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FAIR VALUE (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Summary of Assets Measured at Fair Value on a Recurring Basis The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2021 or 2020.
Level 1Level 2Level 3
Total Fair
Value
Measurements
December 31, 2021
Financial Assets
Investment securities:
U.S. Treasury securities$19,702 $ $ $19,702 
States and political subdivisions 183,171 10,199 193,370 
GSE residential MBSs 40,726  40,726 
GSE residential CMOs
 65,922  65,922 
Non-agency CMOs 16,750 12,948 29,698 
Asset-backed 122,621  122,621 
Other399   399 
Loans held for sale 8,868  8,868 
Derivatives 764 353 1,117 
Totals$20,101 $438,822 $23,500 $482,423 
Financial Liabilities
Derivatives$ $760 $ $760 
December 31, 2020
Financial Assets
Investment securities:
States and political subdivisions$— $103,591 $9,079 $112,670 
GSE residential MBSs— 4,293 — 4,293 
GSE residential CMOs
— 58,011 — 58,011 
Non-agency CMOs— — 16,918 16,918 
Private label commercial CMOs— 56,730 5,506 62,236 
Asset-backed— 211,966 — 211,966 
Other371 — — 371 
Loans held for sale— 11,734 — 11,734 
Derivatives— 690 673 1,363 
Totals$371 $447,015 $32,176 $479,562 
Financial Liabilities
Derivatives$— $1,956 $— $1,956 
Level 3 Fair Value, Assets Measurement Activity
The following provides details of the Level 3 fair value measurement activity for the years ended December 31, 2021 or 2020.
Investment securities:
20212020
Balance, beginning of year$31,503 $24,279 
Unrealized gain (loss) included in OCI31 (668)
Net discount accretion 571 
Principal payments(4,842)(10,571)
Sold(3,545)— 
Transfers into Level 3 17,892 
Balance, end of year$23,147 $31,503 
The transfers into Level 3 for 2020 noted above relate to two CMO investment securities and one municipal bond for which trading was substantially limited during that year due to the COVID-19 pandemic. As such, older trades or trades of similar securities were utilized to approximate fair value. There were no transfers into or out of Level 3 at December 31, 2021.
Interest rate lock commitments on residential mortgages:
20212020
Balance, beginning of year$673 $103 
Total (loss) gain included in earnings(320)570 
Balance, end of year$353 $673 
Summary of Assets Measured at Fair Value on Nonrecurring Basis The following table summarizes assets measured at fair value on a nonrecurring basis at December 31, 2021 and 2020.
Level 1Level 2Level 3
Total
Fair Value
Measurements
December 31, 2021
Impaired loans
Commercial real estate:
Owner-occupied$ $ $751 $751 
Non-owner occupied residential  24 24 
Residential mortgage:
First lien  545 545 
Home equity - lines of credit  72 72 
Total impaired loans$ $ $1,392 $1,392 
Mortgage servicing rights$ $ $322 $322 
December 31, 2020
Impaired loans
Commercial real estate:
Owner-occupied$— $— $846 $846 
Non-owner occupied residential— — 36 36 
Commercial and industrial— — 12 12 
Residential mortgage:
First lien— — 638 638 
Home equity - lines of credit— — 89 89 
Total impaired loans$— $— $1,621 $1,621 
Mortgage servicing rights$— $— $2,732 $2,732 
Schedule of Additional Qualitative Information The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value.
Fair Value
Estimate
Valuation Techniques
Unobservable Input
Range
December 31, 2021
Impaired loans$1,392 Appraisal of collateralManagement adjustments on appraisals for property type and recent activity
10% - 25% discount
 - Management adjustments for liquidation expenses
6.08% - 17.93% discount
Mortgage servicing rights
322 
Discounted cash flows
Weighted average CPR
12.60%
Discount rate
9.03%
December 31, 2020
Impaired loans$1,621 Appraisal of collateralManagement adjustments on appraisals for property type and recent activity
5% - 25% discount
 - Management adjustments for liquidation expenses
6.02% - 19.32% discount
Mortgage servicing rights2,732 Discounted cash flowsWeighted average CPR18.02%
Discount rate9.56%
Schedule of Estimated Fair Values of Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities at December 31, 2021, and 2020.
Carrying
Amount
Fair ValueLevel 1Level 2Level 3
December 31, 2021
Financial Assets
Cash and due from banks$21,217 $21,217 $21,217 $ $ 
Interest-bearing deposits with banks187,493 187,493 187,493   
Restricted investments in bank stock7,252 n/an/an/an/a
Investment securities472,438 472,438 20,101 429,190 23,147 
Loans held for sale8,868 8,868  8,868  
Loans, net of allowance for loan losses1,958,806 1,946,365   1,946,365 
Derivatives1,117 1,117  764 353 
Accrued interest receivable8,234 8,235  2,203 6,032 
Financial Liabilities
Deposits2,464,929 2,466,191  2,466,191  
Securities sold under agreements to repurchase23,301 23,301  23,301  
FHLB advances and other1,896 2,035  2,035  
Subordinated notes31,963 31,815  31,815  
Derivatives760 760  760  
Accrued interest payable154 154  154  
Off-balance sheet instruments     
December 31, 2020
Financial Assets
Cash and due from banks$26,203 $26,203 $26,203 $— $— 
Interest-bearing deposits with banks99,055 99,055 99,055 — — 
Restricted investments in bank stock10,563 n/an/an/an/a
Investment securities466,465 466,465 371 434,591 31,503 
Loans held for sale11,734 11,734 — 11,734 — 
Loans, net of allowance for loan losses1,959,539 1,953,860 — — 1,953,860 
Derivatives1,363 1,363 — 690 673 
Accrued interest receivable8,927 8,927 — 1,529 7,398 
Financial Liabilities
Deposits2,356,880 2,359,317 — 2,359,317 — 
Securities sold under agreements to repurchase19,466 19,466 — 19,466 — 
FHLB advances and other58,045 58,298 — 58,298 — 
Subordinated notes31,903 31,712 — 31,712 — 
Derivatives1,956 1,956 — 1,956 — 
Accrued interest payable238 238 — 238 — 
Off-balance sheet instruments— — — — —