FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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	$	42,790	$	—			—
U.S. Government sponsored entity securities		—		18,717			—
Agency mortgage-backed securities, residential		—		123,337			—
Interest rate swap derivatives		—		1,404			—
Liabilities:
Interest rate swap derivatives		—		(1,404	)		—

	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

There were no assets or liabilities measured at fair value on a nonrecurring basis at September 30, 2022. Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2021 are summarized below:

	Fair Value Measurements at December 31, 2021 Using
December 31, 2021	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

There was no quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2022.  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, 2021:

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%			18.5%%

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2022 and December 31, 2021 are as follows:

	Carrying		Fair Value Measurements at September 30, 2022 Using
	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	113,111	$	113,111	$	—	$	—	$	113,111
Certificates of deposit in financial institutions		1,868		—		1,868		—		1,868
Securities available for sale		184,844		42,790		142,054		—		184,844
Securities held to maturity		9,642		—		5,210		3,445		8,655
Loans, net		851,102		—		—		825,644		825,644
Interest rate swap derivatives		1,404		—		1,404		—		1,404
Accrued interest receivable		3,053		—		552		2,501		3,053
Financial liabilities:
Deposits		1,074,325		920,418		153,807		—		1,074,225
Other borrowed funds		18,085		—		16,646		—		16,646
Subordinated debentures		8,500		—		8,474		—		8,474
Interest rate swap derivatives		1,404		—		1,404		—		1,404
Accrued interest payable		325		—		325		—		325

	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		20,143		156,857		—		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