0001628280-21-023056 | 10-Q | XBRL Viewer | Southern States Bancshares INC

Print Document View Excel Document

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2021	Nov. 12, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-40727
Entity Registrant Name	Southern States Bancshares, Inc.
Entity Incorporation, State or Country Code	AL
Entity Tax Identification Number	26-2518085
Entity Address, Address Line One	615 Quintard Ave
Entity Address, City or Town	Anniston
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	36201
City Area Code	256
Local Phone Number	241-1092
Title of 12(b) Security	Common Stock, $5.00 par value per share
Trading Symbol	SSBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		9,012,857
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001689731
Current Fiscal Year End Date	--12-31

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 19,000	$ 23,229
Interest-bearing deposits in banks	114,800	51,503
Federal funds sold	44,022	10,175
Total cash and cash equivalents	177,822	84,907
Securities available for sale, at fair value	113,317	114,001
Securities held to maturity, at amortized cost	19,678	0
Other equity securities, at fair value	9,227	5,017
Restricted equity securities, at cost	2,600	3,224
Loans held for sale	2,097	5,696
Loans, net of unearned income	1,145,447	1,030,115
Less allowance for loan losses	14,097	11,859
Loans, net	1,131,350	1,018,256
Premises and equipment, net	25,916	24,426
Accrued interest receivable	3,933	4,243
Bank owned life insurance	22,081	22,458
Annuities	12,968	12,903
Foreclosed assets	10,146	10,224
Goodwill	16,862	16,862
Core deposit intangible	1,566	1,764
Other assets	9,499	8,525
Total assets	1,559,062	1,332,506
Deposits:
Noninterest-bearing	380,111	290,867
Interest-bearing	956,211	848,794
Total deposits	1,336,322	1,139,661
Other borrowings	12,498	7,975
FHLB advances	26,900	30,900
Subordinated notes	0	4,493
Accrued interest payable	125	278
Other liabilities	8,996	8,543
Total liabilities	1,384,841	1,191,850
Stockholders' equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020	0	0
Common stock, $5 par value, 30,000,000 shares authorized; 9,012,857 and 7,678,195 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	45,064	38,391
Capital surplus	80,547	65,327
Retained earnings	46,611	34,183
Accumulated other comprehensive income	2,600	3,194
Unvested restricted stock	(601)	(439)
Total stockholders' equity	174,221	140,656
Total liabilities and stockholders' equity	$ 1,559,062	$ 1,332,506

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	2,000,000	2,000,000
Preferred stock outstanding (in shares)	0	0
Preferred stock issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 5	$ 5
Common stock authorized (in shares)	30,000,000	30,000,000
Common stock outstanding (in shares)	9,012,857	7,678,195
Common stock issued (in shares)	9,012,857	7,678,195

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Loans, including fees	$ 13,923	$ 12,308	$ 40,429	$ 35,577
Taxable securities	402	346	1,134	940
Nontaxable securities	266	178	729	454
Other interest and dividends	143	67	315	489
Total interest income	14,734	12,899	42,607	37,460
Interest Expense [Abstract]
Deposits	1,034	1,694	3,355	6,491
Other borrowings	60	220	435	642
Total interest expense	1,094	1,914	3,790	7,133
Net interest income	13,640	10,985	38,817	30,327
Provision for loan losses	750	1,600	2,250	2,700
Net interest income after provision for loan losses	12,890	9,385	36,567	27,627
Service charges on deposit accounts	403	356	1,101	1,089
Swap fees	101	419	938	1,063
SBA/USDA fees	130	124	3,434	709
Mortgage origination fees	393	410	1,196	1,220
Net gain (loss) on securities	189	0	(17)	742
Other operating income	1,293	1,139	2,399	2,093
Total noninterest income	2,509	2,448	9,051	6,916
Salaries and employee benefits	5,517	4,629	16,104	13,801
Equipment and occupancy expenses	908	949	2,697	2,760
Data processing fees	524	468	1,565	1,340
Regulatory assessments	248	210	689	523
Other operating expenses	1,988	1,834	5,768	5,315
Total noninterest expenses	9,185	8,090	26,823	23,739
Income before income taxes	6,214	3,743	18,795	10,804
Income tax expense	1,293	549	4,287	2,012
Net Income	$ 4,921	$ 3,194	$ 14,508	$ 8,792
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.42	$ 1.84	$ 1.15
Dilutive earnings per share (in dollars per share)	$ 0.58	$ 0.41	$ 1.82	$ 1.13
Revenue, Product and Service [Extensible Enumeration]	us-gaap:DepositAccountMember	us-gaap:DepositAccountMember	us-gaap:DepositAccountMember	us-gaap:DepositAccountMember

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income	$ 4,921	$ 3,194	$ 14,508	$ 8,792
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities available for sale arising during the period, net of benefit (tax)	56	601	(606)	3,090
Reclassification adjustment for losses (gains) on securities available for sale realized in net income, net of benefit (tax)	(140)	0	12	(549)
Other comprehensive income (loss)	(84)	601	(594)	2,541
Comprehensive income	$ 4,837	$ 3,795	$ 13,914	$ 11,333

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=123570139&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=125511455&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Unrealized holding gains on securities available for sale arising during the period, tax	$ 20	$ 211	$ 213	$ (1,086)
Reclassification adjustment for losses (gains) on securities available for sale realized in net income, benefit (tax)	$ 49	$ 0	$ 4	$ (193)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2021 - USD ($) $ in Thousands	Total	IPO	Preferred Stock	Common Stock	Common Stock IPO	Capital Surplus	Capital Surplus IPO	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Unvested Restricted Stock
Beginning balance at Dec. 31, 2020	$ 140,656		$ 0	$ 38,391		$ 65,327		$ 34,183	$ 3,194	$ (439)
Beginning balance (in shares) at Dec. 31, 2020			0	7,678,195
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	14,508							14,508
Issuance of common stock (in shares)				8,240	1,296,429
Issuance of common stock	165	$ 24,632		$ 41	$ 6,482	124	$ 18,150
Issuance of common stock - IPO cost	(3,674)					(3,674)
Exercise of common stock options (in shares)				5,008
Exercise of common stock options	0			$ 25		(25)
Issuance of restricted stock (in shares)				24,985
Issuance of restricted stock	1			$ 125		376				(500)
Stock-based compensation	607					269				338
Common stock dividends paid	(2,080)							(2,080)
Other comprehensive loss	(594)								(594)
Ending balance (in shares) at Sep. 30, 2021			0	9,012,857
Ending balance at Sep. 30, 2021	$ 174,221		$ 0	$ 45,064		$ 80,547		$ 46,611	$ 2,600	$ (601)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES
Net Income	$ 14,508	$ 8,792
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and software amortization	1,422	1,475
Net loss (gain) on securities	17	(742)
Net amortization of securities	696	421
Amortization of core deposit intangible	198	198
Provision for loan losses	2,250	2,700
Gain on sale of foreclosed assets	(10)	(126)
Write-down of foreclosed assets	0	920
Loss on sale of premises, equipment and software	0	16
Stock-based compensation	607	540
Net decrease (increase) in loans held for sale	3,599	(997)
Income from bank owned life insurance	(378)	(398)
Decrease (increase) in interest receivable	310	(1,484)
Decrease in interest payable	(153)	(67)
Net other operating activities	(376)	(2,861)
Net cash provided by operating activities	22,690	8,387
INVESTING ACTIVITIES
Purchase of securities available for sale	(44,479)	(62,336)
Purchase of other equity securities	(9,000)	(5,000)
Proceeds from sale of securities available for sale	15,759	26,185
Proceeds from sale of other equity securities	4,995	0
Proceeds from maturities, calls, and paydowns of securities available for sale	8,005	6,697
Net redemption (purchase) of restricted equity securities	624	(1,116)
Net increase in loans	(115,444)	(166,383)
Proceeds from sale of foreclosed assets	188	834
Proceeds from bank owned life insurance	755	149
Proceeds from sale of premises, equipment and software	0	376
Purchase of premises, equipment and software	(2,912)	(6,632)
Net cash used in investing activities	(141,509)	(207,226)
FINANCING ACTIVITIES
Net increase in deposits	196,661	163,097
Net proceeds from issuance of common stock in connection with IPO	20,959	0
Proceeds from issuance of common stock	165	85
Net (repayment) proceeds of other borrowings	(3,971)	28,878
Net proceeds of note payable	4,500	0
Repayment of subordinated notes	(4,500)	0
Common stock dividends paid	(2,080)	(1,228)
Net cash provided by financing activities	211,734	190,832
Net increase (decrease) in cash and cash equivalents	92,915	(8,007)
Cash and cash equivalents at beginning of year	84,907	115,235
Cash and cash equivalents at end of year	177,822	107,228
Cash paid during the year for:
Interest	3,943	7,200
Income taxes	5,367	2,739
NONCASH TRANSACTIONS
Transfers of loans to foreclosed assets	100	3,090
Internally financed sales of foreclosed assets	$ 0	$ 923

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Southern States Bancshares, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, Southern States Bank (the “Bank”). The Bank is a commercial bank headquartered in Anniston, Calhoun County, Alabama. The Bank also operates branch offices in Birmingham, Opelika, Auburn, Huntsville, Sylacauga, Wedowee, Ranburne, Roanoke, Heflin, Alabama as well as Columbus, Carrollton, Dallas, and Newnan, Georgia. The Bank also has an LPO office located in Atlanta, Georgia. The Bank provides a full range of banking services in its primary market areas and the surrounding areas.

Basis of Presentation and Accounting Estimates

The unaudited consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation.

In preparing the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets, financial instruments, deferred taxes, and other-than-temporary impairment of securities. In connection with the determination of the estimated losses on loans and the valuation of foreclosed assets, management obtains independent appraisals for significant collateral.

The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its borrowers’ ability to honor their contracts is dependent on local economic conditions.

While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions.

In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Cash, Cash Equivalents and Cash Flows

For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in banks and federal funds sold. Cash flows from loans held for sale, loans, restricted equity securities, and deposits are reported net.

Cash, Cash Equivalents and Cash Flows (Continued)

The Company maintains amounts due from banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.

The Bank is required to maintain reserve balances in cash or on deposit with a correspondent bank for the Federal Reserve Bank, based on a percentage of deposits. The total of those reserve balances was $0 at September 30, 2021 and December 31, 2020.

Securities

The Company classifies its securities into one of two categories based upon management’s intent and ability to hold the securities: (i) securities held to maturity or (ii) securities available for sale. Securities classified as held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company has the ability, and it is management’s intention, to hold such securities to maturity. Securities classified as available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities available for sale are recorded on the trade date and are determined using the specific identification method.

The Company evaluates investment securities for other-than-temporary impairment (OTTI) using relevant accounting guidance on a regular basis. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer including an evaluation of credit ratings, (3) the impact of changes in market interest rates, (4) the intent of the Company to sell a security, and (5) whether it is more likely than not the Company will have to sell the security before recovery of its cost basis. If the Company intends to sell an impaired security, or if it is more likely than not the Company will have to sell the security before recovery of its cost basis, the Company records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss is recognized in other comprehensive income (loss).

Other Equity Securities

The mutual fund owned by the Bank is classified as an equity security, it is carried at fair value with any periodic changes in value recorded through the income statement.

Restricted Equity Securities

Restricted equity securities are investments that are restricted in marketability. The Company, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of the FHLB based upon its assets or outstanding advances. The Company has also purchased stock in First National Banker’s Bankshares, Inc. (FNBB), and Pacific Coast Banker’s Bank (PCBB), both correspondent banks.

Loans Held For Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value (LOCOM). For loans carried at LOCOM, gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. The estimated fair value of loans held for sale is based on independent third party quoted prices.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances less deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued on the outstanding principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield over the life of the loan, using the straight line method without anticipating prepayments.

The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due, or at the time the loan is 90 days past due, unless the loan is well-secured and in the process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income or charged to the allowance; unless management believes that the accrual of interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash basis, until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and the loan has been performing according to the contractual terms generally for a period of not less than six months.

Certain Purchased Loans

Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. Purchased impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The purchased impaired loans acquired are subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a provision for credit losses will be charged to earnings.

Such purchased loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows will continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Purchased impaired loans at the time of acquisition are accounted for under ASC 310-30.

Purchased non-impaired loans are accounted for under ASC 310-20, with the difference between the fair value and unpaid principal balance of the loan at the acquisition date amortized or accreted to interest income over the estimated life of the loans.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Confirmed losses are charged off immediately. Subsequent recoveries, if any, are credited to the allowance.

The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of loans in light of historical experience, the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, current economic conditions that may affect the borrower’s ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions.

The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Loans, for which the terms have been modified at the borrower’s request, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. Loans that experience insignificant payment delays and payment shortfalls are not generally classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.

The Company’s allowance is allocated among commercial real estate loans, real estate construction and development loans, residential real estate loans, commercial and industrial loans, and consumer loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality and foreclosure rates; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the experience and ability of lending personnel and management; (7) effectiveness of the Company’s loan policies, procedures and internal controls; (8) current conditions in the real estate and construction markets; (9) the effect of entrance into new markets or the offering of a new product; (10) the loan review system and oversight of the Board of Directors. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for internal and external factors and the total dollar amount of the loans in the pool.

Troubled Debt Restructurings

A loan is considered a troubled debt restructuring (TDR) based on individual facts and circumstances. The Company designates loan modifications as TDRs when for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses.

In determining whether a borrower is experiencing financial difficulties, the Company considers if the borrower is in payment default or would be in payment default in the foreseeable future without the modification, the borrower declared or is in the process of declaring bankruptcy, the borrower’s projected cash flows will not be sufficient to service any of its debt, or the borrower cannot obtain funds from sources other than the Company at a market rate for debt with similar risk characteristics.

In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the borrower will serve as adequate compensation for other terms of the restructuring, and whether the borrower otherwise has access to funds at a market rate for debt with similar risk characteristics.

Premises and Equipment

Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are reflected in income. The estimated useful lives are as follows:


			Years
Buildings			10-39
Furniture and equipment			3-7

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Costs of improvements are capitalized, whereas costs related to holding foreclosed assets and subsequent write-downs to the value are expensed. Any gains and losses realized at the time of disposal are reflected in income.

Goodwill

Goodwill represents the excess of the amount paid over the fair value of the net assets at the date of acquisition. Goodwill is subject to an annual evaluation of impairment. If desired, the Company can assess qualitative factors to determine if comparing the carrying value of the reporting unit to its fair value is necessary. Should the fair value be less than the carrying value, an impairment write-down would be taken. Based on its assessment of qualitative factors, the Company determined that no impairment exists at September 30, 2021.

Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). The Company performed a goodwill impairment test in September 2021. The qualitative factors considered in determining if fair value of the unit was less than the carrying amount were economic conditions related to the COVID-19 virus and the change in the interest rate environment. A quantitative assessment of goodwill impairment included determining the estimated fair value of Company using a market-based approach. The market approach was based on a comparison of certain financial metrics of the Company to public company peers. It was determined there was no impairment.

Core Deposit Intangible

A core deposit intangible is initially recognized based on a valuation, of acquired deposits, performed as of the acquisition date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, or approximately 7 years. The intangible asset is reviewed annually for events or circumstances that could negatively impact the recoverability of the intangible. These events could include loss of core deposits, increased competition, or adverse changes in the economy. To the extent this intangible asset is deemed unrecoverable, an impairment charge would be recorded. The Company maintains steady deposit growth across our markets and continues to attract new customer deposits. The intangible asset was evaluated for impairment as of September 30, 2021 and based on that evaluation there was no impairment.

Accounting Policy for Derivative Instruments and Hedging Activities

FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

Accounting Policy for Derivative Instruments and Hedging Activities (Continued)

As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Income Taxes

Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets may be reduced by deferred tax liabilities and a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Management believes that the Company will generate sufficient operating earnings to realize the deferred tax benefits.

Stock Compensation Plans

Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options and warrants, restricted stock plans, performance-based awards, share appreciation rights, and employee share purchase plans.

Stock Compensation Plans (Continued)

The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the estimated market price of the Company’s common stock at the date of grant is used for restricted stock awards and stock grants.

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.

Fair Value of Financial Instruments

Fair values of financial instruments are estimates using relevant market information and other assumptions, as more fully disclosed in Note 12. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.

Revenue Recognition

On January 1, 2018, the Company adopted ASC 606 and all subsequent amendments (collectively ASC 606) which (1) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (2) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as foreclosed assets. The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606. With the exception of gains/losses on sale of foreclosed assets, the Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligations to the customer. Services within the scope of ASC 606 reported in noninterest income include service charges on deposit accounts, bank card services and interchange fees, and ATM fees.

Recent Accounting Pronouncements

In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 requires organizations that lease assets (lessees) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the lease for all operating leases under current U.S. GAAP with a term of more than 12 months. The ASU is effective for non public business entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The ASU should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-02 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements (Continued)

In July 2018 the FASB issued ASU 2018-11, “Leases –Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2022 for the Company). The Company adopted ASU 2018-11 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements.

In June 2016 the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgement used in estimating credit losses. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2020, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by two years for non pubic business entities and SEC filers that qualify as smaller reporting companies, including the Company. Management has been in the process of developing a revised model to calculate the allowance for loan and leases losses upon implementation of ASU 2016-13 in order to determine the impact on the Company’s consolidated financial statements and, at this time, expects to recognize a one-time cumulative effect adjustment to the allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective. The magnitude of any such one-time adjustments is not yet known but is not anticipated to be material.

Recent Events

On August 12, 2021, the Company completed the sale of 996,429 new shares of the Company’s common stock at a public offering price of $19.00 per share in the Company’s initial public offering (the “IPO”), and on August 19, 2021, the Company completed the sale of an additional 300,000 shares at the same price pursuant to the exercise of the underwriters’ option to purchase additional shares in the offering.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share reflect additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Basic Earnings Per Share:
Net Income	$	4,921	$	3,194	$	14,508	$	8,792
Weighted average common shares outstanding	8,354,860		7,666,336		7,861,780		7,666,336
Basic earnings per share	$	0.59	$	0.42	$	1.84	$	1.15
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	4,914	$	3,187	$	14,487	$	8,779
Weighted average common shares outstanding	8,354,860		7,666,336		7,861,780		7,666,336
Net dilutive effect of:
Assumed exercises of stock options	112,600		101,640		118,379		95,359
Average shares and dilutive potential common shares	8,467,460		7,767,976		7,980,159		7,761,695
Dilutive earnings per share	$	0.58	$	0.41	$	1.82	$	1.13

SECURITIES

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The amortized cost and fair value of securities at September 30, 2021 and December 31, 2020 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
Securities Available for Sale
U.S. Treasury securities	$	7,832	$	123	$	—	$	7,955
U.S. Government Sponsored Enterprises (GSEs)	9,477		170		(75)		9,572
State and municipal securities	49,181		2,603		(32)		51,752
Corporate debt securities	10,282		363		(19)		10,626
Asset based securities	10,635		123		(12)		10,746
Mortgage-backed GSE residential/multifamily	22,397		297		(28)		22,666
Total securities available for sale	$	109,804	$	3,679	$	(166)	$	113,317

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	19,678		539		(18)		20,199
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	19,678	$	539	$	(18)	$	20,199
Total securities	$	129,482	$	4,218	$	(184)	$	133,516


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,154		246		(34)		9,366
State and municipal securities	64,468		3,531		(58)		67,941
Corporate debt securities	8,286		188		(5)		8,469
Asset based securities	9,035		76		—		9,111
Mortgage-backed GSE residential/multifamily	18,753		394		(33)		19,114
Total securities available for sale	$	109,696	$	4,435	$	(130)	$	114,001

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	—		—		—		—
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—
Total securities	$	109,696	$	4,435	$	(130)	$	114,001

Securities with a carrying value of $41,110 and $40,983 at September 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.

The amortized cost and fair value of securities available for sale and securities held to maturity as of September 30, 2021 and December 31, 2020 by contractual maturity are shown below. Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid with or without penalty. Therefore, these securities are not included by maturity in the following summary:


	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities Available for Sale
Due in less than one year	$	304	$	304	$	—	$	—
Due from one year to five years	658		660		1,200		1,241
Due after five to ten years	28,351		28,992		15,518		15,873
Due after ten years	58,094		60,695		74,225		77,773
Mortgage-backed securities	22,397		22,666		18,753		19,114
Total securities available for sale	$	109,804	$	113,317	$	109,696	$	114,001

Securities Held to Maturity
Due in less than one year	$	—	$	—	$	—	$	—
Due from one year to five years	—		—		—		—
Due after five to ten years	1,101		1,125		—		—
Due after ten years	18,577		19,074		—		—
Mortgage-backed securities	—		—		—		—
Total securities held to maturity	$	19,678	$	20,199	$	—	$	—
Total securities	$	129,482	$	133,516	$	109,696	$	114,001

Restricted equity securities as of September 30, 2021 and December 31, 2020 consist of the following:


	September 30,		December 31,
	2021		2020
Federal Home Loan Bank stock	$	1,675	$	2,299
First National Banker’s Bankshares, Inc. stock	675		675
Pacific Coast Banker’s Bank stock	250		250
Total restricted equity securities	$	2,600	$	3,224

Temporarily Impaired Securities

The following table shows the gross unrealized losses and fair value of securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020.


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
September 30, 2021:
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(47)		1,624		(28)		1,963		(75)
State and municipal securities	(32)		7,925		—		—		(32)
Corporate debt securities	(19)		2,513		—		—		(19)
Asset based securities	(12)		3,324		—		—		(12)
Mortgage-backed GSE residential/multifamily	(11)		3,159		(17)		2,070		(28)
Total securities available for sale	$	(121)	$	18,545	$	(45)	$	4,033	$	(166)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	(18)		2,865		—		—		(18)
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	(18)	$	2,865	$	—	$	—	$	(18)
Total securities	$	(139)	$	21,410	$	(45)	$	4,033	$	(184)

Temporarily Impaired Securities (Continued)


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses

December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(34)		2,051		—		—		(34)
State and municipal securities	(58)		4,979		—		—		(58)
Corporate debt securities	(5)		1,495		—		—		(5)
Asset based securities	—		960		—		—		—
Mortgage-backed GSE residential/multifamily	$	(33)	$	6,643	$	—	$	—	$	(33)
Total securities available for sale	(130)		16,128		—		—		(130)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	—		—		—		—		—
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—
Total securities	$	(130)	$	16,128	$	—	$	—	$	(130)

The unrealized losses on thirty-three securities were caused by interest rate changes. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost bases, at maturity, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2021.

Other-Than-Temporary Impairment

The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred. Factors included in the evaluation process may include geographic concentrations, credit ratings, and other performance indicators of the underlying asset. As of September 30, 2021 and December 31, 2020, no securities within the Company’s investment securities portfolio was considered other-than-temporarily impaired.

LOANS

9 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

LOANS

Portfolio Segments and Classes

The composition of loans, excluding loans held for sale, is summarized as follows:


	September 30, 2021			December 31, 2020
	Amount		% of Total	Amount		% of Total
	(in thousands, except percentages)
Real estate mortgages:
Construction and development	$	158,255	13.8%	$	102,559	9.9%
Residential	135,862		11.8%	152,212		14.7%
Commercial	647,694		56.3%	514,923		49.8%
Commercial and industrial	198,550		17.3%	254,395		24.6%
Consumer and other	8,979		0.8%	9,644		1.0%
Gross Loans	1,149,340		100.0%	1,033,733		100.0%
Deferred loan fees	(3,893)			(3,618)
Allowance for loan losses	(14,097)			(11,859)
Loans, net	$	1,131,350		$	1,018,256

For purposes of the disclosures required pursuant to ASC 310, the loan portfolio was disaggregated into segments and then further disaggregated into classes for certain disclosures. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are three loan portfolio segments that include real estate, commercial and industrial, and consumer and other. A class is generally determined based on the initial measurement attribute, risk characteristic of the loan, and an entity’s method for monitoring and assessing credit risk. Commercial and industrial is a separate commercial loan class. Classes within the real estate portfolio segment include construction and development, residential mortgages, and commercial mortgages. Consumer loans and other are a class in itself.

In light of the U.S. and global economic crisis brought about by the COVID-19 pandemic, the Company has prioritized assisting its clients through this troubled time. The CARES Act provides for Paycheck Protection Plan (PPP) loans to be made by banks to employers with less than 500 employees if they continue to employ their existing workers. As of September 30, 2021, the Company has outstanding 109 loans for a total amount of $20,265 under the PPP. At September 30, 2021, unaccreted deferred loan origination fees related to PPP loans totaled $752. PPP loan origination fees recorded as an adjustment to loan yield for the three and nine months ended were $630 and $2,222, respectively. These PPP loans are included within the commercial and industrial loan category in the table above.

The following describe risk characteristics relevant to each of the portfolio segments and classes:

Real estate - As discussed below, the Company offers various types of real estate loan products. All loans within this portfolio segment are particularly sensitive to the valuation of real estate:

•Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio class includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral.

Portfolio Segments and Classes (Continued)

•Residential mortgages include 1-4 family first mortgage loans which are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property. Also included in residential mortgages are real estate loans secured by farmland, second liens, or open end real estate loans, such as home equity lines. These loans are typically repaid in the same means as 1-4 family first mortgages.

•Commercial real estate mortgage loans include both owner-occupied commercial real estate loans and other commercial real estate loans such as commercial loans secured by income producing properties. Owner-occupied commercial real estate loans made to operating businesses are long-term financing of land and buildings and are repaid by cash flows generated from business operations. Real estate loans for income-producing properties such as apartment buildings, hotels, office and industrial buildings, and retail shopping centers are repaid by cash flows from rent income derived from the properties.

Commercial and industrial - The commercial loan portfolio segment includes commercial and industrial loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, leases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the borrowers’ business operations.

Consumer and other - The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures which affects borrowers’ incomes and cash for repayment.

Credit Risk Management

The Chief Credit Officer, Officers Loan Committee and Directors Loan Committee are each involved in the credit risk management process and assess the accuracy of risk ratings, the quality of the portfolio and the estimation of inherent credit losses in the loan portfolio. This comprehensive process also assists in the prompt identification of problem credits. The Company has taken a number of measures to manage the portfolios and reduce risk, particularly in the more problematic portfolios.

The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by a comprehensive Loan Policy that provides for a consistent and prudent approach to underwriting and approvals of credits. Within the Board approved Loan Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored.

Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer portfolio segment, the risk management process focuses on managing customers who become delinquent in their payments. For the commercial and real estate portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur each year to assess the larger adversely rated credits for proper risk rating and accrual status.

Credit Risk Management (Continued)

Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Chief Credit Officer and reported to the Board of Directors.

A description of the general characteristics of the risk categories used by the Company is as follows:

•Pass - A pass loan is a strong credit with no existing or known potential weaknesses deserving of management’s close attention.

•Special Mention - A loan that has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution's credit position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

•Substandard - Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•Doubtful - Loans classified Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

•Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

Credit Risk Management (Continued)

The following tables summarize the risk category of the Company’s loan portfolio based upon the most recent analysis performed as of September 30, 2021 and December 31, 2020:


	Pass		Special Mention		Substandard		Doubtful		Total
	(dollars in thousands)
As of September 30, 2021
Real estate mortgages:
Construction and development	$	149,332	$	2,255	$	6,668	$	—	$	158,255
Residential	134,372		349		1,076		65		135,862
Commercial	621,743		17,595		8,356		—		647,694
Commercial and industrial	194,978		3,240		89		243		198,550
Consumer and other	8,972		—		7		—		8,979
Total	$	1,109,397	$	23,439	$	16,196	$	308	$	1,149,340

As of December 31, 2020
Real estate mortgages:
Construction and development	$	95,214	$	6,113	$	1,232	$	—	$	102,559
Residential	144,256		6,245		1,627		84		152,212
Commercial	471,555		36,754		6,614		—		514,923
Commercial and industrial	240,646		13,138		611		—		254,395
Consumer and other	8,186		1,435		23		—		9,644
Total	$	959,857	$	63,685	$	10,107	$	84	$	1,033,733

Past Due Loans

A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans and leases as of September 30, 2021 and December 31, 2020:


			Past Due Status (Accruing Loans)
	Current		30-59 Days		60-89 Days		90+ Days		Total Past Due		Nonaccrual		Total
As of September 30, 2021
Real estate mortgages:
Construction and development	$	156,283	$	—	$	—	$	—	$	—	$	1,972	$	158,255
Residential	134,687		411		425		—		836		339		135,862
Commercial	645,148		1,826		30		—		1,856		690		647,694
Commercial and industrial	197,819		431		—		—		431		300		198,550
Consumer and other	8,949		23		—		—		23		7		8,979
Total	$	1,142,886	$	2,691	$	455	$	—	$	3,146	$	3,308	$	1,149,340

As of December 31, 2020
Real estate mortgages:
Construction and development	$	101,375	$	117	$	90	$	—	$	207	$	977	$	102,559
Residential	150,837		382		94		42		518		857		152,212
Commercial	512,208		1,196		—		41		1,237		1,478		514,923
Commercial and industrial	252,473		626		1,212		—		1,838		84		254,395
Consumer and other	9,581		18		15		8		41		22		9,644
Total	$	1,026,474	$	2,339	$	1,411	$	91	$	3,841	$	3,418	$	1,033,733

Allowance for Loans Losses

The following tables detail activity in the allowance for loan losses by portfolio segment as of September 30, 2021 and September 30, 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


	Real Estate		Commercial		Consumer		Total
Allowance for loan losses:
Balance at December 31, 2020	$	8,057	$	3,609	$	193	$	11,859
Provision for loan losses	2,761		(442)		(69)		2,250
Loans charged off	(44)		—		(2)		(46)
Recoveries of loans previously charged off	12		14		8		34
Ending balance at September 30, 2021	$	10,786	$	3,181	$	130	$	14,097

Ending balance - individually evaluated for impairment	$	288	$	307	$	4	$	599
Ending balance - collectively evaluated for impairment	10,421		2,874		126		13,421
Ending balance - loans acquired with deteriorated credit quality	77		—		—		77
Total ending balance at September 30, 2021	$	10,786	$	3,181	$	130	$	14,097

Loans:
Ending balance - individually evaluated for impairment	$	16,105	$	332	$	30	$	16,467
Ending balance - collectively evaluated for impairment	924,406		198,218		8,949		1,131,573
Ending balance - loans acquired with deteriorated credit quality	1,300		—		—		1,300
Total ending balance at September 30, 2021	$	941,811	$	198,550	$	8,979	$	1,149,340

Allowance for Loans Losses (Continued)


	Real Estate		Commercial		Consumer		Total
Allowance for loan losses:
Balance at December 31, 2019	$	7,254	$	1,885	$	126	$	9,265
Provision for loan losses	1,118		1,723		(141)		2,700
Loans charged off	(48)		—		(15)		(63)
Recoveries of loans previously charged off	9		122		83		214
Ending balance at September 30, 2020	$	8,333	$	3,730	$	53	$	12,116

Ending balance - individually evaluated for impairment	$	2,115	$	406	$	—	$	2,521
Ending balance - collectively evaluated for impairment	6,079		3,324		53		9,456
Ending balance - loans acquired with deteriorated credit quality	139		—		—		139
Total ending balance at September 30, 2020	$	8,333	$	3,730	$	53	$	12,116

Loans:
Ending balance - individually evaluated for impairment	$	18,390	$	810	$	6	$	19,206
Ending balance - collectively evaluated for impairment	738,670		236,083		10,592		985,345
Ending balance - loans acquired with deteriorated credit quality	1,429		—		—		1,429
Total ending balance at September 30, 2020	$	758,489	$	236,893	$	10,598	$	1,005,980

Impaired Loans

A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following tables detail our impaired loans, by portfolio class as of September 30, 2021 and December 31, 2020.


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
September 30, 2021
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	5,049	$	5,049	$	—	$	5,063
Residential	1,236		1,236		—		1,694
Commercial	8,987		8,694		—		8,328
Commercial and industrial	32		32		—		45
Consumer and other	18		18		—		22
Total with no related allowance recorded	15,322		15,029		—		15,152

With an allowance recorded:
Real estate mortgages:
Construction and development	1,376		1,376		131		1,382
Residential	478		549		125		490
Commercial	279		279		109		280
Commercial and industrial	300		300		307		319
Consumer and other	12		12		4		13
Total with an allowance recorded	2,445		2,516		676		2,484
Total impaired loans	$	17,767	$	17,545	$	676	$	17,636

Impaired Loans (Continued)


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
December 31, 2020
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	977	$	977	$	—	$	970
Residential	1,537		1,537		—		1,669
Commercial	5,117		5,117		—		5,425
Commercial and industrial	65		65		—		91
Consumer and other	22		22		—		24
Total with no related allowance recorded	7,718		7,718		—		8,179

With an allowance recorded:
Real estate mortgages:
Construction and development	644		644		106		668
Residential	1,557		1,628		628		1,636
Commercial	3,373		3,373		847		3,526
Commercial and industrial	791		791		478		886
Consumer and other	15		15		7		15
Total with an allowance recorded	6,380		6,451		2,066		6,731
Total impaired loans	$	14,098	$	14,169	$	2,066	$	14,910

Impaired Loans (Continued)

A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following tables detail our interest income recognized on impaired loans, by portfolio class in the nine months ended September 30, 2021 and 2020.


	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Nine Months Ended September 30, 2021
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	5,049	$	5,063	$	113
Residential	1,236		1,694		59
Commercial	8,987		8,328		242
Commercial and industrial	32		45		2
Consumer and other	18		22		1
Total with no related allowance recorded	15,322		15,152		417

With an allowance recorded:
Real estate mortgages:
Construction and development	1,376		1,382		14
Residential	478		490		12
Commercial	279		280		7
Commercial and industrial	300		319		11
Consumer and other	12		13		—
Total with an allowance recorded	2,445		2,484		44
Total impaired loans	$	17,767	$	17,636	$	461

Impaired Loans (Continued)


	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Nine Months Ended September 30, 2020
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	1,490	$	1,506	$	78
Residential	2,345		1,759		95
Commercial	4,915		4,619		202
Commercial and industrial	340		340		34
Consumer and other	6		7		—
Total with no related allowance recorded	9,096		8,231		409

With an allowance recorded:
Real estate mortgages:
Construction and development	1,234		1,258		37
Residential	552		560		20
Commercial	9,283		9,706		100
Commercial and industrial	470		483		16
Consumer and other	—		—		—
Total with an allowance recorded	11,539		12,007		173
Total impaired loans	$	20,635	$	20,238	$	582

DEPOSITS

9 Months Ended

Sep. 30, 2021

Banking and Thrift, Interest [Abstract]

DEPOSITS

Major classifications of deposits are as follows:


	September 30, 2021		December 31, 2020
Noninterest-bearing transaction	$	380,111	$	290,867
Interest-bearing transaction	631,709		475,757
Savings	51,657		42,731
Time deposits, $250,000 and under	241,939		293,707
Time deposits, over $250,000	30,906		36,599
	$	1,336,322	$	1,139,661

Brokered deposits totaled $34,110 at September 30, 2021 and $34,151 at December 31, 2020. The scheduled maturities of time deposits at September 30, 2021 are as follows:


October 1, 2021 – September 30, 2022	$	228,097
October 1, 2022 – September 30, 2023	21,803
October 1, 2023 – September 30, 2024	17,888
October 1, 2024 – September 30, 2025	1,963
Thereafter	3,094
	$	272,845

At September 30, 2021 and December 31, 2020, overdrawn transaction accounts reclassified to loans totaled $117 and $166, respectively.

SUBORDINATED NOTES	9 Months Ended
SUBORDINATED NOTES	Sep. 30, 2021
Debt Disclosure [Abstract]
SUBORDINATED NOTES	On June 23, 2016, the Company issued $4,500 of Fixed-to-Floating Rate Subordinated Notes due July 2026 (the “Notes”). The Notes initially bore interest at 6.625% per annum, payable semi-annually in arrears on January 1 and July 1 of each year, commencing on January 1, 2017 until July 1, 2021. Thereafter and to, but excluding, the maturity date or earlier redemption, interest was payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 5.412%. The Company could, at its option, beginning on July 1, 2021 and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, at a redemption price equal to the outstanding principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. Issuance costs related to the Notes totaled $79 and have been netted against the subordinated notes liability on the balance sheet. At September 30, 2021 and December 31, 2020, the remaining balance of the debt issuance cost was $0 and $7, respectively. The debt issuance costs are being amortized using the straight line method over sixty months and are recorded as a component of interest expense. On June 23, 2021, the Company redeemed all of the outstanding Notes.

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments including the effects of offsetting as well as their classification on the consolidated balance sheets as of September 30, 2021 and December 31, 2020. As of September 30, 2021, the Company has posted cash collateral of $400. The amount of gain recognized in income on derivatives as a fair value adjustment and fee income, for the three months ended September 30, 2021, were $5 and $96, respectively. The amount of loss recognized in income on derivatives as a fair value adjustment and fee income, for the nine months ended September 30, 2021, were $23 and $960, respectively.


September 30, 2021						December 31, 2020
Derivatives not Designated as Hedging Instruments	Notional Amount		Balance Sheet Location	Fair Value		Derivatives not Designated as Hedging Instruments	Notional Amount		Balance Sheet Location	Fair Value
Interest Rate Products	$	82,657	Other Assets	$	1,638	Interest Rate Products	$	49,664	Other Assets	$	983
Interest Rate Products	82,657		Other Liabilities	(1,690)		Interest Rate Products	49,664		Other Liabilities	(1,013)

Credit-risk-related Contingent Features

Applicable for OTC derivatives with dealers

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

The Company has agreements with certain of its derivative counterparties that contain a provision where if the company fails to maintain its status as a well / adequate capitalized institution, then the Company could be required to post additional collateral.

Credit-risk-related Contingent Features (Continued)

As of September 30, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $1,671. If the Company had breached any of these provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at their termination value of $1,671, less the required collateral of $400.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Loan Commitments

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in the balance sheets. The majority of all commitments to extend credit and standby letters of credit are variable rate instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. A summary of the Company’s commitments is as follows:


	September 30, 2021		December 31, 2020
Commitments to extend credit	$	243,867	$	181,925
Standby letters of credit	3,537		2,814
	$	247,404	$	184,739

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies and is required in instances which the Company deems necessary.

The Company has not been required to perform on any standby letters of credit, and the Company has not incurred any losses on financial standby letters of credit for the nine months ended September 30, 2021 and September 30, 2020.

Contingencies

In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material effect on the Company’s financial statements.

CONCENTRATIONS OF CREDIT	9 Months Ended
CONCENTRATIONS OF CREDIT	Sep. 30, 2021
Risks and Uncertainties [Abstract]
CONCENTRATIONS OF CREDIT	The Company originates primarily commercial, commercial real estate, residential real estate, and consumer loans to customers in Alabama and Georgia. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in these areas. Eighty-two percent of the Company’s loan portfolio is concentrated in real estate. A substantial portion of these loans are secured by real estate in the Company’s primary market area. In addition, a substantial portion of the other real estate owned is located in those same markets. Accordingly, the ultimate collectibility of the loan portfolio and the recovery of the carrying amount of the other real estate owned are susceptible to changes in market conditions in the Company’s primary market area. The other concentrations of credit by type of loan are set forth in Note 4. The Company, according to regulatory restrictions, may not generally extend credit to any single borrower or group of related borrowers on a secured basis in excess of 20% of capital, as defined, or approximately $35,451 or on an unsecured basis in excess of 10% of capital, as defined, or approximately $17,725.

STOCKHOLDERS’ EQUITY	9 Months Ended
STOCKHOLDERS’ EQUITY	Sep. 30, 2021
Equity [Abstract]
STOCKHOLDERS’ EQUITY	As of September 30, 2021, the Company had 9,012,857 shares of common stock issued and outstanding. As of September 30, 2021, the Company does not have any non-voting shares issued and outstanding. As of December 31, 2020, the Company had 7,678,195 shares of common stock issued and outstanding, of which 805,715 shares were non-voting.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

REGULATORY MATTERS

9 Months Ended

Sep. 30, 2021

Regulatory Capital Requirements Under Banking Regulations [Abstract]

REGULATORY MATTERS

The Bank is subject to certain restrictions on the amount of dividends that may be declared without prior regulatory approval. At September 30, 2021, approximately $18,519 of retained earnings was available for dividend declaration without regulatory approval.

The Bank is also subject to various regulatory capital requirements administered by the 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total capital, Tier 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. In addition, the Bank is subject to an institution-specific capital buffer, which must exceed 2.50% to avoid limitations on distributions and discretionary bonus payments. Management believes, as of September 30, 2021 and December 31, 2020, that the Bank meets all capital adequacy requirements to which it is subject.

As of September 30, 2021, the Company and the Bank believe they are each well capitalized on a consolidated basis for bank regulatory purposes as their respective capital ratios exceed minimum total Tier 1 and CET1 risk-based capital ratios and Tier 1 leverage capital ratios as set forth in the following


	Actual				Required for Capital Adequacy Purposes				Minimums To Be “Well Capitalized” Under Prompt Corrective Action

	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of September 30, 2021

Tier 1 capital (to average assets)
Company	$	153,193	10.02	%	$	61,171	4.00	%	$	—	—
Bank	$	164,348	10.75	%	$	61,171	4.00	%	$	76,464	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	153,193	11.36	%	$	94,360	7.00	%	$	—	—
Bank	$	164,348	12.19	%	$	94,360	7.00	%	$	87,620	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	153,193	11.36	%	$	114,580	8.50	%	$	—	—
Bank	$	164,348	12.19	%	$	114,580	8.50	%	$	107,840	8.00	%

Total capital (to risk-weighted assets)
Company	$	167,290	12.41	%	$	141,540	10.50	%	$	—	—
Bank	$	178,445	13.24	%	$	141,540	10.50	%	$	134,800	10.00	%


	Actual				Required for Capital Adequacy Purposes				Minimums To Be “Well Capitalized” Under Prompt Corrective Action

	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December 31, 2020

Tier 1 capital (to average assets)
Company	$	118,837	9.24	%	$	51,426	4.00	%	$	—	—
Bank	$	130,852	10.18	%	$	51,426	4.00	%	$	77,139	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	118,837	10.63	%	$	78,257	7.00	%	$	—	—
Bank	$	130,852	11.70	%	$	78,257	7.00	%	$	72,667	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	118,837	10.63	%	$	95,026	8.50	%	$	—	—
Bank	$	130,852	11.70	%	$	95,026	8.50	%	$	89,436	8.00	%

Total capital (to risk-weighted assets)
Company	$	135,196	12.09	%	$	117,835	10.50	%	$	—	—
Bank	$	142,711	12.77	%	$	117,835	10.50	%	$	117,795	10.00	%

- Definition

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.

+ References + Details

FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

Determination of Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic (FASB ASC 820), the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

Fair Value Hierarchy

In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on 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 for substantially the full term of the asset or liability.

Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments:

Fair Value Hierarchy (Continued)

Cash and Cash Equivalents: The carrying amounts of cash and due from banks, interest-bearing deposits in banks, and federal funds sold make up cash and cash equivalents. The carrying amount of these short-term instruments approximate fair value.

Securities: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds and exchange-traded equities.

If quoted market prices are not available, management estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include GSE obligations, and state and municipal securities. Mortgage-backed securities are included in level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, those securities would be classified in Level 3.

Other Equity Securities: The carrying amounts approximates fair value.

Restricted Equity Securities: The carrying amount of restricted equity securities with no readily determinable fair value approximates fair value based on the redemption provisions of the issuers which is cost.

Loans Held for Sale: The carrying amounts of loans held for sale approximates fair value.

Loans: The carrying amount of variable-rate loans that reprice frequently and have no significant change in credit risk approximates fair value. The fair values of fixed rate loans is estimated based on discounted contractual cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality.

Bank Owned Life Insurance: The carrying amount of bank owned life insurance approximates fair value.

Annuities: The carrying amounts of annuities approximate their fair values.

Deposits: The fair values disclosed for transaction deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits.

Other Borrowings: The fair value of fixed-rate other borrowings is based on discounted contractual cash flows using interest rates currently being offered for borrowings of similar maturities. The fair values of the Company’s variable-rate other borrowings approximate their carrying values.

Subordinated Notes: The carrying amounts of the subordinated notes approximate fair value.

Accrued Interest: The carrying amounts of accrued interest approximate fair value.

Trading Assets and Liabilities: The Company has derivative instruments in the form of interest rate swap agreements accounted for as trading assets and liabilities and carried at fair value. The fair value of these instruments is based on information obtained from a third party financial institution. The Company reflects these instruments within Level 2 of the valuation hierarchy.

Fair Value Hierarchy (Continued)

Off-Balance Sheet Credit-Related Instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.

Assets Measured at Fair Value on a Recurring Basis

The only assets and liabilities measured at fair value on a recurring basis are our securities available-for-sale and swaps. There were no transfers between levels during the period. Information related to the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 is as follows:


	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2021:
U.S. Treasury securities	$	7,955	$	—	$	7,955	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,572		—		9,572		—
State and municipal securities	51,752		—		51,752		—
Corporate debt securities	10,626		—		10,626		—
Asset based securities	10,746		—		10,746		—
Mortgage-backed GSE residential/multifamily	22,666		—		22,666		—
Other equity securities	9,227		9,227		—		—
Interest Rate Products - asset	1,638		—		1,638		—
Interest Rate Products - liabilities	(1,690)		—		(1,690)		—

December 31, 2020:
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,366		—		9,366		—
State and municipal securities	67,941		—		67,941		—
Corporate debt securities	8,469		—		8,469		—
Asset based securities	9,111		—		9,111		—
Mortgage-backed GSE residential/multifamily	19,114		—		19,114		—
Other equity securities	5,017		5,017		—		—
Interest Rate Products - asset	983		—		983		—
Interest Rate Products - liabilities	(1,013)		—		(1,013)		—

Assets Measured at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measure at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2021 and December 31, 2020:


	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2021:
Impaired loans	$	2,401	$	—	$	—	$	2,401
Foreclosed assets	10,146		—		—		10,146
Totals	$	12,547	$	—	$	—	12,547


	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2020:
Impaired loans	$	4,392	$	—	$	—	$	4,392
Foreclosed assets	10,224		—		—		10,224
Totals	$	14,616	$	—	$	—	14,616

Impaired Loans

Loans considered impaired under ASC 310-10-35, Receivables, are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less estimated selling costs if the loan is collateral dependent.

The fair value of impaired loans were primarily measured based on the value of the collateral securing these loans. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company generally determines the value of real estate collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for estimated costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above.

Impaired Loans (Continued)

Impaired loans, which are usually measured for impairment using the fair value of collateral, had a carrying amount of $17,767 and $14,098 with a specific valuation allowance of $676 and $2,066 at September 30, 2021 and December 31, 2020, respectively. Of the $17,767 and $14,098 impaired loan portfolio, $3,077 and $6,458 were carried at fair value as a result of charge offs, specific valuation allowances, and the fair market adjustments at September 30, 2021 and December 31, 2020, respectively. The remaining $14,690 and $7,640 was carried at cost, as the fair value of the collateral on these loans exceeded the book value for each individual credit at September 30, 2021 and December 31, 2020, respectively. Charge offs and changes in specific valuation allowances at September 30, 2021 and December 31, 2020 on impaired loans carried at fair value resulted in additional provision for loan losses of $75 and $1,828, respectively.

Foreclosed Assets

Foreclosed assets, consisting of properties/assets obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less estimated costs to sell. Fair values are generally based on third party appraisals of the property/assets and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense.

Quantitative Disclosures for Level 3 Fair Value Measurements

The Company had no Level 3 assets measured at fair value on a recurring basis at September 30, 2021 or December 31, 2020.

For Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2021, the significant unobservable inputs used in the fair value measurements are presented below.

Carrying

Amount

Valuation

Technique

Significant

Unobservable

Input

Weighted

Average

of Input

Nonrecurring:

Impaired loans

2,401

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

10,146

Appraisal

Appraisal discounts (%)

10-15%

For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements are presented below.

Carrying

Amount

Valuation

Technique

Significant

Unobservable

Input

Weighted

Average

of Input

Nonrecurring:

Impaired loans

4,392

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

10,224

Appraisal

Appraisal discounts (%)

10-15%

Fair Value of Financial Instruments

The carrying amount and estimated fair value of the Company’s financial instruments were as follows:


	September 30, 2021
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	177,822	$	177,822	$	—	$	—
Securities available for sale	113,317		—		113,317		—
Other equity securities	9,227		9,227		—		—
Loans held for sale	2,097		—		2,097		—
Trading assets	1,638		—		1,638		—
Loans, net	1,131,350		—		1,137,628		2,401
Bank owned life insurance	22,081		—		22,081		—
Annuities	12,968		—		12,968		—
Foreclosed assets	10,146		—		—		10,146
Accrued interest receivable	3,933		—		3,933		—
Restricted equity securities	2,600		—		—		2,600

Financial liabilities:
Deposits	$	1,336,322	$	—	$	1,308,710	$	—
Trading liabilities	1,690		—		1,690		—
FHLB advances	26,900		—		26,925		—
Other borrowings	12,498		—		12,498		—
Subordinated notes	—		—		—		—
Accrued interest payable	125		—		125		—

Fair Value of Financial Instruments (Continued)


	December 31, 2020
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	84,907	$	84,907	$	—	$	—
Securities available for sale	114,001		—		114,001		—
Other equity securities	5,017		5,017		—		—
Loans held for sale	5,696		—		5,696		—
Trading assets	983		—		983		—
Loans, net	1,018,256		—		1,030,104		4,392
Bank owned life insurance	22,458		—		22,458		—
Annuities	12,903		—		12,903		—
Foreclosed assets	10,224		—		—		10,224
Accrued interest receivable	4,243		—		4,243		—
Restricted equity securities	3,224		—		—		3,224

Financial liabilities:
Deposits	$	1,139,661	$	—	$	1,140,979	$	—
Trading liabilities	1,013		—		1,013		—
FHLB advances	30,900		—		30,962		—
Other borrowings	7,975		—		7,975		—
Subordinated notes	4,493		—		4,493		—
Accrued interest payable	278		—		278		—

- Definition

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.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation and Accounting Estimates	Basis of Presentation and Accounting Estimates The unaudited consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation. In preparing the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets, financial instruments, deferred taxes, and other-than-temporary impairment of securities. In connection with the determination of the estimated losses on loans and the valuation of foreclosed assets, management obtains independent appraisals for significant collateral. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its borrowers’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Cash, Cash Equivalents and Cash Flows	Cash, Cash Equivalents and Cash Flows For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in banks and federal funds sold. Cash flows from loans held for sale, loans, restricted equity securities, and deposits are reported net. Cash, Cash Equivalents and Cash Flows (Continued) The Company maintains amounts due from banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Bank is required to maintain reserve balances in cash or on deposit with a correspondent bank for the Federal Reserve Bank, based on a percentage of deposits. The total of those reserve balances was $0 at September 30, 2021 and December 31, 2020.
Securities and Other Equity Securities	Securities The Company classifies its securities into one of two categories based upon management’s intent and ability to hold the securities: (i) securities held to maturity or (ii) securities available for sale. Securities classified as held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company has the ability, and it is management’s intention, to hold such securities to maturity. Securities classified as available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities available for sale are recorded on the trade date and are determined using the specific identification method. The Company evaluates investment securities for other-than-temporary impairment (OTTI) using relevant accounting guidance on a regular basis. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer including an evaluation of credit ratings, (3) the impact of changes in market interest rates, (4) the intent of the Company to sell a security, and (5) whether it is more likely than not the Company will have to sell the security before recovery of its cost basis. If the Company intends to sell an impaired security, or if it is more likely than not the Company will have to sell the security before recovery of its cost basis, the Company records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss is recognized in other comprehensive income (loss). Other Equity Securities The mutual fund owned by the Bank is classified as an equity security, it is carried at fair value with any periodic changes in value recorded through the income statement.
Restricted Equity Securities	Restricted Equity Securities Restricted equity securities are investments that are restricted in marketability. The Company, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of the FHLB based upon its assets or outstanding advances. The Company has also purchased stock in First National Banker’s Bankshares, Inc. (FNBB), and Pacific Coast Banker’s Bank (PCBB), both correspondent banks.
Loans Held for Sale	Loans Held For Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value (LOCOM). For loans carried at LOCOM, gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. The estimated fair value of loans held for sale is based on independent third party quoted prices.
Loans and Certain Purchased Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances less deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued on the outstanding principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield over the life of the loan, using the straight line method without anticipating prepayments. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due, or at the time the loan is 90 days past due, unless the loan is well-secured and in the process of collection. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income or charged to the allowance; unless management believes that the accrual of interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash basis, until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and the loan has been performing according to the contractual terms generally for a period of not less than six months. Certain Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. Purchased impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The purchased impaired loans acquired are subject to the Company’s internal and external credit review and monitoring. If credit deterioration is experienced subsequent to the initial acquisition fair value amount, such deterioration will be measured, and a provision for credit losses will be charged to earnings. Such purchased loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows will continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Purchased impaired loans at the time of acquisition are accounted for under ASC 310-30. Purchased non-impaired loans are accounted for under ASC 310-20, with the difference between the fair value and unpaid principal balance of the loan at the acquisition date amortized or accreted to interest income over the estimated life of the loans.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Confirmed losses are charged off immediately. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of loans in light of historical experience, the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, current economic conditions that may affect the borrower’s ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Loans, for which the terms have been modified at the borrower’s request, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. Loans that experience insignificant payment delays and payment shortfalls are not generally classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Company’s allowance is allocated among commercial real estate loans, real estate construction and development loans, residential real estate loans, commercial and industrial loans, and consumer loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality and foreclosure rates; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the experience and ability of lending personnel and management; (7) effectiveness of the Company’s loan policies, procedures and internal controls; (8) current conditions in the real estate and construction markets; (9) the effect of entrance into new markets or the offering of a new product; (10) the loan review system and oversight of the Board of Directors. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for internal and external factors and the total dollar amount of the loans in the pool.
Troubled Debt Restructurings	Troubled Debt Restructurings A loan is considered a troubled debt restructuring (TDR) based on individual facts and circumstances. The Company designates loan modifications as TDRs when for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses. In determining whether a borrower is experiencing financial difficulties, the Company considers if the borrower is in payment default or would be in payment default in the foreseeable future without the modification, the borrower declared or is in the process of declaring bankruptcy, the borrower’s projected cash flows will not be sufficient to service any of its debt, or the borrower cannot obtain funds from sources other than the Company at a market rate for debt with similar risk characteristics. In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the borrower will serve as adequate compensation for other terms of the restructuring, and whether the borrower otherwise has access to funds at a market rate for debt with similar risk characteristics.
Premises and Equipment	Premises and EquipmentLand is carried at cost. Premises and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are reflected in income.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.
Foreclosed Assets	Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Costs of improvements are capitalized, whereas costs related to holding foreclosed assets and subsequent write-downs to the value are expensed. Any gains and losses realized at the time of disposal are reflected in income.
Goodwill and Core Deposit Intangible	Goodwill Goodwill represents the excess of the amount paid over the fair value of the net assets at the date of acquisition. Goodwill is subject to an annual evaluation of impairment. If desired, the Company can assess qualitative factors to determine if comparing the carrying value of the reporting unit to its fair value is necessary. Should the fair value be less than the carrying value, an impairment write-down would be taken. Based on its assessment of qualitative factors, the Company determined that no impairment exists at September 30, 2021. Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). The Company performed a goodwill impairment test in September 2021. The qualitative factors considered in determining if fair value of the unit was less than the carrying amount were economic conditions related to the COVID-19 virus and the change in the interest rate environment. A quantitative assessment of goodwill impairment included determining the estimated fair value of Company using a market-based approach. The market approach was based on a comparison of certain financial metrics of the Company to public company peers. It was determined there was no impairment. Core Deposit Intangible A core deposit intangible is initially recognized based on a valuation, of acquired deposits, performed as of the acquisition date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, or approximately 7 years. The intangible asset is reviewed annually for events or circumstances that could negatively impact the recoverability of the intangible. These events could include loss of core deposits, increased competition, or adverse changes in the economy. To the extent this intangible asset is deemed unrecoverable, an impairment charge would be recorded. The Company maintains steady deposit growth across our markets and continues to attract new customer deposits. The intangible asset was evaluated for impairment as of September 30, 2021 and based on that evaluation there was no impairment.
Accounting Policy for Derivative Instruments and Hedging Activities	Accounting Policy for Derivative Instruments and Hedging Activities FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. Accounting Policy for Derivative Instruments and Hedging Activities (Continued) As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Income Taxes	Income Taxes Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets may be reduced by deferred tax liabilities and a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Management believes that the Company will generate sufficient operating earnings to realize the deferred tax benefits.
Stock Compensation Plans	Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options and warrants, restricted stock plans, performance-based awards, share appreciation rights, and employee share purchase plans. Stock Compensation Plans (Continued) The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the estimated market price of the Company’s common stock at the date of grant is used for restricted stock awards and stock grants.
Comprehensive Income	Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair values of financial instruments are estimates using relevant market information and other assumptions, as more fully disclosed in Note 12. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.
Revenue Recognition	Revenue RecognitionOn January 1, 2018, the Company adopted ASC 606 and all subsequent amendments (collectively ASC 606) which (1) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (2) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as foreclosed assets. The majority of the Company’s revenues come from interest income and other sources, including loans and securities that are outside the scope of ASC 606. With the exception of gains/losses on sale of foreclosed assets, the Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligations to the customer. Services within the scope of ASC 606 reported in noninterest income include service charges on deposit accounts, bank card services and interchange fees, and ATM fees.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 requires organizations that lease assets (lessees) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the lease for all operating leases under current U.S. GAAP with a term of more than 12 months. The ASU is effective for non public business entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The ASU should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2016-02 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements (Continued) In July 2018 the FASB issued ASU 2018-11, “Leases –Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2022 for the Company). The Company adopted ASU 2018-11 on June 30, 2021 and there was no material impact on the Company’s consolidated financial statements. In June 2016 the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgement used in estimating credit losses. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2020, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by two years for non pubic business entities and SEC filers that qualify as smaller reporting companies, including the Company. Management has been in the process of developing a revised model to calculate the allowance for loan and leases losses upon implementation of ASU 2016-13 in order to determine the impact on the Company’s consolidated financial statements and, at this time, expects to recognize a one-time cumulative effect adjustment to the allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective. The magnitude of any such one-time adjustments is not yet known but is not anticipated to be material.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Property, Plant and Equipment

The estimated useful lives are as follows:


			Years
Buildings			10-39
Furniture and equipment			3-7

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Basic Earnings Per Share:
Net Income	$	4,921	$	3,194	$	14,508	$	8,792
Weighted average common shares outstanding	8,354,860		7,666,336		7,861,780		7,666,336
Basic earnings per share	$	0.59	$	0.42	$	1.84	$	1.15
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	4,914	$	3,187	$	14,487	$	8,779
Weighted average common shares outstanding	8,354,860		7,666,336		7,861,780		7,666,336
Net dilutive effect of:
Assumed exercises of stock options	112,600		101,640		118,379		95,359
Average shares and dilutive potential common shares	8,467,460		7,767,976		7,980,159		7,761,695
Dilutive earnings per share	$	0.58	$	0.41	$	1.82	$	1.13

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Available-for-sale

The amortized cost and fair value of securities at September 30, 2021 and December 31, 2020 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
Securities Available for Sale
U.S. Treasury securities	$	7,832	$	123	$	—	$	7,955
U.S. Government Sponsored Enterprises (GSEs)	9,477		170		(75)		9,572
State and municipal securities	49,181		2,603		(32)		51,752
Corporate debt securities	10,282		363		(19)		10,626
Asset based securities	10,635		123		(12)		10,746
Mortgage-backed GSE residential/multifamily	22,397		297		(28)		22,666
Total securities available for sale	$	109,804	$	3,679	$	(166)	$	113,317

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	19,678		539		(18)		20,199
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	19,678	$	539	$	(18)	$	20,199
Total securities	$	129,482	$	4,218	$	(184)	$	133,516


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,154		246		(34)		9,366
State and municipal securities	64,468		3,531		(58)		67,941
Corporate debt securities	8,286		188		(5)		8,469
Asset based securities	9,035		76		—		9,111
Mortgage-backed GSE residential/multifamily	18,753		394		(33)		19,114
Total securities available for sale	$	109,696	$	4,435	$	(130)	$	114,001

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	—		—		—		—
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—
Total securities	$	109,696	$	4,435	$	(130)	$	114,001

Schedule of Debt Securities, Held-to-maturity

The amortized cost and fair value of securities at September 30, 2021 and December 31, 2020 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
Securities Available for Sale
U.S. Treasury securities	$	7,832	$	123	$	—	$	7,955
U.S. Government Sponsored Enterprises (GSEs)	9,477		170		(75)		9,572
State and municipal securities	49,181		2,603		(32)		51,752
Corporate debt securities	10,282		363		(19)		10,626
Asset based securities	10,635		123		(12)		10,746
Mortgage-backed GSE residential/multifamily	22,397		297		(28)		22,666
Total securities available for sale	$	109,804	$	3,679	$	(166)	$	113,317

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	19,678		539		(18)		20,199
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	19,678	$	539	$	(18)	$	20,199
Total securities	$	129,482	$	4,218	$	(184)	$	133,516


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,154		246		(34)		9,366
State and municipal securities	64,468		3,531		(58)		67,941
Corporate debt securities	8,286		188		(5)		8,469
Asset based securities	9,035		76		—		9,111
Mortgage-backed GSE residential/multifamily	18,753		394		(33)		19,114
Total securities available for sale	$	109,696	$	4,435	$	(130)	$	114,001

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—
State and municipal securities	—		—		—		—
Corporate debt securities	—		—		—		—
Asset based securities	—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—
Total securities	$	109,696	$	4,435	$	(130)	$	114,001

Schedule of Investments Classified by Contractual Maturity Date


	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities Available for Sale
Due in less than one year	$	304	$	304	$	—	$	—
Due from one year to five years	658		660		1,200		1,241
Due after five to ten years	28,351		28,992		15,518		15,873
Due after ten years	58,094		60,695		74,225		77,773
Mortgage-backed securities	22,397		22,666		18,753		19,114
Total securities available for sale	$	109,804	$	113,317	$	109,696	$	114,001

Securities Held to Maturity
Due in less than one year	$	—	$	—	$	—	$	—
Due from one year to five years	—		—		—		—
Due after five to ten years	1,101		1,125		—		—
Due after ten years	18,577		19,074		—		—
Mortgage-backed securities	—		—		—		—
Total securities held to maturity	$	19,678	$	20,199	$	—	$	—
Total securities	$	129,482	$	133,516	$	109,696	$	114,001

Schedule of Restricted Investments

Restricted equity securities as of September 30, 2021 and December 31, 2020 consist of the following:


	September 30,		December 31,
	2021		2020
Federal Home Loan Bank stock	$	1,675	$	2,299
First National Banker’s Bankshares, Inc. stock	675		675
Pacific Coast Banker’s Bank stock	250		250
Total restricted equity securities	$	2,600	$	3,224

Schedule of Available-for-sale in Continuous Unrealized Loss Position


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
September 30, 2021:
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(47)		1,624		(28)		1,963		(75)
State and municipal securities	(32)		7,925		—		—		(32)
Corporate debt securities	(19)		2,513		—		—		(19)
Asset based securities	(12)		3,324		—		—		(12)
Mortgage-backed GSE residential/multifamily	(11)		3,159		(17)		2,070		(28)
Total securities available for sale	$	(121)	$	18,545	$	(45)	$	4,033	$	(166)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	(18)		2,865		—		—		(18)
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	(18)	$	2,865	$	—	$	—	$	(18)
Total securities	$	(139)	$	21,410	$	(45)	$	4,033	$	(184)

Temporarily Impaired Securities (Continued)


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses

December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(34)		2,051		—		—		(34)
State and municipal securities	(58)		4,979		—		—		(58)
Corporate debt securities	(5)		1,495		—		—		(5)
Asset based securities	—		960		—		—		—
Mortgage-backed GSE residential/multifamily	$	(33)	$	6,643	$	—	$	—	$	(33)
Total securities available for sale	(130)		16,128		—		—		(130)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	—		—		—		—		—
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—
Total securities	$	(130)	$	16,128	$	—	$	—	$	(130)

Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
September 30, 2021:
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(47)		1,624		(28)		1,963		(75)
State and municipal securities	(32)		7,925		—		—		(32)
Corporate debt securities	(19)		2,513		—		—		(19)
Asset based securities	(12)		3,324		—		—		(12)
Mortgage-backed GSE residential/multifamily	(11)		3,159		(17)		2,070		(28)
Total securities available for sale	$	(121)	$	18,545	$	(45)	$	4,033	$	(166)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	(18)		2,865		—		—		(18)
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	(18)	$	2,865	$	—	$	—	$	(18)
Total securities	$	(139)	$	21,410	$	(45)	$	4,033	$	(184)

Temporarily Impaired Securities (Continued)


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses

December 31, 2020
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	(34)		2,051		—		—		(34)
State and municipal securities	(58)		4,979		—		—		(58)
Corporate debt securities	(5)		1,495		—		—		(5)
Asset based securities	—		960		—		—		—
Mortgage-backed GSE residential/multifamily	$	(33)	$	6,643	$	—	$	—	$	(33)
Total securities available for sale	(130)		16,128		—		—		(130)

Securities Held to Maturity
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	—		—		—		—		—
State and municipal securities	—		—		—		—		—
Corporate debt securities	—		—		—		—		—
Asset based securities	—		—		—		—		—
Mortgage-backed GSE residential/multifamily	—		—		—		—		—
Total securities held to maturity	$	—	$	—	$	—	$	—	$	—
Total securities	$	(130)	$	16,128	$	—	$	—	$	(130)

LOANS (Tables)

9 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Composition of Loans

The composition of loans, excluding loans held for sale, is summarized as follows:


	September 30, 2021			December 31, 2020
	Amount		% of Total	Amount		% of Total
	(in thousands, except percentages)
Real estate mortgages:
Construction and development	$	158,255	13.8%	$	102,559	9.9%
Residential	135,862		11.8%	152,212		14.7%
Commercial	647,694		56.3%	514,923		49.8%
Commercial and industrial	198,550		17.3%	254,395		24.6%
Consumer and other	8,979		0.8%	9,644		1.0%
Gross Loans	1,149,340		100.0%	1,033,733		100.0%
Deferred loan fees	(3,893)			(3,618)
Allowance for loan losses	(14,097)			(11,859)
Loans, net	$	1,131,350		$	1,018,256

Schedule of Financing Receivable Credit Quality Indicators

The following tables summarize the risk category of the Company’s loan portfolio based upon the most recent analysis performed as of September 30, 2021 and December 31, 2020:


	Pass		Special Mention		Substandard		Doubtful		Total
	(dollars in thousands)
As of September 30, 2021
Real estate mortgages:
Construction and development	$	149,332	$	2,255	$	6,668	$	—	$	158,255
Residential	134,372		349		1,076		65		135,862
Commercial	621,743		17,595		8,356		—		647,694
Commercial and industrial	194,978		3,240		89		243		198,550
Consumer and other	8,972		—		7		—		8,979
Total	$	1,109,397	$	23,439	$	16,196	$	308	$	1,149,340

As of December 31, 2020
Real estate mortgages:
Construction and development	$	95,214	$	6,113	$	1,232	$	—	$	102,559
Residential	144,256		6,245		1,627		84		152,212
Commercial	471,555		36,754		6,614		—		514,923
Commercial and industrial	240,646		13,138		611		—		254,395
Consumer and other	8,186		1,435		23		—		9,644
Total	$	959,857	$	63,685	$	10,107	$	84	$	1,033,733

Schedule of Aging Analysis

The following tables present the aging of the recorded investment in loans and leases as of September 30, 2021 and December 31, 2020:


			Past Due Status (Accruing Loans)
	Current		30-59 Days		60-89 Days		90+ Days		Total Past Due		Nonaccrual		Total
As of September 30, 2021
Real estate mortgages:
Construction and development	$	156,283	$	—	$	—	$	—	$	—	$	1,972	$	158,255
Residential	134,687		411		425		—		836		339		135,862
Commercial	645,148		1,826		30		—		1,856		690		647,694
Commercial and industrial	197,819		431		—		—		431		300		198,550
Consumer and other	8,949		23		—		—		23		7		8,979
Total	$	1,142,886	$	2,691	$	455	$	—	$	3,146	$	3,308	$	1,149,340

As of December 31, 2020
Real estate mortgages:
Construction and development	$	101,375	$	117	$	90	$	—	$	207	$	977	$	102,559
Residential	150,837		382		94		42		518		857		152,212
Commercial	512,208		1,196		—		41		1,237		1,478		514,923
Commercial and industrial	252,473		626		1,212		—		1,838		84		254,395
Consumer and other	9,581		18		15		8		41		22		9,644
Total	$	1,026,474	$	2,339	$	1,411	$	91	$	3,841	$	3,418	$	1,033,733

Schedule of Allowance for Credit Loss


	Real Estate		Commercial		Consumer		Total
Allowance for loan losses:
Balance at December 31, 2020	$	8,057	$	3,609	$	193	$	11,859
Provision for loan losses	2,761		(442)		(69)		2,250
Loans charged off	(44)		—		(2)		(46)
Recoveries of loans previously charged off	12		14		8		34
Ending balance at September 30, 2021	$	10,786	$	3,181	$	130	$	14,097

Ending balance - individually evaluated for impairment	$	288	$	307	$	4	$	599
Ending balance - collectively evaluated for impairment	10,421		2,874		126		13,421
Ending balance - loans acquired with deteriorated credit quality	77		—		—		77
Total ending balance at September 30, 2021	$	10,786	$	3,181	$	130	$	14,097

Loans:
Ending balance - individually evaluated for impairment	$	16,105	$	332	$	30	$	16,467
Ending balance - collectively evaluated for impairment	924,406		198,218		8,949		1,131,573
Ending balance - loans acquired with deteriorated credit quality	1,300		—		—		1,300
Total ending balance at September 30, 2021	$	941,811	$	198,550	$	8,979	$	1,149,340

Allowance for Loans Losses (Continued)


	Real Estate		Commercial		Consumer		Total
Allowance for loan losses:
Balance at December 31, 2019	$	7,254	$	1,885	$	126	$	9,265
Provision for loan losses	1,118		1,723		(141)		2,700
Loans charged off	(48)		—		(15)		(63)
Recoveries of loans previously charged off	9		122		83		214
Ending balance at September 30, 2020	$	8,333	$	3,730	$	53	$	12,116

Ending balance - individually evaluated for impairment	$	2,115	$	406	$	—	$	2,521
Ending balance - collectively evaluated for impairment	6,079		3,324		53		9,456
Ending balance - loans acquired with deteriorated credit quality	139		—		—		139
Total ending balance at September 30, 2020	$	8,333	$	3,730	$	53	$	12,116

Loans:
Ending balance - individually evaluated for impairment	$	18,390	$	810	$	6	$	19,206
Ending balance - collectively evaluated for impairment	738,670		236,083		10,592		985,345
Ending balance - loans acquired with deteriorated credit quality	1,429		—		—		1,429
Total ending balance at September 30, 2020	$	758,489	$	236,893	$	10,598	$	1,005,980

Schedule of Impaired Loans


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
September 30, 2021
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	5,049	$	5,049	$	—	$	5,063
Residential	1,236		1,236		—		1,694
Commercial	8,987		8,694		—		8,328
Commercial and industrial	32		32		—		45
Consumer and other	18		18		—		22
Total with no related allowance recorded	15,322		15,029		—		15,152

With an allowance recorded:
Real estate mortgages:
Construction and development	1,376		1,376		131		1,382
Residential	478		549		125		490
Commercial	279		279		109		280
Commercial and industrial	300		300		307		319
Consumer and other	12		12		4		13
Total with an allowance recorded	2,445		2,516		676		2,484
Total impaired loans	$	17,767	$	17,545	$	676	$	17,636

Impaired Loans (Continued)


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
December 31, 2020
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	977	$	977	$	—	$	970
Residential	1,537		1,537		—		1,669
Commercial	5,117		5,117		—		5,425
Commercial and industrial	65		65		—		91
Consumer and other	22		22		—		24
Total with no related allowance recorded	7,718		7,718		—		8,179

With an allowance recorded:
Real estate mortgages:
Construction and development	644		644		106		668
Residential	1,557		1,628		628		1,636
Commercial	3,373		3,373		847		3,526
Commercial and industrial	791		791		478		886
Consumer and other	15		15		7		15
Total with an allowance recorded	6,380		6,451		2,066		6,731
Total impaired loans	$	14,098	$	14,169	$	2,066	$	14,910

Impaired Loans (Continued)

A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following tables detail our interest income recognized on impaired loans, by portfolio class in the nine months ended September 30, 2021 and 2020.


	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Nine Months Ended September 30, 2021
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	5,049	$	5,063	$	113
Residential	1,236		1,694		59
Commercial	8,987		8,328		242
Commercial and industrial	32		45		2
Consumer and other	18		22		1
Total with no related allowance recorded	15,322		15,152		417

With an allowance recorded:
Real estate mortgages:
Construction and development	1,376		1,382		14
Residential	478		490		12
Commercial	279		280		7
Commercial and industrial	300		319		11
Consumer and other	12		13		—
Total with an allowance recorded	2,445		2,484		44
Total impaired loans	$	17,767	$	17,636	$	461

Impaired Loans (Continued)


	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Nine Months Ended September 30, 2020
With no related allowance recorded:
Real estate mortgages:
Construction and development	$	1,490	$	1,506	$	78
Residential	2,345		1,759		95
Commercial	4,915		4,619		202
Commercial and industrial	340		340		34
Consumer and other	6		7		—
Total with no related allowance recorded	9,096		8,231		409

With an allowance recorded:
Real estate mortgages:
Construction and development	1,234		1,258		37
Residential	552		560		20
Commercial	9,283		9,706		100
Commercial and industrial	470		483		16
Consumer and other	—		—		—
Total with an allowance recorded	11,539		12,007		173
Total impaired loans	$	20,635	$	20,238	$	582

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2021

Banking and Thrift, Interest [Abstract]

Composition of Deposits

Major classifications of deposits are as follows:


	September 30, 2021		December 31, 2020
Noninterest-bearing transaction	$	380,111	$	290,867
Interest-bearing transaction	631,709		475,757
Savings	51,657		42,731
Time deposits, $250,000 and under	241,939		293,707
Time deposits, over $250,000	30,906		36,599
	$	1,336,322	$	1,139,661

Time Deposit Maturities

The scheduled maturities of time deposits at September 30, 2021 are as follows:


October 1, 2021 – September 30, 2022	$	228,097
October 1, 2022 – September 30, 2023	21,803
October 1, 2023 – September 30, 2024	17,888
October 1, 2024 – September 30, 2025	1,963
Thereafter	3,094
	$	272,845

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivative Instruments on the Balance Sheet


September 30, 2021						December 31, 2020
Derivatives not Designated as Hedging Instruments	Notional Amount		Balance Sheet Location	Fair Value		Derivatives not Designated as Hedging Instruments	Notional Amount		Balance Sheet Location	Fair Value
Interest Rate Products	$	82,657	Other Assets	$	1,638	Interest Rate Products	$	49,664	Other Assets	$	983
Interest Rate Products	82,657		Other Liabilities	(1,690)		Interest Rate Products	49,664		Other Liabilities	(1,013)

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

A summary of the Company’s commitments is as follows:


	September 30, 2021		December 31, 2020
Commitments to extend credit	$	243,867	$	181,925
Standby letters of credit	3,537		2,814
	$	247,404	$	184,739

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=124440162&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124440162&loc=d3e12053-110248

+ Details

REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2021

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Schedule of Regulatory Capital and Ratios


	Actual				Required for Capital Adequacy Purposes				Minimums To Be “Well Capitalized” Under Prompt Corrective Action

	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of September 30, 2021

Tier 1 capital (to average assets)
Company	$	153,193	10.02	%	$	61,171	4.00	%	$	—	—
Bank	$	164,348	10.75	%	$	61,171	4.00	%	$	76,464	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	153,193	11.36	%	$	94,360	7.00	%	$	—	—
Bank	$	164,348	12.19	%	$	94,360	7.00	%	$	87,620	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	153,193	11.36	%	$	114,580	8.50	%	$	—	—
Bank	$	164,348	12.19	%	$	114,580	8.50	%	$	107,840	8.00	%

Total capital (to risk-weighted assets)
Company	$	167,290	12.41	%	$	141,540	10.50	%	$	—	—
Bank	$	178,445	13.24	%	$	141,540	10.50	%	$	134,800	10.00	%


	Actual				Required for Capital Adequacy Purposes				Minimums To Be “Well Capitalized” Under Prompt Corrective Action

	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of December 31, 2020

Tier 1 capital (to average assets)
Company	$	118,837	9.24	%	$	51,426	4.00	%	$	—	—
Bank	$	130,852	10.18	%	$	51,426	4.00	%	$	77,139	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	118,837	10.63	%	$	78,257	7.00	%	$	—	—
Bank	$	130,852	11.70	%	$	78,257	7.00	%	$	72,667	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	118,837	10.63	%	$	95,026	8.50	%	$	—	—
Bank	$	130,852	11.70	%	$	95,026	8.50	%	$	89,436	8.00	%

Total capital (to risk-weighted assets)
Company	$	135,196	12.09	%	$	117,835	10.50	%	$	—	—
Bank	$	142,711	12.77	%	$	117,835	10.50	%	$	117,795	10.00	%

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Information related to the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 is as follows:


	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2021:
U.S. Treasury securities	$	7,955	$	—	$	7,955	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,572		—		9,572		—
State and municipal securities	51,752		—		51,752		—
Corporate debt securities	10,626		—		10,626		—
Asset based securities	10,746		—		10,746		—
Mortgage-backed GSE residential/multifamily	22,666		—		22,666		—
Other equity securities	9,227		9,227		—		—
Interest Rate Products - asset	1,638		—		1,638		—
Interest Rate Products - liabilities	(1,690)		—		(1,690)		—

December 31, 2020:
U.S. Treasury securities	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises (GSEs)	9,366		—		9,366		—
State and municipal securities	67,941		—		67,941		—
Corporate debt securities	8,469		—		8,469		—
Asset based securities	9,111		—		9,111		—
Mortgage-backed GSE residential/multifamily	19,114		—		19,114		—
Other equity securities	5,017		5,017		—		—
Interest Rate Products - asset	983		—		983		—
Interest Rate Products - liabilities	(1,013)		—		(1,013)		—

The carrying amount and estimated fair value of the Company’s financial instruments were as follows:


	September 30, 2021
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	177,822	$	177,822	$	—	$	—
Securities available for sale	113,317		—		113,317		—
Other equity securities	9,227		9,227		—		—
Loans held for sale	2,097		—		2,097		—
Trading assets	1,638		—		1,638		—
Loans, net	1,131,350		—		1,137,628		2,401
Bank owned life insurance	22,081		—		22,081		—
Annuities	12,968		—		12,968		—
Foreclosed assets	10,146		—		—		10,146
Accrued interest receivable	3,933		—		3,933		—
Restricted equity securities	2,600		—		—		2,600

Financial liabilities:
Deposits	$	1,336,322	$	—	$	1,308,710	$	—
Trading liabilities	1,690		—		1,690		—
FHLB advances	26,900		—		26,925		—
Other borrowings	12,498		—		12,498		—
Subordinated notes	—		—		—		—
Accrued interest payable	125		—		125		—

Fair Value of Financial Instruments (Continued)


	December 31, 2020
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	84,907	$	84,907	$	—	$	—
Securities available for sale	114,001		—		114,001		—
Other equity securities	5,017		5,017		—		—
Loans held for sale	5,696		—		5,696		—
Trading assets	983		—		983		—
Loans, net	1,018,256		—		1,030,104		4,392
Bank owned life insurance	22,458		—		22,458		—
Annuities	12,903		—		12,903		—
Foreclosed assets	10,224		—		—		10,224
Accrued interest receivable	4,243		—		4,243		—
Restricted equity securities	3,224		—		—		3,224

Financial liabilities:
Deposits	$	1,139,661	$	—	$	1,140,979	$	—
Trading liabilities	1,013		—		1,013		—
FHLB advances	30,900		—		30,962		—
Other borrowings	7,975		—		7,975		—
Subordinated notes	4,493		—		4,493		—
Accrued interest payable	278		—		278		—

Fair Value Measurements, Nonrecurring

Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2021 and December 31, 2020:


	Fair Value Measurements At Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2021:
Impaired loans	$	2,401	$	—	$	—	$	2,401
Foreclosed assets	10,146		—		—		10,146
Totals	$	12,547	$	—	$	—	12,547


	Fair Value		Quoted Prices In Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2020:
Impaired loans	$	4,392	$	—	$	—	$	4,392
Foreclosed assets	10,224		—		—		10,224
Totals	$	14,616	$	—	$	—	14,616

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2021, the significant unobservable inputs used in the fair value measurements are presented below.

Carrying

Amount

Valuation

Technique

Significant

Unobservable

Input

Weighted

Average

of Input

Nonrecurring:

Impaired loans

2,401

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

10,146

Appraisal

Appraisal discounts (%)

10-15%

For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements are presented below.

Carrying

Amount

Valuation

Technique

Significant

Unobservable

Input

Weighted

Average

of Input

Nonrecurring:

Impaired loans

4,392

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

10,224

Appraisal

Appraisal discounts (%)

10-15%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)			9 Months Ended
	Aug. 19, 2021	Aug. 12, 2021	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Reserve balances, Federal Reserve Bank			$ 0	$ 0
IPO
Finite-Lived Intangible Assets [Line Items]
Number of shares sold (in shares)		996,429
Sale of stock (in dollars per share)		$ 19.00
Over-Allotment Option
Finite-Lived Intangible Assets [Line Items]
Number of shares sold (in shares)	300,000
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, remaining amortization period			7 years
Minimum \| Buildings
Finite-Lived Intangible Assets [Line Items]
Premises and equipment, estimated useful life			10 years
Minimum \| Furniture and equipment
Finite-Lived Intangible Assets [Line Items]
Premises and equipment, estimated useful life			3 years
Maximum \| Buildings
Finite-Lived Intangible Assets [Line Items]
Premises and equipment, estimated useful life			39 years
Maximum \| Furniture and equipment
Finite-Lived Intangible Assets [Line Items]
Premises and equipment, estimated useful life			7 years

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
EARNINGS PER SHARE (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Basic Earnings Per Share:
Net Income	$ 4,921,000	$ 3,194,000	$ 14,508,000	$ 8,792,000
Weighted average common shares outstanding (in shares)	8,354,860	7,666,336	7,861,780	7,666,336
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.42	$ 1.84	$ 1.15
Diluted Earnings Per Share:
Net income allocated to common shareholders (in shares)	$ 4,914,000	$ 3,187,000	$ 14,487,000	$ 8,779,000
Weighted average common shares outstanding (in shares)	8,354,860	7,666,336	7,861,780	7,666,336
Net dilutive effect of:
Assumed exercises of stock options (in shares)	112,600	101,640	118,379	95,359
Average shares and dilutive potential common shares (in shares)	8,467,460	7,767,976	7,980,159	7,761,695
Dilutive earnings per share (in dollars per share)	$ 0.58	$ 0.41	$ 1.82	$ 1.13

SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 109,804	$ 109,696
Gross Unrealized Gains	3,679	4,435
Gross Unrealized Losses	(166)	(130)
Securities available for sale, at fair value	113,317	114,001
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	19,678	0
Gross Unrealized Gains	539	0
Gross Unrealized Losses	(18)	0
Securities held to maturity, at amortized cost	20,199	0
Total securities
Amortized Cost	129,482	109,696
Gross Unrealized Gains	4,218	4,435
Gross Unrealized Losses	(184)	(130)
Fair Value	133,516	114,001
Debt securities restricted	41,110	40,983
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,832	0
Gross Unrealized Gains	123	0
Gross Unrealized Losses	0	0
Securities available for sale, at fair value	7,955	0
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Securities held to maturity, at amortized cost	0	0
U.S. Government Sponsored Enterprises (GSEs)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,477	9,154
Gross Unrealized Gains	170	246
Gross Unrealized Losses	(75)	(34)
Securities available for sale, at fair value	9,572	9,366
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Securities held to maturity, at amortized cost	0	0
State and municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	49,181	64,468
Gross Unrealized Gains	2,603	3,531
Gross Unrealized Losses	(32)	(58)
Securities available for sale, at fair value	51,752	67,941
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	19,678	0
Gross Unrealized Gains	539	0
Gross Unrealized Losses	(18)	0
Securities held to maturity, at amortized cost	20,199	0
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,282	8,286
Gross Unrealized Gains	363	188
Gross Unrealized Losses	(19)	(5)
Securities available for sale, at fair value	10,626	8,469
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Securities held to maturity, at amortized cost	0	0
Asset based securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,635	9,035
Gross Unrealized Gains	123	76
Gross Unrealized Losses	(12)	0
Securities available for sale, at fair value	10,746	9,111
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Securities held to maturity, at amortized cost	0	0
Mortgage-backed GSE residential/multifamily
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,397	18,753
Gross Unrealized Gains	297	394
Gross Unrealized Losses	(28)	(33)
Securities available for sale, at fair value	22,666	19,114
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Securities held to maturity, at amortized cost	$ 0	$ 0

SECURITIES - Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Amortized Cost
Due in less than one year	$ 304	$ 0
Due from one year to five years	658	1,200
Due after five to ten years	28,351	15,518
Due after ten years	58,094	74,225
Mortgage-backed securities	22,397	18,753
Amortized Cost	109,804	109,696
Fair Value
Due in less than one year	304	0
Due from one year to five years	660	1,241
Due after five to ten years	28,992	15,873
Due after ten years	60,695	77,773
Mortgage-backed securities	22,666	19,114
Securities available for sale, at fair value	113,317	114,001
Amortized Cost
Due in less than one year	0	0
Due from one year to five years	0	0
Due after five to ten years	1,101	0
Due after ten years	18,577	0
Mortgage-backed securities	0	0
Amortized Cost	19,678	0
Securities Held to Maturity
Due in less than one year	0	0
Due from one year to five years	0	0
Due after five to ten years	1,125	0
Due after ten years	19,074	0
Mortgage-backed securities	0	0
Securities held to maturity, at amortized cost	20,199	0
Total securities
Amortized Cost	129,482	109,696
Fair Value	$ 133,516	$ 114,001

SECURITIES - Restricted Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Restricted equity securities, at cost	$ 2,600	$ 3,224
Federal Home Loan Bank stock
Debt and Equity Securities, FV-NI [Line Items]
Restricted equity securities, at cost	1,675	2,299
First National Banker’s Bankshares, Inc. stock
Debt and Equity Securities, FV-NI [Line Items]
Restricted equity securities, at cost	675	675
Pacific Coast Banker’s Bank stock
Debt and Equity Securities, FV-NI [Line Items]
Restricted equity securities, at cost	$ 250	$ 250

SECURITIES - Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2021 USD ($) security	Dec. 31, 2020 USD ($)
Gross Unrealized Losses
Less Than Twelve Months	$ (121)	$ (130)
Over Twelve Months	(45)	0
Total Unrealized Losses	(166)	(130)
Fair Value
Less Than Twelve Months	18,545	16,128
Over Twelve Months	4,033	0
Gross Unrealized Losses
Less Than Twelve Months	(18)	0
Over Twelve Months	0	0
Total Unrealized Losses	(18)	0
Fair Value
Less Than Twelve Months	2,865	0
Over Twelve Months	0	0
Gross Unrealized Losses
Less Than Twelve Months	(139)	(130)
Over Twelve Months	(45)	0
Total Unrealized Losses	(184)	(130)
Fair Value
Less Than Twelve Months	21,410	16,128
Over Twelve Months	$ 4,033	0
Number of securities in loss position \| security	33,000
U.S. Treasury securities
Gross Unrealized Losses
Less Than Twelve Months	$ 0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	0	0
U.S. Government Sponsored Enterprises (GSEs)
Gross Unrealized Losses
Less Than Twelve Months	(47)	(34)
Over Twelve Months	(28)	0
Total Unrealized Losses	(75)	(34)
Fair Value
Less Than Twelve Months	1,624	2,051
Over Twelve Months	1,963	0
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	0	0
State and municipal securities
Gross Unrealized Losses
Less Than Twelve Months	(32)	(58)
Over Twelve Months	0	0
Total Unrealized Losses	(32)	(58)
Fair Value
Less Than Twelve Months	7,925	4,979
Over Twelve Months	0	0
Gross Unrealized Losses
Less Than Twelve Months	(18)	0
Over Twelve Months	0	0
Total Unrealized Losses	(18)	0
Fair Value
Less Than Twelve Months	2,865	0
Over Twelve Months	0	0
Corporate debt securities
Gross Unrealized Losses
Less Than Twelve Months	(19)	(5)
Over Twelve Months	0	0
Total Unrealized Losses	(19)	(5)
Fair Value
Less Than Twelve Months	2,513	1,495
Over Twelve Months	0	0
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Asset based securities
Gross Unrealized Losses
Less Than Twelve Months	(12)	0
Over Twelve Months	0	0
Total Unrealized Losses	(12)	0
Fair Value
Less Than Twelve Months	3,324	960
Over Twelve Months	0	0
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Mortgage-backed GSE residential/multifamily
Gross Unrealized Losses
Less Than Twelve Months	(11)	(33)
Over Twelve Months	(17)	0
Total Unrealized Losses	(28)	(33)
Fair Value
Less Than Twelve Months	3,159	6,643
Over Twelve Months	2,070	0
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Total Unrealized Losses	0	0
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	$ 0	$ 0

SECURITIES - Other-Than-Temporary Impairment (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Securities considered other than temporary impairment	$ 0	$ 0

LOANS - Composition of Loans (Details) $ in Thousands	3 Months Ended	9 Months Ended
LOANS - Composition of Loans (Details) $ in Thousands	Sep. 30, 2021 USD ($) loanPortfolioSegment loan	Sep. 30, 2021 USD ($) loanPortfolioSegment loan	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 1,149,340	$ 1,149,340	$ 1,033,733	$ 1,005,980
% of Total	100.00%	100.00%	100.00%
Deferred loan fees	$ (3,893)	$ (3,893)	$ (3,618)
Allowance for loan losses	(14,097)	(14,097)	(11,859)	(12,116)	$ (9,265)
Loans, net	$ 1,131,350	$ 1,131,350	1,018,256
Number of loan portfolio segments \| loanPortfolioSegment	3	3
Loans, net of unearned income	$ 1,145,447	$ 1,145,447	1,030,115
Real estate mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	941,811	941,811		758,489
Allowance for loan losses	(10,786)	(10,786)	(8,057)	(8,333)	(7,254)
Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 158,255	$ 158,255	$ 102,559
% of Total	13.80%	13.80%	9.90%
Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 135,862	$ 135,862	$ 152,212
% of Total	11.80%	11.80%	14.70%
Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 647,694	$ 647,694	$ 514,923
% of Total	56.30%	56.30%	49.80%
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 198,550	$ 198,550	$ 254,395	236,893
% of Total	17.30%	17.30%	24.60%
Allowance for loan losses	$ (3,181)	$ (3,181)	$ (3,609)	(3,730)	(1,885)
Commercial and industrial \| Paycheck Protection Plan
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loans outstanding \| loan	109	109
Loans, net of unearned income	$ 20,265	$ 20,265
Deferred loan fees	752	752
Adjustment to loan yield	630	2,222
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 8,979	$ 8,979	$ 9,644	10,598
% of Total	0.80%	0.80%	1.00%
Allowance for loan losses	$ (130)	$ (130)	$ (193)	$ (53)	$ (126)

LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	$ 1,149,340	$ 1,033,733	$ 1,005,980
Real estate mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	941,811		758,489
Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	158,255	102,559
Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	135,862	152,212
Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	647,694	514,923
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	198,550	254,395	236,893
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	8,979	9,644	$ 10,598
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	1,109,397	959,857
Pass \| Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	149,332	95,214
Pass \| Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	134,372	144,256
Pass \| Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	621,743	471,555
Pass \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	194,978	240,646
Pass \| Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	8,972	8,186
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	23,439	63,685
Special Mention \| Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	2,255	6,113
Special Mention \| Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	349	6,245
Special Mention \| Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	17,595	36,754
Special Mention \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	3,240	13,138
Special Mention \| Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	0	1,435
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	16,196	10,107
Substandard \| Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	6,668	1,232
Substandard \| Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	1,076	1,627
Substandard \| Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	8,356	6,614
Substandard \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	89	611
Substandard \| Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	7	23
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	308	84
Doubtful \| Real estate mortgages \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	0	0
Doubtful \| Real estate mortgages \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	65	84
Doubtful \| Real estate mortgages \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	0	0
Doubtful \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	243	0
Doubtful \| Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Gross loans	$ 0	$ 0

LOANS - Aging of Recorded Investment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	$ 1,149,340	$ 1,033,733	$ 1,005,980
Nonaccrual	3,308	3,418
Real estate mortgages
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	941,811		758,489
Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	158,255	102,559
Nonaccrual	1,972	977
Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	135,862	152,212
Nonaccrual	339	857
Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	647,694	514,923
Nonaccrual	690	1,478
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	198,550	254,395	236,893
Nonaccrual	300	84
Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	8,979	9,644	$ 10,598
Nonaccrual	7	22
Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,142,886	1,026,474
Current \| Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	156,283	101,375
Current \| Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	134,687	150,837
Current \| Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	645,148	512,208
Current \| Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	197,819	252,473
Current \| Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	8,949	9,581
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	3,146	3,841
Total Past Due \| Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	207
Total Past Due \| Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	836	518
Total Past Due \| Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,856	1,237
Total Past Due \| Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	431	1,838
Total Past Due \| Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	23	41
30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	2,691	2,339
30-59 Days \| Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	117
30-59 Days \| Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	411	382
30-59 Days \| Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,826	1,196
30-59 Days \| Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	431	626
30-59 Days \| Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	23	18
60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	455	1,411
60-89 Days \| Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	90
60-89 Days \| Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	425	94
60-89 Days \| Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	30	0
60-89 Days \| Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	1,212
60-89 Days \| Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	15
90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	91
90+ Days \| Real estate mortgages \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	0
90+ Days \| Real estate mortgages \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	42
90+ Days \| Real estate mortgages \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	41
90+ Days \| Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0	0
90+ Days \| Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	$ 0	$ 8

LOANS - Allowance for Loans Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Allowance for loan losses:
Beginning balance	$ 11,859	$ 9,265
Provision for loan losses	2,250	2,700
Loans charged off	(46)	(63)
Recoveries of loans previously charged off	34	214
Ending balance	14,097	12,116
Ending balance - individually evaluated for impairment	599	2,521
Ending balance - collectively evaluated for impairment	13,421	9,456
Loans:
Ending balance - individually evaluated for impairment	16,467	19,206
Ending balance - collectively evaluated for impairment	1,131,573	985,345
Gross loans	1,149,340	1,005,980	$ 1,033,733
Loans acquired with credit deterioration
Allowance for loan losses:
Ending balance	77	139
Loans:
Gross loans	1,300	1,429
Real estate mortgages
Allowance for loan losses:
Beginning balance	8,057	7,254
Provision for loan losses	2,761	1,118
Loans charged off	(44)	(48)
Recoveries of loans previously charged off	12	9
Ending balance	10,786	8,333
Ending balance - individually evaluated for impairment	288	2,115
Ending balance - collectively evaluated for impairment	10,421	6,079
Loans:
Ending balance - individually evaluated for impairment	16,105	18,390
Ending balance - collectively evaluated for impairment	924,406	738,670
Gross loans	941,811	758,489
Real estate mortgages \| Loans acquired with credit deterioration
Allowance for loan losses:
Ending balance	77	139
Loans:
Gross loans	1,300	1,429
Commercial and industrial
Allowance for loan losses:
Beginning balance	3,609	1,885
Provision for loan losses	(442)	1,723
Loans charged off	0	0
Recoveries of loans previously charged off	14	122
Ending balance	3,181	3,730
Ending balance - individually evaluated for impairment	307	406
Ending balance - collectively evaluated for impairment	2,874	3,324
Loans:
Ending balance - individually evaluated for impairment	332	810
Ending balance - collectively evaluated for impairment	198,218	236,083
Gross loans	198,550	236,893	254,395
Commercial and industrial \| Loans acquired with credit deterioration
Allowance for loan losses:
Ending balance	0	0
Loans:
Gross loans	0	0
Consumer and other
Allowance for loan losses:
Beginning balance	193	126
Provision for loan losses	(69)	(141)
Loans charged off	(2)	(15)
Recoveries of loans previously charged off	8	83
Ending balance	130	53
Ending balance - individually evaluated for impairment	4	0
Ending balance - collectively evaluated for impairment	126	53
Loans:
Ending balance - individually evaluated for impairment	30	6
Ending balance - collectively evaluated for impairment	8,949	10,592
Gross loans	8,979	10,598	$ 9,644
Consumer and other \| Loans acquired with credit deterioration
Allowance for loan losses:
Ending balance	0	0
Loans:
Gross loans	$ 0	$ 0

LOANS - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
LOANS - Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
With no related allowance recorded:
Recorded Investment	$ 15,322	$ 9,096	$ 7,718
Unpaid Principal Balance	15,029		7,718
Average Recorded Investment	15,152	8,231	8,179
Interest Income Recognized	417	409
With an allowance recorded:
Recorded Investment	2,445	11,539	6,380
Unpaid Principal Balance	2,516		6,451
Related Allowance	676		2,066
Average Recorded Investment	2,484	12,007	6,731
Interest Income Recognized	44	173
Total impaired loans
Recorded Investment	17,767	20,635	14,098
Unpaid Principal Balance	17,545		14,169
Average Recorded Investment	17,636	20,238	14,910
Interest Income Recognized	461	582
Real estate mortgages \| Construction and development
With no related allowance recorded:
Recorded Investment	5,049	1,490	977
Unpaid Principal Balance	5,049		977
Average Recorded Investment	5,063	1,506	970
Interest Income Recognized	113	78
With an allowance recorded:
Recorded Investment	1,376	1,234	644
Unpaid Principal Balance	1,376		644
Related Allowance	131		106
Average Recorded Investment	1,382	1,258	668
Interest Income Recognized	14	37
Real estate mortgages \| Residential
With no related allowance recorded:
Recorded Investment	1,236	2,345	1,537
Unpaid Principal Balance	1,236		1,537
Average Recorded Investment	1,694	1,759	1,669
Interest Income Recognized	59	95
With an allowance recorded:
Recorded Investment	478	552	1,557
Unpaid Principal Balance	549		1,628
Related Allowance	125		628
Average Recorded Investment	490	560	1,636
Interest Income Recognized	12	20
Real estate mortgages \| Commercial
With no related allowance recorded:
Recorded Investment	8,987	4,915	5,117
Unpaid Principal Balance	8,694		5,117
Average Recorded Investment	8,328	4,619	5,425
Interest Income Recognized	242	202
With an allowance recorded:
Recorded Investment	279	9,283	3,373
Unpaid Principal Balance	279		3,373
Related Allowance	109		847
Average Recorded Investment	280	9,706	3,526
Interest Income Recognized	7	100
Commercial and industrial
With no related allowance recorded:
Recorded Investment	32	340	65
Unpaid Principal Balance	32		65
Average Recorded Investment	45	340	91
Interest Income Recognized	2	34
With an allowance recorded:
Recorded Investment	300	470	791
Unpaid Principal Balance	300		791
Related Allowance	307		478
Average Recorded Investment	319	483	886
Interest Income Recognized	11	16
Consumer and other
With no related allowance recorded:
Recorded Investment	18	6	22
Unpaid Principal Balance	18		22
Average Recorded Investment	22	7	24
Interest Income Recognized	1	0
With an allowance recorded:
Recorded Investment	12	0	15
Unpaid Principal Balance	12		15
Related Allowance	4		7
Average Recorded Investment	13	0	$ 15
Interest Income Recognized	$ 0	$ 0

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Banking and Thrift, Interest [Abstract]
Noninterest-bearing transaction	$ 380,111	$ 290,867
Interest-bearing transaction	631,709	475,757
Savings	51,657	42,731
Time deposits, $250,000 and under	241,939	293,707
Time deposits, over $250,000	30,906	36,599
Total deposits	$ 1,336,322	$ 1,139,661

DEPOSITS - Schedule Maturities of Time Deposits (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Banking and Thrift, Interest [Abstract]
October 1, 2021 – September 30, 2022	$ 228,097
October 1, 2022 – September 30, 2023	21,803
October 1, 2023 – September 30, 2024	17,888
October 1, 2024 – September 30, 2025	1,963
Thereafter	3,094
Total time deposits	$ 272,845

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Banking and Thrift, Interest [Abstract]
Brokered deposits	$ 34,110	$ 34,151
Overdrawn deposits reclassified as loans	$ 117	$ 166

SUBORDINATED NOTES (Details) - Subordinated Notes due July 2026 - Subordinated Debt - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Jun. 23, 2016
Debt Instrument [Line Items]
Face amount			$ 4,500
Interest rate, stated percentage			6.625%
Debt issuance costs, gross	$ 79
Debt issuance costs, net	$ 0	$ 7
Amortization period	60 months
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	5.412%

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Values of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Collateral already posted	$ 400	$ 400
Loss recognized in income from fair value adjustment	(5)	(23)
Loss recognized in income from fee income	96	960
Interest Rate Products \| Not Designated as Hedging Instrument
Other Assets
Notional Amount	82,657	82,657	$ 49,664
Fair Value	1,638	1,638	983
Other Liabilities
Notional Amount	82,657	82,657	49,664
Fair Value	$ (1,690)	$ (1,690)	$ (1,013)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Credit-risk-related Contingent Features (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of derivatives in a net liability position	$ 1,671
Termination value	1,671
Required collateral	$ 400

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Guarantor Obligations [Line Items]
Exposure to credit loss	$ 247,404,000		$ 184,739,000
Losses on standby letters of credit	2,250,000	$ 2,700,000
Commitments to extend credit
Guarantor Obligations [Line Items]
Exposure to credit loss	243,867,000		181,925,000
Standby letters of credit
Guarantor Obligations [Line Items]
Exposure to credit loss	3,537,000		$ 2,814,000
Losses on standby letters of credit	$ 0	$ 0

CONCENTRATIONS OF CREDIT (Details) $ in Thousands	9 Months Ended
CONCENTRATIONS OF CREDIT (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Concentration Risk [Line Items]
Commitments to expend in excess of capital, secured basis, percentage	20.00%
Commitments to expend in excess of capital, secured basis	$ 35,451
Commitments to expend in excess of capital, unsecured basis, percentage	10.00%
Commitments to expend in excess of capital, unsecured basis	$ 17,725
Real estate mortgages \| Financing Receivable \| Loan Portfolio Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	82.00%

STOCKHOLDERS’ EQUITY (Details) - shares	Sep. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock issued (in shares)	9,012,857	7,678,195
Common stock outstanding (in shares)	9,012,857	7,678,195
Nonvoting Common Stock
Class of Stock [Line Items]
Common stock issued (in shares)		805,715
Common stock outstanding (in shares)		805,715

REGULATORY MATTERS (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Company
Tier 1 capital (to average assets)
Actual amount	$ 153,193	$ 118,837
Actual ratio	0.1002	0.0924
Required for capital adequacy purposes, amount	$ 61,171	$ 51,426
Required for capital adequacy purposes, ratio	0.0400	0.0400
CET 1 capital (to risk-weighted assets)
Actual amount	$ 153,193	$ 118,837
Actual ratio	0.1136	0.1063
Required for capital adequacy purposes, amount	$ 94,360	$ 78,257
Required for capital adequacy purposes, ratio	0.0700	0.0700
Tier 1 capital (to risk-weighted assets)
Actual amount	$ 153,193	$ 118,837
Actual ratio	0.1136	0.1063
Required for capital adequacy purposes, amount	$ 114,580	$ 95,026
Required for capital adequacy purposes, ratio	0.0850	0.0850
Total capital (to risk-weighted assets)
Actual amount	$ 167,290	$ 135,196
Actual ratio	0.1241	0.1209
Required for capital adequacy purposes, amount	$ 141,540	$ 117,835
Required for capital adequacy purposes, ratio	0.1050	0.1050
The Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Retained earnings available for dividend declaration without regulatory approval	$ 18,519
Tier 1 capital (to average assets)
Actual amount	$ 164,348	$ 130,852
Actual ratio	0.1075	0.1018
Required for capital adequacy purposes, amount	$ 61,171	$ 51,426
Required for capital adequacy purposes, ratio	0.0400	0.0400
Minimums to be “well capitalized” under prompt corrective action, amount	$ 76,464	$ 77,139
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0500	0.0500
CET 1 capital (to risk-weighted assets)
Actual amount	$ 164,348	$ 130,852
Actual ratio	0.1219	0.1170
Required for capital adequacy purposes, amount	$ 94,360	$ 78,257
Required for capital adequacy purposes, ratio	0.0700	0.0700
Minimums to be “well capitalized” under prompt corrective action, amount	$ 87,620	$ 72,667
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0650	0.0650
Tier 1 capital (to risk-weighted assets)
Actual amount	$ 164,348	$ 130,852
Actual ratio	0.1219	0.1170
Required for capital adequacy purposes, amount	$ 114,580	$ 95,026
Required for capital adequacy purposes, ratio	0.0850	0.0850
Minimums to be “well capitalized” under prompt corrective action, amount	$ 107,840	$ 89,436
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0800	0.0800
Total capital (to risk-weighted assets)
Actual amount	$ 178,445	$ 142,711
Actual ratio	0.1324	0.1277
Required for capital adequacy purposes, amount	$ 141,540	$ 117,835
Required for capital adequacy purposes, ratio	0.1050	0.1050
Minimums to be “well capitalized” under prompt corrective action, amount	$ 134,800	$ 117,795
Minimums to be “well capitalized” under prompt corrective action, ratio	0.1000	0.1000

FAIR VALUE OF ASSETS AND LIABILITIES - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	$ 12,547	$ 14,616
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	2,401	4,392
Foreclosed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	10,146	10,224
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 1 \| Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 1 \| Foreclosed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 2 \| Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 2 \| Foreclosed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	12,547	14,616
Fair Value, Inputs, Level 3 \| Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	2,401	4,392
Fair Value, Inputs, Level 3 \| Foreclosed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	$ 10,146	$ 10,224

FAIR VALUE OF ASSETS AND LIABILITIES - Quantitative Disclosures for Level 3 Fair Value Measurements (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Recorded Investment	$ 17,767	$ 14,098	$ 20,635
Provision for loan losses	75	1,828
Fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Recorded Investment	3,077	6,458
Cost
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Recorded Investment	14,690	7,640
Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, fair value disclosure	$ 12,547	$ 14,616
Impaired loans \| Measurement Input, Discount Rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Measurement Input	0.15	0.15
Impaired loans \| Measurement Input, Discount Rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Measurement Input	0.20	0.20
Impaired loans \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, fair value disclosure	$ 2,401	$ 4,392
Foreclosed assets \| Measurement Input, Discount Rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Measurement Input	0.10	0.10
Foreclosed assets \| Measurement Input, Discount Rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Measurement Input	0.15	0.15
Foreclosed assets \| Fair Value, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Assets, fair value disclosure	$ 10,146	$ 10,224

FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets:
Cash and cash equivalents	$ 177,822	$ 84,907
Securities available for sale, at fair value	113,317	114,001
Other equity securities	9,227	5,017
Loans held for sale	2,097	5,696
Trading assets	1,638	983
Loans, net	1,131,350	1,018,256
Bank owned life insurance	22,081	22,458
Annuities	12,968	12,903
Foreclosed assets	10,146	10,224
Accrued interest receivable	3,933	4,243
Restricted equity securities, at cost	2,600	3,224
Financial liabilities:
Deposits	1,336,322	1,139,661
Trading liabilities	1,690	1,013
FHLB advances	26,900	30,900
Other borrowings	12,498	7,975
Subordinated notes	0	4,493
Accrued interest payable	125	278
Fair Value, Inputs, Level 1
Financial assets:
Cash and cash equivalents	177,822	84,907
Securities available for sale, at fair value	0	0
Other equity securities	9,227	5,017
Loans held for sale	0	0
Trading assets	0	0
Loans, net	0	0
Bank owned life insurance	0	0
Annuities	0	0
Foreclosed assets	0	0
Accrued interest receivable	0	0
Restricted equity securities, at cost	0	0
Financial liabilities:
Deposits	0	0
Trading liabilities	0	0
FHLB advances	0	0
Other borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Fair Value, Inputs, Level 2
Financial assets:
Cash and cash equivalents	0	0
Securities available for sale, at fair value	113,317	114,001
Other equity securities	0	0
Loans held for sale	2,097	5,696
Trading assets	1,638	983
Loans, net	1,137,628	1,030,104
Bank owned life insurance	22,081	22,458
Annuities	12,968	12,903
Foreclosed assets	0	0
Accrued interest receivable	3,933	4,243
Restricted equity securities, at cost	0	0
Financial liabilities:
Deposits	1,308,710	1,140,979
Trading liabilities	1,690	1,013
FHLB advances	26,925	30,962
Other borrowings	12,498	7,975
Subordinated notes	0	4,493
Accrued interest payable	125	278
Fair Value, Inputs, Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities available for sale, at fair value	0	0
Other equity securities	0	0
Loans held for sale	0	0
Trading assets	0	0
Loans, net	2,401	4,392
Bank owned life insurance	0	0
Annuities	0	0
Foreclosed assets	10,146	10,224
Accrued interest receivable	0	0
Restricted equity securities, at cost	2,600	3,224
Financial liabilities:
Deposits	0	0
Trading liabilities	0	0
FHLB advances	0	0
Other borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	$ 0	$ 0

FAIR VALUE OF ASSETS AND LIABILITIES - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 113,317	$ 114,001
Other equity securities, at fair value	9,227	5,017
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Other equity securities, at fair value	9,227	5,017
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	113,317	114,001
Other equity securities, at fair value	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Other equity securities, at fair value	0	0
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities, at fair value	9,227	5,017
Interest Rate Products - asset	1,638	983
Interest Rate Products - liabilities	(1,690)	(1,013)
Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities, at fair value	9,227	5,017
Interest Rate Products - asset	0	0
Interest Rate Products - liabilities	0	0
Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities, at fair value	0	0
Interest Rate Products - asset	1,638	983
Interest Rate Products - liabilities	(1,690)	(1,013)
Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities, at fair value	0	0
Interest Rate Products - asset	0	0
Interest Rate Products - liabilities	0	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	7,955	0
U.S. Treasury securities \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	7,955	0
U.S. Treasury securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
U.S. Treasury securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	7,955	0
U.S. Treasury securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
U.S. Government Sponsored Enterprises (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	9,572	9,366
U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	9,572	9,366
U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	9,572	9,366
U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
State and municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	51,752	67,941
State and municipal securities \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	51,752	67,941
State and municipal securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
State and municipal securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	51,752	67,941
State and municipal securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,626	8,469
Corporate debt securities \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,626	8,469
Corporate debt securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Corporate debt securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,626	8,469
Corporate debt securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Asset based securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,746	9,111
Asset based securities \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,746	9,111
Asset based securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Asset based securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	10,746	9,111
Asset based securities \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Mortgage-backed GSE residential/multifamily
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	22,666	19,114
Mortgage-backed GSE residential/multifamily \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	22,666	19,114
Mortgage-backed GSE residential/multifamily \| Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Mortgage-backed GSE residential/multifamily \| Fair Value, Recurring \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	22,666	19,114
Mortgage-backed GSE residential/multifamily \| Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 0	$ 0