FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2022

FAIR VALUE

Schedule of fair values of assets and liabilities measured on recurring and non-recurring basis

	December 31, 2022
									Total Gains
(Dollars in thousands)	Total		Level 1		Level 2		Level 3		(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies	$	5,059	$	—	$	—	$	5,059
States and political subdivisions		6,403		—		6,403		—
Mortgage-backed GSE residential		7,783		—		7,783		—
Total securities available for sale		19,245		—		14,186		5,059
Equity securities		10,300		10,300		—		—
SBA servicing asset		7,038		—		—		7,038
Interest only strip		47		—		—		47
Interest rate derivatives		28,781		—		28,781		—
	$	65,411	$	10,300	$	42,967	$	12,144
Nonrecurring fair value measurements:
Impaired loans	$	1,045	$	—	$	—	$	1,045	$	229
Liabilities
Recurring fair value measurements:
Interest rate derivatives	$	779	$	—	$	779	$	—

	December 31, 2021
									Total Gains
(Dollars in thousands)	Total		Level 1		Level 2		Level 3		(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies	$	6,949	$	—	$	—	$	6,949
States and political subdivisions		8,361		—		8,361		—
Mortgage-backed GSE residential		10,423		—		10,423		—
Total securities available for sale		25,733		—		18,784		6,949
Equity securities		11,386		11,386		—		—
SBA servicing asset		10,091		—		—		10,091
Interest only strip		143		—		—		143
Interest rate derivatives		367		—		367		—
	$	47,720	$	11,386	$	19,151	$	17,183
Nonrecurring fair value measurements:
Impaired loans	$	947	$	—	$	—	$	947	$	(7)
Liabilities
Recurring fair value measurements:
Interest rate derivatives	$	46	$	—	$	46	$	—

Schedule of reconciliation of fair values of assets and liabilities measured on recurring basis using unobservable inputs

	Obligations of		SBA
	U.S. Government		Servicing		Interest Only
(Dollars in thousands)	Entities and Agencies		Asset		Strip		Liabilities
Fair value, January 1, 2022	$	6,949	$	10,091	$	143	$	—
Total loss included in income		—		(3,053)		(96)		—
Settlements		—		—		—		—
Prepayments/paydowns		(1,890)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, December 31, 2022	$	5,059	$	7,038	$	47	$	—
Fair value, January 1, 2021	$	9,306	$	9,488	$	155	$	—
Total gain (loss) included in income		—		603		(12)		—
Settlements		—		—		—		—
Prepayments/paydowns		(2,357)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, December 31, 2021	$	6,949	$	10,091	$	143	$	—
Fair value, January 1, 2020	$	12,436	$	8,162	$	26	$	—
Total loss included in income		—		1,326		129		—
Settlements		—		—		—		—
Prepayments/paydowns		(3,130)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, December 31, 2020	$	9,306	$	9,488	$	155	$	—

Schedule of quantitative information about recurring Level 3 fair value measures

	Valuation	Unobservable	General
	Technique	Input	Range
December 31, 2022
Recurring:
Obligations of U.S. Government entities and agencies	Discounted Cash Flows	Discount Rate	0%-3%
SBA servicing asset and interest only strip	Discounted Cash Flows	Prepayment speed	13.12%-17.60%
		Discount rate	8.21%-19.30%
Nonrecurring:
Impaired loans	Appraisal value less estimated selling costs	Estimated selling costs	6%
December 31, 2021
Recurring:
Obligations of U.S. Government entities and agencies	Discounted Cash Flows	Discount Rate	0%-3%
SBA servicing asset and interest only strip	Discounted Cash Flows	Prepayment speed	14.43%-17.12%
		Discount rate	7.57%-12.25%
Nonrecurring:
Impaired loans	Appraisal value less estimated selling costs	Estimated selling costs	6%

Schedule of carrying amounts and estimated fair values of Company's financial instruments

	Carrying			Estimated Fair Value at December 31, 2022
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash, due from banks, and federal funds sold	$	179,485	$	—	$	179,485	$	—	$	179,485
Investment securities		29,545		10,300		14,186		5,059		29,545
Federal Home Loan Bank stock		17,493		—		—		—		N/A
Loans, net		3,041,801		—		—		2,999,520		2,999,520
Accrued interest receivable		13,171		—		98		13,073		13,171
SBA servicing assets		7,038		—		—		7,038		7,038
Interest only strips		47		—		—		47		47
Mortgage servicing assets		3,973		—		—		7,209		7,209
Interest rate derivatives		28,781		—		28,781		—		28,781
Financial Liabilities:
Deposits		2,666,838		—		2,658,837		—		2,658,837
Federal Home Loan Bank advances		375,000		—		376,575		—		376,575
Other borrowings		392		—		392		—		392
Accrued interest payable		2,739		—		2,739		—		2,739
Interest rate derivatives		779		—		779		—		779

	Carrying		Estimated Fair Value at December 31, 2021
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash, due from banks, and federal funds sold	$	441,341	$	—	$	441,341	$	—	$	441,341
Investment securities		37,119		11,386		18,784		6,949		37,119
Federal Home Loan Bank stock		19,701		—		—		—		N/A
Loans, net		2,488,118		—		—		2,561,269		2,561,269
Accrued interest receivable		11,052		—		100		10,952		11,052
SBA servicing assets		10,091		—		—		10,091		10,091
Interest only strips		143		—		—		143		143
Mortgage servicing assets		7,747		—		—		7,937		7,937
Interest rate derivatives		367		—		367		—		367
Financial Liabilities:
Deposits		2,263,020		—		2,263,246		—		2,263,246
Federal Home Loan Bank advances		500,000		—		501,450		—		501,450
Other borrowings		459		—		459		—		459
Accrued interest payable		204		—		204		—		204
Interest rate derivatives		46		—		46		—		46