FAIR VALUE (Tables)
|
9 Months Ended |
Sep. 30, 2020 |
|---|
| FAIR VALUE [Abstract] |
|
| Assets Measured at Fair Value on Recurring Basis |
Assets measured at fair value on a recurring basis are summarized below (in thousands):
| |
|
Fair |
|
|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
|
Significant Other
Observable
Inputs
|
|
|
Significant
Unobservable
Inputs
|
|
| |
|
Value |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
59,979 |
|
|
$ |
— |
|
|
$ |
59,979 |
|
|
$ |
— |
|
U.S. Agency MBS and CMOs |
|
|
61,737 |
|
|
|
— |
|
|
|
61,737 |
|
|
|
— |
|
Tax-exempt state and municipal bonds |
|
|
47,170 |
|
|
|
— |
|
|
|
47,170 |
|
|
|
— |
|
Taxable state and municipal bonds |
|
|
54,914 |
|
|
|
— |
|
|
|
54,914 |
|
|
|
— |
|
Corporate bonds and other debt securities |
|
|
6,128 |
|
|
|
— |
|
|
|
6,128 |
|
|
|
— |
|
Other equity securities |
|
|
1,518 |
|
|
|
— |
|
|
|
1,518 |
|
|
|
— |
|
Loans held for sale |
|
|
3,508 |
|
|
|
— |
|
|
|
3,508 |
|
|
|
— |
|
Interest rate swaps |
|
|
5,080 |
|
|
|
— |
|
|
|
— |
|
|
|
5,080 |
|
Interest rate swaps |
|
|
(5,080 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,080 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and federal agency securities |
|
$ |
74,749 |
|
|
$ |
— |
|
|
$ |
74,749 |
|
|
$ |
— |
|
U.S. Agency MBS and CMOs |
|
|
46,201 |
|
|
|
— |
|
|
|
46,201 |
|
|
|
— |
|
Tax-exempt state and municipal bonds |
|
|
45,962 |
|
|
|
— |
|
|
|
45,962 |
|
|
|
— |
|
Taxable state and municipal bonds |
|
|
52,022 |
|
|
|
— |
|
|
|
52,022 |
|
|
|
— |
|
Corporate bonds and other debt securities |
|
|
6,315 |
|
|
|
— |
|
|
|
6,315 |
|
|
|
— |
|
Other equity securities |
|
|
1,481 |
|
|
|
— |
|
|
|
1,481 |
|
|
|
— |
|
Loans held for sale |
|
|
3,294 |
|
|
|
— |
|
|
|
3,294 |
|
|
|
— |
|
Interest rate swaps |
|
|
1,830 |
|
|
|
— |
|
|
|
— |
|
|
|
1,830 |
|
Interest rate swaps |
|
|
(1,830 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,830 |
) |
|
| Assets Measured at Fair Value on Non-Recurring Basis |
Assets measured at fair value on a non-recurring basis are summarized below (in thousands):
| |
|
Fair |
|
|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
|
Significant Other
Observable
Inputs
|
|
|
Significant
Unobservable
Inputs
|
|
| |
|
Value |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans |
|
$ |
2,481 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,481 |
|
Other real estate owned |
|
|
281 |
|
|
|
— |
|
|
|
— |
|
|
|
281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans |
|
$ |
5,151 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,151 |
|
Other real estate owned |
|
|
405 |
|
|
|
— |
|
|
|
— |
|
|
|
405 |
|
|
| Quantitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis |
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands):
| |
|
Asset Fair
Value
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range (%) |
September 30, 2020 |
|
|
|
|
|
|
|
|
Impaired Loans |
|
$ |
2,481 |
|
Sales comparison approach |
|
Adjustment for differences
between comparable sales
|
|
1.0 to 30.0 |
| |
|
|
|
|
Income approach |
|
Capitalization rate |
|
9.5 to 11.0 |
Other real estate owned |
|
|
281 |
|
Sales comparison approach |
|
Adjustment for differences
between comparable sales
|
|
3.0 to 20.0 |
| |
|
|
|
|
Income approach |
|
Capitalization rate |
|
9.5 to 11.0 |
| |
|
Asset Fair
Value
|
|
Valuation
Technique
|
|
Unobservable
Inputs
|
|
Range (%) |
December 31, 2019 |
|
|
|
|
|
|
|
|
Impaired Loans |
|
$ |
5,151 |
|
Sales comparison approach |
|
Adjustment for differences
between comparable sales
|
|
1.5 to 20.0 |
| |
|
|
|
|
Income approach |
|
Capitalization rate |
|
9.5 to 11.0 |
Other real estate owned |
|
|
405 |
|
Sales comparison approach |
|
Adjustment for differences
between comparable sales
|
|
3.0 to 20.0 |
| |
|
|
|
|
Income approach |
|
Capitalization rate |
|
9.5 to 11.0 |
|
| Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented |
The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at September 30, 2020 and December 31, 2019 (dollars in thousands):
|
Level in
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
Fair Value
Hierarchy
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
Level 1 |
|
$ |
28,294 |
|
|
$ |
28,294 |
|
|
$ |
31,942 |
|
|
$ |
31,942 |
|
Cash equivalents |
Level 2 |
|
|
504,706 |
|
|
|
504,706 |
|
|
|
240,508 |
|
|
|
240,508 |
|
Securities held to maturity |
Level 3 |
|
|
91,394 |
|
|
|
95,142 |
|
|
|
82,720 |
|
|
|
85,128 |
|
FHLB stock |
|
|
|
11,558 |
|
|
NA |
|
|
|
11,558 |
|
|
NA |
|
Loans, net |
Level 2 |
|
|
1,523,296 |
|
|
|
1,560,997 |
|
|
|
1,363,276 |
|
|
|
1,395,446 |
|
Bank owned life insurance |
Level 3 |
|
|
42,368 |
|
|
|
42,368 |
|
|
|
42,156 |
|
|
|
42,156 |
|
Accrued interest receivable |
Level 2 |
|
|
6,895 |
|
|
|
6,895 |
|
|
|
4,866 |
|
|
|
4,866 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
Level 2 |
|
|
(2,170,579 |
) |
|
|
(2,171,039 |
) |
|
|
(1,753,294 |
) |
|
|
(1,753,877 |
) |
Other borrowed funds |
Level 2 |
|
|
(70,000 |
) |
|
|
(73,110 |
) |
|
|
(60,000 |
) |
|
|
(61,006 |
) |
Long-term debt |
Level 2 |
|
|
(20,619 |
) |
|
|
(18,062 |
) |
|
|
(20,619 |
) |
|
|
(18,167 |
) |
Accrued interest payable |
Level 2 |
|
|
(274 |
) |
|
|
(274 |
) |
|
|
(518 |
) |
|
|
(518 |
) |
Off-balance sheet credit-related items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan commitments |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|