FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Information related to the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022 is as follows:

	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2023
U.S. Treasury securities	$	8,758	$	—	$	8,758	$	—
U.S. Government Sponsored Enterprises (GSEs)	2,721		—		2,721		—
State and municipal securities	40,445		—		40,445		—
Corporate debt securities	11,517		—		11,517		—
Asset based securities	20,921		—		20,921		—
Mortgage-backed GSE residential/multifamily and non-GSE	79,188		—		79,188		—
Other equity securities	3,806		3,709		—		97
Interest Rate Products - asset	7,325		—		7,325		—
Interest Rate Products - liabilities	(7,340)		—		(7,340)		—
December 31, 2022
U.S. Treasury securities	$	8,584	$	—	$	8,584	$	—
U.S. Government Sponsored Enterprises (GSEs)	1,788		—		1,788		—
State and municipal securities	49,925		—		49,925		—
Corporate debt securities	11,627		—		11,627		—
Asset based securities	13,337		—		13,337		—
Mortgage-backed GSE residential/multifamily and non-GSE	70,283		—		70,283		—
Other equity securities	4,444		3,674		—		770
Interest Rate Products - asset	8,870		—		8,870		—
Interest Rate Products - liabilities	(8,882)		—		(8,882)		—

The carrying amount and estimated fair value of the Company’s financial instruments were as follows:

	March 31, 2023
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	192,796	$	192,796	$	—	$	—
Securities available for sale	163,550		—		163,550		—
Other equity securities	3,806		3,709		—		97
Loans held for sale	2,376		—		2,376		—
Trading assets	7,325		—		7,325		—
Loans, net	1,625,460		—		1,583,848		14,645
Bank owned life insurance	29,350		—		29,350		—
Annuities	15,489		—		15,489		—
Accrued interest receivable	7,077		—		7,077		—
Restricted equity securities	3,862		—		—		3,862
Financial liabilities:
Deposits	$	1,789,491	$	—	$	1,785,185	$	—
Trading liabilities	7,340		—		7,340		—
FHLB advances	45,000		—		44,902		—
Other borrowings	(16)		—		(16)		—
Subordinated notes	86,388		—		86,388		—
Accrued interest payable	844		—		844		—

Fair Value of Financial Instruments (Continued)

	December 31, 2022
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	168,499	$	168,499	$	—	$	—
Securities available for sale	155,544		—		155,544		—
Other equity securities	4,444		3,674		—		770
Loans held for sale	1,047		—		1,047		—
Trading assets	8,870		—		8,870		—
Loans, net	1,530,666		—		1,529,646		1,020
Bank owned life insurance	29,186		—		29,186		—
Annuities	15,478		—		15,478		—
Accrued interest receivable	6,963		—		6,963		—
Restricted equity securities	3,134		—		—		3,134
Financial liabilities:
Deposits	$	1,720,743	$	—	$	1,714,249	$	—
Trading liabilities	8,882		—		8,882		—
FHLB advances	30,788		—		30,788		—
Other borrowings	(19)		—		(19)		—
Subordinated notes	86,314		—		86,314		—
Accrued interest payable	584		—		584		—

Fair Value Measurements, Nonrecurring

Assets measured at fair value on a nonrecurring basis are included in the table below as of March 31, 2023 and December 31, 2022:

	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2023:
Impaired loans	$	14,645	$	—	$	—	$	14,645
Foreclosed assets	2,930		—		—		2,930
Totals	$	17,575	$	—	$	—	$	17,575

	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2022:
Impaired loans	$	1,020	$	—	$	—	$	1,020
Foreclosed assets	2,930		—		—		2,930
Totals	$	3,950	$	—	$	—	$	3,950

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a recurring basis as of March 31, 2023, the significant unobservable inputs used in the fair value measurements are presented below.

	Carrying Amount		Valuation Technique	Significant Unobservable Input	Weighted Average of Input
Recurring:
Other equity securities	$	97	Discounted cash flow	Discount rate (%)	N/A

For Level 3 assets measured at fair value on a recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements are presented below.

	Carrying Amount		Valuation Technique	Significant Unobservable Input	Weighted Average of Input
Recurring:
Other equity securities	$	770	Discounted cash flow	Discount rate (%)	N/A

For Level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2023, the significant unobservable inputs used in the fair value measurements are presented below.

	Carrying Amount		Valuation Technique	Significant Unobservable Input	Weighted Average of Input
Nonrecurring:
Impaired loans	$	14,645	Appraisal	Appraisal discounts (%)	15-20%
Foreclosed assets	$	2,930	Appraisal	Appraisal discounts (%)	10-15%

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements are presented below.

	Carrying Amount		Valuation Technique	Significant Unobservable Input	Weighted Average of Input
Nonrecurring:
Impaired loans	$	1,020	Appraisal	Appraisal discounts (%)	15-20%
Foreclosed assets	$	2,930	Appraisal	Appraisal discounts (%)	10-15%