ChoiceOne Financial Services (COFS) 10-Q 10 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document And Entity Information
Entity Registrant Name	CHOICEONE FINANCIAL SERVICES INC
Entity Central Index Key	0000803164
Document Type	10-Q
Trading Symbol	COFS
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		3,628,541
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 16,296	$ 19,690
Equity securities at fair value (Note 2)	3,034	2,847
Securities available for sale (Note 2)	168,254	166,602
Federal Home Loan Bank stock	1,994	1,994
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	1,524	831
Loans to other financial institutions	28,119	20,644
Loans (Note 3)	402,044	409,073
Allowance for loan losses (Note 3)	(4,730)	(4,673)
Loans, net	397,314	404,400
Premises and equipment, net	16,125	15,879
Cash surrender value of life insurance policies	14,995	14,899
Goodwill	13,728	13,728
Other assets	7,464	7,457
Total assets	670,420	670,544
Liabilities
Deposits - noninterest-bearing	155,047	153,542
Deposits - interest-bearing	409,404	423,473
Total deposits	564,451	577,015
Federal funds purchased		4,800
Advances from Federal Home Loan Bank	20,225	5,233
Other liabilities	3,042	3,019
Total liabilities	587,718	590,067
Shareholders' Equity
Preferred stock; shares authorized: 100,000; shares outstanding: none
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,619,510 at March 31, 2019 and 3,616,483 at December 31, 2018	54,621	54,523
Retained earnings	27,599	26,686
Accumulated other comprehensive income (loss), net	482	(732)
Total shareholders' equity	82,702	80,477
Total liabilities and shareholders' equity	$ 670,420	$ 670,544

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, authorized	100,000	100,000
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	7,000,000	7,000,000
Common stock, outstanding	3,619,510	3,616,483

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income
Loans, including fees	$ 5,280	$ 4,653
Securities:
Taxable	760	628
Tax exempt	369	361
Other	68	57
Total interest income	6,477	5,699
Interest expense
Deposits	851	346
Advances from Federal Home Loan Bank	116	45
Other	14	1
Total interest expense	981	392
Net interest income	5,496	5,307
Provision for loan losses		35
Net interest income after provision for loan losses	5,496	5,272
Noninterest income
Customer service charges	1,033	1,055
Insurance and investment commissions	63	62
Gains on sales of loans	246	261
Gains on sales of securities	1	9
Gains on sales of other assets	13	8
Earnings on life insurance policies	96	94
Change in market value of equity securities	187	23
Other	118	136
Total noninterest income	1,758	1,648
Noninterest expense
Salaries and benefits	2,777	2,749
Occupancy and equipment	771	680
Data processing	556	534
Professional fees	517	217
Supplies and postage	100	116
Advertising and promotional	44	92
Other	569	576
Total noninterest expense	5,334	4,964
Income before income tax	1,920	1,956
Income tax expense	283	298
Net income	$ 1,637	$ 1,658
Basic earnings per share (Note 4) (in dollars per share)	$ 0.45	$ 0.46
Diluted earnings per share (Note 4) (in dollars per share)	0.45	0.46
Dividends declared per share (in dollars per share)	$ 0.2	$ 0.17

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,637	$ 1,658
Other comprehensive income:
Changes in net unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit) of $323 and $(484) for the periods ended March 31, 2019 and 2018, respectively	1,215	(1,817)
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $0 and $2 for the periods ended March 31, 2019 and 2018, respectively	(1)	(7)
Other comprehensive income (loss), net of tax	1,214	(1,824)
Comprehensive income (loss)	$ 2,851	$ (166)

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Unrealized holding gains (losses) on available for sale securities, tax expense (benefit)	$ 323	$ (484)
Reclassification adjustment for gain recognized in net income, tax expense (benefit)	$ 0	$ 2

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands		Common Stock and Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net [Member]	Total
Balance, beginning at Dec. 31, 2017		$ 50,290	$ 26,023	$ 237	$ 76,550
Balance, beginning (in shares) at Dec. 31, 2017		3,448,569
Increase (Decrease) in Stockholders' Equity
Net income			1,658		1,658
Other comprehensive income (loss)				(1,824)	(1,824)
Shares issued		$ 33			33
Shares issued (in shares)		1,496
Shares repurchased		$ (252)			(252)
Shares repurchased (in shares)		(10,228)
Effect of employee stock purchases		$ 3			3
Stock-based compensation expense		65			65
Adoption effect of ASU 2016-01	[1]		244	(244)
Cash dividends declared			(619)		(619)
Balance, ending at Mar. 31, 2018		$ 50,139	27,306	(1,831)	75,614
Balance, ending (in shares) at Mar. 31, 2018		3,439,837
Balance, beginning at Dec. 31, 2018		$ 54,523	26,686	(732)	$ 80,477
Balance, beginning (in shares) at Dec. 31, 2018		3,616,483			3,616,483
Increase (Decrease) in Stockholders' Equity
Net income			1,637		$ 1,637
Other comprehensive income (loss)				1,214	1,214
Shares issued		$ 47			47
Shares issued (in shares)		2,004
Effect of employee stock purchases		$ 4			4
Stock-based compensation expense		57			57
Restricted stock units issued		$ (10)			(10)
Restricted stock units issued (in shares)		1,023
Cash dividends declared			(724)		(724)
Balance, ending at Mar. 31, 2019		$ 54,621	$ 27,599	$ 482	$ 82,702
Balance, ending (in shares) at Mar. 31, 2019		3,619,510			3,619,510
[1]	ASU 2016-01 is further addressed in Note 1 to the financial statements.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.2	$ 0.17

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 1,637	$ 1,658
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses		35
Depreciation	351	294
Amortization	216	213
Compensation expense on employee and director stock purchases, stock options, and restricted stock units	79	83
Gains on sales of securities	(1)	(9)
Net change in market value of equity securities	(187)	(23)
Gains on sales of loans	(246)	(261)
Loans originated for sale	(6,944)	(9,737)
Proceeds from loan sales	6,279	10,229
Earnings on bank-owned life insurance	(96)	(94)
Gains on sales of other real estate owned	(8)	(8)
Proceeds from sales of other real estate owned	53	114
Deferred federal income tax benefit	6	62
Net change in:
Other assets	(314)	(773)
Other liabilities	(99)	(99)
Net cash from operating activities	727	1,684
Cash flows from investing activities:
Sales of securities available for sale		91
Maturities, prepayments and calls of securities available for sale	4,547	909
Purchases of securities available for sale	(4,789)	(15,352)
Loan originations and payments, net	(318)	13,563
Additions to premises and equipment	(484)	(619)
Net cash used in investing activities	(1,044)	(1,408)
Cash flows from financing activities:
Net change in deposits	(12,564)	(7,579)
Net change in repurchase agreements		(4,687)
Net change in federal funds purchased	(4,800)
Proceeds from Federal Home Loan Bank advances	30,000
Payments on Federal Home Loan Bank advances	(15,008)	(10,009)
Issuance of common stock	19	18
Repurchase of common stock		(252)
Cash dividends and fractional shares from stock dividend	(724)	(619)
Net cash used in financing activities	(3,077)	(23,128)
Net change in cash and cash equivalents	(3,394)	(22,852)
Beginning cash and cash equivalents	19,690	36,837
Ending cash and cash equivalents	16,296	13,985
Supplemental disclosures of cash flow information:
Cash paid for interest	1,015	386
Cash paid for income taxes		300
Loans transferred to other real estate owned	$ 64	$ 179

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, the Consolidated Statements of Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2019 and March 31, 2018, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2019 and March 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2018. Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 13 different mortgage bankers, with the largest creditor outstanding representing 25% of the total at March 31, 2019. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2019, 12 of the 178 participating interests with principal balances totaling $2.6 million had balances outstanding over 30 days. During the first three months of 2019, there were no losses or charge-offs of participating interests. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 1,146 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $28,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2019. A total of 858 shares for a cash price of $19,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2019. Shares issued upon the vesting of restricted stock units, net of shares withheld for payment of related taxes, totaled 1,023 in the first quarter of 2019. Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. All of the restricted stock units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 569 $ (37 ) $ 3,034 December 31, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 459 $ (114 ) $ 2,847 The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,071 $ — $ (307 ) $ 33,764 U.S. Treasury 1,993 — (34 ) 1,959 State and municipal 103,185 1,073 (371 ) 103,887 Mortgage-backed 22,927 208 (111 ) 23,024 Corporate 5,146 4 (33 ) 5,117 Trust preferred securities 500 — — 500 Asset-backed securities 3 — — 3 Total $ 167,825 $ 1,285 $ (856 ) $ 168,254 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,079 $ 1 $ (551 ) $ 33,529 U.S. Treasury 1,992 — (45 ) 1,947 State and municipal 104,317 544 (933 ) 103,928 Mortgage-backed 21,654 126 (205 ) 21,575 Corporate 5,147 1 (46 ) 5,102 Trust preferred securities 500 — — 500 Asset-backed securities 21 — — 21 Total $ 167,710 $ 672 $ (1,780 ) $ 166,602 ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the first quarter of 2019. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues. Presented below is a schedule of maturities of securities as of March 31, 2019, the fair value of securities as of March 31, 2019 and December 31, 2018, and the weighted average yields of securities as of March 31, 2019: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at March 31, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2019 2018 U.S. Government and federal agency $ 18,846 $ 10,940 $ 3,978 $ — $ 33,764 $ 33,529 U.S. Treasury notes and bonds — 1,959 — — 1,959 1,947 State and municipal 9,186 53,891 38,840 1,970 103,887 103,928 Corporate 2,498 2,619 — — 5,117 5,102 Trust preferred securities 500 — — — 500 500 Asset-backed securities 3 — — — 3 21 Total debt securities 31,033 69,409 42,818 1,970 145,230 145,027 Mortgage-backed securities — 5,897 17,080 47 23,024 21,575 Equity securities (1) — — 963 2,071 3,034 2,847 Total $ 31,033 $ 75,306 $ 60,861 $ 4,088 $ 171,288 $ 169,449 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.30 % 1.91 % 2.71 % — % 2.22 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 2.95 2.83 3.21 0.89 2.95 Corporate 0.46 2.66 — — 1.58 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.85 — — — 2.85 Mortgage-backed securities — 3.13 2.84 4.75 2.92 Equity securities (1) — — 4.51 — 1.23 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. Following is information regarding unrealized gains and losses on equity securities for the three month periods ending March 31, 2019 and March 31, 2018: 2019 2018 Net gains and losses recognized during the period $ 187 $ 23 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 187 $ 14

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — 0 — (106 ) Recoveries — 17 143 2 — 1 — 163 Provision (57 ) (52 ) 45 (65 ) 2 20 107 — Ending balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Individually evaluated for impairment $ 85 $ 4 $ 12 $ 19 $ — $ 179 $ — $ 299 Collectively evaluated for impairment $ 339 $ 853 $ 324 $ 1,844 $ 40 $ 379 $ 652 $ 4,431 December 31, 2018 Individually evaluated for impairment $ 94 $ 3 $ 13 $ 20 $ — $ 167 $ — $ 297 Collectively evaluated for impairment $ 387 $ 889 $ 241 $ 1,906 $ 38 $ 370 $ 545 $ 4,376 Three Months Ended March 31, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — — (69 ) — — (3 ) — (72 ) Recoveries — 53 37 55 — 24 — 169 Provision (156 ) (49 ) 15 (30 ) (17 ) (122 ) 394 35 Ending balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Individually evaluated for impairment $ — $ 93 $ 9 $ 46 $ — $ 217 $ — $ 365 Collectively evaluated for impairment $ 350 $ 912 $ 236 $ 1,740 $ 18 $ 408 $ 680 $ 4,344 Loans March 31, 2019 Individually evaluated for impairment $ 389 $ 25 $ 63 $ 605 $ — $ 2,691 $ 3,773 Collectively evaluated for impairment 41,656 92,575 24,130 136,442 9,294 94,174 398,271 Ending balance $ 42,045 $ 92,600 $ 24,193 $ 137,047 $ 9,294 $ 96,865 $ 402,044 December 31, 2018 Individually evaluated for impairment $ 578 $ 21 $ 90 $ 623 $ — $ 2,712 $ 4,024 Collectively evaluated for impairment 48,531 91,385 24,292 138,830 8,843 93,168 405,049 Ending balance $ 49,109 $ 91,406 $ 24,382 $ 139,453 $ 8,843 $ 95,880 $ 409,073 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered pass credits. However, they have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Risk ratings 1 and 2 $ 11,638 $ 15,300 $ 12,278 $ 11,972 $ 7,577 $ 7,962 Risk rating 3 20,031 23,938 47,063 50,266 87,791 89,173 Risk rating 4 9,761 9,082 28,856 23,961 36,353 36,193 Risk rating 5 227 211 4,393 5,204 4,116 4,850 Risk rating 6 388 578 10 3 1,210 1,275 $ 42,045 $ 49,109 $ 92,600 $ 91,406 $ 137,047 $ 139,453 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Performing $ 24,143 $ 24,320 $ 9,294 $ 8,843 $ 95,840 $ 94,925 Nonperforming — — — — — — Nonaccrual 50 62 — — 1,025 955 $ 24,193 $ 24,382 $ 9,294 $ 8,843 $ 96,865 $ 95,880 The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Pre- Post- Number of Pre- Post- Commercial real estate — $ — $ — 1 $ 58 $ 58 Commercial and industrial — — — 2 97 97 Total — $ — $ — 3 $ 155 $ 155 The pre-modification and post-modification outstanding recorded investments represent amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows. The following schedule provides information on TDRs as of March 31, 2019 and 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2019 and March 31, 2018 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial — $ — 2 $ 97 Commercial real estate — — 1 58 — $ — 3 $ 155 Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2019 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial — — — Consumer — — — Commercial real estate 72 108 — Construction real estate — — — Residential real estate 156 171 — Total 228 279 — With an allowance recorded Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 533 538 19 Construction real estate — — — Residential real estate 2,535 2,582 179 Total 3,545 3,648 299 Total Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 605 646 19 Construction real estate — — — Residential real estate 2,691 2,753 179 Total $ 3,773 $ 3,927 $ 299 December 31, 2018 With no related allowance recorded Agricultural $ 185 $ 185 $ — Commercial and industrial — — — Consumer 1 1 — Construction real estate — — — Commercial real estate 73 109 — Residential real estate 250 261 — Total 509 556 — With an allowance recorded Agricultural 393 440 94 Commercial and industrial 21 21 3 Consumer 89 89 13 Construction real estate — — — Commercial real estate 550 609 20 Residential real estate 2,462 2,494 167 Total 3,515 3,653 297 Total Agricultural 578 625 94 Commercial and industrial 21 21 3 Consumer 90 90 13 Construction real estate — — — Commercial real estate 623 718 20 Residential real estate 2,712 2,755 167 Total $ 4,024 $ 4,209 $ 297 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2019 and 2018: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Commercial real estate 73 7 Residential real estate 203 23 Total 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Commercial real estate 541 — Residential real estate 2,499 1 Total 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 77 — Commercial real estate 614 7 Residential real estate 2,702 24 Total $ 3,899 $ 31 Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2018 With no related allowance recorded Agricultural $ 428 $ — Commercial and industrial 59 — Consumer 2 — Commercial real estate 99 — Residential real estate 152 — Total 740 — With an allowance recorded Agricultural — — Commercial and industrial 170 8 Consumer 34 — Commercial real estate 762 — Residential real estate 2,549 26 Total 3,515 34 Total Agricultural 428 — Commercial and industrial 229 8 Consumer 36 — Commercial real estate 861 — Residential real estate 2,701 26 Total $ 4,255 $ 34 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2019 Agricultural $ — $ — $ — $ — $ 42,045 $ 42,045 $ — Commercial and industrial 353 — 2 355 92,245 92,600 — Consumer 39 3 45 87 24,106 24,193 — Commercial real estate 96 — 72 168 136,879 137,047 — Construction real estate — — — — 9,294 9,294 — Residential real estate 742 209 99 1,050 95,815 96,865 — $ 1,230 $ 212 $ 218 $ 1,660 $ 400,384 $ 402,044 $ — December 31, 2018 Agricultural $ — $ — $ — $ — $ 49,109 $ 49,109 $ — Commercial and industrial 5 — — 5 91,401 91,406 — Consumer 149 40 11 200 24,182 24,382 — Commercial real estate — — 73 73 139,380 139,453 — Construction real estate — — — — 8,843 8,843 — Residential real estate 1,493 486 648 2,627 93,253 95,880 — $ 1,647 $ 526 $ 732 $ 2,905 $ 406,168 $ 409,073 $ — (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2019 2018 Agricultural $ 389 $ 393 Commercial and industrial 1 — Consumer 50 62 Commercial real estate 119 123 Construction real estate — — Residential real estate 1,025 954 $ 1,584 $ 1,532

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2019 2018 Basic Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Basic earnings per share $ 0.45 $ 0.46 Diluted Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Plus dilutive stock options and restricted stock units 15,720 13,944 Weighted average common shares outstanding and potentially dilutive shares 3,634,048 3,628,949 Diluted earnings per share $ 0.45 $ 0.46 There were 15,000 stock options that were considered to be anti-dilutive to earnings as of March 31, 2019 and were excluded from the calculation above. There were no stock options that were considered to be anti-dilutive to earnings per share as of March 31, 2018.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2019 Assets: Cash and due from banks $ 16,296 $ 16,296 $ 16,296 $ — $ — Equity securities at fair value 3,034 3,034 2,071 — 963 Securities available for sale 168,254 168,254 — 159,659 8,595 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,524 1,570 — 1,570 — Loans to other financial institutions 28,119 28,119 — 28,119 — Loans, net 397,314 388,091 — — 388,091 Accrued interest receivable 2,787 2,787 — 2,787 — Liabilities: Noninterest-bearing deposits 155,047 155,047 — 155,047 — Interest-bearing deposits 409,404 408,699 — 408,699 — Federal funds purchased — — — — — Federal Home Loan Bank advances 20,225 20,244 — 20,244 — Accrued interest payable 176 176 — 176 — December 31, 2018 Assets: Cash and due from banks $ 19,690 $ 19,690 $ 19,690 $ — $ — Equity securities at fair value 2,847 2,847 1,961 — 886 Securities available for sale 166,602 166,602 — 158,104 8,498 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 831 856 — 856 — Loans to other financial institutions 20,644 20,644 — 20,644 — Loans, net 404,400 399,091 — — 399,091 Accrued interest receivable 2,267 2,267 — 2,267 — Liabilities: Noninterest-bearing deposits 153,542 153,542 — 153,542 — Interest-bearing deposits 423,473 422,381 — 422,381 — Federal funds purchased 4,800 4,800 — 4,800 — Federal Home Loan Bank advances 5,233 5,241 — 5,241 — Accrued interest payable 210 210 — 210 —

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about assets and liabilities measured at fair value on a recurring basis and the valuation techniques used to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Bank has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of March 31, 2019 or December 31, 2018. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - March 31, 2019 Equity securities $ 2,071 $ — $ 963 $ 3,034 Investment Securities, Available for Sale - March 31, 2019 U.S. Treasury notes and bonds $ — $ 1,959 $ — $ 1,959 U.S. Government and federal agency — 33,764 — 33,764 State and municipal — 95,792 8,095 103,887 Mortgage-backed — 23,024 — 23,024 Corporate — 5,117 — 5,117 Trust preferred securities — — 500 500 Asset backed securities — 3 — 3 Total $ — $ 159,659 $ 8,595 $ 168,254 Equity Securities Held at Fair Value - December 31, 2018 Equity securities $ 1,961 $ — $ 886 $ 2,847 Investment Securities, Available for Sale - December 31, 2018 U.S. Treasury notes and bonds $ — $ 1,947 $ — $ 1,947 U.S. Government and federal agency — 33,529 — 33,529 State and municipal — 95,930 7,998 103,928 Mortgage-backed — 21,575 — 21,575 Corporate — 5,102 — 5,102 Trust preferred securities — — 500 500 Asset backed securities — 21 — 21 Total $ — $ 158,104 $ 8,498 $ 166,602 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2019 2018 Equity Securities Held at Fair Value Balance, January 1 $ 886 $ — Reclassification due to implementation of ASU 2016-01 — 1,000 Total realized and unrealized gains included in noninterest income 77 — Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 963 $ 1,000 Investment Securities, Available for Sale Balance, January 1 $ 8,498 $ 13,398 Reclassification due to implementation of ASU 2016-01 — (1,000 ) Total unrealized gains (losses) included in other comprehensive income 97 (230 ) Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 8,595 $ 12,168 Of the Level 3 assets that were held by the company at March 31, 2019, the net unrealized gain as of March 31, 2019 was $206,000, which is recognized in other comprehensive income in the consolidated balance sheet. There were no purchases or sales of Level 3 securities in the first quarter of 2019 or in the first quarter of 2018. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. Securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities and equity securities of community banks. The company estimates the fair value of these bonds based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable (Dollars in thousands) Balance at Identical Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2019 $ 3,773 $ — $ — $ 3,773 December 31, 2018 $ 4,024 $ — $ — $ 4,024 Other Real Estate March 31, 2019 $ 121 $ — $ — $ 121 December 31, 2018 $ 102 $ — $ — $ 102 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The company estimates the fair value of the loans based on the present value of expected future cash flows using management’s estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for loan losses and write-downs of other real estate that were posted to a valuation account.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS ChoiceOne has a variety of sources of revenue, which include interest and fees from customers as well as revenue from non-customers. ASC Topic 606, Revenue from Contracts With Customers, covers certain sources of revenue that are classified within noninterest income in the Consolidated Statements of Income. Sources of revenue that are included in the scope of ACS Topic 606 include service charges and fees on deposit accounts, interchange income, investment asset management income and transaction-based revenue, and other charges and fees for customer services. Service Charges and Fees on Deposit Accounts Revenue includes charges and fees to provide account maintenance, overdraft services, wire transfers, funds transfer, and other deposit-related services. Account maintenance fees such as monthly services charges are recognized over the period of time that the service is provided. Transaction fees such as wire transfer charges are recognized when the service is provided to the customer. Interchange Income Revenue includes debit card interchange and network revenues. This revenue is earned on debit card transactions that are conducted through payment networks such as MasterCard. The revenue is recorded as services are delivered and is presented net of interchange expenses. Investment Commission Income Revenue includes fees from investment management advisory services and revenue is recognized when services are rendered. Revenue also includes commissions received from the placement of brokerage transactions for purchase or sale of stocks or other investments. Commission income is recognized when the transaction has been completed. Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees on deposit accounts $ 628 $ 622 Interchange income 405 433 Investment commission income 50 50 Other charges and fees for customer services 63 65 Noninterest income from contracts with customers within the scope of ASC 606 1,146 1,170 Noninterest income within the scope of other GAAP topics 613 478 Total noninterest income $ 1,758 $ 1,648

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
BUSINESS COMBINATION	NOTE 8 – BUSINESS COMBINATION On March 22, 2019, ChoiceOne entered into an Agreement and Plan of Merger With County Bank Corp (“County”), the holding company for Lakestone Bank & Trust. Under the terms of the merger agreement, County will be merged with and into ChoiceOne, with ChoiceOne as the surviving corporation. Completion of the merger is subject to receipt of shareholder approval of both ChoiceOne and County, receipt of regulatory approval, and the satisfaction of other customary closing conditions. Management expects the merger to become effective in the second half of 2019. As of December 31, 2018, County had total assets of approximately $620 million, total loans of approximately $360 million, and total deposits of approximately $540 million.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, the Consolidated Statements of Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2019 and March 31, 2018, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2019 and March 31, 2018, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2019 and March 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2018.
Loans to Other Financial Institutions	Loans to Other Financial Institutions The Bank entered into an agreement with another financial institution to fund mortgage loans. Loans to other financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 13 different mortgage bankers, with the largest creditor outstanding representing 25% of the total at March 31, 2019. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2019, 12 of the 178 participating interests with principal balances totaling $2.6 million had balances outstanding over 30 days. During the first three months of 2019, there were no losses or charge-offs of participating interests.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income.
Stock Transactions	Stock Transactions A total of 1,146 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $28,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2019. A total of 858 shares for a cash price of $19,000 were issued under the Employee Stock Purchase Plan in the first quarter of 2019. Shares issued upon the vesting of restricted stock units, net of shares withheld for payment of related taxes, totaled 1,023 in the first quarter of 2019.
Stock-Based Compensation	Stock-Based Compensation ChoiceOne grants restricted stock units to a select group of employees under the Stock Incentive Plan of 2012. All of the restricted stock units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock.
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of fair value of securities and related gross unrealized gains and losses recognized in noninterest income	The fair value of equity securities at fair value and the related gross unrealized gains recognized in noninterest income were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 569 $ (37 ) $ 3,034 December 31, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value Equity securities $ 2,502 $ 459 $ (114 ) $ 2,847
Schedule of fair value of securities available for sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss)	The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2019 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,071 $ — $ (307 ) $ 33,764 U.S. Treasury 1,993 — (34 ) 1,959 State and municipal 103,185 1,073 (371 ) 103,887 Mortgage-backed 22,927 208 (111 ) 23,024 Corporate 5,146 4 (33 ) 5,117 Trust preferred securities 500 — — 500 Asset-backed securities 3 — — 3 Total $ 167,825 $ 1,285 $ (856 ) $ 168,254 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,079 $ 1 $ (551 ) $ 33,529 U.S. Treasury 1,992 — (45 ) 1,947 State and municipal 104,317 544 (933 ) 103,928 Mortgage-backed 21,654 126 (205 ) 21,575 Corporate 5,147 1 (46 ) 5,102 Trust preferred securities 500 — — 500 Asset-backed securities 21 — — 21 Total $ 167,710 $ 672 $ (1,780 ) $ 166,602
Schedule of maturities, fair value and weighted average yields of securities	Presented below is a schedule of maturities of securities as of March 31, 2019, the fair value of securities as of March 31, 2019 and December 31, 2018, and the weighted average yields of securities as of March 31, 2019: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at March 31, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2019 2018 U.S. Government and federal agency $ 18,846 $ 10,940 $ 3,978 $ — $ 33,764 $ 33,529 U.S. Treasury notes and bonds — 1,959 — — 1,959 1,947 State and municipal 9,186 53,891 38,840 1,970 103,887 103,928 Corporate 2,498 2,619 — — 5,117 5,102 Trust preferred securities 500 — — — 500 500 Asset-backed securities 3 — — — 3 21 Total debt securities 31,033 69,409 42,818 1,970 145,230 145,027 Mortgage-backed securities — 5,897 17,080 47 23,024 21,575 Equity securities (1) — — 963 2,071 3,034 2,847 Total $ 31,033 $ 75,306 $ 60,861 $ 4,088 $ 171,288 $ 169,449 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.30 % 1.91 % 2.71 % — % 2.22 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 2.95 2.83 3.21 0.89 2.95 Corporate 0.46 2.66 — — 1.58 Trust preferred securities 5.50 — — — 5.50 Asset-backed securities 2.85 — — — 2.85 Mortgage-backed securities — 3.13 2.84 4.75 2.92 Equity securities (1) — — 4.51 — 1.23 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%.
Schedule of unrealized gains and losses on equity securities	Following is information regarding unrealized gains and losses on equity securities for the three month periods ending March 31, 2019 and March 31, 2018: 2019 2018 Net gains and losses recognized during the period $ 187 $ 23 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 187 $ 14

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Schedule of activity in the allowance for loan losses and balances in the loan portfolio	Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended March 31, 2019 Beginning balance $ 481 $ 892 $ 254 $ 1,926 $ 38 $ 537 $ 545 $ 4,673 Charge-offs — — (106 ) — — 0 — (106 ) Recoveries — 17 143 2 — 1 — 163 Provision (57 ) (52 ) 45 (65 ) 2 20 107 — Ending balance $ 424 $ 857 $ 336 $ 1,863 $ 40 $ 558 $ 652 $ 4,730 Individually evaluated for impairment $ 85 $ 4 $ 12 $ 19 $ — $ 179 $ — $ 299 Collectively evaluated for impairment $ 339 $ 853 $ 324 $ 1,844 $ 40 $ 379 $ 652 $ 4,431 December 31, 2018 Individually evaluated for impairment $ 94 $ 3 $ 13 $ 20 $ — $ 167 $ — $ 297 Collectively evaluated for impairment $ 387 $ 889 $ 241 $ 1,906 $ 38 $ 370 $ 545 $ 4,376 Three Months Ended March 31, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — — (69 ) — — (3 ) — (72 ) Recoveries — 53 37 55 — 24 — 169 Provision (156 ) (49 ) 15 (30 ) (17 ) (122 ) 394 35 Ending balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Individually evaluated for impairment $ — $ 93 $ 9 $ 46 $ — $ 217 $ — $ 365 Collectively evaluated for impairment $ 350 $ 912 $ 236 $ 1,740 $ 18 $ 408 $ 680 $ 4,344 Loans March 31, 2019 Individually evaluated for impairment $ 389 $ 25 $ 63 $ 605 $ — $ 2,691 $ 3,773 Collectively evaluated for impairment 41,656 92,575 24,130 136,442 9,294 94,174 398,271 Ending balance $ 42,045 $ 92,600 $ 24,193 $ 137,047 $ 9,294 $ 96,865 $ 402,044 December 31, 2018 Individually evaluated for impairment $ 578 $ 21 $ 90 $ 623 $ — $ 2,712 $ 4,024 Collectively evaluated for impairment 48,531 91,385 24,292 138,830 8,843 93,168 405,049 Ending balance $ 49,109 $ 91,406 $ 24,382 $ 139,453 $ 8,843 $ 95,880 $ 409,073
Schedule of the bank's credit exposure	Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Risk ratings 1 and 2 $ 11,638 $ 15,300 $ 12,278 $ 11,972 $ 7,577 $ 7,962 Risk rating 3 20,031 23,938 47,063 50,266 87,791 89,173 Risk rating 4 9,761 9,082 28,856 23,961 36,353 36,193 Risk rating 5 227 211 4,393 5,204 4,116 4,850 Risk rating 6 388 578 10 3 1,210 1,275 $ 42,045 $ 49,109 $ 92,600 $ 91,406 $ 137,047 $ 139,453 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2019 2018 2019 2018 2019 2018 Performing $ 24,143 $ 24,320 $ 9,294 $ 8,843 $ 95,840 $ 94,925 Nonperforming — — — — — — Nonaccrual 50 62 — — 1,025 955 $ 24,193 $ 24,382 $ 9,294 $ 8,843 $ 96,865 $ 95,880
Schedule of troubled debt restructurings	The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Pre- Post- Number of Pre- Post- Commercial real estate — $ — $ — 1 $ 58 $ 58 Commercial and industrial — — — 2 97 97 Total — $ — $ — 3 $ 155 $ 155 he following schedule provides information on TDRs as of March 31, 2019 and 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2019 and March 31, 2018 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial — $ — 2 $ 97 Commercial real estate — — 1 58 — $ — 3 $ 155
Schedule of impaired loans	Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2019 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial — — — Consumer — — — Commercial real estate 72 108 — Construction real estate — — — Residential real estate 156 171 — Total 228 279 — With an allowance recorded Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 533 538 19 Construction real estate — — — Residential real estate 2,535 2,582 179 Total 3,545 3,648 299 Total Agricultural 389 440 85 Commercial and industrial 25 25 4 Consumer 63 63 12 Commercial real estate 605 646 19 Construction real estate — — — Residential real estate 2,691 2,753 179 Total $ 3,773 $ 3,927 $ 299 December 31, 2018 With no related allowance recorded Agricultural $ 185 $ 185 $ — Commercial and industrial — — — Consumer 1 1 — Construction real estate — — — Commercial real estate 73 109 — Residential real estate 250 261 — Total 509 556 — With an allowance recorded Agricultural 393 440 94 Commercial and industrial 21 21 3 Consumer 89 89 13 Construction real estate — — — Commercial real estate 550 609 20 Residential real estate 2,462 2,494 167 Total 3,515 3,653 297 Total Agricultural 578 625 94 Commercial and industrial 21 21 3 Consumer 90 90 13 Construction real estate — — — Commercial real estate 623 718 20 Residential real estate 2,712 2,755 167 Total $ 4,024 $ 4,209 $ 297 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2019 and 2018: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2019 With no related allowance recorded Agricultural $ 92 $ — Commercial and industrial — — Consumer 1 — Commercial real estate 73 7 Residential real estate 203 23 Total 369 30 With an allowance recorded Agricultural 391 — Commercial and industrial 23 — Consumer 76 — Commercial real estate 541 — Residential real estate 2,499 1 Total 3,530 1 Total Agricultural 483 — Commercial and industrial 23 — Consumer 77 — Commercial real estate 614 7 Residential real estate 2,702 24 Total $ 3,899 $ 31 Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2018 With no related allowance recorded Agricultural $ 428 $ — Commercial and industrial 59 — Consumer 2 — Commercial real estate 99 — Residential real estate 152 — Total 740 — With an allowance recorded Agricultural — — Commercial and industrial 170 8 Consumer 34 — Commercial real estate 762 — Residential real estate 2,549 26 Total 3,515 34 Total Agricultural 428 — Commercial and industrial 229 8 Consumer 36 — Commercial real estate 861 — Residential real estate 2,701 26 Total $ 4,255 $ 34
Schedule of aging analysis of loans by loan category	An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2019 Agricultural $ — $ — $ — $ — $ 42,045 $ 42,045 $ — Commercial and industrial 353 — 2 355 92,245 92,600 — Consumer 39 3 45 87 24,106 24,193 — Commercial real estate 96 — 72 168 136,879 137,047 — Construction real estate — — — — 9,294 9,294 — Residential real estate 742 209 99 1,050 95,815 96,865 — $ 1,230 $ 212 $ 218 $ 1,660 $ 400,384 $ 402,044 $ — December 31, 2018 Agricultural $ — $ — $ — $ — $ 49,109 $ 49,109 $ — Commercial and industrial 5 — — 5 91,401 91,406 — Consumer 149 40 11 200 24,182 24,382 — Commercial real estate — — 73 73 139,380 139,453 — Construction real estate — — — — 8,843 8,843 — Residential real estate 1,493 486 648 2,627 93,253 95,880 — $ 1,647 $ 526 $ 732 $ 2,905 $ 406,168 $ 409,073 $ — (1) Includes nonaccrual loans.
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2019 2018 Agricultural $ 389 $ 393 Commercial and industrial 1 — Consumer 50 62 Commercial real estate 119 123 Construction real estate — — Residential real estate 1,025 954 $ 1,584 $ 1,532

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2019 2018 Basic Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Basic earnings per share $ 0.45 $ 0.46 Diluted Earnings Per Share Net income available to common shareholders $ 1,637 $ 1,658 Weighted average common shares outstanding 3,618,328 3,615,005 Plus dilutive stock options and restricted stock units 15,720 13,944 Weighted average common shares outstanding and potentially dilutive shares 3,634,048 3,628,949 Diluted earnings per share $ 0.45 $ 0.46

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Investments, All Other Investments [Abstract]
Schedule of carrying value and fair value of financial assets and liabilities	Financial instruments as of the dates indicated were as follows: Quoted in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2019 Assets: Cash and due from banks $ 16,296 $ 16,296 $ 16,296 $ — $ — Equity securities at fair value 3,034 3,034 2,071 — 963 Securities available for sale 168,254 168,254 — 159,659 8,595 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,524 1,570 — 1,570 — Loans to other financial institutions 28,119 28,119 — 28,119 — Loans, net 397,314 388,091 — — 388,091 Accrued interest receivable 2,787 2,787 — 2,787 — Liabilities: Noninterest-bearing deposits 155,047 155,047 — 155,047 — Interest-bearing deposits 409,404 408,699 — 408,699 — Federal funds purchased — — — — — Federal Home Loan Bank advances 20,225 20,244 — 20,244 — Accrued interest payable 176 176 — 176 — December 31, 2018 Assets: Cash and due from banks $ 19,690 $ 19,690 $ 19,690 $ — $ — Equity securities at fair value 2,847 2,847 1,961 — 886 Securities available for sale 166,602 166,602 — 158,104 8,498 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 831 856 — 856 — Loans to other financial institutions 20,644 20,644 — 20,644 — Loans, net 404,400 399,091 — — 399,091 Accrued interest receivable 2,267 2,267 — 2,267 — Liabilities: Noninterest-bearing deposits 153,542 153,542 — 153,542 — Interest-bearing deposits 423,473 422,381 — 422,381 — Federal funds purchased 4,800 4,800 — 4,800 — Federal Home Loan Bank advances 5,233 5,241 — 5,241 — Accrued interest payable 210 210 — 210 —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - March 31, 2019 Equity securities $ 2,071 $ — $ 963 $ 3,034 Investment Securities, Available for Sale - March 31, 2019 U.S. Treasury notes and bonds $ — $ 1,959 $ — $ 1,959 U.S. Government and federal agency — 33,764 — 33,764 State and municipal — 95,792 8,095 103,887 Mortgage-backed — 23,024 — 23,024 Corporate — 5,117 — 5,117 Trust preferred securities — — 500 500 Asset backed securities — 3 — 3 Total $ — $ 159,659 $ 8,595 $ 168,254 Equity Securities Held at Fair Value - December 31, 2018 Equity securities $ 1,961 $ — $ 886 $ 2,847 Investment Securities, Available for Sale - December 31, 2018 U.S. Treasury notes and bonds $ — $ 1,947 $ — $ 1,947 U.S. Government and federal agency — 33,529 — 33,529 State and municipal — 95,930 7,998 103,928 Mortgage-backed — 21,575 — 21,575 Corporate — 5,102 — 5,102 Trust preferred securities — — 500 500 Asset backed securities — 21 — 21 Total $ — $ 158,104 $ 8,498 $ 166,602
Schedule of changes in Level 3 assets measured at fair value on a recurring basis	Disclosures concerning assets measured at fair value are as follows: Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2019 2018 Equity Securities Held at Fair Value Balance, January 1 $ 886 $ — Reclassification due to implementation of ASU 2016-01 — 1,000 Total realized and unrealized gains included in noninterest income 77 — Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 963 $ 1,000 Investment Securities, Available for Sale Balance, January 1 $ 8,498 $ 13,398 Reclassification due to implementation of ASU 2016-01 — (1,000 ) Total unrealized gains (losses) included in other comprehensive income 97 (230 ) Net purchases, sales, calls, and maturities — — Net transfers into Level 3 — — Balance, March 31 $ 8,595 $ 12,168
Schedule of assets measured at fair value on a nonrecurring basis	Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable (Dollars in thousands) Balance at Identical Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2019 $ 3,773 $ — $ — $ 3,773 December 31, 2018 $ 4,024 $ — $ — $ 4,024 Other Real Estate March 31, 2019 $ 121 $ — $ — $ 121 December 31, 2018 $ 102 $ — $ — $ 102

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of noninterest income separated by revenue within the scope of ASC 606	Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees on deposit accounts $ 628 $ 622 Interchange income 405 433 Investment commission income 50 50 Other charges and fees for customer services 63 65 Noninterest income from contracts with customers within the scope of ASC 606 1,146 1,170 Noninterest income within the scope of other GAAP topics 613 478 Total noninterest income $ 1,758 $ 1,648

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	Jan. 02, 2019USD ($)	Mar. 31, 2019USD ($)Numbershares
Adoption effect of ASU 2016-01	$ 244
Number of mortgage bankers | Number		13
Number of participating interest in loans to other financial instutions over 30 days | Number		12
Number of participating interest in loans to other financial instutions | Number		178
Participating interest in loans to other financial instutions over 30 days		$ 2,600
Lease asset and liability	$ 105
Restricted Stock Units [Member]
Shares issued during the period upon vesting of Restricted Stock Units, shares | shares		1,023
Directors' Stock Purchase Plan [Member]
Shares issued during the period under Directors' Stock Plan, shares | shares		1,146
Shares issued during the period under Directors' Stock Plan		$ 28
Employee Stock Purchase Plan [Member]
Shares issued during period under Employee Stock Purchase Plan, shares | shares		858
Shares issued during period under Employee Stock Purchase Plan		$ 19

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Amortized Cost	$ 2,502	$ 2,502
Gross Unrealized Gains	569	459
Gross Unrealized Losses	(37)	(114)
Fair Value	$ 3,034	$ 2,847

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 167,825	$ 167,710
Gross Unrealized Gains	1,285	672
Gross Unrealized Losses	(856)	(1,780)
Fair Value	168,254	166,602
U.S. Government and Federal Agency [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,071	34,079
Gross Unrealized Gains		1
Gross Unrealized Losses	(307)	(551)
Fair Value	33,764	33,529
U.S. Treasury Notes and Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,993	1,992
Gross Unrealized Losses	(34)	(45)
Fair Value	1,959	1,947
State and Municipal [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	103,185	104,317
Gross Unrealized Gains	1,073	544
Gross Unrealized Losses	(371)	(933)
Fair Value	103,887	103,928
Mortgage-backed [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,927	21,654
Gross Unrealized Gains	208	126
Gross Unrealized Losses	(111)	(205)
Fair Value	23,024	21,575
Corporate [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,146	5,147
Gross Unrealized Gains	4	1
Gross Unrealized Losses	(33)	(46)
Fair Value	5,117	5,102
Trust Preferred Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	500	500
Fair Value	500	500
Asset-backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3	21
Fair Value	$ 3	$ 21

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Available for Sale Securities, Fair Values
Less than 1 Year		$ 31,033
1 Year - 5 Years		75,306
5 Years - 10 Years		60,861
More than 10 Years		4,088
Securities available for sale		168,254	$ 166,602
U.S. Government and Federal Agency [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		18,846
1 Year - 5 Years		10,940
5 Years - 10 Years		3,978
Securities available for sale		$ 33,764	33,529
Weighted average yields
Less than 1 year		2.30%
1 year to 5 years		1.91%
5 years to 10 years		2.71%
Total		2.22%
U.S. Treasury Notes and Bonds [Member]
Available for Sale Securities, Fair Values
1 Year - 5 Years		$ 1,959
Securities available for sale		$ 1,959	1,947
Weighted average yields
1 year to 5 years		1.85%
Total		1.85%
State and Municipal [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 9,186
1 Year - 5 Years		53,891
5 Years - 10 Years		38,840
More than 10 Years		1,970
Securities available for sale		$ 103,887	103,928
Weighted average yields
Less than 1 year	[1]	2.95%
1 year to 5 years	[1]	2.83%
5 years to 10 years	[1]	3.21%
More than 10 years	[1]	0.89%
Total	[1]	2.95%
Corporate [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 2,498
1 Year - 5 Years		2,619
Securities available for sale		$ 5,117	5,102
Weighted average yields
Less than 1 year		0.46%
1 year to 5 years		2.66%
Total		1.58%
Trust Preferred Securities [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 500
Securities available for sale		$ 500	500
Weighted average yields
Less than 1 year		5.50%
Total		5.50%
Asset-backed Securities [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 3
Securities available for sale		$ 3	21
Weighted average yields
Less than 1 year		2.85%
Total		2.85%
Total Debt Securities [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 31,033
1 Year - 5 Years		69,409
5 Years - 10 Years		42,818
More than 10 Years		1,970
Securities available for sale		145,230	145,027
Mortgage-backed [Member]
Available for Sale Securities, Fair Values
1 Year - 5 Years		5,897
5 Years - 10 Years		17,080
More than 10 Years		47
Securities available for sale		$ 23,024	21,575
Weighted average yields
1 year to 5 years		3.13%
5 years to 10 years		2.84%
More than 10 years		4.75%
Total		2.92%
Equity Securities [Member]
Available for Sale Securities, Fair Values
5 Years - 10 Years	[2]	$ 963
More than 10 Years	[2]	2,071
Securities available for sale	[2]	$ 3,034	$ 2,847
Weighted average yields
5 years to 10 years	[2]	4.51%
Total	[2]	1.23%
[1]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%.
[2]	Equity securities are preferred and common stock that may or may not have a stated maturity.

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Net gains and losses recognized during the period	$ 187	$ 23
Less: Net gains and losses recognized during the period on securities sold		9
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date	$ 187	$ 14

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Allowance for Loan Losses
Beginning balance	$ 4,673	$ 4,577
Charge-offs	(106)	(72)
Recoveries	163	169
Provision		35
Ending balance	4,730	4,709
Individually evaluated for impairment	299	365	$ 297
Collectively evaluated for impairment	4,431	4,344	4,376
Loans
Individually evaluated for impairment	3,773		4,024
Collectively evaluated for impairment	398,271		405,049
Ending balance	402,044		409,073
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	481	506
Provision	(57)	(156)
Ending balance	424	350
Individually evaluated for impairment	85		94
Collectively evaluated for impairment	339	350	387
Loans
Individually evaluated for impairment	389		578
Collectively evaluated for impairment	41,656		48,531
Ending balance	42,045		49,109
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	892	1,001
Recoveries	17	53
Provision	(52)	(49)
Ending balance	857	1,005
Individually evaluated for impairment	4	93	3
Collectively evaluated for impairment	853	912	889
Loans
Individually evaluated for impairment	25		21
Collectively evaluated for impairment	92,575		91,385
Ending balance	92,600		91,406
Consumer [Member]
Allowance for Loan Losses
Beginning balance	254	262
Charge-offs	(106)	(69)
Recoveries	143	37
Provision	45	15
Ending balance	336	245
Individually evaluated for impairment	12	9	13
Collectively evaluated for impairment	324	236	241
Loans
Individually evaluated for impairment	63		90
Collectively evaluated for impairment	24,130		24,292
Ending balance	24,193		24,382
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,926	1,761
Recoveries	2	55
Provision	(65)	(30)
Ending balance	1,863	1,786
Individually evaluated for impairment	19	46	20
Collectively evaluated for impairment	1,844	1,740	1,906
Loans
Individually evaluated for impairment	605		623
Collectively evaluated for impairment	136,442		138,830
Ending balance	137,047		139,453
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	38	35
Provision	2	(17)
Ending balance	40	18
Collectively evaluated for impairment	40	18	38
Loans
Collectively evaluated for impairment	9,294		8,843
Ending balance	9,294		8,843
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	537	726
Charge-offs	0	(3)
Recoveries	1	24
Provision	20	(122)
Ending balance	558	625
Individually evaluated for impairment	179	217	167
Collectively evaluated for impairment	379	408	370
Loans
Individually evaluated for impairment	2,691		2,712
Collectively evaluated for impairment	94,174		93,168
Ending balance	96,865		95,880
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	545	286
Provision	107	394
Ending balance	652	680
Collectively evaluated for impairment	$ 652	$ 680	$ 545

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 402,044	$ 409,073
Nonaccrual past due loans	1,584	1,532
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	42,045	49,109
Nonaccrual past due loans	389	393
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	11,638	15,300
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	20,031	23,938
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	9,761	9,082
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	227	211
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	388	578
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	92,600	91,406
Nonaccrual past due loans	1
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	12,278	11,972
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	47,063	50,266
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	28,856	23,961
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	4,393	5,204
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	10	3
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	137,047	139,453
Nonaccrual past due loans	119	123
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,577	7,962
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	87,791	89,173
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	36,353	36,193
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	4,116	4,850
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,210	1,275
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	24,193	24,382
Nonaccrual past due loans	50	62
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	24,143	24,320
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	9,294	8,843
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	9,294	8,843
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	96,865	95,880
Nonaccrual past due loans	1,025	954
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 95,840	$ 94,925

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)Number
Financing Receivable, Modifications [Line Items]
Number of Loans | Number	3
Pre-Modification Outstanding Recorded Investment	$ 155
Post Modification Oustanding Recorded Investment	$ 155
Number of Loans with payment defaults during period | Number	3
Recorded Investment with payment defaults during period	$ 155
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Number	1
Pre-Modification Outstanding Recorded Investment	$ 58
Post Modification Oustanding Recorded Investment	$ 58
Number of Loans with payment defaults during period | Number	2
Recorded Investment with payment defaults during period	$ 97
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Number	2
Pre-Modification Outstanding Recorded Investment	$ 97
Post Modification Oustanding Recorded Investment	$ 97
Number of Loans with payment defaults during period | Number	1
Recorded Investment with payment defaults during period	$ 58

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	$ 228		$ 509
Unpaid Principal Balance with no related allowance recorded	279		556
Average Recorded Investment with no related allowance recorded	369	$ 740
Interest Income Recognized with no related allowance recorded	30
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	3,545		3,515
Unpaid Principal Balance with an allowance recorded	3,648		3,653
Related Allowance	299		297
Average Recorded Investment with an allowance recorded	3,530	3,515
Interest Income Recognized with an allowance recorded	1	34
Impaired Loans
Recorded Investment	3,773		4,024
Unpaid Principal Balance	3,927		4,209
Related Allowance	299		297
Average Recorded Investment	3,899	4,255
Interest Income Recognized	31	34
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded			185
Unpaid Principal Balance with no related allowance recorded			185
Average Recorded Investment with no related allowance recorded	92	428
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	389		393
Unpaid Principal Balance with an allowance recorded	440		440
Related Allowance	85		94
Average Recorded Investment with an allowance recorded	391
Impaired Loans
Recorded Investment	389		578
Unpaid Principal Balance	440		625
Related Allowance	85		94
Average Recorded Investment	483	428
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Average Recorded Investment with no related allowance recorded		59
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	25		21
Unpaid Principal Balance with an allowance recorded	25		21
Related Allowance	4		3
Average Recorded Investment with an allowance recorded	23	170
Interest Income Recognized with an allowance recorded		8
Impaired Loans
Recorded Investment	25		21
Unpaid Principal Balance	25		21
Related Allowance	4		3
Average Recorded Investment	23	229
Interest Income Recognized		8
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded			1
Unpaid Principal Balance with no related allowance recorded			1
Average Recorded Investment with no related allowance recorded	1	2
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	63		89
Unpaid Principal Balance with an allowance recorded	63		89
Related Allowance	12		13
Average Recorded Investment with an allowance recorded	76	34
Impaired Loans
Recorded Investment	63		90
Unpaid Principal Balance	63		90
Related Allowance	12		13
Average Recorded Investment	77	36
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	72		74
Unpaid Principal Balance with no related allowance recorded	108		109
Average Recorded Investment with no related allowance recorded	73	99
Interest Income Recognized with no related allowance recorded	7
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	533		550
Unpaid Principal Balance with an allowance recorded	538		609
Related Allowance	19		20
Average Recorded Investment with an allowance recorded	541	762
Impaired Loans
Recorded Investment	605		623
Unpaid Principal Balance	646		718
Related Allowance	19		20
Average Recorded Investment	614	861
Interest Income Recognized	7
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	156		250
Unpaid Principal Balance with no related allowance recorded	171		261
Average Recorded Investment with no related allowance recorded	203	152
Interest Income Recognized with no related allowance recorded	23
Impaired Loans with a related allowance recorded
Recorded Investment with an allowance recorded	2,535		2,462
Unpaid Principal Balance with an allowance recorded	2,582		2,494
Related Allowance	179		167
Average Recorded Investment with an allowance recorded	2,499	2,549
Interest Income Recognized with an allowance recorded	1	26
Impaired Loans
Recorded Investment	2,691		2,712
Unpaid Principal Balance	2,753		2,755
Related Allowance	179		$ 167
Average Recorded Investment	2,702	2,701
Interest Income Recognized	$ 24	$ 26

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 1,660	$ 2,905
Loans Not Past Due		400,384	406,168
Risk rated loans		402,044	409,073
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,230	1,647
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		212	526
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	218	732
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		42,045	49,109
Risk rated loans		42,045	49,109
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		355	5
Loans Not Past Due		92,245	91,401
Risk rated loans		92,600	91,406
Commercial and Industrial [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		353	5
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	2
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		87	200
Loans Not Past Due		24,106	24,182
Risk rated loans		24,193	24,382
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		39	149
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		3	40
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	45	11
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		168	73
Loans Not Past Due		136,879	139,380
Risk rated loans		137,047	139,453
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		96
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	72	73
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		9,294	8,843
Risk rated loans		9,294	8,843
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,050	2,627
Loans Not Past Due		95,815	93,253
Risk rated loans		96,865	95,880
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		742	1,493
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		209	486
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	$ 99	$ 648
[1]	Includes nonaccrual loans.

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,584	$ 1,532
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	389	393
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	1
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	50	62
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	119	123
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,025	$ 954

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic Earnings Per Share
Net income available to common shareholders	$ 1,637	$ 1,658
Weighted average common shares outstanding	3,618,328	3,615,005
Basic earnings per share	$ 0.45	$ 0.46
Diluted Earnings Per Share
Net income available to common shareholders	$ 1,637	$ 1,658
Weighted average common shares outstanding	3,618,328	3,615,005
Plus dilutive stock options and restricted stock units	15,720	13,944
Weighted average common shares outstanding and potentially dilutive shares	3,634,048	3,628,949
Diluted earnings per share	$ 0.45	$ 0.46

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Dilutive stock options excluded in calculation of earnings per share	15,000	0

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Equity securities at fair value	$ 3,034	$ 2,847
Securities available for sale	168,254	166,602
Loans to other financial institutions	28,119	20,644
Liabilities
Noninterest-bearing deposits	155,047	153,542
Interest-bearing deposits	409,404	423,473
Federal funds purchased		4,800
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets
Cash and due from banks	16,296	19,690
Equity securities at fair value	2,071	1,961
Significant Other Observable Inputs (Level 2) [Member]
Assets
Securities available for sale	159,659	158,104
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	1,570	856
Loans to other financial institutions	28,119	20,644
Accrued interest receivable	2,787	2,267
Liabilities
Noninterest-bearing deposits	155,047	153,542
Interest-bearing deposits	408,699	422,381
Federal funds purchased		4,800
Federal Home Loan Bank advances	20,244	5,241
Accrued interest payable	176	210
Significant Unobservable Inputs (Level 3) [Member]
Assets
Equity securities at fair value	963	886
Securities available for sale	8,595	8,498
Loans, net	388,091	399,091
Carrying Amount [Member]
Assets
Cash and due from banks	16,296	19,690
Equity securities at fair value	3,034	2,847
Securities available for sale	168,254	166,602
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	1,524	831
Loans to other financial institutions	28,119	20,644
Loans, net	397,314	404,400
Accrued interest receivable	2,787	2,267
Liabilities
Noninterest-bearing deposits	155,047	153,542
Interest-bearing deposits	409,404	423,473
Federal funds purchased		4,800
Federal Home Loan Bank advances	20,225	5,233
Accrued interest payable	176	210
Estimated Fair Value [Member]
Assets
Cash and due from banks	16,296	19,690
Equity securities at fair value	3,034	2,847
Securities available for sale	168,254	166,602
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	1,570	856
Loans to other financial institutions	28,119	20,644
Loans, net	388,091	399,091
Accrued interest receivable	2,787	2,267
Liabilities
Noninterest-bearing deposits	155,047	153,542
Interest-bearing deposits	408,699	422,381
Federal funds purchased		4,800
Federal Home Loan Bank advances	20,244	5,241
Accrued interest payable	$ 176	$ 210

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		$ 168,254	$ 166,602
U.S. Government and Federal Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		33,764	33,529
U.S. Treasury Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		1,959	1,947
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	[1]	3,034	2,847
State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		103,887	103,928
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		23,024	21,575
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		5,117	5,102
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		3	21
Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		500	500
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		159,659	158,104
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		8,595	8,498
Fair Value Measured - Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		168,254	166,602
Fair Value Measured - Recurring Basis [Member] | U.S. Government and Federal Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		33,764	33,529
Fair Value Measured - Recurring Basis [Member] | U.S. Treasury Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		1,959	1,947
Fair Value Measured - Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities Held at Fair Value		3,034	2,847
Fair Value Measured - Recurring Basis [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		103,887	103,928
Fair Value Measured - Recurring Basis [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		23,024	21,575
Fair Value Measured - Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		5,117	5,102
Fair Value Measured - Recurring Basis [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		3	21
Fair Value Measured - Recurring Basis [Member] | Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		500	500
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		159,659	158,104
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Federal Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		33,764	33,529
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		1,959	1,947
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		95,792	95,930
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		23,024	21,575
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		5,117	5,102
Fair Value Measured - Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		3	21
Fair Value Measured - Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities Held at Fair Value		2,071	1,961
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		8,595	8,498
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities Held at Fair Value		963	886
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		8,095	7,998
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		$ 500	$ 500
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Total unrealized gains/(losses) included in other comprehensive income	$ 206
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities Held at Fair Value [Member]
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Balance at the beginning of year	886
Reclassification due to implementation of ASU 2016-01		$ 1,000
Total realized and unrealized gains included in noninterest income	77
Balance at the end of year	963	1,000
Fair Value Measured - Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment Securities Available For Sale [Member]
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Balance at the beginning of year	8,498	13,398
Reclassification due to implementation of ASU 2016-01		(1,000)
Total realized and unrealized gains included in noninterest income	97	(230)
Balance at the end of year	$ 8,595	$ 12,168

FAIR VALUE MEASUREMENTS (Deta_3

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value - Non-Recurring Basis [Member] - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 3,773	$ 4,024
Other real estate owned, net	121	102
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	3,773	4,024
Other real estate owned, net	$ 121	$ 102

FAIR VALUE MEASUREMENTS (Deta_4

FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 206

BUSINESS COMBINATION (Details N

BUSINESS COMBINATION (Details Narrative) - County Bank Corp [Member] $ in Thousands	Dec. 31, 2018USD ($)
Business combination, total assets	$ 620,000
Business combination, total loans	360,000
Business combination, total deposits	$ 540,000

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noninterest income from contracts with customers within the scope of ASC 606	$ 1,146	$ 1,170
Noninterest income within the scope of other GAAP topics	613	478
Total noninterest income	1,758	1,648
Service charges and fees on deposit accounts [Member]
Noninterest income from contracts with customers within the scope of ASC 606	628	622
Interchange income [Member]
Noninterest income from contracts with customers within the scope of ASC 606	405	433
Investment commission income [Member]
Noninterest income from contracts with customers within the scope of ASC 606	50	50
Other charges and fees for customer services [Member]
Noninterest income from contracts with customers within the scope of ASC 606	$ 63	$ 65