FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2021

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2021 were as follows:

	Carrying		Fair Value Measurements at March 31, 2021 Using
	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from banks	$	177,544	$	177,194	$	350	$	-	$	177,544
Federal funds sold		7,665		7,665		-		-		7,665
Securities available for sale		492,464		-		492,464		-		492,464
Loans, net		1,247,881		-		-		1,256,402		1,256,402
Interest receivable		6,192		-		1,569		4,623		6,192

Financial liabilities
Deposits	$	1,696,439	$	1,384,212	$	313,159	$	-	$	1,697,371
Securities sold under agreements to repurchase		39,980		-		39,980		-		39,980
Subordinated debt		5,485		-		5,378		-		5,378
Interest payable		272		4		268		-		272

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

	Carrying		Fair Value Measurements at December 31, 2020 Using
	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and due from banks	$	199,170	$	198,820	$	350	$	-	$	199,170
Federal funds sold		11,306		11,306		-		-		11,306
Securities available for sale		421,190		-		421,190		-		421,190
Loans, net		1,200,862		-		-		1,209,579		1,209,579
Interest receivable		5,991		-		1,301		4,690		5,991

Financial liabilities
Deposits	$	1,633,740	$	1,308,188	$	327,448	$	-	$	1,635,636
Securities sold under agreements to repurchase		33,827		-		33,827		-		33,827
Subordinated debt		5,475		-		5,366		-		5,366
Interest payable		360		4		356		-		360

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, 2021 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	$	266,338	$	-	$	266,338	$	-
U. S. agency CMO’s - residential		23,565		-		23,565		-
Total mortgage-backed securities of government sponsored agencies		289,903		-		289,903		-
U. S. government sponsored agency securities		138,910		-		138,910		-
Obligations of states and political subdivisions		58,237		-		58,237		-
Other securities		5,414		-		5,414		-
Total securities available for sale	$	492,464	$	-	$	492,464	$	-

			Fair Value Measurements at December 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	$	327,800	$	-	$	327,800	$	-
U. S. agency CMO’s		30,076		-		30,076		-
Total mortgage-backed securities of government sponsored agencies		357,876		-		357,876		-
U. S. government sponsored agency securities		2,626		-		2,626		-
Obligations of states and political subdivisions		55,000		-		55,000		-
Other securities		5,688		-		5,688		-
Total securities available for sale	$	421,190	$	-	$	421,190	$	-

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, 2021 are summarized below:

			Fair Value Measurements at March 31, 2021 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:
Commercial real estate
Owner occupied	$	201	$	-	$	-	$	201
Non-owner occupied		3,120		-		-		3,120
Commercial and industrial		123		-		-		123
Total impaired loans	$	3,444	$	-	$	-	$	3,444

Other real estate owned:
Residential real estate	$	128	$	-	$	-	$	128
Multifamily real estate		10,843		-		-		10,843
Commercial real estate
Owner occupied		817		-		-		817
Construction and land		400		-		-		400
Total OREO	$	12,188	$	-	$	-	$	12,188

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

			Fair Value Measurements at December 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:
Commercial real estate
Owner occupied	$	250	$	-	$	-	$	250
Non-owner occupied		1,080		-		-		1,080
Commercial and industrial		174		-		-		174
Total impaired loans	$	1,504	$	-	$	-	$	1,504

Other real estate owned:
Residential real estate	$	206	$	-	$	-	$	206
Multifamily real estate		10,838		-		-		10,838
Commercial real estate
Owner occupied		829		-		-		829
Construction and land		400		-		-		400
Total OREO	$	12,273	$	-	$	-	$	12,273

Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at March 31, 2021 are summarized below:

	March 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Commercial real estate
Owner occupied	$	201	sales comparison	adjustment for estimated realizable value	79.0%-79.0% (79.0%)
Non-owner occupied		3,120	income approach	adjustment for differences in net operating income expectations	19.2%-37.4% (22.7%)
Commercial and industrial		123	sales comparison	adjustment for estimated realizable value	62.5%-84.4% (66.0%)
Total impaired loans	$	3,444

Other real estate owned:
Residential real estate	$	128	sales comparison	adjustment for estimated realizable value	2.0%-59.8% (28.9%)
Multifamily real estate		10,843	income approach	adjustment for differences in net operating income expectations	41.9%-70.3% (45.4%)
Commercial real estate
Owner occupied		817	sales comparison	adjustment for estimated realizable value	22.1%-28.5% (26.3%)
Construction and land		400	sales comparison	adjustment for estimated realizable value	50.3%-98.6% (80.5%)
Total OREO	$	12,188

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

	December 31, 2020		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Commercial real estate
Owner occupied	$	250	sales comparison	adjustment for estimated realizable value	73.8%-73.8% (73.8%)
Non-owner occupied		1,080	income approach	adjustment for differences in net operating income expectations	14.7%-37.4% (25.2%)
Commercial and industrial		174	sales comparison	adjustment for estimated realizable value	50.0%-85.0% (62.0%)
Total impaired loans	$	1,504

Other real estate owned:
Residential real estate	$	206	sales comparison	adjustment for estimated realizable value	0.2%-59.8% (18.1%)
Multifamily real estate		10,838	income approach	adjustment for differences in net operating income expectations	42.0%-70.4% (45.5%)
Commercial real estate
Owner occupied		829	sales comparison	adjustment for estimated realizable value	22.1%-26.8% (25.2%)
Construction and land		400	sales comparison	adjustment for estimated realizable value	50.3%-98.6% (80.5%)
Total OREO	$	12,273