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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value on a Recurring Basis

The following table summarizes assets measured at fair value on a recurring basis at December 31, 2020 or 2019.

			Level 1						Level 2						Level 3						Total Fair Value Measurements
December 31, 2020
Investment securities:
States and political subdivisions			$	—					$	103,591					$	9,079					$	112,670
GSE residential MBSs			—						4,293						—						4,293
GSE residential CMOs			—						58,011						—						58,011
Non-agency CMOs			—						—						16,918						16,918
Private label commercial CMOs			—						56,730						5,506						62,236
Asset-backed			—						211,966						—						211,966
Other			371						—						—						371
Loans held for sale			—						11,734						—						11,734
Interest rate swaps			—						690						—						690
Interest rate lock commitments on residential mortgages			—						—						673						673
Totals			$	371					$	447,015					$	32,176					$	479,562
December 31, 2019
Investment securities:
States and political subdivisions			$	—					$	87,863					$	—					$	87,863
GSE residential CMOs			—						68,154						—						68,154
Non-agency 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, Assets Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the years ended December 31, 2020 or 2019.

Investment securities:
			2020						2019
Balance, beginning of year			$	24,279					$	7,209
Unrealized gain (loss) included in OCI			(668)						(17)
Purchases			—						17,619
Net discount accretion			571						7
Principal payments			(10,571)						(539)
Transfers into Level 3			17,892						—
Balance, end of year			$	31,503					$	24,279

The transfers into Level 3 for 2020 noted above relate to two CMO investment securities and one municipal bond for which trading was substantially limited during the year due to the COVID-19 pandemic. As such, older trades or trades of similar securities were utilized to approximate fair value.

Interest rate lock commitments on residential mortgages:
			2020						2019
Balance, beginning of year			$	103					$	—
Total gain included in earnings			570						103
Balance, end of year			$	673					$	103

Summary of Assets Measured at Fair Value on Nonrecurring Basis

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

			Level 1						Level 2						Level 3						Total Fair Value Measurements
December 31, 2020
Impaired loans
Commercial real estate:
Owner-occupied			$	—					$	—					$	846					$	846
Non-owner occupied residential			—						—						36						36
Commercial and industrial			—						—						12						12
Residential mortgage:
First lien			—						—						638						638
Home equity - lines of credit			—						—						89						89
Total impaired loans			$	—					$	—					$	1,621					$	1,621
Mortgage servicing rights			$	—					$	—					$	2,745					$	2,745
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

Schedule 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

December 31, 2020

Impaired loans

$

1,621

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

5% - 25% discount

- Management adjustments for liquidation expenses

6.02% - 19.32% discount

Mortgage servicing rights

2,745

Discounted cash flows

Weighted average CPR

18.02%

Discount rate

9.56%

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%

Discount rate

9.54%

Schedule of Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities at December 31, 2020, and 2019.

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
December 31, 2020
Financial Assets
Cash and due from banks			$	26,203					$	26,203					$	26,203					$	—					$	—
Interest-bearing deposits with banks			99,055						99,055						99,055						—						—
Restricted investments in bank stock			10,563						n/a						n/a						n/a						n/a
Investment securities			466,465						466,465						371						434,591						31,503
Loans held for sale			11,734						11,734						—						11,734						—
Loans, net of allowance for loan losses			1,959,539						1,953,860						—						—						1,953,860
Interest rate lock commitments on residential mortgages			673						673						—						—						673
Interest rate swaps			690						690						—						690						—
Accrued interest receivable			8,927						8,927						—						1,529						7,398
Financial Liabilities
Deposits			2,356,880						2,359,317						—						2,359,317						—
Securities sold under agreements to repurchase			19,466						19,466						—						19,466						—
FHLB advances and other			58,045						58,298						—						58,298						—
Subordinated notes			31,903						31,712						—						31,712						—
Interest rate swaps			1,956						1,956						—						1,956						—
Accrued interest payable			238						238						—						238						—
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 stock			16,184						n/a						n/a						n/a						n/a
Investment securities			490,885						490,885						637						465,969						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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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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