FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022.

	(in thousands)
September 30, 2023	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	$	96,978	$	96,978	$	—	$	—
Securities of U.S. government agencies and corporations		114,964		—		114,964		—
Obligations of states and political subdivisions		44,484		—		44,484		—
Collateralized mortgage obligations		91,300		—		91,300		—
Mortgage-backed securities		219,683		—		219,683		—
Total investments at fair value	$	567,409	$	96,978	$	470,431	$	—

	(in thousands)
December 31, 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	$	113,815	$	113,815	$	—	$	—
Securities of U.S. government agencies and corporations		118,911		—		118,911		—
Obligations of states and political subdivisions		53,326		—		53,326		—
Collateralized mortgage obligations		95,350		—		95,350		—
Mortgage-backed securities		236,690		—		236,690		—
Total investments at fair value	$	618,092	$	113,815	$	504,277	$	—

Assets Measured at Fair Value on a Nonrecurring Basis

The table below presents the recorded amount of assets measured at fair value on a nonrecurring basis that had a write-down or an additional allowance provided during the nine months ended September 30, 2023.

	(in thousands)
September 30, 2023	Carrying Value		Level 1		Level 2		Level 3
Individually evaluated loans	$	1,439	$	—	$	—	$	1,439
Total assets at fair value	$	1,439	$	—	$	—	$	1,439

Key Methods and Assumptions Used in Measuring Fair Value

Key methods and assumptions used in measuring the fair value of collateral dependent loans as of September 30, 2023 were as follows:

	Method	Assumption Inputs
Individually evaluated loans	Collateral, market, income, enterprise, liquidation, and discounted cash flows	External appraised values, management assumptions regarding market trends or other relevant factors, selling costs of 8% (generally ranging from 6% to 10%), or the amount and timing of cash flows based on the loan’s effective interest rate.

Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments for the periods ended September 30, 2023 and December 31, 2022 were approximately as follows:

(in thousands)			September 30, 2023				December 31, 2022
	Level		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets:
Cash and cash equivalents		1	$	197,105	$	197,105	$	187,417	$	187,417
Certificates of deposit		2		20,696		20,311		20,948		20,560
Stock in Federal Home Loan Bank and other equity securities		3		10,518		10,518		9,440		9,440
Loans receivable:
Net loans		3		1,037,066		933,513		970,138		929,163
Loans held-for-sale		2		369		371		—		—
Interest receivable		2		7,185		7,185		5,745		5,745
Mortgage servicing rights		3		1,503		2,031		1,650		2,101
Financial liabilities:
Time deposits		3		125,098		124,671		44,355		43,987
Interest payable		2		1,211		1,211		93		93