FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 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		—	$	28,993			—
U.S. Government sponsored entity securities		—		24,374			—
Agency mortgage-backed securities, residential		—		136,238			—
Interest rate swap derivatives		—		719			—
Liabilities:
Interest rate swap derivatives		—		(719	)		—

	Fair Value Measurements at December 31, 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		—	$	20,143			—
U.S. Government sponsored entity securities		—		25,916			—
Agency mortgage-backed securities, residential		—		130,941			—
Interest rate swap derivatives		—		599			—
Liabilities:
Interest rate swap derivatives		—		(599	)		—

Assets and Liabilities Measured on Nonrecurring Basis

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

	Fair Value Measurements at March 31, 2022, 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		—		—	$	1,664

	Fair Value Measurements at December 31, 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		—		—	$	1,983

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 March 31, 2022 and December 31, 2021

March 31, 2022	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range	Weighted Average
Impaired loans:			1		1
Commercial and industrial	$	1,664	Sales approach	Adjustment to comparables and equipment comparables	0% to 25%		17.0%

December 31, 2021	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range	Weighted Average
Impaired loans:			1		1
Commercial and industrial	$	1,983	Sales approach	Adjustment to comparables and equipment comparables	0% to 25%		18.4%

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2022 and December 31, 2021 are as follows:

	Carrying		Fair Value Measurements at March 31, 2022 Using
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	163,724	$	163,724	$	—	$	—	$	163,724
Certificates of deposit in financial institutions		2,124		—		2,124		—		2,124
Securities available for sale		189,605		—		189,605		—		189,605
Securities held to maturity		10,071		—		5,707		3,912		9,619
Loans, net		806,378		—		—		793,421		793,421
Interest rate swap derivatives		719		—		719		—		719
Accrued interest receivable		2,811		—		477		2,334		2,811
Financial liabilities:
Deposits		1,074,418		894,224		180,404		—		1,074,628
Other borrowed funds		18,929		—		19,153		—		19,153
Subordinated debentures		8,500		—		6,255		—		6,255
Interest rate swap derivatives		719		—		699		—		699
Accrued interest payable		400		1		502		—		503

	Carrying		Fair Value Measurements at December 31, 2021 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	152,034	$	152,034	$	—	$	—	$	152,034
Certificates of deposit in financial institutions		2,329		—		2,329		—		2,329
Securities available for sale		177,000		—		177,000		—		177,000
Securities held to maturity		10,294		—		6,063		4,387		10,450
Loans, net		824,708		—		—		821,899		821,899
Interest rate swap derivatives		599		—		599		—		599
Accrued interest receivable		2,695		—		363		2,332		2,695
Financial liabilities:
Deposits		1,059,908		870,626		189,796		—		1,060,422
Other borrowed funds		19,614		—		20,279		—		20,279
Subordinated debentures		8,500		—		5,657		—		5,657
Interest rate swap derivatives		599		—		599		—		599
Accrued interest payable		439		1		438		—		439