Macatawa Bank (MCBC) 10-Q27 Apr 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	Apr. 27, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,292,294

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 29,402	$ 51,215
Federal funds sold and other short-term investments	391,336	703,955
Cash and cash equivalents	420,738	755,170
Debt securities available for sale, at fair value	525,959	499,257
Debt securities held to maturity (fair value 2023 - $335,559 and 2022 - $332,650)	348,387	348,765
Federal Home Loan Bank (FHLB) stock	10,211	10,211
Loans held for sale, at fair value	87	215
Total loans	1,220,939	1,177,748
Allowance for credit losses	(16,794)	(15,285)
Net loans	1,204,145	1,162,463
Premises and equipment - net	40,249	40,306
Accrued interest receivable	8,782	7,606
Bank-owned life insurance	53,557	53,345
Other real estate owned - net	0	2,343
Net deferred tax asset	8,471	9,712
Other assets	16,567	17,526
Total assets	2,637,153	2,906,919
Deposits
Noninterest-bearing	690,444	834,879
Interest-bearing	1,640,451	1,780,263
Total deposits	2,330,895	2,615,142
Other borrowed funds	30,000	30,000
Accrued expenses and other liabilities	15,690	14,739
Total liabilities	2,376,585	2,659,881
Commitments and Contingencies
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 34,929,294 and 34,298,640 shares issued and outstanding at March 31, 2023 and December 31, 2022	219,733	219,578
Retained earnings	67,092	59,036
Accumulated other comprehensive loss	(26,257)	(31,576)
Total shareholders' equity	260,568	247,038
Total liabilities and shareholders' equity	$ 2,637,153	$ 2,906,919

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Debt securities held to maturity, fair value	$ 335,559	$ 332,650
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)	34,292,294	34,298,640
Common stock, shares outstanding (in shares)	34,292,294	34,298,640

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands		3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands		Mar. 31, 2023	Mar. 31, 2022
Interest income
Loans, including fees		$ 15,660	$ 10,397
Securities
Taxable		4,481	1,434
Tax-exempt		698	732
FHLB Stock		65	51
Federal funds sold and other short-term investments		6,362	529
Total interest income		27,266	13,143
Interest expense
Deposits		4,494	158
Other borrowings		156	320
Total interest expense		4,650	478
Net interest income		22,616	12,665
Provision for credit losses	[1]	0	(1,500)
Net interest income after provision for credit losses		22,616	14,165
Noninterest income
Service charges and fees		994	1,211
Net gains on mortgage loans		11	308
Trust fees		1,033	1,088
ATM and debit card fees		1,662	1,599
Bank owned life insurance ("BOLI") income		199	240
Other		629	519
Total noninterest income		4,528	4,965
Noninterest expense
Salaries and benefits		6,698	6,289
Occupancy of premises		1,137	1,172
Furniture and equipment		1,031	1,016
Legal and professional		348	194
Marketing and promotion		219	195
Data processing		955	884
FDIC assessment		330	180
Interchange and other card expense		384	373
Bond and D&O Insurance		122	130
Other		941	1,306
Total noninterest expenses		12,165	11,739
Income before income tax		14,979	7,391
Income tax expense		2,975	1,391
Net income		$ 12,004	$ 6,000
Basic earnings per common share (in dollars per share)		$ 0.35	$ 0.18
Diluted earnings per common share (in dollars per share)		0.35	0.18
Cash dividends per common share (in dollars per share)		$ 0.08	$ 0.08

[1]Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income	$ 12,004	$ 6,000
Unrealized gains (losses):
Net change in unrealized gains (losses) on debt securities available for sale	6,738	(15,119)
Net unrealized gain at time of transfer on securities transferred to held-to-maturity	0	113
Amortization of net unrealized gains on securities transferred to held-to-maturity	(5)	(6)
Tax effect	(1,414)	3,153
Net change in unrealized gains (losses) on debt securities available for sale, net of tax	5,319	(11,859)
Less: reclassification adjustments:
Reclassification for gains included in net income	0	0
Tax effect	0	0
Reclassification for gains included in net income, net of tax	0	0
Other comprehensive income (loss), net of tax	5,319	(11,859)
Comprehensive income (loss)	$ 17,323	$ (5,859)

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	Cumulative Effect, Period of Adoption, Adjustment, Net of Tax [Member] Common Stock [Member]	Cumulative Effect, Period of Adoption, Adjustment, Net of Tax [Member] Retained Earnings [Member]	Cumulative Effect, Period of Adoption, Adjustment, Net of Tax [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Effect, Period of Adoption, Adjustment, Net of Tax [Member]
Balance at Dec. 31, 2021	$ 219,082	$ 35,220	$ (297)	$ 254,005
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	6,000	0	6,000
Cash dividends	0	(2,728)	0	(2,728)
Repurchase of shares for taxes withheld on vested restricted stock	(13)	0	0	(13)
Other comprehensive income (loss), net of tax	0	0	(11,859)	(11,859)
Stock compensation expense	197	0	0	197
Balance at Mar. 31, 2022	219,266	38,492	(12,156)	245,602
Balance at Dec. 31, 2022	219,578	59,036	(31,576)	247,038
Balance (ASU 2016-13 [Member]) at Dec. 31, 2022					$ 0	$ (1,215)	$ 0	$ (1,215)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	12,004	0	12,004
Cash dividends	0	(2,733)	0	(2,733)
Repurchase of shares for taxes withheld on vested restricted stock	(15)	0	0	(15)
Other comprehensive income (loss), net of tax	0	0	5,319	5,319
Stock compensation expense	170	0	0	170
Balance at Mar. 31, 2023	$ 219,733	$ 67,092	$ (26,257)	$ 260,568

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend per share (in dollars per share)	$ 0.08	$ 0.08
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares)	1,338	1,338

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income		$ 12,004	$ 6,000
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		160	737
Stock compensation expense		170	197
Provision for credit losses	[1]	0	(1,500)
Origination of loans for sale		(179)	(10,148)
Proceeds from sales of loans originated for sale		318	11,008
Net gains on mortgage loans		(11)	(308)
Net gain on sales of other real estate		(356)	0
Deferred income tax expense		150	456
Earnings in bank-owned life insurance		(199)	(240)
Change in accrued interest receivable and other assets		(217)	504
Change in accrued expenses and other liabilities		889	(551)
Net cash from operating activities		12,729	6,155
Cash flows from investing activities
Loan originations and payments, net		(43,158)	7,318
Purchases of securities available for sale		(24,072)	(72,557)
Purchases of securities held to maturity		(3,966)	(28,120)
Proceeds from:
Maturities and calls of securities available for sale		1,626	5,187
Maturities and calls of securities held to maturity		1,126	31,238
Principal paydowns on securities available for sale		2,878	4,554
Principal paydowns on securities held to maturity		3,197	2,667
Sales of other real estate		2,699	0
Redemption of FHLB stock		0	1,347
Additions to premises and equipment		(496)	(235)
Net cash from investing activities		(60,166)	(48,601)
Cash flows from financing activities
Change in deposits		(284,247)	4,339
Repayments and maturities of other borrowed funds		0	(25,000)
Proceeds from other borrowed funds		0	25,000
Repurchase of shares for taxes withheld on vested restricted stock		(15)	(13)
Cash dividends paid		(2,733)	(2,728)
Net cash from financing activities		(286,995)	1,598
Net change in cash and cash equivalents		(334,432)	(40,848)
Cash and cash equivalents at beginning of period		755,170	1,151,788
Cash and cash equivalents at end of period		420,738	1,110,940
Supplemental cash flow information
Interest paid		4,307	481
Supplemental noncash disclosures:
Security settlement		0	5,747
Transfer of securities from available for sale to held to maturity		$ 0	$ 123,469

[1]Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation (“FDIC”). 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. Recent Events In early March 2023, over the course of five days, three large financial institutions in the United States failed. Silvergate Bank self liquidated and Silicon Valley Bank and Signature Bank were both closed by the FDIC. These bank failures were driven by rapid withdrawals by depositors with large uninsured balances held at these institutions and losses incurred by these banks in liquidating their bond portfolios to provide liquidity to fund these deposit outflows. Silvergate Bank’s failure was also caused by its exposure to FTX and Alameda cryptocurrency firm failures. The FDIC determined that Silicon Valley Bank and Signature Bank were systemically important and fully guaranteed their depositor balances above the $250,000 FDIC insurance limit. Given the sharp increase in market interest rates during 2022 and into 2023, most financial institutions’ bond portfolios have significant unrealized loss positions. In response to this, the Federal Reserve Bank (“FRB”) created a new borrowing facility called the Bank Term Funding Program. This program allows a bank to borrow against its investment portfolio, at par value, with no reduction for unrealized losses. The term is for one year and interest rate is fixed at the time the advance is taken and there is no prepayment penalty. Allowable investments for pledge are those the FRB can own. This would include all of the Company’s investment securities except municipal securities and corporate bonds. At March 31, 2023, the Company had no advances under this program and had $642.2 million in unused borrowing capacity under this program. The program expires on March 11, 2024. At March 31, 2023, the Company had $391.3 million in federal funds sold and overnight balances and had borrowing capacity of $951 million, Bank Term Funding Program discussed above. At March 31, 2023, these liquidity sources exceeded the amount of the Company’s uninsured deposit balances. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) believed necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) FASB issued ASU No. 2016-13, as amended, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU, commonly referred to as Current Expected Credit Loss (“CECL”), provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance eliminates the probable initial recognition threshold and, instead, reflects an entity’s current estimate of all expected credit losses. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Although an entity may still use its current systems and methods for recording the allowance for credit losses, under the new rules, the inputs used to record the allowance for credit losses generally will need to change to appropriately reflect an estimate of all expected credit losses and the use of reasonable and supportable forecasts. FASB also issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross chargeoffs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty The Company adopted these standards as required on January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. The transition adjustment of the CECL adoption included an increase in the allowance for loans of $1.5 million and an increase of $62,000 to establish a reserve for unfunded commitments, with a $1.2 million decrease to retained earnings, with the $323,000 income tax portion being recorded as part of the deferred tax asset in the Company’s Consolidated Balance Sheet. Allowance for Credit Losses (“ACL”) - Loans The allowance is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for allowance calculation. Commercial loans are divided into eight segments based primarily on property type and risk characteristics. They are further segmented based on commercial loan risk grade. Retail loans are segmented into categories including residential mortgage, home equity, unsecured and other secured and then further segmented based on delinquency status. The Company’s loan portfolio classes as of March 31, 2023 were as follows: Commercial Loans: Commercial and Industrial Residential developed NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unsecured to residential developers Vacant and unimproved Commercial development Residential improved Commercial improved Manufacturing and industrial Consumer Loans: Residential mortgage Unsecured Home equity Other secured The remaining life methodology is used for all loan pools. This nondiscounted cash flow approach projects an estimated future amortized cost basis based on current loan balance and repayment terms. Given the bank’s limited loss history over the past twelve years, a loss rate computed for a comparable sized peer group (banks with assets between $1-3 billion) is then applied to future loan balances at the instrument level based on the remaining contractual life adjusted for amortization, prepayment and default to develop a baseline lifetime loss. The baseline lifetime loss is adjusted for changes in macroeconomic conditions over the reasonable and supportable forecast period and reversion periods. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reasonable and supportable economic forecasts have to be incorporated in determining expected losses. The forecast period represents the time frame from the current period end through the point in time that the Company can reasonably forecast. Ideally, the economic forecast period would cover the contractual terms of all loans; however, the ability to produce a forecast that is both reasonable and supportable becomes more difficult the longer the period is projected. For periods beyond the forecast period, the loss rate reverts back to the long term historical loss average. As of January 1, 2023 and March 31, 2023, the Company used a one-year reasonable and supportable economic forecast period, with a six-month straight-line reversion period for all loan segments. In determining the reasonable and supportable economic forecast period, the Company used a consensus economic forecast from a third-party provider that provided forecasts from twenty five leading economists. The Company considered the March 2023 report’s consensus/mean estimates for gross domestic product and unemployment rates and selected a loss period for the reasonable and supportable forecast period that most closely matched that consensus (December 2006 to September 2007). At adoption of CECL on January 1, 2023, the Company considered the December 2022 report for these same metrics and used a loss period from September 2007 to December 2007. The effect of changing the loss period from that used at January 1, 2023 to March 31, 2023 was a reduction in the historical loss rate used at March 31, 2023. A number of qualitative factors are considered including economic forecast uncertainty, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, impact of rising interest rates, external factors and other considerations. During each reporting period, management also considers the need to adjust the baseline lifetime loss rates for factors that may cause expected losses to differ from those experienced in the historical loss periods. The Company is also required to consider expected credit losses associated with loan commitments over the contractual period in which it is exposed to credit risk on the underlying commitments. Any allowance for off-balance sheet credit exposures is reported as an other liability on the Company’s Consolidated Balance Sheet and is increased or decreased via other noninterest expense on the Company’s Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same methodology, inputs and assumptions as the funded portion of loans at the segment level applied to the amount of commitments expected to be funded. 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. Accrued interest on loans totaled $3.8 million at March 31, 2023 and $4.0 million at December 31, 2022. Accrued interest receivable for loans is included as a separate line item on the Company’s Consolidated Balance Sheet. The Company elected not to measure an allowance for accrued interest receivable and instead elected to reverse accrued interest income on loans that are placed on nonaccrual status. The Company believes this policy results in the timely reversal of uncollectible interest. 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. 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. Accrued interest receivable on securities totaled $4.5 million at March 31, 2023 and $3.4 million at December 31, 2022. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACL - Securities Available for Sale ACL - Securities Held to Maturity 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 penalties related to income tax matters in income tax expense. 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. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 $4,000 at March 31, 2023 and $0 at December 31, 2022. The net fair value of mortgage backed security derivatives was ($3,000) at March 31, 2023 and $0 at December 31, 2022. Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. As of March 31, 2023 and December 31, 2022, these loans had net unrealized gains of $5,000 and $4,000, respectively, which are reflected in their carrying value. Changes in fair value of loans held for sale are included in net gains on mortgage loans. Loans are sold with servicing released; therefore no mortgage servicing right assets are established. Newly Issued Not Yet Effective Standards : FASB issued ASU 2023-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements . This standard requires entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. The standard is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within these fiscal years. As the Company does not have any such common control leases, adoption of this standard will not have any immediate impact.

SECURITIES

SECURITIES	3 Months Ended
SECURITIES	Mar. 31, 2023
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31 2023 Available for Sale U.S. Treasury and federal agency securities $ 255,211 $ 175 $ (13,528 ) $ 241,858 U.S. Agency MBS and CMOs 134,956 81 (12,793 ) 122,244 Tax-exempt state and municipal bonds 37,142 77 (270 ) 36,949 Taxable state and municipal bonds 119,862 149 (6,874 ) 113,137 Corporate bonds and other debt securities 12,112 4 (345 ) 11,771 $ 559,283 $ 486 $ (33,810 ) $ 525,959 Held to Maturity U.S. Treasury $ 251,286 $ — $ (11,274 ) $ 240,012 Tax-exempt state and municipal bonds 97,101 552 (2,106 ) 95,547 $ 348,387 $ 552 $ (13,380 ) $ 335,559 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 There were no sales of securities in the three month periods ended March 31, 2023 and 2022. NOTE 2 – SECURITIES On January 1, 2022, the Company reclassified ten U.S. Treasury securities with an amortized cost of $123.5 million from available for sale to held to maturity, as it has the intent and ability to hold these securities to maturity. These securities had net unrealized gains of $113,000 at the date of transfer, which will continue to be reported in accumulated other comprehensive income, and will be amortized over the remaining life of the securities as an adjustment of yield. The effect on interest income of the amortization of net unrealized gains is offset by the amortization of the premium on the securities transferred. Contractual maturities of debt securities at March 31, 2023 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 $ 58,157 $ 57,487 $ 22,431 $ 22,106 Due from one to five years 272,386 260,375 369,226 352,338 Due from five to ten years 17,844 17,697 34,295 30,814 Due after ten years — — 133,331 120,701 $ 348,387 $ 335,559 $ 559,283 $ 525,959 Securities with unrealized losses at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 90,278 $ (2,249 ) $ 125,775 $ (11,279 ) $ 216,053 $ (13,528 ) U.S. Agency MBS and CMOs 31,574 (1,021 ) 64,296 (11,772 ) 95,870 (12,793 ) Tax-exempt state and municipal bonds 17,744 (103 ) 5,541 (167 ) 23,285 (270 ) Taxable state and municipal bonds 41,608 (989 ) 58,236 (5,885 ) 99,844 (6,874 ) Corporate bonds and other debt securities 7,462 (148 ) 3,839 (197 ) 11,301 (345 ) Total $ 188,666 $ (4,510 ) $ 257,687 $ (29,300 ) $ 446,353 $ (33,810 ) Held to Maturity U.S. Treasury $ 114,386 $ (5,063 ) $ 125,626 $ (6,211 ) $ 240,012 $ (11,274 ) Tax-exempt state and municipal bonds 26,395 (384 ) 49,855 (1,722 ) 76,250 (2,106 ) $ 140,781 $ (5,447 ) $ 175,481 $ (7,933 ) $ 316,262 $ (13,380 ) NOTE 2 – SECURITIES 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 ) Management evaluates securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In analyzing an issuer’s financial condition, Management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. At March 31, 2023, 413 securities available for sale with fair values totaling $446.4 million had unrealized losses totaling $33.8 million. For securities available for sale with unrealized losses, management considered the financial condition of the issuer and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2023, 66 securities held to maturity with fair values totaling $316.3 million had unrealized losses totaling $13.4 million. Management has the intent and ability to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities. Management determined that the unrealized losses for each period and each investment were attributable to changes in interest rates and not due to credit quality. As such, no allowance for credit losses on securities available for sale or held to maturity have been established as of March 31, 2023. Securities with a carrying value of approximately $3.6 million and $3.5 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2023 and December 31, 2022, respectively.

LOANS

LOANS	3 Months Ended
LOANS	Mar. 31, 2023
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): March 31, 2023 December 31, 2022 Commercial and industrial $ 473,354 $ 441,716 Commercial real estate: Residential developed 7,001 7,234 Unsecured to residential developers — — Vacant and unimproved 38,700 36,270 Commercial development 99 103 Residential improved 116,177 112,791 Commercial improved 255,894 259,281 Manufacturing and industrial 125,477 121,924 Total commercial real estate 543,348 537,603 Consumer: Residential mortgage 148,676 139,148 Unsecured 106 121 Home equity 52,647 56,321 Other secured 2,808 2,839 Total consumer 204,237 198,429 Total loans 1,220,939 1,177,748 Allowance for credit losses (16,794 ) (15,285 ) $ 1,204,145 $ 1,162,463 The totals above are shown net of deferred fees and costs. Deferred fees on loans totaled $1.3 million and $1.3 million at March 31, 2023 and December 31, 2022, respectively. Deferred costs on loans totaled $1.4 million and $1.4 million at March 31, 2023 and December 31, 2022, respectively. NOTE 3 – LOANS Activity in the allowance for credit losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31 2023 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance, prior to adoption of ASU 2016-03 $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 Impact of adoption of ASU 2016-03 1,299 (212 ) 389 — 1,476 Charge-offs — — (21 ) — (21 ) Recoveries 9 3 42 — 54 Provision for credit losses (1) 220 (201 ) (50 ) 31 — Ending Balance $ 7,124 $ 6,770 $ 2,818 $ 82 $ 16,794 Three months ended March 31 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Charge-offs — — (35 ) — (35 ) Recoveries 5 233 24 — 262 Provision for credit losses (1) 148 (1,213 ) (469 ) 34 (1,500 ) Ending Balance $ 5,329 $ 7,071 $ 2,153 $ 63 $ 14,616 (1) Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology. The following table presents gross chargeoffs for the three months ended March 31, 2023 by portfolio class and origination year (dollars in thousands): Term Loans By Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — Commercial development — — — — — — — — Commercial improved — — — — — — — — Manufacturing and industrial — — — — — — — — Residential development — — — — — — — — Residential improved — — — — — — — — Vacant and unimproved — — — — — — — — Total commercial — — — — — — — — Residential mortgage — — — — — — — — Consumer unsecured — — — — — — — — Home equity — — — — — — — — Other — — — — — — 21 21 Total consumer — — — — — — 21 21 Total loans — — — — — — 21 21 NOTE 3 – LOANS Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Under CECL for collateral dependent loans, the Company has adopted the practical expedient to measure the allowance on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral, which is adjusted for liquidation costs/discounts, and the loan’s amortized cost. If the fair value of the collateral exceeds the loan’s amortized cost, no allowance is necessary. The Company’s policy is to obtain appraisals on any significant pieces of collateral. For real estate collateral that is in industries that are undergoing significant stress, or properties that are specialized use or have limited marketability, higher discounts are applied in determining fair value. There have been no significant changes to the types of collateral securing our collateral dependent loans. The amortized cost of collateral-dependent loans by class as of March 31, 2023 was as follows (dollars in thousands): Collateral Type March 31, 2023 Real Estate Other Allowance Allocated Commercial and industrial $ — $ — $ — Commercial real estate: Residential developed — — — Unsecured to residential developers — — — Vacant and unimproved — — — Commercial development — — — Residential improved 30 — — Commercial improved 303 — 6 Manufacturing and industrial — — — 333 — 6 Consumer Residential mortgage — — — Unsecured — — — Home equity — — — Other secured — — — Consumer — — — Total $ 333 $ — $ 6 The following table presents the balance in the allowance for credit 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 credit 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 NOTE 3 – 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 Year-To-Date Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 3,278 $ 3,278 $ — $ 2,338 Commercial real estate: Residential improved 31 31 — 33 31 31 — 33 Consumer — — — — Total with no related allowance recorded $ 3,309 $ 3,309 $ — $ 2,371 With an allowance recorded: Commercial and industrial $ 325 $ 325 $ 55 $ 365 Commercial real estate: Commercial improved 307 307 9 313 Manufacturing and industrial 180 180 11 185 487 487 20 498 Consumer: Residential mortgage 2,653 2,653 202 2,619 Unsecured 29 29 2 29 Home equity 204 204 16 234 2,886 2,886 220 2,882 Total with an allowance recorded $ 3,698 $ 3,698 $ 295 $ 3,745 Total $ 7,007 $ 7,007 $ 295 $ 6,116 NOTE 3 – 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 March 31, 2023 and December 31, 2022: March 31, 2023 Nonaccrual with No Allowance Nonaccrual with Allowance Total Nonaccrual Over 90 days Accruing Total Nonperforming Loans Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate: Residential developed — — — — — Unsecured to residential developers — — — — — Vacant and unimproved — — — — — Commercial development — — — — — Residential Improved — — — — — Commercial improved — — — — — Manufacturing and industrial — — — — — — — — — — Consumer: Residential mortgage — 75 75 — 75 Unsecured — — — — — Home equity — — — — — Other secured — — — — — — 75 75 — 75 Total $ — $ 75 $ 75 $ — $ 75 December 31, 2022 Nonaccrual with No Allowance Nonaccrual with Allowance Total Nonaccrual Over 90 days Accruing Total Nonperforming Loans Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate: Residential developed — — — — — Unsecured to residential developers — — — — — Vacant and unimproved — — — — — Commercial development — — — — — Residential improved — — — — — Commercial improved — — — — — Manufacturing and industrial — — — — — — — — — — Consumer: Residential mortgage — 78 78 — 78 Unsecured — — — — — Home equity — — — — — Other secured — — — — — — 78 78 — 78 Total $ — $ 78 $ 78 $ — $ 78 No interest income was recognized on nonaccrual loans during the three months ended March 31, 2023. NOTE 3 – LOANS The following table presents the aging of the recorded investment in past due loans as of March 31, 2023 and December 31, 2022 by class of loans (dollars in thousands): March 31, 2023 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 473,354 $ 473,354 Commercial real estate: Residential developed — — — 7,001 7,001 Unsecured to residential developers — — — — — Vacant and unimproved — — — 38,700 38,700 Commercial development — — — 99 99 Residential improved — — — 116,177 116,177 Commercial improved 83 — 83 255,811 255,894 Manufacturing and industrial — — — 125,477 125,477 83 — 83 543,265 543,348 Consumer: Residential mortgage 120 74 194 148,482 148,676 Unsecured — — — 106 106 Home equity — — — 52,647 52,647 Other secured — — — 2,808 2,808 120 74 194 204,043 204,237 Total $ 203 $ 74 $ 277 $ 1,220,662 $ 1,220,939 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 NOTE 3 – LOANS At times, the Company will modify terms of a loan to allow the customer 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. 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. As with other individually reviewed loans, an allowance for loan loss is estimated for each such modification made to borrowers experiencing financial difficulty based on the most likely source of repayment for each loan. For 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 individually reviewed 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 such loans, 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 modifications to borrowers experiencing financial difficulty 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 modifications to borrowers experiencing financial difficulty as of March 31, 2023 (dollars in thousands): March 31, 2023 Number of Loans Outstanding Recorded Balance Percentage to Total Loans Commercial and industrial 3 $ 309 0.07 % Commercial real estate 3 509 0.09 % Consumer 32 2,847 1.39 % 38 $ 3,665 0.30 % NOTE 3 – LOANS T he following table presents information related to modifications to borrowers experiencing financial difficulty as of March 31, 2023. The table presents the amount of accruing modifications that were on nonaccrual status prior to the modification, accruing at the time of modification and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the modified terms as of the period March 31, 2023 Accruing - nonaccrual at modification $ — Accruing - accruing at modification 3,665 Accruing - upgraded to accruing after six consecutive payments — $ 3,665 There were no modifications made to borrowers experiencing financial difficulty during the three month period ended March 31, 2023. There were no defaults on loans with modifications to borrowers experiencing financial difficulty during the three month periods ended March 31, 2023 and the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of modification 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 As of December 31, 2022, the risk grade category of commercial loans by class of loans were 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 NOTE 3 – LOANS The following table summarizes loan ratings by grade for commercial loans (dollars in thousands): Term Loans Amortized Cost Basis By Origination Year and Risk Grades March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Commercial Commercial and industrial Grades 1-3 $ 14,305 $ 60,752 $ 18,955 $ 7,346 $ 14,878 $ 47,073 $ 70,542 $ 233,851 Grade 4 12,017 46,095 24,990 26,313 10,486 30,408 77,814 228,123 Grade 5 — 342 43 407 99 115 10,246 11,252 Grade 6 — 41 49 — — 38 — 128 Grade 7-8 — — — — — — — — $ 26,322 $ 107,230 $ 44,037 $ 34,066 $ 25,463 $ 77,634 $ 158,602 $ 473,354 Commercial development Grades 1-3 $ — $ 99 $ — $ — $ — $ — $ — $ 99 Grade 4 — — — — — — — — Grade 5 — — — — — — — — Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ — $ 99 $ — $ — $ — $ — $ — $ 99 Commercial improved Grades 1-3 $ 6,992 $ 18,654 $ 33,327 $ 10,894 $ 14,484 $ 17,925 $ 2,915 $ 105,191 Grade 4 1,778 37,516 37,376 43,647 17,937 3,321 3,200 144,775 Grade 5 — 148 — 29 2,227 3,171 50 5,625 Grade 6 — — 303 — — — — 303 Grade 7-8 — — — — — — — — $ 8,770 $ 56,318 $ 71,006 $ 54,570 $ 34,648 $ 24,417 $ 6,165 $ 255,894 Manufacturing and industrial Grades 1-3 $ 786 $ 17,839 $ 4,829 $ 8,562 $ 4,370 $ 7,459 $ 430 $ 44,275 Grade 4 6,709 27,464 15,090 7,933 5,805 14,188 145 77,334 Grade 5 — 177 94 — — 810 495 1,576 Grade 6 — — — — — 2,292 — 2,292 Grade 7-8 — — — — — — — — $ 7,495 $ 45,480 $ 20,013 $ 16,495 $ 10,175 $ 24,749 $ 1,070 $ 125,477 Residential development Grades 1-3 $ — $ — $ — $ — $ — $ — $ — $ — Grade 4 322 3,837 1,455 — — — 1,387 7,001 Grade 5 — — — — — — — — Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 322 $ 3,837 $ 1,455 $ — $ — $ — $ 1,387 $ 7,001 Residential improved Grades 1-3 $ 4,587 $ 7,574 $ 1,442 $ 9,544 $ 258 $ 5,442 $ 401 $ 29,248 Grade 4 4,037 568 30,241 1,988 7,233 15,710 27,122 86,899 Grade 5 — — 30 — — — — 30 Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 8,624 $ 8,142 $ 31,713 $ 11,532 $ 7,491 $ 21,152 $ 27,523 $ 116,177 Vacant and unimproved Grades 1-3 $ — $ 4,503 $ 7,725 $ 7,210 $ — $ 110 $ 646 $ 20,194 Grade 4 952 2,897 3,721 8,332 163 117 982 17,164 Grade 5 1,342 — — — — — — 1,342 Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 2,294 $ 7,400 $ 11,446 $ 15,542 $ 163 $ 227 $ 1,628 $ 38,700 Total Commercial Grades 1-3 $ 26,670 $ 109,421 $ 66,278 $ 43,556 $ 33,990 $ 78,009 $ 74,934 $ 432,858 Grade 4 25,815 118,377 112,873 88,213 41,624 63,744 110,650 561,296 Grade 5 1,342 667 167 436 2,326 4,096 10,791 19,825 Grade 6 — 41 352 — — 2,330 — 2,723 Grade 7-8 — — — — — — — — $ 53,827 $ 228,506 $ 179,670 $ 132,205 $ 77,940 $ 148,179 $ 196,375 $ 1,016,702 NOTE 3 – LOANS The Company considers the performance of the loan portfolio and its impact on the allowance for credit 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 table presents the recorded investment in consumer loans by year of origination and based on delinquency status at March 31, 2023 (dollars in thousands): Term Loans Amortized Cost Basis By Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Retail Residential mortgage Performing $ 17,336 $ 42,826 $ 27,298 $ 10,419 $ 5,322 $ 33,520 $ 11,880 $ 148,601 Nonperforming — — — — — 75 — 75 $ 17,336 $ 42,826 $ 27,298 $ 10,419 $ 5,322 $ 33,595 $ 11,880 $ 148,676 Consumer unsecured Performing $ — $ — $ — $ 13 $ 15 $ 26 $ 52 $ 106 Nonperforming — — — — — — — — $ — $ — $ — $ 13 $ 15 $ 26 $ 52 $ 106 Home equity Performing $ 71 $ 901 $ 233 $ 489 $ 249 $ 2,324 $ 48,380 $ 52,647 Nonperforming — — — — — — — — $ 71 $ 901 $ 233 $ 489 $ 249 $ 2,324 $ 48,380 $ 52,647 Other Performing $ 304 $ 1,133 $ 687 $ 360 $ 100 $ 224 $ — $ 2,808 Nonperforming — — — — — — — — $ 304 $ 1,133 $ 687 $ 360 $ 100 $ 224 $ — $ 2,808 Total Retail $ 17,711 $ 44,860 $ 28,218 $ 11,281 $ 5,686 $ 36,169 $ 60,312 $ 204,237 The following table presents the recorded investment in consumer loans based on payment status at December 31, 2022 (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

FAIR VALUE

FAIR VALUE	3 Months Ended
FAIR VALUE	Mar. 31, 2023
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 4 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Investment Securities Loans Held for Sale Impaired Loans Loans identified as impaired are measured using one of three methods: the loan’s observable market price, the fair value of collateral or the present value of expected future cash flows. For each period presented, no impaired loans were measured using the loan’s observable market price. If an impaired loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. The fair value of collateral of impaired loans is generally based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other Real Estate Owned Interest Rate Swaps NOTE 4 – FAIR VALUE Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2023 Available for sale securities U.S. Treasury and federal agency securities $ 241,858 $ — $ 241,858 $ — U.S. Agency MBS and CMOs 122,244 — 122,244 — Tax-exempt state and municipal bonds 36,949 — 36,949 — Taxable state and municipal bonds 113,137 — 113,137 — Corporate bonds and other debt securities 11,771 — 11,771 — Other equity securities 1,321 — 1,321 — Loans held for sale 87 — 87 — Interest rate swaps 5,294 — 5,294 — Total assets measured at fair value on recurring basis $ 532,661 $ — $ 532,661 $ — Interest rate swaps (5,294 ) — (5,294 ) — Total liabilities measured at fair value on recurring basis $ (5,294 ) $ — $ (5,294 ) $ — 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 ) $ — Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2023 Collateral dependent loans $ 327 $ — $ — $ 327 December 31, 2022 Impaired loans $ 328 $ — $ — $ 328 NOTE 4 – FAIR VALUE Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2023 Collateral dependent loans $ 327 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, 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 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at March 31, 2023 and December 31, 2022 (dollars in thousands): Level in March 31, 2023 December 31, 2022 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 29,402 $ 29,402 $ 51,215 $ 51,215 Federal funds sold and other short-term investments Level 1 391,336 391,336 703,955 703,955 Securities held to maturity - U.S. Treasury Level 2 251,286 240,012 251,307 237,630 Securities held to maturity - tax-exempt and muni Level 3 97,101 95,547 97,458 95,020 FHLB stock Level 3 10,211 10,211 10,211 10,211 Loans, net Level 2 1,203,818 1,185,925 1,162,135 1,131,387 Bank owned life insurance Level 3 53,557 53,557 53,345 53,345 Accrued interest receivable Level 2 8,782 8,782 7,606 7,606 Financial liabilities Deposits Level 2 (2,330,895 ) (2,331,330 ) (2,615,142 ) (2,615,860 ) Other borrowed funds Level 2 (30,000 ) (28,824 ) (30,000 ) (28,666 ) Accrued interest payable Level 2 (228 ) (228 ) (114 ) (114 ) 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, or 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 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	3 Months Ended
DERIVATIVES	Mar. 31, 2023
DERIVATIVES [Abstract]
DERIVATIVES	NOTE 5 - 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 notional and fair value of derivative instruments as of March 31, 2023 and December 31, 2022 are reflected in the following table (dollars in thousands): Notional Amount Balance Sheet Location Fair Value March 31, 2023 Derivative assets Interest rate swaps $ 57,560 Other Assets $ 5,294 Derivative liabilities Interest rate swaps 57,560 Other Liabilities 5,294 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 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 $5.3 million and $6.5 million as of March 31, 2023 and December 31, 2022, 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. Securities pledged as collateral totaling $1.8 million and $1.7 million were provided to the counterparty correspondent bank as of March 31, 2023 and December 31, 2022, respectively. Interest rate swaps entered into with commercial loan customers had notional amounts aggregating $57.6 million as of March 31, 2023 and $62.7 million at December 31, 2022. Associated credit exposure is generally mitigated by securing the interest rate swaps with the underlying collateral of the loan instrument that has been hedged.

DEPOSITS

DEPOSITS	3 Months Ended
DEPOSITS	Mar. 31, 2023
DEPOSITS [Abstract]
DEPOSITS	NOTE 6 – DEPOSITS Deposits are summarized as follows (dollars in thousands): March 31, 2023 December 31, 2022 Noninterest-bearing demand $ 690,444 $ 834,879 Interest bearing demand 608,967 760,889 Savings and money market accounts 858,895 922,418 Certificates of deposit 172,589 96,956 $ 2,330,895 $ 2,615,142 Time deposits that exceeded the FDIC insurance limit of $250,000 were approximately $56.1 million at March 31, 2023 and $29.7 million at December 31, 2022.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	3 Months Ended
OTHER BORROWED FUNDS	Mar. 31, 2023
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 7 - 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 period-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 March 31, 2023 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, 2022 Single maturity fixed rate advances $ 10,000 February 2024 2.63 % Putable advances 20,000 November 2024 1.81 % $ 30,000 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. These advances were collateralized by residential and commercial real estate loans totaling $453.2 million and $446.1 million under a blanket lien arrangement at March 31, 2023 NOTE 7 - OTHER BORROWED FUNDS (Continued) Scheduled repayments of FHLB advances as of March 31, 2023 were as follows (in thousands): 2023 $ — 2024 30,000 2025 — 2026 — 2027 — Thereafter — $ 30,000 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at March 31 , 2023 and December 31, 2022 March 31, 2023 and December 31, 2022

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
EARNINGS PER COMMON SHARE	Mar. 31, 2023
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 8 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three month periods ended March 31, 2023 and 2022 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Net income available to common shares $ 12,004 $ 6,000 Weighted average shares outstanding, including participating stock awards - Basic 34,297,221 34,254,772 Dilutive potential common shares: Stock options — — Weighted average shares outstanding - Diluted 34,297,221 34,254,772 Basic earnings per common share $ 0.35 $ 0.18 Diluted earnings per common share $ 0.35 $ 0.18 There were no antidilutive shares of common stock in the three month periods ended March 31, 2023 and 2022.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	3 Months Ended
FEDERAL INCOME TAXES	Mar. 31, 2023
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Current $ 2,825 $ 935 Deferred 150 456 $ 2,975 $ 1,391 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): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Statutory rate 21 % 21 % Statutory rate applied to income before taxes $ 3,146 $ 1,552 Deduct Tax-exempt interest income (147 ) (154 ) Bank-owned life insurance (42 ) (50 ) Other, net 18 43 $ 2,975 $ 1,391 The realization of deferred tax assets 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 at March 31, 2023 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): March 31, 2023 December 31, 2022 Deferred tax assets Allowance for loan losses $ 3,527 $ 3,210 Net deferred loan fees — — Nonaccrual loan interest 12 12 Valuation allowance on other real estate owned — — Unrealized loss on securities available for sale and transferred to held to maturity 6,980 8,394 Other 297 257 Gross deferred tax assets 10,816 11,873 Valuation allowance — — Total net deferred tax assets 10,816 11,873 Deferred tax liabilities Depreciation (1,104 ) (1,098 ) Net deferred loan fees (20 ) (309 ) Prepaid expenses (309 ) (21 ) Other (912 ) (733 ) Gross deferred tax liabilities (2,345 ) (2,161 ) Net deferred tax asset $ 8,471 $ 9,712 There were no unrecognized tax benefits at March 31, 2023 or December 31, 2022 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 2020.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	3 Months Ended
COMMITMENTS AND OFF BALANCE-SHEET RISK	Mar. 31, 2023
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 10 – 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. 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. 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. At March 31, 2023, the reserve for unfunded commitments was $61,000 and was included in other liabilities in the Company’s consolidated balance sheet. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 115,100 $ 77,384 Letters of credit 11,937 13,455 Unused lines of credit 719,013 745,674 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $82,000 and $0 at March 31, 2023 and December 31, 2022, 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 approximately $1.1 million and $0 at March 31, 2023 and December 31, 2022, respectively. At March 31, 2023, approximately 67.2% 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 prime or one month term SOFR and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime or SOFR.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
CONTINGENCIES	Mar. 31, 2023
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of March 31, 2023, there were no material pending legal proceedings to which the Company or any of its subsidiaries are a party or which any of its properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
SHAREHOLDERS' EQUITY	Mar. 31, 2023
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12 – 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. NOTE 12 – SHAREHOLDERS’ EQUITY (Continued) 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%. At March 31, 2023 and December 31, 2022 Minimum Capital Minimum Capital Adequacy With To Be Well Capitalized Under Prompt Corrective Actual Adequacy Capital Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2023 CET1 capital (to risk weighted assets) Consolidated $ 286,826 17.1 % $ 75,561 4.5 % $ 117,539 7.0 % N/A N/A Bank 278,347 16.6 75,558 4.5 117,535 7.0 $ 109,139 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 286,826 17.1 100,748 6.0 142,726 8.5 N/A N/A Bank 278,347 16.6 100,744 6.0 142,720 8.5 134,325 8.0 Total capital (to risk weighted assets) Consolidated 303,620 18.1 134,331 8.0 176,309 10.5 N/A N/A Bank 295,141 17.6 134,325 8.0 176,302 10.5 167,906 10.0 Tier 1 capital (to average assets) Consolidated 286,826 10.3 111,845 4.0 N/A N/A N/A N/A Bank 278,347 10.0 111,839 4.0 N/A N/A 139,799 5.0 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 The Bank was categorized as “well capitalized” at March 31, 2023 and December 31, 2022.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation (“FDIC”). 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.
Recent Events	Recent Events In early March 2023, over the course of five days, three large financial institutions in the United States failed. Silvergate Bank self liquidated and Silicon Valley Bank and Signature Bank were both closed by the FDIC. These bank failures were driven by rapid withdrawals by depositors with large uninsured balances held at these institutions and losses incurred by these banks in liquidating their bond portfolios to provide liquidity to fund these deposit outflows. Silvergate Bank’s failure was also caused by its exposure to FTX and Alameda cryptocurrency firm failures. The FDIC determined that Silicon Valley Bank and Signature Bank were systemically important and fully guaranteed their depositor balances above the $250,000 FDIC insurance limit. Given the sharp increase in market interest rates during 2022 and into 2023, most financial institutions’ bond portfolios have significant unrealized loss positions. In response to this, the Federal Reserve Bank (“FRB”) created a new borrowing facility called the Bank Term Funding Program. This program allows a bank to borrow against its investment portfolio, at par value, with no reduction for unrealized losses. The term is for one year and interest rate is fixed at the time the advance is taken and there is no prepayment penalty. Allowable investments for pledge are those the FRB can own. This would include all of the Company’s investment securities except municipal securities and corporate bonds. At March 31, 2023, the Company had no advances under this program and had $642.2 million in unused borrowing capacity under this program. The program expires on March 11, 2024. At March 31, 2023, the Company had $391.3 million in federal funds sold and overnight balances and had borrowing capacity of $951 million, Bank Term Funding Program discussed above. At March 31, 2023, these liquidity sources exceeded the amount of the Company’s uninsured deposit balances.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) believed necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates
Allowance for Credit Losses ("ACL") - Loans	FASB issued ASU No. 2016-13, as amended, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU, commonly referred to as Current Expected Credit Loss (“CECL”), provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance eliminates the probable initial recognition threshold and, instead, reflects an entity’s current estimate of all expected credit losses. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Although an entity may still use its current systems and methods for recording the allowance for credit losses, under the new rules, the inputs used to record the allowance for credit losses generally will need to change to appropriately reflect an estimate of all expected credit losses and the use of reasonable and supportable forecasts. FASB also issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross chargeoffs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty The Company adopted these standards as required on January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. The transition adjustment of the CECL adoption included an increase in the allowance for loans of $1.5 million and an increase of $62,000 to establish a reserve for unfunded commitments, with a $1.2 million decrease to retained earnings, with the $323,000 income tax portion being recorded as part of the deferred tax asset in the Company’s Consolidated Balance Sheet. Allowance for Credit Losses (“ACL”) - Loans The allowance is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for allowance calculation. Commercial loans are divided into eight segments based primarily on property type and risk characteristics. They are further segmented based on commercial loan risk grade. Retail loans are segmented into categories including residential mortgage, home equity, unsecured and other secured and then further segmented based on delinquency status. The Company’s loan portfolio classes as of March 31, 2023 were as follows: Commercial Loans: Commercial and Industrial Residential developed NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unsecured to residential developers Vacant and unimproved Commercial development Residential improved Commercial improved Manufacturing and industrial Consumer Loans: Residential mortgage Unsecured Home equity Other secured The remaining life methodology is used for all loan pools. This nondiscounted cash flow approach projects an estimated future amortized cost basis based on current loan balance and repayment terms. Given the bank’s limited loss history over the past twelve years, a loss rate computed for a comparable sized peer group (banks with assets between $1-3 billion) is then applied to future loan balances at the instrument level based on the remaining contractual life adjusted for amortization, prepayment and default to develop a baseline lifetime loss. The baseline lifetime loss is adjusted for changes in macroeconomic conditions over the reasonable and supportable forecast period and reversion periods. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reasonable and supportable economic forecasts have to be incorporated in determining expected losses. The forecast period represents the time frame from the current period end through the point in time that the Company can reasonably forecast. Ideally, the economic forecast period would cover the contractual terms of all loans; however, the ability to produce a forecast that is both reasonable and supportable becomes more difficult the longer the period is projected. For periods beyond the forecast period, the loss rate reverts back to the long term historical loss average. As of January 1, 2023 and March 31, 2023, the Company used a one-year reasonable and supportable economic forecast period, with a six-month straight-line reversion period for all loan segments. In determining the reasonable and supportable economic forecast period, the Company used a consensus economic forecast from a third-party provider that provided forecasts from twenty five leading economists. The Company considered the March 2023 report’s consensus/mean estimates for gross domestic product and unemployment rates and selected a loss period for the reasonable and supportable forecast period that most closely matched that consensus (December 2006 to September 2007). At adoption of CECL on January 1, 2023, the Company considered the December 2022 report for these same metrics and used a loss period from September 2007 to December 2007. The effect of changing the loss period from that used at January 1, 2023 to March 31, 2023 was a reduction in the historical loss rate used at March 31, 2023. A number of qualitative factors are considered including economic forecast uncertainty, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, impact of rising interest rates, external factors and other considerations. During each reporting period, management also considers the need to adjust the baseline lifetime loss rates for factors that may cause expected losses to differ from those experienced in the historical loss periods. The Company is also required to consider expected credit losses associated with loan commitments over the contractual period in which it is exposed to credit risk on the underlying commitments. Any allowance for off-balance sheet credit exposures is reported as an other liability on the Company’s Consolidated Balance Sheet and is increased or decreased via other noninterest expense on the Company’s Consolidated Statement of Income. The calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be funded over their estimated lives. The allowance is calculated using the same methodology, inputs and assumptions as the funded portion of loans at the segment level applied to the amount of commitments expected to be funded. 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. Accrued interest on loans totaled $3.8 million at March 31, 2023 and $4.0 million at December 31, 2022. Accrued interest receivable for loans is included as a separate line item on the Company’s Consolidated Balance Sheet. The Company elected not to measure an allowance for accrued interest receivable and instead elected to reverse accrued interest income on loans that are placed on nonaccrual status. The Company believes this policy results in the timely reversal of uncollectible interest. 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.
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. Accrued interest receivable on securities totaled $4.5 million at March 31, 2023 and $3.4 million at December 31, 2022. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACL - Securities Available for Sale ACL - Securities Held to Maturity
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 penalties related to income tax matters in income tax expense.
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. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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
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 $4,000 at March 31, 2023 and $0 at December 31, 2022. The net fair value of mortgage backed security derivatives was ($3,000) at March 31, 2023 and $0 at December 31, 2022.
Loans Held for Sale	Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. As of March 31, 2023 and December 31, 2022, these loans had net unrealized gains of $5,000 and $4,000, respectively, which are reflected in their carrying value. Changes in fair value of loans held for sale are included in net gains on mortgage loans. Loans are sold with servicing released; therefore no mortgage servicing right assets are established.
Newly Issued Not Yet Effective Standards	Newly Issued Not Yet Effective Standards : FASB issued ASU 2023-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements . This standard requires entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. The standard is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within these fiscal years. As the Company does not have any such common control leases, adoption of this standard will not have any immediate impact.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
SECURITIES (Tables)	Mar. 31, 2023
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31 2023 Available for Sale U.S. Treasury and federal agency securities $ 255,211 $ 175 $ (13,528 ) $ 241,858 U.S. Agency MBS and CMOs 134,956 81 (12,793 ) 122,244 Tax-exempt state and municipal bonds 37,142 77 (270 ) 36,949 Taxable state and municipal bonds 119,862 149 (6,874 ) 113,137 Corporate bonds and other debt securities 12,112 4 (345 ) 11,771 $ 559,283 $ 486 $ (33,810 ) $ 525,959 Held to Maturity U.S. Treasury $ 251,286 $ — $ (11,274 ) $ 240,012 Tax-exempt state and municipal bonds 97,101 552 (2,106 ) 95,547 $ 348,387 $ 552 $ (13,380 ) $ 335,559 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
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at March 31, 2023 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 $ 58,157 $ 57,487 $ 22,431 $ 22,106 Due from one to five years 272,386 260,375 369,226 352,338 Due from five to ten years 17,844 17,697 34,295 30,814 Due after ten years — — 133,331 120,701 $ 348,387 $ 335,559 $ 559,283 $ 525,959
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for Sale U.S. Treasury and federal agency securities $ 90,278 $ (2,249 ) $ 125,775 $ (11,279 ) $ 216,053 $ (13,528 ) U.S. Agency MBS and CMOs 31,574 (1,021 ) 64,296 (11,772 ) 95,870 (12,793 ) Tax-exempt state and municipal bonds 17,744 (103 ) 5,541 (167 ) 23,285 (270 ) Taxable state and municipal bonds 41,608 (989 ) 58,236 (5,885 ) 99,844 (6,874 ) Corporate bonds and other debt securities 7,462 (148 ) 3,839 (197 ) 11,301 (345 ) Total $ 188,666 $ (4,510 ) $ 257,687 $ (29,300 ) $ 446,353 $ (33,810 ) Held to Maturity U.S. Treasury $ 114,386 $ (5,063 ) $ 125,626 $ (6,211 ) $ 240,012 $ (11,274 ) Tax-exempt state and municipal bonds 26,395 (384 ) 49,855 (1,722 ) 76,250 (2,106 ) $ 140,781 $ (5,447 ) $ 175,481 $ (7,933 ) $ 316,262 $ (13,380 ) NOTE 2 – SECURITIES 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 )

LOANS (Tables)

LOANS (Tables)	3 Months Ended
LOANS (Tables)	Mar. 31, 2023
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): March 31, 2023 December 31, 2022 Commercial and industrial $ 473,354 $ 441,716 Commercial real estate: Residential developed 7,001 7,234 Unsecured to residential developers — — Vacant and unimproved 38,700 36,270 Commercial development 99 103 Residential improved 116,177 112,791 Commercial improved 255,894 259,281 Manufacturing and industrial 125,477 121,924 Total commercial real estate 543,348 537,603 Consumer: Residential mortgage 148,676 139,148 Unsecured 106 121 Home equity 52,647 56,321 Other secured 2,808 2,839 Total consumer 204,237 198,429 Total loans 1,220,939 1,177,748 Allowance for credit losses (16,794 ) (15,285 ) $ 1,204,145 $ 1,162,463
Activity in Allowance for Credit Losses by Portfolio Segment	Activity in the allowance for credit losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31 2023 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance, prior to adoption of ASU 2016-03 $ 5,596 $ 7,180 $ 2,458 $ 51 $ 15,285 Impact of adoption of ASU 2016-03 1,299 (212 ) 389 — 1,476 Charge-offs — — (21 ) — (21 ) Recoveries 9 3 42 — 54 Provision for credit losses (1) 220 (201 ) (50 ) 31 — Ending Balance $ 7,124 $ 6,770 $ 2,818 $ 82 $ 16,794 Three months ended March 31 2022 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 5,176 $ 8,051 $ 2,633 $ 29 $ 15,889 Charge-offs — — (35 ) — (35 ) Recoveries 5 233 24 — 262 Provision for credit losses (1) 148 (1,213 ) (469 ) 34 (1,500 ) Ending Balance $ 5,329 $ 7,071 $ 2,153 $ 63 $ 14,616 (1) Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.
Gross Chargeoffs by Portfolio Class and Origination Year	The following table presents gross chargeoffs for the three months ended March 31, 2023 by portfolio class and origination year (dollars in thousands): Term Loans By Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — Commercial development — — — — — — — — Commercial improved — — — — — — — — Manufacturing and industrial — — — — — — — — Residential development — — — — — — — — Residential improved — — — — — — — — Vacant and unimproved — — — — — — — — Total commercial — — — — — — — — Residential mortgage — — — — — — — — Consumer unsecured — — — — — — — — Home equity — — — — — — — — Other — — — — — — 21 21 Total consumer — — — — — — 21 21 Total loans — — — — — — 21 21
Amortized Cost of Collateral-Dependent Loans by Class	The amortized cost of collateral-dependent loans by class as of March 31, 2023 was as follows (dollars in thousands): Collateral Type March 31, 2023 Real Estate Other Allowance Allocated Commercial and industrial $ — $ — $ — Commercial real estate: Residential developed — — — Unsecured to residential developers — — — Vacant and unimproved — — — Commercial development — — — Residential improved 30 — — Commercial improved 303 — 6 Manufacturing and industrial — — — 333 — 6 Consumer Residential mortgage — — — Unsecured — — — Home equity — — — Other secured — — — Consumer — — — Total $ 333 $ — $ 6
Allowance for Credit Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following table presents the balance in the allowance for credit 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 credit 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
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 Year-To-Date Average Recorded Investment With no related allowance recorded: Commercial and industrial $ 3,278 $ 3,278 $ — $ 2,338 Commercial real estate: Residential improved 31 31 — 33 31 31 — 33 Consumer — — — — Total with no related allowance recorded $ 3,309 $ 3,309 $ — $ 2,371 With an allowance recorded: Commercial and industrial $ 325 $ 325 $ 55 $ 365 Commercial real estate: Commercial improved 307 307 9 313 Manufacturing and industrial 180 180 11 185 487 487 20 498 Consumer: Residential mortgage 2,653 2,653 202 2,619 Unsecured 29 29 2 29 Home equity 204 204 16 234 2,886 2,886 220 2,882 Total with an allowance recorded $ 3,698 $ 3,698 $ 295 $ 3,745 Total $ 7,007 $ 7,007 $ 295 $ 6,116
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of 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 March 31, 2023 and December 31, 2022: March 31, 2023 Nonaccrual with No Allowance Nonaccrual with Allowance Total Nonaccrual Over 90 days Accruing Total Nonperforming Loans Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate: Residential developed — — — — — Unsecured to residential developers — — — — — Vacant and unimproved — — — — — Commercial development — — — — — Residential Improved — — — — — Commercial improved — — — — — Manufacturing and industrial — — — — — — — — — — Consumer: Residential mortgage — 75 75 — 75 Unsecured — — — — — Home equity — — — — — Other secured — — — — — — 75 75 — 75 Total $ — $ 75 $ 75 $ — $ 75 December 31, 2022 Nonaccrual with No Allowance Nonaccrual with Allowance Total Nonaccrual Over 90 days Accruing Total Nonperforming Loans Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate: Residential developed — — — — — Unsecured to residential developers — — — — — Vacant and unimproved — — — — — Commercial development — — — — — Residential improved — — — — — Commercial improved — — — — — Manufacturing and industrial — — — — — — — — — — Consumer: Residential mortgage — 78 78 — 78 Unsecured — — — — — Home equity — — — — — Other secured — — — — — — 78 78 — 78 Total $ — $ 78 $ 78 $ — $ 78
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 March 31, 2023 and December 31, 2022 by class of loans (dollars in thousands): March 31, 2023 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ — $ — $ — $ 473,354 $ 473,354 Commercial real estate: Residential developed — — — 7,001 7,001 Unsecured to residential developers — — — — — Vacant and unimproved — — — 38,700 38,700 Commercial development — — — 99 99 Residential improved — — — 116,177 116,177 Commercial improved 83 — 83 255,811 255,894 Manufacturing and industrial — — — 125,477 125,477 83 — 83 543,265 543,348 Consumer: Residential mortgage 120 74 194 148,482 148,676 Unsecured — — — 106 106 Home equity — — — 52,647 52,647 Other secured — — — 2,808 2,808 120 74 194 204,043 204,237 Total $ 203 $ 74 $ 277 $ 1,220,662 $ 1,220,939 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
Modifications to Borrowers Experiencing Financial Difficulty	The following table presents information regarding modifications to borrowers experiencing financial difficulty as of March 31, 2023 (dollars in thousands): March 31, 2023 Number of Loans Outstanding Recorded Balance Percentage to Total Loans Commercial and industrial 3 $ 309 0.07 % Commercial real estate 3 509 0.09 % Consumer 32 2,847 1.39 % 38 $ 3,665 0.30 % NOTE 3 – LOANS T he following table presents information related to modifications to borrowers experiencing financial difficulty as of March 31, 2023. The table presents the amount of accruing modifications that were on nonaccrual status prior to the modification, accruing at the time of modification and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the modified terms as of the period March 31, 2023 Accruing - nonaccrual at modification $ — Accruing - accruing at modification 3,665 Accruing - upgraded to accruing after six consecutive payments — $ 3,665
Risk Grade Category of Loans by Class of Loans	As of December 31, 2022, the risk grade category of commercial loans by class of loans were 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 NOTE 3 – LOANS The following table summarizes loan ratings by grade for commercial loans (dollars in thousands): Term Loans Amortized Cost Basis By Origination Year and Risk Grades March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Commercial Commercial and industrial Grades 1-3 $ 14,305 $ 60,752 $ 18,955 $ 7,346 $ 14,878 $ 47,073 $ 70,542 $ 233,851 Grade 4 12,017 46,095 24,990 26,313 10,486 30,408 77,814 228,123 Grade 5 — 342 43 407 99 115 10,246 11,252 Grade 6 — 41 49 — — 38 — 128 Grade 7-8 — — — — — — — — $ 26,322 $ 107,230 $ 44,037 $ 34,066 $ 25,463 $ 77,634 $ 158,602 $ 473,354 Commercial development Grades 1-3 $ — $ 99 $ — $ — $ — $ — $ — $ 99 Grade 4 — — — — — — — — Grade 5 — — — — — — — — Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ — $ 99 $ — $ — $ — $ — $ — $ 99 Commercial improved Grades 1-3 $ 6,992 $ 18,654 $ 33,327 $ 10,894 $ 14,484 $ 17,925 $ 2,915 $ 105,191 Grade 4 1,778 37,516 37,376 43,647 17,937 3,321 3,200 144,775 Grade 5 — 148 — 29 2,227 3,171 50 5,625 Grade 6 — — 303 — — — — 303 Grade 7-8 — — — — — — — — $ 8,770 $ 56,318 $ 71,006 $ 54,570 $ 34,648 $ 24,417 $ 6,165 $ 255,894 Manufacturing and industrial Grades 1-3 $ 786 $ 17,839 $ 4,829 $ 8,562 $ 4,370 $ 7,459 $ 430 $ 44,275 Grade 4 6,709 27,464 15,090 7,933 5,805 14,188 145 77,334 Grade 5 — 177 94 — — 810 495 1,576 Grade 6 — — — — — 2,292 — 2,292 Grade 7-8 — — — — — — — — $ 7,495 $ 45,480 $ 20,013 $ 16,495 $ 10,175 $ 24,749 $ 1,070 $ 125,477 Residential development Grades 1-3 $ — $ — $ — $ — $ — $ — $ — $ — Grade 4 322 3,837 1,455 — — — 1,387 7,001 Grade 5 — — — — — — — — Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 322 $ 3,837 $ 1,455 $ — $ — $ — $ 1,387 $ 7,001 Residential improved Grades 1-3 $ 4,587 $ 7,574 $ 1,442 $ 9,544 $ 258 $ 5,442 $ 401 $ 29,248 Grade 4 4,037 568 30,241 1,988 7,233 15,710 27,122 86,899 Grade 5 — — 30 — — — — 30 Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 8,624 $ 8,142 $ 31,713 $ 11,532 $ 7,491 $ 21,152 $ 27,523 $ 116,177 Vacant and unimproved Grades 1-3 $ — $ 4,503 $ 7,725 $ 7,210 $ — $ 110 $ 646 $ 20,194 Grade 4 952 2,897 3,721 8,332 163 117 982 17,164 Grade 5 1,342 — — — — — — 1,342 Grade 6 — — — — — — — — Grade 7-8 — — — — — — — — $ 2,294 $ 7,400 $ 11,446 $ 15,542 $ 163 $ 227 $ 1,628 $ 38,700 Total Commercial Grades 1-3 $ 26,670 $ 109,421 $ 66,278 $ 43,556 $ 33,990 $ 78,009 $ 74,934 $ 432,858 Grade 4 25,815 118,377 112,873 88,213 41,624 63,744 110,650 561,296 Grade 5 1,342 667 167 436 2,326 4,096 10,791 19,825 Grade 6 — 41 352 — — 2,330 — 2,723 Grade 7-8 — — — — — — — — $ 53,827 $ 228,506 $ 179,670 $ 132,205 $ 77,940 $ 148,179 $ 196,375 $ 1,016,702 NOTE 3 – LOANS The Company considers the performance of the loan portfolio and its impact on the allowance for credit 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 table presents the recorded investment in consumer loans by year of origination and based on delinquency status at March 31, 2023 (dollars in thousands): Term Loans Amortized Cost Basis By Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Retail Residential mortgage Performing $ 17,336 $ 42,826 $ 27,298 $ 10,419 $ 5,322 $ 33,520 $ 11,880 $ 148,601 Nonperforming — — — — — 75 — 75 $ 17,336 $ 42,826 $ 27,298 $ 10,419 $ 5,322 $ 33,595 $ 11,880 $ 148,676 Consumer unsecured Performing $ — $ — $ — $ 13 $ 15 $ 26 $ 52 $ 106 Nonperforming — — — — — — — — $ — $ — $ — $ 13 $ 15 $ 26 $ 52 $ 106 Home equity Performing $ 71 $ 901 $ 233 $ 489 $ 249 $ 2,324 $ 48,380 $ 52,647 Nonperforming — — — — — — — — $ 71 $ 901 $ 233 $ 489 $ 249 $ 2,324 $ 48,380 $ 52,647 Other Performing $ 304 $ 1,133 $ 687 $ 360 $ 100 $ 224 $ — $ 2,808 Nonperforming — — — — — — — — $ 304 $ 1,133 $ 687 $ 360 $ 100 $ 224 $ — $ 2,808 Total Retail $ 17,711 $ 44,860 $ 28,218 $ 11,281 $ 5,686 $ 36,169 $ 60,312 $ 204,237
Recorded Investment in Consumer Loans Based on Payment Activity	The following table presents the recorded investment in consumer loans based on payment status at December 31, 2022 (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

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
FAIR VALUE (Tables)	Mar. 31, 2023
FAIR VALUE [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2023 Available for sale securities U.S. Treasury and federal agency securities $ 241,858 $ — $ 241,858 $ — U.S. Agency MBS and CMOs 122,244 — 122,244 — Tax-exempt state and municipal bonds 36,949 — 36,949 — Taxable state and municipal bonds 113,137 — 113,137 — Corporate bonds and other debt securities 11,771 — 11,771 — Other equity securities 1,321 — 1,321 — Loans held for sale 87 — 87 — Interest rate swaps 5,294 — 5,294 — Total assets measured at fair value on recurring basis $ 532,661 $ — $ 532,661 $ — Interest rate swaps (5,294 ) — (5,294 ) — Total liabilities measured at fair value on recurring basis $ (5,294 ) $ — $ (5,294 ) $ — 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 ) $ —
Assets Measured at Fair Value on Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2023 Collateral dependent loans $ 327 $ — $ — $ 327 December 31, 2022 Impaired loans $ 328 $ — $ — $ 328
Quantitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2023 Collateral dependent loans $ 327 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, 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
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 March 31, 2023 and December 31, 2022 (dollars in thousands): Level in March 31, 2023 December 31, 2022 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 29,402 $ 29,402 $ 51,215 $ 51,215 Federal funds sold and other short-term investments Level 1 391,336 391,336 703,955 703,955 Securities held to maturity - U.S. Treasury Level 2 251,286 240,012 251,307 237,630 Securities held to maturity - tax-exempt and muni Level 3 97,101 95,547 97,458 95,020 FHLB stock Level 3 10,211 10,211 10,211 10,211 Loans, net Level 2 1,203,818 1,185,925 1,162,135 1,131,387 Bank owned life insurance Level 3 53,557 53,557 53,345 53,345 Accrued interest receivable Level 2 8,782 8,782 7,606 7,606 Financial liabilities Deposits Level 2 (2,330,895 ) (2,331,330 ) (2,615,142 ) (2,615,860 ) Other borrowed funds Level 2 (30,000 ) (28,824 ) (30,000 ) (28,666 ) Accrued interest payable Level 2 (228 ) (228 ) (114 ) (114 ) Off-balance sheet credit-related items Loan commitments — — — —

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
DERIVATIVES (Tables)	Mar. 31, 2023
DERIVATIVES [Abstract]
Fair Value of Derivative Instruments	The notional and fair value of derivative instruments as of March 31, 2023 and December 31, 2022 are reflected in the following table (dollars in thousands): Notional Amount Balance Sheet Location Fair Value March 31, 2023 Derivative assets Interest rate swaps $ 57,560 Other Assets $ 5,294 Derivative liabilities Interest rate swaps 57,560 Other Liabilities 5,294 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

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
DEPOSITS (Tables)	Mar. 31, 2023
DEPOSITS [Abstract]
Deposits Liabilities	Deposits are summarized as follows (dollars in thousands): March 31, 2023 December 31, 2022 Noninterest-bearing demand $ 690,444 $ 834,879 Interest bearing demand 608,967 760,889 Savings and money market accounts 858,895 922,418 Certificates of deposit 172,589 96,956 $ 2,330,895 $ 2,615,142

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	3 Months Ended
OTHER BORROWED FUNDS (Tables)	Mar. 31, 2023
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At period-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 March 31, 2023 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, 2022 Single maturity fixed rate advances $ 10,000 February 2024 2.63 % Putable advances 20,000 November 2024 1.81 % $ 30,000
Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of March 31, 2023 were as follows (in thousands): 2023 $ — 2024 30,000 2025 — 2026 — 2027 — Thereafter — $ 30,000

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
EARNINGS PER COMMON SHARE (Tables)	Mar. 31, 2023
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 for the three month periods ended March 31, 2023 and 2022 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Net income available to common shares $ 12,004 $ 6,000 Weighted average shares outstanding, including participating stock awards - Basic 34,297,221 34,254,772 Dilutive potential common shares: Stock options — — Weighted average shares outstanding - Diluted 34,297,221 34,254,772 Basic earnings per common share $ 0.35 $ 0.18 Diluted earnings per common share $ 0.35 $ 0.18

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	3 Months Ended
FEDERAL INCOME TAXES (Tables)	Mar. 31, 2023
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Current $ 2,825 $ 935 Deferred 150 456 $ 2,975 $ 1,391
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): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Statutory rate 21 % 21 % Statutory rate applied to income before taxes $ 3,146 $ 1,552 Deduct Tax-exempt interest income (147 ) (154 ) Bank-owned life insurance (42 ) (50 ) Other, net 18 43 $ 2,975 $ 1,391
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): March 31, 2023 December 31, 2022 Deferred tax assets Allowance for loan losses $ 3,527 $ 3,210 Net deferred loan fees — — Nonaccrual loan interest 12 12 Valuation allowance on other real estate owned — — Unrealized loss on securities available for sale and transferred to held to maturity 6,980 8,394 Other 297 257 Gross deferred tax assets 10,816 11,873 Valuation allowance — — Total net deferred tax assets 10,816 11,873 Deferred tax liabilities Depreciation (1,104 ) (1,098 ) Net deferred loan fees (20 ) (309 ) Prepaid expenses (309 ) (21 ) Other (912 ) (733 ) Gross deferred tax liabilities (2,345 ) (2,161 ) Net deferred tax asset $ 8,471 $ 9,712

COMMITMENTS AND OFF BALANCE-S_2

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	3 Months Ended
COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	Mar. 31, 2023
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 period-end (dollars in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 115,100 $ 77,384 Letters of credit 11,937 13,455 Unused lines of credit 719,013 745,674

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Mar. 31, 2023
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	At March 31, 2023 and December 31, 2022 Minimum Capital Minimum Capital Adequacy With To Be Well Capitalized Under Prompt Corrective Actual Adequacy Capital Buffer Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2023 CET1 capital (to risk weighted assets) Consolidated $ 286,826 17.1 % $ 75,561 4.5 % $ 117,539 7.0 % N/A N/A Bank 278,347 16.6 75,558 4.5 117,535 7.0 $ 109,139 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 286,826 17.1 100,748 6.0 142,726 8.5 N/A N/A Bank 278,347 16.6 100,744 6.0 142,720 8.5 134,325 8.0 Total capital (to risk weighted assets) Consolidated 303,620 18.1 134,331 8.0 176,309 10.5 N/A N/A Bank 295,141 17.6 134,325 8.0 176,302 10.5 167,906 10.0 Tier 1 capital (to average assets) Consolidated 286,826 10.3 111,845 4.0 N/A N/A N/A N/A Bank 278,347 10.0 111,839 4.0 N/A N/A 139,799 5.0 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Principles of Consolidation and Recent Events (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Branch	Dec. 31, 2022 USD ($)
Principles Of Consolidation [Abstract]
Number of full service branch offices \| Branch	26
Recent Events [Abstract]
Federal funds sold and overnight balances	$ 391,336	$ 703,955
Borrowing capacity	951,000
Federal Reserve Bank [Member]
Recent Events [Abstract]
Advances under new borrowing facility	0	0
Unused borrowing capacity	$ 1,500	$ 5,500
Federal Reserve Bank [Member] \| Bank Term Funding Program [Member]
Recent Events [Abstract]
Debt instrument, term	1 year
Amount of prepayment penalty	$ 0
Advances under new borrowing facility	0
Unused borrowing capacity	$ 642,200
Expiration date	Mar. 11, 2024
Borrowing capacity	$ 642,200
Federal Reserve Bank [Member] \| Fed Funds Facilities with Correspondent Banks [Member]
Recent Events [Abstract]
Borrowing capacity	65,000
Federal Reserve Bank [Member] \| Discount Window [Member]
Recent Events [Abstract]
Borrowing capacity	1,500
Federal Home Loan Bank ("FHLB") [Member]
Recent Events [Abstract]
Borrowing capacity	$ 242,300

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Allowance for Loan Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Economist Segment	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Allowance for Loan Losses [Abstract]
Allowance for credit losses	$ 16,794	$ 15,285	$ 14,616	$ 15,889
Retained earnings	67,092	59,036
Deferred tax assets	$ 8,471	9,712
Term of reasonable and supportable economic forecast period	1 year
Term of straight line reversion period	6 months
Number of leading economists who provided forecasts \| Economist	25
Accrued interest receivable	$ 8,782	7,606
Minimum [Member]
Allowance for Loan Losses [Abstract]
Peer group assets	1,000,000
Maximum [Member]
Allowance for Loan Losses [Abstract]
Peer group assets	3,000,000
Loans Receivables [Member]
Allowance for Loan Losses [Abstract]
Accrued interest receivable	$ 3,800	4,000
Mortgages [Member]
Allowance for Loan Losses [Abstract]
Period after which interest income on delinquent loans is discontinued	90 days
Commercial [Member]
Allowance for Loan Losses [Abstract]
Allowance for credit losses	$ 7,124	5,596	5,329	5,176
Number of loan segments \| Segment	8
Period after which interest income on delinquent loans is discontinued	90 days
Consumer [Member]
Allowance for Loan Losses [Abstract]
Allowance for credit losses	$ 2,818	2,458	$ 2,153	$ 2,633
Consumer [Member] \| Minimum [Member]
Allowance for Loan Losses [Abstract]
Past due period after which loans are charged off	120 days
Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU No. 2016-13 [Member]
Allowance for Loan Losses [Abstract]
Allowance for credit losses		1,500
Off-balance sheet credit exposures		62
Retained earnings		(1,200)
Deferred tax assets		$ 323

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Securities [Abstract]
Accrued interest receivable	$ 8,782	$ 7,606
ACL related to debt securities AFS	0	0
ACL related to securities HTM	0	0
Debt Securities [Member]
Securities [Abstract]
Accrued interest receivable	$ 4,500	$ 3,400

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Derivatives (Details) - Swap [Member] - Interest Rate Swap [Member] $ in Millions	Mar. 31, 2023 USD ($) InterestRateSwap	Dec. 31, 2022 USD ($)
Derivatives [Abstract]
Number of freestanding interest rate swaps \| InterestRateSwap	2
Notional amount of agreements	$ 115.1	$ 125.3
Derivative asset fair value	5.3	6.5
Derivative liability fair value	$ 5.3	$ 6.5

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Mortgage Backed Securities [Member]
Mortgage Banking Derivatives [Abstract]
Fair value of derivatives	$ (3)	$ 0
Interest Rate Lock Commitments [Member]
Mortgage Banking Derivatives [Abstract]
Fair value of derivatives	$ 4	$ 0

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Loans Held-for-sale [Abstract]
Net unrealized gains on loans held for sale	$ 5	$ 4

SECURITIES, Available-for-sale

SECURITIES, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Available for Sale, Debt Securities [Abstract]
Amortized cost	$ 559,283	$ 539,318
Gross unrealized gains	486	82
Gross unrealized losses	(33,810)	(40,143)
Fair value	525,959	499,257
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	255,211	240,921
Gross unrealized gains	175	23
Gross unrealized losses	(13,528)	(16,310)
Fair value	241,858	224,634
U.S. Agency MBS and CMOs [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	134,956	128,165
Gross unrealized gains	81	0
Gross unrealized losses	(12,793)	(14,347)
Fair value	122,244	113,818
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	37,142	37,198
Gross unrealized gains	77	10
Gross unrealized losses	(270)	(498)
Fair value	36,949	36,710
Taxable State and Municipal Bonds [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	119,862	120,647
Gross unrealized gains	149	49
Gross unrealized losses	(6,874)	(8,525)
Fair value	113,137	112,171
Corporate Bonds and Other Debt Securities [Member]
Available for Sale, Debt Securities [Abstract]
Amortized cost	12,112	12,387
Gross unrealized gains	4	0
Gross unrealized losses	(345)	(463)
Fair value	$ 11,771	$ 11,924

SECURITIES, Held-to-maturity Se

SECURITIES, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Held to Maturity [Abstract]
Amortized cost	$ 348,387	$ 348,765
Gross unrealized gains	552	415
Gross unrealized losses	(13,380)	(16,530)
Fair value	335,559	332,650
U.S. Treasury [Member]
Held to Maturity [Abstract]
Amortized cost	251,286	251,307
Gross unrealized gains	0	0
Gross unrealized losses	(11,274)	(13,677)
Fair value	240,012	237,630
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	97,101	97,458
Gross unrealized gains	552	415
Gross unrealized losses	(2,106)	(2,853)
Fair value	$ 95,547	$ 95,020

SECURITIES, Sales and Transfer

SECURITIES, Sales and Transfer of Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Jan. 02, 2022 USD ($) Security
Sales and Transfer of Securities [Abstract]
Sales of securities	$ 0	$ 0
U.S. Treasury [Member]
Sales and Transfer of Securities [Abstract]
Number of securities reclassified \| Security			10
Amortized cost of securities transferred from available for sale to held to maturity			$ 123,500
Unrealized gain on securities transferred from available for sale to held to maturity			$ 113

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 58,157
Due from one to five years	272,386
Due from five to ten years	17,844
Due after ten years	0
Amortized cost	348,387	$ 348,765
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	57,487
Due from one to five years	260,375
Due from five to ten years	17,697
Due after ten years	0
Fair value	335,559	332,650
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	22,431
Due from one to five years	369,226
Due from five to ten years	34,295
Due after ten years	133,331
Amortized cost	559,283	539,318
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	22,106
Due from one to five years	352,338
Due from five to ten years	30,814
Due after ten years	120,701
Fair value	$ 525,959	$ 499,257

SECURITIES, Available for Sale

SECURITIES, Available for Sale - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 188,666	$ 322,393
12 months or more	257,687	142,056
Total	446,353	464,449
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(4,510)	(15,211)
12 months or more	(29,300)	(24,932)
Total	(33,810)	(40,143)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	90,278	144,796
12 months or more	125,775	66,008
Total	216,053	210,804
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(2,249)	(6,230)
12 months or more	(11,279)	(10,080)
Total	(13,528)	(16,310)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	31,574	64,427
12 months or more	64,296	41,340
Total	95,870	105,767
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(1,021)	(4,789)
12 months or more	(11,772)	(9,558)
Total	(12,793)	(14,347)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	17,744	31,337
12 months or more	5,541	0
Total	23,285	31,337
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(103)	(498)
12 months or more	(167)	0
Total	(270)	(498)
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	41,608	71,165
12 months or more	58,236	33,452
Total	99,844	104,617
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(989)	(3,337)
12 months or more	(5,885)	(5,188)
Total	(6,874)	(8,525)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	7,462	10,668
12 months or more	3,839	1,256
Total	11,301	11,924
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(148)	(357)
12 months or more	(197)	(106)
Total	$ (345)	$ (463)

SECURITIES, Held to Maturity -

SECURITIES, Held to Maturity - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 140,781	$ 295,301
12 months or more	175,481	21,721
Total	316,262	317,022
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(5,447)	(15,991)
12 months or more	(7,933)	(539)
Total	(13,380)	(16,530)
U.S. Treasury [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	114,386	237,630
12 months or more	125,626	0
Total	240,012	237,630
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(5,063)	(13,677)
12 months or more	(6,211)	0
Total	(11,274)	(13,677)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	26,395	57,671
12 months or more	49,855	21,721
Total	76,250	79,392
Securities in continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(384)	(2,314)
12 months or more	(1,722)	(539)
Total	$ (2,106)	$ (2,853)

SECURITIES, Securities in Unrea

SECURITIES, Securities in Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2023 USD ($) Security	Dec. 31, 2022 USD ($)
SECURITIES [Abstract]
Number of securities available for sale with unrealized losses \| Security	413
Total fair value of securities available for sale with unrealized losses	$ 446,353	$ 464,449
Total unrealized losses of securities available for sale with unrealized losses	$ (33,810)	(40,143)
Number of securities held to maturity with unrealized losses \| Security	66
Total fair value of securities held to maturity with unrealized losses	$ 316,262	317,022
Total unrealized losses of securities held to maturity with unrealized losses	(13,380)	(16,530)
Allowance for credit losses on AFS securities	0	0
Allowance for credit losses on HTM securities	$ 0	$ 0

SECURITIES, Pledged Securities

SECURITIES, Pledged Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Asset Pledged as Collateral [Member] \| Public Deposits, Letters of Credit and for Other Purposes [Member]
Pledged Securities [Abstract]
Debt securities	$ 3.6	$ 3.5

LOANS, Portfolio Loans (Details

LOANS, Portfolio Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Portfolio loans [Abstract]
Total loans	$ 1,220,939	$ 1,177,748
Allowance for credit losses	(16,794)	(15,285)	$ (14,616)	$ (15,889)
Net loans	1,204,145	1,162,463
Loans and Leases Receivable, Other Information [Abstract]
Deferred fees on loans	1,300	1,300
Deferred costs on loans	1,400	1,400
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	473,354	441,716
Allowance for credit losses	(7,124)	(5,596)	(5,329)	(5,176)
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	543,348	537,603
Allowance for credit losses	(6,770)	(7,180)	(7,071)	(8,051)
Commercial Real Estate [Member] \| Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	7,001	7,234
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	38,700	36,270
Commercial Real Estate [Member] \| Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	99	103
Commercial Real Estate [Member] \| Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	116,177	112,791
Commercial Real Estate [Member] \| Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	255,894	259,281
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	125,477	121,924
Consumer [Member]
Portfolio loans [Abstract]
Total loans	204,237	198,429
Allowance for credit losses	(2,818)	(2,458)	$ (2,153)	$ (2,633)
Consumer [Member] \| Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	148,676	139,148
Consumer [Member] \| Unsecured [Member]
Portfolio loans [Abstract]
Total loans	106	121
Consumer [Member] \| Home Equity [Member]
Portfolio loans [Abstract]
Total loans	52,647	56,321
Consumer [Member] \| Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 2,808	$ 2,839

LOANS, Allowance for Credit Los

LOANS, Allowance for Credit Losses by Portfolio Segment (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		$ 15,285	$ 15,889
Charge-offs		(21)	(35)
Recoveries		54	262
Provision for credit losses	[1]	0	(1,500)
Ending balance		16,794	14,616
Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-03 [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		1,476
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		5,596	5,176
Charge-offs		0	0
Recoveries		9	5
Provision for credit losses	[1]	220	148
Ending balance		7,124	5,329
Commercial and Industrial [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-03 [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		1,299
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		7,180	8,051
Charge-offs		0	0
Recoveries		3	233
Provision for credit losses	[1]	(201)	(1,213)
Ending balance		6,770	7,071
Commercial Real Estate [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-03 [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		(212)
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		2,458	2,633
Charge-offs		(21)	(35)
Recoveries		42	24
Provision for credit losses	[1]	(50)	(469)
Ending balance		2,818	2,153
Consumer [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-03 [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		389
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		51	29
Charge-offs		0	0
Recoveries		0	0
Provision for credit losses	[1]	31	34
Ending balance		82	$ 63
Unallocated [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-03 [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance		$ 0

[1]Beginning January 1, 2023, calculation is based on CECL methodology. Prior to January 1, 2023, calculation was based on probable incurred loss methodology.

LOANS, Gross Chargeoffs by Port

LOANS, Gross Chargeoffs by Portfolio Class and Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	$ 0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	21
Total	21	$ 35
Commercial Loans [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial and Industrial [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0	0
Commercial Real Estate [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
Total	0	0
Commercial Real Estate [Member] \| Commercial Development [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate [Member] \| Commercial Improved [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate [Member] \| Residential Developed [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate [Member] \| Residential Improved [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Consumer [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	21
Total	21	$ 35
Consumer [Member] \| Residential Mortgage [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Consumer [Member] \| Unsecured [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Consumer [Member] \| Home Equity [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	0
Total	0
Consumer [Member] \| Other Secured [Member]
Gross Chargeoffs by Portfolio Class and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans	21
Total	$ 21

LOANS, Amortized Cost of Collat

LOANS, Amortized Cost of Collateral-Dependent Loans by Class (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Collateral Dependent Loans by Class [Abstract]
Total loans	$ 1,220,939	$ 1,177,748
Allowance allocated	6
Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	333
Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial and Industrial [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	473,354	441,716
Allowance allocated	0
Commercial and Industrial [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial and Industrial [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	543,348	537,603
Allowance allocated	6
Commercial Real Estate [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	333
Commercial Real Estate [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Residential Developed [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	7,001	7,234
Allowance allocated	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0	0
Allowance allocated	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	38,700	36,270
Allowance allocated	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Commercial Development [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	99	103
Allowance allocated	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Residential Improved [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	116,177	112,791
Allowance allocated	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	30
Commercial Real Estate [Member] \| Residential Improved [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Commercial Improved [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	255,894	259,281
Allowance allocated	6
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	303
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	125,477	121,924
Allowance allocated	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	204,237	198,429
Allowance allocated	0
Consumer [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Residential Mortgage [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	148,676	139,148
Allowance allocated	0
Consumer [Member] \| Residential Mortgage [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Residential Mortgage [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Unsecured [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	106	121
Allowance allocated	0
Consumer [Member] \| Unsecured [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Unsecured [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Home Equity [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	52,647	56,321
Allowance allocated	0
Consumer [Member] \| Home Equity [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Home Equity [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Other Secured [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	2,808	$ 2,839
Allowance allocated	0
Consumer [Member] \| Other Secured [Member] \| Real Estate [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	0
Consumer [Member] \| Other Secured [Member] \| Other [Member]
Collateral Dependent Loans by Class [Abstract]
Total loans	$ 0

LOANS, Allowance for Credit L_2

LOANS, Allowance for Credit Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment		$ 295
Collectively evaluated for impairment		14,990
Total ending allowance balance	$ 16,794	15,285	$ 14,616	$ 15,889
Loans [Abstract]
Individually reviewed for impairment		7,007
Collectively evaluated for impairment		1,170,741
Total ending loans balance	1,220,939	1,177,748
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment		55
Collectively evaluated for impairment		5,541
Total ending allowance balance	7,124	5,596	5,329	5,176
Loans [Abstract]
Individually reviewed for impairment		3,603
Collectively evaluated for impairment		438,113
Total ending loans balance	473,354	441,716
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment		20
Collectively evaluated for impairment		7,160
Total ending allowance balance	6,770	7,180	7,071	8,051
Loans [Abstract]
Individually reviewed for impairment		518
Collectively evaluated for impairment		537,085
Total ending loans balance	543,348	537,603
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment		220
Collectively evaluated for impairment		2,238
Total ending allowance balance	2,818	2,458	2,153	2,633
Loans [Abstract]
Individually reviewed for impairment		2,886
Collectively evaluated for impairment		195,543
Total ending loans balance	204,237	198,429
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment		0
Collectively evaluated for impairment		51
Total ending allowance balance	$ 82	51	$ 63	$ 29
Loans [Abstract]
Individually reviewed for impairment		0
Collectively evaluated for impairment		0
Total ending loans balance		$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) $ in Thousands	12 Months Ended
LOANS, Impaired Loans (Details) $ in Thousands	Dec. 31, 2022 USD ($)
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 3,309
Recorded investment	3,309
Year-to-date average recorded investment	2,371
With an allowance recorded [Abstract]
Unpaid principal balance	3,698
Recorded investment	3,698
Year-to-date average recorded investment	3,745
Total [Abstract]
Unpaid principal balance	7,007
Recorded investment	7,007
Allowance allocated	295
Year-to-date average recorded investment	6,116
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	3,278
Recorded investment	3,278
Year-to-date average recorded investment	2,338
With an allowance recorded [Abstract]
Unpaid principal balance	325
Recorded investment	325
Year-to-date average recorded investment	365
Total [Abstract]
Allowance allocated	55
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	31
Recorded investment	31
Year-to-date average recorded investment	33
With an allowance recorded [Abstract]
Unpaid principal balance	487
Recorded investment	487
Year-to-date average recorded investment	498
Total [Abstract]
Allowance allocated	20
Commercial Real Estate [Member] \| Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	31
Recorded investment	31
Year-to-date average recorded investment	33
Commercial Real Estate [Member] \| Commercial Improved [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	307
Recorded investment	307
Year-to-date average recorded investment	313
Total [Abstract]
Allowance allocated	9
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	180
Recorded investment	180
Year-to-date average recorded investment	185
Total [Abstract]
Allowance allocated	11
Consumer [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0
Recorded investment	0
Year-to-date average recorded investment	0
With an allowance recorded [Abstract]
Unpaid principal balance	2,886
Recorded investment	2,886
Year-to-date average recorded investment	2,882
Total [Abstract]
Allowance allocated	220
Consumer [Member] \| Residential Mortgage [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	2,653
Recorded investment	2,653
Year-to-date average recorded investment	2,619
Total [Abstract]
Allowance allocated	202
Consumer [Member] \| Unsecured [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	29
Recorded investment	29
Year-to-date average recorded investment	29
Total [Abstract]
Allowance allocated	2
Consumer [Member] \| Home Equity [Member]
With an allowance recorded [Abstract]
Unpaid principal balance	204
Recorded investment	204
Year-to-date average recorded investment	234
Total [Abstract]
Allowance allocated	$ 16

LOANS, Past Due Loans (Details)

LOANS, Past Due Loans (Details) - USD ($) $ in Thousands	3 Months Ended
LOANS, Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	$ 0	$ 0
Nonaccrual with allowance	75	78
Total nonaccrual	75	78
Over 90 days accruing	0	0
Total nonperforming loans	75	78
Interest income recognized on nonaccrual loans	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	1,220,939	1,177,748
Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	277	172
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	203	95
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	74	77
Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	1,220,662	1,177,576
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	473,354	441,716
Commercial 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 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 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 and Industrial [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	473,354	441,716
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	543,348	537,603
Commercial Real Estate [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	83	71
Commercial Real Estate [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	83	71
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	0
Commercial Real Estate [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	543,265	537,532
Commercial Real Estate [Member] \| Residential Developed [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	7,001	7,234
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	7,001	7,234
Commercial Real Estate [Member] \| Unsecured to Residential Developers [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
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] \| 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	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	38,700	36,270
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	38,700	36,270
Commercial Real Estate [Member] \| Commercial Development [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	99	103
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	99	103
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 with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	116,177	112,791
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	0
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	0
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	116,177	112,791
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 with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	255,894	259,281
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	83	71
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	83	71
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	255,811	259,210
Commercial Real Estate [Member] \| Manufacturing and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	125,477	121,924
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	125,477	121,924
Consumer [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	75	78
Total nonaccrual	75	78
Over 90 days accruing	0	0
Total nonperforming loans	75	78
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	204,237	198,429
Consumer [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	194	101
Consumer [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	120	24
Consumer [Member] \| Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	74	77
Consumer [Member] \| Loans Not Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	204,043	198,328
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 with no allowance	0	0
Nonaccrual with allowance	75	78
Total nonaccrual	75	78
Over 90 days accruing	0	0
Total nonperforming loans	75	78
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	148,676	139,148
Consumer [Member] \| Residential Mortgage [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	194	77
Consumer [Member] \| Residential Mortgage [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	120	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	74	77
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	148,482	139,071
Consumer [Member] \| Unsecured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	106	121
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	106	121
Consumer [Member] \| Home Equity [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	52,647	56,321
Consumer [Member] \| Home Equity [Member] \| Total Past Due [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	24
Consumer [Member] \| Home Equity [Member] \| 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	0	24
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	52,647	56,297
Consumer [Member] \| Other Secured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual with no allowance	0	0
Nonaccrual with allowance	0	0
Total nonaccrual	0	0
Over 90 days accruing	0	0
Total nonperforming loans	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total loans	2,808	2,839
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	$ 2,808	$ 2,839

LOANS, Modifications to Borrowe

LOANS, Modifications to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Loan Payment Note
LOANS [Abstract]
Number of consecutive payments before nonaccrual restructured loan is upgraded \| Payment	6
Modifications to borrowers experiencing financial difficulty [Abstract]
Number of loans \| Loan	38
Outstanding recorded balance	$ 3,665
Percentage to total loans	0.30%
Accruing modifications that were on nonaccrual status prior to the modification [Abstract]
Accruing - nonaccrual at modification	$ 0
Accruing - accruing at modification	3,665
Accruing - upgraded to accruing after six consecutive payments	0
Total	3,665
Modifications to maturity date and monthly payment [Abstract]
Modifications made to borrowers experiencing financial difficulty	0
Defaults on loans with modifications made to borrowers experiencing financial difficulty	$ 0
Commercial Loans [Member] \| A-B Note Structure [Member]
Loan Modifications [Abstract]
Number of notes into which original note is separated in modification \| Note	2
Commercial and Industrial [Member]
Modifications to borrowers experiencing financial difficulty [Abstract]
Number of loans \| Loan	3
Outstanding recorded balance	$ 309
Percentage to total loans	0.07%
Commercial Real Estate [Member]
Modifications to borrowers experiencing financial difficulty [Abstract]
Number of loans \| Loan	3
Outstanding recorded balance	$ 509
Percentage to total loans	0.09%
Consumer [Member]
Modifications to borrowers experiencing financial difficulty [Abstract]
Number of loans \| Loan	32
Outstanding recorded balance	$ 2,847
Percentage to total loans	1.39%

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	3 Months Ended
LOANS, Credit Quality Indicators (Details) $ in Thousands	Mar. 31, 2023 USD ($) Grade	Dec. 31, 2022 USD ($)
Risk grade category of commercial loans by class of loans [Abstract]
Number point grading system used for loan quality \| Grade	8
Total loans	$ 1,220,939	$ 1,177,748
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,016,702	979,319
Commercial Loans [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		15,040
Commercial Loans [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		51,906
Commercial Loans [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		336,602
Commercial Loans [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	561,296	557,237
Commercial Loans [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	19,825	15,747
Commercial Loans [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,723	2,787
Commercial Loans [Member] \| Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Loans [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		0
Commercial and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	473,354	441,716
Commercial and Industrial [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		15,040
Commercial and Industrial [Member] \| Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		21,451
Commercial and Industrial [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		175,762
Commercial and Industrial [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	228,123	220,987
Commercial and Industrial [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	11,252	8,309
Commercial and Industrial [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	128	167
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
Commercial Real Estate [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	543,348	537,603
Commercial Real Estate [Member] \| Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,001	7,234
Commercial Real Estate [Member] \| Residential Developed [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
Commercial Real Estate [Member] \| Residential Developed [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,001	7,234
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
Commercial Real Estate [Member] \| Unsecured to Residential Developers [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] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
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
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
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
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
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
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
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	38,700	36,270
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
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
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	17,164	16,633
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,342	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
Commercial Real Estate [Member] \| Commercial Development [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	99	103
Commercial Real Estate [Member] \| Commercial Development [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
Commercial Real Estate [Member] \| Commercial Development [Member] \| Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		103
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
Commercial Real Estate [Member] \| Residential Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	116,177	112,791
Commercial Real Estate [Member] \| Residential Improved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
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
Commercial Real Estate [Member] \| Residential Improved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	86,899	87,176
Commercial Real Estate [Member] \| Residential Improved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	30	30
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	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		0
Commercial Real Estate [Member] \| Commercial Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	255,894	259,281
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
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
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	144,775	151,641
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	5,625	5,762
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	303	307
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
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	125,477	121,924
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans		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
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
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	77,334	73,566
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,576	1,646
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,292	2,313
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

LOANS, Term Loans Amortized Cos

LOANS, Term Loans Amortized Cost Basis By Origination Year and Risk Grades (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Loan ratings by grade for commercial loans [Abstract]
Total ending loans balance	$ 1,220,939	$ 1,177,748
Commercial Loans [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	53,827
2022	228,506
2021	179,670
2020	132,205
2019	77,940
Prior	148,179
Revolving	196,375
Total ending loans balance	1,016,702	979,319
Commercial Loans [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	26,670
2022	109,421
2021	66,278
2020	43,556
2019	33,990
Prior	78,009
Revolving	74,934
Total ending loans balance	432,858
Commercial Loans [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	25,815
2022	118,377
2021	112,873
2020	88,213
2019	41,624
Prior	63,744
Revolving	110,650
Total ending loans balance	561,296	557,237
Commercial Loans [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	1,342
2022	667
2021	167
2020	436
2019	2,326
Prior	4,096
Revolving	10,791
Total ending loans balance	19,825	15,747
Commercial Loans [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	41
2021	352
2020	0
2019	0
Prior	2,330
Revolving	0
Total ending loans balance	2,723	2,787
Commercial Loans [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial and Industrial [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	26,322
2022	107,230
2021	44,037
2020	34,066
2019	25,463
Prior	77,634
Revolving	158,602
Total ending loans balance	473,354	441,716
Commercial and Industrial [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	14,305
2022	60,752
2021	18,955
2020	7,346
2019	14,878
Prior	47,073
Revolving	70,542
Total ending loans balance	233,851
Commercial and Industrial [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	12,017
2022	46,095
2021	24,990
2020	26,313
2019	10,486
Prior	30,408
Revolving	77,814
Total ending loans balance	228,123	220,987
Commercial and Industrial [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	342
2021	43
2020	407
2019	99
Prior	115
Revolving	10,246
Total ending loans balance	11,252	8,309
Commercial and Industrial [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	41
2021	49
2020	0
2019	0
Prior	38
Revolving	0
Total ending loans balance	128	167
Commercial and Industrial [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member]
Loan ratings by grade for commercial loans [Abstract]
Total ending loans balance	543,348	537,603
Commercial Real Estate [Member] \| Commercial Development [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	99
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	99	103
Commercial Real Estate [Member] \| Commercial Development [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	99
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	99
Commercial Real Estate [Member] \| Commercial Development [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Commercial Development [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Commercial Improved [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	8,770
2022	56,318
2021	71,006
2020	54,570
2019	34,648
Prior	24,417
Revolving	6,165
Total ending loans balance	255,894	259,281
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	6,992
2022	18,654
2021	33,327
2020	10,894
2019	14,484
Prior	17,925
Revolving	2,915
Total ending loans balance	105,191
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	1,778
2022	37,516
2021	37,376
2020	43,647
2019	17,937
Prior	3,321
Revolving	3,200
Total ending loans balance	144,775	151,641
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	148
2021	0
2020	29
2019	2,227
Prior	3,171
Revolving	50
Total ending loans balance	5,625	5,762
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	303
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	303	307
Commercial Real Estate [Member] \| Commercial Improved [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	7,495
2022	45,480
2021	20,013
2020	16,495
2019	10,175
Prior	24,749
Revolving	1,070
Total ending loans balance	125,477	121,924
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	786
2022	17,839
2021	4,829
2020	8,562
2019	4,370
Prior	7,459
Revolving	430
Total ending loans balance	44,275
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	6,709
2022	27,464
2021	15,090
2020	7,933
2019	5,805
Prior	14,188
Revolving	145
Total ending loans balance	77,334	73,566
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	177
2021	94
2020	0
2019	0
Prior	810
Revolving	495
Total ending loans balance	1,576	1,646
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	2,292
Revolving	0
Total ending loans balance	2,292	2,313
Commercial Real Estate [Member] \| Manufacturing & Industrial [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Residential Developed [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	322
2022	3,837
2021	1,455
2020	0
2019	0
Prior	0
Revolving	1,387
Total ending loans balance	7,001	7,234
Commercial Real Estate [Member] \| Residential Developed [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	322
2022	3,837
2021	1,455
2020	0
2019	0
Prior	0
Revolving	1,387
Total ending loans balance	7,001	7,234
Commercial Real Estate [Member] \| Residential Developed [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Residential Developed [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Residential Improved [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	8,624
2022	8,142
2021	31,713
2020	11,532
2019	7,491
Prior	21,152
Revolving	27,523
Total ending loans balance	116,177	112,791
Commercial Real Estate [Member] \| Residential Improved [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	4,587
2022	7,574
2021	1,442
2020	9,544
2019	258
Prior	5,442
Revolving	401
Total ending loans balance	29,248
Commercial Real Estate [Member] \| Residential Improved [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	4,037
2022	568
2021	30,241
2020	1,988
2019	7,233
Prior	15,710
Revolving	27,122
Total ending loans balance	86,899	87,176
Commercial Real Estate [Member] \| Residential Improved [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	30
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	30	30
Commercial Real Estate [Member] \| Residential Improved [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Residential Improved [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	2,294
2022	7,400
2021	11,446
2020	15,542
2019	163
Prior	227
Revolving	1,628
Total ending loans balance	38,700	36,270
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Grades 1-3 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	4,503
2021	7,725
2020	7,210
2019	0
Prior	110
Revolving	646
Total ending loans balance	20,194
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Grade 4 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	952
2022	2,897
2021	3,721
2020	8,332
2019	163
Prior	117
Revolving	982
Total ending loans balance	17,164	16,633
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Grade 5 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	1,342
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	1,342	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Grade 6 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Commercial Real Estate [Member] \| Vacant and Unimproved [Member] \| Grade 7-8 [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0	0
Retail [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	17,711
2022	44,860
2021	28,218
2020	11,281
2019	5,686
Prior	36,169
Revolving	60,312
Total ending loans balance	204,237	198,429
Retail [Member] \| Residential Mortgage [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	17,336
2022	42,826
2021	27,298
2020	10,419
2019	5,322
Prior	33,595
Revolving	11,880
Total ending loans balance	148,676	139,148
Retail [Member] \| Residential Mortgage [Member] \| Performing [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	17,336
2022	42,826
2021	27,298
2020	10,419
2019	5,322
Prior	33,520
Revolving	11,880
Total ending loans balance	148,601
Retail [Member] \| Residential Mortgage [Member] \| Nonperforming [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	75
Revolving	0
Total ending loans balance	75
Retail [Member] \| Consumer Unsecured [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	13
2019	15
Prior	26
Revolving	52
Total ending loans balance	106	121
Retail [Member] \| Consumer Unsecured [Member] \| Performing [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	13
2019	15
Prior	26
Revolving	52
Total ending loans balance	106
Retail [Member] \| Consumer Unsecured [Member] \| Nonperforming [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0
Retail [Member] \| Home Equity [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	71
2022	901
2021	233
2020	489
2019	249
Prior	2,324
Revolving	48,380
Total ending loans balance	52,647	56,321
Retail [Member] \| Home Equity [Member] \| Performing [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	71
2022	901
2021	233
2020	489
2019	249
Prior	2,324
Revolving	48,380
Total ending loans balance	52,647
Retail [Member] \| Home Equity [Member] \| Nonperforming [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	0
Retail [Member] \| Consumer Other [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	304
2022	1,133
2021	687
2020	360
2019	100
Prior	224
Revolving	0
Total ending loans balance	2,808	$ 2,839
Retail [Member] \| Consumer Other [Member] \| Performing [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	304
2022	1,133
2021	687
2020	360
2019	100
Prior	224
Revolving	0
Total ending loans balance	2,808
Retail [Member] \| Consumer Other [Member] \| Nonperforming [Member]
Loan ratings by grade for commercial loans [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	0
Total ending loans balance	$ 0

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans	$ 1,220,939	$ 1,177,748
Consumer Loan [Member] \| Residential Mortgage [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		139,148
Consumer Loan [Member] \| Residential Mortgage [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		139,071
Consumer Loan [Member] \| Residential Mortgage [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		77
Consumer Loan [Member] \| Consumer Unsecured [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		121
Consumer Loan [Member] \| Consumer Unsecured [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		121
Consumer Loan [Member] \| Consumer Unsecured [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		0
Consumer Loan [Member] \| Home Equity [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		56,321
Consumer Loan [Member] \| Home Equity [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		56,321
Consumer Loan [Member] \| Home Equity [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		0
Consumer Loan [Member] \| Consumer Other [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		2,839
Consumer Loan [Member] \| Consumer Other [Member] \| Performing [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		2,839
Consumer Loan [Member] \| Consumer Other [Member] \| Nonperforming [Member]
Recorded investment in consumer loans based on payment activity [Abstract]
Total loans		$ 0

FAIR VALUE, Assets Measured at

FAIR VALUE, Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 525,959	$ 499,257
Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Collateral dependent loans	327
Impaired loans		328
U.S. Treasury and Federal Agency Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	241,858	224,634
U.S. Agency MBS and CMOs [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	122,244	113,818
Tax-Exempt State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	36,949	36,710
Taxable State and Municipal Bonds [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	113,137	112,171
Corporate Bonds and Other Debt Securities [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,771	11,924
Recurring Basis [Member]
Assets and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	87	215
Interest rate swaps	5,294	6,463
Total assets measured at fair value on recurring basis	532,661	507,239
Interest rate swaps	(5,294)	(6,463)
Total liabilities measured at fair value on recurring basis	(5,294)	(6,463)
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	87	215
Interest rate swaps	5,294	6,463
Total assets measured at fair value on recurring basis	532,661	507,239
Interest rate swaps	(5,294)	(6,463)
Total liabilities measured at fair value on recurring basis	(5,294)	(6,463)
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	241,858	224,634
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	241,858	224,634
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	122,244	113,818
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	122,244	113,818
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	36,949	36,710
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	36,949	36,710
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	113,137	112,171
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	113,137	112,171
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	11,771	11,924
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	11,771	11,924
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	1,321	1,304
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	1,321	1,304
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]
Collateral dependent loans	327
Impaired loans		328
Nonrecurring Basis [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Collateral dependent loans	0
Impaired loans		0
Nonrecurring Basis [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Collateral dependent loans	0
Impaired loans		0
Nonrecurring Basis [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Collateral dependent loans	$ 327
Impaired loans		$ 328

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Collateral dependent loans	$ 327
Impaired loans		$ 328
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]
Collateral dependent loans, unobservable inputs	0.015
Impaired loans, unobservable inputs		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]
Collateral dependent loans, unobservable inputs	0.20
Impaired loans, unobservable inputs		0.20
Income Approach [Member] \| Capitalization Rate [Member] \| Minimum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Collateral dependent loans, unobservable inputs	0.095
Impaired loans, unobservable inputs		0.095
Income Approach [Member] \| Capitalization Rate [Member] \| Maximum [Member]
Quantitative information about Level 3 fair value measurements measured on non-recurring basis [Abstract]
Collateral dependent loans, unobservable inputs	0.11
Impaired loans, unobservable inputs		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	Mar. 31, 2023	Dec. 31, 2022
Financial assets [Abstract]
Cash and due from banks	$ 29,402	$ 51,215
Federal funds sold and other short-term investments	391,336	703,955
Bank owned life insurance	53,557	53,345
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	29,402	51,215
Federal funds sold and other short-term investments	391,336	703,955
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	29,402	51,215
Federal funds sold and other short-term investments	391,336	703,955
Significant Other Observable Inputs (Level 2) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Loans, net	1,203,818	1,162,135
Accrued interest receivable	8,782	7,606
Financial liabilities [Abstract]
Deposits	(2,330,895)	(2,615,142)
Other borrowed funds	(30,000)	(30,000)
Accrued interest payable	(228)	(114)
Significant Other Observable Inputs (Level 2) [Member] \| Carrying Amount [Member] \| U.S. Treasury Member]
Financial assets [Abstract]
Securities held to maturity	251,286	251,307
Significant Other Observable Inputs (Level 2) [Member] \| Fair Value [Member]
Financial assets [Abstract]
Loans, net	1,185,925	1,131,387
Accrued interest receivable	8,782	7,606
Financial liabilities [Abstract]
Deposits	(2,331,330)	(2,615,860)
Other borrowed funds	(28,824)	(28,666)
Accrued interest payable	(228)	(114)
Significant Other Observable Inputs (Level 2) [Member] \| Fair Value [Member] \| U.S. Treasury Member]
Financial assets [Abstract]
Securities held to maturity	240,012	237,630
Significant Unobservable Inputs (Level 3) [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
FHLB stock	10,211	10,211
Bank owned life insurance	53,557	53,345
Significant Unobservable Inputs (Level 3) [Member] \| Carrying Amount [Member] \| Tax-Exempt State and Municipal Bonds [Member]
Financial assets [Abstract]
Securities held to maturity	97,101	97,458
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value [Member]
Financial assets [Abstract]
FHLB stock	10,211	10,211
Bank owned life insurance	53,557	53,345
Significant Unobservable Inputs (Level 3) [Member] \| Fair Value [Member] \| Tax-Exempt State and Municipal Bonds [Member]
Financial assets [Abstract]
Securities held to maturity	$ 95,547	$ 95,020

FAIR VALUE, Off-balance Sheet (

FAIR VALUE, Off-balance Sheet (Details) - Loan Commitments [Member] - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial instruments with off-balance sheet credit risk [Abstract]
Off-balance sheet credit-related items	$ 115,100	$ 77,384
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	Mar. 31, 2023	Dec. 31, 2022
Fair value of derivative instruments [Abstract]
Securities pledged as collateral	$ 1,800	$ 1,700
Interest Rate Swap [Member] \| Other Assets [Member]
Fair value of derivative instruments [Abstract]
Notional amount	57,560	62,661
Fair value	5,294	6,463
Interest Rate Swap [Member] \| Other Liabilities [Member]
Fair value of derivative instruments [Abstract]
Notional amount	57,560	62,661
Fair value	$ 5,294	$ 6,463

DEPOSITS (Details)

DEPOSITS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 690,444,000	$ 834,879,000
Interest bearing demand	608,967,000	760,889,000
Savings and money market accounts	858,895,000	922,418,000
Certificates of deposit	172,589,000	96,956,000
Total deposits	2,330,895,000	2,615,142,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits that exceeded FDIC insurance limit	$ 56,100,000	$ 29,700,000

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 30,000	$ 30,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	453,200	446,100
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	30,000	30,000
Federal Home Loan Bank Advances [Member] \| Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 10,000	$ 10,000
Range of maturities	2024	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%	2.63%
Federal Home Loan Bank Advances [Member] \| Putable Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 20,000	$ 20,000
Range of maturities	2024	2024
Federal Home Loan Bank Advances [Member] \| Putable Advances [Member] \| Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.81%	1.81%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Scheduled repayments of FHLB advances [Abstract]
2023	$ 0
2024	30,000
2025	0
2026	0
2027	0
Thereafter	0
Total	$ 30,000	$ 30,000

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt instruments [Abstract]
Loans	$ 1,204,145	$ 1,162,463
Federal Reserve Bank Borrowings [Member]
Debt instruments [Abstract]
Advances under new borrowing facility	0	0
Unused borrowing capacity	1,500	5,500
Federal Reserve Bank Borrowings [Member] \| Bank Term Funding Program [Member]
Debt instruments [Abstract]
Advances under new borrowing facility	0
Unused borrowing capacity	642,200
Loans	$ 0
Debt instrument, term	1 year
Prepayment penalty	$ 0
Expiration date	Mar. 11, 2024
Federal Reserve Bank Borrowings [Member] \| Asset Pledged as Collateral [Member]
Debt instruments [Abstract]
Loans	$ 1,600	$ 5,800

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares	$ 12,004	$ 6,000
Weighted average shares outstanding, including participating stock awards - Basic (in shares)	34,297,221	34,254,772
Dilutive potential common shares [Abstract]
Stock options (in shares)	0	0
Weighted average shares outstanding - Diluted (in shares)	34,297,221	34,254,772
Basic earnings per common share (in dollars per share)	$ 0.35	$ 0.18
Diluted earnings per common share (in dollars per share)	$ 0.35	$ 0.18
Stock Options [Member]
Earnings per common share [Abstract]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	0	0

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income tax expense [Abstract]
Current	$ 2,825	$ 935
Deferred	150	456
Income tax expense	$ 2,975	$ 1,391
Difference between financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income [Abstract]
Statutory rate	21%	21%
Statutory rate applied to income before taxes	$ 3,146	$ 1,552
Deduct [Abstract]
Tax-exempt interest income	(147)	(154)
Bank-owned life insurance	(42)	(50)
Other, net	18	43
Income tax expense	2,975	$ 1,391
Deferred tax assets [Abstract]
Allowance for loan losses	3,527		$ 3,210
Net deferred loan fees	0		0
Nonaccrual loan interest	12		12
Valuation allowance on other real estate owned	0		0
Unrealized loss on securities available for sale and transferred to held to maturity	6,980		8,394
Other	297		257
Gross deferred tax assets	10,816		11,873
Valuation allowance	0		0
Total net deferred tax assets	10,816		11,873
Deferred tax liabilities [Abstract]
Depreciation	(1,104)		(1,098)
Net deferred loan fees	(20)		(309)
Prepaid expenses	(309)		(21)
Other	(912)		(733)
Gross deferred tax liabilities	(2,345)		(2,161)
Net deferred tax asset	8,471		9,712
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 ($)	3 Months Ended
COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
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	$ 82,000	$ 0
Other Liabilities [Member]
Unfunded Loan Commitments [Abstract]
Reserve for unfunded commitments	61,000
Commitments to Extend Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Commitments to extend credit	$ 115,100,000	77,384,000
Commitments to make loans at fixed rates	67.20%
Expiration period of commitment to make variable rate loan	30 days
Commitments to Extend Credit [Member] \| SOFR [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Term of variable rate	1 month
Letters of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Commitments to extend credit	$ 11,937,000	13,455,000
Unused Lines of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Commitments to extend credit	719,013,000	745,674,000
Commitment to Sell Mortgage-Backed Securities [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Commitments to extend credit	$ 1,100,000	$ 0

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ in Thousands	3 Months Ended
SHAREHOLDERS' EQUITY (Details) $ in Thousands	Mar. 31, 2023 USD ($) Category	Dec. 31, 2022 USD ($)
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	$ 286,826	$ 278,615
CET1 capital (to risk weighted assets), actual ratio	0.171	0.169
Tier 1 capital (to risk weighted assets), actual amount	$ 286,826	$ 278,615
Tier 1 capital (to risk weighted assets), actual ratio	0.171	0.169
Total capital (to risk weighted assets), actual amount	$ 303,620	$ 293,900
Total capital (to risk weighted assets), actual ratio	0.181	0.179
Tier 1 capital (to average assets), actual amount	$ 286,826	$ 278,615
Tier 1 capital (to average assets), actual ratio	0.103	0.097
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 75,561	$ 74,003
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	$ 100,748	$ 98,670
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	$ 134,331	$ 131,561
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.08	0.08
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 111,845	$ 114,589
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	$ 117,539	$ 115,116
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	$ 142,726	$ 139,783
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	$ 176,309	$ 172,673
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	$ 278,347	$ 270,274
CET1 capital (to risk weighted assets), actual ratio	0.166	0.164
Tier 1 capital (to risk weighted assets), actual amount	$ 278,347	$ 270,274
Tier 1 capital (to risk weighted assets), actual ratio	0.166	0.164
Total capital (to risk weighted assets), actual amount	$ 295,141	$ 285,559
Total capital (to risk weighted assets), actual ratio	0.176	0.174
Tier 1 capital (to average assets), actual amount	$ 278,347	$ 270,274
Tier 1 capital (to average assets), actual ratio	0.10	0.094
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 75,558	$ 73,992
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	$ 100,744	$ 98,655
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	$ 134,325	$ 131,540
Total capital (to risk weighted assets), minimum capital adequacy, ratio	0.08	0.08
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 111,839	$ 114,582
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	$ 117,535	$ 115,098
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	$ 142,720	$ 139,762
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	$ 176,302	$ 172,647
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	$ 109,139	$ 106,877
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	$ 134,325	$ 131,540
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	$ 167,906	$ 164,426
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	$ 139,799	$ 143,227
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	0.05	0.05