FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 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 securities		—	$	17,748			—
U.S. Government sponsored entity securities		—		30,285			—
Agency mortgage-backed securities, residential		—		124,522			—
Interest rate swap derivatives		—		717			—
Liabilities:
Interest rate swap derivatives		—		(717	)		—

	Fair Value Measurements at December 31, 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		—	$	18,153			—
Agency mortgage-backed securities, residential		—		94,169			—
Interest rate swap derivatives		—		928			—
Liabilities:
Interest rate swap derivatives		—		(928	)		—

Assets and Liabilities Measured on Nonrecurring Basis

There were no assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2020. Assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2021 are summarized below:

	Fair Value Measurements at June 30, 2021 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 and industrial		—		—	$	250

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 June 30, 2021:

June 30, 2021	Fair Value		Valuation Technique(s)		Unobservable Input(s)	Range		Weighted Average
Impaired loans:				1			1
Commercial and industrial	$	250	Sales approach		Adjustment to comparables	20% to 33%			23.4	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2021 and December 31, 2020 are as follows:

	Carrying		Fair Value Measurements at June 30, 2021 Using
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	125,240	$	125,240	$	—	$	—	$	125,240
Certificates of deposit in financial institutions		2,255		—		2,255		—		2,255
Securities available for sale		172,555		—		172,555		—		172,555
Securities held to maturity		10,845		—		6,009		5,060		11,069
Loans, net		841,117		—		—		837,979		837,979
Interest rate swap derivatives		717		—		717		—		717
Accrued interest receivable		2,987		—		373		2,614		2,987
Financial liabilities:
Deposits		1,045,090		324,576		721,619		—		1,046,195
Other borrowed funds		24,304		—		25,447		—		25,447
Subordinated debentures		8,500		—		5,522		—		5,522
Interest rate swap derivatives		717		—		717		—		717
Accrued interest payable		643		1		642		—		643

	Carrying		Fair Value Measurements at December 31, 2020 Using
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	138,303	$	138,303	$	—	$	—	$	138,303
Certificates of deposit in financial institutions		2,500		—		2,500		—		2,500
Securities available for sale		112,322		—		112,322		—		112,322
Securities held to maturity		10,020		—		4,989		5,355		10,344
Loans, net		841,504		—		—		837,387		837,387
Interest rate swap derivatives		928		—		928		—		928
Accrued interest receivable		3,319		—		283		3,036		3,319
Financial liabilities:
Deposits		993,739		314,777		680,904		—		995,681
Other borrowed funds		27,863		—		29,807		—		29,807
Subordinated debentures		8,500		—		5,556		—		5,556
Interest rate swap derivatives		928		—		928		—		928
Accrued interest payable		1,100		1		1,099		—		1,100