0001327607-24-000183 | 10-Q | XBRL Viewer | First Western Financial INC

Other comprehensive income (loss), net of tax and reclassification

8,444

939

Dissolution Of Business

^[1]

751

(751)

52,509

Options exercised (in shares)

(361)

12,260

Options exercised

245

Balance at Ending at Sep. 30, 2023

1,444

246,256

192,573

54,261

(578)

Balance at Beginning at Jun. 30, 2023

9,545,071

242,242

191,968

51,143

(869)

Other comprehensive income (loss), net of tax and reclassification

3,118

291

8,638

Options exercised (in shares)

(78)

6,500

Options exercised

130

Balance at Ending at Sep. 30, 2023

553

$ 246,256

192,573

54,261

(578)

Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2023

9,560,209

9,581,183

Balance at Beginning at Dec. 31, 2023

$ 242,738

192,894

51,042

(1,198)

Other comprehensive income (loss), net of tax and reclassification

5,725

(12)

Repurchase of common stock

$ (89)

Repurchase of common stock (in shares)

(5,501)

88,419

$ (680)

(680)

Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2024

$ 1,149

1,149

9,664,101

Balance at Ending at Sep. 30, 2024

$ 248,831

193,274

56,767

(1,210)

Balance at Beginning at Jun. 30, 2024

9,660,548

246,875

192,891

54,633

(649)

Other comprehensive income (loss), net of tax and reclassification

2,134

(561)

Repurchase of common stock

$ (89)

Repurchase of common stock (in shares)

(5,501)

9,054

$ (46)

(46)

Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2024

$ 518

518

9,664,101

Balance at Ending at Sep. 30, 2024

$ 248,831

$ 193,274

$ 56,767

$ (1,210)

9,664,101

[1]	Refer to Note 1 – Organization and Summary of Significant Accounting Policies for further information.

SEGMENT REPORTING

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

The Company’s reportable segments consist of Wealth Management and Mortgage. The chief operating decision maker ("CODM") is the Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax.

The Wealth Management segment consists of operations relative to the Company’s fully integrated wealth management products and services. Services provided include deposit, loan, insurance, and trust and investment management advisory products and services.

The Mortgage segment consists of operations relative to the Company’s residential mortgage service offerings. Mortgage products and services are financial in nature for which premiums are recognized net of expenses, upon the sale of mortgage loans to third parties.

The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods as of or during the periods presented (dollars in thousands):


As of or for the three months ended September 30, 2024	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	37,818	$	272	$	38,090
Total interest expense	22,522		—		22,522
Provision for credit losses	501		—		501
Net interest income, after provision for credit losses	14,795		272		15,067
Non-interest income	5,501		1,471		6,972
Total income before non-interest expense	20,296		1,743		22,039
Depreciation and amortization expense	642		8		650
All other non-interest expense	17,436		1,282		18,718
Income before income taxes	$	2,218	$	453	$	2,671

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,897,317	$	14,631	$	2,911,948


As of or for the three months ended September 30, 2023	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	36,267	$	214	$	36,481
Total interest expense	19,715		—		19,715
Provision for credit losses	329		—		329
Net interest income, after provision for credit losses	16,223		214		16,437
Non-interest income	5,424		675		6,099
Total income before non-interest expense	21,647		889		22,536
Depreciation and amortization expense	581		8		589
All other non-interest expense	15,964		1,761		17,725
Income (loss) before income taxes	$	5,102	$	(880)	$	4,222

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,989,028	$	13,725	$	3,002,753


As of or for the nine months ended September 30, 2024	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	113,813	$	729	$	114,542
Total interest expense	67,126		—		67,126
Provision for credit losses	2,907		—		2,907
Net interest income, after provision for credit losses	43,780		729		44,509
Non-interest income	16,648		4,573		21,221
Total income before non-interest expense	60,428		5,302		65,730
Depreciation and amortization expense	1,884		25		1,909
All other non-interest expense	52,284		3,872		56,156
Income before income taxes	$	6,260	$	1,405	$	7,665

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,897,317	$	14,631	$	2,911,948


As of or for the nine months ended September 30, 2023	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	107,009	$	556	$	107,565
Total interest expense	52,791		—		52,791
Provision for credit losses	1,862		—		1,862
Net interest income, after provision for credit losses	52,356		556		52,912
Non-interest income	13,364		2,503		15,867
Total income before non-interest expense	65,720		3,059		68,779
Depreciation and amortization expense	1,747		25		1,772
All other non-interest expense	50,687		4,902		55,589
Income (loss) before income taxes	$	13,286	$	(1,868)	$	11,418

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,989,028	$	13,725	$	3,002,753

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DEPOSITS - Schedule of interest-bearing deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deposits [Abstract]
Money market deposit accounts	$ 1,350,619	$ 1,386,149
Time deposits	533,452	496,452
Interest checking accounts	130,255	147,488
Savings accounts	15,152	16,371
Total interest-bearing deposits	2,029,478	2,046,460
Aggregate time deposits of $250 or greater	87,647	91,038
Overdrafts balances classified As loans	$ 100	$ 100

DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of derivative instruments

The Company presents derivative position gross on the balance sheet. The following table reflects the fair value of derivatives recorded on the condensed consolidated balance sheets as of the periods noted:


	As of September 30, 2024				As of December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other assets:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge	$	—	$	—	$	50,000	$	77

Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans	50,586		1,441		30,325		686

Total included in other assets			$	1,441			$	763

Included in other liabilities:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge	$	50,000	$	226	$	—	$	—

Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans	50,586		1,486		30,325		740

Total included in other liabilities			$	1,712			$	740

The effect of cash flow hedge accounting on accumulated other comprehensive income for the periods noted are as follows:


	Three Months Ended September 30,
	2024						2023
(dollars in thousands)	Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income		Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income
Interest rate contracts	$	(635)	$	—	$	—	$	226	$	—	$	—


	Nine Months Ended September 30,
	2024						2023
(dollars in thousands)	Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income		Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income
Interest rate contracts	$	(230)	$	—	$	—	$	745	$	—	$	—

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

EARNINGS PER COMMON SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income available for common shareholders	$ 2,134	$ 3,118	$ 5,725	$ 8,444
Denominator:
Basic weighted average shares (in shares)	9,663,131	9,553,331	9,643,998	9,529,996
Earnings per common share - basic (in dollars per share)	$ 0.22	$ 0.33	$ 0.59	$ 0.89
Numerator:
Net income available for common shareholders	$ 2,134	$ 3,118	$ 5,725	$ 8,444
Denominator:
Basic weighted average shares (in shares)	9,663,131	9,553,331	9,643,998	9,529,996
Total diluted effect of common stock equivalents
Total diluted effect of common stock equivalents (in shares)	103,525	189,939	98,768	190,967
Diluted weighted average shares (in shares)	9,766,656	9,743,270	9,742,766	9,720,963
Earnings per common share - diluted (in dollars per share)	$ 0.22	$ 0.32	$ 0.59	$ 0.87
Stock options
Total diluted effect of common stock equivalents
Diluted effect of common stock equivalents (in shares)	0	0	0	5,341
Time Vesting Units
Total diluted effect of common stock equivalents
Diluted effect of common stock equivalents (in shares)	27,212	45,143	24,381	80,174
Financial Performance Units
Total diluted effect of common stock equivalents
Diluted effect of common stock equivalents (in shares)	76,313	144,796	74,387	105,452

SHAREHOLDERS' EQUITY - Stock options activity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Weighted Average Exercise Price
Granted (in dollars per share)	$ 0
Aggregate Intrinsic Value
Options outstanding, aggregate intrinsic value
Options exercisable, aggregate intrinsic value
Stock options
Number of Options
Outstanding at beginning of year (in shares)	130,936
Granted (in shares)	0	0
Exercised (in shares)	0
Forfeited or expired (in shares)	(49,175)
Outstanding at end of period (in shares)	81,761
Options fully vested / exercisable at end of period (in shares)	81,761
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 23.79
Exercised (in dollars per share)	0
Forfeited or expired (in dollars per share)	21.28
Outstanding at end of year (in dollars per share)	25.29
Options fully vested / exercisable (in dollars per share)	$ 25.29
Weighted Average Remaining Contractual Term
Outstanding at end of year (in years)	1 year 3 months
Options fully vested / exercisable (in years)	1 year 3 months

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES During the three and nine months ended September 30, 2024, the Company recorded an income tax provision of $0.5 million and $1.9 million, respectively, reflecting an effective tax rate of 20.1% and 25.3%, respectively. During the three and nine months ended September 30, 2023, the Company recorded an income tax provision of $1.1 million and $3.0 million, respectively, reflecting an effective tax rate of 26.1% and 26.0%, respectively.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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INVESTMENT SECURITIES - Allowance for credit losses to HTM securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Allowance for credit losses:
Beginning balance			$ 71
Total ending allowance balance	$ 71		71
Corporate bonds
Allowance for credit losses:
Beginning balance	71	$ 71	71	$ 0
Provision for credit losses	0	0	0	0
Securities charged-off (recoveries)	0	0	0	0
Total ending allowance balance	71	71	71	71
Corporate bonds \| Cumulative change in accounting principle
Allowance for credit losses:
Beginning balance			0	71
Mortgage-Backed Securities, Issued by Private Enterprises
Allowance for credit losses:
Beginning balance	0	0	0	0
Provision for credit losses	0	0	0	0
Securities charged-off (recoveries)	0	0	0	0
Total ending allowance balance	$ 0	$ 0	0	0
Mortgage-Backed Securities, Issued by Private Enterprises \| Cumulative change in accounting principle
Allowance for credit losses:
Beginning balance			$ 0	$ 0

SHAREHOLDERS' EQUITY - Share awards (Details)	9 Months Ended
SHAREHOLDERS' EQUITY - Share awards (Details)	Sep. 30, 2024 shares
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year	242,524
Granted (in shares)	75,070
Vested (in shares)	(65,765)
Forfeited (in shares)	(26,848)
Outstanding at end of year	224,981
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year	291,416
Granted (in shares)	42,805
Vested (in shares)	(59,449)
Forfeited (in shares)	(64,769)
Outstanding at end of year	210,003

BORROWINGS

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

BORROWINGS

The Bank has executed a blanket pledge and security agreement with the FHLB which requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of September 30, 2024 and December 31, 2023 amounted to $1.30 billion and $1.31 billion, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow an additional $612.1 million as of September 30, 2024.

On March 12, 2023 the Federal Reserve Board announced it would make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of depositors made available through the creation of a new Bank Term Funding Program (“BTFP”). The BTFP is meant to be an additional resource of liquidity against high-quality securities, eliminating an institutions need to quickly sell those securities in times of stress. On March 27, 2024 the Company repaid $31.0 million of BTFP borrowings. As of September 30, 2024, the Company has pledged a par value of $10.3 million in securities under the BTFP and borrowed $10.0 million with a maturity date of January 10, 2025. The rate for the borrowing is based on the one year overnight swap rate plus 10 basis points and is fixed over the term of the advance based on the date of the advance. Upon maturity, the Company renewed a three-month $50 million FHLB advance on July 1, 2024. The rate for the borrowing is adjusted daily based on the SOFR rate plus 15 basis points. The advance matured on October 1, 2024 and was renewed for an additional three months. Additionally, the Company paid off its FHLB line of credit balance of $128.7 million on July 1, 2024 and did not draw on the line during the remainder of the third quarter.

The following presents the Company’s maturities of FHLB and FRB borrowings (dollars in thousands):


Maturity Date	Rate %		September 30, 2024		December 31, 2023
January 1, 2024(1)	5.55	%	$	—	$	41,175
March 27, 2024	4.78		—		30,997
March 29, 2024	5.60		—		50,000

October 1, 2024	4.99		50,000		—
January 10, 2025	4.87		10,000		—
			$	60,000	$	122,172

______________________________________

(1)The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew.

To bolster the effectiveness of the SBA’s PPP, the Federal Reserve is supplying liquidity to participating financial institutions through term financing collateralized by PPP loans to small businesses. The Paycheck Protection Program Liquidity Facility ("PPPLF") extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value and bearing interest at 35 bps. The terms of the loans are directly tied to the underlying PPP loans, which were originated at 2 or 5 years. As of September 30, 2024 and December 31, 2023, the Company had outstanding $2.4 million and $3.5 million, respectively, under the PPPLF program which is included in the FHLB and Federal Reserve borrowings line of the Condensed Consolidated Balance Sheets.

The Bank has borrowing capacity associated with two unsecured federal funds lines of credit up to $10.0 million and $19.0 million. As of September 30, 2024 and December 31, 2023, there were no amounts outstanding on any of the federal funds lines.

The following presents the Company’s subordinated notes included in the Subordinated notes line of the Condensed Consolidated Balance Sheets as of the periods noted (dollars in thousands):

Issuance Date

Stated Rate

Interest Paid

Maturity

Carrying Value

Initial Debt Issuance Costs

Remaining Net Balance(1)

March 2020

5.125% per annum until 3/31/2025, then alternative rate plus 450 basis points until maturity

Quarterly

3/31/2030

8,000

120

7,988

November 2020

4.25% per annum until 12/1/2025, then SOFR plus 402 basis points until maturity

Semi-annual (Quarterly beginning 12/01/25)

12/1/2030

10,000

162

9,942

August 2021

3.25% per annum until 9/1/2026, then SOFR plus 258 basis points until maturity

Semi-annual (Quarterly beginning 09/01/26)

9/1/2031

15,000

242

14,894

December 2022

7.00% per annum until 12/15/2027, then SOFR plus 328 basis points until maturity

Semi-annual (Quarterly beginning 12/15/27)

12/15/2032

20,000

506

19,684

______________________________________

(1)Remaining net balance includes amortization of debt issuance costs.

For the three months ended September 30, 2024 and 2023, the Company recorded $0.6 million and $0.7 million, respectively, of interest expense related to the collective subordinated notes. For the nine months ended September 30, 2024 and 2023, the Company recorded $2.0 million and $2.0 million, respectively, of interest expense related to the collective subordinated notes. The subordinated notes are included in Tier 2 capital under current regulatory guidelines and interpretations, subject to limitations.

The Company’s borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed "well capitalized" by federal banking agencies. See Note 16 – Regulatory Capital Matters for additional information. As of September 30, 2024 and December 31, 2023, the Company was in compliance with the covenant requirements.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Commitments and Contingencies Disclosure [Abstract]

LEASES - Lease maturity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
LEASES - Lease maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Leases [Abstract]
2023	$ 904		$ 904
2025	2,935		2,935
2026	2,443		2,443
2027	3,415		3,415
2028	3,115		3,115
Thereafter	15,122		15,122
Total future minimum lease payments	27,934		27,934
Less: imputed interest	(6,600)		(6,600)
Present value of net future minimum lease payments	21,334		21,334		$ 10,900
Lease income	$ 100	$ 100	$ 200	$ 300

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of contract amounts represent credit risk

The following table presents the Company’s financial instruments whose contract amounts represent credit risk, as of the dates noted:


	September 30, 2024				December 31, 2023
(dollars in thousands)	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Unused lines of credit	$	56,617	$	468,986	$	86,398	$	540,255
Standby letters of credit	10,204		10,331		13,922		12,094
Commitments to make loans to sell	56,214		—		18,917		—
Commitments to make loans	1,535		9,110		5,275		7,115

The following table presents the changes in the ACL on unfunded loan commitments:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
Beginning balance	$	1,205	$	4,029	$	2,178	$	419
Impact of adopting ASU 2016-13	—		—		—		3,481
(Release) provision for credit losses	(295)		(992)		(1,268)		(863)
Ending balance	$	910	$	3,037	$	910	$	3,037

LEASES (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Lease balance sheet location

The Company elected to not include short-term leases with initial terms of twelve months or less on the Condensed Consolidated Balance Sheets. The following table presents the classification of the right-of-use assets and corresponding liabilities within the Condensed Consolidated Balance Sheets, as of the dates noted:


(dollars in thousands)		September 30, 2024		December 31, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	18,511	$	8,929

Lease Liabilities	Classification
Operating lease liabilities	Other liabilities	$	21,334	$	10,900

Schedule of weighted average lease term and discount rate


	September 30, 2024		December 31, 2023
Weighted-Average Remaining Lease Term
Operating leases	9.72 years		4.67 years

Weighted-Average Discount Rate
Operating leases	4.12	%	2.78	%

Lease costs

The following presents the Company’s net lease costs during the periods presented:


(dollars in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	874	$	720	$	2,474	$	2,239
Variable lease cost	591		453		1,723		1,426
Lease costs, net	$	1,465	$	1,173	$	4,197	$	3,665

Schedule of minimum lease payments due

The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Operating Leases
2024⁽¹⁾	$	904
2025	2,935
2026	2,443
2027	3,415
2028	3,115
Thereafter	15,122
Total future minimum lease payments	27,934
Less: imputed interest	(6,600)
Present value of net future minimum lease payments	$	21,334

______________________________________

(1)Amount represents the remaining three months of year.

Summary of maturity analysis of the Company's operating payments to be received

The following presents a maturity analysis of the Company's lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Undiscounted Operating Lease Income
2024⁽¹⁾	$	66
2025	188
2026	144
2027	119

Thereafter	—
Total undiscounted operating lease income	$	517

______________________________________

(1)Amount represents the remaining three months of the year.

INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

DEBT SECURITIES

The following presents the amortized cost, fair value, and allowance for credit losses of debt securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands):


September 30, 2024	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	246	$	2	$	—	$	248	$	—

Corporate bonds	23,654		—		(2,986)		20,668		(71)
Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS") – residential	31,605		28		(2,437)		29,196		—
Federal National Mortgage Association ("FNMA") MBS – residential	12,507		112		(345)		12,274		—
Government collateralized mortgage obligations ("GMO") and MBS – commercial	5,205		10		(245)		4,970		—
Corporate collateralized mortgage obligations ("CMO") and MBS	3,599		—		(129)		3,470		—
Total debt securities held-to-maturity	$	76,816	$	152	$	(6,142)	$	70,826	$	(71)


December 31, 2023	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	253	$	—	$	(11)	$	242	$	—

Corporate bonds	23,687		—		(3,020)		20,667		(71)
GNMA mortgage-backed securities – residential	34,579		—		(3,410)		31,169		—
FNMA mortgage-backed securities – residential	6,035		—		(509)		5,526		—
Government GMO and MBS – commercial	5,836		9		(377)		5,468		—
Corporate CMO and MBS	3,783		—		(238)		3,545		—
Total debt securities held-to-maturity	$	74,173	$	9	$	(7,565)	$	66,617	$	(71)

As of September 30, 2024, the amortized cost and estimated fair value of held-to-maturity debt securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.


September 30, 2024	Amortized Cost		Fair Value
Due within one year	$	—	$	—
Due between one year and five years	4,312		3,970
Due between five years and ten years	19,407		16,781
Due after ten years	181		165
Securities (CMO and MBS)	52,916		49,910
Total	$	76,816	$	70,826

In 2022, the Company committed $6.0 million in total to two bank technology funds. During the nine months ended September 30, 2024, the Company made $0.3 million of contributions to the partnerships and received $0.2 million of returns on investment. During the year ended December 31, 2023, the Company made $0.8 million of contributions to the partnerships and received $0.1 million of returns on investment. As of September 30, 2024 and December 31, 2023, the Company held a balance of $2.3 million and $2.0 million, respectively, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $3.7 million in future contributions.

In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. The Company made $0.2 million of contributions to the SBIC fund during the nine months ended September 30, 2024. During the year ended December 31, 2023, the Company made $0.2 million of contributions to the SBIC fund. As of September 30, 2024 and December 31, 2023, the Company held a balance of $2.4 million and $2.2 million, respectively, in the SBIC fund, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.6 million in future SBIC investments.

As of September 30, 2024, securities with market values totaling $36.9 million were pledged to secure various public deposits and credit facilities of the Company, including $9.5 million pledged under the BTFP program (refer to Note 1 – Organization and Summary of Significant Accounting Policies for more information on the BTFP program). As of December 31, 2023, securities with market values of $45.1 million were pledged to secure various public deposits and credit facilities of the Company, including $39.3 million pledged under the BTFP program.

As of September 30, 2024 and December 31, 2023, there were no holdings of debt securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.

Allowance for Credit Losses for HTM Debt Securities

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The majority of our held-to-maturity investment portfolio consists of securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label CMO and MBS and corporate bonds. Accrued interest receivable on held-to-maturity debt securities totaled $0.5 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses. Refer to Note 1 – Organization and Summary of Significant Accounting Policies for additional information on the Company’s methodology on estimating credit losses. The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the periods noted:


	Three Months Ended September 30,
	2024				2023
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	71	$	—

Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—


	Nine Months Ended September 30,
	2024				2023
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	—	$	—
Impact of ASU 2016-13 adoption	—		—		71		—
Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—

The Company monitors the credit quality of held-to-maturity debt securities on a quarterly basis. As of September 30, 2024, there were no held-to-maturity debt securities past due or on non-accrual.

DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest income	$ 200	$ 200	$ 600	$ 300
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	50,000		50,000		$ 50,000
Interest Rate Swap \| Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 50,586		$ 50,586		$ 30,325

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Aging analysis of recorded investments by class (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total	$ 2,383,199	$ 2,530,915
Current
Financing Receivable, Past Due [Line Items]
Total	2,358,645	2,448,353
Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	2,374,553	2,517,189
Loans Accounted for Under the Fair Value Option
Financing Receivable, Past Due [Line Items]
Total	8,646	13,726
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	2,025	21,074
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	10,274	2,672
90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	3,609	45,090
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	15,908	68,836
Cash, Securities, and Other
Financing Receivable, Past Due [Line Items]
Total	119,284	139,947
Cash, Securities, and Other \| Current
Financing Receivable, Past Due [Line Items]
Total	117,580	138,167
Cash, Securities, and Other \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	119,284	139,947
Cash, Securities, and Other \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Cash, Securities, and Other \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	76
Cash, Securities, and Other \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,704	1,704
Cash, Securities, and Other \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,704	1,780
Consumer and Other
Financing Receivable, Past Due [Line Items]
Total	20,839	40,754
Consumer and Other \| Current
Financing Receivable, Past Due [Line Items]
Total	12,189	18,837
Consumer and Other \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	12,193	27,028
Consumer and Other \| Loans Accounted for Under the Fair Value Option
Financing Receivable, Past Due [Line Items]
Total	8,646	13,726
Consumer and Other \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	2	676
Consumer and Other \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	2	11
Consumer and Other \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	7,504
Consumer and Other \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	4	8,191
Construction and Development
Financing Receivable, Past Due [Line Items]
Total	300,270	345,516
Construction and Development \| Current
Financing Receivable, Past Due [Line Items]
Total	300,270	344,016
Construction and Development \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	300,270	345,516
Construction and Development \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Construction and Development \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	1,500
Construction and Development \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Construction and Development \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	1,500
1-4 Family Residential
Financing Receivable, Past Due [Line Items]
Total	922,725	927,965
1-4 Family Residential \| Current
Financing Receivable, Past Due [Line Items]
Total	921,607	924,150
1-4 Family Residential \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	922,725	927,965
1-4 Family Residential \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	3	1,093
1-4 Family Residential \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
1-4 Family Residential \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,115	2,722
1-4 Family Residential \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,118	3,815
Non-Owner Occupied CRE
Financing Receivable, Past Due [Line Items]
Total	605,323	543,692
Non-Owner Occupied CRE \| Current
Financing Receivable, Past Due [Line Items]
Total	605,323	543,692
Non-Owner Occupied CRE \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	605,323	543,692
Non-Owner Occupied CRE \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Non-Owner Occupied CRE \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Non-Owner Occupied CRE \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Non-Owner Occupied CRE \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Owner Occupied CRE
Financing Receivable, Past Due [Line Items]
Total	174,928	195,861
Owner Occupied CRE \| Current
Financing Receivable, Past Due [Line Items]
Total	174,928	191,881
Owner Occupied CRE \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	174,928	195,861
Owner Occupied CRE \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Owner Occupied CRE \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	0
Owner Occupied CRE \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	3,980
Owner Occupied CRE \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	0	3,980
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total	239,830	337,180
Commercial and Industrial \| Current
Financing Receivable, Past Due [Line Items]
Total	226,748	287,610
Commercial and Industrial \| Total Amortized Cost
Financing Receivable, Past Due [Line Items]
Total	239,830	337,180
Commercial and Industrial \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	2,020	19,305
Commercial and Industrial \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	10,272	1,085
Commercial and Industrial \| 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	790	29,180
Commercial and Industrial \| Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	$ 13,082	$ 49,570

COMMITMENTS AND CONTINGENCIES - Schedule of unfunded loan commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Unfunded Loan Commitments [Roll Forward]
Beginning balance	$ 1,205	$ 4,029		$ 419
(Release) provision for credit losses	(295)	(992)		(863)
Ending balance	910	3,037	$ 910	3,037
Impact of adopting ASU 2016-13
Unfunded Loan Commitments [Roll Forward]
Beginning balance	0	$ 0		$ 3,481
Unfunded Loan Commitment
Unfunded Loan Commitments [Roll Forward]
Beginning balance			2,178
(Release) provision for credit losses			(1,268)
Ending balance	$ 910		910
Unfunded Loan Commitment \| Impact of adopting ASU 2016-13
Unfunded Loan Commitments [Roll Forward]
Beginning balance			$ 0

SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of segment data


As of or for the three months ended September 30, 2024	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	37,818	$	272	$	38,090
Total interest expense	22,522		—		22,522
Provision for credit losses	501		—		501
Net interest income, after provision for credit losses	14,795		272		15,067
Non-interest income	5,501		1,471		6,972
Total income before non-interest expense	20,296		1,743		22,039
Depreciation and amortization expense	642		8		650
All other non-interest expense	17,436		1,282		18,718
Income before income taxes	$	2,218	$	453	$	2,671

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,897,317	$	14,631	$	2,911,948


As of or for the three months ended September 30, 2023	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	36,267	$	214	$	36,481
Total interest expense	19,715		—		19,715
Provision for credit losses	329		—		329
Net interest income, after provision for credit losses	16,223		214		16,437
Non-interest income	5,424		675		6,099
Total income before non-interest expense	21,647		889		22,536
Depreciation and amortization expense	581		8		589
All other non-interest expense	15,964		1,761		17,725
Income (loss) before income taxes	$	5,102	$	(880)	$	4,222

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,989,028	$	13,725	$	3,002,753


As of or for the nine months ended September 30, 2024	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	113,813	$	729	$	114,542
Total interest expense	67,126		—		67,126
Provision for credit losses	2,907		—		2,907
Net interest income, after provision for credit losses	43,780		729		44,509
Non-interest income	16,648		4,573		21,221
Total income before non-interest expense	60,428		5,302		65,730
Depreciation and amortization expense	1,884		25		1,909
All other non-interest expense	52,284		3,872		56,156
Income before income taxes	$	6,260	$	1,405	$	7,665

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,897,317	$	14,631	$	2,911,948


As of or for the nine months ended September 30, 2023	Wealth Management		Mortgage		Consolidated
Income Statement
Total interest income	$	107,009	$	556	$	107,565
Total interest expense	52,791		—		52,791
Provision for credit losses	1,862		—		1,862
Net interest income, after provision for credit losses	52,356		556		52,912
Non-interest income	13,364		2,503		15,867
Total income before non-interest expense	65,720		3,059		68,779
Depreciation and amortization expense	1,747		25		1,772
All other non-interest expense	50,687		4,902		55,589
Income (loss) before income taxes	$	13,286	$	(1,868)	$	11,418

Goodwill	$	30,400	$	—	$	30,400
Total assets	$	2,989,028	$	13,725	$	3,002,753

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Summary of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 2,383,199		$ 2,530,915
Allowance for credit losses	(18,796)	$ (27,319)	(23,931)	$ (23,175)	$ (22,044)	$ (17,183)
Loans accounted for under the fair value option	8,646		13,726
Total, net	2,364,403		2,506,984
Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(18,796)		(23,931)
Loans accounted for under the fair value option	8,646		13,726
Total, net	2,355,757		2,493,258
Total \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,374,553		2,517,189
Cash, Securities, and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	119,284		139,947
Allowance for credit losses	(401)	(375)	(961)	(1,126)	(1,311)	(1,198)
Cash, Securities, and Other \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	119,284		139,947
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	20,839		40,754
Allowance for credit losses	(137)	(75)	(124)	(114)	(137)	(191)
Loans accounted for under the fair value option	8,900		14,100
Consumer and Other \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	12,193		27,028
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	300,270		345,516
Allowance for credit losses	(5,334)	(7,596)	(7,945)	(7,901)	(7,496)	(2,025)
Construction and Development \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	300,270		345,516
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	922,725		927,965
Allowance for credit losses	(5,325)		(4,370)			(6,309)
1-4 Family Residential \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	922,725		927,965
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	605,323		543,692
Allowance for credit losses	(4,342)	(2,203)	(2,325)	(2,255)	(2,495)	(3,490)
Non-Owner Occupied CRE \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	605,323		543,692
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	174,928		195,861
Allowance for credit losses	(691)	(973)	(1,034)	(1,010)	(1,182)	(1,510)
Owner Occupied CRE \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	174,928		195,861
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	239,830		337,180
Allowance for credit losses	(2,566)	$ (11,787)	(7,172)	$ (7,149)	$ (5,844)	$ (2,460)
Commercial and Industrial \| Amortized Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 239,830		$ 337,180

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2024

Deposits [Abstract]

Schedule of interest bearing deposits

The following presents the Company’s interest-bearing deposits as of the dates noted:


(dollars in thousands)	September 30, 2024		December 31, 2023
Money market deposit accounts	$	1,350,619	$	1,386,149
Time deposits	533,452		496,452
Interest checking accounts	130,255		147,488
Savings accounts	15,152		16,371
Total interest-bearing deposits	$	2,029,478	$	2,046,460
Aggregate time deposits of $250 or greater	$	87,647	$	91,038

Schedule of time deposit maturities

The following presents the scheduled maturities of all time deposits for each of the next five years and total amounts thereafter (dollars in thousands):


Year ending December 31,	Time Deposits
2024(1)	$	154,835
2025	336,200
2026	3,530
2027	3,956
2028	34,643
Thereafter	288
Total	$	533,452

______________________________________

(1)Amount represents the remaining three months of year.

Tabular disclosure of type of deposit liability.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Publisher SEC

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
-Publisher SEC

Share-Based Payment Arrangement [Abstract]

LEASES

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

LEASES

Leases in which the Company is determined to be the lessee are primarily operating leases comprised of real estate property and office space for our corporate headquarters and profit centers with terms that extend to 2036. In accordance with ASC 842, operating leases are required to be recognized as a right-of-use asset with a corresponding lease liability.


(dollars in thousands)		September 30, 2024		December 31, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	18,511	$	8,929

Lease Liabilities	Classification
Operating lease liabilities	Other liabilities	$	21,334	$	10,900

The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. The following table presents information related to operating leases:


	September 30, 2024		December 31, 2023
Weighted-Average Remaining Lease Term
Operating leases	9.72 years		4.67 years

Weighted-Average Discount Rate
Operating leases	4.12	%	2.78	%

The Company’s operating leases contain fixed and variable lease components and it has elected to account for all classes of underlying assets as a single lease component. Variable lease costs primarily represent common area maintenance and parking. The Company recognized lease costs in Occupancy and equipment expense in the accompanying Condensed Consolidated Statements of Income. The following presents the Company’s net lease costs during the periods presented:


(dollars in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	874	$	720	$	2,474	$	2,239
Variable lease cost	591		453		1,723		1,426
Lease costs, net	$	1,465	$	1,173	$	4,197	$	3,665

The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Operating Leases
2024⁽¹⁾	$	904
2025	2,935
2026	2,443
2027	3,415
2028	3,115
Thereafter	15,122
Total future minimum lease payments	27,934
Less: imputed interest	(6,600)
Present value of net future minimum lease payments	$	21,334

______________________________________

(1)Amount represents the remaining three months of year.

Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. In accordance with ASC 842, these leases have been accounted for as operating leases. The Company recognized $0.1 million of lease income during the three months ended September 30, 2024 and 2023. The Company recognized $0.2 million and $0.3 million of lease income during the nine months ended September 30, 2024 and 2023, respectively.

The following presents a maturity analysis of the Company's lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Undiscounted Operating Lease Income
2024⁽¹⁾	$	66
2025	188
2026	144
2027	119

Thereafter	—
Total undiscounted operating lease income	$	517

______________________________________

(1)Amount represents the remaining three months of the year.

SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of summarizes activity for nonqualified stock options

The following presents activity for nonqualified stock options during the nine months ended September 30, 2024:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding as of December 31, 2023	130,936	$	23.79
Granted	—	—
Exercised	—	—
Forfeited or expired	(49,175)	21.28
Outstanding as of September 30, 2024	81,761	25.29		1.25		(1)
Options fully vested / exercisable as of September 30, 2024	81,761	25.29		1.25		(1)

______________________________________

(1)Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values.

Schedule of summarizes the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units

The following presents the activity for the Time Vesting Units and the Financial Performance Units during the nine months ended September 30, 2024:


	Time Vesting Units	Financial Performance Units
Outstanding as of December 31, 2023	242,524	291,416
Granted	75,070	42,805
Vested	(65,765)	(59,449)
Forfeited	(26,848)	(64,769)
Outstanding as of September 30, 2024	224,981	210,003

Schedule of financial Performance Units activity

The following presents the Company’s existing Financial Performance Units as of September 30, 2024 (dollars in thousands, except share amounts):

Grant Period

Threshold Accrual

Maximum Issuable
Shares at Current
Threshold

Unrecognized Compensation
Expense

Weighted-Average (1)

Financial Metric End Date

Vesting Requirement End Date

May 1, 2020 through December 31, 2021, excluding November 18, 2020

150

55,517

37,147

0.3 years

December 31, 2022

December 31, 2024

On November 18, 2020

114

10,760

40,753

1.1 years

December 31, 2022

50% November 18, 2023 & 2025

May 3, 2021 through August 11, 2021

15,721

108,094

1.3 years

December 31, 2023

December 31, 2025

May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2)

—

2.3 years

December 31, 2024

December 31, 2026

On August 4, 2022 (3)

9,090

127,346

2.3 years

December 31, 2024

December 31, 2026

On May 1, 2023 (2)

—

3.3 years

December 31, 2025

December 31, 2027

On May 1, 2024

100

40,224

620,922

4.3 years

December 31, 2026

December 31, 2028

______________________________________

(1)Represents the expected unrecognized stock-based compensation expense recognition period.

(2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of September 30, 2024.

(3) Performance threshold was not met for the years ended December 31, 2022 and 2023. As of September 30, 2024, the 100% threshold is expected to be met for the year ended December 31, 2024.

The following table presents the Company’s Financial Performance Units activity for the periods noted (dollars in thousands, except share amounts):


	Units Granted		Compensation Expense Recognized
	Nine Months Ended September 30,		Three Months Ended September 30,				Nine Months Ended September 30,
Grant Period	2024	2023	2024		2023		2024		2023
May 1, 2019 through April 30, 2020	—	22,577	$	—	$	(18)	$	—	$	65
May 1, 2020 through December 31, 2021, excluding November 18, 2020	—	24,230	37		29		(11)		115
On November 18, 2020	—	2,921	9		91		19		131
May 3, 2021 through August 11, 2021	—	—	22		10		(64)		(81)
May 2, 2022 through November 2022, excluding August 4, 2022(1)	—	322	—		—		—		—
On August 4, 2022 (2)	—	—	14		14		42		19
On May 1, 2023 (1)	—	52,117	—		—		—		—
On May 1, 2024	42,805	—	36		—		61		—

______________________________________

(1) Performance threshold was not met for the three and nine months ended September 30, 2024 and 2023, therefore, no compensation expense was recognized for the three and nine month periods ended September 30, 2024 and 2023.

(2) Performance threshold was not met for the years ended December 31, 2022 and December 31, 2023. As of September 30, 2024, the threshold is expected to be met for the year ended December 31, 2024.

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Allowance for loan losses by portfolio (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Dec. 31, 2023

Jun. 30, 2024

Jun. 30, 2023

Dec. 31, 2022

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Impact of ASU 2016-13 adoption

$ 27,319

$ 22,044

$ 23,931

$ 17,183

248,831

246,256

248,831

246,256

242,738

$ 246,875

$ 242,242

$ 240,864

Financing Receivable, Allowance for Credit Loss, Writeoff

796

1,321

4,175

2,725

(9,340)

(198)

(9,366)

(228)

Accounting Standards Update 2016-13

18,796

23,175

18,796

23,175

23,931

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Cumulative change in accounting principle

3,470

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Impact of ASU 2016-13 adoption

^[1]

$ (5,319)

Cash, Securities, and Other

Financing Receivable, Allowance for Credit Loss [Roll Forward]

375

1,311

961

1,198

Financing Receivable, Allowance for Credit Loss, Writeoff

(185)

(560)

(265)

Cash, Securities, and Other | Accounting Standards Update 2016-13

401

1,126

401

1,126

961

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Financing Receivable, Allowance for Credit Loss [Roll Forward]

193

Consumer and Other

137

124

191

Financing Receivable, Allowance for Credit Loss, Writeoff

(15)

(160)

(4)

(12)

(30)

(42)

(101)

Consumer and Other | Accounting Standards Update 2016-13

137

114

137

114

124

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Construction and Development

106

Financing Receivable, Allowance for Credit Loss [Roll Forward]

7,596

7,496

7,945

2,025

Financing Receivable, Allowance for Credit Loss, Writeoff

(2,262)

405

(2,611)

1,195

Construction and Development | Accounting Standards Update 2016-13

5,334

7,901

5,334

7,901

7,945

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Financing Receivable, Allowance for Credit Loss [Roll Forward]

4,681

1-4 Family Residential

4,310

3,579

Financing Receivable, Allowance for Credit Loss, Writeoff

1,014

Financing Receivable, Allowance for Credit Loss [Roll Forward]

5,325

3,620

5,325

3,620

Non-Owner Occupied CRE

2,203

2,495

2,325

3,490

Financing Receivable, Allowance for Credit Loss, Writeoff

2,139

(240)

2,017

(546)

Non-Owner Occupied CRE | Accounting Standards Update 2016-13

4,342

2,255

4,342

2,255

2,325

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Financing Receivable, Allowance for Credit Loss [Roll Forward]

(689)

Owner Occupied CRE

973

1,182

1,034

1,510

Financing Receivable, Allowance for Credit Loss, Writeoff

(282)

(172)

(343)

(396)

Owner Occupied CRE | Accounting Standards Update 2016-13

691

1,010

691

1,010

1,034

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Commercial and Industrial

(104)

Financing Receivable, Allowance for Credit Loss [Roll Forward]

11,787

5,844

7,172

2,460

Financing Receivable, Allowance for Credit Loss, Writeoff

1,490

4,708

2,781

(9,336)

(186)

(9,336)

(186)

(8,737)

Commercial and Industrial | Accounting Standards Update 2016-13

2,566

7,149

2,566

7,149

7,172

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Financing Receivable, Allowance for Credit Loss [Roll Forward]

2,091

1-4 Family Residential

4,370

6,309

948

116

$ 3

1-4 Family Residential | Accounting Standards Update 2016-13

$ 5,325

5,325

4,370

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Commercial and Industrial

$ (2,808)

Financing Receivable, Allowance for Credit Loss [Roll Forward]

Schedule of basic and diluted earnings per share

$ 22

[1]	Refer to Note 1 – Organization and Summary of Significant Accounting Policies for further information.

BORROWINGS - Schedule of subordinated debt (Details) - Subordinated Notes $ in Thousands	Sep. 30, 2024 USD ($)
Subordinated Notes Issued March 2020
BORROWINGS
Interest bearing rate (as a percent)	5.125%
Basis points	0.0450
Carrying Value	$ 8,000
Initial Debt Issuance Costs	120
Remaining Net Balance	$ 7,988
Subordinated Notes Issued November 2020
BORROWINGS
Interest bearing rate (as a percent)	4.25%
Basis points	0.0402
Carrying Value	$ 10,000
Initial Debt Issuance Costs	162
Remaining Net Balance	$ 9,942
Subordinated Notes Issued August 2021
BORROWINGS
Interest bearing rate (as a percent)	3.25%
Basis points	0.0258
Carrying Value	$ 15,000
Initial Debt Issuance Costs	242
Remaining Net Balance	$ 14,894
Subordinated Notes Issued December 2022
BORROWINGS
Interest bearing rate (as a percent)	7.00%
Basis points	0.0328
Carrying Value	$ 20,000
Initial Debt Issuance Costs	506
Remaining Net Balance	$ 19,684

LOW-INCOME HOUSING TAX CREDIT INVESTMENT	9 Months Ended
LOW-INCOME HOUSING TAX CREDIT INVESTMENT	Sep. 30, 2024
Investments in Affordable Housing Projects [Abstract]
LOW-INCOME HOUSING TAX CREDIT INVESTMENTS	LOW-INCOME HOUSING TAX CREDIT INVESTMENTS On December 19, 2019, the Company invested in a low-income housing tax credit ("LIHTC") investment. On June 26, 2023, the Company entered into two additional LIHTC investments for $3.0 million per investment. As of September 30, 2024 and December 31, 2023, total unfunded commitments related to LIHTC investments totaled $4.3 million and $4.9 million, respectively. As of September 30, 2024 and December 31, 2023, the total balance of all LIHTC investments was $3.1 million. These balances are reflected in the Other assets line item of the Condensed Consolidated Balance Sheets. The Company uses the proportional amortization method to account for this investment. Amortization expense is included within the Income tax expense line item of the Condensed Consolidated Statements of Income. During the three months ended September 30, 2024 and 2023, the Company recognized amortization expense of $0.2 million and $0.2 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized amortization expense of $0.6 million and $0.3 million, respectively. Additionally, during the three months ended September 30, 2024 and 2023, the Company recognized $0.2 million and $0.1 million of tax credits and other benefits from the LIHTC investment, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized $0.5 million and $0.3 million of tax credits and other benefits, respectively. During the three and nine months ended September 30, 2024 and 2023, the Company did not incur any impairment losses.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 71	$ 71
Fair Value	70,826	66,617
Loans accounted for under the fair value option	$ 8,646	$ 13,726
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0	$ 0
Common Stock, shares authorized	90,000,000	90,000,000
Common Stock, shares issued	9,664,101	9,581,183
Common Stock, shares outstanding	9,664,101	9,581,183

LEASES - Leases balance sheet location (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating lease right-of-use assets	$ 18,511	$ 8,929
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Operating lease liabilities	$ 21,334	$ 10,900
Weighted-Average Remaining Lease Term	9 years 8 months 19 days	4 years 8 months 1 day
Weighted-Average Discount Rate	4.12%	2.78%

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest and dividend income:
Loans, including fees	$ 35,353	$ 34,141	$ 105,767	$ 99,804
Loans accounted for under the fair value option	141	300	518	1,078
Investment securities	708	607	1,962	1,863
Interest-bearing deposits in other financial institutions	1,754	1,292	5,961	4,361
Dividends, restricted stock	134	141	334	459
Total interest and dividend income	38,090	36,481	114,542	107,565
Interest expense:
Deposits	21,150	17,467	62,620	46,423
Other borrowed funds	1,372	2,248	4,506	6,368
Total interest expense	22,522	19,715	67,126	52,791
Net interest income	15,568	16,766	47,416	54,774
Less: Provision for credit losses	501	329	2,907	1,862
Net interest income, after provision for credit losses	15,067	16,437	44,509	52,912
Non-interest income:
Trust and investment management fees	4,728	4,846	14,533	14,083
Net gain on mortgage loans	1,451	654	4,535	2,447
Net gain (loss) on loans held for sale	0	0	117	(178)
Bank fees	392	427	1,610	1,610
Risk management and insurance fees	367	145	525	375
Income on company-owned life insurance	108	96	319	277
Net loss on loans accounted for under the fair value option	(233)	(252)	(850)	(1,919)
Unrealized gain (loss) recognized on equity securities	24	(19)	16	(20)
Other	135	202	416	(808)
Total non-interest income	6,972	6,099	21,221	15,867
Total income before non-interest expense	22,039	22,536	65,730	68,779
Non-interest expense:
Salaries and employee benefits	11,439	10,968	33,803	35,214
Occupancy and equipment	2,126	1,807	6,182	5,660
Professional services	1,893	1,867	6,130	5,648
Technology and information systems	1,045	906	3,097	2,569
Data processing	1,101	1,159	3,150	3,350
Marketing	374	355	811	1,125
Amortization of other intangible assets	57	62	170	188
Other	1,333	1,190	4,722	3,607
Total non-interest expense	19,368	18,314	58,065	57,361
Income before income taxes	2,671	4,222	7,665	11,418
Income tax expense	537	1,104	1,940	2,974
Net income available to common shareholders	$ 2,134	$ 3,118	$ 5,725	$ 8,444
Earnings per common share:
Basic (in USD per share)	$ 0.22	$ 0.33	$ 0.59	$ 0.89
Diluted (in USD per share)	$ 0.22	$ 0.32	$ 0.59	$ 0.87

EARNINGS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

The following presents the calculation of basic and diluted earnings per common share during the periods presented (dollars in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Earnings per common share - Basic
Numerator:
Net income available for common shareholders	$	2,134	$	3,118	$	5,725	$	8,444

Denominator:
Basic weighted average shares	9,663,131		9,553,331		9,643,998		9,529,996
Earnings per common share - basic	$	0.22	$	0.33	$	0.59	$	0.89

Earnings per common share - Diluted
Numerator:
Net income available for common shareholders	$	2,134	$	3,118	$	5,725	$	8,444

Denominator:
Basic weighted average shares	9,663,131		9,553,331		9,643,998		9,529,996
Diluted effect of common stock equivalents:
Stock options	—		—		—		5,341
Time Vesting Units	27,212		45,143		24,381		80,174
Financial Performance Units	76,313		144,796		74,387		105,452

Total diluted effect of common stock equivalents	103,525		189,939		98,768		190,967
Diluted weighted average shares	9,766,656		9,743,270		9,742,766		9,720,963
Earnings per common share - diluted	$	0.22	$	0.32	$	0.59	$	0.87

Schedule of potentially dilutive securities

The following table presents potentially dilutive securities excluded from the diluted earnings per share calculation during the periods presented:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Stock options	81,761	149,725	99,378	134,307
Time Vesting Units	87,436	136,437	107,682	116,586
Financial Performance Units	—	9,090	3,030	6,060

Total potentially dilutive securities	169,197	295,252	210,090	256,953

SHAREHOLDERS' EQUITY - Stock based compensation plans (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense	$ 46,000		$ 700,000
Stock issued (in shares)	9,054	8,638	88,419	52,509
Stock surrendered (in shares)	2,776	3,580	36,795	20,381
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			0	0
Recognized compensation expense	$ 0	$ 0	$ 0	$ 0
Unrecognized stock-based compensation expense	$ 0		$ 0
Options fully vested / exercisable at end of period (in shares)	81,761		81,761
Exercise price low range (in USD per share)			$ 24.32
Exercise price high range (in USD per share)			$ 27.00
Expiry period (in years)			10 years
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance (in shares)	409,857		409,857

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Collateral concentration risk \| Loans Receivable \| Secured by Real Estate
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	78.40%	76.10%

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 537	$ 1,104	$ 1,940	$ 2,974
Effective income tax rate	20.10%	26.10%	25.30%	26.00%

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

FAIR VALUE - Summary of changes in fair value of loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value of loans	$ (280)	$ (53)	$ 182	$ (602)
Mortgage loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value of loans	(346)	(163)	16	(35)
Loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value of loans	0	0	0	(20)
Loans held for investment
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value of loans	$ 66	$ 110	$ 166	$ (547)

GOODWILL - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 30,400	$ 30,400	$ 30,400

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

COVER PAGE - shares	9 Months Ended
COVER PAGE - shares	Sep. 30, 2024	Oct. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-38595
Entity Registrant Name	FIRST WESTERN FINANCIAL, INC.
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	37-1442266
Entity Address, Address Line One	1900 16th Street
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	531.8100
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MYFW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,664,101
Entity Central Index Key	0001327607
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

DERIVATIVES

9 Months Ended

Sep. 30, 2024

DERIVATIVES

During the first quarter of 2023, the Company entered into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Cash Flow Hedges: On March 21, 2023, the Company executed an interest rate swap with a notional amount that was designated as a cash flow hedge of certain Federal Home Loan Bank borrowings. The swap hedges the benchmark index (SOFR) with a receive float/pay fixed swap for the period March 21, 2023 through April 1, 2026. The notional amount of the interest rate swap as of September 30, 2024 and December 31, 2023 was $50.0 million. As of September 30, 2024 and December 31, 2023, this hedge was determined to be effective, and the Company expects the hedge to remain effective during the remaining terms of the swap.

Derivatives Not Designated as Hedges: The Company periodically enters into interest rate swaps to offset interest rate exposure with its commercial and residential variable rate loan clients. Clients with variable rate loans may choose to enter into an interest rate swap to hedge the interest rate risk on the loan and effectively pay a fixed rate payment. The Company will simultaneously enter into an interest rate swap on the same underlying loan and notional amount to hedge risk on the fixed rate loan. The notional amount of interest rate swaps with its loan customers as of September 30, 2024 and December 31, 2023 was $50.6 million and $30.3 million, respectively. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.


	As of September 30, 2024				As of December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other assets:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge	$	—	$	—	$	50,000	$	77

Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans	50,586		1,441		30,325		686

Total included in other assets			$	1,441			$	763

Included in other liabilities:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge	$	50,000	$	226	$	—	$	—

Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans	50,586		1,486		30,325		740

Total included in other liabilities			$	1,712			$	740

The effect of cash flow hedge accounting on accumulated other comprehensive income for the periods noted are as follows:


	Three Months Ended September 30,
	2024						2023
(dollars in thousands)	Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income		Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income
Interest rate contracts	$	(635)	$	—	$	—	$	226	$	—	$	—


	Nine Months Ended September 30,
	2024						2023
(dollars in thousands)	Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income		Unrealized Gain (Loss) Recorded in OCI on Derivative		Location of Gain (Loss) Reclassified from OCI into Income		Amount of Gain (Loss) Reclassified from OCI into Income
Interest rate contracts	$	(230)	$	—	$	—	$	745	$	—	$	—

For the three and nine months ended September 30, 2024, the Company recorded $0.2 million and $0.6 million of interest income related to the swap to Other borrowed funds interest expense on the Condensed Consolidated Statements of Income. For the three and nine months ended September 30, 2023, the Company recorded $0.2 million and $0.3 million of interest income related to the swap.

The effect of derivatives not designated as hedging instruments recorded in Other non-interest income on the condensed consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 was immaterial.

FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial Assets
Mortgage loans held for sale, at fair value	$ 12,324	$ 7,254
Derivative assets	1,441	763
Financial Liabilities
Forward commitments and FSC	1,712	740
Fair Value, Recurring
Financial Assets
Mortgage loans held for sale, at fair value	12,324	7,254
Loans held for sale	473
Loans held at fair value	8,646	13,726
Equity securities	771	758
Guarantee asset	270	189
Equity warrants	795	795
Swap derivative assets	1,441	763
Financial Liabilities
Swap derivative liabilities	1,712	740
Fair Value, Recurring \| IRLC, net
Financial Assets
Derivative assets	1,078	345
Fair Value, Recurring \| Forward commitments and FSC
Financial Assets
Derivative assets	85	7
Financial Liabilities
Forward commitments and FSC	113	358
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Recurring
Financial Assets
Mortgage loans held for sale, at fair value	0	0
Loans held for sale	0
Loans held at fair value	0	0
Equity securities	649	636
Guarantee asset	0	0
Equity warrants	0	0
Swap derivative assets	0	0
Financial Liabilities
Swap derivative liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Recurring \| IRLC, net
Financial Assets
Derivative assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Recurring \| Forward commitments and FSC
Financial Assets
Derivative assets	0	0
Financial Liabilities
Forward commitments and FSC	0	0
Significant Other Observable Inputs (Level 2) \| Fair Value, Recurring
Financial Assets
Mortgage loans held for sale, at fair value	12,324	7,254
Loans held for sale	473
Loans held at fair value	0	0
Equity securities	122	122
Guarantee asset	0	0
Equity warrants	0	0
Swap derivative assets	1,441	763
Financial Liabilities
Swap derivative liabilities	1,712	740
Significant Other Observable Inputs (Level 2) \| Fair Value, Recurring \| IRLC, net
Financial Assets
Derivative assets	0	0
Significant Other Observable Inputs (Level 2) \| Fair Value, Recurring \| Forward commitments and FSC
Financial Assets
Derivative assets	85	7
Financial Liabilities
Forward commitments and FSC	112	358
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring
Financial Assets
Mortgage loans held for sale, at fair value	0	0
Loans held for sale	0
Loans held at fair value	8,646	13,726
Equity securities	0	0
Guarantee asset	270	189
Equity warrants	795	795
Swap derivative assets	0	0
Financial Liabilities
Swap derivative liabilities	0	0
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| IRLC, net
Financial Assets
Derivative assets	1,078	345
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Forward commitments and FSC
Financial Assets
Derivative assets	0	0
Financial Liabilities
Forward commitments and FSC	$ 1	$ 0

SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Common Stock

The Company’s common stock has no par value and each holder of common stock is entitled to one vote for each share held (though certain voting restrictions may exist on non-vested restricted stock).

On June 13, 2024, the Company announced that its board of directors authorized the repurchase of up to 200,000 shares of the Company’s common stock, no par value, from time to time, within one year (the “2024 Repurchase Plan”) and that the Board of Governors of the Federal Reserve System advised the Company that it has no objection to the Company’s 2024 Repurchase Plan. The Company may repurchase shares in privately negotiated transactions, in the open market, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 promulgated by the Securities and Exchange Commission, or otherwise in a manner that complies with applicable federal securities laws. The 2024 Repurchase Plan does not obligate the Company to acquire a specific dollar amount or number of shares and it may be extended, modified or discontinued at any time without notice. During the three months ended September 30, 2024, the Company repurchased 5,501 shares under the authorization of the 2024 Repurchase Plan. As of September 30, 2024, there were 194,499 shares available for repurchase under the plan.

On January 6, 2022, the Company filed a Form S-3 Registration Statement with the SEC providing that the Company may offer and sell from time to time, separately or together, in multiple series or in one or more offering, any combination of common stock, preferred stock, debt securities, warrants, depository shares and units, up to a maximum aggregate offer price of $100 million. During the three and nine months ended September 30, 2024, the Company sold no shares of common stock.

Stock-Based Compensation Plans

The 2008 Stock Incentive Plan ("the 2008 Plan") was frozen in connection with the adoption of First Western Financial, Inc. 2016 Omnibus Incentive Plan (“the 2016 Plan”) and no new awards may be granted under the 2008 Plan. Remaining shares not issued under the 2008 Plan poured into the 2016 Plan. As of September 30, 2024, there were a total of 409,857 shares available for issuance under the 2016 Plan. If the Awards outstanding under the 2008 Plan or the 2016 Plan are forfeited, cancelled or terminated with no consideration paid to the Company, those amounts will increase the number of shares eligible to be granted under the 2016 Plan.

Stock Options

The Company did not grant any stock options during the nine months ended September 30, 2024 and 2023.

During the three and nine months ended September 30, 2024 and 2023, the Company recognized no stock based compensation expense associated with stock options. As of September 30, 2024, the Company has no unrecognized stock-based compensation expense related to stock options.

The following presents activity for nonqualified stock options during the nine months ended September 30, 2024:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding as of December 31, 2023	130,936	$	23.79
Granted	—	—
Exercised	—	—
Forfeited or expired	(49,175)	21.28
Outstanding as of September 30, 2024	81,761	25.29		1.25		(1)
Options fully vested / exercisable as of September 30, 2024	81,761	25.29		1.25		(1)

______________________________________

(1)Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values.

As of September 30, 2024, there were 81,761 options that were exercisable. Exercise prices are between $24.32 and $27.00 per share, and the options are exercisable for a period of ten years from the original grant date and expire on various dates between 2025 to 2026.

Restricted Stock Units

Pursuant to the 2016 Plan, the Company may grant associates and non-associate directors long-term cash and stock-based compensation. Historically, the Company has granted certain associates restricted stock units which are earned over time or based on various performance measures and convert to common stock upon vesting, which are summarized here and expanded further below.

The following presents the activity for the Time Vesting Units and the Financial Performance Units during the nine months ended September 30, 2024:


	Time Vesting Units	Financial Performance Units
Outstanding as of December 31, 2023	242,524	291,416
Granted	75,070	42,805
Vested	(65,765)	(59,449)
Forfeited	(26,848)	(64,769)
Outstanding as of September 30, 2024	224,981	210,003

During the three months ended September 30, 2024, the Company issued 9,054 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 2,776 shares, with a combined market value at the dates of settlement of $46 thousand, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the nine months ended September 30, 2024, the Company issued 88,419 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 36,795 shares, with a combined market value at the dates of settlement of $0.7 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the three months ended September 30, 2023, the Company issued 8,638 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 3,580 shares, with a combined market value at the dates of settlement of $0.1 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the nine months ended September 30, 2023, the Company issued 52,509 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 20,381 shares, with a combined market value at the dates of settlement of $0.4 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance.

Time Vesting Units

Time Vesting Units are granted to full-time associates and board members at the date approved by the Company’s board of directors. The Company granted 75,070 Time Vesting Units during the nine months ended September 30, 2024. During the three months ended September 30, 2024 and 2023, the Company recognized compensation expense of $0.4 million for the Time Vesting Units. During the nine months ended September 30, 2024 and 2023, the Company recognized compensation expense of $1.1 million and $1.2 million, respectively, for the Time Vesting Units. As of September 30, 2024, there was $4.2 million of unrecognized compensation expense related to the Time Vesting Units, which is expected to be recognized over a weighted-average period of 3.2 years.

Financial Performance Units

Financial Performance Units are granted to certain key associates and are earned based on the Company achieving various financial performance metrics. If the Company achieves the financial metrics, which include various thresholds from 0% up to 150%, then the Financial Performance Units will have a subsequent vesting period.

The following presents the Company’s existing Financial Performance Units as of September 30, 2024 (dollars in thousands, except share amounts):

Grant Period

Threshold Accrual

Maximum Issuable
Shares at Current
Threshold

Unrecognized Compensation
Expense

Weighted-Average (1)

Financial Metric End Date

Vesting Requirement End Date

May 1, 2020 through December 31, 2021, excluding November 18, 2020

150

55,517

37,147

0.3 years

December 31, 2022

December 31, 2024

On November 18, 2020

114

10,760

40,753

1.1 years

December 31, 2022

50% November 18, 2023 & 2025

May 3, 2021 through August 11, 2021

15,721

108,094

1.3 years

December 31, 2023

December 31, 2025

May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2)

—

2.3 years

December 31, 2024

December 31, 2026

On August 4, 2022 (3)

9,090

127,346

2.3 years

December 31, 2024

December 31, 2026

On May 1, 2023 (2)

—

3.3 years

December 31, 2025

December 31, 2027

On May 1, 2024

100

40,224

620,922

4.3 years

December 31, 2026

December 31, 2028

______________________________________

(1)Represents the expected unrecognized stock-based compensation expense recognition period.

(2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of September 30, 2024.

(3) Performance threshold was not met for the years ended December 31, 2022 and 2023. As of September 30, 2024, the 100% threshold is expected to be met for the year ended December 31, 2024.

The following table presents the Company’s Financial Performance Units activity for the periods noted (dollars in thousands, except share amounts):


	Units Granted		Compensation Expense Recognized
	Nine Months Ended September 30,		Three Months Ended September 30,				Nine Months Ended September 30,
Grant Period	2024	2023	2024		2023		2024		2023
May 1, 2019 through April 30, 2020	—	22,577	$	—	$	(18)	$	—	$	65
May 1, 2020 through December 31, 2021, excluding November 18, 2020	—	24,230	37		29		(11)		115
On November 18, 2020	—	2,921	9		91		19		131
May 3, 2021 through August 11, 2021	—	—	22		10		(64)		(81)
May 2, 2022 through November 2022, excluding August 4, 2022(1)	—	322	—		—		—		—
On August 4, 2022 (2)	—	—	14		14		42		19
On May 1, 2023 (1)	—	52,117	—		—		—		—
On May 1, 2024	42,805	—	36		—		61		—

______________________________________

(2) Performance threshold was not met for the years ended December 31, 2022 and December 31, 2023. As of September 30, 2024, the threshold is expected to be met for the year ended December 31, 2024.

REGULATORY CAPITAL MATTERS

9 Months Ended

Sep. 30, 2024

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

REGULATORY CAPITAL MATTERS

First Western and the Bank are subject to various regulatory capital adequacy requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s condensed consolidated financial statements. Under capital adequacy guidelines and, additionally for banks, the regulatory framework for prompt corrective action, First Western and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

First Western and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings, and other factors. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks ("Basel III rules") have been fully phased in. The net unrealized gain or loss on held-to-maturity securities included in AOCI and accumulated net gains or losses on cash flow hedges are not included in computing regulatory capital. During the nine months ended September 30, 2024 and the year ended December 31, 2023, First Western made no capital injections into the Bank. Management believes as of September 30, 2024, First Western and the Bank meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations for First Western and the Bank provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

The standard ratios established by First Western and the Bank’s primary regulators to measure capital require First Western and the Bank to maintain minimum amounts and ratios, set forth in the following table. These ratios are common equity Tier 1 capital ("CET1"), Tier 1 capital and total capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined).

The actual capital ratios of First Western and the Bank, along with the applicable regulatory capital requirements as of September 30, 2024, were calculated in accordance with the requirements of Basel III. The final rules of Basel III also established a “capital conservation buffer” of 2.5% above new regulatory minimum capital ratios. The minimum capital ratios inclusive of the capital conservation buffer are as follows: (i) a CET1 ratio of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. Banks are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such activities.

As of September 30, 2024 and December 31, 2023, the most recent filings with the FDIC categorized First Western and the Bank as well capitalized under the regulatory guidelines. To be categorized as well capitalized, an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the following table. Management believes there are no conditions or events since September 30, 2024, that have changed the categorization of First Western and the Bank as well capitalized. Management believes First Western and the Bank met all capital adequacy requirements to which it was subject as of September 30, 2024 and December 31, 2023.

The following table presents the actual and required capital amounts and ratios as of dates noted (dollars in thousands):


	Actual				Required for Capital Adequacy Purposes(1)				To be Well Capitalized Under Prompt Corrective Action Regulations
September 30, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 capital to risk-weighted assets
Bank	$	252,549	11.39	%	$	133,040	6.0	%	$	177,387	8.0	%
Consolidated	223,126		10.06		N/A		N/A		N/A		N/A
CET1 to risk-weighted assets
Bank	252,549		11.39		99,780		4.5		144,127		6.5
Consolidated	223,126		10.06		N/A		N/A		N/A		N/A
Total capital to risk-weighted assets
Bank	268,970		12.13		177,387		8.0		221,734		10.0
Consolidated	292,546		13.19		N/A		N/A		N/A		N/A
Tier 1 capital to average assets
Bank	252,549		9.11		110,905		4.0		138,632		5.0
Consolidated	223,126		8.04		N/A		N/A		N/A		N/A


	Actual				Required for Capital Adequacy Purposes(1)				To be Well Capitalized Under Prompt Corrective Action Regulations
December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 capital to risk-weighted assets
Bank	$	244,390	10.54	%	$	139,126	6.0	%	$	185,502	8.0	%
Consolidated	218,150		9.40		N/A		N/A		N/A		N/A
CET1 to risk-weighted assets
Bank	244,390		10.54		104,345		4.5		150,720		6.5
Consolidated	218,150		9.40		N/A		N/A		N/A		N/A
Total capital to risk-weighted assets
Bank	265,391		11.45		185,502		8.0		231,877		10.0
Consolidated	292,151		12.59		N/A		N/A		N/A		N/A
Tier 1 capital to average assets
Bank	244,390		8.71		112,244		4.0		140,306		5.0
Consolidated	218,150		7.77		N/A		N/A		N/A		N/A

______________________________________

(1)Does not include capital conservation buffer.

The Company's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of September 30, 2024, $110.3 million of retained earnings is available to pay dividends from the Bank. As of September 30, 2024 and December 31, 2023, no dividends were declared and paid by the Bank.

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

FAIR VALUE - Summary of assets measured at level 3 fair value on recurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Summary of assets measured on a recurring and nonrecurring basis
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net income available for common shareholders	Net income available for common shareholders	Net income available for common shareholders	Net income available for common shareholders
Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	$ 15,464		$ 15,464			$ 15,464
Significant Unobservable Inputs (Level 3) \| Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	8,646		8,646			8,646
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Loans Held at Fair Value
Summary of assets measured on a recurring and nonrecurring basis
Settlements	299	$ 363	1,016	$ 1,371
Settlements	(1,311)	(1,806)	(4,230)	(7,101)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	8,646	15,464	8,646	15,464	$ 10,190	13,726	$ 17,523	$ 23,321
Loans acquired				1,162
Gains/(losses) in net income, net	66	110	166	(547)
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Guarantee Asset
Summary of assets measured on a recurring and nonrecurring basis
Settlements	(18)	(6)	(37)	(16)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	270	158	270	158	228	189	166	143
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances	(21)	(6)	(68)	(20)
Gains/(losses) in net income, net	39	(8)	50	11
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| IRLC, net
Summary of assets measured on a recurring and nonrecurring basis
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,078	319	1,078	319	912	345	453	229
Loans acquired	1,078	312	2,803	1,652
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances	(1,345)	(606)	(3,458)	(2,784)
Gains/(losses) in net income, net	433	160	1,388	1,222
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Equity Warrants
Summary of assets measured on a recurring and nonrecurring basis
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	795	$ 825	795	$ 825	$ 795	795	$ 825	$ 825
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	8,646		8,646			8,646
Significant Other Observable Inputs (Level 2) \| Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	$ 15,464		$ 15,464			$ 15,464

DEPOSITS - Schedule of time deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Time Deposits, Fiscal Year Maturity [Abstract]
2023	$ 154,835
2025	336,200
2026	3,530
2027	3,956
2028	34,643
Thereafter	288
Total	$ 533,452	$ 496,452

SHAREHOLDERS' EQUITY - Time vesting units (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 46		$ 700
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			75,070
Stock-based compensation expense	400	$ 400	$ 1,100	$ 1,200
Unrecognized compensation expense	$ 4,200		$ 4,200
Unrecognized compensation expense recognition period (in years)			3 years 2 months 12 days

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 5,725	$ 8,444
Adjustments to reconcile net income to net cash from operating activities:
Net amortization of investment securities	(60)	(12)
Stock dividends received on correspondent bank stock	(334)	(459)
Provision for credit losses	2,907	1,862
Net gain (loss) on loans held for sale	(117)	178
Net gain on mortgage loans	(4,535)	(2,447)
Origination of mortgage loans held for sale	(270,136)	(217,774)
Proceeds from mortgage loans	268,733	216,913
Depreciation and amortization	1,909	1,748
Net amortization of purchase accounting adjustments	204	555
Deferred income tax (benefit) expense	(3,187)	155
Increase in cash surrender value of company-owned life insurance	(319)	(277)
Stock-based compensation	1,149	1,444
Change in fair value of equity securities	(16)	20
Change in fair value of loans accounted for under the fair value option	850	1,919
Change in fair value of loans held for sale	0	(269)
Net changes in operating assets and liabilities:
Change in accounts receivable	310	(227)
Change in accrued interest receivable and other assets	(980)	50
Change in accrued interest payable and other liabilities	1,765	(1,757)
Net cash used in operating activities	3,868	10,066
Activity in held-to-maturity securities:
Maturities, prepayments, and calls	6,488	5,717
Purchases	(8,783)	0
Purchases of correspondent bank stock	(6,866)	(23,727)
Redemption of correspondent bank stock	8,609	19,991
Contributions to low-income housing tax credit investments	(537)	(1,140)
Loan and note receivable originations and principal collections, net	106,458	(101,180)
Purchases of premises and equipment	(835)	(1,890)
Proceeds from loans held for sale previously classified as loans held for investment	3,470	40,602
Purchases of loans	0	(1,162)
Net cash provided by (used in) investing activities	108,004	(62,789)
Cash flows from financing activities
Net change in deposits	(25,985)	14,767
Payments to Federal Home Loan Bank borrowings	(483,624)	(1,262,893)
Proceeds from Federal Home Loan Bank borrowings	442,449	1,306,462
Payments to Federal Reserve borrowings	(82,296)	(292,059)
Proceeds from Federal Reserve borrowings	60,133	361,534
Repurchase of common stock	(89)	0
Proceeds from the exercise of stock options	0	245
Cash paid for withholding taxes on share-based awards	(680)	(361)
Net cash (used in) provided by financing activities	(90,092)	127,695
Net change in cash and cash equivalents	21,780	74,972
Cash and cash equivalents, beginning of year	254,442	196,512
Cash and cash equivalents, end of period	276,222	271,484
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	67,580	50,713
Income tax payment	93	2,935
Cash paid for lease liabilities	2,617	2,370
Supplemental noncash disclosures:
Transfer of loans held for investment to loans held for sale	3,722	39,221
CECL adoption	0	5,319
RSI dissolution	0	751
Lease right-of-use-asset obtained in exchange for lease liabilities	11,882	1,704
Real Estate Owned, Transfer to Real Estate Owned	$ 27,390	$ 0

FAIR VALUE - Summary of assets measured at fair value on nonrecurring basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net recorded investment	$ 15,464	$ 15,464
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net recorded investment	8,646	8,646
Significant Other Observable Inputs (Level 2)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net recorded investment	15,464	15,464
Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Net recorded investment	$ 8,646	$ 8,646

BORROWINGS - Narrative (Details)		3 Months Ended		9 Months Ended
BORROWINGS - Narrative (Details)	Jul. 01, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) fund	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
BORROWINGS
Number of unsecured federal funds lines of credit \| fund				2
Interest expenses		$ 600,000	$ 700,000	$ 2,000,000	$ 2,000,000
Line of Credit
BORROWINGS
Repayments of debt	$ 128,700,000
PPPLF
BORROWINGS
Interest bearing rate (as a percent)		35.00%		35.00%
Advances from Federal Home Loan Banks		$ 2,400,000		$ 2,400,000		$ 3,500,000
PPPLF \| Minimum
BORROWINGS
Debt term (in years)				2 years
PPPLF \| Maximum
BORROWINGS
Debt term (in years)				5 years
Federal Funds Lines of Credit One
BORROWINGS
Maximum borrowing capacity		10,000,000		$ 10,000,000
Amount outstanding		0		0		0
Federal Funds Lines of Credit Two
BORROWINGS
Maximum borrowing capacity		19,000,000		19,000,000
Bank Technology Fund
BORROWINGS
Par value of collateral amount		10,300,000		10,300,000
FHLB
BORROWINGS
Amount of collateral pledged		1,300,000,000		1,300,000,000		$ 1,310,000,000
Borrowings from FHLB		612,100,000		612,100,000
March 27, 2024
BORROWINGS
Borrowings from FHLB		31,000,000		31,000,000
January 10, 2025
BORROWINGS
Borrowings from FHLB		$ 10,000,000.0		$ 10,000,000.0
Interest bearing rate (as a percent)		0.10%		0.10%
April 1, 2024
BORROWINGS
Borrowings from FHLB		$ 50,000,000		$ 50,000,000
April 1, 2024 \| Secured Overnight Financing Rate (SOFR)
BORROWINGS
Interest bearing rate (as a percent)		0.15%		0.15%

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Loan modification (Details) - Extended Maturity and Interest Rate Reduction - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Modified [Line Items]
Principal forgiveness			$ 0	$ 0
Interest rate reduction			0	0
Term extension			978	0
Combination: term extension and principal forgiveness			0	185
Combination: term extension and interest rate reduction			0	0
Commercial and Industrial
Financing Receivable, Modified [Line Items]
Principal forgiveness			0	0
Interest rate reduction			0	0
Term extension			978	0
Combination: term extension and principal forgiveness			0	185
Combination: term extension and interest rate reduction			$ 0	$ 0
Total class of financing receivable			0.40%	0.10%
Commercial and Industrial
Financing Receivable, Modified [Line Items]
Principal forgiveness	$ 0	$ 185	$ 0	$ 185
Weighted average interest rate reduction	$ 0	$ 0	$ 0	$ 0
Weighted average term extension		2 years 9 months 18 days	5 months	2 years 9 months 18 days

REGULATORY CAPITAL MATTERS (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of actual and required capital ratios

The following table presents the actual and required capital amounts and ratios as of dates noted (dollars in thousands):


	Actual				Required for Capital Adequacy Purposes(1)				To be Well Capitalized Under Prompt Corrective Action Regulations
September 30, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 capital to risk-weighted assets
Bank	$	252,549	11.39	%	$	133,040	6.0	%	$	177,387	8.0	%
Consolidated	223,126		10.06		N/A		N/A		N/A		N/A
CET1 to risk-weighted assets
Bank	252,549		11.39		99,780		4.5		144,127		6.5
Consolidated	223,126		10.06		N/A		N/A		N/A		N/A
Total capital to risk-weighted assets
Bank	268,970		12.13		177,387		8.0		221,734		10.0
Consolidated	292,546		13.19		N/A		N/A		N/A		N/A
Tier 1 capital to average assets
Bank	252,549		9.11		110,905		4.0		138,632		5.0
Consolidated	223,126		8.04		N/A		N/A		N/A		N/A


	Actual				Required for Capital Adequacy Purposes(1)				To be Well Capitalized Under Prompt Corrective Action Regulations
December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 capital to risk-weighted assets
Bank	$	244,390	10.54	%	$	139,126	6.0	%	$	185,502	8.0	%
Consolidated	218,150		9.40		N/A		N/A		N/A		N/A
CET1 to risk-weighted assets
Bank	244,390		10.54		104,345		4.5		150,720		6.5
Consolidated	218,150		9.40		N/A		N/A		N/A		N/A
Total capital to risk-weighted assets
Bank	265,391		11.45		185,502		8.0		231,877		10.0
Consolidated	292,151		12.59		N/A		N/A		N/A		N/A
Tier 1 capital to average assets
Bank	244,390		8.71		112,244		4.0		140,306		5.0
Consolidated	218,150		7.77		N/A		N/A		N/A		N/A

______________________________________

(1)Does not include capital conservation buffer.

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of fair value assets and liabilities measured on recurring basis

The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):


September 30, 2024	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Reported Balance
Financial Assets
Mortgage loans held for sale	$	—	$	12,324	$	—	$	12,324
Loans held for sale	$	—	$	473	$	—	$	473
Loans held at fair value	$	—	$	—	$	8,646	$	8,646
Forward commitments and FSC	$	—	$	85	$	—	$	85
Equity securities	$	649	$	122	$	—	$	771
Guarantee asset	$	—	$	—	$	270	$	270
IRLC, net	$	—	$	—	$	1,078	$	1,078
Equity warrants	$	—	$	—	$	795	$	795
Swap derivative assets	$	—	$	1,441	$	—	$	1,441
Financial Liabilities
Forward commitments and FSC	$	—	$	112	$	1	$	113
Swap derivative liabilities	$	—	$	1,712	$	—	$	1,712


December 31, 2023	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Reported Balance
Financial Assets
Mortgage loans held for sale	$	—	$	7,254	$	—	$	7,254
Loans held at fair value	$	—	$	—	$	13,726	$	13,726
Forward commitments and FSC	$	—	$	7	$	—	$	7
Equity securities	$	636	$	122	$	—	$	758
Guarantee asset	$	—	$	—	$	189	$	189
IRLC, net	$	—	$	—	$	345	$	345
Equity warrants	$	—	$	—	$	795	$	795
Swap derivative asset	$	—	$	763	$	—	$	763
Financial Liabilities
Forward commitments and FSC	$	—	$	358	$	—	$	358
Swap derivative liabilities	$	—	$	740	$	—	$	740

Schedule of loans measured at fair value under fair value option

The following tables provide more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted (dollars in thousands):


	September 30, 2024
	Total Loans						Non Accruals						90 Days or More Past Due
	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	12,324	$	12,099	$	225	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for sale	473		594		(121)		473		594		(121)		473		594		(121)
Loans held for investment	8,646		8,883		(237)		153		158		(5)		153		158		(5)
	$	21,443	$	21,576	$	(133)	$	626	$	752	$	(126)	$	626	$	752	$	(126)


	December 31, 2023
	Total Loans						Non Accruals						90 Days or More Past Due
	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	7,254	$	7,106	$	148	$	—	$	—	$	—	$	—	$	—	$	—

Loans held for investment	13,726		14,129		(403)		210		220		(10)		210		220		(10)
	$	20,980	$	21,235	$	(255)	$	210	$	220	$	(10)	$	210	$	220	$	(10)

Schedule of changes in fair value of loans

The following table presents the changes in fair value of loans accounted for under the fair value option as of the dates noted:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
Mortgage loans held for sale	$	(346)	$	(163)	$	16	$	(35)
Loans held for sale	—		—		—		(20)
Loans held for investment	66		110		166		(547)
	$	(280)	$	(53)	$	182	$	(602)

The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage loans held for sale	2024		2023		2024		2023
Balance at beginning of period	$	26,856	$	19,746	$	7,254	$	8,839
Loans originated	97,878		66,586		270,136		217,774
Fair value changes	(346)		(163)		16		(35)
Sales	(112,033)		(74,064)		(265,034)		(214,467)
Settlements	(31)		—		(48)		(6)
Balance at end of period	$	12,324	$	12,105	$	12,324	$	12,105


	Three Months Ended September 30,				Nine Months Ended September 30,
Loans held for sale	2024		2023		2024		2023
Balance at beginning of period	$	—	$	—	$	—	$	1,965
Loans transferred from held for investment	993		—		3,722		39,221
Fair value changes	—		—		—		(20)
Sales	(520)		—		(3,249)		(40,761)
Settlements	—		—		—		(405)
Balance at end of period	$	473	$	—	$	473	$	—


	Three Months Ended September 30,				Nine Months Ended September 30,
Loans held for investment, fair value option	2024		2023		2024		2023
Balance at beginning of period	$	10,190	$	17,523	$	13,726	$	23,321
Loans acquired	—		—		—		1,162
Fair value changes	66		110		166		(547)
Net charge-offs	(299)		(363)		(1,016)		(1,371)
Settlements	(1,311)		(1,806)		(4,230)		(7,101)
Balance at end of period	$	8,646	$	15,464	$	8,646	$	15,464

Summary of assets and liability for level 3 instruments measured at fair value on recurring basis

The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands):


Three Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	10,190	$	228	$	912	$	795
Acquisitions	—		—		1,078		—
Originations	—		21		(1,345)		—

Gains/(losses) in net income, net	66		39		433		—
Net charge-offs	(299)		—		—		—
Settlements	(1,311)		(18)		—		—
Ending balance	$	8,646	$	270	$	1,078	$	795


Three Months Ended September 30, 2023	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	17,523	$	166	$	453	$	825
Acquisitions	—		—		312		—
Originations	—		6		(606)		—
Gains/(losses) in net income, net	110		(8)		160		—
Net charge-offs	(363)		—		—		—
Settlements	(1,806)		(6)		—		—
Ending balance	$	15,464	$	158	$	319	$	825


Nine Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	13,726	$	189	$	345	$	795
Acquisitions	—		—		2,803		—
Originations	—		68		(3,458)		—

Gains/(losses) in net income, net	166		50		1,388		—


Net charge-offs	(1,016)		—		—		—
Settlements	(4,230)		(37)		—		—
Ending balance	$	8,646	$	270	$	1,078	$	795


Nine Months Ended September 30, 2023	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	23,321	$	143	$	229	$	825
Acquisitions	1,162		—		1,652		—
Originations	—		20		(2,784)		—
Gains/(losses) in net income, net	(547)		11		1,222		—


Net charge-offs	(1,371)		—		—		—
Settlements	(7,101)		(16)		—		—
Ending balance	$	15,464	$	158	$	319	$	825

Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs

The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted:

Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2024

(dollars in thousands)

Fair Value

Valuation
Technique

Significant
Unobservable Input

Range
(Weighted Average)

Recurring fair value

Loans held for investment at fair value

8,646

Discounted cash flow

Discount rate

8% (8%)

Guarantee asset

270

Discounted cash flow

Discount rate
Prepayment rate

5% (5%)

8.5% (8.5%)

IRLC, net

1,078

Best execution model

Pull through

66% to 100%

(84%)

Equity warrants

795

Black-Scholes option pricing model

Volatility
Risk-free interest rate
Remaining life

23.0% to 59.6% (30.4%)

4.06% (4.06%)

0 to 1.25 years

Nonrecurring fair value

OREO:

1-4 Family Residential

11,421

Appraisal value

Commission, cost to sell, closing costs

5% (5.0 %)

Commercial and Industrial

25,615

Appraisal value

Commission, cost to sell, closing costs

6.0% (6.0%)

Collateral dependent loans, net of ACL:

Commercial and Industrial

691

Sales Comparison-Market Value Approach

Market Rate Adjustments

11% (11%)

Commercial and Industrial

144

Sales comparison, Market approach - guideline transaction method

Loss given default

8% to 62%

(42%)

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023

(dollars in thousands)

Fair Value

Valuation
Technique

Significant
Unobservable Input

Range
(Weighted Average)

Recurring fair value

Loans held for investment at fair value

13,726

Discounted cash flow

Discount rate

7% to 8% (8%)

Guarantee asset

189

Discounted cash flow

Discount rate
Prepayment rate

5% (5%)

IRLC, net

345

Best execution model

Pull through

48% to 100% (86%)

Equity warrants

795

Black-Scholes option pricing model

Volatility
Risk-free interest rate
Remaining life

20.1% to 23.0% (22.4%)

4.62% (4.62%)

2.00 to 2.03 years

Nonrecurring fair value

Collateral dependent loans:

Consumer and Other

7,500

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

1-4 Family Residential

2,438

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Commercial and Industrial

24,791

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Commercial and Industrial

148

Sales comparison,
Market approach –
guideline transaction
method

Loss given default

14% to 62% (20%)

Commercial and Industrial

799

Sales Comparison-Market Value Approach

Market rate adjustments

21% (11%)

Owner Occupied CRE

3,980

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Summary of carrying amounts and estimated fair values of financial instruments

The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands):


	Carrying Amount		Fair Value Measurements Using:
September 30, 2024			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	276,222	$	276,222	$	—	$	—
Held-to-maturity securities, net of ACL	76,745		247		62,829		7,750
Loans, net(1)	2,355,757		—		—		2,286,056
Accrued interest receivable	10,455		10,455		—		—
Liabilities:
Term deposits(2)	533,452		480,413		—		54,016
Non-term deposits	1,969,602		1,969,602		—		—
Borrowings:

FHLB borrowings – floating rate	50,000		—		49,993		—
Federal Reserve borrowings – fixed rate	12,373		2,373		9,979		—
Subordinated notes – fixed-to-floating rate	52,508		—		—		47,727
Accrued interest payable	3,339		3,339		—		—


	Carrying Amount		Fair Value Measurements Using:
December 31, 2023			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	254,442	$	254,442	$	—	$	—
Held-to-maturity securities, net of ACL	74,102		242		58,231		8,144
Loans, net(1)	2,493,258		—		—		2,395,468
Accrued interest receivable	11,428		11,428		—		—
Liabilities:
Term deposits(2)	496,452		414,613		—		82,564
Non-term deposits	2,032,587		2,032,587		—		—
Borrowings:
FHLB borrowings – fixed rate	41,175		—		41,372		—
FHLB borrowings – floating rate	50,000		—		49,986		—
Federal Reserve borrowings – fixed rate	34,536		3,539		30,936		—
Subordinated notes – fixed-to-floating rate	52,340		—		—		48,228
Accrued interest payable	3,793		3,793		—		—

(1) Excludes loans accounted for under the fair value option of $8.6 million and $13.7 million as of September 30, 2024 and December 31, 2023, respectively, as these are carried at fair value.

(2) Term deposits due within one year totaling $480.4 million and $414.6 million as of September 30, 2024 and December 31, 2023, respectively, are classified under Level 1 fair value measurement.

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Cash and cash equivalents:
Cash and due from banks	$ 18,979	$ 7,284
Interest-bearing deposits in other financial institutions	257,243	247,158
Total cash and cash equivalents	276,222	254,442
Held-to-maturity debt securities, net of allowance for credit losses of $71 and $71, (fair value of $70,826 and $66,617), respectively	76,745	74,102
Correspondent bank stock, at cost	5,746	7,155
Mortgage loans held for sale, at fair value	12,324	7,254
Loans held at fair value	473	0
Total	2,383,199	2,530,915
Allowance for credit losses	(18,796)	(23,931)
Total, net	2,364,403	2,506,984
Premises and equipment, net	24,350	25,256
Accrued interest receivable	10,455	11,428
Accounts receivable	4,864	5,095
Other receivables	10,397	4,467
Other real estate owned, net	37,036	0
Goodwill and other intangible assets, net	31,684	31,854
Deferred tax assets, net	4,075	6,407
Company-owned life insurance	16,849	16,530
Other assets	36,325	24,488
Total assets	2,911,948	2,975,462
Deposits:
Noninterest-bearing	473,576	482,579
Interest-bearing	2,029,478	2,046,460
Total deposits	2,503,054	2,529,039
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings	62,373	125,711
Subordinated notes	52,508	52,340
Accrued interest payable	3,339	3,793
Other liabilities	41,843	21,841
Total liabilities	2,663,117	2,732,724
Shareholders' Equity
Preferred stock - no par value; 10,000,000 shares authorized; 0 issued and outstanding	0	0
Common stock - no par value; 90,000,000 shares authorized; 9,664,101 and 9,581,183 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	193,274	192,894
Retained earnings	56,767	51,042
Accumulated other comprehensive loss	(1,210)	(1,198)
Total shareholders’ equity	248,831	242,738
Total liabilities and shareholders’ equity	$ 2,911,948	$ 2,975,462

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Narrative (Details)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 2,383,199,000			$ 2,383,199,000		$ 2,530,915,000
Loans accounted for under the fair value option	8,646,000			8,646,000		13,726,000
Total, net	2,364,403,000			2,364,403,000		2,506,984,000
Interest income on nonaccrual loans	0	$ 200,000		0	$ 200,000
Accrued interest receivable	$ 9,700,000			9,700,000		10,800,000
Release of provision on pooled loans				(1,600,000)
Increase in provision for individually analyzed loans				3,500,000
Number of loans modified \| loan	0
Other real estate owned, net	$ 37,036,000		$ 11,400,000	37,036,000		0
Additional OREO amount	25,600,000
Protective advances		$ 0			$ 500,000
Fair Value Carrying Amount	200,000			200,000		200,000
Significant Unobservable Inputs (Level 3)
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss on non-performing loans	36,000			36,000		3,800,000
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	300,000			300,000		3,800,000
Consumer and Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	20,839,000			20,839,000		40,754,000
Loans accounted for under the fair value option	8,900,000			8,900,000		14,100,000
PPP Loans \| Cash, Securities, and Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 2,600,000			$ 2,600,000		$ 4,200,000
Percent of loans on total loan segment	2.10%			2.10%		3.00%
Cash, Securities, and Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 119,284,000			$ 119,284,000		$ 139,947,000
MSLP loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of loans on total loan segment						1.50%
Number of loans \| loan			3	1
Total, net						$ 5,100,000
MSLP loan \| COVID-19
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of loans on total loan segment	0.80%			0.80%
Total, net	$ 2,000,000			$ 2,000,000
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	239,830,000			239,830,000		337,180,000
Simmons Bank
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 172,600,000			$ 172,600,000		$ 208,200,000

INVESTMENT SECURITIES - Amortized cost and fair value of securities held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	$ 76,816		$ 74,173
Gross Unrecognized Gains	152		9
Gross Unrecognized Losses	(6,142)		(7,565)
Fair Value	70,826		66,617
Allowance for Credit Losses	(71)		(71)
U.S. Treasury debt
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	246		253
Gross Unrecognized Gains	2		0
Gross Unrecognized Losses	0		(11)
Fair Value	248		242
Allowance for Credit Losses	0		0
Corporate bonds
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	23,654		23,687
Gross Unrecognized Gains	0		0
Gross Unrecognized Losses	(2,986)		(3,020)
Fair Value	20,668		20,667
Allowance for Credit Losses	(71)	$ (71)	(71)	$ (71)	$ (71)	$ 0
Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS") – residential
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	31,605		34,579
Gross Unrecognized Gains	28		0
Gross Unrecognized Losses	(2,437)		(3,410)
Fair Value	29,196		31,169
Allowance for Credit Losses	0		0
Federal National Mortgage Association ("FNMA") MBS – residential
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	12,507		6,035
Gross Unrecognized Gains	112		0
Gross Unrecognized Losses	(345)		(509)
Fair Value	12,274		5,526
Allowance for Credit Losses	0		0
Government collateralized mortgage obligations ("GMO") and MBS – commercial
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	5,205		5,836
Gross Unrecognized Gains	10		9
Gross Unrecognized Losses	(245)		(377)
Fair Value	4,970		5,468
Allowance for Credit Losses	0		0
Corporate collateralized mortgage obligations ("CMO") and MBS
Debt Securities, Held-to-Maturity, Maturity [Abstract]
Amortized Cost	3,599		3,783
Gross Unrecognized Gains	0		0
Gross Unrecognized Losses	(129)		(238)
Fair Value	3,470		3,545
Allowance for Credit Losses	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Assets:
Cash and cash equivalents	$ 276,222	$ 254,442	$ 271,484	$ 196,512
Held-to-maturity securities, net of ACL	70,826	66,617
Total	2,383,199	2,530,915
Accrued interest receivable	10,455	11,428
Liabilities:
FHLB borrowings – fixed rate	62,373	125,711
Subordinated notes	52,508	52,340
Accrued interest payable	3,339	3,793
Carrying Amount
Assets:
Cash and cash equivalents	276,222	254,442
Held-to-maturity securities, net of ACL	76,745	74,102
Total	2,355,757	2,493,258
Accrued interest receivable	10,455	11,428
Liabilities:
Term deposits	533,452	496,452
Non-term deposits	1,969,602	2,032,587
FHLB borrowings – fixed rate		41,175
FHLB borrowings – floating rate	50,000	50,000
Federal Reserve borrowings – fixed rate	12,373	34,536
Accrued interest payable	3,339	3,793
Subordinated Notes \| Carrying Amount
Liabilities:
Subordinated notes	52,508	52,340
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Estimate of Fair Value Measurement
Assets:
Cash and cash equivalents	276,222	254,442
Held-to-maturity securities, net of ACL	247	242
Accrued interest receivable	10,455	11,428
Liabilities:
Term deposits	480,413	414,613
Non-term deposits	1,969,602	2,032,587
Federal Reserve borrowings – fixed rate	2,373	3,539
Accrued interest payable	3,339	3,793
Significant Other Observable Inputs (Level 2) \| Estimate of Fair Value Measurement
Assets:
Held-to-maturity securities, net of ACL	62,829	58,231
Liabilities:
FHLB borrowings – fixed rate		41,372
FHLB borrowings – floating rate	49,993	49,986
Federal Reserve borrowings – fixed rate	9,979	30,936
Significant Unobservable Inputs (Level 3) \| Estimate of Fair Value Measurement
Assets:
Held-to-maturity securities, net of ACL	7,750	8,144
Total	2,286,056	2,395,468
Liabilities:
Term deposits	54,016	82,564
Significant Unobservable Inputs (Level 3) \| Subordinated Notes \| Estimate of Fair Value Measurement
Liabilities:
Subordinated notes	$ 47,727	$ 48,228

SHAREHOLDERS' EQUITY - Financial performance units (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 46		$ 700
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage			100.00%
Granted (in shares)			42,805
Financial Performance Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage			0.00%
Financial Performance Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage			150.00%
Financial Performance Units Granted From May 1, 2019 Through April 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			0	22,577
Stock-based compensation expense	$ 0	$ (18)	$ 0	$ 65
Financial Performance Units Granted From May 01, 2020 Through December 31 2020, Excluding November 18, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			150.00%
Maximum Issuable Shares at Current Threshold (in shares)	55,517		55,517
Unrecognized Compensation Expense	$ 37,147		$ 37,147
Weighted-Average Life (in years)			3 months 18 days
Granted (in shares)			0	24,230
Stock-based compensation expense	$ 37	29	$ (11)	$ 115
Financial Performance Units Granted on November 18, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			114.00%
Maximum Issuable Shares at Current Threshold (in shares)	10,760		10,760
Unrecognized Compensation Expense	$ 40,753		$ 40,753
Weighted-Average Life (in years)			1 year 1 month 6 days
Remainder threshold awards	50.00%		50.00%
Granted (in shares)			0	2,921
Stock-based compensation expense	$ 9	91	$ 19	$ 131
Financial Performance Units Granted From May 3 2021 Through August 11,2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			55.00%
Maximum Issuable Shares at Current Threshold (in shares)	15,721		15,721
Unrecognized Compensation Expense	$ 108,094		$ 108,094
Weighted-Average Life (in years)			1 year 3 months 18 days
Granted (in shares)			0	0
Stock-based compensation expense	$ 22	10	$ (64)	$ (81)
Financial Performance Units Granted On May 2, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			0.00%
Maximum Issuable Shares at Current Threshold (in shares)	0		0
Unrecognized Compensation Expense	$ 0		$ 0
Weighted-Average Life (in years)			2 years 3 months 18 days
Granted (in shares)			0	322
Stock-based compensation expense	$ 0	0	$ 0	$ 0
Financial Performance Units Granted On August 4, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			33.00%
Maximum Issuable Shares at Current Threshold (in shares)	9,090		9,090
Unrecognized Compensation Expense	$ 127,346		$ 127,346
Weighted-Average Life (in years)			2 years 3 months 18 days
Granted (in shares)			0	0
Stock-based compensation expense	$ 14	14	$ 42	$ 19
Financial Performance Units Granted On May 1, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			0.00%
Maximum Issuable Shares at Current Threshold (in shares)	0		0
Unrecognized Compensation Expense	$ 0		$ 0
Weighted-Average Life (in years)			3 years 3 months 18 days
Granted (in shares)			0	52,117
Stock-based compensation expense	$ 0	0	$ 0	$ 0
Financial Performance Units Granted On May 1, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual			100.00%
Maximum Issuable Shares at Current Threshold (in shares)	40,224		40,224
Unrecognized Compensation Expense	$ 620,922		$ 620,922
Weighted-Average Life (in years)			4 years 3 months 18 days
Granted (in shares)			42,805	0
Stock-based compensation expense	$ 36	$ 0	$ 61	$ 0

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Recorded investment in non-accrual loans by class (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	$ 14,235	$ 7,360
Financing Receivable, Nonaccrual	14,414	50,816
90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	285
Cash, Securities, and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	1,704	1,704
Financing Receivable, Nonaccrual	1,704	1,704
Cash, Securities, and Other \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	0	4
Financing Receivable, Nonaccrual	0	7,504
Consumer and Other \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	0	2,719
Financing Receivable, Nonaccrual	0	2,719
Construction and Development \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	1,468	578
Financing Receivable, Nonaccrual	1,468	3,016
1-4 Family Residential \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	285
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	0
Financing Receivable, Nonaccrual	0
Non-Owner Occupied CRE \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	0	0
Financing Receivable, Nonaccrual	0	3,980
Owner Occupied CRE \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans with no ACL	11,063	2,355
Financing Receivable, Nonaccrual	11,242	31,893
Commercial and Industrial \| 90 or More Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 0	$ 0

DEPOSITS

9 Months Ended

Sep. 30, 2024

Deposits [Abstract]

DEPOSITS

The following presents the Company’s interest-bearing deposits as of the dates noted:


(dollars in thousands)	September 30, 2024		December 31, 2023
Money market deposit accounts	$	1,350,619	$	1,386,149
Time deposits	533,452		496,452
Interest checking accounts	130,255		147,488
Savings accounts	15,152		16,371
Total interest-bearing deposits	$	2,029,478	$	2,046,460
Aggregate time deposits of $250 or greater	$	87,647	$	91,038

Overdraft balances classified as loans totaled $0.1 million as of September 30, 2024 and December 31, 2023, respectively.

The following presents the scheduled maturities of all time deposits for each of the next five years and total amounts thereafter (dollars in thousands):


Year ending December 31,	Time Deposits
2024(1)	$	154,835
2025	336,200
2026	3,530
2027	3,956
2028	34,643
Thereafter	288
Total	$	533,452

______________________________________

(1)Amount represents the remaining three months of year.

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT REPORTING (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Statement
Total interest income	$ 38,090	$ 36,481	$ 114,542	$ 107,565
Total interest expense	22,522	19,715	67,126	52,791
Provision for credit losses	501	329	2,907	1,862
Net interest income, after provision for credit losses	15,067	16,437	44,509	52,912
Non-interest income	6,972	6,099	21,221	15,867
Total income before non-interest expense	22,039	22,536	65,730	68,779
Depreciation and amortization expense	650	589	1,909	1,772
All other non-interest expense	18,718	17,725	56,156	55,589
Income before income taxes	2,671	4,222	7,665	11,418
Segment reporting
Goodwill	30,400	30,400	30,400	30,400	$ 30,400
Total assets	2,911,948	3,002,753	2,911,948	3,002,753	$ 2,975,462
Wealth Management
Income Statement
Total interest income	37,818	36,267	113,813	107,009
Total interest expense	22,522	19,715	67,126	52,791
Provision for credit losses	501	329	2,907	1,862
Net interest income, after provision for credit losses	14,795	16,223	43,780	52,356
Non-interest income	5,501	5,424	16,648	13,364
Total income before non-interest expense	20,296	21,647	60,428	65,720
Depreciation and amortization expense	642	581	1,884	1,747
All other non-interest expense	17,436	15,964	52,284	50,687
Income before income taxes	2,218	5,102	6,260	13,286
Segment reporting
Goodwill	30,400	30,400	30,400	30,400
Total assets	2,897,317	2,989,028	2,897,317	2,989,028
Mortgage
Income Statement
Total interest income	272	214	729	556
Net interest income, after provision for credit losses	272	214	729	556
Non-interest income	1,471	675	4,573	2,503
Total income before non-interest expense	1,743	889	5,302	3,059
Depreciation and amortization expense	8	8	25	25
All other non-interest expense	1,282	1,761	3,872	4,902
Income before income taxes	453	(880)	1,405	(1,868)
Segment reporting
Total assets	$ 14,631	$ 13,725	$ 14,631	$ 13,725

DERIVATIVES - Derivative Reclassified into Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recorded in OCI on Derivative	$ (837)	$ 299	$ (303)	$ 983
Interest Rate Swap \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recorded in OCI on Derivative	(635)	226	(230)	745
Interest Rate Swap \| Designated as Hedging Instrument \| Other non-interest income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Gain (Loss) Recorded in OCI on Derivative	0	0	0	0
Amount of Gain (Loss) Reclassified from OCI into Income	$ 0	$ 0	$ 0	$ 0

LEASES - Leases costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
LEASES - Leases costs (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 874	$ 720	$ 2,474	$ 2,239
Variable lease cost	591	453	1,723	1,426
Lease costs, net	$ 1,465	$ 1,173	$ 4,197	$ 3,665

BORROWINGS - Schedule of borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
BORROWINGS
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 60,000	$ 122,172
January 1, 2024
BORROWINGS
Rate %	5.55%
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 0	41,175
March 27, 2024
BORROWINGS
Rate %	4.78%
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 0	30,997
March 29, 2024
BORROWINGS
Rate %	5.60%
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 0	50,000
January 10, 2025
BORROWINGS
Rate %	4.87%
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 10,000	0
October 1, 2024
BORROWINGS
Rate %	4.99%
Long-Term Federal Home Loan Bank And Federal Reserve Bank Advances	$ 50,000	$ 0

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Summary of the Company's loans

LOANS AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

The following presents a summary of the Company’s loans at amortized cost as of the dates noted:


(dollars in thousands)	September 30, 2024		December 31, 2023
Cash, Securities, and Other	$	119,284	$	139,947
Consumer and Other	12,193		27,028
Construction and Development	300,270		345,516
1-4 Family Residential	922,725		927,965
Non-Owner Occupied CRE	605,323		543,692
Owner Occupied CRE	174,928		195,861
Commercial and Industrial	239,830		337,180
Total	2,374,553		2,517,189

Allowance for credit losses	(18,796)		(23,931)
Total, net	$	2,355,757	$	2,493,258
Loans accounted for under the fair value option(1)	8,646		13,726
Loans, net	$	2,364,403	$	2,506,984

______________________________________

(1)Includes $8.9 million and $14.1 million of unpaid principal balance of loans held for investment measured at fair value as of September 30, 2024 and December 31, 2023, respectively. Includes fair value adjustments on loans held for investment accounted for under the fair value option. See Note 12 – Fair Value.

Summary of aging analysis of the recorded investments in loans past due

The following presents, by class, an aging analysis of the amortized cost basis in loans past due as of the date noted (dollars in thousands):


September 30, 2024	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Loans Past Due		Current		Total Amortized Cost		Loans Accounted for Under the Fair Value Option(1)		Total Loans
Cash, Securities, and Other	$	—	$	—	$	1,704	$	1,704	$	117,580	$	119,284	$	—	$	119,284
Consumer and Other	2		2		—		4		12,189		12,193		8,646		20,839
Construction and Development	—		—		—		—		300,270		300,270		—		300,270
1-4 Family Residential	3		—		1,115		1,118		921,607		922,725		—		922,725
Non-Owner Occupied CRE	—		—		—		—		605,323		605,323		—		605,323
Owner Occupied CRE	—		—		—		—		174,928		174,928		—		174,928
Commercial and Industrial	2,020		10,272		790		13,082		226,748		239,830		—		239,830
Total	$	2,025	$	10,274	$	3,609	$	15,908	$	2,358,645	$	2,374,553	$	8,646	$	2,383,199


December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Loans Past Due		Current		Total Amortized Cost		Loans Accounted for Under the Fair Value Option(1)		Total Loans
Cash, Securities, and Other	$	—	$	76	$	1,704	$	1,780	$	138,167	$	139,947	$	—	$	139,947
Consumer and Other	676		11		7,504		8,191		18,837		27,028		13,726		40,754
Construction and Development	—		1,500		—		1,500		344,016		345,516		—		345,516
1-4 Family Residential	1,093		—		2,722		3,815		924,150		927,965		—		927,965
Non-Owner Occupied CRE	—		—		—		—		543,692		543,692		—		543,692
Owner Occupied CRE	—		—		3,980		3,980		191,881		195,861		—		195,861
Commercial and Industrial	19,305		1,085		29,180		49,570		287,610		337,180		—		337,180
Total	$	21,074	$	2,672	$	45,090	$	68,836	$	2,448,353	$	2,517,189	$	13,726	$	2,530,915

(1)Refer to Note 12 – Fair Value for additional information on the measurement of loans accounted for under the fair value option.

Summary modified loans

The following table presents the amortized cost basis as of September 30, 2024 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the nine months ended September 30, 2024. For the three months ended September 30, 2024, there were no loan modifications made to borrowers experiencing financial difficulty. For the three and nine months ended September 30, 2023, the Company made protective advances of $0.0 million and $0.5 million to borrowers experiencing financial difficulty. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


(dollars in thousands)	Principal forgiveness		Interest rate reduction		Term extension		Combination: term extension and principal forgiveness		Combination: term extension and interest rate reduction		Total class of financing receivable





Commercial and Industrial	$	—	$	—	$	978	$	—	$	—	0.4	%
Total	$	—	$	—	$	978	$	—	$	—

The following table presents the amortized cost basis as of September 30, 2023 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the three and nine months ended September 30, 2023.


(dollars in thousands)	Principal forgiveness		Interest rate reduction		Term extension		Combination: term extension and principal forgiveness		Combination: term extension and interest rate reduction		Total class of financing receivable





Commercial and Industrial	$	—	$	—	$	—	$	185	$	—	0.1	%
Total	$	—	$	—	$	—	$	185	$	—

The following tables present the financial effect by type of modification made to borrowers experiencing financial difficulty during the periods noted:

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

(dollars in thousands)

Principal forgiveness

Weighted average interest rate reduction

Weighted average term extension

Principal forgiveness

Weighted average interest rate reduction

Weighted average term extension

Commercial and Industrial

—

5 months

Three Months Ended September 30, 2023

Nine Months Ended September 30, 2023

(dollars in thousands)

Principal forgiveness

Weighted average interest rate reduction

Weighted average term extension

Principal forgiveness

Weighted average interest rate reduction

Weighted average term extension

Commercial and Industrial

$185

—

2.8 years

$185

—

2.8 years

Schedule of recorded investment in non accrual loans by class

The following presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing by class as of the dates noted:


	As of September 30, 2024
(dollars in thousands)	Non-accrual loans with no ACL		Total non-accrual loans(1)		Loans past due over 89 days still accruing
Cash, Securities, and Other	$	1,704	$	1,704	$	—
Consumer and Other	—		—		—
Construction and Development	—		—		—
1-4 Family Residential	1,468		1,468		—
Non-Owner Occupied CRE	—		—		—
Owner Occupied CRE	—		—		—
Commercial and Industrial	11,063		11,242		—
Total	$	14,235	$	14,414	$	—

(1)As of September 30, 2024, the Company had an allowance of $36 thousand on non-accrual loans.


	As of December 31, 2023
(dollars in thousands)	Non-accrual loans with no ACL		Total non-accrual loans(1)		Loans past due over 89 days still accruing
Cash, Securities, and Other	$	1,704	$	1,704	$	—
Consumer and Other	4		7,504		—
Construction and Development	2,719		2,719		—
1-4 Family Residential	578		3,016		285
Owner Occupied CRE	—		3,980		—
Commercial and Industrial	2,355		31,893		—
Total	$	7,360	$	50,816	$	285

(2)As of December 31, 2023, the Company had an allowance of $3.8 million on non-performing loans.

The following presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses, by class of loans as of the date noted:


	As of September 30, 2024
	Collateral Dependent Loans
(dollars in thousands)	Secured by Real Estate		Secured by Cash and Securities		Secured by Other		Total
Cash, Securities, and Other	$	—	$	1,704	$	—	$	1,704
Consumer and Other	—		—		—		—
Construction and Development	—		—		—		—
1-4 Family Residential	1,468		—		—		1,468
Non-Owner Occupied CRE	—		—		—		—
Owner Occupied CRE	—		—		—		—
Commercial and Industrial	—		—		12,220		12,220
Total	$	1,468	$	1,704	$	12,220	$	15,392


	As of December 31, 2023
	Collateral Dependent Loans
(dollars in thousands)	Secured by Real Estate		Secured by Cash and Securities		Secured by Other		Total
Cash, Securities, and Other	$	—	$	1,704	$	—	$	1,704
Consumer and Other	—		—		7,500		7,500
Construction and Development	2,719		—		—		2,719
1-4 Family Residential	3,016		—		—		3,016

Owner Occupied CRE	3,980		—		—		3,980
Commercial and Industrial	—		—		31,893		31,893
Total	$	9,715	$	1,704	$	39,393	$	50,812

Schedule of activity in the Company's allowance for loan losses by portfolio class

The following table presents the activity in the allowance for credit losses by portfolio segment during the periods presented:


(dollars in thousands)	Cash, Securities and Other		Consumer and Other		Construction and Development		1-4 Family Residential		Non-Owner Occupied CRE		Owner Occupied CRE		Commercial and Industrial		Total
Changes in allowance for credit losses for the three months ended September 30, 2024:
Beginning balance	$	375	$	75	$	7,596	$	4,310	$	2,203	$	973	$	11,787	$	27,319

(Release) provision for credit losses	26		62		(2,262)		1,014		2,139		(282)		99		796
Charge-offs	—		(4)		—		—		—		—		(9,336)		(9,340)
Recoveries	—		4		—		1		—		—		16		21
Ending balance	$	401	$	137	$	5,334	$	5,325	$	4,342	$	691	$	2,566	$	18,796

Changes in allowance for credit losses for the nine months ended September 30, 2024:
Beginning balance	$	961	$	124	$	7,945	$	4,370	$	2,325	$	1,034	$	7,172	$	23,931

(Release) provision for credit losses	(560)		16		(2,611)		948		2,017		(343)		4,708		4,175
Charge-offs	—		(30)		—		—		—		—		(9,336)		(9,366)
Recoveries	—		27		—		7		—		—		22		56
Ending balance	$	401	$	137	$	5,334	$	5,325	$	4,342	$	691	$	2,566	$	18,796


(dollars in thousands)	Cash, Securities and Other		Consumer and Other		Construction and Development		1-4 Family Residential		Non-Owner Occupied CRE		Owner Occupied CRE		Commercial and Industrial		Total
Changes in allowance for credit losses for the three months ended September 30, 2023:
Beginning balance	$	1,311	$	137	$	7,496	$	3,579	$	2,495	$	1,182	$	5,844	$	22,044

(Release) provision for credit losses	(185)		(15)		405		38		(240)		(172)		1,490		1,321
Charge-offs	—		(12)		—		—		—		—		(186)		(198)
Recoveries	—		4		—		3		—		—		1		8
Ending balance	$	1,126	$	114	$	7,901	$	3,620	$	2,255	$	1,010	$	7,149	$	23,175

Changes in allowance for credit losses for the nine months ended September 30, 2023:
Beginning balance, prior to the adoption of ASU 2016-13	$	1,198	$	191	$	2,025	$	6,309	$	3,490	$	1,510	$	2,460	$	17,183
Impact of adopting ASU 2016-13	193		106		4,681		(2,808)		(689)		(104)		2,091		3,470
(Release) provision for credit losses	(265)		(160)		1,195		116		(546)		(396)		2,781		2,725
Charge-offs	—		(42)		—		—		—		—		(186)		(228)
Recoveries	—		19		—		3		—		—		3		25
Ending balance	$	1,126	$	114	$	7,901	$	3,620	$	2,255	$	1,010	$	7,149	$	23,175

Summary of recorded investment in the Company's loans by class and by credit quality indicator

The following tables present the amortized cost basis of loans by credit quality indicator, by class of financing receivable, and year of origination for term loans as of September 30, 2024 and December 31, 2023. For revolving lines of credit that converted to term loans, if the conversion involved a credit decision, such loans are included in the origination year in which the credit decision was made. If revolving lines of credit converted to term loans without a credit decision, such lines of credit are included in the “Revolving lines of credit converted to term” column in the following table (dollars in thousands):


	Term Loans Amortized Cost by Origination Year
September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Cash, Securities, and Other
Pass	$	12,252	$	6,158	$	3,426	$	13,708	$	4,914	$	13,859	$	63,263	$	117,580
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		1,704		1,704
Doubtful	—		—		—		—		—		—		—		—

Total Cash, Securities, and Other	$	12,252	$	6,158	$	3,426	$	13,708	$	4,914	$	13,859	$	64,967	$	119,284
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer and Other
Pass	—		19		1,584		369		425		572		9,175		12,144
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		49		49
Doubtful	—		—		—		—		—		—		—		—
Not rated(1)	—		—		7,302		1,206		82		56		—		8,646
Total Consumer and Other	$	—	$	19	$	8,886	$	1,575	$	507	$	628	$	9,224	$	20,839
Current year-to-date gross charge-offs	$	—	$	1	$	—	$	—	$	10	$	19	$	—	$	30
Construction and Development
Pass	$	36,075	$	53,010	$	195,294	$	1,028	$	9,396	$	—	$	1,182	$	295,985
Special mention	—		—		—		—		—		—		—		—
Substandard	469		3,816		—		—		—		—		—		4,285
Doubtful	—		—		—		—		—		—		—		—

Total Construction and Development	$	36,544	$	56,826	$	195,294	$	1,028	$	9,396	$	—	$	1,182	$	300,270
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 Family Residential
Pass	$	51,354	$	92,037	$	352,962	$	128,314	$	105,056	$	64,567	$	126,414	$	920,704
Special mention	—		—		—		—		—		—		—		—
Substandard	353		553		—		1,115		—		—		—		2,021
Doubtful	—		—		—		—		—		—		—		—

Total 1-4 Family Residential	$	51,707	$	92,590	$	352,962	$	129,429	$	105,056	$	64,567	$	126,414	$	922,725
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-Owner Occupied CRE
Pass	$	27,294	$	42,585	$	253,600	$	118,008	$	68,869	$	58,261	$	31,312	$	599,929
Special mention	—		—		—		—		4,898		—		—		4,898
Substandard	—		—		—		—		—		—		496		496
Doubtful	—		—		—		—		—		—		—		—

Total Non-Owner Occupied CRE	$	27,294	$	42,585	$	253,600	$	118,008	$	73,767	$	58,261	$	31,808	$	605,323
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Owner Occupied CRE
Pass	$	2,212	$	3,158	$	43,983	$	42,252	$	31,333	$	48,252	$	2,337	$	173,527
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		1,401		—		—		—		—		1,401
Doubtful	—		—		—		—		—		—		—		—

Total Owner Occupied CRE	$	2,212	$	3,158	$	45,384	$	42,252	$	31,333	$	48,252	$	2,337	$	174,928
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost by Origination Year
September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial
Pass	$	19,145	$	13,882	$	46,981	$	11,703	$	10,516	$	23,408	$	97,992	$	223,627
Special mention	—		—		—		—		—		—		484		484
Substandard	978		179		2,821		—		—		11,062		679		15,719
Doubtful	—		—		—		—		—		—		—		—

Total Commercial and Industrial	$	20,123	$	14,061	$	49,802	$	11,703	$	10,516	$	34,470	$	99,155	$	239,830
Current year-to-date gross charge-offs	$	—	$	298	$	—	$	6,935	$	2,103	$	—	$	—	$	9,336
Total pass	$	148,332	$	210,849	$	897,830	$	315,382	$	230,509	$	208,919	$	331,675	$	2,343,496
Total special mention	—		—		—		—		4,898		—		484		5,382
Total substandard	1,800		4,548		4,222		1,115		—		11,062		2,928		25,675
Total doubtful	—		—		—		—		—		—		—		—
Total not rated	—		—		7,302		1,206		82		56		—		8,646
Total	$	150,132	$	215,397	$	909,354	$	317,703	$	235,489	$	220,037	$	335,087	$	2,383,199

(1)Includes loans held for investment measured at fair value as of September 30, 2024. Includes fair value adjustments on loans held for investment accounted for under the fair value option.


	Term Loans Amortized Cost by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Cash, Securities, and Other
Pass	$	8,091	$	17,878	$	17,181	$	5,966	$	6,337	$	13,188	$	69,602	$	138,243
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		1,704		1,704
Doubtful	—		—		—		—		—		—		—		—

Total Cash, Securities, and Other	$	8,091	$	17,878	$	17,181	$	5,966	$	6,337	$	13,188	$	71,306	$	139,947
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer and Other
Pass	$	614	$	2,013	$	647	$	633	$	797	$	24	$	14,800	$	19,528
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		7,500		7,500
Doubtful	—		—		—		—		—		—		—		—
Not rated(1)	—		10,469		2,544		614		99		—		—		13,726
Total Consumer and Other	$	614	$	12,482	$	3,191	$	1,247	$	896	$	24	$	22,300	$	40,754
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	8	$	91	$	2	$	—	$	101
Construction and Development
Pass	$	32,509	$	231,103	$	42,796	$	21,615	$	—	$	—	$	431	$	328,454
Special mention	—		14,343		—		—		—		—		—		14,343
Substandard	2,719		—		—		—		—		—		—		2,719
Doubtful	—		—		—		—		—		—		—		—

Total Construction and Development	$	35,228	$	245,446	$	42,796	$	21,615	$	—	$	—	$	431	$	345,516
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 Family Residential
Pass	$	97,901	$	373,525	$	143,694	$	108,815	$	37,756	$	31,452	$	131,806	$	924,949
Special mention	—		—		—		—		—		—		—		—
Substandard	578		2,438		—		—		—		—		—		3,016
Doubtful	—		—		—		—		—		—		—		—

Total 1-4 Family Residential	$	98,479	$	375,963	$	143,694	$	108,815	$	37,756	$	31,452	$	131,806	$	927,965
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost by Origination Year
December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Owner Occupied CRE
Pass	$	42,799	$	197,122	$	125,726	$	75,026	$	24,411	$	53,056	$	20,553	$	538,693
Special mention	—		—		—		4,999		—		—		—		4,999
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—

Total Non-Owner Occupied CRE	$	42,799	$	197,122	$	125,726	$	80,025	$	24,411	$	53,056	$	20,553	$	543,692
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Owner Occupied CRE
Pass	$	3,229	$	46,751	$	44,805	$	37,957	$	5,555	$	51,259	$	2,325	$	191,881
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		3,980		—		—		—		—		3,980
Doubtful	—		—		—		—		—		—		—		—

Total Owner Occupied CRE	$	3,229	$	46,751	$	48,785	$	37,957	$	5,555	$	51,259	$	2,325	$	195,861
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Pass	$	38,497	$	59,612	$	15,430	$	13,457	$	6,430	$	16,068	$	152,782	$	302,276
Special mention	—		—		—		—		—		—		649		649
Substandard	1,618		—		29,355		1,674		—		920		688		34,255
Doubtful	—		—		—		—		—		—		—		—

Total Commercial and Industrial	$	40,115	$	59,612	$	44,785	$	15,131	$	6,430	$	16,988	$	154,119	$	337,180
Current year-to-date gross charge-offs	$	—	$	8,737	$	—	$	—	$	—	$	—	$	—	$	8,737
Total pass	$	223,640	$	928,004	$	390,279	$	263,469	$	81,286	$	165,047	$	392,299	$	2,444,024
Total special mention	—		14,343		—		4,999		—		—		649		19,991
Total substandard	4,915		2,438		33,335		1,674		—		920		9,892		53,174
Total doubtful	—		—		—		—		—		—		—		—
Total not rated	—		10,469		2,544		614		99		—		—		13,726
Total	$	228,555	$	955,254	$	426,158	$	270,756	$	81,385	$	165,967	$	402,840	$	2,530,915

(1)Includes loans held for investment measured at fair value as of December 31, 2023. Includes fair value adjustments on loans held for investment accounted for under the fair value option.

INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2024	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Debt securities pledged as collateral		$ 36,900	$ 45,100
Shareholder equity held by one issuer (as a percent)		10.00%	10.00%
Accrued interest receivable		$ 10,455	$ 11,428
Bank Technology Fund
Debt Securities, Available-for-sale [Line Items]
Contractual obligation				$ 6,000
Return of capital, received		200
Balance with SBIC included in other assets		2,300	2,000
Committed investments to be made in the future		3,700
Debt securities pledged as collateral		9,500	39,300
Bank Technology Fund \| Other Assets
Debt Securities, Available-for-sale [Line Items]
Contribution to committed investments		300	800
Return of capital, received			100
Small Business Investment Company ("SBIC")
Debt Securities, Available-for-sale [Line Items]
Contractual obligation		600
Small Business Investment Company ("SBIC") \| Other Assets
Debt Securities, Available-for-sale [Line Items]
Contribution to committed investments	$ 200	200
Balance with SBIC included in other assets		2,400	2,200
Held-to-Maturity Securities
Debt Securities, Available-for-sale [Line Items]
Accrued interest receivable		$ 500	$ 400

INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due within one year	$ 0
Due between one year and five years	4,312
Due between five years and ten years	19,407
Due after ten years	181
Securities (CMO and MBS)	52,916
Amortized Cost	76,816	$ 74,173
Fair Value
Due within one year	0
Due between one year and five years	3,970
Due between five years and ten years	16,781
Due after ten years	165
Securities (CMO and MBS)	49,910
Total	$ 70,826	$ 66,617

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Basis of Presentation: The condensed consolidated financial statements include the accounts of First Western Financial, Inc. ("FWFI"), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly-owned subsidiaries listed below (collectively referred to as the "Company," "we," "us," or "our"). FWFI is a bank holding company with financial holding company status registered with the Board of Governors of the Federal Reserve System. FWFI wholly owns the following subsidiary: First Western Trust Bank (the "Bank"). The Bank wholly owns First Western Merger Corporation ("Merger Corp"), which is therefore indirectly wholly owned by FWFI. RRI, LLC ("RRI"), which was wholly owned by the Bank, was dissolved on February 3, 2023. Ryder, Stilwell Inc. ("RSI"), which was wholly owned by FWFI, was dissolved on March 21, 2023. The Company provides a fully-integrated suite of wealth management services including: private banking, personal trust, investment management, mortgage loans, and institutional asset management services to individual and corporate clients principally in Colorado (metro Denver, Aspen, Boulder, Fort Collins, Loveland, and Vail Valley), Arizona (Phoenix and Scottsdale), California (Century City), Montana (Bozeman), and Wyoming (Jackson, Pinedale, Rock Springs and Cheyenne). The Company’s revenues are generated from its full range of product offerings as noted above, but principally from net interest income (the interest income earned on the Bank’s assets net of funding costs), fee-based wealth advisory, investment management, asset management and personal trust services, and net gains earned on mortgage loans. The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2023 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2023. In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of results that may be expected for the full year ending December 31, 2024. In preparing the condensed consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be significantly different from those estimates. The condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC. Consolidation: The Company’s policy is to consolidate all majority-owned subsidiaries in which it has a controlling financial interest and variable-interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Business Combinations and Divestitures: Business combinations are accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total consideration transferred in connection with the acquisition is allocated to the tangible and intangible assets acquired, liabilities assumed, and any non-controlling interest in the acquired entity based on fair values. Goodwill acquired in connection with business combinations represents the excess of consideration transferred over the net tangible and identifiable intangible assets acquired. Certain assumptions and estimates are used in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions or changes in government regulations. Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change include: the determination of the allowance for credit losses, the evaluation of goodwill impairment, and the fair value of certain financial instruments. Concentration of Credit Risk: Most of the Company’s lending activity is to clients located in and around metro Denver, Aspen, Fort Collins, Loveland, Boulder, and Vail, Colorado; Phoenix and Scottsdale, Arizona; Bozeman, Montana; and Jackson, Cheyenne, Pinedale, and Rock Springs, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. As of September 30, 2024 and December 31, 2023, 78.4% and 76.1%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. Allowance for Credit Losses (“ACL”) loans: The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The ACL excludes loans held for sale and loans accounted for under the fair value option. The Company elected to not measure an ACL for accrued interest receivables, as we write off applicable accrued interest receivable balances in a timely manner when a loan is placed on non-accrual status, in which any accrued but uncollected interest is reversed from current income. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Actual Company and regional peer historical credit loss experience provides the basis for the estimation of expected credit losses. The Company identified and grouped portfolio segments based on risk characteristics and underlying collateral. The call code for each financial asset type was assessed and, expanded for certain call codes into separate segments based on risk characteristics. The ACL for pooled loans are estimated using a discounted cash flow (“DCF”) methodology using the amortized cost basis (excluding interest) for all loans modeled within a performing pool of loans. The DCF analysis pairs loan-level term information, for example, maturity date, payment amount, interest rate, with top-down pool assumptions such as default rates, prepayment speeds, to produce individual expected cash flows for every instrument in the segment. The results are then aggregated to produce segment level results and reserve requirements for each segment based on similar risk characteristics. The quantitative DCF model also incorporates forward-looking macroeconomic information over a reasonable and supportable period of four quarters. Subsequent to the four quarter period, the Company reverts to its historical loss rate and historical prepayment and curtailment speeds on a straight-line basis over a four quarter reversion period. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. Annually the Company performs a rate study which updates the prepayment and curtailment rates used in the DCF model. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pooled loan evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Qualitative adjustments to historical loss data are made based on management’s assessment of the risks that may lead to a future credit loss or differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, changes in environmental and economic conditions, or other relevant factors. ACL - off-balance sheet credit exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the Provision for credit losses and is recorded in Other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The probability of funding is based on historical utilization statistics for unfunded loan commitments. The loss rates used are calculated using the same assumptions as the associated funded balance. ACL - Held-to-maturity (“HTM”) debt securities: HTM debt securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The majority of our held-to-maturity investment portfolio consists of securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. With respect to these securities, we consider the risk of credit loss to be zero and, therefore, we have elected the practical expedient to not record an ACL for these securities. The Company's non-government backed securities include private label CMO and MBS debt securities and corporate bonds. Private label refers to private institutions such as brokerage firms, banks, and home builders, that also securitize mortgages. Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management reviewed the collectability of CMO and MBS debt securities and corporate bonds taking into consideration factors such as the asset quality and delinquencies of the issuers. Modifications: On January 1, 2023, the Company adopted FASB ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures, which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Accounting Standard Codification(“ASC”) Subtopic 310-40, and enhanced the disclosure requirements for certain loan refinancing and restructures by creditors when a borrower is experiencing financial difficulty. The company identifies modifications to borrowers experiencing financial difficulty as a loan that has been modified for the borrower that is experiencing financial difficulties. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, going concern, and other indicators of inability to meet obligations. This list does not include all potential indicators of a borrower’s financial difficulties. The allowance for credit losses on loans that are considered modifications to borrowers experiencing financial difficulty are measured using the same method as all other loans held for investment. Prior to the adoption of this guidance, restructured loans were considered to be a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would have not otherwise considered. The allowance for credit losses on a TDR were measured using the same method as all other loans held for investment. Derivatives: At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness of a hedge. These three types are as follows: •Fair Value Hedge: a hedge of the fair value of a recognized asset or liability or an unrecognized firm commitment. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. •Cash Flow Hedge: a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transactions affect earnings. •Stand-alone derivative: an instrument with no hedging designation. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement in the same line as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitments is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All of the contracts to which the Company is a party settle monthly or quarterly. In addition, the Company obtains collateral above certain thresholds of the fair value of its derivatives for each dealer counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business. Mortgage Loans Held for Sale: Mortgage loans held for sale generally consist of long-term, fixed rate, conforming, single-family residential real estate loans intended to be sold on the secondary market. Mortgage loans held for sale are recorded at fair value and are typically sold with servicing rights released. Changes in the fair values of mortgage loans held for sale are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. Fair value elections are made at the time of origination based on the Company’s fair value election policy. Mortgage Banking Derivatives: Commitments to fund mortgage loans, interest rate lock commitments ("IRLC"), and forward sale commitments ("FSC"), to be sold in the secondary market for the future delivery of these loans are accounted for as free standing derivatives. The fair value of the IRLC is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. The Company sells mortgage loans to third party investors at the best execution available which includes best efforts, mandatory, and bulk bids. Loans committed under mandatory or bulk bid are considered FSC and qualify as financial derivatives. Fair values of these mortgage derivatives are estimated based on the change in the loan pricing from the date of the commitment to the period end date for any unsettled commitments. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. In order to manage the interest rate risk on our uncommitted IRLC and mortgage loans held for sale pipeline, the Company enters into mortgage derivative financial instruments called To Be Announced ("TBA"), which we refer to as forward commitments. TBA agreements are forward contracts to purchase mortgage backed securities ("MBS") that will be issued by a US Government Sponsored Enterprise. The Bank purchases or sells these derivatives to offset the changes in value of our mortgage loans held for sale and IRLC adjusted pipeline where we have exposure to interest rate volatility. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. Other Real Estate Owned (“OREO”): Property acquired by foreclosure or deed-in-lieu of foreclosure is initially recorded at fair value less estimated selling cost at acquisition date, establishing a new cost basis. The Company is considered to have received physical possession of real estate property collateralizing a loan upon the occurrence of either the Company obtaining legal title to the property or the borrower conveying all interest in the property through a deed-in-lieu or similar agreement. Fair value is determined as the amount that could be reasonably expected in a current sale between a willing buyer and a willing seller in an orderly transaction between market participants at the measurement date. Subsequent to the initial acquisition, if the fair value of the asset, less estimated selling cost, is less than the cost of the property, a loss is recognized within non-interest expense and the asset carrying value is reduced. Gain or loss on disposition of OREO is recorded in non-interest income. In determining the fair value of the properties on the date of transfer and any subsequent estimated losses of net realizable value, the fair value of other real estate acquired by foreclosure or deed-in-lieu of foreclosure is determined primarily based upon appraisal or evaluation of the underlying property value. Revenue Recognition: In accordance with the Financial Accounting Standards Board ("FASB"), Revenue Contracts with Customers ("Topic 606"), trust and investment management fees are earned by providing trust and investment services to customers. The Company’s performance obligation under these contracts is satisfied over time as the services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the corresponding fee rate based on the terms of the contract. No performance-based incentive fees were earned with respect to investment management contracts during the three and nine months ended September 30, 2024 and 2023. Receivables are recorded on the Condensed Consolidated Balance Sheets in the Accounts receivable line item. Income related to trust and investment management fees, bank fees, and risk management and insurance fees on the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 are considered in scope of Topic 606. Transition of LIBOR to an Alternative Reference Rate: In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), announced that after 2022 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee and on February 27, 2023 the Federal Reserve Board adopted a final rule establishing the Secured Overnight Financing Rate ("SOFR") as the replacement rate index for LIBOR. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. On December 21, 2022, the FASB issued Accounting Standards Update (ASU) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. On June 30, 2023, LIBOR ceased to be a representative index rate. ASU 2022-06 extends the period of time financial statement preparers can utilize the reference rate reform relief guidance through December 31, 2024. In general, the transition away from LIBOR may result in increased market risk, credit risk, operational risk, and business risk for the Company. The Company completed a LIBOR transition plan, which addressed governance, risk management, legal, operational, systems, fallback language, and other aspects of planning. The Company no longer originates LIBOR indexed loans and as of December 31, 2023, all loans indexed to LIBOR had been converted to the new index. Consumer indexed loans are being managed in accordance with Interagency Guidance. Bank Term Funding Program: On March 12, 2023, in response to two large bank failures, the Federal Reserve Board announced it would make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of depositors. The additional funding has been made available through the creation of a new Bank Term Funding Program (“BTFP”), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets valued at par as collateral. The BTFP is meant to be an additional resource of liquidity against high-quality securities, eliminating an institutions need to quickly sell those securities in times of stress. See Note 7 - Borrowings for details on the Company’s borrowings. Reclassifications: Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income available to common shareholders or total shareholders’ equity. Recently adopted accounting pronouncements: The Company has not adopted any additional accounting pronouncements since the end of the Company's fiscal year ended December 31, 2023. Recently issued accounting pronouncements, not yet adopted: The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2023. On November 27, 2023, the FASB issued ASU 2023-07 Segment Reporting - Improvements to Reportable Segment Disclosures, which provides additional transparency into a company's reportable segments’ significant expenses on an interim and annual basis. This guidance is effective for companies with fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Companies must adopt the changes to the segment reporting guidance on a retrospective basis. Early adoption is permitted. The Company expects to adopt this standard beginning with fiscal year ended December 31, 2024. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact. On December 14, 2023, the FASB issued ASU 2023-09 Income Taxes - Improvements to Income Tax Disclosures, which enhances a company's income tax disclosures to include additional information related to rate reconciliations and income taxes paid. This guidance is effective for companies with fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company expects to adopt this standard beginning January 1, 2025. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

FAIR VALUE - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
FAIR VALUE - Narrative (Details) $ in Thousands	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) loan
Summary of assets measured on a recurring and nonrecurring basis
Transfer of loans held for investment to loans held for sale					$ 39,200
Value of loans sold					$ 40,800
Number of Loans, Non-accruals, fair value \| loan	56		56		98
Charge-offs	$ 9,340	$ 198	$ 9,366	$ 228
Loans held at fair value	473		473		$ 0
Net charge-offs on loans accounted for under the fair value option	(300)	(400)	(1,000)	(1,400)
Loans held for sale
Summary of assets measured on a recurring and nonrecurring basis
Loans transferred from held for investment	$ 993	$ 0	$ 3,722	$ 39,221

SHAREHOLDERS' EQUITY - Common stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 13, 2024	Dec. 31, 2023	Jan. 06, 2022
Class of Stock [Line Items]
Common Stock, par value (in dollars per share)	$ 0		$ 0			$ 0
Authorized share repurchase (in shares)					200,000
Maximum offering price							$ 100,000
Recognized compensation expense	$ 46		$ 700
Repurchase of common stock (in shares)	(5,501)		(5,501)
Remaining shares available for repurchase under the plan (in shares)	194,499		194,499
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Recognized compensation expense		$ 100		$ 400
Shares Common Stock
Class of Stock [Line Items]
Common Stock, par value (in dollars per share)	$ 0		$ 0
Number of votes per each share			one

FAIR VALUE - Rollforward of changes in fair value of loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Mortgage loans held for sale
Guarantee asset
Balance at beginning of period	$ 26,856	$ 19,746	$ 7,254	$ 8,839
Loans transferred from held for investment	97,878	66,586	270,136	217,774
Fair value changes	(346)	(163)	16	(35)
Sales	(112,033)	(74,064)	(265,034)	(214,467)
Settlements	(31)	0	(48)	(6)
Balance at end of period	12,324	12,105	12,324	12,105
Loans held for sale
Guarantee asset
Balance at beginning of period	0	0	0	1,965
Loans transferred from held for investment	993	0	3,722	39,221
Fair value changes	0	0	0	(20)
Sales	(520)	0	(3,249)	(40,761)
Settlements	0	0	0	(405)
Balance at end of period	473	0	473	0
Loan Held for Investment
Guarantee asset
Balance at beginning of period	10,190	17,523	13,726	23,321
Fair value changes	66	110	166	(547)
Settlements	(1,311)	(1,806)	(4,230)	(7,101)
Loans acquired	0	0	0	1,162
Net charge-offs	(299)	(363)	(1,016)	(1,371)
Balance at end of period	$ 8,646	$ 15,464	$ 8,646	$ 15,464

EARNINGS PER COMMON SHARE - Schedule of potentially dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
EARNINGS PER COMMON SHARE
Total potentially dilutive securities (in shares)	169,197	295,252	210,090	256,953
Stock options
EARNINGS PER COMMON SHARE
Total potentially dilutive securities (in shares)	81,761	149,725	99,378	134,307
Time Vesting Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities (in shares)	87,436	136,437	107,682	116,586
Financial Performance Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities (in shares)	0	9,090	3,030	6,060

LOW-INCOME HOUSING TAX CREDIT INVESTMENT (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jun. 26, 2023
Schedule of Investments [Line Items]
Unfunded commitments	$ 4,300,000		$ 4,300,000		$ 4,900,000
Amortization expense	200,000
Tax credits and other benefits	200,000	$ 100,000	500,000	$ 300,000
Impairment losses	0			0
Income Tax Expense (Benefit).
Schedule of Investments [Line Items]
Amortization expense	200,000	$ 200,000	600,000	$ 300,000
Other Assets
Schedule of Investments [Line Items]
Investment balance	$ 3,100,000		$ 3,100,000			$ 3,000,000

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Investments, Debt and Equity Securities [Abstract]

DERIVATIVES - Schedule of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value
Derivative Asset	$ 1,441	$ 763
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Total included in other liabilities	$ 1,712	$ 740
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 50,000	$ 50,000
Designated as Hedging Instrument \| Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	50,000	50,000
Fair Value
Derivative Asset		77
Total included in other liabilities	226
Not Designated as Hedging Instrument \| Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	50,586	30,325
Fair Value
Derivative Asset	1,441	686
Total included in other liabilities	$ 1,486	$ 740

INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of held-to-maturity securities


September 30, 2024	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	246	$	2	$	—	$	248	$	—

Corporate bonds	23,654		—		(2,986)		20,668		(71)
Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS") – residential	31,605		28		(2,437)		29,196		—
Federal National Mortgage Association ("FNMA") MBS – residential	12,507		112		(345)		12,274		—
Government collateralized mortgage obligations ("GMO") and MBS – commercial	5,205		10		(245)		4,970		—
Corporate collateralized mortgage obligations ("CMO") and MBS	3,599		—		(129)		3,470		—
Total debt securities held-to-maturity	$	76,816	$	152	$	(6,142)	$	70,826	$	(71)


December 31, 2023	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	253	$	—	$	(11)	$	242	$	—

Corporate bonds	23,687		—		(3,020)		20,667		(71)
GNMA mortgage-backed securities – residential	34,579		—		(3,410)		31,169		—
FNMA mortgage-backed securities – residential	6,035		—		(509)		5,526		—
Government GMO and MBS – commercial	5,836		9		(377)		5,468		—
Corporate CMO and MBS	3,783		—		(238)		3,545		—
Total debt securities held-to-maturity	$	74,173	$	9	$	(7,565)	$	66,617	$	(71)

Summary of the amortized cost and estimated fair value of held to maturity securities


September 30, 2024	Amortized Cost		Fair Value
Due within one year	$	—	$	—
Due between one year and five years	4,312		3,970
Due between five years and ten years	19,407		16,781
Due after ten years	181		165
Securities (CMO and MBS)	52,916		49,910
Total	$	76,816	$	70,826

Allowance for credit losses for HTM securities

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the periods noted:


	Three Months Ended September 30,
	2024				2023
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	71	$	—

Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—


	Nine Months Ended September 30,
	2024				2023
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	—	$	—
Impact of ASU 2016-13 adoption	—		—		71		—
Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—

FAIR VALUE - Summary of information about the fair value carrying amount and unpaid principal outstanding of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Total Loans
Fair Value Carrying Amount	$ 21,443	$ 20,980
Unpaid Principal Balance	21,576	21,235
Difference	(133)	(255)
Non Accruals
Fair Value Carrying Amount	626	210
Unpaid Principal Balance	752	220
Difference	(126)	(10)
90 Days or More Past Due
Fair Value Carrying Amount	626	210
Unpaid Principal Balance	752	220
Difference	(126)	(10)
Mortgage loans held for sale
Total Loans
Fair Value Carrying Amount	12,324	7,254
Unpaid Principal Balance	12,099	7,106
Difference	225	148
Loans held for sale
Total Loans
Fair Value Carrying Amount	473
Unpaid Principal Balance	594
Difference	(121)
Non Accruals
Fair Value Carrying Amount	473
Unpaid Principal Balance	594
Difference	(121)
90 Days or More Past Due
Fair Value Carrying Amount	473
Unpaid Principal Balance	594
Difference	(121)
Loans held for investment
Total Loans
Fair Value Carrying Amount	8,646	13,726
Unpaid Principal Balance	8,883	14,129
Difference	(237)	(403)
Non Accruals
Fair Value Carrying Amount	153	210
Unpaid Principal Balance	158	220
Difference	(5)	(10)
90 Days or More Past Due
Fair Value Carrying Amount	153	210
Unpaid Principal Balance	158	220
Difference	$ (5)	$ (10)

FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Guarantee asset
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net income available for common shareholders	Net income available for common shareholders	Net income available for common shareholders	Net income available for common shareholders
Derivative Asset	$ 1,441		$ 1,441		$ 763
Fair Value, Recurring \| Forward commitments and FSC
Guarantee asset
Derivative Asset	85		85		7
Fair Value, Recurring \| IRLC, net
Guarantee asset
Derivative Asset	1,078		1,078		345
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Loans Held at Fair Value
Guarantee asset
Balance at beginning of period	10,190	$ 17,523	13,726	$ 23,321
Loans acquired				1,162
Gains/(losses) in net income, net	66	110	166	(547)
Settlements	(1,311)	(1,806)	(4,230)	(7,101)
Balance at end of period	8,646	15,464	8,646	15,464
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Net Charge Off	(299)	(363)	(1,016)	(1,371)
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Forward commitments and FSC
Guarantee asset
Derivative Asset	0		0		0
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Guarantee Asset
Guarantee asset
Balance at beginning of period	228	166	189	143
Loans transferred from held for investment	21	6	68	20
Gains/(losses) in net income, net	39	(8)	50	11
Settlements	(18)	(6)	(37)	(16)
Balance at end of period	270	158	270	158
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| IRLC, net
Guarantee asset
Balance at beginning of period	912	453	345	229
Loans acquired	1,078	312	2,803	1,652
Loans transferred from held for investment	1,345	606	3,458	2,784
Gains/(losses) in net income, net	433	160	1,388	1,222
Balance at end of period	1,078	319	1,078	319
Derivative Asset	1,078		1,078		345
Significant Unobservable Inputs (Level 3) \| Fair Value, Recurring \| Equity Warrants
Guarantee asset
Balance at beginning of period	795	825	795	825
Balance at end of period	795	$ 825	795	$ 825
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Recurring \| Forward commitments and FSC
Guarantee asset
Derivative Asset	0		0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Fair Value, Recurring \| IRLC, net
Guarantee asset
Derivative Asset	0		0		0
Significant Other Observable Inputs (Level 2) \| Fair Value, Recurring \| Forward commitments and FSC
Guarantee asset
Derivative Asset	85		85		7
Significant Other Observable Inputs (Level 2) \| Fair Value, Recurring \| IRLC, net
Guarantee asset
Derivative Asset	$ 0		$ 0		$ 0

FAIR VALUE

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:


Level 1:			Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2:			Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3:			Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Recurring Fair Value

Equity Securities: Fair value of equity securities represents the market value of mutual funds based on quoted market prices (Level 1) and the value of stock held in other companies, which is based on recent market transactions or quoted rates that are not actively traded (Level 2).

Equity Warrants: Fair value of equity warrants of private companies are priced using a Black-Scholes option pricing model to estimate the asset fair value by using strike prices, option expiration dates, risk-free interest rates, and option volatility assumptions (Level 3).

Guarantee Asset and Liability: The guarantee asset represents the fair value of the consideration received in exchange for the credit enhancement fee. The guarantee liability represents a financial guarantee to cover the second layer of any losses on loans sold to FHLB under the MPF 125 loan sales agreement. The guarantee liability value on day one is equivalent to the guarantee asset fair value, which is the consideration for the credit enhancement fee paid over the life of the loans. The liability is then carried at amortized cost. Significant inputs in the valuation analysis for the asset are Level 3, due to the nature of this asset and the lack of market quotes. The fair value of the guarantee asset is determined using a discounted cash flow model, for which significant unobservable inputs include assumed future prepayment rates ("CPR") and market discount rate (Level 3). An increase in prepayment rates or discount rate would generally reduce the estimated fair value of the guarantee asset.

Derivatives: Derivatives include our swap derivatives, which are compromised of cash flow hedges and derivatives not designated as hedges. The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Mortgage Related Derivatives: Mortgage related derivatives include our IRLC, FSC, and the forward commitments on our loans held for sale pipeline. The fair value estimate of our IRLC is based on valuation models using market data from secondary market loan sales and direct contacts with third party investors as of the measurement date and pull through assumptions (Level 3). The FSC fair value estimate reflects the potential pair off fee associated with mandatory trades and is estimated by using a market differential and pair off penalty assessed by the investor (Level 3). The fair value estimate of the forward commitments is based on market prices of similar securities to the underlying MBS (Level 2).

Loans Held at Fair Value: The fair value of loans held for investment are typically determined based on discounted cash flow analysis using market-based interest rate spreads. Discounted cash flow analyses are adjusted, as appropriate, to reflect current market conditions and borrower specific credit risk. Due to the nature of the valuation inputs, loans held for investment are classified within Level 3 of the valuation hierarchy.

Mortgage Loans Held for Sale: The fair value of mortgage loans held for sale is estimated based upon quotes from third party investors for similar assets resulting in a Level 2 classification.

Loans Held for Sale: The fair value of loans held for sale is determined using actual quoted commitments from third party investors resulting in Level 1 classification. Where commitments are not yet available, fair value is estimated based on quotes for similar assets resulting in Level 2 classification.

The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands):


September 30, 2024	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Reported Balance
Financial Assets
Mortgage loans held for sale	$	—	$	12,324	$	—	$	12,324
Loans held for sale	$	—	$	473	$	—	$	473
Loans held at fair value	$	—	$	—	$	8,646	$	8,646
Forward commitments and FSC	$	—	$	85	$	—	$	85
Equity securities	$	649	$	122	$	—	$	771
Guarantee asset	$	—	$	—	$	270	$	270
IRLC, net	$	—	$	—	$	1,078	$	1,078
Equity warrants	$	—	$	—	$	795	$	795
Swap derivative assets	$	—	$	1,441	$	—	$	1,441
Financial Liabilities
Forward commitments and FSC	$	—	$	112	$	1	$	113
Swap derivative liabilities	$	—	$	1,712	$	—	$	1,712


December 31, 2023	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Reported Balance
Financial Assets
Mortgage loans held for sale	$	—	$	7,254	$	—	$	7,254
Loans held at fair value	$	—	$	—	$	13,726	$	13,726
Forward commitments and FSC	$	—	$	7	$	—	$	7
Equity securities	$	636	$	122	$	—	$	758
Guarantee asset	$	—	$	—	$	189	$	189
IRLC, net	$	—	$	—	$	345	$	345
Equity warrants	$	—	$	—	$	795	$	795
Swap derivative asset	$	—	$	763	$	—	$	763
Financial Liabilities
Forward commitments and FSC	$	—	$	358	$	—	$	358
Swap derivative liabilities	$	—	$	740	$	—	$	740

There were no transfers between levels during the nine months ended September 30, 2024 or year ended December 31, 2023.

As of September 30, 2024, equity securities, equity warrants, IRLC, and guarantee assets have been recorded at fair value within the Other assets line item in the Condensed Consolidated Balance Sheets. All changes are recorded in Non-interest income in the Condensed Consolidated Statements of Income.

Fair Value Option

The Company has elected to account for certain purchased whole loans held for investment under the fair value option in order to align the accounting presentation with the Company’s viewpoint of the economics of the loans. Interest income on loans held for investment accounted for under the fair value option is recognized within Interest and dividend income in the accompanying Condensed Consolidated Statements of Income. Not electing fair value generally results in a larger discount being recorded on the date of the loan purchase. The discount is subsequently accreted into interest income over the underlying loan’s remaining term using the effective interest method. Additionally, management has elected the fair value option for mortgage loans originated and held for sale.

During the three months ended September 30, 2024, the Company reclassified $1.0 million of loans held for investment to loans held for sale. During the nine months ended September 30, 2024, the Company reclassified $3.7 million of loans held for investment to loans held for sale. During the year ended December 31, 2023, the Company reclassified $39.2 million of loans held for investment to loans held for sale. The transfers occurred at the point in time the Company decided to sell the loans. During the year ended December 31, 2023, a total of $40.8 million reclassified loans held for sale were sold. As of September 30, 2024 and December 31, 2023, there were $0.5 million and $0.0 million of loans held for sale, respectively.

As of September 30, 2024, there were 56 loans totaling $0.2 million, accounted for under the fair value option that were on non-accrual. As of December 31, 2023, there were 98 loans totaling $0.2 million, accounted for under the fair value option that were on non-accrual. During the three months ended September 30, 2024 and 2023, the Company recorded net charge-offs of $0.3 million and $0.4 million, respectively, on loans accounted for under the fair value option to Net gain/(loss) on loans accounted for under the fair value option on the Condensed Consolidated Statements of Income. During the nine months ended September 30, 2024 and 2023, the Company recorded net charge-offs of $1.0 million and $1.4 million, respectively, on loans accounted for under the fair value option to Net gain/(loss) on loans accounted for under the fair value option on the condensed consolidated statements of income.


	September 30, 2024
	Total Loans						Non Accruals						90 Days or More Past Due
	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	12,324	$	12,099	$	225	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for sale	473		594		(121)		473		594		(121)		473		594		(121)
Loans held for investment	8,646		8,883		(237)		153		158		(5)		153		158		(5)
	$	21,443	$	21,576	$	(133)	$	626	$	752	$	(126)	$	626	$	752	$	(126)


	December 31, 2023
	Total Loans						Non Accruals						90 Days or More Past Due
	Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference		Fair Value Carrying Amount		Unpaid Principal Balance		Difference
Mortgage loans held for sale	$	7,254	$	7,106	$	148	$	—	$	—	$	—	$	—	$	—	$	—

Loans held for investment	13,726		14,129		(403)		210		220		(10)		210		220		(10)
	$	20,980	$	21,235	$	(255)	$	210	$	220	$	(10)	$	210	$	220	$	(10)

The following table presents the changes in fair value of loans accounted for under the fair value option as of the dates noted:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
Mortgage loans held for sale	$	(346)	$	(163)	$	16	$	(35)
Loans held for sale	—		—		—		(20)
Loans held for investment	66		110		166		(547)
	$	(280)	$	(53)	$	182	$	(602)

The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage loans held for sale	2024		2023		2024		2023
Balance at beginning of period	$	26,856	$	19,746	$	7,254	$	8,839
Loans originated	97,878		66,586		270,136		217,774
Fair value changes	(346)		(163)		16		(35)
Sales	(112,033)		(74,064)		(265,034)		(214,467)
Settlements	(31)		—		(48)		(6)
Balance at end of period	$	12,324	$	12,105	$	12,324	$	12,105


	Three Months Ended September 30,				Nine Months Ended September 30,
Loans held for sale	2024		2023		2024		2023
Balance at beginning of period	$	—	$	—	$	—	$	1,965
Loans transferred from held for investment	993		—		3,722		39,221
Fair value changes	—		—		—		(20)
Sales	(520)		—		(3,249)		(40,761)
Settlements	—		—		—		(405)
Balance at end of period	$	473	$	—	$	473	$	—


	Three Months Ended September 30,				Nine Months Ended September 30,
Loans held for investment, fair value option	2024		2023		2024		2023
Balance at beginning of period	$	10,190	$	17,523	$	13,726	$	23,321
Loans acquired	—		—		—		1,162
Fair value changes	66		110		166		(547)
Net charge-offs	(299)		(363)		(1,016)		(1,371)
Settlements	(1,311)		(1,806)		(4,230)		(7,101)
Balance at end of period	$	8,646	$	15,464	$	8,646	$	15,464

Level 3 Analysis

The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands):


Three Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	10,190	$	228	$	912	$	795
Acquisitions	—		—		1,078		—
Originations	—		21		(1,345)		—

Gains/(losses) in net income, net	66		39		433		—
Net charge-offs	(299)		—		—		—
Settlements	(1,311)		(18)		—		—
Ending balance	$	8,646	$	270	$	1,078	$	795


Three Months Ended September 30, 2023	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	17,523	$	166	$	453	$	825
Acquisitions	—		—		312		—
Originations	—		6		(606)		—
Gains/(losses) in net income, net	110		(8)		160		—
Net charge-offs	(363)		—		—		—
Settlements	(1,806)		(6)		—		—
Ending balance	$	15,464	$	158	$	319	$	825


Nine Months Ended September 30, 2024	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	13,726	$	189	$	345	$	795
Acquisitions	—		—		2,803		—
Originations	—		68		(3,458)		—

Gains/(losses) in net income, net	166		50		1,388		—


Net charge-offs	(1,016)		—		—		—
Settlements	(4,230)		(37)		—		—
Ending balance	$	8,646	$	270	$	1,078	$	795


Nine Months Ended September 30, 2023	Loans Held at Fair Value		Guarantee Asset		IRLC		Equity Warrants
Beginning balance	$	23,321	$	143	$	229	$	825
Acquisitions	1,162		—		1,652		—
Originations	—		20		(2,784)		—
Gains/(losses) in net income, net	(547)		11		1,222		—


Net charge-offs	(1,371)		—		—		—
Settlements	(7,101)		(16)		—		—
Ending balance	$	15,464	$	158	$	319	$	825

Nonrecurring Fair Value

Other Real Estate Owned (“OREO”): Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. They are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than on an annual basis. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. OREO is evaluated quarterly for additional impairment and adjusted accordingly.

Collateral Dependent Loans, net of ACL: The fair value of collateral dependent loans individually analyzed and not included in the pooled loan analysis under the ACL is generally based on recent appraisals and the value of any credit enhancements associated with the loan. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. Collateral dependent loans are evaluated monthly and adjusted accordingly if needed.

Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics.

The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted:

Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2024

(dollars in thousands)

Fair Value

Valuation
Technique

Significant
Unobservable Input

Range
(Weighted Average)

Recurring fair value

Loans held for investment at fair value

8,646

Discounted cash flow

Discount rate

8% (8%)

Guarantee asset

270

Discounted cash flow

Discount rate
Prepayment rate

5% (5%)

8.5% (8.5%)

IRLC, net

1,078

Best execution model

Pull through

66% to 100%

(84%)

Equity warrants

795

Black-Scholes option pricing model

Volatility
Risk-free interest rate
Remaining life

23.0% to 59.6% (30.4%)

4.06% (4.06%)

0 to 1.25 years

Nonrecurring fair value

OREO:

1-4 Family Residential

11,421

Appraisal value

Commission, cost to sell, closing costs

5% (5.0 %)

Commercial and Industrial

25,615

Appraisal value

Commission, cost to sell, closing costs

6.0% (6.0%)

Collateral dependent loans, net of ACL:

Commercial and Industrial

691

Sales Comparison-Market Value Approach

Market Rate Adjustments

11% (11%)

Commercial and Industrial

144

Sales comparison, Market approach - guideline transaction method

Loss given default

8% to 62%

(42%)

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023

(dollars in thousands)

Fair Value

Valuation
Technique

Significant
Unobservable Input

Range
(Weighted Average)

Recurring fair value

Loans held for investment at fair value

13,726

Discounted cash flow

Discount rate

7% to 8% (8%)

Guarantee asset

189

Discounted cash flow

Discount rate
Prepayment rate

5% (5%)

IRLC, net

345

Best execution model

Pull through

48% to 100% (86%)

Equity warrants

795

Black-Scholes option pricing model

Volatility
Risk-free interest rate
Remaining life

20.1% to 23.0% (22.4%)

4.62% (4.62%)

2.00 to 2.03 years

Nonrecurring fair value

Collateral dependent loans:

Consumer and Other

7,500

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

1-4 Family Residential

2,438

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Commercial and Industrial

24,791

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Commercial and Industrial

148

Sales comparison,
Market approach –
guideline transaction
method

Loss given default

14% to 62% (20%)

Commercial and Industrial

799

Sales Comparison-Market Value Approach

Market rate adjustments

21% (11%)

Owner Occupied CRE

3,980

Sales Comparison-Market Value Approach

Market rate adjustments

46% (8%)

Estimated Fair Value of Other Financial Instruments

The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands):


	Carrying Amount		Fair Value Measurements Using:
September 30, 2024			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	276,222	$	276,222	$	—	$	—
Held-to-maturity securities, net of ACL	76,745		247		62,829		7,750
Loans, net(1)	2,355,757		—		—		2,286,056
Accrued interest receivable	10,455		10,455		—		—
Liabilities:
Term deposits(2)	533,452		480,413		—		54,016
Non-term deposits	1,969,602		1,969,602		—		—
Borrowings:

FHLB borrowings – floating rate	50,000		—		49,993		—
Federal Reserve borrowings – fixed rate	12,373		2,373		9,979		—
Subordinated notes – fixed-to-floating rate	52,508		—		—		47,727
Accrued interest payable	3,339		3,339		—		—


	Carrying Amount		Fair Value Measurements Using:
December 31, 2023			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	254,442	$	254,442	$	—	$	—
Held-to-maturity securities, net of ACL	74,102		242		58,231		8,144
Loans, net(1)	2,493,258		—		—		2,395,468
Accrued interest receivable	11,428		11,428		—		—
Liabilities:
Term deposits(2)	496,452		414,613		—		82,564
Non-term deposits	2,032,587		2,032,587		—		—
Borrowings:
FHLB borrowings – fixed rate	41,175		—		41,372		—
FHLB borrowings – floating rate	50,000		—		49,986		—
Federal Reserve borrowings – fixed rate	34,536		3,539		30,936		—
Subordinated notes – fixed-to-floating rate	52,340		—		—		48,228
Accrued interest payable	3,793		3,793		—		—

(1) Excludes loans accounted for under the fair value option of $8.6 million and $13.7 million as of September 30, 2024 and December 31, 2023, respectively, as these are carried at fair value.

(2) Term deposits due within one year totaling $480.4 million and $414.6 million as of September 30, 2024 and December 31, 2023, respectively, are classified under Level 1 fair value measurement.

The fair value estimates presented and discussed above are based on pertinent information available to management as of the dates specified. The estimated fair value amounts are based on the exit price notion set forth by ASU 2016-01. Although management is not aware of any factors that would significantly affect the estimated fair values, such amounts have not been comprehensively revalued for purposes of these condensed consolidated financial statements since the balance sheet dates. Therefore, current estimates of fair value may differ significantly from the amounts presented herein.

The methods and assumptions, not previously presented, used to estimate fair values are described as follows.

Cash and Cash Equivalents and Restricted Cash: The carrying amounts of cash and cash equivalents and restricted cash approximate fair values as maturities are less than 90 days and balances are generally in accounts bearing current market interest rates.

Held-to-maturity securities: The fair values for held-to-maturity investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities is not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Loans, net: The fair values for all fixed-rate and variable-rate performing loans were estimated using the income approach and by discounting the projected cash flows of such loans. Principal and interest cash flows were projected based on the contractual terms of the loans, including maturity, contractual amortization and adjustments for prepayments and expected losses, where appropriate. A discount rate was developed based on the relative risk of the cash flows, considering the loan type, maturity and a required return on capital.

Accrued Interest Receivable and Payable: The carrying amounts of accrued interest approximate fair value due to their short-term nature.

Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting dates. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Fixed and Floating Rate Borrowings: Borrowings with fixed rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments and borrowers with similar credit ratings.

Fixed-to-Floating Rate Borrowings: Borrowings with fixed-to-floating rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments and assume the Company will redeem the instrument prior to the first interest rate reset date.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Schedule of borrowings from FHLB Topeka

BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

The following presents the Company’s maturities of FHLB and FRB borrowings (dollars in thousands):


Maturity Date	Rate %		September 30, 2024		December 31, 2023
January 1, 2024(1)	5.55	%	$	—	$	41,175
March 27, 2024	4.78		—		30,997
March 29, 2024	5.60		—		50,000

October 1, 2024	4.99		50,000		—
January 10, 2025	4.87		10,000		—
			$	60,000	$	122,172

______________________________________

(1)The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew.

Schedule of debt

The following presents the Company’s subordinated notes included in the Subordinated notes line of the Condensed Consolidated Balance Sheets as of the periods noted (dollars in thousands):

Issuance Date

Stated Rate

Interest Paid

Maturity

Carrying Value

Initial Debt Issuance Costs

Remaining Net Balance(1)

March 2020

5.125% per annum until 3/31/2025, then alternative rate plus 450 basis points until maturity

Quarterly

3/31/2030

8,000

120

7,988

November 2020

4.25% per annum until 12/1/2025, then SOFR plus 402 basis points until maturity

Semi-annual (Quarterly beginning 12/01/25)

12/1/2030

10,000

162

9,942

August 2021

3.25% per annum until 9/1/2026, then SOFR plus 258 basis points until maturity

Semi-annual (Quarterly beginning 09/01/26)

9/1/2031

15,000

242

14,894

December 2022

7.00% per annum until 12/15/2027, then SOFR plus 328 basis points until maturity

Semi-annual (Quarterly beginning 12/15/27)

12/15/2032

20,000

506

19,684

______________________________________

(1)Remaining net balance includes amortization of debt issuance costs.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 2,134	$ 3,118	$ 5,725	$ 8,444
Other comprehensive (loss) income items:
Amortization of net unrealized loss for the reclassification of available-for-sale securities transferred to held-to-maturity included in interest income	98	86	288	266
Income tax effect	(24)	(21)	(70)	(72)
Unrealized (loss) gain on cash flow hedge	(837)	299	(303)	983
Income tax effect	202	(73)	73	(238)
Total other comprehensive (loss) income items	(561)	291	(12)	939
Comprehensive income	$ 1,573	$ 3,409	$ 5,713	$ 9,383

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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