FAIR VALUE ACCOUNTING (Tables)
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6 Months Ended |
Jun. 30, 2020 |
Fair Value Disclosures [Abstract] |
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Schedule of Assets Measured on Recurring Basis |
The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019: | | | | | | | | | | | | | | | | | | Fair Value | | Quoted Prices in Active Markets for Identical Instruments (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | June 30, 2020 | | | | | | | | Investment securities: | | | | | | | | U.S. government agency obligations | $ | 35,353 |
| | $ | — |
| | $ | 35,353 |
| | $ | — |
| Obligations of states and political subdivisions | 140 |
| | — |
| | 140 |
| | — |
| Mortgage-backed securities | 59,372 |
| | — |
| | 59,372 |
| | — |
| Corporate debt securities | 20,079 |
| | — |
| | 20,079 |
| | — |
| Corporate asset based securities | 34,822 |
| | — |
| | 34,822 |
| | — |
| Trust preferred securities | 12,950 |
| | — |
| | 12,950 |
| | — |
| Total | $ | 162,716 |
| | $ | — |
| | $ | 162,716 |
| | $ | — |
| December 31, 2019 | | | | | | | | Investment securities: | | | | | | | | U.S. government agency obligations | $ | 51,805 |
| | $ | — |
| | $ | 51,805 |
| | $ | — |
| Obligations of states and political subdivisions | 281 |
| | — |
| | 281 |
| | — |
| Mortgage-backed securities | 71,331 |
| | — |
| | 71,331 |
| | — |
| Corporate debt securities | 18,725 |
| | — |
| | 18,725 |
| | — |
| Corporate asset backed securities | 26,854 |
| | — |
| | 26,854 |
| | — |
| Trust preferred securities | 11,123 |
| | — |
| | 11,123 |
| | — |
| Total | $ | 180,119 |
| | $ | — |
| | $ | 180,119 |
| | $ | — |
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Schedule of Assets Measured on Nonrecurring Basis |
The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2020 and December 31, 2019: | | | | | | | | | | | | | | | | | | Carrying Value | | Quoted Prices in Active Markets for Identical Instruments (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | June 30, 2020 | | | | | | | | Foreclosed and repossessed assets, net | $ | 734 |
| | $ | — |
| | $ | — |
| | $ | 734 |
| Impaired loans with allocated allowances | 4,058 |
| | — |
| | — |
| | 4,058 |
| Mortgage servicing rights | 3,509 |
| | — |
| | — |
| | 3,509 |
| Total | $ | 8,301 |
| | $ | — |
| | $ | — |
| | $ | 8,301 |
| December 31, 2019 | | | | | | | | Foreclosed and repossessed assets, net | $ | 1,460 |
| | $ | — |
| | $ | — |
| | $ | 1,460 |
| Impaired loans with allocated allowances | 3,175 |
| | — |
| | — |
| | 3,175 |
| Mortgage servicing rights | 4,282 |
| | — |
| | — |
| | 4,309 |
| Total | $ | 8,917 |
| | $ | — |
| | $ | — |
| | $ | 8,944 |
| | | | | | | | |
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Schedule of Fair Value of Assets |
The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at June 30, 2020. | | | | | | | | | | | | Fair Value | | Valuation Techniques (1) | | Significant Unobservable Inputs (2) | | Range | June 30, 2020 | | | | | | | | Foreclosed and repossessed assets, net | $ | 734 |
| | Appraisal value | | Estimated costs to sell | | 10 - 15% | Impaired loans with allocated allowances | $ | 4,058 |
| | Appraisal value | | Estimated costs to sell | | 10 - 15% | Mortgage servicing rights | $ | 3,509 |
| | Discounted cash flows | | Discounted rates | | 9.5% - 12.5% | December 31, 2019 | | | | | | | | Foreclosed and repossessed assets, net | $ | 1,460 |
| | Appraisal value | | Estimated costs to sell | | 10 - 15% | Impaired loans with allocated allowances | $ | 3,175 |
| | Appraisal value | | Estimated costs to sell | | 10 - 15% | Mortgage servicing rights | $ | 4,309 |
| | Discounted cash flows | | Discounted rates | | 9.5% - 12.5% |
(1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of impaired loans and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes.
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Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments |
The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows: | | | | | | | | | | | | | | | | | | | | | | June 30, 2020 | | December 31, 2019 | | Valuation Method Used | | Carrying Amount | | Estimated Fair Value | | Carrying Amount | | Estimated Fair Value | Financial assets: | | | | | | | | | | Cash and cash equivalents | (Level I) | | $ | 39,581 |
| | $ | 39,581 |
| | $ | 55,840 |
| | $ | 55,840 |
| Other interest-bearing deposits | (Level II) | | 3,752 |
| | 3,855 |
| | 4,744 |
| | 4,792 |
| Securities available for sale “AFS” | (Level II) | | 162,716 |
| | 162,716 |
| | 180,119 |
| | 180,119 |
| Securities held to maturity “HTM” | (Level II) | | 10,541 |
| | 10,922 |
| | 2,851 |
| | 2,957 |
| Equity securities with readily determinable fair value | (Level I) | | 188 |
| | 188 |
| | 246 |
| | 246 |
| Other investments | (Level II) | | 15,193 |
| | 15,193 |
| | 15,005 |
| | 15,005 |
| Loans receivable, net | (Level III) | | 1,267,802 |
| | 1,292,278 |
| | 1,167,060 |
| | 1,161,660 |
| Loans held for sale | (Level II) | | 8,876 |
| | 8,876 |
| | 5,893 |
| | 5,893 |
| Mortgage servicing rights | (Level III) | | 3,509 |
| | 3,509 |
| | 4,282 |
| | 4,309 |
| Accrued interest receivable | (Level 1) | | 5,855 |
| | 5,855 |
| | 4,738 |
| | 4,738 |
| Financial liabilities: | | | | | | | | | | Deposits | (Level III) | | $ | 1,272,197 |
| | $ | 1,273,191 |
| | $ | 1,195,702 |
| | $ | 1,192,777 |
| FHLB advances | (Level II) | | 124,484 |
| | 129,689 |
| | 130,971 |
| | 131,593 |
| Other borrowings | (Level I) | | 43,595 |
| | 43,595 |
| | 43,560 |
| | 43,560 |
| Accrued interest payable | (Level I) | | 373 |
| | 373 |
| | 453 |
| | 453 |
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