FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of assets measured at fair value and the valuation methods used

	December 31, 2020
	Quoted
	Prices		Other
	in Active		Observable		Unobservable		Total
	Markets		Inputs		Inputs		Fair
(In Thousands)	(Level 1)		(Level 2)		(Level 3)		Value
Recurring fair value measurements, assets:
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of the U.S. Treasury	$	0	$	12,182	$	0	$	12,182
Obligations of U.S. Government agencies		0		26,344		0		26,344
Obligations of states and political subdivisions:
Tax-exempt		0		122,401		0		122,401
Taxable		0		47,452		0		47,452
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		0		38,176		0		38,176
Residential collateralized mortgage obligations		0		57,467		0		57,467
Commercial mortgage-backed securities		0		45,310		0		45,310
Total available-for-sale debt securities		0		349,332		0		349,332
Marketable equity security		1,000		0		0		1,000
Servicing rights		0		0		1,689		1,689
Interest rate swap agreements, assets		0		6,566		0		6,566
Total recurring fair value measurements, assets	$	1,000	$	355,898	$	1,689	$	358,587
Recurring fair value measurements, liabilities,
Interest rate swap agreements, liabilities	$	0	$	6,566	$	0	$	6,566
Nonrecurring fair value measurements, assets:
Impaired loans with a valuation allowance	$	0	$	0	$	8,082	$	8,082
Valuation allowance		0		0		(925)		(925)
Impaired loans, net		0		0		7,157		7,157
Foreclosed assets held for sale		0		0		1,338		1,338
Total nonrecurring fair value measurements, assets	$	0	$	0	$	8,495	$	8,495

	December 31, 2019
	Quoted
	Prices		Other
	in Active		Observable		Unobservable		Total
	Markets		Inputs		Inputs		Fair
(In Thousands)	(Level 1)		(Level 2)		(Level 3)		Value
Recurring fair value measurements, assets:
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of U.S. Government agencies	$	0	$	17,000	$	0	$	17,000
Obligations of states and political subdivisions:
Tax-exempt		0		70,760		0		70,760
Taxable		0		36,303		0		36,303
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		0		59,210		0		59,210
Residential collateralized mortgage obligations		0		114,723		0		114,723
Commercial mortgage-backed securities		0		48,727		0		48,727
Total available-for-sale debt securities		0		346,723		0		346,723
Marketable equity security		979		0		0		979
Servicing rights		0		0		1,277		1,277
Total recurring fair value measurements	$	979	$	346,723	$	1,277	$	348,979
Nonrecurring fair value measurements, assets
Impaired loans with a valuation allowance	$	0	$	0	$	3,375	$	3,375
Valuation allowance		0		0		(1,051)		(1,051)
Impaired loans, net		0		0		2,324		2,324
Foreclosed assets held for sale		0		0		2,886		2,886
Total nonrecurring fair value measurements, assets	$	0	$	0	$	5,210	$	5,210

Schedule of reconciliation of level 3 activity

(In Thousands)	Years Ended December 31,
	2020		2019
Servicing rights balance, beginning of period	$	1,277	$	1,404
Originations of servicing rights		988		204
Unrealized losses included in earnings		(576)		(331)
Servicing rights balance, end of period	$	1,689	$	1,277

Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value

(In Thousands)	Fair Value	December 31, 2020				December 31, 2019
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	96,017	$	96,017	$	31,122	$	31,122
Certificates of deposit	Level 2		5,840		6,054		4,080		4,227
Restricted equity securities (included in Other Assets)	Level 2		9,970		9,970		10,321		10,321
Loans, net	Level 3		1,632,824		1,646,207		1,172,386		1,181,000
Accrued interest receivable	Level 2		8,293		8,293		5,001		5,001
Interest rate swap agreements	Level 2		6,566		6,566		0		0
Financial liabilities:
Deposits with no stated maturity	Level 2		1,430,062		1,430,062		877,965		877,965
Time deposits	Level 2		390,407		393,566		374,695		376,738
Short-term borrowings	Level 2		20,022		19,974		86,220		86,166
Long-term borrowings	Level 2		54,608		55,723		52,127		52,040
Subordinated debt	Level 2		16,553		16,680		6,500		6,499
Accrued interest payable	Level 2		390		390		311		311
Interest rate swap agreements	Level 2		6,566		6,566		0		0

Recurring fair value measurements

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of inputs and valuation techniques

	Fair Value at
	12/31/2020		Valuation	Unobservable				Method or Value As of
Asset	(In Thousands)		Technique	Input(s)				12/31/2020
Servicing rights	$	1,689	Discounted cash flow	Discount rate		13.00	%	Rate used through modeling period
				Loan prepayment speeds		277.00	%	Weighted-average PSA
				Servicing fees		0.25	%	of loan balances
						4.00	%	of payments are late
						5.00	%	late fees assessed
					$	1.94		Miscellaneous fees per account per month
				Servicing costs	$	6.00		Monthly servicing cost per account
					$	24.00		Additional monthly servicing cost per loan on loans more than 30 days delinquent
						1.50	%	of loans more than 30 days delinquent
						3.00	%	annual increase in servicing costs

	Fair Value at
	12/31/2019		Valuation	Unobservable				Method or Value As of
Asset	(In Thousands)		Technique	Input(s)				12/31/2019
Servicing rights	$	1,277	Discounted cash flow	Discount rate		12.50	%	Rate used through modeling period
				Loan prepayment speeds		183.00	%	Weighted-average PSA
				Servicing fees		0.25	%	of loan balances
						4.00	%	of payments are late
						5.00	%	late fees assessed
					$	1.94		Miscellaneous fees per account per month
				Servicing costs	$	6.00		Monthly servicing cost per account
					$	24.00		Additional monthly servicing cost per loan on loans more than 30 days delinquent
						1.50	%	of loans more than 30 days delinquent
						3.00	%	annual increase in servicing costs

Nonrecurring fair value measurements

FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of inputs and valuation techniques

(Dollars In Thousands)									Weighted
			Valuation						Average
	Balance at		Allowance at		Fair Value at		Valuation	Unobservable	Discount at
Asset	12/31/2020		12/31/2020		12/31/2020		Technique	Inputs	12/31/2020
Impaired loans:
Residential mortgage loans - first and junior liens	$	1,509	$	162	$	1,347	Sales comparison	Discount to appraised value	31	%
Commercial:
Commercial loans secured by real estate		6,501		691		5,810	Sales comparison	Discount to appraised value	28	%
Commercial and industrial		72		72		0	Liquidation of assets	Discount to appraised value	100	%
Total impaired loans	$	8,082	$	925	$	7,157
Foreclosed assets held for sale - real estate:
Residential (1-4 family)	$	80	$	0	$	80	Sales comparison	Discount to appraised value	36	%
Commercial real estate		1,258		0		1,258	Sales comparison	Discount to appraised value	44	%
Total foreclosed assets held for sale	$	1,338	$	0	$	1,338

(Dollars In Thousands)									Weighted
			Valuation						Average
	Balance at		Allowance at		Fair Value at		Valuation	Unobservable	Discount at
Asset	12/31/2019		12/31/2019		12/31/2019		Technique	Inputs	12/31/2019
Impaired loans:
Residential mortgage loans - first and junior liens	$	732	$	176	$	556	Sales comparison	Discount to appraised value	30	%
Commercial:
Commercial and industrial		106		89		17	Sales comparison	Discount to appraised value	69	%
Commercial and industrial		798		60		738	Liquidation of accounts receivable	Discount to borrower's financial statement value	15	%
Commercial construction and land		1,261		678		583	Sales comparison	Discount to appraised value	47	%
Loans secured by farmland		478		48		430	Sales comparison	Discount to appraised value	46	%
Total impaired loans	$	3,375	$	1,051	$	2,324
Foreclosed assets held for sale - real estate:
Residential (1-4 family)	$	292	$	0	$	292	Sales comparison	Discount to appraised value	46	%
Land		70		0		70	Sales comparison	Discount to appraised value	53	%
Commercial real estate		2,524		0		2,524	Sales comparison	Discount to appraised value	39	%
Total foreclosed assets held for sale	$	2,886	$	0	$	2,886