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FAIR VALUE (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2021 or 2020.
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
December 31, 2021 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 19,702 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,702 |
States and political subdivisions | — |  |  | 183,171 |  |  | 10,199 |  |  | 193,370 |
GSE residential MBSs | — |  |  | 40,726 |  |  | — |  |  | 40,726 |
GSE residential CMOs | — |  |  | 65,922 |  |  | — |  |  | 65,922 |
Non-agency CMOs | — |  |  | 16,750 |  |  | 12,948 |  |  | 29,698 |
Asset-backed | — |  |  | 122,621 |  |  | — |  |  | 122,621 |
Other | 399 |  |  | — |  |  | — |  |  | 399 |
Loans held for sale | — |  |  | 8,868 |  |  | — |  |  | 8,868 |
Derivatives | — |  |  | 764 |  |  | 353 |  |  | 1,117 |
Totals | $ | 20,101 |  |  | $ | 438,822 |  |  | $ | 23,500 |  |  | $ | 482,423 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 760 |  |  | $ | — |  |  | $ | 760 |
December 31, 2020 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
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 |
Derivatives | — |  |  | 690 |  |  | 673 |  |  | 1,363 |
Totals | $ | 371 |  |  | $ | 447,015 |  |  | $ | 32,176 |  |  | $ | 479,562 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 1,956 |  |  | $ | — |  |  | $ | 1,956 |
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, 2021 or 2020.
Investment securities: |  |  |
| 2021 |  | 2020
Balance, beginning of year | $ | 31,503 |  |  | $ | 24,279 |
Unrealized gain (loss) included in OCI | 31 |  |  | (668) |
Net discount accretion | — |  |  | 571 |
Principal payments | (4,842) |  |  | (10,571) |
Sold | (3,545) |  |  | — |
Transfers into Level 3 | — |  |  | 17,892 |
Balance, end of year | $ | 23,147 |  |  | $ | 31,503 |
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 that year due to the COVID-19 pandemic. As such, older trades or trades of similar securities were utilized to approximate fair value. There were no transfers into or out of Level 3 at December 31, 2021.
Interest rate lock commitments on residential mortgages: |  |  |
| 2021 |  | 2020
Balance, beginning of year | $ | 673 |  |  | $ | 103 |
Total (loss) gain included in earnings | (320) |  |  | 570 |
Balance, end of year | $ | 353 |  |  | $ | 673 |
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, 2021 and 2020.
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
December 31, 2021 |  |  |  |  |  |  |
Impaired loans |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |
Owner-occupied | $ | — |  |  | $ | — |  |  | $ | 751 |  |  | $ | 751 |
Non-owner occupied residential | — |  |  | — |  |  | 24 |  |  | 24 |
Residential mortgage: |  |  |  |  |  |  |
First lien | — |  |  | — |  |  | 545 |  |  | 545 |
Home equity - lines of credit | — |  |  | — |  |  | 72 |  |  | 72 |
Total impaired loans | $ | — |  |  | $ | — |  |  | $ | 1,392 |  |  | $ | 1,392 |
Mortgage servicing rights | $ | — |  |  | $ | — |  |  | $ | 322 |  |  | $ | 322 |
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 | $ | — |  |  | $ | — |  |  | $ | 2,732 |  |  | $ | 2,732 |
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, 2021 |  |  |  |  |  |  |
Impaired loans | $ | 1,392 |  |  | Appraisal of collateral |  | Management adjustments on appraisals for property type and recent activity |  | 10% - 25% discount
|  |  |  |  | - Management adjustments for liquidation expenses |  | 6.08% - 17.93% discount
Mortgage servicing rights | 322 |  |  | Discounted cash flows |  | Weighted average CPR |  | 12.60%
|  |  |  |  | Discount rate |  | 9.03%
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 | 2,732 |  |  | Discounted cash flows |  | Weighted average CPR |  | 18.02%
|  |  |  |  | Discount rate |  | 9.56%
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, 2021, and 2020.
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2021 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 21,217 |  |  | $ | 21,217 |  |  | $ | 21,217 |  |  | $ | — |  |  | $ | — |
Interest-bearing deposits with banks | 187,493 |  |  | 187,493 |  |  | 187,493 |  |  | — |  |  | — |
Restricted investments in bank stock | 7,252 |  |  | n/a |  | n/a |  | n/a |  | n/a
Investment securities | 472,438 |  |  | 472,438 |  |  | 20,101 |  |  | 429,190 |  |  | 23,147 |
Loans held for sale | 8,868 |  |  | 8,868 |  |  | — |  |  | 8,868 |  |  | — |
Loans, net of allowance for loan losses | 1,958,806 |  |  | 1,946,365 |  |  | — |  |  | — |  |  | 1,946,365 |
Derivatives | 1,117 |  |  | 1,117 |  |  | — |  |  | 764 |  |  | 353 |
Accrued interest receivable | 8,234 |  |  | 8,235 |  |  | — |  |  | 2,203 |  |  | 6,032 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,464,929 |  |  | 2,466,191 |  |  | — |  |  | 2,466,191 |  |  | — |
Securities sold under agreements to repurchase | 23,301 |  |  | 23,301 |  |  | — |  |  | 23,301 |  |  | — |
FHLB advances and other | 1,896 |  |  | 2,035 |  |  | — |  |  | 2,035 |  |  | — |
Subordinated notes | 31,963 |  |  | 31,815 |  |  | — |  |  | 31,815 |  |  | — |
Derivatives | 760 |  |  | 760 |  |  | — |  |  | 760 |  |  | — |
Accrued interest payable | 154 |  |  | 154 |  |  | — |  |  | 154 |  |  | — |
Off-balance sheet instruments | — |  |  | — |  |  | — |  |  | — |  |  | — |
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 |
Derivatives | 1,363 |  |  | 1,363 |  |  | — |  |  | 690 |  |  | 673 |
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 |  |  | — |
Derivatives | 1,956 |  |  | 1,956 |  |  | — |  |  | 1,956 |  |  | — |
Accrued interest payable | 238 |  |  | 238 |  |  | — |  |  | 238 |  |  | — |
Off-balance sheet instruments | — |  |  | — |  |  | — |  |  | — |  |  | — |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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