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FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value on Recurring Basis

The following table summarizes assets measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2020
Investment securities:
States and political subdivisions			$	—					$	112,707					$	—					$	112,707
GSE residential MBSs			—						4,578						—						4,578
GSE residential CMOs			—						62,139						—						62,139
Nonagency CMOs			—						—						17,162						17,162
Private label commercial CMOs			—						62,479						6,730						69,209
Asset-backed			—						212,150						—						212,150
Other			343						—						—						343
Loans held for sale			—						12,804						—						12,804
Interest rate swaps			—						339						—						339
Interest rate lock commitments on residential mortgages			—						—						1,143						1,143
Totals			$	343					$	467,196					$	25,035					$	492,574
December 31, 2019
Investment securities:
States and political subdivisions			$	—					$	87,863					$	—					$	87,863
GSE residential CMOs			—						68,154						—						68,154
Nonagency CMOs			—						—						17,087						17,087
Private label commercial CMOs			—						79,437						7,192						86,629
Asset-backed			—						230,515						—						230,515
Other			637						—						—						637
Loans held for sale			—						9,364						—						9,364
Interest rate lock commitments on residential mortgages			—						—						103						103
Totals			$	637					$	475,333					$	24,382					$	500,352

Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2020 and 2019:

CMOs:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
Balance, beginning of period			$	23,834					$	—					$	24,279					$	—
Unrealized gain (loss) included in OCI			200						—						(229)						—
Principal payments and other			(142)						—						(158)						—
Balance, end of period			$	23,892					$	—					$	23,892					$	—

Interest rate lock commitments on residential mortgages:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
Balance, beginning of period			$	986					$	—					$	103					$	—
Total gains
Included in earnings			157						—						1,040						—
Balance, end of period			$	1,143					$	—					$	1,143					$	—

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2020
Impaired Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	875					$	875
Multi-family			—						—						74						74
Non-owner occupied residential			—						—						39						39
Commercial and industrial			—						—						195						195
Residential mortgage:
First lien			—						—						684						684
Home equity - lines of credit			—						—						174						174
Total impaired loans			$	—					$	—					$	2,041					$	2,041
Mortgage servicing rights			$	—					$	—					$	2,661					$	2,661
December 31, 2019
Impaired Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	938					$	938
Multi-family			—						—						96						96
Non-owner occupied residential			—						—						103						103
Commercial and industrial			—						—						11						11
Residential mortgage:
First lien			—						—						641						641
Home equity - lines of credit			—						—						400						400
Installment and other loans			—						—						7						7
Total impaired loans			$	—					$	—					$	2,196					$	2,196
Mortgage servicing rights			$	—					$	—					$	3,119					$	3,119

Summary of Additional Qualitative Information

The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

Fair Value Estimate

Valuation Techniques

Unobservable Input

Range

September 30, 2020

Impaired loans

$

2,041

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

0% - 25% discount

- Management adjustments for liquidation expenses

6%- 19% discount

Mortgage servicing rights

$

2,661

Discounted cash flows

Weighted average CPR

16.96%

- Weighted average discount rate

9.57%

December 31, 2019

Impaired loans

$

2,196

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

0% - 20% discount

- Management adjustments for liquidation expenses

6% - 33% discount

Mortgage servicing rights

$

3,119

Discounted cash flows

Weighted average CPR

11.63%

- Weighted average discount rate

9.54%

Financial Instruments at Estimated Fair Values

The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at September 30, 2020 and December 31, 2019:

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
September 30, 2020
Financial Assets
Cash and due from banks			$	26,854					$	26,854					$	26,854					$	—					$	—
Interest-bearing deposits with banks			60,453						60,453						60,453						—						—
Restricted investments in bank stocks			12,646						n/a						n/a						n/a						n/a
Investment securities			478,288						478,288						—						454,396						23,892
Loans held for sale			12,804						12,804						—						12,804						—
Loans, net of allowance for loan losses			2,010,145						2,003,349						—						—						2,003,349
Interest rate lock commitments on residential mortgages			1,143						1,143						—						—						1,143
Interest rate swaps			339						339						—						339						—
Accrued interest receivable			8,812						8,812						—						1,810						7,002
Financial Liabilities
Deposits			2,279,483						2,282,669						—						2,282,669						—
Securities sold under agreements to repurchase			17,445						17,445						—						17,445						—
FHLB advances and other			183,373						183,650						—						183,650						—
Subordinated notes			31,889						32,009						—						32,009						—
Interest rate swaps			2,014						2,014						—						2,014						—
Accrued interest payable			819						819						—						819						—
December 31, 2019
Financial Assets
Cash and due from banks			$	25,969					$	25,969					$	25,969					$	—					$	—
Interest-bearing deposits with banks			30,493						30,493						30,493						—						—
Restricted investments in bank stocks			16,184						n/a						n/a						n/a						n/a
Investment securities			490,386						490,386						—						466,107						24,279
Loans held for sale			9,364						9,364						—						9,364						—
Loans, net of allowance for loan losses			1,629,675						1,652,788						—						—						1,652,788
Interest rate lock commitments on residential mortgages			103						103						—						—						103
Accrued interest receivable			6,040						6,040						—						1,863						4,177
Financial Liabilities
Deposits			1,875,522						1,876,555						—						1,876,555						—
Securities sold under agreements to repurchase			8,269						8,269						—						8,269						—
FHLB advances and other			209,667						210,005						—						210,005						—
Subordinated notes			31,847						33,953						—						33,953						—
Accrued interest payable			879						879						—						879						—

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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