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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022 or 2021.

			Level 1						Level 2						Level 3						Total Fair Value Measurements
December 31, 2022
Financial Assets
Investment securities:
U.S. Treasury securities			$	17,291					$	—					$	—					$	17,291
U.S. Government Agencies			—						5,135						—						5,135
States and political subdivisions			—						191,488						5,926						197,414
GSE residential MBSs			—						59,402						—						59,402
GSE residential CMOs			—						68,378						—						68,378
Non-agency CMOs			—						18,491						21,267						39,758
Asset-backed			—						125,973						—						125,973
Other			377						—						—						377
Loans held for sale			—						10,880						—						10,880
Derivatives			—						10,482						35						10,517
Totals			$	17,668					$	490,229					$	27,228					$	535,125
Financial Liabilities
Derivatives			$	—					$	11,333					$	—					$	11,333
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

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, 2022 or 2021.

Investment securities:
			2022						2021
Balance, beginning of year			$	23,147					$	31,503
Unrealized (loss) gain included in OCI			(1,859)						31
Purchases			21,237						—
Net discount accretion			56						—
Principal payments and other			(10)						(4,842)
Sales			(3,053)						(3,545)
Calls			(12,154)						—
OTTI			(171)						—
Balance, end of year			$	27,193					$	23,147

There were no transfers into or out of Level 3 at December 31, 2022 and 2021.

Interest rate lock commitments on residential mortgages:
			2022						2021
Balance, beginning of year			$	353					$	673
Total losses included in earnings			(318)						(320)
Balance, end of year			$	35					$	353

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, 2022 and 2021.

			Level 1						Level 2						Level 3						Total Fair Value Measurements
December 31, 2022
Impaired loans
Commercial real estate:
Owner-occupied			$	—					$	—					$	116					$	116
Non-owner occupied residential			—						—						9						9
Residential mortgage:
First lien			—						—						309						309
Home equity - lines of credit			—						—						86						86
Total impaired loans			$	—					$	—					$	520					$	520
Mortgage servicing rights			$	—					$	—					$	—					$	—
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

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, 2022

Impaired loans

$

520

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

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%

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, 2022, and 2021.

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
December 31, 2022
Financial Assets
Cash and due from banks			$	28,477					$	28,477					$	28,477					$	—					$	—
Interest-bearing deposits with banks			32,346						32,346						32,346						—						—
Restricted investments in bank stock			10,642						n/a						n/a						n/a						n/a
Investment securities			513,728						513,728						17,668						468,867						27,193
Loans held for sale			10,880						10,880						—						10,880						—
Loans, net of allowance for loan losses			2,126,054						1,991,164						—						—						1,991,164
Derivatives			10,517						10,517						—						10,482						35
Accrued interest receivable			11,027						11,027						—						4,441						6,586
Financial Liabilities
Deposits			2,444,939						2,440,660						—						2,440,660						—
Deposits held for assumption in connection with sale of bank branches			31,307						29,429						—						29,429						—
Securities sold under agreements to repurchase			17,251						17,251						—						17,251						—
FHLB advances and other			106,139						106,141						—						106,141						—
Subordinated notes			32,026						31,321						—						31,321						—
Derivatives			11,333						11,333						—						11,333						—
Accrued interest payable			457						457						—						457						—
Off-balance sheet instruments			—						—						—						—						—
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			—						—						—						—						—

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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).

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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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