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FAIR VALUE (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
September 30, 2023 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 17,143 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,143 |
U.S. Government Agencies | — |  |  | 4,322 |  |  | — |  |  | 4,322 |
States and political subdivisions | — |  |  | 182,522 |  |  | 5,595 |  |  | 188,117 |
GSE residential MBSs | — |  |  | 57,351 |  |  | — |  |  | 57,351 |
GSE commercial MBSs | — |  |  | 4,778 |  |  | — |  |  | 4,778 |
GSE residential CMOs | — |  |  | 72,037 |  |  | — |  |  | 72,037 |
Non-agency CMOs | — |  |  | 17,521 |  |  | 21,458 |  |  | 38,979 |
Asset-backed | — |  |  | 112,315 |  |  | — |  |  | 112,315 |
Other | 120 |  |  | — |  |  | — |  |  | 120 |
Loans held for sale | — |  |  | 6,448 |  |  | — |  |  | 6,448 |
Derivatives | — |  |  | 16,553 |  |  | 15 |  |  | 16,568 |
Totals | $ | 17,263 |  |  | $ | 473,847 |  |  | $ | 27,068 |  |  | $ | 518,178 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 14,328 |  |  | $ | — |  |  | $ | 14,328 |
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 |
Level 3 Fair Value Measurement Activity | The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2023 and 2022: Investment securities:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance, beginning of period | $ | 27,994 |  |  | $ | 6,255 |  |  | $ | 27,193 |  |  | $ | 23,147 |
Unrealized losses included in OCI | (736) |  |  | (422) |  |  | (600) |  |  | (2,002) |
Purchases | — |  |  | — |  |  | 871 |  |  | — |
Net discount accretion (premium amortization) | 19 |  |  | (4) |  |  | 42 |  |  | 62 |
Principal payments and other | (225) |  |  | — |  |  | (454) |  |  | — |
Sales | — |  |  | — |  |  | — |  |  | (3,053) |
Calls | — |  |  | — |  |  | — |  |  | (12,154) |
OTTI | — |  |  | — |  |  | — |  |  | (171) |
Balance, end of period | $ | 27,052 |  |  | $ | 5,829 |  |  | $ | 27,052 |  |  | $ | 5,829 |
Interest rate lock commitments on residential mortgages:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance, beginning of period | $ | 67 |  |  | $ | 186 |  |  | $ | 35 |  |  | $ | 353 |
Total losses included in earnings | (52) |  |  | (98) |  |  | (20) |  |  | (265) |
Balance, end of period | $ | 15 |  |  | $ | 88 |  |  | $ | 15 |  |  | $ | 88 |
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, 2023 and December 31, 2022:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
September 30, 2023 |  |  |  |  |  |  |
Individually Evaluated Loans |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied | $ | — |  |  | $ | — |  |  | $ | 88 |  |  | $ | 88 |
Non-owner occupied residential | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial | — |  |  | — |  |  | 146 |  |  | 146 |
Residential mortgage: |  |  |  |  |  |  |
First lien | — |  |  | — |  |  | 226 |  |  | 226 |
Home equity - lines of credit | — |  |  | — |  |  | 62 |  |  | 62 |
Total individually evaluated loans | $ | — |  |  | $ | — |  |  | $ | 522 |  |  | $ | 522 |
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 |
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, 2023 |  |  |  |  |  |  |
Individually evaluated loans | $ | 522 |  |  | Appraisal of collateral |  | Management adjustments on appraisals for property type and recent activity |  | 10% - 25% discount
|  |  |  |  | - Management adjustments for liquidation expenses |  | 6.75% - 10.29% discount
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
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at September 30, 2023 and December 31, 2022:
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2023 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 34,728 |  |  | $ | 34,728 |  |  | $ | 34,728 |  |  | $ | — |  |  | $ | — |
Interest-bearing deposits with banks | 60,211 |  |  | 60,211 |  |  | 60,211 |  |  | — |  |  | — |
Restricted investments in bank stock | 12,987 |  |  | n/a |  | n/a |  | n/a |  | n/a
Investment securities | 495,162 |  |  | 495,162 |  |  | 17,263 |  |  | 450,846 |  |  | 27,053 |
Loans held for sale | 6,448 |  |  | 6,448 |  |  | — |  |  | 6,448 |  |  | — |
Loans, net of allowance for credit losses | 2,238,558 |  |  | 2,083,811 |  |  | — |  |  | — |  |  | 2,083,811 |
Derivatives | 16,568 |  |  | 16,568 |  |  | — |  |  | 16,553 |  |  | 15 |
Accrued interest receivable | 12,212 |  |  | 12,212 |  |  | — |  |  | 4,338 |  |  | 7,874 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,546,435 |  |  | 2,542,571 |  |  | — |  |  | 2,542,571 |  |  | — |
Deposits held for assumption in connection with sale of bank branches | — |  |  | — |  |  | — |  |  | — |  |  | — |
Securities sold under agreements to repurchase and federal funds purchased | 17,991 |  |  | 17,991 |  |  | — |  |  | 17,991 |  |  | — |
FHLB advances and other borrowings | 157,250 |  |  | 156,513 |  |  | — |  |  | 156,513 |  |  | — |
Subordinated notes | 32,076 |  |  | 28,774 |  |  | — |  |  | 28,774 |  |  | — |
Derivatives | 14,328 |  |  | 14,328 |  |  | — |  |  | 14,328 |  |  | — |
Accrued interest payable | 1,783 |  |  | 1,783 |  |  | — |  |  | 1,783 |  |  | — |
Off-balance sheet instruments | — |  |  | — |  |  | — |  |  | — |  |  | — |
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 borrowings | 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 | — |  |  | — |  |  | — |  |  | — |  |  | — |

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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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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