FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2020

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2020 were as follows:

				Fair Value Measurements at March 31, 2020 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	61,349		$	61,349		$	-		$	-	$	61,349
Time deposits with other banks		598			-			598			-		598
Federal funds sold		8,134			8,134			-			-		8,134
Securities available for sale		404,478			-			404,478			-		404,478
Loans, net		1,171,187			-			-			1,160,850		1,160,850
Interest receivable		5,192			-			1,579			3,613		5,192

Financial liabilities
Deposits	$	(1,462,380	)	$	(1,052,200	)	$	(409,834	)	$	-	$	(1,462,034	)
Securities sold under agreements to repurchase		(19,694	)		-			(19,694	)		-		(19,694	)
FHLB advance		(7,986	)		-			(8,007	)		-		(8,007	)
Subordinated debt		(5,445	)		-			(5,383	)		-		(5,383	)
Interest payable		(865	)		(10	)		(855	)		-		(865	)

The carrying amounts and estimated fair values of financial instruments at December 31, 2019 were as follows:

				Fair Value Measurements at December 31, 2019 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	88,556		$	88,556		$	-		$	-	$	88,556
Time deposits with other banks		598			-			599			-		599
Federal funds sold		5,902			5,902			-			-		5,902
Securities available for sale		390,754			-			390,754			-		390,754
Loans, net		1,181,753			-			-			1,172,575		1,172,575
Interest receivable		4,699			4			1,110			3,585		4,699

Financial liabilities
Deposits	$	(1,495,753	)	$	(1,070,610	)	$	(424,886	)	$	-	$	(1,495,496	)
Securities sold under agreements to repurchase		(20,428	)		-			(20,428	)		-		(20,428	)
FHLB advance		(6,375	)		-			(6,406	)		-		(6,406	)
Subordinated debt		(5,436	)		-			(5,527	)		-		(5,527	)
Interest payable		(912	)		(15	)		(897	)		-		(912	)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at March 31, 2020 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale
Mortgage-backed securities
U. S. agency MBS - residential	$	293,291	$	-	$	293,291	$	-
U. S. agency CMO’s - residential		56,768		-		56,768		-
Total mortgage-backed securities of government sponsored agencies		350,059		-		350,059		-
U. S. government sponsored agency securities		12,231		-		12,231		-
Obligations of states and political subdivisions		40,312		-		40,312		-
Other securities		1,876		-		1,876		-
Total securities available for sale	$	404,478	$	-	$	404,478	$	-

			Fair Value Measurements at December 31, 2019 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale
Mortgage-backed securities
U. S. agency MBS - residential	$	279,309	$	-	$	279,309	$	-
U. S. agency CMO’s		62,644		-		62,644		-
Total mortgage-backed securities of government sponsored agencies		341,953		-		341,953		-
U. S. government sponsored agency securities		30,730		-		30,730		-
Obligations of states and political subdivisions		16,017		-		16,017		-
Other securities		2,054		-		2,054		-
Total securities available for sale	$	390,754	$	-	$	390,754	$	-

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

Assets and liabilities measured at fair value on a non-recurring basis at March 31, 2020 are summarized below:

			Fair Value Measurements at March 31, 2020 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Multifamily real estate	$	1,853	$	-	$	-	$	1,853
Commercial real estate
Non-owner occupied		3,217		-		-		3,217
Commercial and industrial		317		-		-		317
Total impaired loans	$	5,387	$	-	$	-	$	5,387

Other real estate owned:
Residential real estate	$	249	$	-	$	-	$	249
Multifamily real estate		9,533		-		-		9,533
Construction and land		750		-		-		750
Total OREO	$	10,532	$	-	$	-	$	10,532

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2019 are summarized below:

			Fair Value Measurements at December 31, 2019 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Multifamily real estate	$	1,900	$	-	$	-	$	1,900
Commercial real estate
Owner occupied		509		-		-		509
Non-owner occupied		2,266		-		-		2,266
Commercial and industrial		288		-		-		288
Construction and land		380		-		-		380
Total impaired loans	$	5,343	$	-	$	-	$	5,343

Other real estate owned:
Residential real estate	$	249	$	-	$	-	$	249
Multifamily real estate		9,588		-		-		9,588
Commercial real estate
Owner occupied		288		-		-		288
Construction and land		750		-		-		750
Total OREO	$	10,875	$	-	$	-	$	10,875

Fair Value Inputs, Assets, Quantitative Information

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at March 31, 2020 are summarized below:

	March 31, 2020		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,853	sales comparison	adjustment for estimated realizable value		60.0%-60.0% (60.0	%)
Commercial real estate
Non-owner occupied		3,217	income approach	adjustment for differences in net operating income expectations		13.9%-67.4% (43.3	%)
Commercial and industrial		317	sales comparison	adjustment for estimated realizable value		25.0%-86.5% (45.9	%)
Total impaired loans	$	5,387

Other real estate owned:
Residential real estate	$	249	sales comparison	adjustment for estimated realizable value		0.2%-59.8% (17.5	%)
Multifamily real estate		9,533	income approach	adjustment for differences in net operating income expectations		26.0%-26.0% (26.0	%)
Construction and land		750	sales comparison	adjustment for estimated realizable value		50.3%-69.9% (66.0	%)
Total OREO	$	10,532

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2019 are summarized below:

	December 31, 2019		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,900	sales comparison	adjustment for estimated realizable value		58.9%-58.9% (58.9	%)
Commercial real estate
Owner occupied		509	sales comparison	adjustment for estimated realizable value		76.1%-76.1% (76.1	%)
Non-owner occupied		2,266	income approach	adjustment for differences in net operating income expectations		36.6%-67.4% (60.6	%)
Commercial and industrial		288	sales comparison	adjustment for estimated realizable value		25.0%-87.0% (43.6	%)
Construction and land		380	sales comparison	adjustment for estimated realizable value		56.5%-56.5% (56.5	%)
Total impaired loans	$	5,343

Other real estate owned:
Residential real estate	$	249	sales comparison	adjustment for estimated realizable value		0.2%-59.8% (17.5	%)
Multifamily real estate		9,588	income approach	adjustment for differences in net operating income expectations		25.6%-25.6% (25.6	%)
Commercial real estate
Owner occupied		288	sales comparison	adjustment for estimated realizable value		14.6%-70.4% (34.0	%)
Construction and land		750	sales comparison	adjustment for estimated realizable value		50.3%-69.9% (66.0	%)
Total OREO	$	10,875