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FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2019
FAIR VALUE [Abstract]  
Carrying Amounts and Estimated Fair Values of Financial Instruments
The carrying amounts and estimated fair values of financial instruments at March 31, 2019 were as follows:

     
Fair Value Measurements at March 31, 2019 Using
 
  
Carrying
Amount
  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial assets
               
Cash and due from banks
 
$
77,399
  
$
77,399
  
$
-
  
$
-
  
$
77,399
 
Time deposits with other banks
  
1,094
   
-
   
1,089
   
-
   
1,089
 
Federal funds sold
  
24,722
   
24,722
   
-
   
-
   
24,722
 
Securities available for sale
  
369,082
   
-
   
368,582
   
500
   
369,082
 
Loans, net
  
1,142,395
   
-
   
-
   
1,127,961
   
1,127,961
 
Federal Home Loan Bank stock
  
3,568
   
n/a
   
n/a
   
n/a
   
n/a
 
Interest receivable
  
4,638
   
-
   
1,100
   
3,538
   
4,638
 
                     
Financial liabilities
                    
Deposits
 
$
(1,453,819
)
 
$
(1,047,126
)
 
$
(403,128
)
 
$
-
  
$
(1,450,254
)
Securities sold under agreements to repurchase
  
(22,025
)
  
-
   
(22,025
)
  
-
   
(22,025
)
FHLB advance
  
(7,335
)
  
-
   
(7,308
)
  
-
   
(7,308
)
Other borrowed funds
  
(1,450
)
  
-
   
(1,444
)
  
-
   
(1,444
)
Subordinated debt
  
(5,413
)
  
-
   
(5,484
)
  
-
   
(5,484
)
Interest payable
  
(860
)
  
(23
)
  
(837
)
  
-
   
(860
)

The carrying amounts and estimated fair values of financial instruments at December 31, 2018 were as follows:

     
Fair Value Measurements at December 31, 2018 Using
 
  
Carrying
Amount
  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial assets
               
Cash and due from banks
 
$
62,903
  
$
62,903
  
$
-
  
$
-
  
$
62,903
 
Time deposits with other banks
  
1,094
   
-
   
1,085
   
-
   
1,085
 
Federal funds sold
  
17,872
   
17,872
   
-
   
-
   
17,872
 
Securities available for sale
  
365,731
   
-
   
365,231
   
500
   
365,731
 
Loans, net
  
1,135,563
   
-
   
-
   
1,121,517
   
1,121,517
 
Federal Home Loan Bank stock
  
3,628
   
n/a
   
n/a
   
n/a
   
n/a
 
Interest receivable
  
4,295
   
-
   
1,032
   
3,263
   
4,295
 
                     
Financial liabilities
                    
Deposits
 
$
(1,430,127
)
 
$
(1,039,430
)
 
$
(384,496
)
 
$
-
  
$
(1,423,926
)
Securities sold under agreements to repurchase
  
(22,062
)
  
-
   
(22,062
)
  
-
   
(22,062
)
FHLB advance
  
(8,819
)
  
-
   
(8,688
)
  
-
   
(8,688
)
Other borrowed funds
  
(2,500
)
  
-
   
(2,478
)
  
-
   
(2,478
)
Subordinated debt
  
(5,406
)
  
-
   
(5,509
)
  
-
   
(5,509
)
Interest payable
  
(733
)
  
(22
)
  
(711
)
  
-
   
(733
)
Assets and Liabilities 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 at
March 31, 2019 Using:
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Available for sale
            
Mortgage-backed securities
            
U. S. agency MBS - residential
 
$
257,439
  
$
-
  
$
257,439
  
$
-
 
U. S. agency CMO’s - residential
  
71,636
   
-
   
71,636
   
-
 
Total mortgage-backed securities of government sponsored agencies
  
329,075
   
-
   
329,075
   
-
 
U. S. government sponsored agency securities
  
22,618
   
-
   
22,618
   
-
 
Obligations of states and political subdivisions
  
13,867
   
-
   
13,867
   
-
 
Other securities
  
3,522
   
-
   
3,022
   
500
 
Total securities available for sale
 
$
369,082
  
$
-
  
$
368,582
  
$
500
 

     
Fair Value Measurements at
December 31, 2018 Using:
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Available for sale
            
Mortgage-backed securities
            
U. S. agency MBS - residential
 
$
255,242
  
$
-
  
$
255,242
  
$
-
 
U. S. agency CMO’s
  
68,543
   
-
   
68,543
   
-
 
Total mortgage-backed securities of government sponsored agencies
  
323,785
   
-
   
323,785
   
-
 
U. S. government sponsored agency securities
  
24,170
   
-
   
24,170
   
-
 
Obligations of states and political subdivisions
  
14,327
   
-
   
14,327
   
-
 
Other securities
  
3,449
   
-
   
2,949
   
500
 
Total securities available for sale
 
$
365,731
  
$
-
  
$
365,231
  
$
500
 
Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019:

  
Securities Available-for-sale
 
  
Three Months Ended
March 31, 2019
 
Balance of recurring Level 3 assets at beginning of period
 
$
500
 
Total gains or losses (realized/unrealized):
    
Included in earnings – realized
  
-
 
Included in earnings – unrealized
  
-
 
Included in other comprehensive income
  
-
 
Purchases, sales, issuances and settlements, net
  
-
 
Transfers in and/or out of Level 3
  
-
 
Balance of recurring Level 3 assets at period-end
 
$
500
 
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:

     
Fair Value Measurements at March 31, 2019 Using
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs (Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Assets:
            
Impaired loans:
            
Multifamily real estate
 
$
2,508
  
$
-
  
$
-
  
$
2,508
 
Commercial real estate
                
Owner occupied
  
1,400
   
-
   
-
   
1,400
 
Non-owner occupied
  
2,510
   
-
   
-
   
2,510
 
Commercial and industrial
  
194
   
-
   
-
   
194
 
Construction and land
  
405
   
-
   
-
   
405
 
Total impaired loans
 
$
7,017
  
$
-
  
$
-
  
$
7,017
 
                 
Other real estate owned:
                
Residential real estate
 
$
925
  
$
-
  
$
-
  
$
925
 
Multifamily real estate
  
10,307
   
-
   
-
   
10,307
 
Commercial real estate
                
Non-owner occupied
  
200
   
-
   
-
   
200
 
Construction and land
  
150
   
-
   
-
   
150
 
Total OREO
 
$
11,582
  
$
-
  
$
-
  
$
11,582
 
Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:

     
Fair Value Measurements at December 31, 2018 Using
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs (Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Assets:
            
Impaired loans:
            
Multifamily real estate
 
$
2,514
  
$
-
  
$
-
  
$
2,514
 
Commercial real estate
                
Owner occupied
  
1,786
   
-
   
-
   
1,786
 
Non-owner occupied
  
2,514
   
-
   
-
   
2,514
 
Commercial and industrial
  
144
   
-
   
-
   
144
 
Construction and land
  
423
   
-
   
-
   
423
 
Total impaired loans
 
$
7,381
  
$
-
  
$
-
  
$
7,381
 
                 
Other real estate owned:
                
Residential real estate
 
$
984
  
$
-
  
$
-
  
$
984
 
Multifamily real estate
  
10,307
   
-
   
-
   
10,307
 
Commercial real estate
                
Owner occupied
  
125
   
-
   
-
   
125
 
Non-owner occupied
  
200
   
-
   
-
   
200
 
Construction and land
  
150
   
-
   
-
   
150
 
Total OREO
 
$
11,766
  
$
-
  
$
-
  
$
11,766
 
Fair Value Inputs, Assets, Quantitative Information
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at March 31, 2019 are summarized below:

  
March 31,
2019
 
Valuation Techniques
 
Unobservable Inputs
 
Range (Weighted Avg)
Impaired loans:
         
Multifamily real estate
 
$
2,508
 
sales comparison
 
adjustment for estimated realizable value
 
45.4%-45.4% (45.4%)
Commercial real estate
           
Owner occupied
  
1,400
 
sales comparison
 
adjustment for estimated realizable value
 
31.5%-31.5% (31.5%)
Non-owner occupied
  
2,510
 
income approach
 
adjustment for differences in net operating income expectations
 
16.1%-67.4% (54.2%)
Commercial and industrial
  
194
 
sales comparison
 
adjustment for estimated realizable value
 
0.0%-0.0% (0.0%)
Construction and land
  
405
 
sales comparison
 
adjustment for estimated realizable value
 
53.2%-53.2% (53.2%)
Total impaired loans
 
$
7,017
     
            
Other real estate owned:
           
Residential real estate
 
$
925
 
sales comparison
 
adjustment for estimated realizable value
 
21.0%-59.8% (22.0%)
Multifamily real estate
  
10,307
 
income approach
 
adjustment for differences in net operating income expectations
 
20.0%-20.0% (20.0%)
Commercial real estate
           
Non-owner occupied
  
200
 
sales comparison
 
adjustment for estimated realizable value
 
57.9%-57.9% (57.9%)
Construction and land
  
150
 
sales comparison
 
adjustment for estimated realizable value
 
50.3%-50.3% (50.3%)
Total OREO
 
$
11,582
        
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2018 are summarized below:

  
December 31,
2018
 
Valuation Techniques
 
Unobservable Inputs
 
Range (Weighted Avg)
Impaired loans:
         
Multifamily real estate
 
$
2,514
 
sales comparison
 
adjustment for estimated realizable value
 
45.3%-45.3% (45.3%)
Commercial real estate
           
Owner occupied
  
1,786
 
sales comparison
 
adjustment for estimated realizable value
 
31.5%-50.6% (35.5%)
Non-owner occupied
  
2,514
 
income approach
 
adjustment for differences in net operating income expectations
 
16.1%-67.2% (54.1%)
Commercial and industrial
  
144
 
sales comparison
 
adjustment for estimated realizable value
 
0.0%-0.0% (0.0%)
Construction and land
  
423
 
sales comparison
 
adjustment for estimated realizable value
 
53.2%-83.6% (54.5%)
Total impaired loans
 
$
7,381
        
            
Other real estate owned:
           
Residential real estate
 
$
984
 
sales comparison
 
adjustment for estimated realizable value
 
19.2%-59.8% (21.9%)
Multifamily real estate
  
10,307
 
income approach
 
adjustment for differences in net operating income expectations
 
20.0%-20.0% (20.0%)
Commercial real estate
           
Owner occupied
  
125
 
sales comparison
 
adjustment for estimated realizable value
 
42.4%-42.4% (42.4%)
Non-owner occupied
  
200
 
sales comparison
 
adjustment for estimated realizable value
 
57.9%-57.9% (57.9%)
Construction and land
  
150
 
sales comparison
 
adjustment for estimated realizable value
 
50.3%-50.3% (50.3%)
Total OREO
 
$
11,766