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FAIR VALUE (Tables)
9 Months Ended
Sep. 30, 2019
FAIR VALUE [Abstract]  
Carrying Amounts and Estimated Fair Values of Financial Instruments
The carrying amounts and estimated fair values of financial instruments at September 30, 2019 were as follows:

     
Fair Value Measurements at September 30, 2018 Using
 
  
Carrying
Amount
  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial assets
               
Cash and due from banks
 
$
106,685
  
$
106,685
  
$
-
  
$
-
  
$
106,685
 
Time deposits with other banks
  
598
   
-
   
599
   
-
   
599
 
Federal funds sold
  
15,983
   
15,983
   
-
   
-
   
15,983
 
Securities available for sale
  
347,811
   
-
   
347,811
   
-
   
347,811
 
Loans, net
  
1,127,051
   
-
   
-
   
1,118,758
   
1,118,758
 
Federal Home Loan Bank stock
  
3,538
   
n/a
   
n/a
   
n/a
   
n/a
 
Interest receivable
  
4,415
   
5
   
990
   
3,420
   
4,415
 
                     
Financial liabilities
                    
Deposits
 
$
(1,427,240
)
 
$
(1,025,301
)
 
$
(399,595
)
 
$
-
  
$
(1,424,896
)
Securities sold under agreements to repurchase
  
(21,721
)
  
-
   
(21,721
)
  
-
   
(21,721
)
FHLB advances
  
(6,362
)
  
-
   
(6,401
)
  
-
   
(6,401
)
Subordinated debt
  
(5,428
)
  
-
   
(5,424
)
  
-
   
(5,424
)
Interest payable
  
(847
)
  
(16
)
  
(831
)
  
-
   
(847
)

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 advances
  
(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
September 30, 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
 
$
246,522
  
$
-
  
$
246,522
  
$
-
 
U. S. agency CMO’s - residential
  
67,807
   
-
   
67,807
   
-
 
Total mortgage-backed securities of government sponsored agencies
  
314,329
   
-
   
314,329
   
-
 
U. S. government sponsored agency securities
  
18,338
   
-
   
18,338
   
-
 
Obligations of states and political subdivisions
  
12,584
   
-
   
12,584
   
-
 
Other securities
  
2,560
   
-
   
2,560
   
-
 
Total securities available for sale
 
$
347,811
  
$
-
  
$
347,811
  
$
-
 

     
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 nine months ended September 30, 2019:

  
Securities
Available-for-sale
 
  
Nine Months
Ended
September 30,
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
  
(500
)
Transfers in and/or out of Level 3
  
-
 
Balance of recurring Level 3 assets at period-end
 
$
-
 
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 September 30, 2019 are summarized below:

     
Fair Value Measurements at September 30, 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
 
$
2,066
  
$
-
  
$
-
  
$
2,066
 
Commercial real estate
                
Owner occupied
  
661
   
-
   
-
   
661
 
Non-owner occupied
  
2,374
   
-
   
-
   
2,374
 
Commercial and industrial
  
194
   
-
   
-
   
194
 
Construction and land
  
380
   
-
   
-
   
380
 
Total impaired loans
 
$
5,675
  
$
-
  
$
-
  
$
5,675
 
                 
Other real estate owned:
                
Residential real estate
 
$
1,149
  
$
-
  
$
-
  
$
1,149
 
Multifamily real estate
  
10,307
   
-
   
-
   
10,307
 
Commercial real estate
                
Owner occupied
  
291
   
-
   
-
   
291
 
Construction and land
  
829
   
-
   
-
   
829
 
Total OREO
 
$
12,576
  
$
-
  
$
-
  
$
12,576
 
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 September 30, 2019 are summarized below:

  
September 30,
2019
 
Valuation
Techniques
 
Unobservable Inputs
 
Range (Weighted
Avg)
 
Impaired loans:
         
Multifamily real estate
 
$
2,066
 
sales comparison
 
adjustment for estimated realizable value
  
55.2%-55.2% (55.2
%)
Commercial real estate
           
Owner occupied
  
661
 
sales comparison
 
adjustment for estimated realizable value
  
68.4%-68.4% (68.4
%)
Non-owner occupied
  
2,374
 
income approach
 
adjustment for differences in net operating income expectations
  
23.4%-67.4% (56.4
%)
Commercial and industrial
  
194
 
sales comparison
 
adjustment for estimated realizable value
  
0.0%-0.0% (0.0
%)
Construction and land
  
380
 
sales comparison
 
adjustment for estimated realizable value
  
56.5%-56.5% (56.5
%)
Total impaired loans
 
$
5,675
        
            
Other real estate owned:
           
Residential real estate
 
$
1,149
 
sales comparison
 
adjustment for estimated realizable value
  
0.2%-59.8% (20.2
%)
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
  
291
 
sales comparison
 
adjustment for estimated realizable value
  
14.6%-83.2% (39.0
%)
Construction and land
  
829
 
sales comparison
 
adjustment for estimated realizable value
  
37.5%-69.9% (64.1
%)
Total OREO
 
$
12,576
        
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