FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2021

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):

	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2021
Available for sale securities
U.S. Treasury and federal agency securities	$	61,852		$	—	$	61,852	$	—
U.S. Agency MBS and CMOs		63,763			—		63,763		—
Tax-exempt state and municipal bonds		43,495			—		43,495		—
Taxable state and municipal bonds		60,080			—		60,080		—
Corporate bonds and other debt securities		4,482			—		4,482		—
Other equity securities		1,487			—		1,487		—
Loans held for sale		9,315			—		9,315		—
Interest rate swaps		3,801			—		—		3,801
Interest rate swaps		(3,801	)		—		—		(3,801	)

December 31, 2020
Available for sale securities
U.S. Treasury and federal agency securities	$	64,110		$	—	$	64,110	$	—
U.S. Agency MBS and CMOs		64,983			—		64,983		—
Tax-exempt state and municipal bonds		45,642			—		45,642		—
Taxable state and municipal bonds		57,177			—		57,177		—
Corporate bonds and other debt securities		4,920			—		4,920		—
Other equity securities		1,513			—		1,513		—
Loans held for sale		5,422			—		5,422		—
Interest rate swaps		4,217			—		—		4,217
Interest rate swaps		(4,217	)		—		—		(4,217	)

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 Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2021
Impaired loans	$	5,800	$	—	$	—	$	5,800
Other real estate owned		28		—		—		28

December 31, 2020
Impaired loans	$	4,686	$	—	$	—	$	4,686
Other real estate owned		194		—		—		194

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 (%)
March 31, 2021
Impaired Loans	$	5,800	Sales comparison approach	Adjustment for differences between comparable sales	1.0 to 20.0
			Income approach	Capitalization rate	9.5 to 11.0
Other real estate owned		28	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, 2020
Impaired Loans	$	4,686	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		194	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 March 31, 2021 and December 31, 2020 (dollars in thousands):

	Level in	March 31, 2021						December 31, 2020
	Fair Value Hierarchy	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Financial assets
Cash and due from banks	Level 1	$	26,900		$	26,900		$	31,480		$	31,480
Cash equivalents	Level 2		884,985			884,985			752,256			752,256
Securities held to maturity	Level 3		89,170			92,139			79,468			83,246
FHLB stock			11,558		NA				11,558		NA
Loans, net	Level 2		1,377,151			1,402,744			1,407,236			1,448,874
Bank owned life insurance	Level 3		42,244			42,244			42,516			42,516
Accrued interest receivable	Level 2		5,994			5,994			5,625			5,625
Financial liabilities
Deposits	Level 2		(2,387,945	)		(2,388,095	)		(2,298,587	)		(2,298,867	)
Other borrowed funds	Level 2		(70,000	)		(72,438	)		(70,000	)		(73,010	)
Long-term debt	Level 2		(20,619	)		(18,073	)		(20,619	)		(18,011	)
Accrued interest payable	Level 2		(240	)		(240	)		(242	)		(242	)
Off-balance sheet credit-related items
Loan commitments			—			—			—			—