FAIR VALUE (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Fair Value Disclosures [Abstract] |
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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 1 | | Level 2 | | Level 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 | | Other | 399 | | | — | | | — | | | 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 | | Other | 371 | | | — | | | — | | | 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 | | | | | | | | | | | | | | | | | |
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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: | | | | | 2021 | | 2020 | Balance, beginning of year | $ | 31,503 | | | $ | 24,279 | | | | | | | | | | Unrealized gain (loss) included in OCI | 31 | | | (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: | | | | | 2021 | | 2020 | Balance, beginning of year | $ | 673 | | | $ | 103 | | Total (loss) gain included in earnings | (320) | | | 570 | | | | | | | | | | Balance, end of year | $ | 353 | | | $ | 673 | |
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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 1 | | Level 2 | | Level 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 | |
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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 collateral | | Management 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 collateral | | Management adjustments on appraisals for property type and recent activity | | 5% - 25% discount | | | | | | - Management adjustments for liquidation expenses | | 6.02% - 19.32% discount | | | | | | | | | | | | | | | | | Mortgage servicing rights | 2,732 | | | Discounted cash flows | | Weighted average CPR | | 18.02% | | | | | | Discount rate | | 9.56% |
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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 Value | | Level 1 | | Level 2 | | Level 3 | December 31, 2021 | | | | | | | | | | Financial Assets | | | | | | | | | | Cash and due from banks | $ | 21,217 | | | $ | 21,217 | | | $ | 21,217 | | | $ | — | | | $ | — | | Interest-bearing deposits with banks | 187,493 | | | 187,493 | | | 187,493 | | | — | | | — | | | | | | | | | | | | Restricted investments in bank stock | 7,252 | | | n/a | | n/a | | n/a | | n/a | Investment securities | 472,438 | | | 472,438 | | | 20,101 | | | 429,190 | | | 23,147 | | Loans held for sale | 8,868 | | | 8,868 | | | — | | | 8,868 | | | — | | Loans, net of allowance for loan losses | 1,958,806 | | | 1,946,365 | | | — | | | — | | | 1,946,365 | | | | | | | | | | | | Derivatives | 1,117 | | | 1,117 | | | — | | | 764 | | | 353 | | Accrued interest receivable | 8,234 | | | 8,235 | | | — | | | 2,203 | | | 6,032 | | | | | | | | | | | | Financial Liabilities | | | | | | | | | | Deposits | 2,464,929 | | | 2,466,191 | | | — | | | 2,466,191 | | | — | | Securities sold under agreements to repurchase | 23,301 | | | 23,301 | | | — | | | 23,301 | | | — | | FHLB advances and other | 1,896 | | | 2,035 | | | — | | | 2,035 | | | — | | Subordinated notes | 31,963 | | | 31,815 | | | — | | | 31,815 | | | — | | Derivatives | 760 | | | 760 | | | — | | | 760 | | | — | | Accrued interest payable | 154 | | | 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 banks | 99,055 | | | 99,055 | | | 99,055 | | | — | | | — | | | | | | | | | | | | Restricted investments in bank stock | 10,563 | | | n/a | | n/a | | n/a | | n/a | Investment securities | 466,465 | | | 466,465 | | | 371 | | | 434,591 | | | 31,503 | | Loans held for sale | 11,734 | | | 11,734 | | | — | | | 11,734 | | | — | | Loans, net of allowance for loan losses | 1,959,539 | | | 1,953,860 | | | — | | | — | | | 1,953,860 | | | | | | | | | | | | Derivatives | 1,363 | | | 1,363 | | | — | | | 690 | | | 673 | | Accrued interest receivable | 8,927 | | | 8,927 | | | — | | | 1,529 | | | 7,398 | | | | | | | | | | | | Financial Liabilities | | | | | | | | | | Deposits | 2,356,880 | | | 2,359,317 | | | — | | | 2,359,317 | | | — | | Securities sold under agreements to repurchase | 19,466 | | | 19,466 | | | — | | | 19,466 | | | — | | FHLB advances and other | 58,045 | | | 58,298 | | | — | | | 58,298 | | | — | | Subordinated notes | 31,903 | | | 31,712 | | | — | | | 31,712 | | | — | | Derivatives | 1,956 | | | 1,956 | | | — | | | 1,956 | | | — | | Accrued interest payable | 238 | | | 238 | | | — | | | 238 | | | — | | Off-balance sheet instruments | — | | | — | | | — | | | — | | | — | |
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