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FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
March 31, 2024
Financial Assets
Investment securities:
U.S. Treasury securities			$	17,669					$	—					$	—					$	17,669
U.S. Government Agencies			—						3,859						—						3,859
States and political subdivisions			—						194,598						6,270						200,868
GSE residential MBSs			—						57,956						—						57,956
GSE commercial MBSs			—						4,384						—						4,384
GSE residential CMOs			—						91,444						—						91,444
Non-agency CMOs			—						23,246						11,464						34,710
Asset-backed			—						103,899						—						103,899
Other			120						—						—						120
Loans held for sale			—						535						—						535
Derivatives			—						13,197						56						13,253
Totals			$	17,789					$	493,118					$	17,790					$	528,697
Financial Liabilities
Derivatives			$	—					$	12,052					$	—					$	12,052
December 31, 2023
Financial Assets
Investment securities:
U.S. Treasury securities			$	17,840					$	—					$	—					$	17,840
U.S. Government Agencies			—						4,151						—						4,151
States and political subdivisions			—						197,060						6,062						203,122
GSE residential MBSs			—						57,632						—						57,632
GSE commercial MBSs			—						4,743						—						4,743
GSE residential CMOs			—						73,102						—						73,102
Non-agency CMOs			—						22,878						21,791						44,669
Asset-backed			—						108,134						—						108,134
Other			126						—						—						126
Loans held for sale			—						5,816						—						5,816
Derivatives			—						11,328						55						11,383
Totals			$	17,966					$	484,844					$	27,908					$	530,718
Financial Liabilities
Derivatives			$	—					$	13,464					$	—					$	13,464

Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the periods ended March 31, 2024 and 2023:

Investment securities:

									Three Months Ended March 31,
															2024						2023
Balance, beginning of period															$	27,853					$	27,193
Unrealized gains included in OCI															96						220
Purchases															—						871
Net discount accretion															17						13
Principal payments and other															(125)						(107)
Calls															(10,107)						—
Balance, end of period															$	17,734					$	28,190

Interest rate lock commitments on residential mortgages:

									Three Months Ended March 31,
															2024						2023
Balance, beginning of period															$	55					$	35
Total gains included in earnings															1						22
Balance, end of period															$	56					$	57

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2024 and December 31, 2023:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
March 31, 2024
Individually Evaluated Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	61					$	61
Commercial and industrial			—						—						23						23
Residential mortgage:
First lien			—						—						214						214
Home equity - lines of credit			—						—						49						49
Total individually evaluated loans			$	—					$	—					$	347					$	347
December 31, 2023
Individually Evaluated Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	75					$	75
Commercial and industrial			—						—						164						164
Residential mortgage:
First lien			—						—						219						219
Home equity - lines of credit			—						—						56						56
Total individually evaluated loans			$	—					$	—					$	514					$	514

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

March 31, 2024

Individually evaluated loans

$

347

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 70% discount

- Management adjustments for liquidation expenses

3.30% - 12.30% discount

December 31, 2023

Individually evaluated loans

$

514

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 70% discount

- Management adjustments for liquidation expenses

3.30% - 12.30% 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 March 31, 2024 and December 31, 2023:

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
March 31, 2024
Financial Assets
Cash and due from banks			$	23,552					$	23,552					$	23,552					$	—					$	—
Interest-bearing deposits with banks			159,170						159,170						159,170						—						—
Restricted investments in bank stock			11,453						n/a						n/a						n/a						n/a
Investment securities			514,909						514,909						17,789						479,386						17,734
Loans held for sale			535						535						—						535						—
Loans, net of allowance for credit losses			2,273,908						2,166,917						—						—						2,166,917
Derivatives			13,253						13,253						—						13,197						56
Accrued interest receivable			13,496						13,496						—						4,569						8,927
Financial Liabilities
Deposits			2,695,951						2,693,547						—						2,693,547						—
Securities sold under agreements to repurchase and federal funds purchased			12,099						12,099						—						12,099						—
FHLB advances and other borrowings			115,000						114,650						—						114,650						—
Subordinated notes			32,111						29,458						—						29,458						—
Derivatives			12,052						12,052						—						12,052						—
Accrued interest payable			2,435						2,435						—						2,435						—
Off-balance sheet instruments			—						—						—						—						—
December 31, 2023
Financial Assets
Cash and due from banks			$	32,586					$	32,586					$	32,586					$	—					$	—
Interest-bearing deposits with banks			32,575						32,575						32,575						—						—
Restricted investments in bank stock			11,992						n/a						n/a						n/a						n/a
Investment securities			513,519						513,519						17,966						467,700						27,853
Loans held for sale			5,816						5,816						—						5,816						—
Loans, net of allowance for loan losses			2,269,611						2,159,745						—						—						2,159,745
Derivatives			11,383						11,383						—						11,328						55
Accrued interest receivable			13,630						13,630						—						4,987						8,643
Financial Liabilities
Deposits			2,558,814						2,555,904						—						2,555,904						—
Securities sold under agreements to repurchase			9,785						9,785						—						9,785						—
FHLB advances and other borrowings			137,500						137,500						—						137,500						—
Subordinated notes			32,093						29,887						—						29,887						—
Derivatives			13,464						13,464						—						13,464						—
Accrued interest payable			2,560						2,560						—						2,560						—
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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