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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of assets and liabilities measured at fair value on a recurring basis


Financial Assets		At June 30, 2022
Securities available-for-sale:		Level 1			Level 2			Level 3			Total
U.S. agency securities		$	—		$	18,550		$	—		$	18,550
Corporate securities			—			7,739			1,029			8,768
Municipal bonds			—			127,015			116			127,131
Mortgage-backed securities			—			77,175			—			77,175
U.S. Small Business Administration securities			—			16,208			—			16,208
Mortgage loans held for sale, at fair value			—			34,989			—			34,989
Loans receivable, at fair value			—			14,863			—			14,863
Derivatives:
Mandatory and best effort forward commitments with investors			—			—			518			518
Forward TBA mortgage-backed securities			—			203			—			203
Interest rate swaps			—			5,601			—			5,601
Interest rate lock commitments with customers			—			—			184			184
Total assets measured at fair value		$	—		$	302,343		$	1,847		$	304,190


Financial Assets		At December 31, 2021
Securities available-for-sale:		Level 1			Level 2			Level 3			Total
U.S. agency securities		$	—		$	20,970		$	—		$	20,970
Corporate securities			—			7,995			1,007			9,002
Municipal bonds			—			135,302			131			135,433
Mortgage-backed securities			—			89,402			—			89,402
U.S. Small Business Administration securities			—			16,552			—			16,552
Mortgage loans held for sale, at fair value			—			125,810			—			125,810
Loans receivable, at fair value			—			16,083			—			16,083
Derivatives:
Mandatory and best effort forward commitments with investors			—			—			808			808
Forward TBA mortgage-backed securities			—			53			—			53
Interest rate swaps			—			1,168			—			1,168
Interest rate lock commitments with customers			—			—			757			757
Total assets measured at fair value		$	—		$	413,335		$	2,703		$	416,038
Financial Liabilities
Derivatives:
Interest rate swaps			—			(155)			—			(155)
Total liabilities measured at fair value		$	—		$	(155)		$	—		$	(155)

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets


		June 30, 2022
		Level 1			Level 2			Level 3			Total
Loans individually evaluated		$	—		$	—		$	6,658		$	6,658
OREO			—			—			145			145
Servicing rights			—			—			34,098			34,098


		December 31, 2021
		Level 1			Level 2			Level 3			Total
Loans individually evaluated		$	—		$	—		$	5,829		$	5,829
Servicing rights			—			—			26,070			26,070

Fair value reconciliation - Level 3 on recurring basis


					Purchases									Net change in			Net change in
Three Months Ended		Beginning			and			Sales and			Ending			fair value for			fair value for
June 30, 2022		Balance			Issuances			Settlements			Balance			gains/(losses) ⁽¹⁾			gains/(losses) ⁽²⁾
Interest rate lock commitments with customers		$	250		$	22		$	(88)		$	184		$	(66)		$	—
Individual forward sale commitments with investors			885			2,931			(3,298)			518			(367)			—
Securities available-for-sale, at fair value			1,121			27			(3)			1,145			—			24
June 30, 2021
Interest rate lock commitments with customers		$	1,985		$	7,169		$	(7,048)		$	2,106		$	121		$	—
Individual forward sale commitments with investors			506			(1,200)			141			(553)			(1,059)			—
Securities available-for-sale, at fair value			1,129			—			(12)			1,117			—			(9)


					Purchases									Net change in			Net change in
Six Months Ended		Beginning			and			Sales and			Ending			fair value for			fair value for
June 30, 2022		Balance			Issuances			Settlements			Balance			gains/(losses) ⁽¹⁾			gains/(losses) ⁽²⁾
Interest rate lock commitments with customers		$	757		$	2,117		$	(2,690)		$	184		$	(573)		$	—
Individual forward sale commitments with investors			808			5,073			(5,363)			518			(290)			—
Securities available-for-sale, at fair value			1,138			13			(6)			1,145			—			7
June 30, 2021
Interest rate lock commitments with customers		$	4,024		$	14,860		$	(16,778)		$	2,106		$	(1,918)		$	—
Individual forward sale commitments with investors			(67)			(546)			60			(553)			(486)			—
Securities available-for-sale, at fair value			1,111			12			(6)			1,117			—			12

___________________________

(1) Relating to items held at end of period included in income.

(2) Relating to items held at end of period included in other comprehensive income (loss).

Fair Value, by Balance Sheet Grouping


		June 30,						December 31,
		2022						2021
Financial Assets		Carrying			Fair			Carrying			Fair
Level 1 inputs:		Amount			Value			Amount			Value
Cash and cash equivalents		$	28,659		$	28,659		$	26,491		$	26,491
Certificates of deposit at other financial institutions			4,960			4,960			10,542			10,542
Level 2 inputs:
Securities available-for-sale, at fair value			246,687			246,687			270,221			270,221
Securities held-to-maturity			8,500			8,342			7,500			8,128
Loans held for sale, at fair value			34,989			34,989			125,810			125,810
FHLB stock, at cost			6,295			6,295			4,778			4,778
Forward TBA mortgage-backed securities			203			203			53			53
Loans receivable, at fair value			14,863			14,863			16,083			16,083
Interest rate swaps			5,601			5,601			1,168			1,168
Accrued interest receivable			8,553			8,553			7,594			7,594
Level 3 inputs:
Securities available-for-sale, at fair value			1,145			1,145			1,138			1,138
Loans receivable, gross			1,931,209			1,895,089			1,738,092			1,725,651
Servicing rights, held at lower of cost or fair value			18,516			34,098			16,970			26,070
Fair value interest rate locks with customers			184			184			757			757
Mandatory and best effort forward commitments with investors			518			518			808			808
Financial Liabilities
Level 2 inputs:
Deposits			2,016,100			1,999,713			1,915,744			1,912,498
Borrowings			78,028			77,630			42,528			43,365
Subordinated notes, excluding unamortized debt issuance costs			50,000			47,188			50,000			51,688
Accrued interest payable			952			952			766			766
Interest rate swaps			—			—			155			155

Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Valuation assumptions


Level 3				Significant				Weighted Average
Fair Value		Valuation		Unobservable				June 30,			December 31,
Instruments		Techniques		Inputs		Range		2022			2021
RECURRING
Interest rate lock commitments with customers		Quoted market prices		Pull-through expectations		80% - 99%		97.5	%		93.3	%
Individual forward sale commitments with investors		Quoted market prices		Pull-through expectations		80% - 99%		97.5	%		93.3	%
Corporate securities		Discounted cash flows		Discount rate		2.1% - 2.7%		2.1	%		2.2	%
Municipal bonds		Discounted cash flows		Discount rate		6.0%		6.0	%		6.0	%
NONRECURRING
Loans individually evaluated		Fair value of underlying collateral		Discount applied to the obtained appraisal		10.0%		10.0	%		10.0	%
OREO		Fair value of collateral		Discount applied to the obtained appraisal		10.0%		10.0	%		10.0	%
Servicing rights		Industry sources		Pre-payment speeds		0% - 50%		8.8	%		13.8	%