFIT PLANS, Restricted Stock Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Additional General Disclosures [Abstract]
Share-based compensation expense	$ 308	$ 278	$ 284
Restricted Stock [Member]
Deferred Compensation Arrangements [Abstract]
Number of shares authorized (in shares)	150,000
Number of shares available for grant (in shares)	135,582
Unvested Shares [Roll Forward]
Outstanding, beginning of year (in shares)	8,783
Granted (in shares)	5,826
Vested (in shares)	(4,845)
Outstanding, end of year (in shares)	9,764	8,783
Weighted Average Market Price [Roll Forward]
Outstanding, beginning of year (in dollars per share)	$ 51.20
Granted (in dollars per share)	62.74	$ 53.84	$ 48.13
Vested (in dollars per share)	50.94
Outstanding, end of year (in dollars per share)	$ 58.21	$ 51.20
Additional General Disclosures [Abstract]
Share-based compensation expense	$ 256	$ 214	$ 193
Compensation cost related to nonvested awards that has not yet recognized	$ 568
Period over which compensation cost is expected to be recognized	3 years

EMPLOYEE BENEFIT PLANS, Other P

EMPLOYEE BENEFIT PLANS, Other Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan [Abstract]
Obligation included in other liabilities	$ 648	$ 578
Supplemental Executive Retirement Plan [Member]
Defined Benefit Plan [Abstract]
Obligation included in other liabilities	1,751	1,571
Cost recognized	180	111	$ 121
Deferred Compensation Plan [Member]
Defined Benefit Plan [Abstract]
Obligation included in other liabilities	95	0
Cost recognized	95	0	0
Salary Continuation Plan [Member]
Defined Benefit Plan [Abstract]
Obligation included in other liabilities	704	716
Cost recognized	53	54	62
Continuation of Life Insurance Plan [Member]
Defined Benefit Plan [Abstract]
Obligation included in other liabilities	648	578
Cost recognized	$ 70	$ 9	$ 0

INCOME TAXES, Provision for Inc

INCOME TAXES, Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Provision for income taxes [Abstract]
Currently payable									$ 3,838	$ 4,583	$ 2,672
Change in corporate tax rate									0	1,531	0
Deferred									(435)	(83)	362
Provision for income taxes	$ 845	$ 936	$ 875	$ 747	$ 2,934	$ 1,141	$ 1,033	$ 923	$ 3,403	$ 6,031	$ 3,034

INCOME TAXES, Deferred Tax Asse

INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets [Abstract]
Allowance for loan losses	$ 3,323	$ 3,058
Deferred compensation	479	464
Merger & acquisition costs	5	7
Allowance for losses on available-for-sale securities	5	6
Pensions and other retirement obligation	301	297
Interest on non-accrual loans	1,126	917
Incentive plan accruals	361	324
Other real estate owned	1	108
Unrealized losses on available-for-sale securities	259	71
Low income housing tax credits	139	64
NOL carry forward	212	339
Other	134	125
Total	6,345	5,780
Deferred tax liabilities [Abstract]
Premises and equipment	(612)	(623)
Investment securities accretion	(53)	(66)
Loan fees and costs	(253)	(257)
Goodwill and core deposit intangibles	(2,229)	(2,200)
Mortgage servicing rights	(139)	(146)
Other	(4)	(7)
Total	(3,290)	(3,299)
Deferred tax asset, net	3,055	2,481
Valuation allowance	$ 0	$ 0

INCOME TAXES, Provision for I_2

INCOME TAXES, Provision for Income Taxes Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Provision for income taxes reconciliation [Abstract]
Provision at statutory rates on pre-tax income									$ 4,502	$ 6,505	$ 5,328
Effect of tax-exempt income									(955)	(1,710)	(1,943)
Low income housing tax credits									(141)	(141)	(198)
Bank owned life insurance									(131)	(225)	(234)
Nondeductible interest									41	54	55
Nondeductible merger and acquisition expenses									0	0	0
Change in tax rate									0	1,531	0
Other items									87	17	26
Provision for income taxes	$ 845	$ 936	$ 875	$ 747	$ 2,934	$ 1,141	$ 1,033	$ 923	$ 3,403	$ 6,031	$ 3,034
Statutory tax rates									21.00%	35.00%	35.00%
Effective tax rates									15.90%	31.60%	19.40%

INCOME TAXES, Other Tax Informa

INCOME TAXES, Other Tax Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Partnership	Dec. 31, 2017USD ($)Partnership	Dec. 31, 2016USD ($)
Other Tax Information [Abstract]
Minimum percentages of tax position liable to be realized upon ultimate settlement	50.00%
Liability for uncertain tax positions	$ 0
Unrecognized tax benefits	$ 0
Number of investments in partnerships | Partnership	4	4
Investment amount in partnerships	$ 433	$ 541
Tax Credit Carryforward [Abstract]
Investment tax credits	564
Amortization of investments in other expenses	$ 108	159	$ 259
Investment Tax Credit Carryforward [Member]
Tax Credit Carryforward [Abstract]
Tax credits recognition period	4 years
Tax credits recognized as reduction of tax expense amount	$ 141	$ 141	$ 198

OTHER COMPREHENSIVE INCOME (Det

OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of accumulated other comprehensive loss, net of tax [Abstract]
Net unrealized gain on securities available for sale		$ (1,232)	$ (340)
Tax effect		259	71
Net -of-tax amount		(973)	(269)
Unrecognized pension costs		(3,731)	(3,961)
Tax effect		783	832
Net -of-tax amount		(2,948)	(3,129)
Total accumulated other comprehensive income		(3,921)	(3,398)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance		129,011	123,268	$ 119,760
Change in Accounting policy for equity securities		1	0
Other comprehensive income (loss) before reclassifications (net of tax)		(686)	(912)	(1,133)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)		162	(535)	(23)
Net other comprehensive loss		(524)	(1,447)	(1,156)
Change in other comprehensive income due to change in the federal tax rate			0
Balance		139,229	129,011	123,268
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance		(3,398)	(1,392)	(236)
Change in Accounting policy for equity securities			1
Net other comprehensive loss		(524)	(1,447)	(1,156)
Change in other comprehensive income due to change in the federal tax rate			(559)
Balance		(3,921)	(3,398)	(1,392)
Unrealized Gain (Loss) on Available For Sale Securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	[1]	(269)	1,306	2,204
Change in Accounting policy for equity securities	[1]	1
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	(720)	(847)	(730)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	15	(683)	(168)
Net other comprehensive loss	[1]	(705)	(1,530)	(898)
Change in other comprehensive income due to change in the federal tax rate	[1]		(45)
Balance	[1]	(973)	(269)	1,306
Defined Benefit Pension Items [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	[1]	(3,129)	(2,698)	(2,440)
Change in Accounting policy for equity securities	[1]	0
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	34	(65)	(403)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	147	148	145
Net other comprehensive loss	[1]	181	83	(258)
Change in other comprehensive income due to change in the federal tax rate	[1]		(514)
Balance	[1]	$ (2,948)	$ (3,129)	$ (2,698)
[1]	Amounts in parentheses indicate debits to stockholders equity

OTHER COMPREHENSIVE INCOME, Rec

OTHER COMPREHENSIVE INCOME, Reclassification (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
AOCI Attributable to Parent [Abstract]
Available for sale security gains, net		$ (20)	$ (12)	$ 7	$ 6	$ 831	$ 9	$ 23	$ 172	$ (19)	$ 1,035	$ 255
Provision for income taxes		(845)	(936)	(875)	(747)	(2,934)	(1,141)	(1,033)	(923)	(3,403)	(6,031)	(3,034)
NET INCOME		$ 4,515	$ 4,581	$ 4,691	$ 4,247	$ 2,604	$ 3,650	$ 3,468	$ 3,303	18,034	13,025	12,638
Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent [Abstract]
NET INCOME	[1]									(162)	535	23
Unrealized Gains and Losses on Available For Sale Securities [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent [Abstract]
Available for sale security gains, net	[1]									(19)	1,035	255
Provision for income taxes	[1]									4	(352)	(87)
NET INCOME	[1]									(15)	683	168
Defined Benefit Pension Items [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent [Abstract]
Other expenses	[1]									(186)	(225)	(219)
Provision for income taxes	[1]									39	77	74
NET INCOME	[1]									$ (147)	$ (148)	$ (145)
[1]	Amounts in parentheses indicate debits to the consolidated statement of income

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Officers, Directors, Stockholders and Associates [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Loans to Related Parties [Roll Forward]
Balance, beginning of year	$ 4,585	$ 5,570
New loans	14,377	4,161
Repayments	(4,868)	(5,146)
Balance, end of year	$ 14,094	$ 4,585

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)Category	Dec. 31, 2017USD ($)
Dividend Restrictions [Abstract]
Number of preceding years retained net income used for restrictions on dividend declaration	2 years
Dividends that can be declared without the approval of the Comptroller of the Currency	$ 15,681
Loans [Abstract]
Regulatory lending limit	$ 21,191
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Number of capital categories | Category	5
Company [Member]
Actual Amount [Abstract]
Total capital (to risk-weighted assets)	$ 141,272	$ 128,578
Tier 1 capital (to risk-weighted assets)	128,224	117,224
Common equity tier 1 capital (to risk weighted assets)	120,724	109,724
Tier 1 capital (to average assets)	$ 128,224	$ 117,224
Actual Ratio [Abstract]
Total capital (to risk-weighted assets)	13.42%	13.20%
Tier 1 capital (to risk-weighted assets)	12.18%	12.04%
Common equity Tier 1 capital (to risk weighted assets)	11.47%	11.27%
Tier 1 capital (to average assets)	9.15%	9.18%
For Capital Adequacy Purposes Amount [Abstract]
Total capital (to risk-weighted assets)	$ 84,227	$ 77,906
Tier 1 capital (to risk-weighted assets)	63,171	58,430
Common equity Tier 1 capital (to risk weighted assets)	47,378	43,822
Tier 1 capital (to average assets)	$ 56,041	$ 51,085
For Capital Adequacy Purposes Ratio [Abstract]
Total capital (to risk-weighted assets)	8.00%	8.00%
Tier 1 capital (to risk-weighted assets)	6.00%	6.00%
Common equity Tier 1 capital (to risk weighted assets)	4.50%	4.50%
Tier 1 capital (to average assets)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount [Abstract]
Total capital (to risk-weighted assets)	$ 105,284	$ 97,383
Tier 1 capital (to risk-weighted assets)	84,227	77,906
Common equity Tier 1 capital (to risk weighted assets)	68,435	63,299
Tier 1 capital (to average assets)	$ 70,051	$ 63,857
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio [Abstract]
Total capital (to risk-weighted assets)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Common equity Tier 1 capital (to risk weighted assets)	6.50%	6.50%
Tier 1 capital (to average assets)	5.00%	5.00%
Bank [Member]
Actual Amount [Abstract]
Total capital (to risk-weighted assets)	$ 134,841	$ 122,469
Tier 1 capital (to risk-weighted assets)	121,792	111,114
Common equity tier 1 capital (to risk weighted assets)	121,792	111,114
Tier 1 capital (to average assets)	$ 121,792	$ 111,114
Actual Ratio [Abstract]
Total capital (to risk-weighted assets)	12.82%	12.58%
Tier 1 capital (to risk-weighted assets)	11.58%	11.42%
Common equity Tier 1 capital (to risk weighted assets)	11.58%	11.42%
Tier 1 capital (to average assets)	8.70%	8.71%
For Capital Adequacy Purposes Amount [Abstract]
Total capital (to risk-weighted assets)	$ 84,141	$ 77,852
Tier 1 capital (to risk-weighted assets)	63,106	58,389
Common equity Tier 1 capital (to risk weighted assets)	47,329	43,792
Tier 1 capital (to average assets)	$ 56,018	$ 51,023
For Capital Adequacy Purposes Ratio [Abstract]
Total capital (to risk-weighted assets)	8.00%	8.00%
Tier 1 capital (to risk-weighted assets)	6.00%	6.00%
Common equity Tier 1 capital (to risk weighted assets)	4.50%	4.50%
Tier 1 capital (to average assets)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount [Abstract]
Total capital (to risk-weighted assets)	$ 105,176	$ 97,315
Tier 1 capital (to risk-weighted assets)	84,141	77,852
Common equity Tier 1 capital (to risk weighted assets)	68,364	63,255
Tier 1 capital (to average assets)	$ 70,023	$ 63,778
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio [Abstract]
Total capital (to risk-weighted assets)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Common equity Tier 1 capital (to risk weighted assets)	6.50%	6.50%
Tier 1 capital (to average assets)	5.00%	5.00%

COMMITMENTS AND CONTINGENT LI_3

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Credit Extension Commitments [Abstract]
Contractual obligation	$ 215,494	$ 203,726
Coverage period for instruments	1 year
Non-contractual obligation	$ 11,855
Commitments to Extend Credit [Member]
Credit Extension Commitments [Abstract]
Contractual obligation	199,183	188,482
Standby Letter of Credit [Member]
Credit Extension Commitments [Abstract]
Contractual obligation	$ 16,311	$ 15,244

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future minimum rental payments under operating leases [Abstract]
2,019	$ 388
2,020	232
2,021	184
2,022	171
2,023	81
Thereafter	72
Total	1,128
Total rental expense	$ 412	$ 351	$ 289

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired loans, estimated selling cost	$ 563	$ 163
Recurring [Member]
Assets [Abstract]
Equity securities	516
Available for sale securities [Abstract]
U.S. Agency Securities	106,385	98,887
U.S. Treasuries securities	33,358	28,604
Obligations of state and political subdivisions	52,047	79,090
Corporate obligations	3,034	3,083
Mortgage-backed securities in government sponsored entities	46,186	45,027
Equity securities in financial institutions		91
Recurring [Member] | Level I [Member]
Assets [Abstract]
Equity securities	516
Available for sale securities [Abstract]
U.S. Agency Securities	0	0
U.S. Treasuries securities	33,358	28,604
Obligations of state and political subdivisions	0	0
Corporate obligations	0	0
Mortgage-backed securities in government sponsored entities	0	0
Equity securities in financial institutions		91
Recurring [Member] | Level II [Member]
Assets [Abstract]
Equity securities	0
Available for sale securities [Abstract]
U.S. Agency Securities	106,385	98,887
U.S. Treasuries securities	0	0
Obligations of state and political subdivisions	52,047	79,090
Corporate obligations	3,034	3,083
Mortgage-backed securities in government sponsored entities	46,186	45,027
Equity securities in financial institutions		0
Recurring [Member] | Level III [Member]
Assets [Abstract]
Equity securities	0
Available for sale securities [Abstract]
U.S. Agency Securities	0	0
U.S. Treasuries securities	0	0
Obligations of state and political subdivisions	0	0
Corporate obligations	0	0
Mortgage-backed securities in government sponsored entities	0	0
Equity securities in financial institutions		0
Nonrecurring [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	5,815	1,569
Other real estate owned	532	1,024
Nonrecurring [Member] | Level I [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	0	0
Other real estate owned	0	0
Nonrecurring [Member] | Level II [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	0	0
Other real estate owned	0	0
Nonrecurring [Member] | Level III [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	5,815	1,569
Other real estate owned	$ 532	$ 1,024

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS, Quantitative Information (Details) - Appraised Collateral Values [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Impaired Loans [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired Loans	$ 5,815	$ 1,569
Impaired Loans [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Holding period	6 months	6 months
Impaired Loans [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Holding period	12 months	12 months
Impaired Loans [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Holding period	11 months 18 days	11 months
Impaired Loans [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	0	0
Impaired Loans [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	1	1
Impaired Loans [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	0.1922	0.3083
Impaired Loans [Member] | Selling Costs [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	0.05	0.05
Impaired Loans [Member] | Selling Costs [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	0.12	0.09
Impaired Loans [Member] | Selling Costs [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, Measurement input	0.0870	0.0835
Other Real Estate Owned [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired Loans	$ 532	$ 1,024
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other real estate owned, Measurement input	0.2	0.15
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other real estate owned, Measurement input	0.55	0.65
Other Real Estate Owned [Member] | Discount for Time Since Appraisal [Member] | Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Other real estate owned, Measurement input	0.3144	0.2626

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial Assets [Abstract]
Interest bearing time deposits with other banks	$ 15,498	$ 10,283
Level I [Member] | Recurring [Member]
Financial Assets [Abstract]
Interest bearing time deposits with other banks	0	0
Loans held for sale	0	1,439
Net loans	0	0
Financial Liabilities [Abstract]
Deposits	886,686	838,490
Borrowed funds	0	77,650
Level II [Member] | Recurring [Member]
Financial Assets [Abstract]
Interest bearing time deposits with other banks	0	0
Loans held for sale	0
Net loans	0	0
Financial Liabilities [Abstract]
Deposits	0	0
Borrowed funds	0	0
Level III [Member] | Recurring [Member]
Financial Assets [Abstract]
Interest bearing time deposits with other banks	15,422	10,287
Loans held for sale	1,126
Net loans	1,062,645	981,238
Financial Liabilities [Abstract]
Deposits	294,008	263,093
Borrowed funds	90,427	35,802
Carrying Amount [Member] | Recurring [Member]
Financial Assets [Abstract]
Interest bearing time deposits with other banks	15,498	10,283
Loans held for sale	1,127	1,439
Net loans	1,068,999	989,335
Financial Liabilities [Abstract]
Deposits	1,185,156	1,104,943
Borrowed funds	91,194	114,664
Fair Value [Member] | Recurring [Member]
Financial Assets [Abstract]
Interest bearing time deposits with other banks	15,422	10,287
Loans held for sale	1,126	1,439
Net loans	1,062,645	981,238
Financial Liabilities [Abstract]
Deposits	1,180,694	1,101,583
Borrowed funds	$ 90,427	$ 113,452

CONDENSED FINANCIAL INFORMATI_3

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets [Abstract]
Cash	$ 15,327				$ 16,347				$ 15,327	$ 16,347
Available-for-sale debt securities	241,010								241,010
Investment in subsidiary [Abstract]
Other assets	13,616				14,679				13,616	14,679
TOTAL ASSETS	1,430,712				1,361,886				1,430,712	1,361,886
Liabilities [Abstract]
Other liabilities	14,057				12,371				14,057	12,371
Borrowed funds	91,194				114,664				91,194	114,664
TOTAL LIABILITIES	1,291,483				1,232,875				1,291,483	1,232,875
Stockholders' equity	139,229				129,011				139,229	129,011	$ 123,268	$ 119,760
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,430,712				1,361,886				1,430,712	1,361,886
Dividends from [Abstract]
TOTAL INTEREST AND DIVIDEND INCOME	15,088	$ 14,259	$ 14,028	$ 13,383	12,895	$ 12,120	$ 11,778	$ 11,300	56,758	48,093	43,005
Realized securities gains (losses)	(20)	(12)	7	6	831	9	23	172	(19)	1,035	255
Expenses									6,170	5,822	6,522
NET INCOME	4,515	4,581	4,691	4,247	2,604	3,650	3,468	3,303	18,034	13,025	12,638
Comprehensive income									17,510	11,578	11,482
Cash flows from operating activities [Abstract]
Net income	4,515	4,581	4,691	4,247	2,604	3,650	3,468	3,303	18,034	13,025	12,638
Adjustments to reconcile net income to net cash provided by operating activities [Abstract]
Investment securities (gains) losses, net	20	$ 12	$ (7)	(6)	(831)	$ (9)	$ (23)	(172)	19	(1,035)	(255)
Other, net									787	(1,814)	827
Net cash provided by operating activities									21,486	15,739	16,194
Cash flows from investing activities [Abstract]
Purchases of equity securities									(67,899)	(54,003)	(55,600)
Proceeds from the sale of available-for-sale securities									27,149	58,177	22,372
Net cash used in investing activities									(72,351)	(105,425)	(70,078)
Cash flows from financing activities [Abstract]
Cash dividends paid									(6,116)	(5,177)	(5,081)
Purchase of treasury stock									(1,175)	(979)	(3,227)
Reissuance of treasury stock to employee stock purchase plan									0	43	59
Purchase of restricted stock									(307)	0	0
Net cash provided by financing activities									49,145	90,449	47,254
Net increase (decrease) in cash and cash equivalents									(1,720)	763	(6,630)
Cash and Cash Equivalents at Beginning of Year				18,517				17,754	18,517	17,754	24,384
Cash and Cash Equivalents at End of Year	16,797				18,517				16,797	18,517	17,754
Parent Company [Member]
Assets [Abstract]
Cash	5,576				6,238				5,576	6,238
Available-for-sale debt securities	516				91				516	91
Investment in subsidiary [Abstract]
First Citizens Community Bank	140,298				130,402				140,298	130,402
Other assets	813				369				813	369
TOTAL ASSETS	147,203				137,100				147,203	137,100
Liabilities [Abstract]
Other liabilities	474				589				474	589
Borrowed funds	7,500				7,500				7,500	7,500
TOTAL LIABILITIES	7,974				8,089				7,974	8,089
Stockholders' equity	139,229				129,011				139,229	129,011
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	147,203				137,100				147,203	137,100
Dividends from [Abstract]
Bank subsidiary									8,248	7,507	5,842
Equity securities									7	60	92
TOTAL INTEREST AND DIVIDEND INCOME									8,255	7,567	5,934
Realized securities gains (losses)									0	1,021	31
Expenses									642	824	463
Income before equity in undistributed earnings of subsidiary									7,613	7,764	5,502
Equity in undistributed earnings - First Citizens Community Bank									10,421	5,261	7,136
NET INCOME									18,034	13,025	12,638
Comprehensive income									17,510	11,578	11,482
Cash flows from operating activities [Abstract]
Net income									18,034	13,025	12,638
Adjustments to reconcile net income to net cash provided by operating activities [Abstract]
Equity in undistributed earnings of subsidiaries									(10,421)	(5,261)	(7,136)
Investment securities (gains) losses, net									0	(1,021)	(31)
Other, net									(251)	629	230
Net cash provided by operating activities									7,362	7,372	5,701
Cash flows from investing activities [Abstract]
Purchases of equity securities									(425)	(94)	(1)
Proceeds from the sale of available-for-sale securities									0	2,828	201
Net cash used in investing activities									(425)	2,734	200
Cash flows from financing activities [Abstract]
Cash dividends paid									(6,116)	(5,177)	(5,081)
Purchase of treasury stock									(1,483)	(979)	(3,227)
Reissuance of treasury stock to employee stock purchase plan									0	43	59
Purchase of restricted stock									0	0	0
Net cash provided by financing activities									(7,599)	(6,113)	(8,249)
Net increase (decrease) in cash and cash equivalents									(662)	3,993	(2,348)
Cash and Cash Equivalents at Beginning of Year				$ 6,238				$ 2,245	6,238	2,245	4,593
Cash and Cash Equivalents at End of Year	$ 5,576				$ 6,238				$ 5,576	$ 6,238	$ 2,245

CONSOLIDATED CONDENSED QUARTE_3

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
Interest income	$ 15,088	$ 14,259	$ 14,028	$ 13,383	$ 12,895	$ 12,120	$ 11,778	$ 11,300	$ 56,758	$ 48,093	$ 43,005
Interest expense	2,845	2,489	2,277	1,963	1,659	1,503	1,374	1,303	9,574	5,839	5,041
NET INTEREST INCOME	12,243	11,770	11,751	11,420	11,236	10,617	10,404	9,997	47,184	42,254	37,964
Provision for loan losses	625	475	325	500	800	500	625	615	1,925	2,540	1,520
Non-interest income	1,997	2,022	1,835	1,900	1,981	1,912	1,865	1,863	7,735	8,656	7,899
Available for sale security gains, net	(20)	(12)	7	6	831	9	23	172	(19)	1,035	255
Non-interest expenses	8,235	7,788	7,702	7,832	7,710	7,247	7,166	7,191	31,557	29,314	28,671
Income before provision for income taxes	5,360	5,517	5,566	4,994	5,538	4,791	4,501	4,226	21,437	19,056	15,672
Provision for income taxes	845	936	875	747	2,934	1,141	1,033	923	3,403	6,031	3,034
NET INCOME	$ 4,515	$ 4,581	$ 4,691	$ 4,247	$ 2,604	$ 3,650	$ 3,468	$ 3,303	$ 18,034	$ 13,025	$ 12,638
Earnings Per Share Basic (in dollars per share)	$ 1.29	$ 1.31	$ 1.34	$ 1.20	$ 0.74	$ 1.04	$ 0.99	$ 0.93	$ 5.14	$ 3.70	$ 3.57
Earnings Per Share Diluted (in dollars per share)	$ 1.29	$ 1.31	$ 1.34	$ 1.20	$ 0.74	$ 1.04	$ 0.99	$ 0.93	$ 5.14	$ 3.70	$ 3.57

ACQUISITION OF STATE COLLEGE _3

ACQUISITION OF STATE COLLEGE BRANCH (Details) - USD ($) $ in Thousands	Dec. 07, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Adjustments to reflect liabilities acquired at fair value [Abstract]
Goodwill		$ 23,296	$ 23,296
Net assets acquired [Abstract]
Goodwill		$ 23,296	23,296
State College Branch [Member]
Business Combination [Abstract]
Number of days considered for average deposit balances		30 days
Summarizes purchase of Branch [Abstract]
Purchase price consideration in cash	$ 1,044
Net Assets Acquired for cash [Abstract]
Loans, interest, PP&E less deposits, interest and escrow payable	3,509
Total cash consideration	4,553
Loans [Abstract]
Interest rate	(522)
General credit	(740)
Core deposit intangible	145
Adjustments to reflect liabilities acquired at fair value [Abstract]
Time deposits	(46)
Acquired net assets at fair value	2,346	$ 0	(4,399)	$ 0
Goodwill	2,207	0	2,207	0
Asset acquired and liability assumed [Abstract]
Total purchase price	4,553
Net assets acquired [Abstract]
Cash and cash equivalents	154	0	154	0
Loans	39,847	0	39,847	0
Premises and equipment, net	86	0	86	0
Accrued interest receivable	74	0	74	0
Intangibles	145	0	145	0
Deposits	(37,880)
Accrued interest payable	(29)	0	(29)	0
Other liabilities	(51)	0	(51)	0
Net assets acquired	2,346	0	(4,399)	0
Goodwill	2,207	$ 0	$ 2,207	$ 0
Goodwill and other intangibles	$ 2,352