FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2022

FAIR VALUE

Schedule of assets 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 Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	June 30, 2022		(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale securities
Residential government-sponsored mortgage-backed securities	$	116,082	$	—	$	116,082	$	—
Obligations of states and political subdivisions		31,050		—		31,050		—
Corporate securities		15,652		—		15,652		—
Collateralized loan obligations		4,823		—		4,823		—
Residential government-sponsored collateralized mortgage obligations		20,254		—		20,254		—
Government-sponsored agency securities		15,506		—		15,506		—
Agency commercial mortgage-backed securities		46,772		—		46,772		—
SBA pool securities		7,041		—		7,041		—
		257,180		—		257,180		—
Loans held for sale		16,096		—		16,096		—
Derivative assets		863		—		839		24
Total assets	$	274,139	$	—	$	274,115	$	24
Liabilities:
Derivative liabilities	$	103	$	—	$	100	$	3
Total liabilities	$	103	$	—	$	100	$	3

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2021		(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale securities
Residential government-sponsored mortgage-backed securities	$	122,610	$	—	$	122,610	$	—
Obligations of states and political subdivisions		31,231		—		31,231		—
Corporate securities		13,685		—		13,685		—
Collateralized loan obligations		5,010		—		5,010		—
Residential government-sponsored collateralized mortgage obligations		19,807		—		19,807		—
Government-sponsored agency securities		17,488		—		17,488		—
Agency commercial mortgage-backed securities		52,667		—		52,667		—
SBA pool securities		8,834		—		8,834		—
Total assets	$	271,332	$	—	$	271,332	$	—

Schedule present the additional information about the assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs

The following tables present additional information about the assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs (in thousands):

		For the three months ended				For the six months ended
		June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Derivative assets:
Interest Rate Lock Commitments
Balance at beginning of the period	$	—	$	—	$	—	$	—
Acquired		14				14
Gain included in net income		10		—		10		—
Purchases		—		—		—		—
Sales		—		—		—		—
Issues		—		—		—		—
Settlements		—		—		—		—
Transfers in/out of Level 3		—		—		—		—
Balance at end of the period	$	24	$	—	$	24	$	—

		For the three months ended				For the six months ended
		June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Derivative liabilities:
Interest Rate Lock Commitments
Balance at beginning of the period	$	—	$	—	$	—	$	—
Acquired		44				44
Loss included in net income		(41)		—		(41)		—
Purchases		—		—		—		—
Sales		—		—		—		—
Issues		—		—		—		—
Settlements		—		—		—		—
Transfers in/out of Level 3		—		—		—		—
Balance at end of the period	$	3	$	—	$	3	$	—

Schedule of assets measured at fair value on non recurring basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	June 30, 2022		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	32,992	$	—	$	—	$	32,992
Assets held for sale		3,127		—		—		3,127
Other real estate owned:
Construction and land development		266		—		—		266
Residential 1-4 family		775		—		—		775

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2021		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	44,331	$	—	$	—	$	44,331
Other real estate owned:
Construction and land development		266		—		—		266
Residential 1-4 family		897		—		—		897

Schedule of estimated fair values and fair value hierarchy levels of financial instruments

The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands) for the periods indicated:

		June 30, 2022				December 31, 2021
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	70,721	$	70,721	$	530,167	$	530,167
Securities available-for-sale	Level 2		257,180		257,180		271,332		271,332
Securities held-to-maturity	Level 2		14,978		14,322		22,940		23,364
Stock in Federal Reserve Bank and Federal Home Loan Bank	Level 2		12,940		12,940		15,521		15,521
Net loans	Level 3		2,598,588		2,486,645		2,310,881		2,278,456
Loans held for sale	Level 2		16,096		16,096		—		—
Accrued interest receivable	Level 2		10,000		10,000		13,028		13,028
Derivative assets	Level 2 and 3		863		863		—		—
Financial liabilities:
Demand deposits and NOW accounts	Level 2	$	1,330,418	$	1,330,418	$	1,380,020	$	1,380,020
Money market and savings accounts	Level 2		1,023,164		1,023,164		1,022,621		1,022,621
Time deposits	Level 3		329,223		330,876		360,575		362,902
Securities sold under agreements to repurchase	Level 1		10,020		10,020		9,962		9,962
FHLB advances	Level 1		25,000		25,000		100,000		100,000
Junior subordinated debt	Level 2		9,757		9,836		9,731		10,367
Senior subordinated notes	Level 2		85,413		86,635		85,297		91,141
Accrued interest payable	Level 2		1,715		1,715		1,864		1,864
Derivative liabilities	Level 2 and 3		103		103		—		—