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FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2024 and December 31, 2023:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2024
Financial Assets
Investment securities:
U.S. Treasury securities			$	18,373					$	—					$	—					$	18,373
U.S. Government Agencies			—						3,372						—						3,372
States and political subdivisions			—						199,426						6,674						206,100
GSE residential MBSs			—						150,361						—						150,361
GSE commercial MBSs			—						9,624						—						9,624
GSE residential CMOs			—						314,125						—						314,125
Non-agency CMOs			—						19,807						11,425						31,232
Asset-backed			—						91,468						—						91,468
Corporate bonds			—						1,975						—						1,975
Other			198						—						—						198
Loans held for sale			—						3,561						—						3,561
Derivatives			—						14,349						118						14,467
Totals			$	18,571					$	808,068					$	18,217					$	844,856
Financial Liabilities
Derivatives			$	—					$	17,828					$	—					$	17,828
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
Corporate bonds			—						—						—						—
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 September 30, 2024 and 2023:

Investment securities:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Balance, beginning of period			$	17,567					$	27,994					$	27,853					$	27,193
Unrealized gains (losses) included in OCI			649						(736)						731						(600)
Purchases			—						—						—						871
Net discount accretion			17						19						50						42
Principal payments and other			(134)						(225)						(428)						(454)
Calls			—						—						(10,107)						—
Balance, end of period			$	18,099					$	27,052					$	18,099					$	27,052

Interest rate lock commitments on residential mortgages:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Balance, beginning of period			$	71					$	67					$	55					$	35
Total gains (losses) included in earnings			47						(52)						63						(20)
Balance, end of period			$	118					$	15					$	118					$	15

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, 2024 and December 31, 2023:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2024
Individually Evaluated Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	1,038					$	1,038
Multi-family			—						—						762						762
Acquisition and development:
Commercial and land development			—						—						1,236						1,236
Commercial and industrial			—						—						846						846
Residential mortgage:
First lien			—						—						455						455
Home equity - lines of credit			—						—						39						39
Installment and other loans			—						—						3						3
Total individually evaluated loans			$	—					$	—					$	4,379					$	4,379
Mortgage servicing rights			$	—					$	—					$	305					$	305
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

September 30, 2024

Individually evaluated loans

$

4,379

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 25% discount

- Management adjustments for liquidation expenses

6.78% - 12.30% discount

Mortgage servicing rights

$

305

Discounted cash flows

Weighted average CPR

10.01%

- Weighted average discount rate

6.60%

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 September 30, 2024 and December 31, 2023:

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
September 30, 2024
Financial Assets
Cash and due from banks			$	65,064					$	65,064					$	65,064					$	—					$	—
Interest-bearing deposits with banks			171,716						171,716						171,716						—						—
Restricted investments in bank stock			20,247						n/a						n/a						n/a						n/a
Investment securities			826,828						826,828						18,571						790,158						18,099
Loans held for sale			3,561						3,561						—						3,561						—
Loans, net of allowance for credit losses			3,931,807						3,873,542						—						—						3,873,542
Derivatives			14,467						14,467						—						14,349						118
Accrued interest receivable			20,562						20,562						—						5,391						15,171
Financial Liabilities
Deposits			4,650,853						4,649,844						—						4,649,844						—
Securities sold under agreements to repurchase and federal funds purchased			21,932						21,932						—						21,932						—
FHLB advances and other borrowings			115,378						115,286						—						115,286						—
Subordinated notes and trust preferred debt			68,510						67,364						—						67,364						—
Derivatives			17,828						17,828						—						17,828						—
Accrued interest payable			3,591						3,591						—						3,591						—
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 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).

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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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