FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements at September 30, 2020 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
U.S. Government sponsored entity securities		—	$	15,506			—
Agency mortgage-backed securities, residential		—		94,843			—
Interest rate swap derivatives		—		1,096			—
Liabilities:
Interest rate swap derivatives		—		(1,096	)		—

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
U.S. Government sponsored entity securities		—	$	16,736			—
Agency mortgage-backed securities, residential		—		88,582			—
Interest rate swap derivatives		—		465			—
Liabilities:
Interest rate swap derivatives		—		(465	)		—

Assets and Liabilities Measured on Nonrecurring Basis

Assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019 are summarized below:

	Fair Value Measurements at September 30, 2020 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial real estate:
Nonowner-occupied		—		$	199		—

	Fair Value Measurements at December 31, 2019 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial real estate:
Nonowner-occupied		—		—		$	1,644
Commercial and Industrial		—		—			4,559

Quantitative Information about Level 3 Inputs

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2019:

December 31, 2019	Fair Value		Valuation Technique(s)		Unobservable Input(s)	Range		(Weighted Average)
Impaired loans:				1			1
Commercial real estate:
Owner-occupied	$	1,644	Sales approach		Adjustment to comparables	0% to 20%			9.7	%
Commercial and industrial		4,559	Sales approach		Adjustment to comparables	0% to 61%			10.3	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2020 and December 31, 2019 are as follows:

	Carrying		Fair Value Measurements at September 30, 2020 Using
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	83,554	$	83,554	$	—	$	—	$	83,554
Certificates of deposit in financial institutions		2,745		—		2,745		—		2,745
Securities available for sale		110,349		—		110,349		—		110,349
Securities held to maturity		11,674		—		3,974		8,048		12,022
Loans, net		845,308		—		199		841,318		841,517
Interest rate swap derivatives		1,096		—		1,096		—		1,096
Accrued interest receivable		3,779		—		370		3,409		3,779
Financial liabilities:
Deposits		944,984		270,086		677,187		—		947,273
Other borrowed funds		29,321		—		31,610		—		31,610
Subordinated debentures		8,500		—		5,556		—		5,556
Interest rate swap derivatives		1,096		—		1,096		—		1,096
Accrued interest payable		1,349		1		1,348		—		1,349

	Carrying		Fair Value Measurements at December 31, 2019 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	52,356	$	52,356	$	—	$	—	$	52,356
Certificates of deposit in financial institutions		2,360		—		2,360		—		2,360
Securities available for sale		105,318		—		105,318		—		105,318
Securities held to maturity		12,033		—		6,446		5,958		12,404
Loans, net		766,502		—		—		771,285		771,285
Interest rate swap derivatives		465		—		465		—		465
Accrued interest receivable		2,564		—		315		2,249		2,564
Financial liabilities:
Deposits		821,471		222,607		599,937		—		822,544
Other borrowed funds		33,991		—		34,345		—		34,345
Subordinated debentures		8,500		—		6,275		—		6,275
Interest rate swap derivatives		465		—		465		—		465
Accrued interest payable		1,589		3		1,586		—		1,589