FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2022

FAIR VALUE MEASUREMENTS [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021.

	(in thousands)
September 30, 2022	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	109,198	$	109,198	$	—	$	—
Securities of U.S. government agencies and corporations		110,367		—		110,367		—
Obligations of states and political subdivisions		51,556		—		51,556		—
Collateralized mortgage obligations		98,142		—		98,142		—
Mortgage-backed securities		238,722		—		238,722		—
Total investments at fair value	$	607,985	$	109,198	$	498,787	$	—

	(in thousands)
December 31, 2021	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	86,211	$	86,211	$	—	$	—
Securities of U.S. government agencies and corporations		102,610		—		102,610		—
Obligations of states and political subdivisions		45,985		—		45,985		—
Collateralized mortgage obligations		135,652		—		135,652		—
Mortgage-backed securities		261,755		—		261,755		—
Total investments at fair value	$	632,213	$	86,211	$	546,002	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2021:

	(in thousands)
December 31, 2021	Carrying Value		Level 1		Level 2		Level 3
Impaired loans	$	33	$	—	$	—	$	33
Mortgage servicing rights		1,531		—		—		1,531
Total assets at fair value	$	1,564	$	—	$	—	$	1,564

Key Methods and Assumptions Used in Measuring Fair Value

Key methods and assumptions used in measuring the fair value of impaired loans and mortgage servicing rights as of December 31, 2021 were as follows:

	Method	Assumption Inputs
Impaired loans	Collateral, market, income, enterprise, liquidation, and discounted cash flows	External appraised values, management assumptions regarding market trends or other relevant factors, selling costs generally ranging from 6% to 10%, or the amount and timing of cash flows based on the loan's effective interest rate.
Mortgage servicing rights	Discounted cash flows	Present value of expected future cash flows was estimated using a weighted average discount rate factor of 9.50% as of December 31, 2021. A weighted average constant prepayment rate of 15.73% as of December 31, 2021 was utilized.

Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2022 and December 31, 2021 were approximately as follows:

(in thousands)			September 30, 2022				December 31, 2021
	Level		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets:
Cash and cash equivalents		1	$	264,403	$	264,403	$	345,929	$	345,929
Certificates of deposit		2		11,091		10,699		13,272		13,443
Stock in Federal Home Loan Bank and other equity securities		3		9,440		9,440		7,097		7,097
Loans receivable:
Net loans		3		971,249		922,116		852,717		830,967
Loans held-for-sale		2		—		—		1,063		1,089
Interest receivable		2		5,543		5,543		4,571		4,571
Financial liabilities:
Deposits		3		1,799,605		1,423,719		1,728,302		1,678,658
Interest payable		2		89		89		42		42