Macatawa Bank (MCBC) 10-K16 Feb 232022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Feb. 16, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Document Transition Report	false
Entity File Number	000-25927
Entity Registrant Name	MACATAWA BANK CORP
Entity Central Index Key	0001053584
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-3391345
Entity Address, Address Line One	10753 Macatawa Drive
Entity Address, City or Town	Holland
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49424
City Area Code	616
Local Phone Number	820-1444
Title of 12(b) Security	Common stock
Trading Symbol	MCBC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 277,058,000
Entity Common Stock, Shares Outstanding		34,298,640
Auditor Firm ID	243
Auditor Name	BDO USA, LLP
Auditor Location	Grand Rapids, Michigan

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 51,215	$ 23,669
Federal funds sold and other short-term investments	703,955	1,128,119
Cash and cash equivalents	755,170	1,151,788
Securities available for sale, at fair value	499,257	416,063
Securities held to maturity (fair value 2022 - $332,650 and 2021 - $139,272)	348,765	137,003
Federal Home Loan Bank (FHLB) stock	10,211	11,558
Loans held for sale, at fair value	215	1,407
Total loans	1,177,748	1,108,993
Allowance for loan losses	(15,285)	(15,889)
Net loans	1,162,463	1,093,104
Premises and equipment - net	40,306	41,773
Accrued interest receivable	7,606	4,088
Bank-owned life insurance (BOLI)	53,345	52,468
Other real estate owned - net	2,343	2,343
Net deferred tax asset	9,712	2,163
Other assets	17,526	14,993
Total assets	2,906,919	2,928,751
Deposits
Noninterest-bearing	834,879	886,115
Interest-bearing	1,780,263	1,691,843
Total deposits	2,615,142	2,577,958
Other borrowed funds	30,000	85,000
Long-term debt	0	0
Accrued expenses and other liabilities	14,739	11,788
Total liabilities	2,659,881	2,674,746
Commitments and Contingencies
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 34,298,640 and 34,259,945 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively	219,578	219,082
Retained earnings	59,036	35,220
Accumulated other comprehensive loss	(31,576)	(297)
Total shareholders' equity	247,038	254,005
Total liabilities and shareholders' equity	$ 2,906,919	$ 2,928,751

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Securities held to maturity fair value	$ 332,650	$ 139,272
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	34,298,640	34,259,945
Common stock, shares outstanding (in shares)	34,298,640	34,259,945

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Interest income
Loans, including fees	$ 47,176	$ 50,664
Securities
Taxable	11,333	3,283
Tax-exempt	2,803	3,056
FHLB Stock	199	211
Federal funds sold and other short-term investments	13,395	1,420
Total interest income	74,906	58,634
Interest expense
Deposits	3,773	915
Other borrowings	987	1,331
Long-term debt	0	319
Total interest expense	4,760	2,565
Net interest income	70,146	56,069
Provision for loan losses	(1,125)	(2,050)
Net interest income after provision for loan losses	71,271	58,119
Noninterest income
Service charges and fees	4,769	4,446
Net gains on mortgage loans	706	4,691
Trust fees	4,143	4,331
ATM and debit card fees	6,768	6,505
BOLI income	878	1,033
Other	2,755	2,689
Total noninterest income	20,019	23,695
Noninterest expense
Salaries and benefits	26,194	25,216
Occupancy of premises	4,200	3,986
Furniture and equipment	4,008	3,940
Legal and professional	961	1,042
Marketing and promotion	803	723
Data processing	3,756	3,456
FDIC assessment	789	749
Interchange and other card expense	1,586	1,517
Bond and D&O Insurance	518	448
Other	5,411	5,013
Total noninterest expenses	48,226	46,090
Income before income tax	43,064	35,724
Income tax expense	8,333	6,710
Net income	$ 34,731	$ 29,014
Basic earnings per common share (in dollars per share)	$ 1.01	$ 0.85
Diluted earnings per common share (in dollars per share)	1.01	0.85
Cash dividends per common share (in dollars per share)	$ 0.32	$ 0.32

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 34,731	$ 29,014
Unrealized gains (losses):
Net change in unrealized losses on debt securities available for sale	(39,686)	(5,710)
Net unrealized gain at time of transfer on securities transferred to held-to-maturity	113	0
Amortization of net unrealized gains on securities transferred to held-to-maturity	(21)	0
Tax effect	8,315	1,199
Net change in unrealized gains (losses) on securities available for sale, net of tax	(31,279)	(4,511)
Other comprehensive loss, net of tax	(31,279)	(4,511)
Comprehensive income	$ 3,452	$ 24,503

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2020	$ 218,528	$ 17,101	$ 4,214	$ 239,843
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	29,014	0	29,014
Cash dividends	0	(10,895)	0	(10,895)
Repurchase of shares for taxes withheld on vested restricted stock	(130)	0	0	(130)
Net change in unrealized gain (loss) on securities available for sale and amortization, net of tax	0	0	(4,511)	(4,511)
Stock compensation expense	684	0	0	684
Balance at Dec. 31, 2021	219,082	35,220	(297)	254,005
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	34,731	0	34,731
Cash dividends	0	(10,915)	0	(10,915)
Repurchase of shares for taxes withheld on vested restricted stock	(207)	0	0	(207)
Net change in unrealized gain (loss) on securities available for sale and amortization, net of tax	0	0	(31,279)	(31,279)
Stock compensation expense	703	0	0	703
Balance at Dec. 31, 2022	$ 219,578	$ 59,036	$ (31,576)	$ 247,038

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend (in dollars per share)	$ 0.32	$ 0.32
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares)	19,061	14,787

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income	$ 34,731	$ 29,014
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization and accretion	1,558	2,724
Stock compensation expense	703	684
Provision for loan losses	(1,125)	(2,050)
Origination of loans for sale	(26,236)	(124,287)
Proceeds from sales of loans originated for sale	28,134	132,993
Net gains on mortgage loans	(706)	(4,691)
Write-down of other real estate	0	4
Net (gain) loss on sales of other real estate	(47)	20
Deferred income tax expense	766	1,095
Change in accrued interest receivable and other assets	(6,051)	3,640
Earnings in bank-owned life insurance	(878)	(1,033)
Change in accrued expenses and other liabilities	3,951	(2,189)
Net cash from operating activities	34,800	35,924
Cash flows from investing activities
Loan originations and payments, net	(68,234)	320,869
Purchases of securities available for sale	(285,572)	(263,766)
Purchases of securities held to maturity	(166,566)	(83,316)
Purchase of bank-owned life insurance	0	(10,000)
Proceeds from:
Maturities and calls of securities available for sale	24,450	48,673
Maturities and calls of securities held to maturity	41,873	16,311
Principal paydowns on securities available for sale	14,918	31,075
Principal paydowns on securities held to maturity	36,053	9,470
Sales of other real estate	47	170
Payout of bank-owned insurance claim	0	908
Redemption of FHLB stock	1,347	0
Additions to premises and equipment	(796)	(993)
Net cash from investing activities	(402,480)	69,401
Cash flows from financing activities
Change in deposits	37,184	279,371
Repayments and maturities of other borrowed funds	(80,000)	(30,619)
Proceeds from other borrowed funds	25,000	25,000
Cash dividends paid	(10,915)	(10,895)
Repurchase of shares for taxes withheld on vested restricted stock	(207)	(130)
Net cash from financing activities	(28,938)	262,727
Net change in cash and cash equivalents	(396,618)	368,052
Cash and cash equivalents at beginning of period	1,151,788	783,736
Cash and cash equivalents at end of period	755,170	1,151,788
Supplemental cash flow information
Interest paid	4,717	2,735
Income taxes paid	6,500	5,650
Supplemental noncash disclosures:
Transfer of securities from available for sale to held to maturity	123,469	0
Security settlement	$ 0	$ 1,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company previously owned all of the common securities of Macatawa Statutory Trust II. This was a grantor trust that issued trust preferred securities and is discussed in Note 11. Under generally accepted accounting principles, this trust is not consolidated into the financial statements of the Company. On July 7, 2021, the Company redeemed the $20.0 million outstanding trust preferred securities and $619,000 common securities associated with Macatawa Statutory Trust II. Recent Events: The Bank was a participating lender in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). PPP loans were forgivable, in whole or in part, if the proceeds were used for payroll and other permitted purposes in accordance with the requirements of the PPP. Upon SBA forgiveness, unamortized fees were then recognized into interest incom e. In 2021: • The Bank originated 1,000 PPP loans totaling $128.1 million in principal. • Fees generated totaled $5.6 million. • 1,722 PPP loans totaling $318.4 million were forgiven. • Total net fees of $ million were recognized. In 2022: • 251 PPP loans totaling $43.2 million were forgiven. • Total net fees of $1.3 million were recognized. A s of December 31, 2022, no PPP loans remain outstanding NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of Estimates Concentration of Credit Risk Cash and Cash Equivalents Cash Flow Reporting Restrictions on Cash Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2022 and 2021. Federal Home Loan Bank (FHLB) Stock NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Loans Held for Sale Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level-yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2022 and 2021, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Transfers of Financial Assets NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Foreclosed Assets Premises and Equipment Bank-Owned Life Insurance (BOLI): Long-term Assets Loan Commitments and Related Financial Instruments Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and mortgage backed security and forward commitment derivatives are included in net gains on mortgage loans. The fair value of interest rate lock commitments was $0 and $25,000 at December 31, 2022 and 2021, respectively. Revenue From Contracts With Customers Revenue from Contracts with Customers The Company’s primary sources of revenue are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally satisfies its performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis (generally monthly) or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Interest Income: The Company’s largest source of revenue is interest income which is primarily recognized on an accrual basis based on contractual terms written into loans and investment contracts. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Noninterest Revenue: The Company derives the majority of its noninterest revenue from: (1) service charges for deposit related services, (2) gains related to mortgage loan sales, (3) trust fees and (4) debit and credit card interchange income. Most of these services are transaction based and revenue is recognized as the related service is provided. Derivatives Income Taxes The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Earnings Per Common Share Comprehensive Income Loss Contingencies Stock Splits and Dividends Dividend Restriction Fair Values of Financial Instruments NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Segment Reporting Reclassifications Accounting Standards Updates FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. This ASU expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for credit losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by year of origination. The Company selected a software vendor for applying this new ASU for Current Expected Credit Losses (“CECL”), began implementation of the software in the second quarter of 2018, completed integration during the third quarter of 2018 and ran parallel computations with both systems using the current GAAP incurred loss model in the fourth quarter of 2018. The Company went live with this software beginning in January 2019 for its monthly incurred loss computations and began modeling the new current expected credit loss model assumptions to the allowance for loan losses computation. In the periods since, the Company modeled the various methods prescribed in the ASU against the Company’s identified loan segments, ultimately determining that the weighted average remaining life method was the appropriate method for the Company to use. The Company adopted the standard effective January 1, 2023 and estimates that the impact of adoption will result in an allowance increase of $1.2 million to $2.2 million, due primarily to the forward-looking economic forecast, which presents the most variability within this range. The required liability for unfunded commitments at January 1, 2023 is estimated at approximately $60,000. The resulting impact will be a decrease to the retained earnings account on the Company’s Consolidated Balance Sheet equal to the after-tax impact of the increase in allowance balances, with the tax impact portion being recorded as a deferred tax asset on the Company’s Consolidated Balance Sheet. The Company did not identify any available-for-sale debt securities requiring allowances to be established upon adoption of the standard on January 1, 2023. In addition, the Company evaluated its municipal bond securities and U.S. Treasury securities held to maturity on a pooled basis, determining that the securities in each pool share similar risks. The Company determined that on January 1, 2023, the municipal bond securities have a remote risk of loss and the government backed U.S. Treasury securities have a zero risk of loss. . NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ASU No. 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. ASU No. 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

SECURITIES

SECURITIES	12 Months Ended
SECURITIES	Dec. 31, 2022
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 Available for Sale: U.S. Treasury and federal agency securities $ 240,921 $ 23 $ (16,310 ) $ 224,634 U.S. Agency MBS and CMOs 128,165 — (14,347 ) 113,818 Tax-exempt state and municipal bonds 37,198 10 (498 ) 36,710 Taxable state and municipal bonds 120,647 49 (8,525 ) 112,171 Corporate bonds and other debt securities 12,387 — (463 ) 11,924 $ 539,318 $ 82 $ (40,143 ) $ 499,257 Held to Maturity U.S. Treasury $ 251,307 $ — $ (13,677 ) 237,630 Tax-exempt state and municipal bonds 97,458 415 (2,853 ) 95,020 $ 348,765 $ 415 $ (16,530 ) $ 332,650 December 31, 2021 Available for Sale: U.S. Treasury and federal agency securities $ 208,153 $ 215 $ (1,523 ) $ 206,845 U.S. Agency MBS and CMOs 87,343 416 (962 ) 86,797 Tax-exempt state and municipal bonds 36,298 1,258 — 37,556 Taxable state and municipal bonds 79,394 812 (645 ) 79,561 Corporate bonds and other debt securities 5,251 63 (10 ) 5,304 $ 416,439 $ 2,764 $ (3,140 ) $ 416,063 Held to Maturity Tax-exempt state and municipal bonds $ 137,003 $ 2,484 $ (215 ) $ 139,272 There were no sales of securities available for sale during the years ended December 31, 2022 and 2021. Contractual maturities of debt securities at December 31, 2022 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 29,311 $ 28,935 $ 11,372 $ 11,293 Due from one to five years 298,700 283,518 359,411 339,059 Due from five to ten years 20,754 20,197 41,780 36,424 Due after ten years — — 126,755 112,481 $ 348,765 $ 332,650 $ 539,318 $ 499,257 NOTE 2 – SECURITIES Securities with unrealized losses at December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2022 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale: U.S. Treasury and federal agency securities $ 144,796 $ (6,230 ) $ 66,008 $ (10,080 ) $ 210,804 $ (16,310 ) U.S. Agency MBS and CMOs 64,427 (4,789 ) 41,340 (9,558 ) 105,767 (14,347 ) Tax-exempt state and municipal bonds 31,337 (498 ) — — 31,337 (498 ) Taxable state and municipal bonds 71,165 (3,337 ) 33,452 (5,188 ) 104,617 (8,525 ) Corporate bonds and other debt securities 10,668 (357 ) 1,256 (106 ) 11,924 (463 ) $ 322,393 $ (15,211 ) $ 142,056 $ (24,932 ) $ 464,449 $ (40,143 ) Held to Maturity: U.S. Treasury $ 237,630 $ (13,677 ) $ — $ — $ 237,630 $ (13,677 ) Tax-exempt state and municipal bonds 57,671 (2,314 ) 21,721 (539 ) 79,392 (2,853 ) $ 295,301 $ (15,991 ) $ 21,721 $ (539 ) $ 317,022 $ (16,530 ) Less than 12 Months 12 Months or More Total December 31, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale: U.S. Treasury and federal agency securities $ 77,066 $ (955 ) $ 18,432 $ (568 ) $ 95,498 $ (1,523 ) U.S. Agency MBS and CMOs 52,254 (830 ) 4,190 (132 ) 56,444 (962 ) Tax-exempt state and municipal bonds — — — — — — Taxable state and municipal bonds 37,648 (638 ) 498 (7 ) 38,146 (645 ) Corporate bonds and other debt securities 1,352 (10 ) — — 1,352 (10 ) $ 168,320 $ (2,433 ) $ 23,120 $ (707 ) $ 191,440 $ (3,140 ) Held to Maturity: Tax-exempt state and municipal bonds $ 61,166 $ (215 ) $ — $ — $ 61,166 $ (215 ) Other-Than-Temporary-Impairment Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At December 31, 2022, 444 securities available for sale with fair values totaling $464.4 million had unrealized losses totaling $40.1 million. At December 31, 2021, 127 securities available for sale with fair values totaling $191.4 million had unrealized losses totaling $3.1 million. At December 31, 2022, 76 securities held to maturity with fair values totaling $317.0 million had unrealized losses totaling $16.5 million. At December 31, 2021, 9 securities held to maturity with fair values totaling $61.2 million had unrealized losses totaling $215,000. Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities. In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during 2022 and 2021. On January 1, 2022, the Company transferred all of its US Treasury securities held at that time from available for sale to held to maturity. These securities had an amortized cost of $123.5 million and an unrealized gain of $113,000 at the date of transfer. The transfer was made at fair value, with the unrealized gain becoming part of purchase premium which will be amortized over the remaining life of the securities. The other comprehensive income component is separated from the remaining available for sale securities and is amortized over the remaining life of the securities transferred. Management has the ability and intent to hold these securities until they mature, at which time the Company will receive full value for the securities. NOTE 2 – SECURITIES Securities with a carrying value of approximately $3.5 million and $4.9 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2022 and 2021, respectively. The Company also has an investment in a fund that invests in projects qualifying for Community Reinvestment Act credit. As an equity investment, accounting standards require this $1.5 million investment be carried at fair value and reported in other assets at December 31, 2022 and 2021.

LOANS

LOANS	12 Months Ended
LOANS	Dec. 31, 2022
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows at year end (dollars in thousands): 2022 2021 Commercial and industrial Commercial and industrial, excluding PPP $ 441,716 $ 378,318 PPP — 41,939 Total commercial and industrial 441,716 420,257 Commercial real estate: Residential developed 7,234 4,862 Unsecured to residential developers — 5,000 Vacant and unimproved 36,270 36,240 Commercial development 103 171 Residential improved 112,791 100,077 Commercial improved 259,281 259,039 Manufacturing and industrial 121,924 110,712 Total commercial real estate 537,603 516,101 Consumer Residential mortgage 139,148 117,800 Unsecured 121 210 Home equity 56,321 51,269 Other secured 2,839 3,356 Total consumer 198,429 172,635 Total loans 1,177,748 1,108,993 Allowance for loan losses (15,285 ) (15,889 ) $ 1,162,463 $ 1,093,104 The totals above are shown net of deferred fees and costs. Deferred fees on loans totaled $1.3 million and $2.6 million at December 31, 2022 and 2021, respectively. Deferred costs on loans totaled $1.4 million and $1.3 million at December 31, 2022 and 2021, respectively. NOTE 3 – LOANS The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Charge-offs (38 ) — (126 ) — (164 ) Recoveries 191 300 194 — 685 Provision for loan losses 267 (1,171 ) (243 ) 22 (1,125 ) Ending Balance $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 2021 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,632 $ 7,999 $ 2,758 $ 19 $ 17,408 Charge-offs — — (124 ) — (124 ) Recoveries 331 208 116 — 655 Provision for loan losses (1,787 ) (156 ) (117 ) 10 (2,050 ) Ending Balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 55 $ 20 $ 220 $ — $ 295 Collectively evaluated for impairment 5,541 7,160 2,238 51 14,990 Total ending allowance balance $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 Loans: Individually reviewed for impairment $ 3,603 $ 518 $ 2,886 $ — $ 7,007 Collectively evaluated for impairment 438,113 537,085 195,543 — 1,170,741 Total ending loans balance $ 441,716 $ 537,603 $ 198,429 $ — $ 1,177,748 December 31, 2021 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 303 $ 24 $ 238 $ — $ 565 Collectively evaluated for impairment 4,873 8,027 2,395 29 15,324 Total ending allowance balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Loans: Individually reviewed for impairment $ 3,375 $ 1,127 $ 3,024 $ — $ 7,526 Collectively evaluated for impairment 416,882 514,974 169,611 — 1,101,467 Total ending loans balance $ 420,257 $ 516,101 $ 172,635 $ — $ 1,108,993 NOTE 3 – LOANS (Continued) The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2022 (dollars in thousands): December 31, 2022 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,278 $ 3,278 $ — Commercial real estate: Residential improved 31 31 — 31 31 — Consumer — — — Total with no related allowance recorded $ 3,309 $ 3,309 $ — With an allowance recorded: Commercial and industrial $ 325 $ 325 $ 55 Commercial real estate: Commercial improved 307 307 9 Manufacturing and industrial 180 180 11 487 487 20 Consumer: Residential mortgage 2,653 2,653 202 Unsecured 29 29 2 Home equity 204 204 16 2,886 2,886 220 Total with an allowance recorded $ 3,698 $ 3,698 $ 295 Total $ 7,007 $ 7,007 $ 295 NOTE 3 – LOANS (Continued) The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2021 (dollars in thousands): December 31, 2021 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 669 $ 669 $ — Commercial real estate: Residential improved 41 41 — Commercial improved 577 577 — 618 618 — Consumer — — — Total with no related allowance recorded $ 1,287 $ 1,287 $ — With an allowance recorded: Commercial and industrial $ 2,706 $ 2,706 $ 303 Commercial real estate: Commercial improved 318 318 14 Manufacturing and industrial 191 191 10 509 509 24 Consumer: Residential mortgage 2,726 2,726 214 Unsecured 64 64 5 Home equity 234 234 19 Other secured — — — 3,024 3,024 238 Total with an allowance recorded $ 6,239 $ 6,239 $ 565 Total $ 7,526 $ 7,526 $ 565 NOTE 3 – LOANS The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Average of impaired loans during the period: Commercial and industrial $ 2,703 $ 1,927 Commercial real estate: Residential developed — 11 Residential improved 42 45 Commercial improved 396 1,605 Manufacturing and industrial 185 148 Consumer 2,882 2,731 Interest income recognized during impairment: Commercial and industrial 423 429 Commercial real estate 39 91 Consumer 118 120 Cash-basis interest income recognized Commercial and industrial 415 437 Commercial real estate 39 91 Consumer 122 123 NOTE 3 – LOANS Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate — — Consumer: Residential mortgage 78 — 78 — Total $ 78 $ — December 31, 2021 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 5 — Commercial improved — — 5 — Consumer: Residential mortgage 86 — 86 — Total $ 91 $ — NOTE 3 – LOANS The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 by class of loans (dollars in thousands): December 31, 2022 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 441,716 $ 441,716 Commercial real estate: Residential developed — — — 7,234 7,234 Unsecured to residential developers — — — — — Vacant and unimproved — — — 36,270 36,270 Commercial development — — — 103 103 Residential improved — — — 112,791 112,791 Commercial improved 71 — 71 259,210 259,281 Manufacturing and industrial — — — 121,924 121,924 71 — 71 537,532 537,603 Consumer: Residential mortgage — 77 77 139,071 139,148 Unsecured — — — 121 121 Home equity 24 — 24 56,297 56,321 Other secured — — — 2,839 2,839 24 77 101 198,328 198,429 Total $ 95 $ 77 $ 172 $ 1,177,576 $ 1,177,748 The following table presents the aging of the recorded investment in past due loans as of December 31, 2021 by class of loans (dollars in thousands): December 31, 2021 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 39 $ 1 $ 40 $ 420,217 $ 420,257 Commercial real estate: Residential developed — — — 4,862 4,862 Unsecured to residential developers — — — 5,000 5,000 Vacant and unimproved — — — 36,240 36,240 Commercial development — — — 171 171 Residential improved — 5 5 100,072 100,077 Commercial improved — — — 259,039 259,039 Manufacturing and industrial — — — 110,712 110,712 — 5 5 516,096 516,101 Consumer: Residential mortgage — 84 84 117,716 117,800 Unsecured — — — 210 210 Home equity — — — 51,269 51,269 Other secured — — — 3,356 3,356 — 84 84 172,551 172,635 Total $ 39 $ 90 $ 129 $ 1,108,864 $ 1,108,993 NOTE 3 – LOANS The Company had allocated $295,000 and $565,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of December 31, 2022 and 2021, respectively. These loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. Based upon regulatory guidance issued in 2014, the Company has determined that in situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding TDRs as of December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 4 $ 3,604 4 $ 3,375 Commercial real estate 3 517 6 1,127 Consumer 32 2,886 44 3,024 39 $ 7,007 54 $ 7,526 NOTE 3 – LOANS The following table presents information related to accruing TDRs as of December 31, 2022 and 2021. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Accruing TDR - nonaccrual at restructuring $ — $ — Accruing TDR - accruing at restructuring 3,728 4,553 Accruing TDR - upgraded to accruing after six consecutive payments 3,279 2,968 $ 7,007 $ 7,521 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Number of Loans Pre-TDR Balance Writedown Upon TDR Number of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial — $ — $ — — $ — $ — Commercial real estate — — — — — — Consumer 3 449 — — — — 3 $ 449 $ — — $ — $ — According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. Payment defaults on TDRs have been minimal and during the twelve months ended December 31, 2022 and 2021 the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of restructuring were not material. NOTE 3 – LOANS Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss NOTE 3 – LOANS At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2022 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 15,040 $ 21,451 $ 175,762 $ 220,987 $ 8,309 $ 167 $ — $ — $ 441,716 Commercial real estate: Residential developed — — — 7,234 — — — — 7,234 Unsecured to residential developers — — — — — — — — — Vacant and unimproved — 1,231 18,406 16,633 — — — — 36,270 Commercial development — — 103 — — — — — 103 Residential improved — — 25,585 87,176 30 — — — 112,791 Commercial improved — 17,802 83,769 151,641 5,762 307 — — 259,281 Manufacturing & industrial — 11,422 32,977 73,566 1,646 2,313 — — 121,924 $ 15,040 $ 51,906 $ 336,602 $ 557,237 $ 15,747 $ 2,787 $ — $ — $ 979,319 December 31, 2021 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 56,979 $ 19,300 $ 110,877 $ 227,087 $ 2,700 $ 3,314 $ — $ — $ 420,257 Commercial real estate: Residential developed — — — 4,862 — — — — 4,862 Unsecured to residential developers — — — 5,000 — — — — 5,000 Vacant and unimproved — 1,763 13,492 20,985 — — — — 36,240 Commercial development — — 171 — — — — — 171 Residential improved — — 24,450 75,503 119 — 5 — 100,077 Commercial improved — 15,115 71,211 165,268 7,127 318 — — 259,039 Manufacturing & industrial — — 41,757 65,601 3,354 — — — 110,712 $ 56,979 $ 36,178 $ 261,958 $ 564,306 $ 13,300 $ 3,632 $ 5 $ — $ 936,358 Commercial loans rated a 6, 7 or 8 per the Company’s internal risk rating system are considered substandard, doubtful or loss, respectively. Commercial loans classified as substandard or worse were as follows at year-end (dollars in thousands): 2022 2021 Not classified as impaired $ 2,422 $ 233 Classified as impaired 365 3,404 Total commercial loans classified substandard or worse $ 2,787 $ 3,637 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 139,071 $ 121 $ 56,321 $ 2,839 Nonperforming 77 — — — Total $ 139,148 $ 121 $ 56,321 $ 2,839 December 31, 2021 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 117,716 $ 210 $ 51,269 $ 3,356 Nonperforming 84 — — — Total $ 117,800 $ 210 $ 51,269 $ 3,356

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	12 Months Ended
OTHER REAL ESTATE OWNED	Dec. 31, 2022
OTHER REAL ESTATE OWNED [Abstract]
OTHER REAL ESTATE OWNED	NOTE 4 – OTHER REAL ESTATE OWNED Other real estate owned was as follows (dollars in thousands): 2022 2021 Beginning balance $ 2,369 $ 2,731 Additions, transfers from loans — — Proceeds from sales of other real estate owned and repossessed assets (47 ) (170 ) Valuation allowance reversal upon sale (26 ) (172 ) Gain (loss) on sales of other real estate owned and repossessed assets 47 (20 ) 2,343 2,369 Less: valuation allowance — (26 ) Ending balance $ 2,343 $ 2,343 Activity in the valuation allowance was as follows (dollars in thousands): 2022 2021 Beginning balance $ 26 $ 194 Additions charged to expense — 4 Reversals upon sale (26 ) (172 ) Ending balance $ — $ 26 At December 31, 2022, the balance of other real estate owned included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2022, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $0. On January 30, 2023, the Company sold the remaining real estate owned property at a small gain, bringing the balance of other real estate owned to $0.

FAIR VALUE

FAIR VALUE	12 Months Ended
FAIR VALUE	Dec. 31, 2022
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures Level 1 Level 2 Level 3 Investment Securities: Loans Held for Sale: Impaired Loans NOTE 5 – FAIR VALUE Interest Rate Swaps: Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Available for sale securities U.S. Treasury and federal agency securities $ 224,634 $ — $ 224,634 $ — U.S. Agency MBS and CMOs 113,818 — 113,818 — Tax-exempt state and municipal bonds 36,710 — 36,710 — Taxable state and municipal bonds 112,171 — 112,171 — Corporate bonds and other debt securities 11,924 — 11,924 — Other equity securities 1,304 — 1,304 — Loans held for sale 215 — 215 — Interest rate swaps 6,463 — 6,463 — Total assets measured at fair value on recurring basis $ 507,239 $ — $ 507,239 $ — Interest rate swaps (6,463 ) — (6,463 ) — Total liabilities measured at fair value on recurring basis $ (6,463 ) $ — $ (6,463 ) $ — December 31, 2021 Available for sale securities U.S. Treasury and federal agency securities $ 206,845 $ — $ 206,845 $ — U.S. Agency MBS and CMOs 86,797 — 86,797 — Tax-exempt state and municipal bonds 37,556 — 37,556 — Taxable state and municipal bonds 79,561 — 79,561 — Corporate bonds and other debt securities 5,304 — 5,304 — Other equity securities 1,470 — 1,470 — Loans held for sale 1,407 — 1,407 — Interest rate swaps 3,277 — 3,277 — Total assets measured at fair value on recurring basis $ 422,217 $ — $ 422,217 $ — Interest rate swaps (3,277 ) — (3,277 ) — Total liabilities measured at fair value on recurring basis $ (3,277 ) $ — $ (3,277 ) $ — NOTE 5 – FAIR VALUE (Continued) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Impaired loans $ 328 $ — $ — $ 328 December 31, 2021 Impaired loans $ 2,903 $ — $ — $ 2,903 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2022 Impaired loans $ 328 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2021 Impaired loans $ 2,903 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0 NOTE 5 – FAIR VALUE (Continued) The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). 2022 2021 Level in Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 51,215 $ 51,215 $ 23,669 $ 23,669 Federal funds sold and other short-term investments Level 1 703,955 703,955 1,128,119 1,128,119 Securities held to maturity - U.S. Treasury Level 2 251,307 237,630 — — Securities held to maturity - tax-exempt and muni Level 3 97,458 95,020 137,003 139,272 FHLB stock Level 3 10,211 10,211 11,558 11,558 Loans, net Level 2 1,162,135 1,131,387 1,090,201 1,106,324 Bank owned life insurance Level 3 53,345 53,345 52,468 52,468 Accrued interest receivable Level 2 7,606 7,606 4,088 4,088 Financial liabilities Deposits Level 2 (2,615,142 ) (2,615,860 ) (2,577,958 ) (2,577,885 ) Other borrowed funds Level 2 (30,000 ) (28,666 ) (85,000 ) (86,322 ) Accrued interest payable Level 2 (114 ) (114 ) (72 ) (72 ) Off-balance sheet credit-related items Loan commitments — — — — The methods and assumptions used to estimate fair value are described as follows. Carrying amount is the estimated fair value for cash and cash equivalents, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans, interest-bearing time deposits in other financial institutions and deposits, and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability, so fair value approximates its cost. The fair value of off-balance sheet credit-related items is not significant. The estimated fair values of financial instruments disclosed above as of December 31, 2022 and 2021 follow the guidance in ASU 2016-01 which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments incorporating discounts for credit, liquidity and marketability factors.

DERIVATIVES

DERIVATIVES	12 Months Ended
DERIVATIVES	Dec. 31, 2022
DERIVATIVES [Abstract]
DERIVATIVES	NOTE 6 – DERIVATIVES Derivatives not designated as hedges are not speculative and result from a service provided to certain commercial loan borrowers. The Company executes interest rate swaps with commercial banking customers desiring longer-term fixed rate loans, while simultaneously entering into interest rate swaps with a correspondent bank to offset the impact of the interest rate swaps with the commercial banking customers. The net result is the desired floating rate loans and a minimization of the risk exposure of the interest rate swap transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the commercial banking customer interest rate swaps and the offsetting interest rate swaps with the correspondent bank are recognized directly to earnings. Since they offset perfectly, there is no net impact to earnings. The fair value of derivative instruments as of December 31, 2022 and 2021 are reflected in the following table (dollars in thousands): Notional Amount Balance Sheet Location Fair Value December 31, 2022 Derivative assets Interest rate swaps $ 62,661 Other Assets $ 6,463 Derivative liabilities Interest rate swaps 62,661 Other Liabilities 6,463 Notional Amount Balance Sheet Location Fair Value December 31, 2021 Derivative assets Interest rate swaps $ 70,356 Other Assets $ 3,277 Derivative liabilities Interest rate swaps 70,356 Other Liabilities 3,277 The fair value of interest rate swaps in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $6.5 million and $3.3 million as of December 31, 2022 and 2021, respectively. The Bank has a master netting arrangement with the correspondent bank and has the right to offset, however it has elected to present the assets and liabilities gross. The Bank is required to pledge collateral to the correspondent bank equal to or in excess of the net liability position. The Bank’s derivative liability with the correspondent bank was $0 and $1.0 milllion at December 31, 2022 and 2021, respectively. Securities pledged as collateral totaling $1.7 million and $3.0 million was provided to the counterparty correspondent bank as of December 31, 2022 and 2021, respectively. Interest rate swaps entered into with commercial loan customers had notional amounts aggregating $62.7 million as of December 31, 2022 and $70.4 million at December 31, 2021. Associated credit exposure is generally mitigated by securing the interest rate swaps with the underlying collateral of the loan instrument that has been hedged.

PREMISES AND EQUIPMENT - NET

PREMISES AND EQUIPMENT - NET	12 Months Ended
PREMISES AND EQUIPMENT - NET	Dec. 31, 2022
PREMISES AND EQUIPMENT - NET [Abstract]
PREMISES AND EQUIPMENT - NET	NOTE 7 – PREMISES AND EQUIPMENT – NET Year-end premises and equipment were as follows (dollars in thousands): 2022 2021 Land $ 15,861 $ 15,861 Building 44,879 44,701 Leasehold improvements 248 253 Furniture and equipment 18,055 21,732 Construction in progress 50 — 79,093 82,547 Less accumulated depreciation (38,787 ) (40,774 ) $ 40,306 $ 41,773 Depreciation expense was $2.3 million and $2.5 million for 2022 and 2021, respectively.

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2022
LEASES [Abstract]
LEASES	NOTE 8 – LEASES The Company enters into leases in the normal course of business. As of December 31, 2022, the Company operated four offices for which the land and buildings are leased. All of the Company’s leases are operating leases under applicable accounting standards and the lease agreements have maturity dates ranging from March 2023 through January 2026, some of which include extension options. The weighted average remaining life of the lease term for these leases was 2 years as of December 31, 2022. As permitted by applicable accounting standards, the Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s Consolidated Balance Sheets. Leases are classified as either operating or finance leases at the lease commencement date, and as previously noted, all of the Company’s leases have been determined to be operating leases. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate, on a collateralized basis, at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The weighted average discount rate for leases was 0.58% as of December 31, 2022. The right-of-use assets and lease liabilities were $625,000 and $627,000, respectively, as of December 31, 2022, and were $866,000 and $861,000, respectively at December 31, 2021. Right-of-use assets are included in other assets accrued expenses and other liabilities Total operating lease expense charged to operations under all operating lease agreements was $451,000 in 2022 and $431,000 in 2021. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2022 are as follows (dollars in thousands): 2023 $ 360 2024 155 2025 114 2026 — 2027 — Thereafter — Total undiscounted lease payments 629 Less effect of discounting (2 ) Present value of estimated lease payments (lease liability) $ 627

DEPOSITS

DEPOSITS	12 Months Ended
DEPOSITS	Dec. 31, 2022
DEPOSITS [Abstract]
DEPOSITS	NOTE 9 – DEPOSITS Deposits at year-end were as follows (dollars in thousands): 2022 2021 Noninterest-bearing demand $ 834,879 $ 886,115 Interest bearing demand 760,889 736,573 Savings and money market accounts 922,418 865,528 Certificates of deposit 96,956 89,742 $ 2,615,142 $ 2,577,958 The following table depicts the maturity distribution of certificates of deposit at December 31, 2022 (dollars in thousands): 2023 $ 59,326 2024 35,756 2025 1,067 2026 489 2027 259 Thereafter 59 $ 96,956 Time deposits that exceed the FDIC insurance limit of $250,000 at December 31, 2022 and 2021 were approximately $29.7 million and $28.2 million, respectively.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	12 Months Ended
OTHER BORROWED FUNDS	Dec. 31, 2022
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 10 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2022 Single maturity fixed rate advances $ 10,000 February 2024 2.63 % Putable advances 20,000 November 2024 1.81 % $ 30,000 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2021 Single maturity fixed rate advances $ 30,000 May 2023 2024 2.87 % Putable advances 55,000 November 2024 2031 0.74 % $ 85,000 Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. Advances were collateralized by residential and commercial real estate loans totaling $446.1 million and $361.9 million under a blanket lien arrangement at December 31, 2022 and 2021, respectively. The remaining $20.0 million putable advance at December 31, 2022 had a one time put option on November 13, 2020. The FHLB did not exercise this option. NOTE 10 - OTHER BORROWED FUNDS (Continued) Scheduled repayments of FHLB advances as of December 31, 2022 were as follows (in thousands): 2023 $ — 2024 30,000 2025 — 2026 — 2027 — Thereafter — $ 30,000 On January 21, 2022, the FHLB exercised its option to put an advance totaling $25.0 million to the Company. This advance carried an interest rate of 0.01% and had a maturity date of July 21, 2031 . The Company paid off this advance as required on January 21, 2022. On January 21, 2022, the Company executed a new $25.0 million advance with the FHLB with similar terms. This advance carried an interest rate of 0.05% and a maturity date of January 21, 2032. The first put date for this advance was April 21, 2022. The FHLB exercised its put option on this advance and it was paid off by the Company as required on April 21, 2022. on May 27, 2022, the FHLB exercised its put option on a $10.0 million advance that carried an interest rate of 0.45% and the Company paid the advance off as required on May 27, 2022. In addition, on May 27, 2022, the Company prepaid $20.0 million in FHLB advances, with interest rates ranging from 2.91% to 3.05%. Prepayment fees of $87,000 were incurred and are included in interest expense Federal Reserve Bank Borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at December 31, 2022 and 2021, and the Company had approximately $5.5 million and $4.0 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $5.8 million and $4.4 million at December 31, 2022 and 2021, respectively.

LONG TERM DEBT

LONG TERM DEBT	12 Months Ended
LONG TERM DEBT	Dec. 31, 2022
LONG TERM DEBT [Abstract]
LONG TERM DEBT	NOTE 11 – LONG TERM DEBT Macatawa Statutory Trust II issued trust preferred securities LIBOR trust preferred securities

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12 – RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2022 2021 Beginning balance $ 25,779 $ 26,815 New loans and renewals 14,535 9,450 Repayments and renewals (14,407 ) (10,486 ) Effect of changes in related parties — — Ending balance $ 25,907 $ 25,779 Deposits from principal officers, directors, and affiliates at December 31, 2022 and 2021 were $153.3 million and $205.4 million, respectively. The majority of the deposit balances for each year are associated with institutional accounts of affiliated organizations. During 2015, the Bank entered into a back-to-back swap agreement (see Note 1 – Derivatives) with a company affiliated with one of the Company’s directors. The total notional amount of the agreement was $10.7 million and $12.0 million at December 31, 2022 and 2021, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
STOCK-BASED COMPENSATION	Dec. 31, 2022
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	NOTE 13 – STOCK-BASED COMPENSATION On May 5, 2015, the Company’s shareholders approved the Macatawa Bank Corporation Stock Incentive Plan of 2015 (the 2015 Plan). The 2015 Plan provides for grant of up to 1,500,000 shares of Macatawa common stock in the form of stock options or restricted stock awards to employees and directors. There were 973,550 shares under the “2015 Plan” available for future issuance as of December 31, 2022. The Company issues new shares under the 2015 Plan from its authorized but unissued shares. Restricted Stock Awards Restricted stock awards have vesting periods of three years with vesting at the rate of one-third A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2021 183,551 $ 8.63 $ 2,024,568 Granted 67,603 11.18 745,661 Vested (83,220 ) 8.80 (917,917 ) Forfeited (9,847 ) 8.80 (108,612 ) Outstanding at December 31, 2022 158,087 $ 9.62 $ 1,743,700 Compensation cost related to restricted stock awards totaled $703,000 and $684,000 for 2022 and 2021, respectively. As of December 31, 2022, there was $1.4 million of total remaining unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock-based compensation plans. The cost is expected to be recognized over a weighted-average period of 1.42 years. The total grant date fair value of restricted stock awards vested during 2022 was $732,000. The total grant date fair value of restricted stock awards vested during 2021 was $660,000.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
EMPLOYEE BENEFITS	Dec. 31, 2022
EMPLOYEE BENEFITS [Abstract]
EMPLOYEE BENEFITS	NOTE 14 – EMPLOYEE BENEFITS The Company sponsors a 401(k) plan which covers substantially all employees. Employees may elect to contribute to the plan up to the maximum percentage of compensation and dollar amount subject to statutory limitations. Beginning January 1, 2013, the Company’s contribution was set using a matching formula of 100% of the first 3% of employee contributions and 50% of employee contributions in excess of 3%, up to 5%. The Company suspended its matching contributions in the second quarter of 2020 and resumed contributions in the third quarter of 2020. For 2021, the Company reduced its matching formula to 100% of the first 2% of employee contributions. For 2022, the Company has reimplemented its normal matching formula of 100% of the first 3% of employee contributions and 50% of employee contributions in excess of 3%, up to 5%. The Company’s contributions were approximately $755,000 and $412,000 for 2022 and 2021, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
EARNINGS PER COMMON SHARE	Dec. 31, 2022
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 15 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data): 2022 2021 Net income $ 34,731 $ 29,014 Weighted average shares outstanding, including participating stock awards - Basic 34,259,604 34,202,179 Dilutive potential common shares: Stock options — — Weighted average shares outstanding - Diluted 34,259,604 34,202,179 Basic earnings per common share $ 1.01 $ 0.85 Diluted earnings per common share $ 1.01 $ 0.85

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	12 Months Ended
FEDERAL INCOME TAXES	Dec. 31, 2022
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 16 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): 2022 2021 Current $ 7,567 $ 5,615 Deferred 766 1,095 $ 8,333 $ 6,710 The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): 2022 2021 Statutory rate 21 % 21 % Statutory rate applied to income before taxes $ 9,044 $ 7,502 Adjust for: Tax-exempt interest income (589 ) (642 ) Bank-owned life insurance (184 ) (217 ) Other, net 62 67 $ 8,333 $ 6,710 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. Management believes it is more likely than not that all of the deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2022 2021 Deferred tax assets Allowance for loan losses $ 3,210 $ 3,337 Net deferred loan fees — 275 Nonaccrual loan interest 12 57 Valuation allowance on other real estate owned and property held for sale — 6 Unrealized loss on securities available for sale 8,394 79 Other 257 311 Gross deferred tax assets 11,873 4,065 Valuation allowance — — Total net deferred tax assets 11,873 4,065 Deferred tax liabilities Depreciation $ (1,098 ) $ (1,199 ) Prepaid expenses (309 ) (288 ) Net deferred loan costs (21 ) — Other (733 ) (415 ) Gross deferred tax liabilities (2,161 ) (1,902 ) Net deferred tax asset $ 9,712 $ 2,163 NOTE 16 - FEDERAL INCOME TAXES There were no unrecognized tax benefits at December 31, 2022 and 2021 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2019.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	12 Months Ended
COMMITMENTS AND OFF BALANCE-SHEET RISK	Dec. 31, 2022
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 17 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. A summary of the contractual amounts of financial instruments with off-balance-sheet risk was as follows at year-end (dollars in thousands): 2022 2021 Commitments to extend credit $ 77,384 $ 128,648 Letters of credit 13,455 10,141 Unused lines of credit 745,674 677,902 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was $0 and approximately $1.3 million at December 31, 2022 and 2021, respectively. The Bank enters into commitments to sell mortgage backed securities, which it later buys back in order to hedge its exposure to interest rate risk in its mortgage pipeline. These commitments were $0 and approximately $9.5 million at December 31, 2022 and 2021, respectively. At year-end 2022 approximately 72.0% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to SOFR and the prime rate and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to SOFR and the prime rate.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Dec. 31, 2022
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 18 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of December 31, 2022, there were no material pending legal proceedings to which we or any of our subsidiaries are a party or which any of our properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Dec. 31, 2022
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 19 – SHAREHOLDERS’ EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. The regulatory capital requirements include a common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which effectively results in a minimum CET1 ratio of 7.0%. The minimum ratio of Tier 1 capital to risk-weighted assets is 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5%), which effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer). The minimum leverage ratio is 4.0%. Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 CET1 capital (to risk weighted assets) Consolidated $ 278,615 16.9 % $ 74,003 4.5 % $ 115,116 7.0 % N/A N/A Bank 270,274 16.4 73,992 4.5 115,098 7.0 $ 106,877 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 278,615 16.9 98,670 6.0 139,783 8.5 N/A N/A Bank 270,274 16.4 98,655 6.0 139,762 8.5 131,540 8.0 Total capital (to risk weighted assets) Consolidated 293,900 17.9 131,561 8.0 172,673 10.5 N/A N/A Bank 285,559 17.4 131,540 8.0 172,647 10.5 164,426 10.0 Tier 1 capital (to average assets) Consolidated 278,615 9.7 114,589 4.0 N/A N/A N/A N/A Bank 270,274 9.4 114,582 4.0 N/A N/A 143,227 5.0 December 31, 2021 CET1 capital (to risk weighted assets) Consolidated $ 254,302 17.2 % $ 66,381 4.5 % $ 103,259 7.0 % N/A N/A Bank 246,239 16.7 66,370 4.5 103,242 7.0 $ 95,867 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 254,302 17.2 88,508 6.0 125,386 8.5 N/A N/A Bank 246,239 16.7 88,493 6.0 125,365 8.5 117,991 8.0 Total capital (to risk weighted assets) Consolidated 270,191 18.3 118,011 8.0 154,889 10.5 N/A N/A Bank 262,128 17.8 117,991 8.0 154,863 10.5 147,488 10.0 Tier 1 capital (to average assets) Consolidated 254,302 8.7 116,664 4.0 N/A N/A N/A N/A Bank 246,239 8.4 116,654 4.0 N/A N/A 145,818 5.0 The Bank was categorized as “well capitalized” at December 31, 2022 and 2021.

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	12 Months Ended
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	Dec. 31, 2022
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	NOTE 20 – CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) Following are condensed parent company only financial statements (dollars in thousands): CONDENSED BALANCE SHEETS 2022 2021 ASSETS Cash and cash equivalents $ 8,092 $ 7,831 Investment in Bank subsidiary 238,697 245,942 Investment in other subsidiaries — — Other assets 249 249 Total assets $ 247,038 $ 254,022 LIABILITIES AND SHAREHOLDERS’ EQUITY Long-term debt — — Other liabilities — 17 Total liabilities $ — 17 Total shareholders’ equity 247,038 254,005 Total liabilities and shareholders’ equity $ 247,038 $ 254,022 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2022 2021 INCOME Dividends from subsidiaries $ 11,913 $ 33,118 Other — — Total income 11,913 33,118 EXPENSE Interest expense — 319 Other expense 801 822 Total expense 801 1,141 Income before income tax and equity in undistributed earnings of subsidiaries 11,112 31,977 Equity in undistributed earnings of subsidiaries 23,445 (3,211 ) Income before income tax 34,557 28,766 Income tax benefit (174 ) (248 ) Net income $ 34,731 $ 29,014 Comprehensive income $ 3,452 $ 24,503 NOTE 20 – CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Continued) CONDENSED STATEMENTS OF CASH FLOWS 2022 2021 Cash flows from operating activities Net income $ 34,731 $ 29,014 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (23,445 ) 3,211 Stock compensation expense 114 89 Change in other assets — (41 ) Change in other liabilities (17 ) (135 ) Net cash from operating activities 11,383 32,138 Cash flows from investing activities Investment in subsidiaries — — Net cash from investing activities — — Cash flows from financing activities Repayment of other borrowings — (20,000 ) Cash dividends paid (10,915 ) (10,895 ) Repurchases of shares (207 ) (130 ) Net cash from financing activities (11,122 ) (31,025 ) Net change in cash and cash equivalents 261 1,113 Cash and cash equivalents at beginning of year 7,831 6,718 Cash and cash equivalents at end of year $ 8,092 $ 7,831

QUARTERLY FINANCIAL DATA (Unaud

QUARTERLY FINANCIAL DATA (Unaudited)	12 Months Ended
QUARTERLY FINANCIAL DATA (Unaudited)	Dec. 31, 2022
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
QUARTERLY FINANCIAL DATA (Unaudited)	NOTE 21 – QUARTERLY FINANCIAL DATA (Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2022 First quarter $ 13,143 $ 12,665 $ (1,500 ) $ 6,000 $ 0.18 $ 0.18 Second quarter 15,435 14,843 — 6,568 0.19 0.19 Third quarter 20,875 19,771 — 10,045 0.29 0.29 Fourth quarter 25,454 22,867 375 12,118 0.35 0.35 2021 First quarter $ 15,274 $ 14,490 $ — $ 7,778 $ 0.23 $ 0.23 Second quarter 15,184 14,457 (750 ) 7,818 0.23 0.23 Third quarter 14,842 14,296 (550 ) 7,202 0.21 0.21 Fourth quarter 13,334 12,826 (750 ) 6,216 0.18 0.18

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company previously owned all of the common securities of Macatawa Statutory Trust II. This was a grantor trust that issued trust preferred securities and is discussed in Note 11. Under generally accepted accounting principles, this trust is not consolidated into the financial statements of the Company. On July 7, 2021, the Company redeemed the $20.0 million outstanding trust preferred securities and $619,000 common securities associated with Macatawa Statutory Trust II.
Recent Events	Recent Events: The Bank was a participating lender in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). PPP loans were forgivable, in whole or in part, if the proceeds were used for payroll and other permitted purposes in accordance with the requirements of the PPP. Upon SBA forgiveness, unamortized fees were then recognized into interest incom e. In 2021: • The Bank originated 1,000 PPP loans totaling $128.1 million in principal. • Fees generated totaled $5.6 million. • 1,722 PPP loans totaling $318.4 million were forgiven. • Total net fees of $ million were recognized. In 2022: • 251 PPP loans totaling $43.2 million were forgiven. • Total net fees of $1.3 million were recognized. A s of December 31, 2022, no PPP loans remain outstanding
Use of Estimates	Use of Estimates
Concentration of Credit Risk	Concentration of Credit Risk
Cash and Cash Equivalents	Cash and Cash Equivalents
Cash Flow Reporting	Cash Flow Reporting
Restrictions on Cash	Restrictions on Cash
Securities	Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2022 and 2021.
Federal Home Loan Bank (FHLB) Stock	Federal Home Loan Bank (FHLB) Stock
Loans Held for Sale	Loans Held for Sale
Loans	Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level-yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Allowance for Loan Losses	Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2022 and 2021, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral.
Transfers of Financial Assets	Transfers of Financial Assets
Foreclosed Assets	Foreclosed Assets
Premises and Equipment	Premises and Equipment
Bank-Owned Life Insurance (BOLI)	Bank-Owned Life Insurance (BOLI):
Long-term Assets	Long-term Assets
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments
Mortgage Banking Derivatives	Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and mortgage backed security and forward commitment derivatives are included in net gains on mortgage loans. The fair value of interest rate lock commitments was $0 and $25,000 at December 31, 2022 and 2021, respectively.
Revenue From Contracts With Customers	Revenue From Contracts With Customers Revenue from Contracts with Customers The Company’s primary sources of revenue are derived from interest and dividends earned on loans, securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally satisfies its performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis (generally monthly) or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Interest Income: The Company’s largest source of revenue is interest income which is primarily recognized on an accrual basis based on contractual terms written into loans and investment contracts. Noninterest Revenue: The Company derives the majority of its noninterest revenue from: (1) service charges for deposit related services, (2) gains related to mortgage loan sales, (3) trust fees and (4) debit and credit card interchange income. Most of these services are transaction based and revenue is recognized as the related service is provided.
Derivatives	Derivatives
Income Taxes	Income Taxes The Company recognizes a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Earnings Per Common Share	Earnings Per Common Share
Comprehensive Income	Comprehensive Income
Loss Contingencies	Loss Contingencies
Stock Splits and Dividends	Stock Splits and Dividends
Dividend Restriction	Dividend Restriction
Fair Values of Financial Instruments	Fair Values of Financial Instruments
Segment Reporting	Segment Reporting
Reclassifications	Reclassifications
Accounting Standards Updates	Accounting Standards Updates FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. This ASU expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for credit losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by year of origination. The Company selected a software vendor for applying this new ASU for Current Expected Credit Losses (“CECL”), began implementation of the software in the second quarter of 2018, completed integration during the third quarter of 2018 and ran parallel computations with both systems using the current GAAP incurred loss model in the fourth quarter of 2018. The Company went live with this software beginning in January 2019 for its monthly incurred loss computations and began modeling the new current expected credit loss model assumptions to the allowance for loan losses computation. In the periods since, the Company modeled the various methods prescribed in the ASU against the Company’s identified loan segments, ultimately determining that the weighted average remaining life method was the appropriate method for the Company to use. The Company adopted the standard effective January 1, 2023 and estimates that the impact of adoption will result in an allowance increase of $1.2 million to $2.2 million, due primarily to the forward-looking economic forecast, which presents the most variability within this range. The required liability for unfunded commitments at January 1, 2023 is estimated at approximately $60,000. The resulting impact will be a decrease to the retained earnings account on the Company’s Consolidated Balance Sheet equal to the after-tax impact of the increase in allowance balances, with the tax impact portion being recorded as a deferred tax asset on the Company’s Consolidated Balance Sheet. The Company did not identify any available-for-sale debt securities requiring allowances to be established upon adoption of the standard on January 1, 2023. In addition, the Company evaluated its municipal bond securities and U.S. Treasury securities held to maturity on a pooled basis, determining that the securities in each pool share similar risks. The Company determined that on January 1, 2023, the municipal bond securities have a remote risk of loss and the government backed U.S. Treasury securities have a zero risk of loss. . ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ASU No. 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. ASU No. 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
SECURITIES (Tables)	Dec. 31, 2022
SECURITIES [Abstract]
Amortized Cost and Estimated Fair Value of Securities	The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 Available for Sale: U.S. Treasury and federal agency securities $ 240,921 $ 23 $ (16,310 ) $ 224,634 U.S. Agency MBS and CMOs 128,165 — (14,347 ) 113,818 Tax-exempt state and municipal bonds 37,198 10 (498 ) 36,710 Taxable state and municipal bonds 120,647 49 (8,525 ) 112,171 Corporate bonds and other debt securities 12,387 — (463 ) 11,924 $ 539,318 $ 82 $ (40,143 ) $ 499,257 Held to Maturity U.S. Treasury $ 251,307 $ — $ (13,677 ) 237,630 Tax-exempt state and municipal bonds 97,458 415 (2,853 ) 95,020 $ 348,765 $ 415 $ (16,530 ) $ 332,650 December 31, 2021 Available for Sale: U.S. Treasury and federal agency securities $ 208,153 $ 215 $ (1,523 ) $ 206,845 U.S. Agency MBS and CMOs 87,343 416 (962 ) 86,797 Tax-exempt state and municipal bonds 36,298 1,258 — 37,556 Taxable state and municipal bonds 79,394 812 (645 ) 79,561 Corporate bonds and other debt securities 5,251 63 (10 ) 5,304 $ 416,439 $ 2,764 $ (3,140 ) $ 416,063 Held to Maturity Tax-exempt state and municipal bonds $ 137,003 $ 2,484 $ (215 ) $ 139,272
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at December 31, 2022 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 29,311 $ 28,935 $ 11,372 $ 11,293 Due from one to five years 298,700 283,518 359,411 339,059 Due from five to ten years 20,754 20,197 41,780 36,424 Due after ten years — — 126,755 112,481 $ 348,765 $ 332,650 $ 539,318 $ 499,257
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2022 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale: U.S. Treasury and federal agency securities $ 144,796 $ (6,230 ) $ 66,008 $ (10,080 ) $ 210,804 $ (16,310 ) U.S. Agency MBS and CMOs 64,427 (4,789 ) 41,340 (9,558 ) 105,767 (14,347 ) Tax-exempt state and municipal bonds 31,337 (498 ) — — 31,337 (498 ) Taxable state and municipal bonds 71,165 (3,337 ) 33,452 (5,188 ) 104,617 (8,525 ) Corporate bonds and other debt securities 10,668 (357 ) 1,256 (106 ) 11,924 (463 ) $ 322,393 $ (15,211 ) $ 142,056 $ (24,932 ) $ 464,449 $ (40,143 ) Held to Maturity: U.S. Treasury $ 237,630 $ (13,677 ) $ — $ — $ 237,630 $ (13,677 ) Tax-exempt state and municipal bonds 57,671 (2,314 ) 21,721 (539 ) 79,392 (2,853 ) $ 295,301 $ (15,991 ) $ 21,721 $ (539 ) $ 317,022 $ (16,530 ) Less than 12 Months 12 Months or More Total December 31, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale: U.S. Treasury and federal agency securities $ 77,066 $ (955 ) $ 18,432 $ (568 ) $ 95,498 $ (1,523 ) U.S. Agency MBS and CMOs 52,254 (830 ) 4,190 (132 ) 56,444 (962 ) Tax-exempt state and municipal bonds — — — — — — Taxable state and municipal bonds 37,648 (638 ) 498 (7 ) 38,146 (645 ) Corporate bonds and other debt securities 1,352 (10 ) — — 1,352 (10 ) $ 168,320 $ (2,433 ) $ 23,120 $ (707 ) $ 191,440 $ (3,140 ) Held to Maturity: Tax-exempt state and municipal bonds $ 61,166 $ (215 ) $ — $ — $ 61,166 $ (215 )

LOANS (Tables)

LOANS (Tables)	12 Months Ended
LOANS (Tables)	Dec. 31, 2022
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows at year end (dollars in thousands): 2022 2021 Commercial and industrial Commercial and industrial, excluding PPP $ 441,716 $ 378,318 PPP — 41,939 Total commercial and industrial 441,716 420,257 Commercial real estate: Residential developed 7,234 4,862 Unsecured to residential developers — 5,000 Vacant and unimproved 36,270 36,240 Commercial development 103 171 Residential improved 112,791 100,077 Commercial improved 259,281 259,039 Manufacturing and industrial 121,924 110,712 Total commercial real estate 537,603 516,101 Consumer Residential mortgage 139,148 117,800 Unsecured 121 210 Home equity 56,321 51,269 Other secured 2,839 3,356 Total consumer 198,429 172,635 Total loans 1,177,748 1,108,993 Allowance for loan losses (15,285 ) (15,889 ) $ 1,162,463 $ 1,093,104
Activity in Allowance for Loan Losses by Portfolio Segment	The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Charge-offs (38 ) — (126 ) — (164 ) Recoveries 191 300 194 — 685 Provision for loan losses 267 (1,171 ) (243 ) 22 (1,125 ) Ending Balance $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 2021 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,632 $ 7,999 $ 2,758 $ 19 $ 17,408 Charge-offs — — (124 ) — (124 ) Recoveries 331 208 116 — 655 Provision for loan losses (1,787 ) (156 ) (117 ) 10 (2,050 ) Ending Balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 55 $ 20 $ 220 $ — $ 295 Collectively evaluated for impairment 5,541 7,160 2,238 51 14,990 Total ending allowance balance $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 Loans: Individually reviewed for impairment $ 3,603 $ 518 $ 2,886 $ — $ 7,007 Collectively evaluated for impairment 438,113 537,085 195,543 — 1,170,741 Total ending loans balance $ 441,716 $ 537,603 $ 198,429 $ — $ 1,177,748 December 31, 2021 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 303 $ 24 $ 238 $ — $ 565 Collectively evaluated for impairment 4,873 8,027 2,395 29 15,324 Total ending allowance balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Loans: Individually reviewed for impairment $ 3,375 $ 1,127 $ 3,024 $ — $ 7,526 Collectively evaluated for impairment 416,882 514,974 169,611 — 1,101,467 Total ending loans balance $ 420,257 $ 516,101 $ 172,635 $ — $ 1,108,993
Loans Individually Evaluated for Impairment by Class of Loans	The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2022 (dollars in thousands): December 31, 2022 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,278 $ 3,278 $ — Commercial real estate: Residential improved 31 31 — 31 31 — Consumer — — — Total with no related allowance recorded $ 3,309 $ 3,309 $ — With an allowance recorded: Commercial and industrial $ 325 $ 325 $ 55 Commercial real estate: Commercial improved 307 307 9 Manufacturing and industrial 180 180 11 487 487 20 Consumer: Residential mortgage 2,653 2,653 202 Unsecured 29 29 2 Home equity 204 204 16 2,886 2,886 220 Total with an allowance recorded $ 3,698 $ 3,698 $ 295 Total $ 7,007 $ 7,007 $ 295 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2021 (dollars in thousands): December 31, 2021 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 669 $ 669 $ — Commercial real estate: Residential improved 41 41 — Commercial improved 577 577 — 618 618 — Consumer — — — Total with no related allowance recorded $ 1,287 $ 1,287 $ — With an allowance recorded: Commercial and industrial $ 2,706 $ 2,706 $ 303 Commercial real estate: Commercial improved 318 318 14 Manufacturing and industrial 191 191 10 509 509 24 Consumer: Residential mortgage 2,726 2,726 214 Unsecured 64 64 5 Home equity 234 234 19 Other secured — — — 3,024 3,024 238 Total with an allowance recorded $ 6,239 $ 6,239 $ 565 Total $ 7,526 $ 7,526 $ 565
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans	The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Average of impaired loans during the period: Commercial and industrial $ 2,703 $ 1,927 Commercial real estate: Residential developed — 11 Residential improved 42 45 Commercial improved 396 1,605 Manufacturing and industrial 185 148 Consumer 2,882 2,731 Interest income recognized during impairment: Commercial and industrial 423 429 Commercial real estate 39 91 Consumer 118 120 Cash-basis interest income recognized Commercial and industrial 415 437 Commercial real estate 39 91 Consumer 122 123
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans	Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate — — Consumer: Residential mortgage 78 — 78 — Total $ 78 $ — December 31, 2021 Nonaccrual Over 90 days Accruing Commercial and industrial $ — $ — Commercial real estate: Residential improved 5 — Commercial improved — — 5 — Consumer: Residential mortgage 86 — 86 — Total $ 91 $ —
Aging of Recorded Investment in Past Due Loans by Class of Loans	The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 by class of loans (dollars in thousands): December 31, 2022 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 441,716 $ 441,716 Commercial real estate: Residential developed — — — 7,234 7,234 Unsecured to residential developers — — — — — Vacant and unimproved — — — 36,270 36,270 Commercial development — — — 103 103 Residential improved — — — 112,791 112,791 Commercial improved 71 — 71 259,210 259,281 Manufacturing and industrial — — — 121,924 121,924 71 — 71 537,532 537,603 Consumer: Residential mortgage — 77 77 139,071 139,148 Unsecured — — — 121 121 Home equity 24 — 24 56,297 56,321 Other secured — — — 2,839 2,839 24 77 101 198,328 198,429 Total $ 95 $ 77 $ 172 $ 1,177,576 $ 1,177,748 The following table presents the aging of the recorded investment in past due loans as of December 31, 2021 by class of loans (dollars in thousands): December 31, 2021 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 39 $ 1 $ 40 $ 420,217 $ 420,257 Commercial real estate: Residential developed — — — 4,862 4,862 Unsecured to residential developers — — — 5,000 5,000 Vacant and unimproved — — — 36,240 36,240 Commercial development — — — 171 171 Residential improved — 5 5 100,072 100,077 Commercial improved — — — 259,039 259,039 Manufacturing and industrial — — — 110,712 110,712 — 5 5 516,096 516,101 Consumer: Residential mortgage — 84 84 117,716 117,800 Unsecured — — — 210 210 Home equity — — — 51,269 51,269 Other secured — — — 3,356 3,356 — 84 84 172,551 172,635 Total $ 39 $ 90 $ 129 $ 1,108,864 $ 1,108,993
Troubled Debt Restructurings	The following table presents information regarding TDRs as of December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 4 $ 3,604 4 $ 3,375 Commercial real estate 3 517 6 1,127 Consumer 32 2,886 44 3,024 39 $ 7,007 54 $ 7,526 The following table presents information related to accruing TDRs as of December 31, 2022 and 2021. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Accruing TDR - nonaccrual at restructuring $ — $ — Accruing TDR - accruing at restructuring 3,728 4,553 Accruing TDR - upgraded to accruing after six consecutive payments 3,279 2,968 $ 7,007 $ 7,521 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2022 and 2021 (dollars in thousands): 2022 2021 Number of Loans Pre-TDR Balance Writedown Upon TDR Number of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial — $ — $ — — $ — $ — Commercial real estate — — — — — — Consumer 3 449 — — — — 3 $ 449 $ — — $ — $ —
Risk Grade Category of Loans by Class of Loans	At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2022 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 15,040 $ 21,451 $ 175,762 $ 220,987 $ 8,309 $ 167 $ — $ — $ 441,716 Commercial real estate: Residential developed — — — 7,234 — — — — 7,234 Unsecured to residential developers — — — — — — — — — Vacant and unimproved — 1,231 18,406 16,633 — — — — 36,270 Commercial development — — 103 — — — — — 103 Residential improved — — 25,585 87,176 30 — — — 112,791 Commercial improved — 17,802 83,769 151,641 5,762 307 — — 259,281 Manufacturing & industrial — 11,422 32,977 73,566 1,646 2,313 — — 121,924 $ 15,040 $ 51,906 $ 336,602 $ 557,237 $ 15,747 $ 2,787 $ — $ — $ 979,319 December 31, 2021 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 56,979 $ 19,300 $ 110,877 $ 227,087 $ 2,700 $ 3,314 $ — $ — $ 420,257 Commercial real estate: Residential developed — — — 4,862 — — — — 4,862 Unsecured to residential developers — — — 5,000 — — — — 5,000 Vacant and unimproved — 1,763 13,492 20,985 — — — — 36,240 Commercial development — — 171 — — — — — 171 Residential improved — — 24,450 75,503 119 — 5 — 100,077 Commercial improved — 15,115 71,211 165,268 7,127 318 — — 259,039 Manufacturing & industrial — — 41,757 65,601 3,354 — — — 110,712 $ 56,979 $ 36,178 $ 261,958 $ 564,306 $ 13,300 $ 3,632 $ 5 $ — $ 936,358
Commercial Loans Classified as Substandard or Worse	Commercial loans classified as substandard or worse were as follows at year-end (dollars in thousands): 2022 2021 Not classified as impaired $ 2,422 $ 233 Classified as impaired 365 3,404 Total commercial loans classified substandard or worse $ 2,787 $ 3,637
Recorded Investment in Consumer Loans Based on Payment Activity	The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 139,071 $ 121 $ 56,321 $ 2,839 Nonperforming 77 — — — Total $ 139,148 $ 121 $ 56,321 $ 2,839 December 31, 2021 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 117,716 $ 210 $ 51,269 $ 3,356 Nonperforming 84 — — — Total $ 117,800 $ 210 $ 51,269 $ 3,356

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	12 Months Ended
OTHER REAL ESTATE OWNED (Tables)	Dec. 31, 2022
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): 2022 2021 Beginning balance $ 2,369 $ 2,731 Additions, transfers from loans — — Proceeds from sales of other real estate owned and repossessed assets (47 ) (170 ) Valuation allowance reversal upon sale (26 ) (172 ) Gain (loss) on sales of other real estate owned and repossessed assets 47 (20 ) 2,343 2,369 Less: valuation allowance — (26 ) Ending balance $ 2,343 $ 2,343
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): 2022 2021 Beginning balance $ 26 $ 194 Additions charged to expense — 4 Reversals upon sale (26 ) (172 ) Ending balance $ — $ 26

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
FAIR VALUE (Tables)	Dec. 31, 2022
FAIR VALUE [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Available for sale securities U.S. Treasury and federal agency securities $ 224,634 $ — $ 224,634 $ — U.S. Agency MBS and CMOs 113,818 — 113,818 — Tax-exempt state and municipal bonds 36,710 — 36,710 — Taxable state and municipal bonds 112,171 — 112,171 — Corporate bonds and other debt securities 11,924 — 11,924 — Other equity securities 1,304 — 1,304 — Loans held for sale 215 — 215 — Interest rate swaps 6,463 — 6,463 — Total assets measured at fair value on recurring basis $ 507,239 $ — $ 507,239 $ — Interest rate swaps (6,463 ) — (6,463 ) — Total liabilities measured at fair value on recurring basis $ (6,463 ) $ — $ (6,463 ) $ — December 31, 2021 Available for sale securities U.S. Treasury and federal agency securities $ 206,845 $ — $ 206,845 $ — U.S. Agency MBS and CMOs 86,797 — 86,797 — Tax-exempt state and municipal bonds 37,556 — 37,556 — Taxable state and municipal bonds 79,561 — 79,561 — Corporate bonds and other debt securities 5,304 — 5,304 — Other equity securities 1,470 — 1,470 — Loans held for sale 1,407 — 1,407 — Interest rate swaps 3,277 — 3,277 — Total assets measured at fair value on recurring basis $ 422,217 $ — $ 422,217 $ — Interest rate swaps (3,277 ) — (3,277 ) — Total liabilities measured at fair value on recurring basis $ (3,277 ) $ — $ (3,277 ) $ —
Assets Measured at Fair Value on a Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2022 Impaired loans $ 328 $ — $ — $ 328 December 31, 2021 Impaired loans $ 2,903 $ — $ — $ 2,903
Quantitative Information about Level 3 Fair Value Measurements Measured on a Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2022 Impaired loans $ 328 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2021 Impaired loans $ 2,903 Sales comparison approach Adjustment for differences between comparable sales 1.5 to 20.0 Income approach Capitalization rate 9.5 to 11.0
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented	The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). 2022 2021 Level in Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 51,215 $ 51,215 $ 23,669 $ 23,669 Federal funds sold and other short-term investments Level 1 703,955 703,955 1,128,119 1,128,119 Securities held to maturity - U.S. Treasury Level 2 251,307 237,630 — — Securities held to maturity - tax-exempt and muni Level 3 97,458 95,020 137,003 139,272 FHLB stock Level 3 10,211 10,211 11,558 11,558 Loans, net Level 2 1,162,135 1,131,387 1,090,201 1,106,324 Bank owned life insurance Level 3 53,345 53,345 52,468 52,468 Accrued interest receivable Level 2 7,606 7,606 4,088 4,088 Financial liabilities Deposits Level 2 (2,615,142 ) (2,615,860 ) (2,577,958 ) (2,577,885 ) Other borrowed funds Level 2 (30,000 ) (28,666 ) (85,000 ) (86,322 ) Accrued interest payable Level 2 (114 ) (114 ) (72 ) (72 ) Off-balance sheet credit-related items Loan commitments — — — —

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
DERIVATIVES (Tables)	Dec. 31, 2022
DERIVATIVES [Abstract]
Fair Value of Derivative Instruments	The fair value of derivative instruments as of December 31, 2022 and 2021 are reflected in the following table (dollars in thousands): Notional Amount Balance Sheet Location Fair Value December 31, 2022 Derivative assets Interest rate swaps $ 62,661 Other Assets $ 6,463 Derivative liabilities Interest rate swaps 62,661 Other Liabilities 6,463 Notional Amount Balance Sheet Location Fair Value December 31, 2021 Derivative assets Interest rate swaps $ 70,356 Other Assets $ 3,277 Derivative liabilities Interest rate swaps 70,356 Other Liabilities 3,277

PREMISES AND EQUIPMENT - NET (T

PREMISES AND EQUIPMENT - NET (Tables)	12 Months Ended
PREMISES AND EQUIPMENT - NET (Tables)	Dec. 31, 2022
PREMISES AND EQUIPMENT - NET [Abstract]
Premises and Equipment	Year-end premises and equipment were as follows (dollars in thousands): 2022 2021 Land $ 15,861 $ 15,861 Building 44,879 44,701 Leasehold improvements 248 253 Furniture and equipment 18,055 21,732 Construction in progress 50 — 79,093 82,547 Less accumulated depreciation (38,787 ) (40,774 ) $ 40,306 $ 41,773

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2022
LEASES [Abstract]
Future Undiscounted Lease Payments for Operating Leases	Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2022 are as follows (dollars in thousands): 2023 $ 360 2024 155 2025 114 2026 — 2027 — Thereafter — Total undiscounted lease payments 629 Less effect of discounting (2 ) Present value of estimated lease payments (lease liability) $ 627

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
DEPOSITS (Tables)	Dec. 31, 2022
DEPOSITS [Abstract]
Deposits at Period-End	Deposits at year-end were as follows (dollars in thousands): 2022 2021 Noninterest-bearing demand $ 834,879 $ 886,115 Interest bearing demand 760,889 736,573 Savings and money market accounts 922,418 865,528 Certificates of deposit 96,956 89,742 $ 2,615,142 $ 2,577,958
Maturity Distribution of Certificates of Deposit	The following table depicts the maturity distribution of certificates of deposit at December 31, 2022 (dollars in thousands): 2023 $ 59,326 2024 35,756 2025 1,067 2026 489 2027 259 Thereafter 59 $ 96,956

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	12 Months Ended
OTHER BORROWED FUNDS (Tables)	Dec. 31, 2022
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2022 Single maturity fixed rate advances $ 10,000 February 2024 2.63 % Putable advances 20,000 November 2024 1.81 % $ 30,000 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2021 Single maturity fixed rate advances $ 30,000 May 2023 2024 2.87 % Putable advances 55,000 November 2024 2031 0.74 % $ 85,000
Scheduled Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of December 31, 2022 were as follows (in thousands): 2023 $ — 2024 30,000 2025 — 2026 — 2027 — Thereafter — $ 30,000

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
RELATED PARTY TRANSACTIONS (Tables)	Dec. 31, 2022
RELATED PARTY TRANSACTIONS [Abstract]
Loans to Principal Officers, Directors, and Their Affiliates	Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2022 2021 Beginning balance $ 25,779 $ 26,815 New loans and renewals 14,535 9,450 Repayments and renewals (14,407 ) (10,486 ) Effect of changes in related parties — — Ending balance $ 25,907 $ 25,779

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
STOCK-BASED COMPENSATION (Tables)	Dec. 31, 2022
STOCK-BASED COMPENSATION [Abstract]
Changes in Nonvested Stock Awards	A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2021 183,551 $ 8.63 $ 2,024,568 Granted 67,603 11.18 745,661 Vested (83,220 ) 8.80 (917,917 ) Forfeited (9,847 ) 8.80 (108,612 ) Outstanding at December 31, 2022 158,087 $ 9.62 $ 1,743,700

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
EARNINGS PER COMMON SHARE (Tables)	Dec. 31, 2022
EARNINGS PER COMMON SHARE [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Common Share	A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data): 2022 2021 Net income $ 34,731 $ 29,014 Weighted average shares outstanding, including participating stock awards - Basic 34,259,604 34,202,179 Dilutive potential common shares: Stock options — — Weighted average shares outstanding - Diluted 34,259,604 34,202,179 Basic earnings per common share $ 1.01 $ 0.85 Diluted earnings per common share $ 1.01 $ 0.85

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	12 Months Ended
FEDERAL INCOME TAXES (Tables)	Dec. 31, 2022
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): 2022 2021 Current $ 7,567 $ 5,615 Deferred 766 1,095 $ 8,333 $ 6,710
Reconciliation of Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income	The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): 2022 2021 Statutory rate 21 % 21 % Statutory rate applied to income before taxes $ 9,044 $ 7,502 Adjust for: Tax-exempt interest income (589 ) (642 ) Bank-owned life insurance (184 ) (217 ) Other, net 62 67 $ 8,333 $ 6,710
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2022 2021 Deferred tax assets Allowance for loan losses $ 3,210 $ 3,337 Net deferred loan fees — 275 Nonaccrual loan interest 12 57 Valuation allowance on other real estate owned and property held for sale — 6 Unrealized loss on securities available for sale 8,394 79 Other 257 311 Gross deferred tax assets 11,873 4,065 Valuation allowance — — Total net deferred tax assets 11,873 4,065 Deferred tax liabilities Depreciation $ (1,098 ) $ (1,199 ) Prepaid expenses (309 ) (288 ) Net deferred loan costs (21 ) — Other (733 ) (415 ) Gross deferred tax liabilities (2,161 ) (1,902 ) Net deferred tax asset $ 9,712 $ 2,163

COMMITMENTS AND OFF BALANCE-S_2

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	12 Months Ended
COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	Dec. 31, 2022
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk	A summary of the contractual amounts of financial instruments with off-balance-sheet risk was as follows at year-end (dollars in thousands): 2022 2021 Commitments to extend credit $ 77,384 $ 128,648 Letters of credit 13,455 10,141 Unused lines of credit 745,674 677,902

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Dec. 31, 2022
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 CET1 capital (to risk weighted assets) Consolidated $ 278,615 16.9 % $ 74,003 4.5 % $ 115,116 7.0 % N/A N/A Bank 270,274 16.4 73,992 4.5 115,098 7.0 $ 106,877 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 278,615 16.9 98,670 6.0 139,783 8.5 N/A N/A Bank 270,274 16.4 98,655 6.0 139,762 8.5 131,540 8.0 Total capital (to risk weighted assets) Consolidated 293,900 17.9 131,561 8.0 172,673 10.5 N/A N/A Bank 285,559 17.4 131,540 8.0 172,647 10.5 164,426 10.0 Tier 1 capital (to average assets) Consolidated 278,615 9.7 114,589 4.0 N/A N/A N/A N/A Bank 270,274 9.4 114,582 4.0 N/A N/A 143,227 5.0 December 31, 2021 CET1 capital (to risk weighted assets) Consolidated $ 254,302 17.2 % $ 66,381 4.5 % $ 103,259 7.0 % N/A N/A Bank 246,239 16.7 66,370 4.5 103,242 7.0 $ 95,867 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 254,302 17.2 88,508 6.0 125,386 8.5 N/A N/A Bank 246,239 16.7 88,493 6.0 125,365 8.5 117,991 8.0 Total capital (to risk weighted assets) Consolidated 270,191 18.3 118,011 8.0 154,889 10.5 N/A N/A Bank 262,128 17.8 117,991 8.0 154,863 10.5 147,488 10.0 Tier 1 capital (to average assets) Consolidated 254,302 8.7 116,664 4.0 N/A N/A N/A N/A Bank 246,239 8.4 116,654 4.0 N/A N/A 145,818 5.0

CONDENSED FINANCIAL STATEMENT_2

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)	12 Months Ended
	Dec. 31, 2022
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
Condensed Balance Sheets	CONDENSED BALANCE SHEETS 2022 2021 ASSETS Cash and cash equivalents $ 8,092 $ 7,831 Investment in Bank subsidiary 238,697 245,942 Investment in other subsidiaries — — Other assets 249 249 Total assets $ 247,038 $ 254,022 LIABILITIES AND SHAREHOLDERS’ EQUITY Long-term debt — — Other liabilities — 17 Total liabilities $ — 17 Total shareholders’ equity 247,038 254,005 Total liabilities and shareholders’ equity $ 247,038 $ 254,022
Condensed Statements of Income and Comprehensive Income	CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2022 2021 INCOME Dividends from subsidiaries $ 11,913 $ 33,118 Other — — Total income 11,913 33,118 EXPENSE Interest expense — 319 Other expense 801 822 Total expense 801 1,141 Income before income tax and equity in undistributed earnings of subsidiaries 11,112 31,977 Equity in undistributed earnings of subsidiaries 23,445 (3,211 ) Income before income tax 34,557 28,766 Income tax benefit (174 ) (248 ) Net income $ 34,731 $ 29,014 Comprehensive income $ 3,452 $ 24,503
Condensed Statements of Cash Flows	CONDENSED STATEMENTS OF CASH FLOWS 2022 2021 Cash flows from operating activities Net income $ 34,731 $ 29,014 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (23,445 ) 3,211 Stock compensation expense 114 89 Change in other assets — (41 ) Change in other liabilities (17 ) (135 ) Net cash from operating activities 11,383 32,138 Cash flows from investing activities Investment in subsidiaries — — Net cash from investing activities — — Cash flows from financing activities Repayment of other borrowings — (20,000 ) Cash dividends paid (10,915 ) (10,895 ) Repurchases of shares (207 ) (130 ) Net cash from financing activities (11,122 ) (31,025 ) Net change in cash and cash equivalents 261 1,113 Cash and cash equivalents at beginning of year 7,831 6,718 Cash and cash equivalents at end of year $ 8,092 $ 7,831

QUARTERLY FINANCIAL DATA (Una_2

QUARTERLY FINANCIAL DATA (Unaudited) (Tables)	12 Months Ended
QUARTERLY FINANCIAL DATA (Unaudited) (Tables)	Dec. 31, 2022
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Quarterly Financial Data	(Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2022 First quarter $ 13,143 $ 12,665 $ (1,500 ) $ 6,000 $ 0.18 $ 0.18 Second quarter 15,435 14,843 — 6,568 0.19 0.19 Third quarter 20,875 19,771 — 10,045 0.29 0.29 Fourth quarter 25,454 22,867 375 12,118 0.35 0.35 2021 First quarter $ 15,274 $ 14,490 $ — $ 7,778 $ 0.23 $ 0.23 Second quarter 15,184 14,457 (750 ) 7,818 0.23 0.23 Third quarter 14,842 14,296 (550 ) 7,202 0.21 0.21 Fourth quarter 13,334 12,826 (750 ) 6,216 0.18 0.18

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Principles of Consolidation and Recent Events (Details) $ in Thousands		12 Months Ended
	Jul. 07, 2021 USD ($)	Dec. 31, 2022 USD ($) Loan Branch	Dec. 31, 2021 USD ($) Loan
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices \| Branch		26
PPP Loans [Member]
Recent Events [Abstract]
Number of loans originated \| Loan			1,000
Loans originated			$ 128,100
Fees generated for loans originated			$ 5,600
Number of loans forgiven \| Loan		251	1,722
Loans forgiven		$ 43,200	$ 318,400
Net fees recognized for loans forgiven		1,300	$ 8,300
Loans outstanding		$ 0
Macatawa Statutory Trust II [Member] \| Common Securities [Member]
Recent Events [Abstract]
Trust securities redeemed	$ 619
Common securities repurchased	619
Trusted Preferred Securities [Member] \| Macatawa Statutory Trust II [Member]
Recent Events [Abstract]
Trust securities redeemed	$ 20,000

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Concentration of Credit Risk (Details) - Loans [Member] - Credit Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2022
Commercial Real Estate [Member]
Concentration of Credit Risk [Abstract]
Concentration of credit risk	46%
Commercial and Industrial [Member]
Concentration of Credit Risk [Abstract]
Concentration of credit risk	37%
Residential Real Estate and Consumer Loans [Member]
Concentration of Credit Risk [Abstract]
Concentration of credit risk	17%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Restrictions on Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Restrictions on Cash [Abstract]
Cash on hand or on deposit with the Federal Reserve Bank required to meet regulatory reserve and clearing requirements	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Securities [Abstract]
OTTI charges	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Federal Home Loan Bank (FHLB) Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Federal Home Loan Bank (FHLB) Stock [Abstract]
FHLB stock impaired	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Loans Held for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans Held-for-sale [Abstract]
Net unrealized gains (losses) on loans held for sale	$ 4	$ 51

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Loans (Details)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Loans (Details)	Dec. 31, 2022
Mortgages [Member]
Loans [Abstract]
Period after which interest income on delinquent loans is discontinued	90 days
Commercial [Member]
Loans [Abstract]
Period after which interest income on delinquent loans is discontinued	90 days
Consumer [Member] \| Minimum [Member]
Loans [Abstract]
Past due period after which loans are charged off	120 days

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Allowance for Loan Losses (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) Grade
Residential Mortgage [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
Commercial [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	18 months
Threshold balance of loans evaluated for impairment \| $	$ 500,000
Commercial [Member] \| Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment \| Grade	6
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loans evaluated for impairment \| $	$ 500,000
Commercial Real Estate [Member] \| Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment \| Grade	6
Consumer [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months

SUMMARY OF SIGNIFICANT ACCOU_11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Building and Related Components [Member] \| Minimum [Member]
Premises and Equipment [Abstract]
Useful lives	5 years
Building and Related Components [Member] \| Maximum [Member]
Premises and Equipment [Abstract]
Useful lives	40 years
Furniture Fixture and Equipment [Member] \| Minimum [Member]
Premises and Equipment [Abstract]
Useful lives	3 years
Furniture Fixture and Equipment [Member] \| Maximum [Member]
Premises and Equipment [Abstract]
Useful lives	15 years

SUMMARY OF SIGNIFICANT ACCOU_12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Long-term Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Long-term Assets [Abstract]
Impairment of long term assets	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOU_13

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Mortgage Backed Securities [Member]
Mortgage Banking Derivatives [Abstract]
Fair value of derivatives	$ 0	$ (13)
Interest Rate Lock Commitments [Member]
Mortgage Banking Derivatives [Abstract]
Fair value of derivatives	$ 0	$ 25

SUMMARY OF SIGNIFICANT ACCOU_14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Derivatives (Details) - Swap [Member] - Interest Rate Swap [Member] $ in Millions	Dec. 31, 2022 USD ($) InterestRateSwap	Dec. 31, 2021 USD ($)
Derivatives [Abstract]
Number of freestanding interest rate swaps \| InterestRateSwap	2
Notional amount of agreements	$ 125.3	$ 140.7
Derivative asset fair value	6.5	3.3
Derivative liability fair value	$ 6.5	$ 3.3

SUMMARY OF SIGNIFICANT ACCOU_15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Stock Splits and Dividends (Details)	Dec. 31, 2022
Stock Splits and Dividends [Abstract]
Stock dividends, excess of threshold	20%
Stock dividend threshold or less	20%

SUMMARY OF SIGNIFICANT ACCOU_16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2022 Segment
Segment Reporting [Abstract]
Number of operating segments	1

SUMMARY OF SIGNIFICANT ACCOU_17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Accounting Standards Updates (Details) - ASU No. 2016-13 [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Accounting Standards Updates [Abstract]
Estimated liability for unfunded commitments	$ 60
Minimum [Member]
Accounting Standards Updates [Abstract]
Increase in allowance for credit losses	1,200
Maximum [Member]
Accounting Standards Updates [Abstract]
Increase in allowance for credit losses	$ 2,200

SECURITIES, Available-for-sale

SECURITIES, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Available for Sale, Debt Securities [Abstract]
Amortized cost	$ 539,318	$ 416,439
Gross unrealized gains	82	2,764
Gross unrealized losses	(40,143)	(3,140)
Fair value	499,257	416,063
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	240,921	208,153
Gross unrealized gains	23	215
Gross unrealized losses	(16,310)	(1,523)
Fair value	224,634	206,845
U.S. Agency MBS and CMOs [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	128,165	87,343
Gross unrealized gains	0	416
Gross unrealized losses	(14,347)	(962)
Fair value	113,818	86,797
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	37,198	36,298
Gross unrealized gains	10	1,258
Gross unrealized losses	(498)	0
Fair value	36,710	37,556
Taxable State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	120,647	79,394
Gross unrealized gains	49	812
Gross unrealized losses	(8,525)	(645)
Fair value	112,171	79,561
Corporate Bonds and Other Debt Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	12,387	5,251
Gross unrealized gains	0	63
Gross unrealized losses	(463)	(10)
Fair value	$ 11,924	$ 5,304

SECURITIES, Held-to-maturity Se

SECURITIES, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Held to Maturity [Abstract]
Amortized cost	$ 348,765	$ 137,003
Gross unrealized gains	415
Gross unrealized losses	(16,530)
Fair value	332,650	139,272
U.S. Treasury [Member]
Held to Maturity [Abstract]
Amortized cost	251,307
Gross unrealized gains	0
Gross unrealized losses	(13,677)
Fair value	237,630
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	97,458	137,003
Gross unrealized gains	415	2,484
Gross unrealized losses	(2,853)	(215)
Fair value	$ 95,020	$ 139,272

SECURITIES, Sales of Securities

SECURITIES, Sales of Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SECURITIES [Abstract]
Proceeds from sale of available-for-sale securities	$ 0	$ 0

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 29,311
Due from one to five years	298,700
Due from five to ten years	20,754
Due after ten years	0
Amortized cost	348,765	$ 137,003
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	28,935
Due from one to five years	283,518
Due from five to ten years	20,197
Due after ten years	0
Fair value	332,650	139,272
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	11,372
Due from one to five years	359,411
Due from five to ten years	41,780
Due after ten years	126,755
Amortized cost	539,318	416,439
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	11,293
Due from one to five years	339,059
Due from five to ten years	36,424
Due after ten years	112,481
Fair value	$ 499,257	$ 416,063

SECURITIES, Available for Sale

SECURITIES, Available for Sale - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 322,393	$ 168,320
12 months or more	142,056	23,120
Total	464,449	191,440
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(15,211)	(2,433)
12 months or more	(24,932)	(707)
Total	(40,143)	(3,140)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	144,796	77,066
12 months or more	66,008	18,432
Total	210,804	95,498
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(6,230)	(955)
12 months or more	(10,080)	(568)
Total	(16,310)	(1,523)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	64,427	52,254
12 months or more	41,340	4,190
Total	105,767	56,444
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(4,789)	(830)
12 months or more	(9,558)	(132)
Total	(14,347)	(962)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	31,337	0
12 months or more	0	0
Total	31,337	0
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(498)	0
12 months or more	0	0
Total	(498)	0
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	71,165	37,648
12 months or more	33,452	498
Total	104,617	38,146
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(3,337)	(638)
12 months or more	(5,188)	(7)
Total	(8,525)	(645)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	10,668	1,352
12 months or more	1,256	0
Total	11,924	1,352
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(357)	(10)
12 months or more	(106)	0
Total	$ (463)	$ (10)

SECURITIES, Held to Maturity -

SECURITIES, Held to Maturity - Continuous Unrealized Loss Position (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 295,301,000
12 months or more	21,721,000
Total	317,022,000	$ 61,200,000
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(15,991,000)
12 months or more	(539,000)
Total	(16,530,000)	(215,000)
U.S. Treasury [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	237,630,000
12 months or more	0
Total	237,630,000
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(13,677,000)
12 months or more	0
Total	(13,677,000)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	57,671,000	61,166,000
12 months or more	21,721,000	0
Total	79,392,000	61,166,000
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(2,314,000)	(215,000)
12 months or more	(539,000)	0
Total	$ (2,853,000)	$ (215,000)

SECURITIES, Other-Than-Temporar

SECURITIES, Other-Than-Temporary-Impairment (Details)	12 Months Ended
SECURITIES, Other-Than-Temporary-Impairment (Details)	Dec. 31, 2022 USD ($) Security	Dec. 31, 2021 USD ($) Security	Jan. 02, 2022 USD ($)
Other-Than-Temporary-Impairment [Abstract]
Number of securities available for sale with unrealized losses \| Security	444	127
Total fair value of securities available for sale with unrealized losses	$ 464,449,000	$ 191,440,000
Total unrealized losses of securities available for sale with unrealized losses	$ (40,143,000)	$ (3,140,000)
Number of securities held to maturity with unrealized losses \| Security	76	9
Total fair value of securities held to maturity with unrealized losses	$ 317,022,000	$ 61,200,000
Total unrealized losses of securities held to maturity with unrealized losses	(16,530,000)	(215,000)
OTTI charges	$ 0	$ 0
Amortized cost of securities transferred from available for sale to held to maturity			$ 123,500,000
Unrealized gain on securities transferred from available for sale to held to maturity			$ 113,000

SECURITIES, Pledged Securities

SECURITIES, Pledged Securities and Equity Investments (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Pledged Securities and Equity Investments [Abstract]
Equity investment carried at fair value	$ 1.5	$ 1.5
Asset Pledged as Collateral [Member] \| Public Deposits, Letters of Credit and for Other Purposes [Member]
Pledged Securities and Equity Investments [Abstract]
Debt securities	$ 3.5	$ 4.9

LOANS, Portfolio Loans (Details

LOANS, Portfolio Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Portfolio loans [Abstract]
Total loans	$ 1,177,748	$ 1,108,993
Allowance for loan losses	(15,285)	(15,889)	$ (17,408)
Net loans	1,162,463	1,093,104
Loans and Leases Receivable, Other Information [Abstract]
Deferred fees on loans	1,300	2,600
Deferred costs on loans	1,400	1,300
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	441,716	420,257
Allowance for loan losses	(5,596)	(5,176)	(6,632)
Commercial and Industrial [Member] \| Commercial and Industrial Excluding PPP [Member]
Portfolio loans [Abstract]
Total loans	441,716	378,318
Commercial and Industrial [Member] \| PPP [Member]
Portfolio loans [Abstract]
Total loans	0	41,939
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	537,603	516,101
Allowance for loan losses	(7,180)	(8,051)	(7,999)
Commercial Real Estate [Member] \| Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	7,234	4,862
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	0	5,000
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	36,270	36,240
Commercial Real Estate [Member] \| Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	103	171
Commercial Real Estate [Member] \| Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	112,791	100,077
Commercial Real Estate [Member] \| Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	259,281	259,039
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	121,924	110,712
Consumer [Member]
Portfolio loans [Abstract]
Total loans	198,429	172,635
Allowance for loan losses	(2,458)	(2,633)	$ (2,758)
Consumer [Member] \| Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	139,148	117,800
Consumer [Member] \| Unsecured [Member]
Portfolio loans [Abstract]
Total loans	121	210
Consumer [Member] \| Home Equity [Member]
Portfolio loans [Abstract]
Total loans	56,321	51,269
Consumer [Member] \| Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 2,839	$ 3,356

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 15,889				$ 17,408	$ 15,889	$ 17,408
Charge-offs									(164)	(124)
Recoveries									685	655
Provision for loan losses	$ 375	$ 0	$ 0	(1,500)	$ (750)	$ (550)	$ (750)	0	(1,125)	(2,050)
Ending balance	15,285				15,889				15,285	15,889
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				5,176				6,632	5,176	6,632
Charge-offs									(38)	0
Recoveries									191	331
Provision for loan losses									267	(1,787)
Ending balance	5,596				5,176				5,596	5,176
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				8,051				7,999	8,051	7,999
Charge-offs									0	0
Recoveries									300	208
Provision for loan losses									(1,171)	(156)
Ending balance	7,180				8,051				7,180	8,051
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				2,633				2,758	2,633	2,758
Charge-offs									(126)	(124)
Recoveries									194	116
Provision for loan losses									(243)	(117)
Ending balance	2,458				2,633				2,458	2,633
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 29				$ 19	29	19
Charge-offs									0	0
Recoveries									0	0
Provision for loan losses									22	10
Ending balance	$ 51				$ 29				$ 51	$ 29

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 295	$ 565
Collectively evaluated for impairment	14,990	15,324
Total ending allowance balance	15,285	15,889	$ 17,408
Loans [Abstract]
Individually reviewed for impairment	7,007	7,526
Collectively evaluated for impairment	1,170,741	1,101,467
Total ending loans balance	1,177,748	1,108,993
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	55	303
Collectively evaluated for impairment	5,541	4,873
Total ending allowance balance	5,596	5,176	6,632
Loans [Abstract]
Individually reviewed for impairment	3,603	3,375
Collectively evaluated for impairment	438,113	416,882
Total ending loans balance	441,716	420,257
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	20	24
Collectively evaluated for impairment	7,160	8,027
Total ending allowance balance	7,180	8,051	7,999
Loans [Abstract]
Individually reviewed for impairment	518	1,127
Collectively evaluated for impairment	537,085	514,974
Total ending loans balance	537,603	516,101
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	220	238
Collectively evaluated for impairment	2,238	2,395
Total ending allowance balance	2,458	2,633	2,758
Loans [Abstract]
Individually reviewed for impairment	2,886	3,024
Collectively evaluated for impairment	195,543	169,611
Total ending loans balance	198,429	172,635
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	51	29
Total ending allowance balance	51	29	$ 19
Loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	0	0
Total ending loans balance	$ 0	$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 3,309	$ 1,287
Recorded investment	3,309	1,287
With an allowance recorded [Abstract]
Unpaid principal balance	3,698	6,239
Recorded investment	3,698	6,239
Total [Abstract]
Unpaid principal balance	7,007	7,526
Recorded investment	7,007	7,526
Allowance allocated	295	565
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	3,278	669
Recorded investment	3,278	669
With an allowance recorded [Abstract]
Unpaid principal balance	325	2,706
Recorded investment	325	2,706
Total [Abstract]
Allowance allocated	55	303
Impaired loans [Abstract]
Average of impaired loans	2,703	1,927
Interest income recognized during impairment	423	429
Cash-basis interest income recognized	415	437
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	31	618
Recorded investment	31	618
With an allowance recorded [Abstract]
Unpaid principal balance	487	509
Recorded investment	487	509
Total [Abstract]
Allowance allocated	20	24
Impaired loans [Abstract]
Interest income recognized during impairment	39	91
Cash-basis interest income recognized	39	91
Commercial Real Estate [Member] \| Residential Developed [Member]
Impaired loans [Abstract]
Average of impaired loans	0	11
Commercial Real Estate [Member] \| Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	31	41
Recorded investment	31	41
Impaired loans [Abstract]
Average of impaired loans	42	45
Commercial Real Estate [Member] \| Commercial Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance		577
Recorded investment		577
With an allowance recorded [Abstract]
Unpaid principal balance	307	318
Recorded investment	307	318
Total [Abstract]
Allowance allocated	9	14
Impaired loans [Abstract]
Average of impaired loans	396	1,605
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	180	191
Recorded investment	180	191
Total [Abstract]
Allowance allocated	11	10
Impaired loans [Abstract]
Average of impaired loans	185	148
Consumer [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With an allowance recorded [Abstract]
Unpaid principal balance	2,886	3,024
Recorded investment	2,886	3,024
Total [Abstract]
Allowance allocated	220	238
Impaired loans [Abstract]
Average of impaired loans	2,882	2,731
Interest income recognized during impairment	118	120
Cash-basis interest income recognized	122	123
Consumer [Member] \| Residential Mortgage [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	2,653	2,726
Recorded investment	2,653	2,726
Total [Abstract]
Allowance allocated	202	214
Consumer [Member] \| Unsecured [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	29	64
Recorded investment	29	64
Total [Abstract]
Allowance allocated	2	5
Consumer [Member] \| Home Equity [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	204	234
Recorded investment	204	234
Total [Abstract]
Allowance allocated	$ 16	19
Consumer [Member] \| Other Secured [Member]
With an allowance recorded [Abstract]
Unpaid principal balance		0
Recorded investment		0
Total [Abstract]
Allowance allocated		$ 0

LOANS, Past Due Loans (Details)

LOANS, Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	$ 78	$ 91
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	1,177,748	1,108,993
Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	172	129
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	95	39
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	77	90
Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	1,177,576	1,108,864
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	0
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	441,716	420,257
Commercial and Industrial [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	40
Commercial and Industrial [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	39
Commercial and Industrial [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	1
Commercial and Industrial [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	441,716	420,217
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	0	5
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	537,603	516,101
Commercial Real Estate [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	71	5
Commercial Real Estate [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	71	0
Commercial Real Estate [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	5
Commercial Real Estate [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	537,532	516,096
Commercial Real Estate [Member] \| Residential Developed [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	7,234	4,862
Commercial Real Estate [Member] \| Residential Developed [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	7,234	4,862
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	5,000
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	5,000
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	36,270	36,240
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	36,270	36,240
Commercial Real Estate [Member] \| Commercial Development [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	103	171
Commercial Real Estate [Member] \| Commercial Development [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	103	171
Commercial Real Estate [Member] \| Residential Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		5
Over 90 days accruing		0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	112,791	100,077
Commercial Real Estate [Member] \| Residential Improved [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	5
Commercial Real Estate [Member] \| Residential Improved [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	5
Commercial Real Estate [Member] \| Residential Improved [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	112,791	100,072
Commercial Real Estate [Member] \| Commercial Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0
Over 90 days accruing		0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	259,281	259,039
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	71	0
Commercial Real Estate [Member] \| Commercial Improved [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	71	0
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	259,210	259,039
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	121,924	110,712
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	121,924	110,712
Consumer [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	78	86
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	198,429	172,635
Consumer [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	101	84
Consumer [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	24	0
Consumer [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	77	84
Consumer [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	198,328	172,551
Consumer [Member] \| Residential Mortgage [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	78	86
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	139,148	117,800
Consumer [Member] \| Residential Mortgage [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	77	84
Consumer [Member] \| Residential Mortgage [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Residential Mortgage [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	77	84
Consumer [Member] \| Residential Mortgage [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	139,071	117,716
Consumer [Member] \| Unsecured [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	121	210
Consumer [Member] \| Unsecured [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Unsecured [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Unsecured [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Unsecured [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	121	210
Consumer [Member] \| Home Equity [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	56,321	51,269
Consumer [Member] \| Home Equity [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	24	0
Consumer [Member] \| Home Equity [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	24	0
Consumer [Member] \| Home Equity [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Home Equity [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	56,297	51,269
Consumer [Member] \| Other Secured [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	2,839	3,356
Consumer [Member] \| Other Secured [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Other Secured [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Other Secured [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	0
Consumer [Member] \| Other Secured [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	$ 2,839	$ 3,356

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details)	12 Months Ended
LOANS, Troubled Debt Restructurings (Details)	Dec. 31, 2022 USD ($) Loan Payment Note	Dec. 31, 2021 USD ($) Loan
LOANS [Abstract]
Specific reserves allocated to customers with modified term loans in troubled debt restructurings	$ 295,000	$ 565,000
Number of consecutive payments before nonaccrual restructured loan is upgraded \| Payment	6
Number of months of performance before a loan is removed from TDR	6 months
Troubled debt restructurings [Abstract]
Number of loans \| Loan	39	54
Outstanding recorded balance	$ 7,007,000	$ 7,526,000
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring	0	0
Accruing TDR - accruing at restructuring	3,728,000	4,553,000
Accruing TDR - upgraded to accruing after six consecutive payments	3,279,000	2,968,000
Total	$ 7,007,000	$ 7,521,000
Troubled debt restructurings executed during current period [Abstract]
Number of loans \| Loan	3	0
Pre-TDR balance	$ 449,000	$ 0
Writedown upon TDR	$ 0	$ 0
Commercial Loans [Member] \| A-B Note Structure [Member]
Troubled debt restructured loans [Abstract]
Number of notes into which original note is separated in modification \| Note	2
Commercial and Industrial [Member]
Troubled debt restructurings [Abstract]
Number of loans \| Loan	4	4
Outstanding recorded balance	$ 3,604,000	$ 3,375,000
Troubled debt restructurings executed during current period [Abstract]
Number of loans \| Loan	0	0
Pre-TDR balance	$ 0	$ 0
Writedown upon TDR	$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of loans \| Loan	3	6
Outstanding recorded balance	$ 517,000	$ 1,127,000
Troubled debt restructurings executed during current period [Abstract]
Number of loans \| Loan	0	0
Pre-TDR balance	$ 0	$ 0
Writedown upon TDR	$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of loans \| Loan	32	44
Outstanding recorded balance	$ 2,886,000	$ 3,024,000
Troubled debt restructurings executed during current period [Abstract]
Number of loans \| Loan	3	0
Pre-TDR balance	$ 449,000	$ 0
Writedown upon TDR	$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	12 Months Ended
LOANS, Credit Quality Indicators (Details) $ in Thousands	Dec. 31, 2022 USD ($) Grade	Dec. 31, 2021 USD ($)
Risk grade category of commercial loans by class of loans [Abstract]
Number point grading system used for loan quality \| Grade	8
Total loans	$ 1,177,748	$ 1,108,993
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	979,319	936,358
Commercial Loans [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	15,040	56,979
Commercial Loans [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	51,906	36,178
Commercial Loans [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	336,602	261,958
Commercial Loans [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	557,237	564,306
Commercial Loans [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	15,747	13,300
Commercial Loans [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 2,787	3,632
Internal risk grade category of loans considered substandard, doubtful or loss \| Grade	6
Commercial Loans [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	5
Internal risk grade category of loans considered substandard, doubtful or loss \| Grade	7
Commercial Loans [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	0
Internal risk grade category of loans considered substandard, doubtful or loss \| Grade	8
Commercial and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 441,716	420,257
Commercial and Industrial [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	15,040	56,979
Commercial and Industrial [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	21,451	19,300
Commercial and Industrial [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	175,762	110,877
Commercial and Industrial [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	220,987	227,087
Commercial and Industrial [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	8,309	2,700
Commercial and Industrial [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	167	3,314
Commercial and Industrial [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial and Industrial [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	537,603	516,101
Commercial Real Estate [Member] \| Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,234	4,862
Commercial Real Estate [Member] \| Residential Developed [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,234	4,862
Commercial Real Estate [Member] \| Residential Developed [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	5,000
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	5,000
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	36,270	36,240
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,231	1,763
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	18,406	13,492
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	16,633	20,985
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	103	171
Commercial Real Estate [Member] \| Commercial Development [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	103	171
Commercial Real Estate [Member] \| Commercial Development [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	112,791	100,077
Commercial Real Estate [Member] \| Residential Improved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	25,585	24,450
Commercial Real Estate [Member] \| Residential Improved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	87,176	75,503
Commercial Real Estate [Member] \| Residential Improved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	30	119
Commercial Real Estate [Member] \| Residential Improved [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	5
Commercial Real Estate [Member] \| Residential Improved [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	259,281	259,039
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	17,802	15,115
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	83,769	71,211
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	151,641	165,268
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	5,762	7,127
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	307	318
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	121,924	110,712
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	11,422	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	32,977	41,757
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	73,566	65,601
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,646	3,354
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,313	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	$ 0

LOANS, Commercial Loans Classif

LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commercial loans classified as substandard or worse [Abstract]
Classified as impaired	$ 7,007	$ 7,526
Total ending loans balance	1,177,748	1,108,993
Commercial Loans [Member]
Commercial loans classified as substandard or worse [Abstract]
Total ending loans balance	979,319	936,358
Commercial Loans [Member] \| Substandard or Worse [Member]
Commercial loans classified as substandard or worse [Abstract]
Not classified as impaired	2,422	233
Classified as impaired	365	3,404
Total ending loans balance	$ 2,787	$ 3,637

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	$ 1,177,748	$ 1,108,993
Consumer Loan [Member] \| Residential Mortgage [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	139,148	117,800
Consumer Loan [Member] \| Residential Mortgage [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	139,071	117,716
Consumer Loan [Member] \| Residential Mortgage [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	77	84
Consumer Loan [Member] \| Consumer Unsecured [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	121	210
Consumer Loan [Member] \| Consumer Unsecured [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	121	210
Consumer Loan [Member] \| Consumer Unsecured [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	0	0
Consumer Loan [Member] \| Home Equity [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	56,321	51,269
Consumer Loan [Member] \| Home Equity [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	56,321	51,269
Consumer Loan [Member] \| Home Equity [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	0	0
Consumer Loan [Member] \| Consumer Other [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	2,839	3,356
Consumer Loan [Member] \| Consumer Other [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	2,839	3,356
Consumer Loan [Member] \| Consumer Other [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	$ 0	$ 0

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	12 Months Ended
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Jan. 30, 2023
Other real estate owned [Roll Forward]
Beginning balance	$ 2,369	$ 2,731
Additions, transfers from loans	0	0
Proceeds from sales of other real estate owned and repossessed assets	(47)	(170)
Valuation allowance reversal upon sale	(26)	(172)
Gain (loss) on sales of other real estate owned and repossessed assets	47	(20)
Ending balance, gross	2,343	2,369
Less: valuation allowance	0	(26)
Ending balance	2,343	2,343
Activity in valuation allowance [Roll Forward]
Beginning balance	26	194
Additions charged to expense	0	4
Reversals upon sale	(26)	(172)
Ending balance	0	$ 26
Foreclosed residential real estate properties included in other real estate owned	0
Consumer mortgage loans in process of foreclosure	$ 0
Subsequent Event [Member]
Other real estate owned [Roll Forward]
Ending balance			$ 0

FAIR VALUE, Assets and Liabilit

FAIR VALUE, Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 499,257	$ 416,063
Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	328	2,903
U.S. Treasury and Federal Agency Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	224,634	206,845
U.S. Agency MBS and CMOs [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	113,818	86,797
Tax-Exempt State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	36,710	37,556
Taxable State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	112,171	79,561
Corporate Bonds and Other Debt Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,924	5,304
Recurring Basis [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	215	1,407
Interest rate swaps	6,463	3,277
Total assets measured at fair value on recurring basis	507,239	422,217
Interest rate swaps	(6,463)	(3,277)
Total liabilities measured at fair value on recurring basis	(6,463)	(3,277)
Recurring Basis [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	0	0
Total assets measured at fair value on recurring basis	0	0
Interest rate swaps	0	0
Total liabilities measured at fair value on recurring basis	0	0
Recurring Basis [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	215	1,407
Interest rate swaps	6,463	3,277
Total assets measured at fair value on recurring basis	507,239	422,217
Interest rate swaps	(6,463)	(3,277)
Total liabilities measured at fair value on recurring basis	(6,463)	(3,277)
Recurring Basis [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	0	0
Total assets measured at fair value on recurring basis	0	0
Interest rate swaps	0	0
Total liabilities measured at fair value on recurring basis	0	0
Recurring Basis [Member] \| U.S. Treasury and Federal Agency Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	224,634	206,845
Recurring Basis [Member] \| U.S. Treasury and Federal Agency Securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| U.S. Treasury and Federal Agency Securities [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	224,634	206,845
Recurring Basis [Member] \| U.S. Treasury and Federal Agency Securities [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| U.S. Agency MBS and CMOs [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	113,818	86,797
Recurring Basis [Member] \| U.S. Agency MBS and CMOs [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| U.S. Agency MBS and CMOs [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	113,818	86,797
Recurring Basis [Member] \| U.S. Agency MBS and CMOs [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Tax-Exempt State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	36,710	37,556
Recurring Basis [Member] \| Tax-Exempt State and Municipal Bonds [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Tax-Exempt State and Municipal Bonds [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	36,710	37,556
Recurring Basis [Member] \| Tax-Exempt State and Municipal Bonds [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Taxable State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	112,171	79,561
Recurring Basis [Member] \| Taxable State and Municipal Bonds [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Taxable State and Municipal Bonds [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	112,171	79,561
Recurring Basis [Member] \| Taxable State and Municipal Bonds [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Corporate Bonds and Other Debt Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,924	5,304
Recurring Basis [Member] \| Corporate Bonds and Other Debt Securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Corporate Bonds and Other Debt Securities [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,924	5,304
Recurring Basis [Member] \| Corporate Bonds and Other Debt Securities [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] \| Other Equity Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Equity securities	1,304	1,470
Recurring Basis [Member] \| Other Equity Securities [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Equity securities	0	0
Recurring Basis [Member] \| Other Equity Securities [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Equity securities	1,304	1,470
Recurring Basis [Member] \| Other Equity Securities [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Equity securities	0	0
Nonrecurring Basis [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	328	2,903
Nonrecurring Basis [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Nonrecurring Basis [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Nonrecurring Basis [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	$ 328	$ 2,903

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans	$ 328	$ 2,903
Sales Comparison Approach [Member] \| Adjustment for Differences Between Comparable Sales [Member] \| Minimum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable inputs	0.015	0.015
Sales Comparison Approach [Member] \| Adjustment for Differences Between Comparable Sales [Member] \| Maximum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable inputs	0.20	0.20
Income Approach [Member] \| Capitalization Rate [Member] \| Minimum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable inputs	0.095	0.095
Income Approach [Member] \| Capitalization Rate [Member] \| Maximum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Impaired loans, unobservable inputs	0.11	0.11

FAIR VALUE, Carrying Amounts an

FAIR VALUE, Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial assets [Abstract]
Cash and due from banks	$ 51,215	$ 23,669
Federal funds sold and other short-term investments	703,955	1,128,119
Bank owned life insurance	53,345	52,468
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	51,215	23,669
Federal funds sold and other short-term investments	703,955	1,128,119
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	51,215	23,669
Federal funds sold and other short-term investments	703,955	1,128,119
Significant Other Observable Inputs (Level 2) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Loans, net	1,162,135	1,090,201
Accrued interest receivable	7,606	4,088
Financial liabilities [Abstract]
Deposits	(2,615,142)	(2,577,958)
Other borrowed funds	(30,000)	(85,000)
Accrued interest payable	(114)	(72)
Significant Other Observable Inputs (Level 2) [Member] \| Carrying Amount [Member] \| U.S. Treasury Member]
Financial assets [Abstract]
Securities held to maturity	251,307	0
Significant Other Observable Inputs (Level 2) [Member] \| Fair Value [Member]
Financial assets [Abstract]
Loans, net	1,131,387	1,106,324
Accrued interest receivable	7,606	4,088
Financial liabilities [Abstract]
Deposits	(2,615,860)	(2,577,885)
Other borrowed funds	(28,666)	(86,322)
Accrued interest payable	(114)	(72)
Significant Other Observable Inputs (Level 2) [Member] \| Fair Value [Member] \| U.S. Treasury Member]
Financial assets [Abstract]
Securities held to maturity	237,630	0
Significant Unobservable Inputs (Level 3) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
FHLB stock	10,211	11,558
Bank owned life insurance	53,345	52,468
Significant Unobservable Inputs (Level 3) [Member] \| Carrying Amount [Member] \| Tax-Exempt State and Municipal Bonds [Member]
Financial assets [Abstract]
Securities held to maturity	97,458	137,003
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value [Member]
Financial assets [Abstract]
FHLB stock	10,211	11,558
Bank owned life insurance	53,345	52,468
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value [Member] \| Tax-Exempt State and Municipal Bonds [Member]
Financial assets [Abstract]
Securities held to maturity	$ 95,020	$ 139,272

FAIR VALUE, Off-balance Sheet (

FAIR VALUE, Off-balance Sheet (Details) - Loan Commitments [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	$ 77,384	$ 128,648
Carrying Amount [Member]
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	0	0
Fair Value [Member]
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	$ 0	$ 0

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair value of derivative instruments [Abstract]
Derivative liability	$ 0	$ 1,000
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Securities pledged as collateral	$ 1,700	$ 3,000
Interest Rate Swap [Member] \| Other Assets [Member]
Fair value of derivative instruments [Abstract]
Notional amount	62,661	70,356
Fair value	6,463	3,277
Interest Rate Swap [Member] \| Other Liabilities [Member]
Fair value of derivative instruments [Abstract]
Notional amount	62,661	70,356
Fair value	$ 6,463	$ 3,277

PREMISES AND EQUIPMENT - NET (D

PREMISES AND EQUIPMENT - NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Premises and equipment [Abstract]
Premises and equipment, gross	$ 79,093	$ 82,547
Less accumulated depreciation	(38,787)	(40,774)
Premises and equipment, net	40,306	41,773
Depreciation expense	2,300	2,500
Land [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	15,861	15,861
Building [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	44,879	44,701
Leasehold Improvements [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	248	253
Furniture and Equipment [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	18,055	21,732
Construction in Progress [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	$ 50	$ 0

LEASES (Details)

LEASES (Details)	12 Months Ended
LEASES (Details)	Dec. 31, 2022 USD ($) Office	Dec. 31, 2021 USD ($)
Lease description [Abstract]
Number of offices leased \| Office	4
weighted average remaining life of the lease term	2 years
Weighted average discount rate for leases	0.58%
Right-of-use assets	$ 625,000	$ 866,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Lease liabilities	$ 627,000	$ 861,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Operating lease expense	$ 451,000	$ 431,000
Future undiscounted lease payments for operating leases [Abstract]
2023	360,000
2024	155,000
2025	114,000
2026	0
2027	0
Thereafter	0
Total undiscounted lease payments	629,000
Less effect of discounting	(2,000)
Present value of estimated lease payments (lease liability)	$ 627,000	$ 861,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 834,879,000	$ 886,115,000
Interest bearing demand	760,889,000	736,573,000
Savings and money market accounts	922,418,000	865,528,000
Certificates of deposit	96,956,000	89,742,000
Total deposits	2,615,142,000	2,577,958,000
Maturities distribution of time deposits [Abstract]
2023	59,326,000
2024	35,756,000
2025	1,067,000
2026	489,000
2027	259,000
Thereafter	59,000
Total certificate of deposit	96,956,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits that exceeded FDIC insurance limit	$ 29,700,000	$ 28,200,000

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 30,000	$ 85,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	446,100	361,900
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	30,000	85,000
Federal Home Loan Bank Advances [Member] \| Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 10,000	$ 30,000
Range of maturities	2024
Range of maturities, earliest		2023
Range of maturities, last		2024
Federal Home Loan Bank Advances [Member] \| Single Maturity Fixed Rate Advances [Member] \| Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	2.63%	2.87%
Federal Home Loan Bank Advances [Member] \| Putable Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 20,000	$ 55,000
Range of maturities	2024
Range of maturities, earliest		2024
Range of maturities, last		2031
Federal Home Loan Bank Advances [Member] \| Putable Advances [Member] \| Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.81%	0.74%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	May 27, 2022	Apr. 21, 2022	Jan. 21, 2022	Dec. 31, 2022	Dec. 31, 2021
Scheduled repayments of FHLB advances [Abstract]
2023				$ 0
2024				30,000
2025				0
2026				0
2027				0
Thereafter				0
Total				30,000	$ 85,000
Other Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance amount	$ 20,000
Prepayment penalty	$ 87
Other Advances [Member] \| Minimum [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance interest rate	2.91%
Other Advances [Member] \| Maximum [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance interest rate	3.05%
Federal Home Loan Bank Advances [Member]
Scheduled repayments of FHLB advances [Abstract]
Total				$ 30,000	$ 85,000
Federal Home Loan Bank, Advances, Putable Option [Member] \| Federal Home Loan Bank Advances [Member] \| FHLB Advance One [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance amount			$ 25,000
FHLB advance interest rate			0.01%
FHLB advance maturity date			Jul. 21, 2031
FHLB advance paid off			$ 25,000
Federal Home Loan Bank, Advances, Putable Option [Member] \| Federal Home Loan Bank Advances [Member] \| FHLB Advance Two [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance amount			$ 25,000
FHLB advance interest rate			0.05%
FHLB advance maturity date			Jan. 21, 2032
FHLB advance paid off		$ 25,000
Federal Home Loan Bank, Advances, Putable Option [Member] \| Federal Home Loan Bank Advances [Member] \| FHLB Advance Three [Member]
Advances from Federal Home Loan Bank [Abstract]
FHLB advance amount	$ 10,000
FHLB advance interest rate	0.45%
FHLB advance paid off	$ 10,000

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt instruments [Abstract]
Loans	$ 1,162,463	$ 1,093,104
Federal Reserve Bank Borrowings [Member]
Debt instruments [Abstract]
Borrowings outstanding	0	0
Unused borrowing capacity	5,500	4,000
Federal Reserve Bank Borrowings [Member] \| Asset Pledged as Collateral [Member]
Debt instruments [Abstract]
Loans	$ 5,800	$ 4,400

LONG TERM DEBT (Details)

LONG TERM DEBT (Details) - Macatawa Statutory Trust II [Member] - USD ($) $ in Thousands		12 Months Ended
	Jul. 07, 2021	Dec. 31, 2022
Debt Instruments [Abstract]
Description of variable rate basis		three-month LIBOR
Maturity date		Mar. 18, 2034
LIBOR [Member]
Debt Instruments [Abstract]
Basis spread on three-month LIBOR		2.75%
Term of variable rate		3 months
Common Securities [Member]
Debt Instruments [Abstract]
Aggregate liquidation amount of pooled trust preferred securities		$ 619
Amount of securities associated with trust preferred securities redeemed	$ 619
Preferred Securities [Member]
Debt Instruments [Abstract]
Aggregate liquidation amount of pooled trust preferred securities		$ 20,000
Amount of securities associated with trust preferred securities redeemed	$ 20,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans to principal officers, directors, and their affiliates [Roll Forward]
Beginning balance	$ 25,779	$ 26,815
New loans and renewals	14,535	9,450
Repayments and renewals	(14,407)	(10,486)
Effect of changes in related parties	0	0
Ending balance	25,907	25,779
Principal Officers, Directors, and Affiliates [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Deposits from principal officers, directors, and affiliates	153,300	205,400
Director [Member] \| Back-to-Back Swap Agreement [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Notional amount of agreement	$ 10,700	$ 12,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	12 Months Ended
STOCK-BASED COMPENSATION (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Restricted Stock [Member]
Stock-based compensation [Abstract]
Award vesting period	3 years
Changes in nonvested restricted stock awards, shares [Roll Forward]
Outstanding, beginning of period (in shares)	183,551
Granted (in shares)	67,603
Vested (in shares)	(83,220)
Forfeited (in shares)	(9,847)
Outstanding, end of period (in shares)	158,087	183,551
Weighted-average grant-date fair value [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 8.63
Granted (in dollars per share)	11.18
Vested (in dollars per share)	8.8
Forfeited (in dollars per share)	8.8
Outstanding, end of period (in dollars per share)	$ 9.62	$ 8.63
Aggregate intrinsic value [Roll Forward]
Outstanding, beginning of period	$ 2,024,568
Granted	745,661
Vested	(917,917)
Forfeited	(108,612)
Outstanding, end of period	1,743,700	$ 2,024,568
Share-based compensation cost	703,000	684,000
Total remaining unrecognized compensation cost related to nonvested shares	$ 1,400,000
Weighted-average period for recognition for unrecognized compensation cost	1 year 5 months 1 day
Total grant date fair value of shares vested	$ 732,000	$ 660,000
Restricted Stock [Member] \| Each Year [Member]
Stock-based compensation [Abstract]
Award vesting rate	33%
2015 Plan [Member]
Stock-based compensation [Abstract]
Number of shares permitted under the plan (in shares)	1,500,000
Shares available for issuance (in shares)	973,550

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($)	12 Months Ended
EMPLOYEE BENEFITS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Employee Benefits [Abstract]
Employer matching contribution up to first 3%	100%	100%
Employee contribution threshold for matching percentage	3%	2%
Employer matching contribution in excess of first 3%	50%
Maximum employer matching contribution	5%
Employer contributions	$ 755,000	$ 412,000

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income	$ 12,118	$ 10,045	$ 6,568	$ 6,000	$ 6,216	$ 7,202	$ 7,818	$ 7,778	$ 34,731	$ 29,014
Weighted average shares outstanding, including participating stock awards - Basic (in shares)									34,259,604	34,202,179
Dilutive potential common shares [Abstract]
Stock options (in shares)									0	0
Weighted average shares outstanding - Diluted (in shares)									34,259,604	34,202,179
Basic earnings per common share (in dollars per share)	$ 0.35	$ 0.29	$ 0.19	$ 0.18	$ 0.18	$ 0.21	$ 0.23	$ 0.23	$ 1.01	$ 0.85
Diluted earnings per common share (in dollars per share)	$ 0.35	$ 0.29	$ 0.19	$ 0.18	$ 0.18	$ 0.21	$ 0.23	$ 0.23	$ 1.01	$ 0.85

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income tax expense [Abstract]
Current	$ 7,567	$ 5,615
Deferred	766	1,095
Income tax expense	$ 8,333	$ 6,710
Reconciliation of difference between financial statement tax expense and amount computed by applying statutory federal tax rate to pretax income [Abstract]
Statutory rate	21%	21%
Statutory rate applied to income before taxes	$ 9,044	$ 7,502
Adjust for [Abstract]
Tax-exempt interest income	(589)	(642)
Bank-owned life insurance	(184)	(217)
Other, net	62	67
Income tax expense	8,333	6,710
Deferred tax assets [Abstract]
Allowance for loan losses	3,210	3,337
Net deferred loan fees	0	275
Nonaccrual loan interest	12	57
Valuation allowance on other real estate owned and property held for sale	0	6
Unrealized loss on securities available for sale	8,394	79
Other	257	311
Gross deferred tax assets	11,873	4,065
Valuation allowance	0	0
Total net deferred tax assets	11,873	4,065
Deferred tax liabilities [Abstract]
Depreciation	(1,098)	(1,199)
Prepaid expenses	(309)	(288)
Net deferred loan costs	(21)	0
Other	(733)	(415)
Gross deferred tax liabilities	(2,161)	(1,902)
Net deferred tax asset	9,712	2,163
Unrecognized tax benefits	$ 0	$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease	12 months

COMMITMENTS AND OFF BALANCE-S_3

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Notional amount of commitments to fund mortgage loans to be sold into the secondary market	$ 0	$ 1,300
Commitments to make loans at fixed rates	72%
Expiration period of commitment to make variable rate loan	30 days
Commitments to Extend Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 77,384	128,648
Letters of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	13,455	10,141
Unused Lines of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	745,674	677,902
Commitment to Sell Mortgage-Backed Securities [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 0	$ 9,500

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ in Thousands	12 Months Ended
SHAREHOLDERS' EQUITY (Details) $ in Thousands	Dec. 31, 2022 USD ($) Category	Dec. 31, 2021 USD ($)
SHAREHOLDERS' EQUITY [Abstract]
Number of classification of prompt corrective action regulations \| Category	5
Actual capital levels and minimum required levels [Abstract]
CET1 capital (to risk weighted assets), actual amount	$ 278,615	$ 254,302
CET1 capital (to risk weighted assets), actual ratio	0.169	0.172
Tier 1 capital (to risk weighted assets), actual amount	$ 278,615	$ 254,302
Tier 1 capital (to risk weighted assets), actual ratio	0.169	0.172
Total capital (to risk weighted assets), actual amount	$ 293,900	$ 270,191
Total capital (to risk weighted assets), actual ratio	0.179	0.183
Tier 1 capital (to average assets), actual amount	$ 278,615	$ 254,302
Tier 1 capital (to average assets), actual ratio	0.097	0.087
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 74,003	$ 66,381
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.045	0.045
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 98,670	$ 88,508
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.06	0.06
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 131,561	$ 118,011
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.08	0.08
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 114,589	$ 116,664
Tier 1 capital (to average assets), minimum capital adequacy, ratio	0.04	0.04
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 115,116	$ 103,259
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.07	0.07
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 139,783	$ 125,386
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.085	0.085
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 172,673	$ 154,889
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.105	0.105
Bank [Member]
Actual capital levels and minimum required levels [Abstract]
CET1 capital (to risk weighted assets), actual amount	$ 270,274	$ 246,239
CET1 capital (to risk weighted assets), actual ratio	0.164	0.167
Tier 1 capital (to risk weighted assets), actual amount	$ 270,274	$ 246,239
Tier 1 capital (to risk weighted assets), actual ratio	0.164	0.167
Total capital (to risk weighted assets), actual amount	$ 285,559	$ 262,128
Total capital (to risk weighted assets), actual ratio	0.174	0.178
Tier 1 capital (to average assets), actual amount	$ 270,274	$ 246,239
Tier 1 capital (to average assets), actual ratio	0.094	0.084
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 73,992	$ 66,370
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.045	0.045
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 98,655	$ 88,493
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	0.06	0.06
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 131,540	$ 117,991
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.08	0.08
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 114,582	$ 116,654
Tier 1 capital (to average assets), minimum capital adequacy, ratio	0.04	0.04
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 115,098	$ 103,242
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.07	0.07
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 139,762	$ 125,365
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.085	0.085
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 172,647	$ 154,863
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	0.105	0.105
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 106,877	$ 95,867
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.065	0.065
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 131,540	$ 117,991
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.08	0.08
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 164,426	$ 147,488
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	0.10	0.10
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount	$ 143,227	$ 145,818
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	0.05	0.05

CONDENSED FINANCIAL STATEMENT_3

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
ASSETS [Abstract]
Cash and cash equivalents	$ 755,170	$ 1,151,788
Other assets	17,526	14,993
Total assets	2,906,919	2,928,751
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Long-term debt	0	0
Total liabilities	2,659,881	2,674,746
Total shareholders' equity	247,038	254,005	$ 239,843
Total liabilities and shareholders' equity	2,906,919	2,928,751
Parent Company [Member]
ASSETS [Abstract]
Cash and cash equivalents	8,092	7,831
Investments in Bank subsidiary	238,697	245,942
Investment in other subsidiaries	0	0
Other assets	249	249
Total assets	247,038	254,022
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Long-term debt	0	0
Other liabilities	0	17
Total liabilities	0	17
Total shareholders' equity	247,038	254,005
Total liabilities and shareholders' equity	$ 247,038	$ 254,022

CONDENSED FINANCIAL STATEMENT_4

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
EXPENSE [Abstract]
Interest expense									$ 4,760	$ 2,565
Income before income tax									43,064	35,724
Income tax benefit									8,333	6,710
Net income	$ 12,118	$ 10,045	$ 6,568	$ 6,000	$ 6,216	$ 7,202	$ 7,818	$ 7,778	34,731	29,014
Comprehensive income									3,452	24,503
Parent Company [Member]
INCOME [Abstract]
Dividends from subsidiaries									11,913	33,118
Other									0	0
Total income									11,913	33,118
EXPENSE [Abstract]
Interest expense									0	319
Other expense									801	822
Total expense									801	1,141
Income before income tax and equity in undistributed earnings of subsidiaries									11,112	31,977
Equity in undistributed earnings of subsidiaries									23,445	(3,211)
Income before income tax									34,557	28,766
Income tax benefit									(174)	(248)
Net income									34,731	29,014
Comprehensive income									$ 3,452	$ 24,503

CONDENSED FINANCIAL STATEMENT_5

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities [Abstract]
Net income	$ 12,118	$ 10,045	$ 6,568	$ 6,000	$ 6,216	$ 7,202	$ 7,818	$ 7,778	$ 34,731	$ 29,014
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Stock compensation expense									703	684
Net cash from operating activities									34,800	35,924
Cash flows from investing activities [Abstract]
Net cash from investing activities									(402,480)	69,401
Cash flows from financing activities [Abstract]
Cash dividends paid									(10,915)	(10,895)
Repurchases of shares									(207)	(130)
Net cash from financing activities									(28,938)	262,727
Net change in cash and cash equivalents									(396,618)	368,052
Cash and cash equivalents at beginning of period				1,151,788				783,736	1,151,788	783,736
Cash and cash equivalents at end of period	755,170				1,151,788				755,170	1,151,788
Parent Company [Member]
Cash flows from operating activities [Abstract]
Net income									34,731	29,014
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Equity in undistributed earnings of subsidiaries									(23,445)	3,211
Stock compensation expense									114	89
Change in other assets									0	(41)
Change in other liabilities									(17)	(135)
Net cash from operating activities									11,383	32,138
Cash flows from investing activities [Abstract]
Investment in subsidiaries									0	0
Net cash from investing activities									0	0
Cash flows from financing activities [Abstract]
Repayment of other borrowings									0	(20,000)
Cash dividends paid									(10,915)	(10,895)
Repurchases of shares									(207)	(130)
Net cash from financing activities									(11,122)	(31,025)
Net change in cash and cash equivalents									261	1,113
Cash and cash equivalents at beginning of period				$ 7,831				$ 6,718	7,831	6,718
Cash and cash equivalents at end of period	$ 8,092				$ 7,831				$ 8,092	$ 7,831

QUARTERLY FINANCIAL DATA (Una_3

QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Interest income	$ 25,454	$ 20,875	$ 15,435	$ 13,143	$ 13,334	$ 14,842	$ 15,184	$ 15,274	$ 74,906	$ 58,634
Net interest income	22,867	19,771	14,843	12,665	12,826	14,296	14,457	14,490	70,146	56,069
Provision for loan losses	375	0	0	(1,500)	(750)	(550)	(750)	0	(1,125)	(2,050)
Net income	$ 12,118	$ 10,045	$ 6,568	$ 6,000	$ 6,216	$ 7,202	$ 7,818	$ 7,778	$ 34,731	$ 29,014
Earnings per common share, basic (in dollars per share)	$ 0.35	$ 0.29	$ 0.19	$ 0.18	$ 0.18	$ 0.21	$ 0.23	$ 0.23	$ 1.01	$ 0.85
Earnings per common share, diluted (in dollars per share)	$ 0.35	$ 0.29	$ 0.19	$ 0.18	$ 0.18	$ 0.21	$ 0.23	$ 0.23	$ 1.01	$ 0.85