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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2023

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

Assets and liabilities measured at fair value on a recurring basis are as follows at June 30, 2023 and December 31, 2022:


			Fair Value Measurements at June 30, 2023 Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Securities Available-For-Sale:
U.S. Government sponsored entities	$	2,994	$	—	$	2,994	$	—
States and political subdivisions	92,476		—		92,476		—
Residential and multi-family mortgage	203,432		—		203,432		—
Corporate notes and bonds	42,857		—		42,857		—
Pooled SBA	11,377		—		11,377		—

Total Securities Available-For-Sale	$	353,136	$	—	$	353,136	$	—
Interest Rate swaps	$	1,458	$	—	$	1,458	$	—
Equity Securities:
Corporate equity securities	$	5,633	$	5,633	$	—	$	—
Mutual funds	2,196		2,196		—		—
Money market funds	738		738		—		—
Corporate notes	699		—		699		—

Total Equity Securities	$	9,266	$	8,567	$	699	$	—
Liabilities:
Interest Rate Swaps	$	(1,393)	$	—	$	(1,393)	$	—

























			Fair Value Measurements at December 31, 2022 Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Securities Available-For-Sale:
U.S. Government sponsored entities	$	3,129	$	—	$	3,129	$	—
States and political subdivisions	95,663		—		95,663		—
Residential and multi-family mortgage	217,547		—		217,547		—
Corporate notes and bonds	42,391		—		42,391		—
Pooled SBA	12,679		—		12,679		—

Total Securities Available-For-Sale	$	371,409	$	—	$	371,409	$	—
Interest Rate swaps	$	1,850	$	—	$	1,850	$	—
Equity Securities:
Corporate equity securities	$	6,973	$	6,973	$	—	$	—
Mutual funds	1,406		1,406		—		—
Money market funds	479		479		—		—
Corporate notes	757		757		—		—

Total Equity Securities	$	9,615	$	9,615	$	—	$	—
Liabilities:
Interest Rate Swaps	$	(1,700)	$	—	$	(1,700)	$	—

Schedule of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are as follows at June 30, 2023 and December 31, 2022:


			Fair Value Measurements at June 30, 2023 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans receivable:
Farmland	$	829	$	—	$	—	$	829
Owner-occupied, nonfarm nonresidential properties	795		—		—		795
Commercial and industrial	1,472		—		—		1,472
Other construction loans and all land development loans and other land loans	1,770		—		—		1,770
Multifamily (5 or more) residential properties	310		—		—		310
Non-owner occupied, nonfarm nonresidential	1,775		—		—		1,775
Home equity lines of credit	323		—		—		323
Residential Mortgages secured by first liens	902		—		—		902


			Fair Value Measurements at December 31, 2022 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans receivable:
Farmland	$	829	$	—	$	—	$	829
Owner-occupied, nonfarm nonresidential properties	1,071		—		—		1,071
Commercial and industrial	1,631		—		—		1,631
Other construction loans and all land development loans and other land loans	501		—		—		501
Multifamily (5 or more) residential properties	613		—		—		613
Non-owner occupied, nonfarm nonresidential	3,867		—		—		3,867
Home equity lines of credit	335		—		—		335
Residential mortgages secured by first liens	944		—		—		944

Schedule of Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2023:

Fair
value

Valuation
Technique

Unobservable Inputs

Range
(Weighted
Average)

Collateral-dependent loans receivable:

Farmland

829

Valuation of third party appraisal on underlying collateral

Loss severity rates

27% (27%)

Owner-occupied, nonfarm nonresidential properties

795

Valuation of third party appraisal on underlying collateral

Loss severity rates

22%-100% (24%)

Commercial and industrial

1,472

Valuation of third party appraisal on underlying collateral

Loss severity rates

4%-100% (34%)

Other construction loans and all land development loans and other land loans

1,770

Valuation of third party appraisal on underlying collateral

Loss severity rates

32% (32%)

Multifamily (5 or more) residential properties

310

Valuation of third party appraisal on underlying collateral

Loss severity rates

26% (26%)

Non-owner occupied, nonfarm nonresidential

1,775

Valuation of third party appraisal on underlying collateral

Loss severity rates

25%-33% (31%)

Home equity lines of credit

323

Valuation of third party appraisal on underlying collateral

Loss severity rates

15%-22% (16%)

Residential Mortgages secured by first liens

902

Valuation of third party appraisal on underlying collateral

Loss severity rates

22%-38% (30%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2022:

Fair
value

Valuation
Technique

Unobservable Inputs

Range
(Weighted
Average)

Collateral-dependent loans receivable:

Farmland

829

Valuation of third party appraisal on underlying collateral

Loss severity rates

20% (20%)

Owner-occupied, nonfarm nonresidential properties

1,071

Valuation of third party appraisal on underlying collateral

Loss severity rates

25%-100% (29%)

Commercial and industrial

1,631

Valuation of third party appraisal on underlying collateral

Loss severity rates

3%-49% (23%)

Other construction loans and all land development loans and other land loans

501

Valuation of third party appraisal on underlying collateral

Loss severity rates

33% (33%)

Multifamily (5 or more) residential properties

613

Valuation of third party appraisal on underlying collateral

Loss severity rates

19%-25% (23%)

Non-owner occupied, nonfarm nonresidential

3,867

Valuation of third party appraisal on underlying collateral

Loss severity rates

15%-53% (35%)

Home equity lines of credit

335

Valuation of third party appraisal on underlying collateral

Loss severity rates

15% (15%)

Residential mortgages secured by first liens

944

Valuation of third party appraisal on underlying collateral

Loss severity rates

15%-27% (21%)

Schedule of Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at June 30, 2023:


	Carrying		Fair Value Measurement Using:						Total
	Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS
Cash and cash equivalents	$	125,163	$	125,163	$	—	$	—	$	125,163
Debt securities available-for-sale	353,136		—		353,136		—		353,136
Debt securities held-to-maturity	394,238		—		358,806		—		358,806
Equity securities	9,266		8,567		699		—		9,266
Loans held for sale	1,654		—		1,656		—		1,656
Net loans receivable	4,419,293		—		—		4,326,096		4,326,096
FHLB and other restricted stock holdings and investments	27,883		n/a		n/a		n/a		n/a
Interest rate swaps	1,458		—		1,458		—		1,458
Accrued interest receivable	20,492		—		2,753		17,739		20,492
LIABILITIES
Deposits	$	(4,933,075)	$	(4,378,331)	$	(556,190)	$	—	$	(4,934,521)

Subordinated notes and debentures	(104,735)		—		(124,896)		—		(124,896)
Interest rate swaps	(1,393)		—		(1,393)		—		(1,393)
Accrued interest payable	(2,438)		—		(2,438)		—		(2,438)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2022:


	Carrying		Fair Value Measurement Using:						Total
	Amount		Level 1		Level 2		Level 3		Fair Value
ASSETS
Cash and cash equivalents	$	106,285	$	106,285	$	—	$	—	$	106,285
Debt securities available-for-sale	371,409		—		371,409		—		371,409
Debt securities held-to-maturity	404,765		—		367,388		—		367,388
Equity securities	9,615		9,615		—		—		9,615
Loans held for sale	231		—		231		—		231
Net loans receivable	4,231,742		—		—		4,157,843		4,157,843
FHLB and other restricted stock holdings and investments	30,715		n/a		n/a		n/a		n/a
Interest rate swaps	1,850		—		1,850		—		1,850
Accrued interest receivable	20,194		—		2,867		17,327		20,194
LIABILITIES
Deposits	$	(4,622,437)	$	(4,175,976)	$	(445,788)	$	—	$	(4,621,764)
Short-term borrowings	(132,396)		—		(132,396)		—		(132,396)
Subordinated notes and debentures	(104,584)		—		(117,378)		—		(117,378)
Interest rate swaps	(1,700)		—		(1,700)		—		(1,700)
Accrued interest payable	(1,839)		—		(1,839)		—		(1,839)