FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2021

FAIR VALUE MEASUREMENTS [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021:

(in thousands)
June 30, 2021	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	74,601	$	74,601	$	—	$	—
Securities of U.S. government agencies and corporations		95,313		—		95,313		—
Obligations of states and political subdivisions		37,160		—		37,160		—
Collateralized mortgage obligations		112,084		—		112,084		—
Mortgage-backed securities		242,401		—		242,401		—
Total investments at fair value	$	561,559	$	74,601	$	486,958	$	—

There were no transfers of assets measured at fair value on a recurring basis between level 1 and level 2 of the fair value hierarchy.

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:

(in thousands)
December 31, 2020	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury securities	$	38,891	$	38,891	$	—	$	—
Securities of U.S. government agencies and corporations		106,558		—		106,558		—
Obligations of states and political subdivisions		32,882		—		32,882		—
Collateralized mortgage obligations		73,460		—		73,460		—
Mortgage-backed securities		183,289		—		183,289		—
Total investments at fair value	$	435,080	$	38,891	$	396,189	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of June 30, 2021 and December 31, 2020:

(in thousands)
June 30, 2021	Carrying Value		Level 1		Level 2		Level 3
Impaired loans	$	3,774	$	—	$	—	$	3,774
Mortgage servicing rights		1,438		—		—		1,438
Total assets at fair value	$	5,212	$	—	$	—	$	5,212

(in thousands)
December 31, 2020	Carrying Value		Level 1		Level 2		Level 3
Impaired loans	$	5,700	$	—	$	—	$	5,700
Mortgage servicing rights		1,242		—		—		1,242
Total assets at fair value	$	6,942	$	—	$	—	$	6,942

Key Methods and Assumptions Used in Measuring Fair Value

Key methods and assumptions used in measuring the fair value of mortgage servicing rights as of June 30, 2021 and impaired loans as of December 31, 2020 were as follows:

	Method	Assumption Inputs
Impaired loans	Collateral, market, income,  enterprise, liquidation	External appraised values, management assumptions regarding market trends or other relevant factors,  selling costs generally ranging from 6% to 10%.
Mortgage servicing rights	Discounted cash flows	Present value of expected future cash flows was estimated using a discount rate factor of 9.50% and 10.00% as of June 30, 2021 and December 31, 2020, respectively.  A constant prepayment rate of 17.46% and 20.22% as of June 30, 2021 and December 31, 2020, respectively, was utilized.

Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments for the periods ended June 30, 2021 and December 31, 2020 were approximately as follows:

(in thousands)			June 30, 2021				December 31, 2020
	Level		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets:
Cash and cash equivalents		1	$	332,595	$	332,595	$	267,177	$	267,177
Certificates of deposit		2		13,003		13,367		16,923		17,455
Stock in Federal Home Loan Bank and other equity securities		3		7,097		7,097		6,480		6,480
Loans receivable:
Net loans		3		872,750		819,330		875,830		830,448
Loans held-for-sale		2		1,306		1,332		9,190		9,522
Interest receivable		2		4,804		4,804		5,099		5,099
Financial liabilities:
Deposits		3		1,663,227		1,642,997		1,478,162		1,457,051
Federal Home Loan Bank advances		2		—		—		5,000		4,996
Interest payable		2		62		62		59		59