0001628280-24-047802 | 10-Q | XBRL Viewer | Southern States Bancshares INC

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SUBORDINATED NOTES	9 Months Ended
SUBORDINATED NOTES	Sep. 30, 2024
Debt Disclosure [Abstract]
SUBORDINATED NOTES	SUBORDINATED NOTES On February 7, 2022, the Company issued $48,000 of Fixed-to-Floating Rate Subordinated Notes due February 2032 (the “Notes”). The Notes bear interest at 3.5% per annum, payable quarterly in arrears. From and including February 7, 2027, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to a Three-Month Term Secured Overnight Financing Rate plus 205 basis points, payable quarterly in arrears. The Company will be entitled to redeem the Notes, in whole or in part, on any interest payment on or after February 7, 2027, and to redeem the Notes in whole upon certain other events. On September 19, 2024, the Company redeemed $500 of the Notes held by Century Bank in connection with the acquisition, resulting in a principal amount $47,500 at September 30, 2024. Issuance costs related to the Notes totaled $1,093 and have been netted against the subordinated notes liability on the balance sheet. At September 30, 2024, the remaining balance of the debt issuance cost was $516. 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 October 26, 2022, the Company issued $40,000 of Fixed-to-Floating Rate Subordinated Notes due October 2032 (the “2032 Notes”). The 2032 Notes bear interest at 7.0% per annum, payable quarterly in arrears. From and including October 26, 2027, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to a Three-Month Term Secured Overnight Financing Rate plus 306 basis points, payable quarterly in arrears. The Company will be entitled to redeem the 2032 Notes, in whole or in part, on any interest payment on or after October 26, 2027, and to redeem the 2032 Notes in whole upon certain other events. Issuance costs related to the 2032 Notes totaled $832 and have been netted against the subordinated notes liability on the balance sheet. At September 30, 2024, the remaining balance of the debt issuance cost was $514. 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 July 31, 2024, the Company assumed Fixed-to-Floating Rate Subordinated Notes due December 2031 from the acquisition of Century Bank (the “Century Notes”) in an aggregate principal amount, net of premium adjustments, of $4.7 million. The Century Notes will mature on December 22, 2031, and through December 22, 2026 will bear a fixed rate of interest of 3.5% per annum, payable quarterly in arrears. From and including December 22, 2026, to but excluding the maturity date or early redemption date, the interest will reset quarterly to a floating rate per annum equal to the then current Three-Month Term Secured Overnight Financing Rate plus 242 basis points, payable quarterly in arrears. Issuance costs related to the Century Notes totaled $172 and have been netted against the subordinated notes liability on the balance sheet. At September 30, 2024, the remaining balance of the debt issuance cost was $77. The debt issuance costs are being amortized using the straight line method over sixty months and are recorded as a component of interest expense.

- 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.

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+ Details

ACQUISITION ACTIVITY (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Acquired Assets and Assumed Liabilities

The acquired assets and assumed liabilities as of July 31, 2024, as well as the adjustments to record the assets and liabilities at fair value, are presented in the following table:


			Fair Value		As Recorded by
	Acquired		Adjustments		the Company

Cash and cash equivalents	$	66,605	$	—	$	66,605
Securities available for sale - sold day 1	104,724		—		104,724
Securities available for sale	2,750		(286)		2,464
Restricted equity securities	734		—		734
Time deposits held as investments	10,897		(90)		10,807
Loans	132,618		(4,747)		127,871
Less allowance for credit losses	(1,619)		1,619		—
Core deposit intangible	—		8,896		8,896
Premises and equipment, net	3,903		1,610		5,513
Other assets	9,203		—		9,203
Total assets acquired	$	329,815	$	7,002	$	336,817

Deposits	308,535		212		308,747
Subordinated notes	5,000		(307)		4,693
Accrued expenses and other liabilities	2,871		—		2,871
Total liabilities assumed	$	316,406	$	(95)	$	316,311
Net assets acquired					20,506
Cash					3,150
Common stock issued (961,920 shares)					31,474
Total consideration paid					34,624
Goodwill					$	14,118

Schedule of Pro-Forma Financial Information

The following table presents pro-forma financial information as if the acquisition of CBB Bancorp had occurred on January 1, 2023. The results of operations of CBB Bancorp and Century Bank were included in the Company’s results beginning on August 1, 2024. The pro-forma financial information is not necessarily indicative of the results of operations had the acquisition been effective as of this date. No assumptions have been applied to the pro-forma results of operations regarding revenue enhancements, expenses efficiencies or asset dispositions. The pro-forma financials below excludes merger-related third party expenses, the accretion of fair value marks on securities available for sale, time deposits held as investments, acquired loans, deposits, as well as the amortization of fair value marks on core deposit intangible and subordinated notes.


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Net interest income	$	24,752	$	23,058	$	71,962	$	67,311
Net income	8,986		8,006		27,477		26,699

SUBORDINATED NOTES (Details) - USD ($)				9 Months Ended
SUBORDINATED NOTES (Details) - USD ($)	Jul. 31, 2024	Oct. 26, 2022	Feb. 07, 2022	Sep. 30, 2024	Sep. 19, 2024
Debt Instrument [Line Items]
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR) [Member]	Secured Overnight Financing Rate (SOFR) [Member]	Secured Overnight Financing Rate (SOFR) [Member]
Subordinated Debt \| Subordinated Notes due February 2032
Debt Instrument [Line Items]
Face amount			$ 48,000,000
Interest rate, stated percentage			3.50%
Basis spread on variable rate			2.05%
Redeemed amount					$ 500,000
Outstanding debt, principal amount				$ 47,500,000
Debt issuance costs, gross			$ 1,093,000
Debt issuance costs, net				$ 516,000
Amortization period (in months)				60 months
Subordinated Debt \| Subordinated Notes due October 2032
Debt Instrument [Line Items]
Face amount		$ 40,000,000
Interest rate, stated percentage		7.00%
Basis spread on variable rate		3.06%
Debt issuance costs, gross		$ 832,000
Debt issuance costs, net				$ 514,000
Amortization period (in months)				60 months
Subordinated Debt \| Subordinated Notes due December 2031
Debt Instrument [Line Items]
Basis spread on variable rate	2.42%
Debt issuance costs, gross					$ 172,000
Debt issuance costs, net				$ 77,000
Amortization period (in months)				60 months
Subordinated Debt \| Subordinated Notes due December 2031 \| CCB Bancorp and Century Bank
Debt Instrument [Line Items]
Interest rate, stated percentage	3.50%
Long-term debt	$ 4,700,000

REGULATORY MATTERS - Schedule of Regulatory Capital and Ratios (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Company
Tier 1 capital (to average assets)
Actual amount	$ 236,918	$ 205,582
Actual ratio	0.0864	0.0899
Required for capital adequacy purposes, amount	$ 109,657	$ 91,503
Required for capital adequacy purposes, ratio	0.0400	0.0400
CET 1 capital (to risk-weighted assets)
Actual amount	$ 236,918	$ 205,582
Actual ratio	0.0936	0.0920
Required for capital adequacy purposes, amount	$ 177,214	$ 156,378
Required for capital adequacy purposes, ratio	0.0700	0.0700
Tier 1 capital (to risk-weighted assets)
Actual amount	$ 236,918	$ 205,582
Actual ratio	0.0936	0.0920
Required for capital adequacy purposes, amount	$ 215,188	$ 189,888
Required for capital adequacy purposes, ratio	0.0850	0.0850
Total capital (to risk-weighted assets)
Actual amount	$ 358,884	$ 319,199
Actual ratio	0.1418	0.1429
Required for capital adequacy purposes, amount	$ 265,820	$ 234,568
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	$ 99,393
Tier 1 capital (to average assets)
Actual amount	$ 314,681	$ 274,850
Actual ratio	0.1148	0.1201
Required for capital adequacy purposes, amount	$ 109,657	$ 91,503
Required for capital adequacy purposes, ratio	0.0400	0.0400
Minimums to be “well capitalized” under prompt corrective action, amount	$ 137,071	$ 114,379
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0500	0.0500
CET 1 capital (to risk-weighted assets)
Actual amount	$ 314,681	$ 274,850
Actual ratio	0.1243	0.1230
Required for capital adequacy purposes, amount	$ 177,214	$ 156,378
Required for capital adequacy purposes, ratio	0.0700	0.0700
Minimums to be “well capitalized” under prompt corrective action, amount	$ 164,555	$ 145,209
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0650	0.0650
Tier 1 capital (to risk-weighted assets)
Actual amount	$ 314,681	$ 274,850
Actual ratio	0.1243	0.1230
Required for capital adequacy purposes, amount	$ 215,188	$ 189,888
Required for capital adequacy purposes, ratio	0.0850	0.0850
Minimums to be “well capitalized” under prompt corrective action, amount	$ 202,530	$ 178,718
Minimums to be “well capitalized” under prompt corrective action, ratio	0.0800	0.0800
Total capital (to risk-weighted assets)
Actual amount	$ 344,147	$ 300,467
Actual ratio	0.1359	0.1345
Required for capital adequacy purposes, amount	$ 265,820	$ 234,568
Required for capital adequacy purposes, ratio	0.1050	0.1050
Minimums to be “well capitalized” under prompt corrective action, amount	$ 253,162	$ 223,398
Minimums to be “well capitalized” under prompt corrective action, ratio	0.1000	0.1000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Unrealized holding gains (losses) on securities available for sale arising during the period, net of (tax) benefit	$ (867)	$ 818	$ (883)	$ 733
Reclassification adjustment for losses (gains) on securities available for sale realized in net income, benefit (tax)	$ 0	$ 0	$ 0	$ 3

FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2024

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:

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 and Other Equity 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.

Fair Value Hierarchy (Continued)

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.

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.

FHLB Advances: The fair value of FHLB advances is based on discounted contractual cash flows using interest rates currently being offered for borrowings of similar maturities.

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.

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, 2024 and December 31, 2023 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, 2024
U.S. Treasury securities	$	8,979	$	—	$	8,979	$	—
U.S. Government Sponsored Enterprises (GSEs)	1,983		—		1,983		—
State and municipal securities	42,663		—		42,663		—
Corporate debt securities	13,973		—		13,973		—
Asset based securities	15,245		—		15,245		—
Mortgage-backed GSE residential/multifamily and non-GSE	115,233		—		115,233		—
Other equity securities	3,733		3,733		—		—
Interest Rate Products - asset	6,132		—		6,132		—
Interest Rate Products - liabilities	(6,160)		—		(6,160)		—

December 31, 2023
U.S. Treasury securities	$	8,772	$	—	$	8,772	$	—
U.S. Government Sponsored Enterprises (GSEs)	2,268		—		2,268		—
State and municipal securities	41,069		—		41,069		—
Corporate debt securities	11,259		—		11,259		—
Asset based securities	18,687		—		18,687		—
Mortgage-backed GSE residential/multifamily and non-GSE	96,945		—		96,945		—
Other equity securities	3,649		3,649		—		—
Interest Rate Products - asset	7,691		—		7,691		—
Interest Rate Products - liabilities	(7,726)		—		(7,726)		—

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, 2024 and December 31, 2023:


	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, 2024:
Individually analyzed loans	$	2,191	$	—	$	—	$	2,191
Foreclosed assets	33		—		—		33
Totals	$	2,224	$	—	$	—	$	2,224

Assets Measured at Fair Value on a Nonrecurring Basis (Continued)


	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)
December 31, 2023:
Individually analyzed loans	$	3,095	$	—	$	—	$	3,095
Foreclosed assets	33		—		—		33
Totals	$	3,128	$	—	$	—	$	3,128

Individually Analyzed Loans

Loans considered individually analyzed under ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, 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. Individually analyzed 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 individually analyzed loans are primarily measured based on the value of the collateral securing these loans. Impaired loans are typically 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 determines the value of the 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 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.

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 as of September 30, 2024 and December 31, 2023.

For Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2024, 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:

Individually analyzed loans

2,191

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

Appraisal

Appraisal discounts (%)

10-15%

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2023, 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:

Individually analyzed loans

3,095

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

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, 2024
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	277,856	$	277,856	$	—	$	—
Securities available for sale	198,076		—		198,076		—
Other equity securities	3,733		3,733		—		—
Loans held for sale	415		—		415		—
Trading assets	6,132		—		6,132		—
Loans, net	2,171,150		—		2,155,738		2,191
Bank owned life insurance	39,159		—		39,159		—
Annuities	16,843		—		16,843		—
Accrued interest receivable	10,114		—		10,114		—
Restricted equity securities	4,418		—		—		4,418

Financial liabilities:
Deposits	$	2,420,546	$	—	$	2,421,471	$	—
Trading liabilities	6,160		—		6,160		—
FHLB advances	22,000		—		22,109		—
Other borrowings	7,976		—		7,976		—
Subordinated notes	91,107		—		91,107		—
Accrued interest payable	2,214		—		2,214		—

Fair Value of Financial Instruments (Continued)


	December 31, 2023
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	250,651	$	250,651	$	—	$	—
Securities available for sale	179,000		—		179,000		—
Other equity securities	3,649		3,649		—		—
Loans held for sale	450		—		450		—
Trading assets	7,691		—		7,691		—
Loans, net	1,860,130		—		1,824,800		3,095
Bank owned life insurance	29,884		—		29,884		—
Annuities	15,036		—		15,036		—
Accrued interest receivable	8,711		—		8,711		—
Restricted equity securities	5,684		—		—		5,684

Financial liabilities:
Deposits	$	2,018,189	$	—	$	2,016,506	$	—
Trading liabilities	7,726		—		7,726		—
FHLB advances	70,000		—		70,029		—
Other borrowings	26,994		—		26,994		—
Subordinated notes	86,679		—		86,679		—
Accrued interest payable	1,519		—		1,519		—

- 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Collateral already posted	$ 4,360
Derivative Gain (Loss), Statement Of Income Or Comprehensive Income Extensible Enumeration, Not Disclosed Flag	gain recognized in income on derivatives
Gain recognized in income from fair value adjustment	$ 8
Loss recognized in income from fee income	2
Fair value of derivatives in a net liability position	6,278
Termination value	$ 6,278

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives (Details)	Sep. 30, 2024
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, estimated useful life	10 years
Minimum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, estimated useful life	3 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, estimated useful life	39 years
Maximum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, estimated useful life	7 years

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets:
Cash and cash equivalents	$ 277,856	$ 250,651
Securities available for sale	198,076	179,000
Other equity securities	3,733	3,649
Loans held for sale	415	450
Trading assets	6,132	7,691
Loans, net	2,171,150	1,860,130
Bank owned life insurance	39,159	29,884
Annuities	16,843	15,036
Accrued interest receivable	10,114	8,711
Restricted equity securities	4,418	5,684
Financial liabilities:
Deposits	2,420,546	2,018,189
Trading liabilities	6,160	7,726
FHLB advances	22,000	70,000
Other borrowings	7,976	26,994
Subordinated notes	91,107	86,679
Accrued interest payable	2,214	1,519
Fair Value, Inputs, Level 1
Financial assets:
Cash and cash equivalents	277,856	250,651
Securities available for sale	0	0
Other equity securities	3,733	3,649
Loans held for sale	0	0
Trading assets	0	0
Loans, net	0	0
Bank owned life insurance	0	0
Annuities	0	0
Accrued interest receivable	0	0
Restricted equity securities	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	198,076	179,000
Other equity securities	0	0
Loans held for sale	415	450
Trading assets	6,132	7,691
Loans, net	2,155,738	1,824,800
Bank owned life insurance	39,159	29,884
Annuities	16,843	15,036
Accrued interest receivable	10,114	8,711
Restricted equity securities	0	0
Financial liabilities:
Deposits	2,421,471	2,016,506
Trading liabilities	6,160	7,726
FHLB advances	22,109	70,029
Other borrowings	7,976	26,994
Subordinated notes	91,107	86,679
Accrued interest payable	2,214	1,519
Fair Value, Inputs, Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities available for sale	0	0
Other equity securities	0	0
Loans held for sale	0	0
Trading assets	0	0
Loans, net	2,191	3,095
Bank owned life insurance	0	0
Annuities	0	0
Accrued interest receivable	0	0
Restricted equity securities	4,418	5,684
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

CONCENTRATIONS OF CREDIT	9 Months Ended
CONCENTRATIONS OF CREDIT	Sep. 30, 2024
Risks and Uncertainties [Abstract]
CONCENTRATIONS OF CREDIT	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-five 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 collectability 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 5. 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 $68,358 or on an unsecured basis in excess of 10% of capital, as defined, or approximately $34,179.

SECURITIES - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Gross gains	$ 79	$ 8	$ 111	$ 686
Gross losses	(4)	(20)	(28)	(229)
Net realized gain (loss)	$ 75	$ (12)	$ 83	$ 457

DEPOSITS

9 Months Ended

Sep. 30, 2024

Banking and Thrift, Interest [Abstract]

DEPOSITS

Major classifications of deposits are as follows:


	September 30, 2024		December 31, 2023
Noninterest-bearing transaction	$	546,282	$	437,959
Interest-bearing transaction	1,124,706		946,347
Savings	53,565		35,412
Time deposits, $250,000 and under	558,600		500,406
Time deposits, over $250,000	137,393		98,065
Total	$	2,420,546	$	2,018,189

Brokered deposits totaled $194,160 at September 30, 2024 and $230,858 at December 31, 2023. The scheduled maturities of time deposits at September 30, 2024 are as follows:


October 1, 2024 to September 30, 2025	$	644,704
October 1, 2025 to September 30, 2026	29,732
October 1, 2026 to September 30, 2027	7,321
October 1, 2027 to September 30, 2028	6,914
October 1, 2028 to September 30, 2029	7,295
Thereafter	27
Total	$	695,993

At September 30, 2024 and December 31, 2023, overdrawn transaction accounts reclassified to loans totaled $316 and $174, respectively.

DEPOSITS - Schedule of Time Deposit Maturities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Banking and Thrift, Interest [Abstract]
October 1, 2024 to September 30, 2025	$ 644,704
October 1, 2025 to September 30, 2026	29,732
October 1, 2026 to September 30, 2027	7,321
October 1, 2027 to September 30, 2028	6,914
October 1, 2028 to September 30, 2029	7,295
Thereafter	27
Total	$ 695,993

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

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


	September 30, 2024		December 31, 2023
Commitments to extend credit	$	352,503	$	501,935
Standby letters of credit	6,152		2,846
Total	$	358,655	$	504,781

LOANS (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024			December 31, 2023
	Amount		% of Total	Amount		% of Total
Real estate mortgages:
Construction and development	$	245,275	11.1%	$	242,960	12.9%
Residential	293,150		13.3%	224,603		11.9%
Commercial	1,344,554		61.0%	1,144,867		60.5%
Commercial and industrial	310,540		14.1%	269,961		14.3%
Consumer and other	12,228		0.5%	8,286		0.4%
Gross Loans	2,205,747		100.0%	1,890,677		100.0%
Deferred loan fees	(6,536)			(6,169)
Allowance for credit losses	(28,061)			(24,378)
Loans, net	$	2,171,150		$	1,860,130

Schedule of Financing Receivable Credit Quality Indicators

The following tables summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of September 30, 2024:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Real Estate Mortgages:
Construction and development
Pass	$	63,928	$	42,098	$	105,124	$	13,601	$	1,686	$	6,056	$	7,875	$	240,368
Special Mention	—		—		422		—		—		4,339		—		4,761
Substandard	146		—		—		—		—		—		—		146
Doubtful	—		—		—		—		—		—		—		—
Total	64,074		42,098		105,546		13,601		1,686		10,395		7,875		245,275
YTD gross charge offs	—		—		—		—		—		—		—		—

Residential
Pass	38,169		60,527		65,382		23,697		46,113		21,737		37,048		292,673
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		104		—		—		322		51		477
Doubtful	—		—		—		—		—		—		—		—
Total	38,169		60,527		65,486		23,697		46,113		22,059		37,099		293,150
YTD gross charge offs	—		—		—		—		—		11		—		11

Commercial
Pass	122,515		242,174		380,269		262,120		91,679		199,706		14,862		1,313,325
Special Mention	247		2,435		1,471		4,397		—		7,510		659		16,719
Substandard	—		664		448		7,743		480		5,175		—		14,510
Doubtful	—		—		—		—		—		—		—		—
Total	122,762		245,273		382,188		274,260		92,159		212,391		15,521		1,344,554
YTD gross charge offs	—		—		119		38		—		—		—		157

Commercial and industrial
Pass	47,280		66,823		39,990		17,027		17,203		9,672		96,911		294,906
Special Mention	1,245		1,348		—		291		10		832		6,733		10,459
Substandard	4		3,682		79		3		—		—		1,407		5,175
Doubtful	—		—		—		—		—		—		—		—
Total	48,529		71,853		40,069		17,321		17,213		10,504		105,051		310,540
YTD gross charge offs	—		—		1,210		—		—		—		—		1,210

Consumer and other
Pass	3,083		2,002		841		464		192		1,246		4,396		12,224
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		4		—		—		—		4
Doubtful	—		—		—		—		—		—		—		—
Total	3,083		2,002		841		468		192		1,246		4,396		12,228
YTD gross charge offs	10		15		—		—		—		—		—		25

Gross Loans
Pass	274,975		413,624		591,606		316,909		156,873		238,417		161,092		2,153,496
Special Mention	1,492		3,783		1,893		4,688		10		12,681		7,392		31,939
Substandard	150		4,346		631		7,750		480		5,497		1,458		20,312
Doubtful	—		—		—		—		—		—		—		—
Total	$	276,617	$	421,753	$	594,130	$	329,347	$	157,363	$	256,595	$	169,942	$	2,205,747
Total YTD gross charge offs	$	10	$	15	$	1,329	$	38	$	—	$	11	$	—	$	1,403

Credit Risk Management (Continued)

The following tables summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of December 31, 2023:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Real Estate Mortgages:
Construction and development
Pass	$	48,141	$	139,291	$	39,679	$	1,721	$	1,969	$	5,214	$	2,516	$	238,531
Special Mention	—		—		—		—		—		4,429		—		4,429
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	48,141		139,291		39,679		1,721		1,969		9,643		2,516		242,960
YTD gross charge offs	—		—		—		—		—		—		3		3

Residential
Pass	51,135		54,610		23,808		42,071		6,496		12,883		33,132		224,135
Special Mention	81		—		—		—		—		—		—		81
Substandard	—		118		—		—		153		62		54		387
Doubtful	—		—		—		—		—		—		—		—
Total	51,216		54,728		23,808		42,071		6,649		12,945		33,186		224,603
YTD gross charge offs	—		—		—		—		—		—		—		—

Commercial
Pass	232,834		328,006		256,007		99,067		63,906		125,007		14,685		1,119,512
Special Mention	—		350		2,840		2,623		414		4,490		—		10,717
Substandard	660		432		7,811		—		—		5,735		—		14,638
Doubtful	—		—		—		—		—		—		—		—
Total	233,494		328,788		266,658		101,690		64,320		135,232		14,685		1,144,867
YTD gross charge offs	—		—		—		—		—		—		—		—

Commercial and industrial
Pass	68,482		51,368		20,626		21,390		4,758		7,257		88,074		261,955
Special Mention	126		—		—		2,711		172		—		1,873		4,882
Substandard	—		1,210		20		—		219		—		1,675		3,124
Doubtful	—		—		—		—		—		—		—		—
Total	68,608		52,578		20,646		24,101		5,149		7,257		91,622		269,961
YTD gross charge offs	424		51		167		44		—		—		—		686

Consumer and other
Pass	2,291		1,111		292		149		316		1,275		2,852		8,286
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	2,291		1,111		292		149		316		1,275		2,852		8,286
YTD gross charge offs	—		6		2		—		—		—		—		8

Gross Loans
Pass	402,883		574,386		340,412		164,398		77,445		151,636		141,259		1,852,419
Special Mention	207		350		2,840		5,334		586		8,919		1,873		20,109
Substandard	660		1,760		7,831		—		372		5,797		1,729		18,149
Doubtful	—		—		—		—		—		—		—		—
Total	$	403,750	$	576,496	$	351,083	$	169,732	$	78,403	$	166,352	$	144,861	$	1,890,677
Total YTD gross charge offs	$	424	$	57	$	169	$	44	$	—	$	—	$	3	$	697

Collateral Dependent Loans

The Company classifies a loan as collateral dependent when the borrower is experiencing financial difficulty, and expected repayment is to be provided substantially through the operation or sale of collateral. The following tables summarize collateral dependent loans, which are individually evaluated to determine expected credit losses, as of September 30, 2024 and December 31, 2023:


	Real Estate		Other		Total		ACL
As of September 30, 2024
Real estate mortgages:
Construction and development	$	285	$	—	$	285	$	25
Residential	890		—		890		49
Commercial	17,176		—		17,176		604
Commercial and industrial	—		5,179		5,179		84
Consumer and other	—		13		13		—
Total	$	18,351	$	5,192	$	23,543	$	762


	Real Estate		Other		Total		ACL
As of December 31, 2023
Real estate mortgages:
Construction and development	$	210	$	—	$	210	$	31
Residential	980		—		980		72
Commercial	15,514		—		15,514		162
Commercial and industrial	—		3,131		3,131		1,100
Consumer and other	—		11		11		1
Total	$	16,704	$	3,142	$	19,846	$	1,366

Schedule of Aging Analysis

The following tables present the aging of the recorded investment in loans and leases as of September 30, 2024 and December 31, 2023:


			Past Due Status (Accruing Loans)
	Current		30-59 Days		60-89 Days		90+ Days		Total Past Due		Nonaccrual with ACL		Nonaccrual without ACL		Total
As of September 30, 2024
Real estate mortgages:
Construction and development	$	245,275	$	—	$	—	$	—	$	—	$	—	$	—	$	245,275
Residential	291,916		647		—		65		712		22		500		293,150
Commercial	1,341,864		535		—		—		535		1,818		337		1,344,554
Commercial and industrial	304,871		3		540		—		543		83		5,043		310,540
Consumer and other	12,219		—		9		—		9		—		—		12,228
Total	$	2,196,145	$	1,185	$	549	$	65	$	1,799	$	1,923	$	5,880	$	2,205,747

As of December 31, 2023
Real estate mortgages:
Construction and development	$	242,315	$	591	$	54	$	—	$	645	$	—	$	—	$	242,960
Residential	223,195		1,106		—		51		1,157		23		228		224,603
Commercial	1,140,587		3,245		160		109		3,514		324		442		1,144,867
Commercial and industrial	269,598		265		98		—		363		—		—		269,961
Consumer and other	8,259		17		10		—		27		—		—		8,286
Total	$	1,883,954	$	5,224	$	322	$	160	$	5,706	$	347	$	670	$	1,890,677

Schedule of Allowance for Credit Losses

The following tables detail activity in the allowance for credit losses by portfolio segment as of September 30, 2024 and September 30, 2023. As described in Note 1, the Company adopted ASU 2016-13 on January 1, 2023, which replaced the existing incurred loss methodology with an expected credit loss methodology (referred to as CECL). Under the incurred loss methodology, reserves for credit losses were recognized only when the losses were probable or had been incurred; under CECL, the Company is required to recognize the full amount of expected credit losses for the lifetime of the loan, based on historical experience, current conditions and reasonable and supportable forecasts. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

We maintain an allowance for credit losses on unfunded loan commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance for credit losses is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the consolidated balance sheet within other liabilities, while corresponding provision for these credit losses is recorded as a component of other operating expense. The allowance for credit losses on unfunded commitments as the result of the adoption of ASC 326 was $1,285. At September 30, 2024, $1,405 in allowance for credit losses on unfunded commitments was included in other liabilities on the consolidated balance sheets.

Allowance for Credit Losses (Continued)


	Real Estate		Commercial		Consumer		Total
Allowance for credit losses:
Balance at December 31, 2023	$	19,826	$	4,466	$	86	$	24,378
Provision for credit losses	4,055		793		37		4,885
Loans charged off	(168)		(1,210)		(25)		(1,403)
Recoveries of loans previously charged off	27		171		3		201
Ending balance at September 30, 2024	$	23,740	$	4,220	$	101	$	28,061


	Real Estate		Commercial		Consumer		Total
Allowance for credit losses:
Balance at December 31, 2022	$	14,443	$	5,642	$	71	$	20,156
Impact of adoption of ASC 326	(1,164)		(120)		(1)		(1,285)
Provision (credit) for credit losses	4,173		(665)		3		3,511
Loans charged off	(3)		(262)		(6)		(271)
Recoveries of loans previously charged off	38		14		18		70
Ending balance at September 30, 2023	$	17,487	$	4,609	$	85	$	22,181

Schedule of Amortized Cost Basis

The table below details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2024.

Nine Months Ended September 30, 2024

Term Extension

Term Extension and Rate Adjustment

Total

Percentage of Total Loans

Real estate mortgages:

Construction and development

—

Residential

—

Commercial

—

Commercial and industrial

—

Consumer and other

—

Total

—

—%

The table below details the amortized cost basis at the end of the reporting period for loans made to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2023.


Year Ended December 31, 2023	Term Extension		Term Extension and Rate Adjustment		Total		Percentage of Total Loans
Real estate mortgages:
Construction and development	$	89	$	117	$	206	—	%
Residential	—		—		—		—	%
Commercial	—		—		—		—	%
Commercial and industrial	—		—		—		—	%
Consumer and other	—		—		—		—	%
Total	$	89	$	117	$	206	—%

Schedule of Changes in Accretable Yield

Changes in the accretable yield, or income expected to be collected, on acquired non-PCD loans as of September 30, 2024 and December 31, 2023 were as follows:


	September 30, 2024		December 31, 2023

Balance, beginning of the year	$	67	$	131
Additions	4,747		—
Disposals	(42)		(16)
Accretion	(215)		(48)
Balance, beginning of the period	$	4,557	$	67

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

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. As of September 30, 2024, the Bank also operates branch offices in Birmingham, Opelika, Auburn, Huntsville, Sylacauga, Wedowee, and Roanoke, Alabama as well as Columbus, Carrollton, Cartersville, Dallas, Newnan and Rockmart, Georgia. The Bank also has two loan production offices (LPO) 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 credit losses, the valuation of foreclosed assets, financial instruments, deferred taxes and investment 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 credit 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.

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 the Federal Reserve Bank. On March 15, 2020, the Federal Reserve System Board announced an interim final rule amending Regulation D to lower all transaction account reserve requirement ratios to zero percent, thereby eliminating all reserve requirements as of September 30, 2024 and December 31, 2023.

Securities

The Company classifies its debt 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.

Management uses a systematic methodology to determine its allowance for credit losses for held to maturity debt securities. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the portfolio. The Company’s estimate of its allowance for credit losses involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account would need to be recorded. As of September 30, 2024, the Company had $19,616 of held to maturity securities and no related valuation account.

For available for sale debt securities in an unrealized loss position, the Company will first assess whether (i) it intends to sell or (ii) it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. If either case is applicable, any previously recognized allowances are charged off and the debt security’s amortized cost is written down to fair value through income. If neither case is applicable, the debt security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the debt security by a rating agency and any adverse conditions specifically related to the debt security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the debt security are compared to the amortized cost basis of the debt security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount by which the fair value is less than the amortized cost basis. Any impairment that has not been recorded through allowance for credit losses is recognized in other comprehensive income (loss), net of tax. Adjustments to the allowance are reported in the income statement as a component of credit loss expense. Available for sale debt securities are charged off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by the Company or when either of the aforementioned criteria regarding intent or requirement to sell is met.

The Company excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on debt securities and does not record an allowance for credit losses on accrued interest receivable. The accrued interest receivable on securities was $1,286 and $1,147 at September 30, 2024 and December 31, 2023, respectively.

Other Equity Securities

The mutual funds owned by the Company are classified as equity securities and are carried at fair value with any periodic changes in value recorded through the statement of income.

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. These securities are carried at cost and periodically evaluated for impairment based on ultimate recoverability of par value.

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 credit 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.

Allowance for Credit Losses

As described below under Recent Accounting Pronouncements, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) effective January 1, 2023.

The allowance for credit losses is based on the Company’s evaluation of the loan portfolios, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The process is inherently subjective and subject to significant change as it requires material estimates. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.

Loans with similar risk characteristics are evaluated in pools and, depending on the nature of each identified pool, the Company utilizes a discounted cash flow, probability of default / loss given default, or remaining life method. The historical loss experience estimate by pool is then adjusted by forecast factors that are quantitatively related to the Company’s historical credit loss experience, such as national unemployment rates and gross domestic product. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by the Company and are dependent on the current economic environment among other factors.

The estimated credit losses for each loan pool are then adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation. The Company considers factors that are relevant within the qualitative framework which include the following: changes in lending policies and quality of loan reviews, changes in nature and volume of loans, changes in volume and trends of problem loans, changes in concentration risk, trends in underlying collateral values, changes in competition, legal and regulatory environment and changes in economic conditions.

Allowance for Credit Losses (Continued)

Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis. Specific allowances are estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows.

The Company measures expected credit losses over the contractual term of a loan, adjusted for estimated prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a loan modification will be executed. Credit losses are estimated on the amortized cost basis of loans. Accrued interest receivable on loans is excluded from the estimate of credit losses. The accrued interest receivable on loans was $8,671 and $7,377 at September 30, 2024 and December 31, 2023, respectively.

Off-Balance Sheet Credit Exposure

The Company also has off-balance sheet financial instruments, which include unfunded loan commitments and letters of credit. The Company minimizes these risks through underwriting guidelines and prudent risk management techniques. For off-balance sheet instruments, the allowance for credit losses is calculated in accordance with Topic 326, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities within the consolidated balance sheets. Adjustments to the allowance for credit losses for unfunded commitments are reported in the income statement as a component of other operating expense. The allowance for credit losses on off-balance sheet financial instruments was $1,405 and $1,239 at September 30, 2024 and December 31, 2023, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

The Company periodically provides modifications to borrowers experiencing financial difficulty. These modifications include either payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan. A modified loan is tracked for at least 12 months following the modifications granted.

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 credit 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 existed at September 30, 2024.

Goodwill is not amortized but is evaluated for impairment on a quarterly 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 2024. The qualitative factors considered in determining if fair value of the unit was less than the carrying amount were economic conditions related to 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. 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, 2024 and based on that evaluation there was no impairment.

Accounting Policy for Derivative Instruments and Hedging Activities

Financial Accounting Standards Board (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.

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, restricted stock units and stock grants.

Comprehensive Income (Loss)

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 (loss).

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 13. 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, 2019, 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

On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, this standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross charge offs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty. The Company adopted these standards as required on January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures.

In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces a new credit loss methodology, Current Expected Credit Losses (CECL), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original ASU. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, off-balance sheet credit exposures, and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. For available for sale securities where fair value is less than cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company adopted ASU 2016-13 on January 1, 2023 with no material impact on the consolidated financial statements.

LOANS - Schedule of Composition of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 2,205,747	$ 1,890,677
% of Total	100.00%	100.00%
Deferred loan fees	$ (6,536)	$ (6,169)
Allowance for credit losses	(28,061)	(24,378)	$ (22,181)	$ (20,156)
Loans, net	2,171,150	1,860,130
Real Estate Mortgages:
Financing Receivable, Credit Quality Indicator [Line Items]
Allowance for credit losses	(23,740)	(19,826)	(17,487)	(14,443)
Real Estate Mortgages: \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 245,275	$ 242,960
% of Total	11.10%	12.90%
Real Estate Mortgages: \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 293,150	$ 224,603
% of Total	13.30%	11.90%
Real Estate Mortgages: \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 1,344,554	$ 1,144,867
% of Total	61.00%	60.50%
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 310,540	$ 269,961
% of Total	14.10%	14.30%
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
Loans, net of unearned income	$ 12,228	$ 8,286
% of Total	0.50%	0.40%
Allowance for credit losses	$ (101)	$ (86)	$ (85)	$ (71)

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 198,076	$ 179,000
Other equity securities	$ 3,733	$ 3,649
Derivative Asset, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag	Interest Rate Products - asset	Interest Rate Products - asset
Derivative Liability, Statement Of Financial Position Extensible Enumeration, Not Disclosed Flag	Interest Rate Products - liabilities	Interest Rate Products - liabilities
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 0	$ 0
Other equity securities	3,733	3,649
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	198,076	179,000
Other equity securities	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Other equity securities	0	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,979	8,772
U.S. Government Sponsored Enterprises (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,983	2,268
State and municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	42,663	41,069
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,973	11,259
Asset based securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,245	18,687
Mortgage-backed GSE residential/multifamily and non-GSE
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	115,233	96,945
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities	3,733	3,649
Interest Rate Products - asset	6,132	7,691
Interest Rate Products - liabilities	(6,160)	(7,726)
Fair Value, Recurring \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities	3,733	3,649
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	0	0
Interest Rate Products - asset	6,132	7,691
Interest Rate Products - liabilities	(6,160)	(7,726)
Fair Value, Recurring \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other equity securities	0	0
Interest Rate Products - asset	0	0
Interest Rate Products - liabilities	0	0
Fair Value, Recurring \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,979	8,772
Fair Value, Recurring \| U.S. Treasury securities \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| U.S. Treasury securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,979	8,772
Fair Value, Recurring \| U.S. Treasury securities \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| U.S. Government Sponsored Enterprises (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,983	2,268
Fair Value, Recurring \| U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,983	2,268
Fair Value, Recurring \| U.S. Government Sponsored Enterprises (GSEs) \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| State and municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	42,663	41,069
Fair Value, Recurring \| State and municipal securities \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| State and municipal securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	42,663	41,069
Fair Value, Recurring \| State and municipal securities \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,973	11,259
Fair Value, Recurring \| Corporate debt securities \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Corporate debt securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,973	11,259
Fair Value, Recurring \| Corporate debt securities \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Asset based securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,245	18,687
Fair Value, Recurring \| Asset based securities \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Asset based securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,245	18,687
Fair Value, Recurring \| Asset based securities \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Mortgage-backed GSE residential/multifamily and non-GSE
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	115,233	96,945
Fair Value, Recurring \| Mortgage-backed GSE residential/multifamily and non-GSE \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring \| Mortgage-backed GSE residential/multifamily and non-GSE \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	115,233	96,945
Fair Value, Recurring \| Mortgage-backed GSE residential/multifamily and non-GSE \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 0	$ 0

ACQUISITION ACTIVITY - Narrative (Details) - USD ($) $ in Thousands	Jul. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 30,980	$ 16,862
CBB Bancorp
Business Acquisition [Line Items]
Common stock issued (in shares)	961,920
Common stock issued (961,920 shares)	$ 31,474
Cash	3,150
Total assets acquired	329,815	336,817
Loans	132,618	127,871
Deposits	$ 308,535	308,747
Goodwill		$ 14,118

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481372/852-10-55-10

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(15))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482598/350-20-45-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(10)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ Details

SECURITIES - Schedule of Restricted Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Total restricted equity securities	$ 4,418	$ 5,684
Federal Home Loan Bank stock
Debt and Equity Securities, FV-NI [Line Items]
Total restricted equity securities	3,000	4,759
First National Banker’s Bankshares, Inc. stock
Debt and Equity Securities, FV-NI [Line Items]
Total restricted equity securities	1,168	675
Pacific Coast Banker’s Bank stock
Debt and Equity Securities, FV-NI [Line Items]
Total restricted equity securities	$ 250	$ 250

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2024

Banking and Thrift, Interest [Abstract]

Schedule of Composition of Deposits

Major classifications of deposits are as follows:


	September 30, 2024		December 31, 2023
Noninterest-bearing transaction	$	546,282	$	437,959
Interest-bearing transaction	1,124,706		946,347
Savings	53,565		35,412
Time deposits, $250,000 and under	558,600		500,406
Time deposits, over $250,000	137,393		98,065
Total	$	2,420,546	$	2,018,189

Schedule of Time Deposit Maturities

The scheduled maturities of time deposits at September 30, 2024 are as follows:


October 1, 2024 to September 30, 2025	$	644,704
October 1, 2025 to September 30, 2026	29,732
October 1, 2026 to September 30, 2027	7,321
October 1, 2027 to September 30, 2028	6,914
October 1, 2028 to September 30, 2029	7,295
Thereafter	27
Total	$	695,993

SECURITIES

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The amortized cost and fair value of securities at September 30, 2024 and December 31, 2023 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2024
Securities Available for Sale
U.S. Treasury securities	$	9,688	$	—	$	(709)	$	8,979
U.S. Government Sponsored Enterprises (GSEs)	2,154		5		(176)		1,983
State and municipal securities	46,407		56		(3,800)		42,663
Corporate debt securities	14,999		—		(1,026)		13,973
Asset based securities	15,420		135		(310)		15,245
Mortgage-backed GSE residential/multifamily and non-GSE	117,334		781		(2,882)		115,233
Total securities available for sale	$	206,002	$	977	$	(8,903)	$	198,076

Securities Held to Maturity


State and municipal securities	19,616		—		(2,714)		16,902



Total securities held to maturity	$	19,616	$	—	$	(2,714)	$	16,902
Total securities	$	225,618	$	977	$	(11,617)	$	214,978


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	9,721	$	—	$	(949)	$	8,772
U.S. Government Sponsored Enterprises (GSEs)	2,446		37		(215)		2,268
State and municipal securities	45,220		21		(4,172)		41,069
Corporate debt securities	12,517		—		(1,258)		11,259
Asset based securities	19,112		54		(479)		18,687
Mortgage-backed GSE residential/multifamily and non-GSE	101,306		164		(4,525)		96,945
Total securities available for sale	$	190,322	$	276	$	(11,598)	$	179,000

Securities Held to Maturity


State and municipal securities	19,632		—		(3,399)		16,233



Total securities held to maturity	$	19,632	$	—	$	(3,399)	$	16,233
Total securities	$	209,954	$	276	$	(14,997)	$	195,233

Securities with a carrying value of $20,836 and $27,477 at September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 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, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities Available for Sale
Due in less than one year	$	2,427	$	2,404	$	482	$	476
Due from one year to five years	12,539		11,842		11,671		10,855
Due after five to ten years	21,857		20,097		22,537		20,439
Due after ten years	51,845		48,500		54,326		50,285
Mortgage-backed securities	117,334		115,233		101,306		96,945
Total securities available for sale	$	206,002	$	198,076	$	190,322	$	179,000

Securities Held to Maturity
Due in less than one year	$	—	$	—	$	—	$	—
Due from one year to five years	—		—		—		—
Due after five to ten years	13,810		11,955		7,743		6,483
Due after ten years	5,806		4,947		11,889		9,750
Mortgage-backed securities	—		—		—		—
Total securities held to maturity	$	19,616	$	16,902	$	19,632	$	16,233
Total securities	$	225,618	$	214,978	$	209,954	$	195,233

Gains and losses on sales and change in value of securities available for sale and other equity securities held at fair value for the three and nine months ended September 30, 2024 and September 30, 2023 consist of the following:


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Gross gains	$	79	$	8	$	111	$	686
Gross losses	(4)		(20)		(28)		(229)
Net realized gain (loss)	$	75	$	(12)	$	83	$	457

Restricted equity securities as of September 30, 2024 and December 31, 2023 consist of the following:


	September 30, 2024		December 31, 2023

Federal Home Loan Bank stock	$	3,000	$	4,759
First National Banker’s Bankshares, Inc. stock	1,168		675
Pacific Coast Banker’s Bank stock	250		250
Total restricted equity securities	$	4,418	$	5,684

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, 2024 and December 31, 2023.


	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
September 30, 2024
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(709)	$	8,979	$	(709)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(176)		1,323		(176)
State and municipal securities	(2)		364		(3,798)		40,184		(3,800)
Corporate debt securities	—		—		(1,026)		13,473		(1,026)
Asset based securities	(3)		523		(307)		4,439		(310)
Mortgage-backed GSE residential/multifamily and non-GSE	(160)		17,621		(2,722)		51,305		(2,882)
Total securities available for sale	$	(165)	$	18,508	$	(8,738)	$	119,703	$	(8,903)

Securities Held to Maturity


State and municipal securities	—		—		(2,714)		16,902		(2,714)



Total securities held to maturity	$	—	$	—	$	(2,714)	$	16,902	$	(2,714)
Total securities	$	(165)	$	18,508	$	(11,452)	$	136,605	$	(11,617)


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

December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(949)	$	8,772	$	(949)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(215)		1,451		(215)
State and municipal securities	—		—		(4,172)		40,663		(4,172)
Corporate debt securities	—		—		(1,258)		11,259		(1,258)
Asset based securities	(11)		1,102		(468)		6,904		(479)
Mortgage-backed GSE residential/multifamily and non-GSE	(268)		24,708		(4,257)		56,083		(4,525)
Total securities available for sale	$	(279)	$	25,810	$	(11,319)	$	125,132	$	(11,598)

Securities Held to Maturity


State and municipal securities	—		—		(3,399)		16,233		(3,399)



Total securities held to maturity	$	—	$	—	$	(3,399)	$	16,233	$	(3,399)
Total securities	$	(279)	$	25,810	$	(14,718)	$	141,365	$	(14,997)

The unrealized losses on 222 securities at September 30, 2024 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 credit impaired at September 30, 2024.

At September 30, 2024, no allowance for credit losses has been recognized on available for sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available for sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to securities issued by states and political subdivisions, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant. Furthermore, as of September 30, 2024, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for held to maturity state and municipal securities as such amount is not material at September 30, 2024. All debt securities in an unrealized loss position as of September 30, 2024 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.

REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2024

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

As of September 30, 2024

Tier 1 capital (to average assets)
Company	$	236,918	8.64	%	$	109,657	4.00	%	$	—	—
Bank	$	314,681	11.48	%	$	109,657	4.00	%	$	137,071	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	236,918	9.36	%	$	177,214	7.00	%	$	—	—
Bank	$	314,681	12.43	%	$	177,214	7.00	%	$	164,555	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	236,918	9.36	%	$	215,188	8.50	%	$	—	—
Bank	$	314,681	12.43	%	$	215,188	8.50	%	$	202,530	8.00	%

Total capital (to risk-weighted assets)
Company	$	358,884	14.18	%	$	265,820	10.50	%	$	—	—
Bank	$	344,147	13.59	%	$	265,820	10.50	%	$	253,162	10.00	%


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

	Amount		Ratio		Amount		Ratio		Amount		Ratio

As of December 31, 2023

Tier 1 capital (to average assets)
Company	$	205,582	8.99	%	$	91,503	4.00	%	$	—	—
Bank	$	274,850	12.01	%	$	91,503	4.00	%	$	114,379	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	205,582	9.20	%	$	156,378	7.00	%	$	—	—
Bank	$	274,850	12.30	%	$	156,378	7.00	%	$	145,209	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	205,582	9.20	%	$	189,888	8.50	%	$	—	—
Bank	$	274,850	12.30	%	$	189,888	8.50	%	$	178,718	8.00	%

Total capital (to risk-weighted assets)
Company	$	319,199	14.29	%	$	234,568	10.50	%	$	—	—
Bank	$	300,467	13.45	%	$	234,568	10.50	%	$	223,398	10.00	%

LOANS - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Allowance for credit losses:
Beginning balance	$ 24,378	$ 20,156
Provision for credit losses	4,885	3,511
Loans charged off	(1,403)	(271)
Recoveries of loans previously charged off	201	70
Ending balance	28,061	22,181
Allowance for credit losses	1,405		$ 1,239
Impact of adoption of ASC 326
Allowance for credit losses:
Beginning balance		(1,285)
Financing receivable, allowance for credit loss	1,285
Allowance for credit losses	1,405
Real Estate
Allowance for credit losses:
Beginning balance	19,826	14,443
Provision for credit losses	4,055	4,173
Loans charged off	(168)	(3)
Recoveries of loans previously charged off	27	38
Ending balance	23,740	17,487
Real Estate \| Impact of adoption of ASC 326
Allowance for credit losses:
Beginning balance		(1,164)
Commercial
Allowance for credit losses:
Beginning balance	4,466	5,642
Provision for credit losses	793	(665)
Loans charged off	(1,210)	(262)
Recoveries of loans previously charged off	171	14
Ending balance	4,220	4,609
Commercial \| Impact of adoption of ASC 326
Allowance for credit losses:
Beginning balance		(120)
Consumer
Allowance for credit losses:
Beginning balance	86	71
Provision for credit losses	37	3
Loans charged off	(25)	(6)
Recoveries of loans previously charged off	3	18
Ending balance	$ 101	85
Consumer \| Impact of adoption of ASC 326
Allowance for credit losses:
Beginning balance		$ (1)

STOCKHOLDERS’ EQUITY (Details) - shares	Sep. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Common stock issued (in shares)	9,882,350	8,841,349
Common stock outstanding (in shares)	9,882,350	8,841,349

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
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 credit losses, the valuation of foreclosed assets, financial instruments, deferred taxes and investment 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 credit 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. 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 the Federal Reserve Bank. On March 15, 2020, the Federal Reserve System Board announced an interim final rule amending Regulation D to lower all transaction account reserve requirement ratios to zero percent, thereby eliminating all reserve requirements as of September 30, 2024 and December 31, 2023.
Securities and Other Equity Securities	Securities The Company classifies its debt 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. Management uses a systematic methodology to determine its allowance for credit losses for held to maturity debt securities. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the portfolio. The Company’s estimate of its allowance for credit losses involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account would need to be recorded. As of September 30, 2024, the Company had $19,616 of held to maturity securities and no related valuation account. For available for sale debt securities in an unrealized loss position, the Company will first assess whether (i) it intends to sell or (ii) it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. If either case is applicable, any previously recognized allowances are charged off and the debt security’s amortized cost is written down to fair value through income. If neither case is applicable, the debt security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the debt security by a rating agency and any adverse conditions specifically related to the debt security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the debt security are compared to the amortized cost basis of the debt security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount by which the fair value is less than the amortized cost basis. Any impairment that has not been recorded through allowance for credit losses is recognized in other comprehensive income (loss), net of tax. Adjustments to the allowance are reported in the income statement as a component of credit loss expense. Available for sale debt securities are charged off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by the Company or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on debt securities and does not record an allowance for credit losses on accrued interest receivable. The accrued interest receivable on securities was $1,286 and $1,147 at September 30, 2024 and December 31, 2023, respectively. Other Equity Securities The mutual funds owned by the Company are classified as equity securities and are carried at fair value with any periodic changes in value recorded through the statement of income.
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. These securities are carried at cost and periodically evaluated for impairment based on ultimate recoverability of par value.
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, Allowance for Credit Losses and Modifications to Borrowers Experiencing Financial Difficulty	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 credit 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. Allowance for Credit Losses As described below under Recent Accounting Pronouncements, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) effective January 1, 2023. The allowance for credit losses is based on the Company’s evaluation of the loan portfolios, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The process is inherently subjective and subject to significant change as it requires material estimates. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for credit losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination. Loans with similar risk characteristics are evaluated in pools and, depending on the nature of each identified pool, the Company utilizes a discounted cash flow, probability of default / loss given default, or remaining life method. The historical loss experience estimate by pool is then adjusted by forecast factors that are quantitatively related to the Company’s historical credit loss experience, such as national unemployment rates and gross domestic product. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each quarter by the Company and are dependent on the current economic environment among other factors. The estimated credit losses for each loan pool are then adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation. The Company considers factors that are relevant within the qualitative framework which include the following: changes in lending policies and quality of loan reviews, changes in nature and volume of loans, changes in volume and trends of problem loans, changes in concentration risk, trends in underlying collateral values, changes in competition, legal and regulatory environment and changes in economic conditions. Allowance for Credit Losses (Continued) Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis. Specific allowances are estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. The Company measures expected credit losses over the contractual term of a loan, adjusted for estimated prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a loan modification will be executed. Credit losses are estimated on the amortized cost basis of loans. Accrued interest receivable on loans is excluded from the estimate of credit losses. The accrued interest receivable on loans was $8,671 and $7,377 at September 30, 2024 and December 31, 2023, respectively. Off-Balance Sheet Credit Exposure The Company also has off-balance sheet financial instruments, which include unfunded loan commitments and letters of credit. The Company minimizes these risks through underwriting guidelines and prudent risk management techniques. For off-balance sheet instruments, the allowance for credit losses is calculated in accordance with Topic 326, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities within the consolidated balance sheets. Adjustments to the allowance for credit losses for unfunded commitments are reported in the income statement as a component of other operating expense. The allowance for credit losses on off-balance sheet financial instruments was $1,405 and $1,239 at September 30, 2024 and December 31, 2023, respectively. Modifications to Borrowers Experiencing Financial Difficulty The Company periodically provides modifications to borrowers experiencing financial difficulty. These modifications include either payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan. A modified loan is tracked for at least 12 months following the modifications granted.
Premises and Equipment	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.
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 credit 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 existed at September 30, 2024. Goodwill is not amortized but is evaluated for impairment on a quarterly 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 2024. The qualitative factors considered in determining if fair value of the unit was less than the carrying amount were economic conditions related to 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. 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, 2024 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 Financial Accounting Standards Board (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. 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, restricted stock units and stock grants.
Comprehensive Income (Loss)	Comprehensive Income (Loss) 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 (loss).
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 13. 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 Recognition On January 1, 2019, 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 On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, this standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross charge offs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty. The Company adopted these standards as required on January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces a new credit loss methodology, Current Expected Credit Losses (CECL), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original ASU. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, off-balance sheet credit exposures, and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. For available for sale securities where fair value is less than cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company adopted ASU 2016-13 on January 1, 2023 with no material impact on the consolidated financial statements.
Business Acquisitions Policy	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 Available for Sale: Securities available for sale were acquired with an adjustment to fair value based upon quoted market prices. 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. Time Deposits Held as Investments: 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. 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. Loans were acquired with an adjustment to fair value based upon these factors. Core Deposit Intangible: The core deposit intangible represents the value of the relationship that the acquired bank had with its deposit customers. The fair value of this asset was estimated based on a discounted cash flow methodology that gave consideration to expected customer attrition rates, cost of the deposit base and the net maintenance cost attributable to customer deposits. Premises and Equipment: Premises and equipment were acquired with an adjustment to fair value, which represents the difference between the Company’s current analysis of property and equipment values completed in connection with the acquisition and book value acquired. Other Assets: The carrying value of other assets approximate fair value. 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. Subordinated Notes: Subordinated notes were acquired with an adjustment to fair value based on a discounted cash flow calculation using the estimated market interest rate of similar instruments. Accrued Interest and Other Liabilities: The carrying amounts of accrued interest and other liabilities approximate fair value.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Securities available for sale, amortized cost	$ 206,002	$ 190,322
Securities available for sale, allowance for credit losses	0	0
Securities held to maturity, fair value	16,902	16,233
Securities held to maturity, allowance for credit Loss	$ 0	$ 0
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)	9,882,350	8,841,349
Common stock issued (in shares)	9,882,350	8,841,349

DEPOSITS - Schedule of Composition of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Noninterest-bearing transaction	$ 546,282	$ 437,959
Interest-bearing transaction	1,124,706	946,347
Savings	53,565	35,412
Time deposits, $250,000 and under	558,600	500,406
Time deposits, over $250,000	137,393	98,065
Total deposits	$ 2,420,546	$ 2,018,189

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans, including fees	$ 38,690	$ 30,084	$ 107,739	$ 83,049
Taxable securities	2,205	1,796	6,225	4,819
Nontaxable securities	243	227	704	747
Other interest and dividends	3,930	3,097	10,143	7,473
Total interest income	45,068	35,204	124,811	96,088
Interest expense:
Deposits	18,990	12,732	52,407	31,498
Other borrowings	1,832	1,741	5,740	4,881
Total interest expense	20,822	14,473	58,147	36,379
Net interest income	24,246	20,731	66,664	59,709
Provision for credit losses	2,583	773	4,885	3,511
Net interest income after provision for credit losses	21,663	19,958	61,779	56,198
Noninterest income:
Service charges on deposit accounts	$ 532	$ 442	$ 1,458	$ 1,348
Revenue, product and service [extensible enumeration]	Deposit Account [Member]	Deposit Account [Member]	Deposit Account [Member]	Deposit Account [Member]
Swap (expenses) fees	$ (9)	$ 453	$ 10	$ 622
SBA/USDA fees	179	74	302	274
Mortgage origination fees	112	158	300	446
Net gain (loss) on securities	75	(12)	83	457
Employee retention credit	0	(5,100)	0	0
Other operating income	868	1,091	2,240	2,608
Total noninterest income	1,757	(2,894)	4,393	5,755
Noninterest expenses:
Salaries and employee benefits	6,876	5,752	19,219	19,926
Equipment and occupancy expenses	814	718	2,170	2,095
Data processing fees	781	650	2,110	1,889
Regulatory assessments	414	322	1,149	844
Professional fees related to ERC	0	(1,243)	0	0
Merger-related expenses	1,511	0	1,511	0
Other operating expenses	3,291	2,370	9,314	7,405
Total noninterest expenses	13,687	8,569	35,473	32,159
Income before income taxes	9,733	8,495	30,699	29,794
Income tax expense	2,380	1,866	7,029	6,738
Net Income	$ 7,353	$ 6,629	$ 23,670	$ 23,056
Basic earnings per share (in dollars per share)	$ 0.76	$ 0.75	$ 2.58	$ 2.62
Dilutive earnings per share (in dollars per share)	$ 0.76	$ 0.73	$ 2.54	$ 2.56

LOANS - Schedule of Aging Analysis (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	$ 2,205,747		$ 1,890,677
Nonaccrual with ACL	1,923		347
Nonaccrual without ACL	5,880		670
Nonaccrual loans interest income	438	$ 44
Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	2,196,145		1,883,954
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,799		5,706
30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,185		5,224
60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	549		322
90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	65		160
Real Estate Mortgages: \| Construction and development
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	245,275		242,960
Nonaccrual with ACL	0		0
Nonaccrual without ACL	0		0
Real Estate Mortgages: \| Construction and development \| Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	245,275		242,315
Real Estate Mortgages: \| Construction and development \| Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		645
Real Estate Mortgages: \| Construction and development \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		591
Real Estate Mortgages: \| Construction and development \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		54
Real Estate Mortgages: \| Construction and development \| 90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		0
Real Estate Mortgages: \| Residential
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	293,150		224,603
Nonaccrual with ACL	22		23
Nonaccrual without ACL	500		228
Real Estate Mortgages: \| Residential \| Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	291,916		223,195
Real Estate Mortgages: \| Residential \| Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	712		1,157
Real Estate Mortgages: \| Residential \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	647		1,106
Real Estate Mortgages: \| Residential \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		0
Real Estate Mortgages: \| Residential \| 90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	65		51
Real Estate Mortgages: \| Commercial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,344,554		1,144,867
Nonaccrual with ACL	1,818		324
Nonaccrual without ACL	337		442
Real Estate Mortgages: \| Commercial \| Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	1,341,864		1,140,587
Real Estate Mortgages: \| Commercial \| Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	535		3,514
Real Estate Mortgages: \| Commercial \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	535		3,245
Real Estate Mortgages: \| Commercial \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		160
Real Estate Mortgages: \| Commercial \| 90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		109
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	310,540		269,961
Nonaccrual with ACL	83		0
Nonaccrual without ACL	5,043		0
Commercial and industrial \| Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	304,871		269,598
Commercial and industrial \| Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	543		363
Commercial and industrial \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	3		265
Commercial and industrial \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	540		98
Commercial and industrial \| 90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		0
Consumer and other
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	12,228		8,286
Nonaccrual with ACL	0		0
Nonaccrual without ACL	0		0
Consumer and other \| Current
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	12,219		8,259
Consumer and other \| Total Past Due
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	9		27
Consumer and other \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	0		17
Consumer and other \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	9		10
Consumer and other \| 90+ Days
Financing Receivable, Past Due [Line Items]
Loans, net of unearned income	$ 0		$ 0

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024 and December 31, 2023 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, 2024
U.S. Treasury securities	$	8,979	$	—	$	8,979	$	—
U.S. Government Sponsored Enterprises (GSEs)	1,983		—		1,983		—
State and municipal securities	42,663		—		42,663		—
Corporate debt securities	13,973		—		13,973		—
Asset based securities	15,245		—		15,245		—
Mortgage-backed GSE residential/multifamily and non-GSE	115,233		—		115,233		—
Other equity securities	3,733		3,733		—		—
Interest Rate Products - asset	6,132		—		6,132		—
Interest Rate Products - liabilities	(6,160)		—		(6,160)		—

December 31, 2023
U.S. Treasury securities	$	8,772	$	—	$	8,772	$	—
U.S. Government Sponsored Enterprises (GSEs)	2,268		—		2,268		—
State and municipal securities	41,069		—		41,069		—
Corporate debt securities	11,259		—		11,259		—
Asset based securities	18,687		—		18,687		—
Mortgage-backed GSE residential/multifamily and non-GSE	96,945		—		96,945		—
Other equity securities	3,649		3,649		—		—
Interest Rate Products - asset	7,691		—		7,691		—
Interest Rate Products - liabilities	(7,726)		—		(7,726)		—

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


	September 30, 2024
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	277,856	$	277,856	$	—	$	—
Securities available for sale	198,076		—		198,076		—
Other equity securities	3,733		3,733		—		—
Loans held for sale	415		—		415		—
Trading assets	6,132		—		6,132		—
Loans, net	2,171,150		—		2,155,738		2,191
Bank owned life insurance	39,159		—		39,159		—
Annuities	16,843		—		16,843		—
Accrued interest receivable	10,114		—		10,114		—
Restricted equity securities	4,418		—		—		4,418

Financial liabilities:
Deposits	$	2,420,546	$	—	$	2,421,471	$	—
Trading liabilities	6,160		—		6,160		—
FHLB advances	22,000		—		22,109		—
Other borrowings	7,976		—		7,976		—
Subordinated notes	91,107		—		91,107		—
Accrued interest payable	2,214		—		2,214		—


	December 31, 2023
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	250,651	$	250,651	$	—	$	—
Securities available for sale	179,000		—		179,000		—
Other equity securities	3,649		3,649		—		—
Loans held for sale	450		—		450		—
Trading assets	7,691		—		7,691		—
Loans, net	1,860,130		—		1,824,800		3,095
Bank owned life insurance	29,884		—		29,884		—
Annuities	15,036		—		15,036		—
Accrued interest receivable	8,711		—		8,711		—
Restricted equity securities	5,684		—		—		5,684

Financial liabilities:
Deposits	$	2,018,189	$	—	$	2,016,506	$	—
Trading liabilities	7,726		—		7,726		—
FHLB advances	70,000		—		70,029		—
Other borrowings	26,994		—		26,994		—
Subordinated notes	86,679		—		86,679		—
Accrued interest payable	1,519		—		1,519		—

Schedule of Fair Value Measurements, Nonrecurring

Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2024 and December 31, 2023:


	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, 2024:
Individually analyzed loans	$	2,191	$	—	$	—	$	2,191
Foreclosed assets	33		—		—		33
Totals	$	2,224	$	—	$	—	$	2,224


	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)
December 31, 2023:
Individually analyzed loans	$	3,095	$	—	$	—	$	3,095
Foreclosed assets	33		—		—		33
Totals	$	3,128	$	—	$	—	$	3,128

Schedule of Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2024, 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:

Individually analyzed loans

2,191

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

Appraisal

Appraisal discounts (%)

10-15%

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2023, 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:

Individually analyzed loans

3,095

Appraisal

Appraisal discounts (%)

15-20%

Foreclosed assets

Appraisal

Appraisal discounts (%)

10-15%

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 2,224	$ 3,128
Individually analyzed loans \| Minimum \| Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average of Input	0.15	0.15
Individually analyzed loans \| Maximum \| Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average of Input	0.20	0.20
Individually analyzed loans \| Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 2,191	$ 3,095
Foreclosed assets \| Minimum \| Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average of Input	0.10	0.10
Foreclosed assets \| Maximum \| Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average of Input	0.15	0.15
Foreclosed assets \| Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 33	$ 33

ACQUISITION ACTIVITY - Schedule of Pro-Forma Financial Information (Details) - CBB Bancorp - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Business Acquisition [Line Items]
Net interest income	$ 24,752	$ 23,058	$ 71,962	$ 67,311
Net income	$ 8,986	$ 8,006	$ 27,477	$ 26,699

LOANS - Accretable Yield (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
LOANS - Accretable Yield (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Changes in Accretable Yield [Roll Forward]
Balance, beginning of the year	$ 67	$ 131
Additions	4,747	0
Disposals	(42)	(16)
Accretion	(215)	(48)
Balance, beginning of the period	$ 4,557	$ 67

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Nov. 11, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-40727
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)		9,884,859
Entity Central Index Key	0001689731
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3

REGULATORY MATTERS

9 Months Ended

Sep. 30, 2024

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, 2024, approximately $99,393 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 and state 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 a capital conservation buffer that requires it to maintain common equity Tier 1 capital of 2.50% above minimum requirements for the common equity Tier 1 ratio, Tier 1 risk-based ratio and total risk-based ratio to avoid limitations on distributions and discretionary bonus payments. The capital conservation buffer is included in the minimum capital requirements in the following tables. Management believes, as of September 30, 2024 and December 31, 2023, that the Bank met all capital adequacy requirements to which it is subject.

As of September 30, 2024, 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 table. As a bank holding company with less than $3,000,000 in total consolidated assets, the Company is eligible to be treated as a “small bank holding company” under the Federal Reserve’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement. As a result, the Company’s capital adequacy is evaluated at the bank level and on a parent-only basis, and it is not subject to consolidated capital standards for regulatory purposes. The ratios set forth below as to the Company are for illustrative purposes in the event it was to become subject to consolidated capital standards for regulatory purposes. The column styled “Required for Capital Adequacy Purposes” includes the 2.50% capital conservation buffer.

The Bank is also subject to capital requirements under the FDIC’s prompt corrective action regime. As of September 30, 2024, the Bank was well capitalized under the regulatory framework for prompt corrective action.

As part of the directive under the Economic Growth Act, in September 2019, the FDIC and other federal bank regulatory agencies approved the Community Bank Leverage Ratio (“CBLR”) framework. This optional framework became effective January 1, 2020, and is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations. Specifically, depository institutions and depository institution holding companies that have less than $10,000,000 in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00%, are considered qualifying community banking organizations and are eligible to opt into the CBLR framework, and replace the applicable Basel III risk-based capital requirements. As of September 30, 2024, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework.


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

	Amount		Ratio		Amount		Ratio		Amount		Ratio

As of September 30, 2024

Tier 1 capital (to average assets)
Company	$	236,918	8.64	%	$	109,657	4.00	%	$	—	—
Bank	$	314,681	11.48	%	$	109,657	4.00	%	$	137,071	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	236,918	9.36	%	$	177,214	7.00	%	$	—	—
Bank	$	314,681	12.43	%	$	177,214	7.00	%	$	164,555	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	236,918	9.36	%	$	215,188	8.50	%	$	—	—
Bank	$	314,681	12.43	%	$	215,188	8.50	%	$	202,530	8.00	%

Total capital (to risk-weighted assets)
Company	$	358,884	14.18	%	$	265,820	10.50	%	$	—	—
Bank	$	344,147	13.59	%	$	265,820	10.50	%	$	253,162	10.00	%


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

	Amount		Ratio		Amount		Ratio		Amount		Ratio

As of December 31, 2023

Tier 1 capital (to average assets)
Company	$	205,582	8.99	%	$	91,503	4.00	%	$	—	—
Bank	$	274,850	12.01	%	$	91,503	4.00	%	$	114,379	5.00	%

CET 1 capital (to risk-weighted assets)
Company	$	205,582	9.20	%	$	156,378	7.00	%	$	—	—
Bank	$	274,850	12.30	%	$	156,378	7.00	%	$	145,209	6.50	%

Tier 1 capital (to risk-weighted assets)
Company	$	205,582	9.20	%	$	189,888	8.50	%	$	—	—
Bank	$	274,850	12.30	%	$	189,888	8.50	%	$	178,718	8.00	%

Total capital (to risk-weighted assets)
Company	$	319,199	14.29	%	$	234,568	10.50	%	$	—	—
Bank	$	300,467	13.45	%	$	234,568	10.50	%	$	223,398	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

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2024

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, 2024 and December 31, 2023. As of September 30, 2024, the Company has posted cash collateral of $4,360. The amount of gain recognized in income on derivatives as a fair value adjustment and fee income, for the nine months ended September 30, 2024, were $8 and $2, respectively.


September 30, 2024						December 31, 2023
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	$	101,991	Other Assets	$	6,132	Interest Rate Products	$	104,180	Other Assets	$	7,691
Interest Rate Products	101,991		Other Liabilities	(6,160)		Interest Rate Products	104,180		Other Liabilities	(7,726)

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.

As of September 30, 2024, 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 $6,278. If the Company had breached any of these provisions at September 30, 2024, it could have been required to settle its obligations under the agreements at their termination value of $6,278, less the required collateral of $4,360.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives

The estimated useful lives are as follows:


			Years
Buildings			10-39
Furniture and equipment			3-7

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Fair Values of Derivative Instruments on the Balance Sheet (Details) - Interest Rate Products - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Assets
Notional Amount	$ 101,991	$ 104,180
Fair Value	6,132	7,691
Other Liabilities
Notional Amount	101,991	104,180
Fair Value	$ (6,160)	$ (7,726)

- Definition

Nominal or face amount used to calculate payments on the derivative asset.

+ References + Details

- Definition

Nominal or face amount used to calculate payments on the derivative liability.

+ References + Details

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2024 - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Unvested Restricted Stock	Vested Restricted Stock Units
Beginning balance (in shares) at Dec. 31, 2023		0	8,841,349
Beginning balance at Dec. 31, 2023	$ 214,964	$ 0	$ 44,479	$ 78,361	$ 102,523	$ (8,379)	$ (466)	$ (1,554)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	23,670				23,670
Issuance of common stock (in shares)			3,796
Issuance of common stock	104		$ 19	85
Issuance of common stock - acquisition (in shares)			961,920
Issuance of common stock - acquisition	31,474		$ 4,810	26,664
Exercise of common stock options (in shares)			49,360
Exercise of common stock options	309		$ 246	63
Issuance of restricted stock (in shares)			29,150
Issuance of restricted stock	0		$ 146	632			(778)
Forfeiture of restricted stock (in shares)			(3,225)
Forfeiture of restricted stock	0		$ (16)	(67)			83
Stock-based compensation	746			308			438
Common stock dividends	(2,410)				(2,410)
Other comprehensive income	2,513					2,513
Ending balance (in shares) at Sep. 30, 2024		0	9,882,350
Ending balance at Sep. 30, 2024	$ 271,370	$ 0	$ 49,684	$ 106,046	$ 123,783	$ (5,866)	$ (723)	$ (1,554)

LOANS - Schedule of Amortized Cost Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 206
Percentage of Total Loans	0.00%	0.00%
Loans modified, subsequently defaulted	$ 0	$ 0
Unfunded commitments, borrowers with financial difficulty	0	0
Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	89
Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	117
Real Estate Mortgages: \| Construction and development
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 206
Percentage of Total Loans	0.00%	0.00%
Real Estate Mortgages: \| Construction and development \| Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 89
Real Estate Mortgages: \| Construction and development \| Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	117
Real Estate Mortgages: \| Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Percentage of Total Loans	0.00%	0.00%
Real Estate Mortgages: \| Residential \| Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Real Estate Mortgages: \| Residential \| Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	0
Real Estate Mortgages: \| Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Percentage of Total Loans	0.00%	0.00%
Real Estate Mortgages: \| Commercial \| Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Real Estate Mortgages: \| Commercial \| Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	0
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Percentage of Total Loans	0.00%	0.00%
Commercial and industrial \| Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Commercial and industrial \| Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	0	0
Consumer and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Percentage of Total Loans	0.00%	0.00%
Consumer and other \| Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0
Consumer and other \| Term Extension and Rate Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investment after modification	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES - Schedule of Loan Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Guarantor Obligations [Line Items]
Exposure to credit loss	$ 358,655	$ 504,781
Commitments to extend credit
Guarantor Obligations [Line Items]
Exposure to credit loss	352,503	501,935
Standby letters of credit
Guarantor Obligations [Line Items]
Exposure to credit loss	$ 6,152	$ 2,846

LOANS - Narrative (Details)	Sep. 30, 2024 loan_portfolio_segment
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Number of loan portfolio segments	3

ACQUISITION ACTIVITY - Schedule Of Acquired Assets And Assumed Liabilities (Details) - USD ($) $ in Thousands		2 Months Ended
	Jul. 31, 2024	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 30,980	$ 16,862
CBB Bancorp
Business Acquisition [Line Items]
Cash and cash equivalents	$ 66,605	66,605
Securities available for sale - sold day 1	104,724	104,724
Securities available for sale	2,750	2,464
Restricted equity securities	734	734
Time deposits held as investments	10,897	10,807
Loans	132,618	127,871
Less allowance for credit losses	(1,619)	0
Core deposit intangible	0	8,896
Premises and equipment, net	3,903	5,513
Other assets	9,203	9,203
Total assets acquired	329,815	336,817
Fair value adjustments, Securities available for sale		(286)
Fair value adjustments, Time deposits held as investments		(90)
Fair value adjustments, Loans		(4,747)
Fair value adjustments, Less allowance for credit losses		1,619
Fair value adjustments, Core deposit intangible		8,896
Fair value adjustments, Premises and equipment, net		1,610
Fair value adjustments, Total assets acquired		7,002
Deposits	308,535	308,747
Subordinated notes	5,000	4,693
Accrued expenses and other liabilities	2,871	2,871
Total liabilities assumed	316,406	316,311
Fair value adjustments, Deposits		212
Fair value adjustments, Subordinated notes		(307)
Fair value adjustments, Total liabilities assumed		(95)
Net assets acquired		20,506
Cash	3,150
Common stock issued (961,920 shares)	$ 31,474
Total consideration paid		34,624
Goodwill		$ 14,118
Common stock issued (in shares)	961,920

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) office	Dec. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of loan production offices \| office	2
Amortized Cost	$ 19,616,000	$ 19,632,000
Accrued interest receivable on securities	$ 1,286,000	$ 1,147,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable	Accrued interest receivable
Accrued interest receivable on loans	$ 8,671,000	$ 7,377,000
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable	Accrued interest receivable
Allowance for credit losses	$ 1,405,000	$ 1,239,000
Goodwill, impairment loss	$ 0
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, remaining amortization period (in years)	7 years
Impairment of intangible assets, finite-lived	$ 0

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 24,225	$ 19,710
Interest-bearing deposits in banks	182,559	134,846
Federal funds sold	71,072	96,095
Total cash and cash equivalents	277,856	250,651
Securities available for sale, at fair value ($206,002 amortized cost, $0 allowance for credit losses at September 30, 2024; $190,322 amortized cost, $0 allowance for credit losses at December 31, 2023)	198,076	179,000
Securities held to maturity, at amortized cost ($16,902 at fair value, $0 allowance for credit losses at September 30, 2024; $16,233 at fair value, $0 allowance for credit losses at December 31, 2023)	19,616	19,632
Other equity securities, at fair value	3,733	3,649
Restricted equity securities, at cost	4,418	5,684
Loans held for sale	415	450
Loans, net of unearned income	2,199,211	1,884,508
Less allowance for credit losses	28,061	24,378
Loans, net	2,171,150	1,860,130
Premises and equipment, net	32,319	26,426
Accrued interest receivable	10,114	8,711
Bank owned life insurance	39,159	29,884
Annuities	16,843	15,036
Foreclosed assets	33	33
Goodwill	30,980	16,862
Core deposit intangible	9,338	899
Other assets	27,390	29,616
Total assets	2,841,440	2,446,663
Deposits:
Noninterest-bearing	546,282	437,959
Interest-bearing	1,874,264	1,580,230
Total deposits	2,420,546	2,018,189
Other borrowings	7,976	26,994
FHLB advances	22,000	70,000
Subordinated notes	91,107	86,679
Accrued interest payable	2,214	1,519
Other liabilities	26,227	28,318
Total liabilities	2,570,070	2,231,699
Stockholders' equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2024 and December 31, 2023	0	0
Common stock, $5 par value, 30,000,000 shares authorized; 9,882,350 and 8,841,349 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	49,684	44,479
Capital surplus	106,046	78,361
Retained earnings	123,783	102,523
Accumulated other comprehensive loss	(5,866)	(8,379)
Unvested restricted stock	(723)	(466)
Vested restricted stock units	(1,554)	(1,554)
Total stockholders' equity	271,370	214,964
Total liabilities and stockholders' equity	$ 2,841,440	$ 2,446,663

SECURITIES - Schedule of Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($)
Gross Unrealized Losses
Less Than Twelve Months	$ (165)	$ (279)
Over Twelve Months	(8,738)	(11,319)
Total Unrealized Losses	(8,903)	(11,598)
Fair Value
Less Than Twelve Months	18,508	25,810
Over Twelve Months	119,703	125,132
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	(2,714)	(3,399)
Total Unrealized Losses	(2,714)	(3,399)
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	16,902	16,233
Gross Unrealized Losses
Less Than Twelve Months	(165)	(279)
Over Twelve Months	(11,452)	(14,718)
Total Unrealized Losses	(11,617)	(14,997)
Fair Value
Less Than Twelve Months	18,508	25,810
Over Twelve Months	$ 136,605	141,365
Number of securities in loss position \| loan	222
U.S. Treasury securities
Gross Unrealized Losses
Less Than Twelve Months	$ 0	0
Over Twelve Months	(709)	(949)
Total Unrealized Losses	(709)	(949)
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	8,979	8,772
U.S. Government Sponsored Enterprises (GSEs)
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	(176)	(215)
Total Unrealized Losses	(176)	(215)
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	1,323	1,451
State and municipal securities
Gross Unrealized Losses
Less Than Twelve Months	(2)	0
Over Twelve Months	(3,798)	(4,172)
Total Unrealized Losses	(3,800)	(4,172)
Fair Value
Less Than Twelve Months	364	0
Over Twelve Months	40,184	40,663
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	(2,714)	(3,399)
Total Unrealized Losses	(2,714)	(3,399)
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	16,902	16,233
Corporate debt securities
Gross Unrealized Losses
Less Than Twelve Months	0	0
Over Twelve Months	(1,026)	(1,258)
Total Unrealized Losses	(1,026)	(1,258)
Fair Value
Less Than Twelve Months	0	0
Over Twelve Months	13,473	11,259
Asset based securities
Gross Unrealized Losses
Less Than Twelve Months	(3)	(11)
Over Twelve Months	(307)	(468)
Total Unrealized Losses	(310)	(479)
Fair Value
Less Than Twelve Months	523	1,102
Over Twelve Months	4,439	6,904
Mortgage-backed GSE residential/multifamily and non-GSE
Gross Unrealized Losses
Less Than Twelve Months	(160)	(268)
Over Twelve Months	(2,722)	(4,257)
Total Unrealized Losses	(2,882)	(4,525)
Fair Value
Less Than Twelve Months	17,621	24,708
Over Twelve Months	$ 51,305	$ 56,083

EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic Earnings Per Share:
Net Income	$ 7,353	$ 6,629	$ 23,670	$ 23,056
Weighted average common shares outstanding (in shares)	9,608,868	8,846,018	9,161,622	8,791,007
Basic earnings per share (in dollars per share)	$ 0.76	$ 0.75	$ 2.58	$ 2.62
Diluted Earnings Per Share:
Net income allocated to common shareholders (in shares)	$ 7,346	$ 6,624	$ 23,655	$ 23,045
Weighted average common shares outstanding (in shares)	9,608,868	8,846,018	9,161,622	8,791,007
Net dilutive effect of:
Assumed exercises of stock options and vesting of restricted stock units (in shares)	117,016	194,669	136,156	225,596
Average shares and dilutive potential common shares (in shares)	9,725,884	9,040,687	9,297,778	9,016,603
Dilutive earnings per share (in dollars per share)	$ 0.76	$ 0.73	$ 2.54	$ 2.56

LOANS - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	$ 276,617	$ 403,750
2023-2022	421,753	576,496
2022-2021	594,130	351,083
2021-2020	329,347	169,732
2020-2019	157,363	78,403
Prior	256,595	166,352
Revolving Loans	169,942	144,861
Total	2,205,747	1,890,677
2024-2023, charge offs	10	424
2023-2022, charge offs	15	57
2022-2021, charge offs	1,329	169
2021-2020, charge offs	38	44
2020-2019, charge offs	0	0
Prior, charge offs	11	0
Revolving Loans, charge offs	0	3
Total, charge offs	1,403	697
Collateral dependent loans	23,543	19,846
ACL	762	1,366
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	18,351	16,704
Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	5,192	3,142
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	274,975	402,883
2023-2022	413,624	574,386
2022-2021	591,606	340,412
2021-2020	316,909	164,398
2020-2019	156,873	77,445
Prior	238,417	151,636
Revolving Loans	161,092	141,259
Total	2,153,496	1,852,419
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	1,492	207
2023-2022	3,783	350
2022-2021	1,893	2,840
2021-2020	4,688	5,334
2020-2019	10	586
Prior	12,681	8,919
Revolving Loans	7,392	1,873
Total	31,939	20,109
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	150	660
2023-2022	4,346	1,760
2022-2021	631	7,831
2021-2020	7,750	0
2020-2019	480	372
Prior	5,497	5,797
Revolving Loans	1,458	1,729
Total	20,312	18,149
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Real Estate Mortgages: \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	64,074	48,141
2023-2022	42,098	139,291
2022-2021	105,546	39,679
2021-2020	13,601	1,721
2020-2019	1,686	1,969
Prior	10,395	9,643
Revolving Loans	7,875	2,516
Total	245,275	242,960
2024-2023, charge offs	0	0
2023-2022, charge offs	0	0
2022-2021, charge offs	0	0
2021-2020, charge offs	0	0
2020-2019, charge offs	0	0
Prior, charge offs	0	0
Revolving Loans, charge offs	0	3
Total, charge offs	0	3
Collateral dependent loans	285	210
ACL	25	31
Real Estate Mortgages: \| Construction and development \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	285	210
Real Estate Mortgages: \| Construction and development \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	0	0
Real Estate Mortgages: \| Construction and development \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	63,928	48,141
2023-2022	42,098	139,291
2022-2021	105,124	39,679
2021-2020	13,601	1,721
2020-2019	1,686	1,969
Prior	6,056	5,214
Revolving Loans	7,875	2,516
Total	240,368	238,531
Real Estate Mortgages: \| Construction and development \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	422	0
2021-2020	0	0
2020-2019	0	0
Prior	4,339	4,429
Revolving Loans	0	0
Total	4,761	4,429
Real Estate Mortgages: \| Construction and development \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	146	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	146	0
Real Estate Mortgages: \| Construction and development \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Real Estate Mortgages: \| Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	38,169	51,216
2023-2022	60,527	54,728
2022-2021	65,486	23,808
2021-2020	23,697	42,071
2020-2019	46,113	6,649
Prior	22,059	12,945
Revolving Loans	37,099	33,186
Total	293,150	224,603
2024-2023, charge offs	0	0
2023-2022, charge offs	0	0
2022-2021, charge offs	0	0
2021-2020, charge offs	0	0
2020-2019, charge offs	0	0
Prior, charge offs	11	0
Revolving Loans, charge offs	0	0
Total, charge offs	11	0
Collateral dependent loans	890	980
ACL	49	72
Real Estate Mortgages: \| Residential \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	890	980
Real Estate Mortgages: \| Residential \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	0	0
Real Estate Mortgages: \| Residential \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	38,169	51,135
2023-2022	60,527	54,610
2022-2021	65,382	23,808
2021-2020	23,697	42,071
2020-2019	46,113	6,496
Prior	21,737	12,883
Revolving Loans	37,048	33,132
Total	292,673	224,135
Real Estate Mortgages: \| Residential \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	81
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	81
Real Estate Mortgages: \| Residential \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	118
2022-2021	104	0
2021-2020	0	0
2020-2019	0	153
Prior	322	62
Revolving Loans	51	54
Total	477	387
Real Estate Mortgages: \| Residential \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Real Estate Mortgages: \| Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	122,762	233,494
2023-2022	245,273	328,788
2022-2021	382,188	266,658
2021-2020	274,260	101,690
2020-2019	92,159	64,320
Prior	212,391	135,232
Revolving Loans	15,521	14,685
Total	1,344,554	1,144,867
2024-2023, charge offs	0	0
2023-2022, charge offs	0	0
2022-2021, charge offs	119	0
2021-2020, charge offs	38	0
2020-2019, charge offs	0	0
Prior, charge offs	0	0
Revolving Loans, charge offs	0	0
Total, charge offs	157	0
Collateral dependent loans	17,176	15,514
ACL	604	162
Real Estate Mortgages: \| Commercial \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	17,176	15,514
Real Estate Mortgages: \| Commercial \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	0	0
Real Estate Mortgages: \| Commercial \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	122,515	232,834
2023-2022	242,174	328,006
2022-2021	380,269	256,007
2021-2020	262,120	99,067
2020-2019	91,679	63,906
Prior	199,706	125,007
Revolving Loans	14,862	14,685
Total	1,313,325	1,119,512
Real Estate Mortgages: \| Commercial \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	247	0
2023-2022	2,435	350
2022-2021	1,471	2,840
2021-2020	4,397	2,623
2020-2019	0	414
Prior	7,510	4,490
Revolving Loans	659	0
Total	16,719	10,717
Real Estate Mortgages: \| Commercial \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	660
2023-2022	664	432
2022-2021	448	7,811
2021-2020	7,743	0
2020-2019	480	0
Prior	5,175	5,735
Revolving Loans	0	0
Total	14,510	14,638
Real Estate Mortgages: \| Commercial \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	48,529	68,608
2023-2022	71,853	52,578
2022-2021	40,069	20,646
2021-2020	17,321	24,101
2020-2019	17,213	5,149
Prior	10,504	7,257
Revolving Loans	105,051	91,622
Total	310,540	269,961
2024-2023, charge offs	0	424
2023-2022, charge offs	0	51
2022-2021, charge offs	1,210	167
2021-2020, charge offs	0	44
2020-2019, charge offs	0	0
Prior, charge offs	0	0
Revolving Loans, charge offs	0	0
Total, charge offs	1,210	686
Collateral dependent loans	5,179	3,131
ACL	84	1,100
Commercial and industrial \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	0	0
Commercial and industrial \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	5,179	3,131
Commercial and industrial \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	47,280	68,482
2023-2022	66,823	51,368
2022-2021	39,990	20,626
2021-2020	17,027	21,390
2020-2019	17,203	4,758
Prior	9,672	7,257
Revolving Loans	96,911	88,074
Total	294,906	261,955
Commercial and industrial \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	1,245	126
2023-2022	1,348	0
2022-2021	0	0
2021-2020	291	2,711
2020-2019	10	172
Prior	832	0
Revolving Loans	6,733	1,873
Total	10,459	4,882
Commercial and industrial \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	4	0
2023-2022	3,682	1,210
2022-2021	79	20
2021-2020	3	0
2020-2019	0	219
Prior	0	0
Revolving Loans	1,407	1,675
Total	5,175	3,124
Commercial and industrial \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Consumer and other
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	3,083	2,291
2023-2022	2,002	1,111
2022-2021	841	292
2021-2020	468	149
2020-2019	192	316
Prior	1,246	1,275
Revolving Loans	4,396	2,852
Total	12,228	8,286
2024-2023, charge offs	10	0
2023-2022, charge offs	15	6
2022-2021, charge offs	0	2
2021-2020, charge offs	0	0
2020-2019, charge offs	0	0
Prior, charge offs	0	0
Revolving Loans, charge offs	0	0
Total, charge offs	25	8
Collateral dependent loans	13	11
ACL	0	1
Consumer and other \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	0	0
Consumer and other \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Collateral dependent loans	13	11
Consumer and other \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	3,083	2,291
2023-2022	2,002	1,111
2022-2021	841	292
2021-2020	464	149
2020-2019	192	316
Prior	1,246	1,275
Revolving Loans	4,396	2,852
Total	12,224	8,286
Consumer and other \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Consumer and other \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	4	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	4	0
Consumer and other \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024-2023	0	0
2023-2022	0	0
2022-2021	0	0
2021-2020	0	0
2020-2019	0	0
Prior	0	0
Revolving Loans	0	0
Total	$ 0	$ 0

LOANS

9 Months Ended

Sep. 30, 2024

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, 2024			December 31, 2023
	Amount		% of Total	Amount		% of Total
Real estate mortgages:
Construction and development	$	245,275	11.1%	$	242,960	12.9%
Residential	293,150		13.3%	224,603		11.9%
Commercial	1,344,554		61.0%	1,144,867		60.5%
Commercial and industrial	310,540		14.1%	269,961		14.3%
Consumer and other	12,228		0.5%	8,286		0.4%
Gross Loans	2,205,747		100.0%	1,890,677		100.0%
Deferred loan fees	(6,536)			(6,169)
Allowance for credit losses	(28,061)			(24,378)
Loans, net	$	2,171,150		$	1,860,130

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.

Portfolio Segments and Classes (Continued)

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.

•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 summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of September 30, 2024:


	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Real Estate Mortgages:
Construction and development
Pass	$	63,928	$	42,098	$	105,124	$	13,601	$	1,686	$	6,056	$	7,875	$	240,368
Special Mention	—		—		422		—		—		4,339		—		4,761
Substandard	146		—		—		—		—		—		—		146
Doubtful	—		—		—		—		—		—		—		—
Total	64,074		42,098		105,546		13,601		1,686		10,395		7,875		245,275
YTD gross charge offs	—		—		—		—		—		—		—		—

Residential
Pass	38,169		60,527		65,382		23,697		46,113		21,737		37,048		292,673
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		104		—		—		322		51		477
Doubtful	—		—		—		—		—		—		—		—
Total	38,169		60,527		65,486		23,697		46,113		22,059		37,099		293,150
YTD gross charge offs	—		—		—		—		—		11		—		11

Commercial
Pass	122,515		242,174		380,269		262,120		91,679		199,706		14,862		1,313,325
Special Mention	247		2,435		1,471		4,397		—		7,510		659		16,719
Substandard	—		664		448		7,743		480		5,175		—		14,510
Doubtful	—		—		—		—		—		—		—		—
Total	122,762		245,273		382,188		274,260		92,159		212,391		15,521		1,344,554
YTD gross charge offs	—		—		119		38		—		—		—		157

Commercial and industrial
Pass	47,280		66,823		39,990		17,027		17,203		9,672		96,911		294,906
Special Mention	1,245		1,348		—		291		10		832		6,733		10,459
Substandard	4		3,682		79		3		—		—		1,407		5,175
Doubtful	—		—		—		—		—		—		—		—
Total	48,529		71,853		40,069		17,321		17,213		10,504		105,051		310,540
YTD gross charge offs	—		—		1,210		—		—		—		—		1,210

Consumer and other
Pass	3,083		2,002		841		464		192		1,246		4,396		12,224
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		4		—		—		—		4
Doubtful	—		—		—		—		—		—		—		—
Total	3,083		2,002		841		468		192		1,246		4,396		12,228
YTD gross charge offs	10		15		—		—		—		—		—		25

Gross Loans
Pass	274,975		413,624		591,606		316,909		156,873		238,417		161,092		2,153,496
Special Mention	1,492		3,783		1,893		4,688		10		12,681		7,392		31,939
Substandard	150		4,346		631		7,750		480		5,497		1,458		20,312
Doubtful	—		—		—		—		—		—		—		—
Total	$	276,617	$	421,753	$	594,130	$	329,347	$	157,363	$	256,595	$	169,942	$	2,205,747
Total YTD gross charge offs	$	10	$	15	$	1,329	$	38	$	—	$	11	$	—	$	1,403

Credit Risk Management (Continued)

The following tables summarizes the risk category of the Company’s loan portfolio based upon the most recent analysis on the year of origination as of December 31, 2023:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Real Estate Mortgages:
Construction and development
Pass	$	48,141	$	139,291	$	39,679	$	1,721	$	1,969	$	5,214	$	2,516	$	238,531
Special Mention	—		—		—		—		—		4,429		—		4,429
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	48,141		139,291		39,679		1,721		1,969		9,643		2,516		242,960
YTD gross charge offs	—		—		—		—		—		—		3		3

Residential
Pass	51,135		54,610		23,808		42,071		6,496		12,883		33,132		224,135
Special Mention	81		—		—		—		—		—		—		81
Substandard	—		118		—		—		153		62		54		387
Doubtful	—		—		—		—		—		—		—		—
Total	51,216		54,728		23,808		42,071		6,649		12,945		33,186		224,603
YTD gross charge offs	—		—		—		—		—		—		—		—

Commercial
Pass	232,834		328,006		256,007		99,067		63,906		125,007		14,685		1,119,512
Special Mention	—		350		2,840		2,623		414		4,490		—		10,717
Substandard	660		432		7,811		—		—		5,735		—		14,638
Doubtful	—		—		—		—		—		—		—		—
Total	233,494		328,788		266,658		101,690		64,320		135,232		14,685		1,144,867
YTD gross charge offs	—		—		—		—		—		—		—		—

Commercial and industrial
Pass	68,482		51,368		20,626		21,390		4,758		7,257		88,074		261,955
Special Mention	126		—		—		2,711		172		—		1,873		4,882
Substandard	—		1,210		20		—		219		—		1,675		3,124
Doubtful	—		—		—		—		—		—		—		—
Total	68,608		52,578		20,646		24,101		5,149		7,257		91,622		269,961
YTD gross charge offs	424		51		167		44		—		—		—		686

Consumer and other
Pass	2,291		1,111		292		149		316		1,275		2,852		8,286
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	2,291		1,111		292		149		316		1,275		2,852		8,286
YTD gross charge offs	—		6		2		—		—		—		—		8

Gross Loans
Pass	402,883		574,386		340,412		164,398		77,445		151,636		141,259		1,852,419
Special Mention	207		350		2,840		5,334		586		8,919		1,873		20,109
Substandard	660		1,760		7,831		—		372		5,797		1,729		18,149
Doubtful	—		—		—		—		—		—		—		—
Total	$	403,750	$	576,496	$	351,083	$	169,732	$	78,403	$	166,352	$	144,861	$	1,890,677
Total YTD gross charge offs	$	424	$	57	$	169	$	44	$	—	$	—	$	3	$	697

Credit Risk Management (Continued)

Collateral Dependent Loans


	Real Estate		Other		Total		ACL
As of September 30, 2024
Real estate mortgages:
Construction and development	$	285	$	—	$	285	$	25
Residential	890		—		890		49
Commercial	17,176		—		17,176		604
Commercial and industrial	—		5,179		5,179		84
Consumer and other	—		13		13		—
Total	$	18,351	$	5,192	$	23,543	$	762


	Real Estate		Other		Total		ACL
As of December 31, 2023
Real estate mortgages:
Construction and development	$	210	$	—	$	210	$	31
Residential	980		—		980		72
Commercial	15,514		—		15,514		162
Commercial and industrial	—		3,131		3,131		1,100
Consumer and other	—		11		11		1
Total	$	16,704	$	3,142	$	19,846	$	1,366

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, 2024 and December 31, 2023:


			Past Due Status (Accruing Loans)
	Current		30-59 Days		60-89 Days		90+ Days		Total Past Due		Nonaccrual with ACL		Nonaccrual without ACL		Total
As of September 30, 2024
Real estate mortgages:
Construction and development	$	245,275	$	—	$	—	$	—	$	—	$	—	$	—	$	245,275
Residential	291,916		647		—		65		712		22		500		293,150
Commercial	1,341,864		535		—		—		535		1,818		337		1,344,554
Commercial and industrial	304,871		3		540		—		543		83		5,043		310,540
Consumer and other	12,219		—		9		—		9		—		—		12,228
Total	$	2,196,145	$	1,185	$	549	$	65	$	1,799	$	1,923	$	5,880	$	2,205,747

As of December 31, 2023
Real estate mortgages:
Construction and development	$	242,315	$	591	$	54	$	—	$	645	$	—	$	—	$	242,960
Residential	223,195		1,106		—		51		1,157		23		228		224,603
Commercial	1,140,587		3,245		160		109		3,514		324		442		1,144,867
Commercial and industrial	269,598		265		98		—		363		—		—		269,961
Consumer and other	8,259		17		10		—		27		—		—		8,286
Total	$	1,883,954	$	5,224	$	322	$	160	$	5,706	$	347	$	670	$	1,890,677

The Company recognized $438 and $44 of interest income on nonaccrual loans during the nine months ended September 30, 2024, and September 30, 2023, respectively.

Allowance for Credit Losses

Allowance for Credit Losses (Continued)


	Real Estate		Commercial		Consumer		Total
Allowance for credit losses:
Balance at December 31, 2023	$	19,826	$	4,466	$	86	$	24,378
Provision for credit losses	4,055		793		37		4,885
Loans charged off	(168)		(1,210)		(25)		(1,403)
Recoveries of loans previously charged off	27		171		3		201
Ending balance at September 30, 2024	$	23,740	$	4,220	$	101	$	28,061


	Real Estate		Commercial		Consumer		Total
Allowance for credit losses:
Balance at December 31, 2022	$	14,443	$	5,642	$	71	$	20,156
Impact of adoption of ASC 326	(1,164)		(120)		(1)		(1,285)
Provision (credit) for credit losses	4,173		(665)		3		3,511
Loans charged off	(3)		(262)		(6)		(271)
Recoveries of loans previously charged off	38		14		18		70
Ending balance at September 30, 2023	$	17,487	$	4,609	$	85	$	22,181

Modifications to Borrowers Experiencing Financial Difficulty

On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” This standard eliminated the previous accounting guidance for troubled debt restructurings and added additional disclosure requirements for gross charge offs by year of origination. It also prescribes guidance for reporting modifications of loans to borrowers experiencing financial difficulty.

From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of a principal forgiveness, an interest rate reduction, a payment delay, a term extension, or a combination thereof, among other things.

Nine Months Ended September 30, 2024

Term Extension

Term Extension and Rate Adjustment

Total

Percentage of Total Loans

Real estate mortgages:

Construction and development

—

Residential

—

Commercial

—

Commercial and industrial

—

Consumer and other

—

Total

—

—%

Modifications to Borrowers Experiencing Financial Difficulty (Continued)

The Company had no modified loans during the nine months ended September 30, 2024 that subsequently defaulted. For purposes of this disclosure, the term default is defined as the earlier of being placed on nonaccrual status or reaching 90 days past due and still accruing with respect to principle and/or interest payments. The Company has no unfunded commitments to borrowers experiencing financial difficulty for which the Company has modified their loans as of September 30, 2024.


Year Ended December 31, 2023	Term Extension		Term Extension and Rate Adjustment		Total		Percentage of Total Loans
Real estate mortgages:
Construction and development	$	89	$	117	$	206	—	%
Residential	—		—		—		—	%
Commercial	—		—		—		—	%
Commercial and industrial	—		—		—		—	%
Consumer and other	—		—		—		—	%
Total	$	89	$	117	$	206	—%

The Company had no modified loans during the year ended December 31, 2023 that subsequently defaulted. For purposes of this disclosure, the term default is defined as the earlier of being placed on nonaccrual status or reaching 90 days past due and still accruing with respect to principle and/or interest payments. The Company has no unfunded commitments to borrowers experiencing financial difficulty for which the Company has modified their loans as of December 31, 2023.

Accretable Yield

The Company did not acquire any purchase credit deteriorated loans (PCD) as a result of the merger with Century Bank. Changes in the accretable yield, or income expected to be collected, on acquired non-PCD loans as of September 30, 2024 and December 31, 2023 were as follows:


	September 30, 2024		December 31, 2023

Balance, beginning of the year	$	67	$	131
Additions	4,747		—
Disposals	(42)		(16)
Accretion	(215)		(48)
Balance, beginning of the period	$	4,557	$	67

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Brokered deposits	$ 194,160	$ 230,858
Overdrawn deposits reclassified as loans	$ 316	$ 174

CONCENTRATIONS OF CREDIT (Details) $ in Thousands	9 Months Ended
CONCENTRATIONS OF CREDIT (Details) $ in Thousands	Sep. 30, 2024 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	$ 68,358
Commitments to expend in excess of capital, unsecured basis, percentage	10.00%
Commitments to expend in excess of capital, unsecured basis	$ 34,179
Financing Receivable \| Loan Portfolio Concentration Risk \| Real Estate Mortgages:
Concentration Risk [Line Items]
Concentration risk, percentage	85.00%

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Available-for-sale

The amortized cost and fair value of securities at September 30, 2024 and December 31, 2023 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2024
Securities Available for Sale
U.S. Treasury securities	$	9,688	$	—	$	(709)	$	8,979
U.S. Government Sponsored Enterprises (GSEs)	2,154		5		(176)		1,983
State and municipal securities	46,407		56		(3,800)		42,663
Corporate debt securities	14,999		—		(1,026)		13,973
Asset based securities	15,420		135		(310)		15,245
Mortgage-backed GSE residential/multifamily and non-GSE	117,334		781		(2,882)		115,233
Total securities available for sale	$	206,002	$	977	$	(8,903)	$	198,076

Securities Held to Maturity


State and municipal securities	19,616		—		(2,714)		16,902



Total securities held to maturity	$	19,616	$	—	$	(2,714)	$	16,902
Total securities	$	225,618	$	977	$	(11,617)	$	214,978


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	9,721	$	—	$	(949)	$	8,772
U.S. Government Sponsored Enterprises (GSEs)	2,446		37		(215)		2,268
State and municipal securities	45,220		21		(4,172)		41,069
Corporate debt securities	12,517		—		(1,258)		11,259
Asset based securities	19,112		54		(479)		18,687
Mortgage-backed GSE residential/multifamily and non-GSE	101,306		164		(4,525)		96,945
Total securities available for sale	$	190,322	$	276	$	(11,598)	$	179,000

Securities Held to Maturity


State and municipal securities	19,632		—		(3,399)		16,233



Total securities held to maturity	$	19,632	$	—	$	(3,399)	$	16,233
Total securities	$	209,954	$	276	$	(14,997)	$	195,233

Schedule of Debt Securities, Held-to-maturity

The amortized cost and fair value of securities at September 30, 2024 and December 31, 2023 are summarized as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2024
Securities Available for Sale
U.S. Treasury securities	$	9,688	$	—	$	(709)	$	8,979
U.S. Government Sponsored Enterprises (GSEs)	2,154		5		(176)		1,983
State and municipal securities	46,407		56		(3,800)		42,663
Corporate debt securities	14,999		—		(1,026)		13,973
Asset based securities	15,420		135		(310)		15,245
Mortgage-backed GSE residential/multifamily and non-GSE	117,334		781		(2,882)		115,233
Total securities available for sale	$	206,002	$	977	$	(8,903)	$	198,076

Securities Held to Maturity


State and municipal securities	19,616		—		(2,714)		16,902



Total securities held to maturity	$	19,616	$	—	$	(2,714)	$	16,902
Total securities	$	225,618	$	977	$	(11,617)	$	214,978


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	9,721	$	—	$	(949)	$	8,772
U.S. Government Sponsored Enterprises (GSEs)	2,446		37		(215)		2,268
State and municipal securities	45,220		21		(4,172)		41,069
Corporate debt securities	12,517		—		(1,258)		11,259
Asset based securities	19,112		54		(479)		18,687
Mortgage-backed GSE residential/multifamily and non-GSE	101,306		164		(4,525)		96,945
Total securities available for sale	$	190,322	$	276	$	(11,598)	$	179,000

Securities Held to Maturity


State and municipal securities	19,632		—		(3,399)		16,233



Total securities held to maturity	$	19,632	$	—	$	(3,399)	$	16,233
Total securities	$	209,954	$	276	$	(14,997)	$	195,233

Schedule of Investments Classified by Contractual Maturity Date


	September 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities Available for Sale
Due in less than one year	$	2,427	$	2,404	$	482	$	476
Due from one year to five years	12,539		11,842		11,671		10,855
Due after five to ten years	21,857		20,097		22,537		20,439
Due after ten years	51,845		48,500		54,326		50,285
Mortgage-backed securities	117,334		115,233		101,306		96,945
Total securities available for sale	$	206,002	$	198,076	$	190,322	$	179,000

Securities Held to Maturity
Due in less than one year	$	—	$	—	$	—	$	—
Due from one year to five years	—		—		—		—
Due after five to ten years	13,810		11,955		7,743		6,483
Due after ten years	5,806		4,947		11,889		9,750
Mortgage-backed securities	—		—		—		—
Total securities held to maturity	$	19,616	$	16,902	$	19,632	$	16,233
Total securities	$	225,618	$	214,978	$	209,954	$	195,233

Schedule of Realized Gain (Loss)


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Gross gains	$	79	$	8	$	111	$	686
Gross losses	(4)		(20)		(28)		(229)
Net realized gain (loss)	$	75	$	(12)	$	83	$	457

Schedule of Restricted Equity Securities

Restricted equity securities as of September 30, 2024 and December 31, 2023 consist of the following:


	September 30, 2024		December 31, 2023

Federal Home Loan Bank stock	$	3,000	$	4,759
First National Banker’s Bankshares, Inc. stock	1,168		675
Pacific Coast Banker’s Bank stock	250		250
Total restricted equity securities	$	4,418	$	5,684

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, 2024
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(709)	$	8,979	$	(709)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(176)		1,323		(176)
State and municipal securities	(2)		364		(3,798)		40,184		(3,800)
Corporate debt securities	—		—		(1,026)		13,473		(1,026)
Asset based securities	(3)		523		(307)		4,439		(310)
Mortgage-backed GSE residential/multifamily and non-GSE	(160)		17,621		(2,722)		51,305		(2,882)
Total securities available for sale	$	(165)	$	18,508	$	(8,738)	$	119,703	$	(8,903)

Securities Held to Maturity


State and municipal securities	—		—		(2,714)		16,902		(2,714)



Total securities held to maturity	$	—	$	—	$	(2,714)	$	16,902	$	(2,714)
Total securities	$	(165)	$	18,508	$	(11,452)	$	136,605	$	(11,617)


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

December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(949)	$	8,772	$	(949)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(215)		1,451		(215)
State and municipal securities	—		—		(4,172)		40,663		(4,172)
Corporate debt securities	—		—		(1,258)		11,259		(1,258)
Asset based securities	(11)		1,102		(468)		6,904		(479)
Mortgage-backed GSE residential/multifamily and non-GSE	(268)		24,708		(4,257)		56,083		(4,525)
Total securities available for sale	$	(279)	$	25,810	$	(11,319)	$	125,132	$	(11,598)

Securities Held to Maturity


State and municipal securities	—		—		(3,399)		16,233		(3,399)



Total securities held to maturity	$	—	$	—	$	(3,399)	$	16,233	$	(3,399)
Total securities	$	(279)	$	25,810	$	(14,718)	$	141,365	$	(14,997)

Schedule of 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, 2024
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(709)	$	8,979	$	(709)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(176)		1,323		(176)
State and municipal securities	(2)		364		(3,798)		40,184		(3,800)
Corporate debt securities	—		—		(1,026)		13,473		(1,026)
Asset based securities	(3)		523		(307)		4,439		(310)
Mortgage-backed GSE residential/multifamily and non-GSE	(160)		17,621		(2,722)		51,305		(2,882)
Total securities available for sale	$	(165)	$	18,508	$	(8,738)	$	119,703	$	(8,903)

Securities Held to Maturity


State and municipal securities	—		—		(2,714)		16,902		(2,714)



Total securities held to maturity	$	—	$	—	$	(2,714)	$	16,902	$	(2,714)
Total securities	$	(165)	$	18,508	$	(11,452)	$	136,605	$	(11,617)


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

December 31, 2023
Securities Available for Sale
U.S. Treasury securities	$	—	$	—	$	(949)	$	8,772	$	(949)
U.S. Government Sponsored Enterprises (GSEs)	—		—		(215)		1,451		(215)
State and municipal securities	—		—		(4,172)		40,663		(4,172)
Corporate debt securities	—		—		(1,258)		11,259		(1,258)
Asset based securities	(11)		1,102		(468)		6,904		(479)
Mortgage-backed GSE residential/multifamily and non-GSE	(268)		24,708		(4,257)		56,083		(4,525)
Total securities available for sale	$	(279)	$	25,810	$	(11,319)	$	125,132	$	(11,598)

Securities Held to Maturity


State and municipal securities	—		—		(3,399)		16,233		(3,399)



Total securities held to maturity	$	—	$	—	$	(3,399)	$	16,233	$	(3,399)
Total securities	$	(279)	$	25,810	$	(14,718)	$	141,365	$	(14,997)

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

- Definition

Tabular disclosure of information about investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Paragraph 5B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

Reference 16: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (b)
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Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 18: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Section 50
-Paragraph 5B
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

+ Details

SECURITIES - Schedule Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 206,002	$ 190,322
Gross Unrealized Gains	977	276
Gross Unrealized Losses	(8,903)	(11,598)
Fair Value	198,076	179,000
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	19,616	19,632
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2,714)	(3,399)
Fair Value	16,902	16,233
Debt securities restricted	20,836	27,477
Total securities
Amortized Cost	225,618	209,954
Gross Unrealized Gains	977	276
Gross Unrealized Losses	(11,617)	(14,997)
Fair Value	214,978	195,233
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,688	9,721
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(709)	(949)
Fair Value	8,979	8,772
U.S. Government Sponsored Enterprises (GSEs)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,154	2,446
Gross Unrealized Gains	5	37
Gross Unrealized Losses	(176)	(215)
Fair Value	1,983	2,268
State and municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	46,407	45,220
Gross Unrealized Gains	56	21
Gross Unrealized Losses	(3,800)	(4,172)
Fair Value	42,663	41,069
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	19,616	19,632
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2,714)	(3,399)
Fair Value	16,902	16,233
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,999	12,517
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1,026)	(1,258)
Fair Value	13,973	11,259
Asset based securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	15,420	19,112
Gross Unrealized Gains	135	54
Gross Unrealized Losses	(310)	(479)
Fair Value	15,245	18,687
Mortgage-backed GSE residential/multifamily and non-GSE
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	117,334	101,306
Gross Unrealized Gains	781	164
Gross Unrealized Losses	(2,882)	(4,525)
Fair Value	$ 115,233	$ 96,945

SECURITIES - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in less than one year	$ 2,427	$ 482
Due from one year to five years	12,539	11,671
Due after five to ten years	21,857	22,537
Due after ten years	51,845	54,326
Mortgage-backed securities	117,334	101,306
Amortized Cost	206,002	190,322
Fair Value
Due in less than one year	2,404	476
Due from one year to five years	11,842	10,855
Due after five to ten years	20,097	20,439
Due after ten years	48,500	50,285
Mortgage-backed securities	115,233	96,945
Total securities available for sale, fair value	198,076	179,000
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	13,810	7,743
Due after ten years	5,806	11,889
Mortgage-backed securities	0	0
Amortized Cost	19,616	19,632
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	11,955	6,483
Due after ten years	4,947	9,750
Mortgage-backed securities	0	0
Total securities held to maturity, fair value	16,902	16,233
Total securities
Amortized Cost	225,618	209,954
Fair Value	$ 214,978	$ 195,233

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net Income	$ 23,670	$ 23,056
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and software amortization	915	877
Net loss on securities available for sale	0	12
Net gain on other equity securities	(83)	(469)
Net amortization of securities	327	456
Amortization of core deposit intangible	457	245
Provision for credit losses	4,885	3,511
Deferred income taxes	284	71
(Gain) loss on sale of foreclosed assets	(3)	7
Stock-based compensation	746	668
Net decrease (increase) in loans held for sale	35	(752)
Income from bank owned life insurance	(673)	(511)
Increase in interest receivable	(432)	(1,358)
Increase in interest payable	399	696
Net other operating activities	(1,944)	4,977
Net cash provided by operating activities	28,583	31,486
INVESTING ACTIVITIES
Cash acquired in acquisition	74,262	0
Purchase of securities available for sale	(43,351)	(41,639)
Proceeds from sale of securities available for sale	106,005	10,532
Proceeds from sale of other equity securities	0	800
Proceeds from maturities, calls, and paydowns of securities available for sale	27,811	13,520
Net redemption (purchase) of restricted equity securities	1,999	(1,837)
Purchase of annuities	(909)	0
Purchase of bank owned life insurance	(2,700)	0
Net increase in loans	(188,034)	(188,460)
Proceeds from sale of foreclosed assets	3	10
Purchase of premises, equipment and software	(1,294)	(226)
Net cash used in investing activities	(26,208)	(207,300)
FINANCING ACTIVITIES
Net increase in deposits	93,610	195,658
Proceeds from issuance of common stock	413	1,566
Proceeds from restricted stock units	0	363
Repurchase of common stock	0	(979)
Net repayment of FHLB advances	(48,000)
Net proceeds of FHLB advances		24,000
Net repayment of other borrowings	(19,018)
Net proceeds of other borrowings		5,010
Net proceeds of subordinated notes	235	268
Common stock dividends paid	(2,410)	(2,391)
Net cash provided by financing activities	24,830	223,495
Net increase in cash and cash equivalents	27,205	47,681
Cash and cash equivalents at beginning of year	250,651	168,499
Cash and cash equivalents at end of year	277,856	216,180
Cash paid during the year for:
Interest	57,748	35,683
Income taxes	8,943	9,029
NONCASH TRANSACTIONS
Transfers of loans to foreclosed assets	0	43
Internally financed sale of foreclosed assets	$ 0	$ 53

FAIR VALUE OF ASSETS AND LIABILITIES - Schedule of Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 2,224	$ 3,128
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	2,224	3,128
Individually analyzed loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	2,191	3,095
Individually analyzed loans \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Individually analyzed loans \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Individually analyzed loans \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	2,191	3,095
Foreclosed assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	33	33
Foreclosed assets \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Foreclosed assets \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	0	0
Foreclosed assets \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 33	$ 33

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Basic Earnings Per Share:
Net Income	$	7,353	$	6,629	$	23,670	$	23,056
Weighted average common shares outstanding	9,608,868		8,846,018		9,161,622		8,791,007
Basic earnings per share	$	0.76	$	0.75	$	2.58	$	2.62
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	7,346	$	6,624	$	23,655	$	23,045
Weighted average common shares outstanding	9,608,868		8,846,018		9,161,622		8,791,007
Net dilutive effect of:
Assumed exercises of stock options and vesting of restricted stock units	117,016		194,669		136,156		225,596
Average shares and dilutive potential common shares	9,725,884		9,040,687		9,297,778		9,016,603
Dilutive earnings per share	$	0.76	$	0.73	$	2.54	$	2.56

STOCKHOLDERS’ EQUITY	9 Months Ended
STOCKHOLDERS’ EQUITY	Sep. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY As of September 30, 2024, the Company had 9,882,350 shares of common stock issued and outstanding and does not have any non-voting shares issued and outstanding. As of December 31, 2023, the Company had 8,841,349 shares of common stock issued and outstanding and does not have any non-voting shares issued and outstanding.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivative Instruments on the Balance Sheet


September 30, 2024						December 31, 2023
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	$	101,991	Other Assets	$	6,132	Interest Rate Products	$	104,180	Other Assets	$	7,691
Interest Rate Products	101,991		Other Liabilities	(6,160)		Interest Rate Products	104,180		Other Liabilities	(7,726)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net Income	$ 7,353	$ 6,629	$ 23,670	$ 23,056
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities available for sale arising during the period, net of (tax) benefit	2,467	(2,327)	2,513	(2,087)
Reclassification adjustment for losses (gains) on securities available for sale realized in net income, net of benefit (tax)	0	0	0	9
Other comprehensive income (loss)	2,467	(2,327)	2,513	(2,078)
Comprehensive income	$ 9,820	$ 4,302	$ 26,183	$ 20,978

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

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+ Details

ACQUISITION ACTIVITY

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

ACQUISITION ACTIVITY

On July 31, 2024 (the “Effective Date”), the Company closed the transactions pursuant to the terms of the Agreement and Plan of Merger (the “Merger Agreement”), by and between us, the Bank, and CBB Bancorp (“CBB Bancorp”), the parent company of Century Bank of Georgia (“Century Bank”). On the Effective Date, (i) CBB Bancorp merged with and into us (the “Corporate Merger”), and we were the surviving corporation in the Corporate Merger and (ii) subsequent to the Corporate Merger, Century Bank merged with and into the Bank (the “Bank Merger”) with the Bank as the surviving banking corporation in the Bank Merger.

The Company issued 961,920 shares of its common stock valued at $31,474 as of July 31, 2024, plus $3,150 in cash, in exchange for all outstanding shares of CBB Bancorp common stock.

Prior to the acquisition, Century Bank operated branch offices in Cartersville and Rockmart, Georgia and provided a full range of banking services. Including the effects of the purchase method of accounting adjustments, the Company acquired $336,817 in assets, including $127,871 in loans, and $308,747 in deposits. The merger expanded and strengthened the Company’s footprint in the Georgia market.

The fair value of consideration paid exceeded the net assets acquired and resulted in goodwill of $14,118. The Company performs a quarterly and annual impairment test on goodwill and no impairment was recorded as of September 30, 2024.

The acquired assets and assumed liabilities as of July 31, 2024, as well as the adjustments to record the assets and liabilities at fair value, are presented in the following table:


			Fair Value		As Recorded by
	Acquired		Adjustments		the Company

Cash and cash equivalents	$	66,605	$	—	$	66,605
Securities available for sale - sold day 1	104,724		—		104,724
Securities available for sale	2,750		(286)		2,464
Restricted equity securities	734		—		734
Time deposits held as investments	10,897		(90)		10,807
Loans	132,618		(4,747)		127,871
Less allowance for credit losses	(1,619)		1,619		—
Core deposit intangible	—		8,896		8,896
Premises and equipment, net	3,903		1,610		5,513
Other assets	9,203		—		9,203
Total assets acquired	$	329,815	$	7,002	$	336,817

Deposits	308,535		212		308,747
Subordinated notes	5,000		(307)		4,693
Accrued expenses and other liabilities	2,871		—		2,871
Total liabilities assumed	$	316,406	$	(95)	$	316,311
Net assets acquired					20,506
Cash					3,150
Common stock issued (961,920 shares)					31,474
Total consideration paid					34,624
Goodwill					$	14,118

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented in the acquisition above.

Securities Available for Sale: Securities available for sale were acquired with an adjustment to fair value based upon quoted market prices.

Time Deposits Held as Investments: 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.

Core Deposit Intangible: The core deposit intangible represents the value of the relationship that the acquired bank had with its deposit customers. The fair value of this asset was estimated based on a discounted cash flow methodology that gave consideration to expected customer attrition rates, cost of the deposit base and the net maintenance cost attributable to customer deposits.

Premises and Equipment: Premises and equipment were acquired with an adjustment to fair value, which represents the difference between the Company’s current analysis of property and equipment values completed in connection with the acquisition and book value acquired.

Other Assets: The carrying value of other assets approximate fair value.

Subordinated Notes: Subordinated notes were acquired with an adjustment to fair value based on a discounted cash flow calculation using the estimated market interest rate of similar instruments.

Accrued Interest and Other Liabilities: The carrying amounts of accrued interest and other liabilities approximate fair value.


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Net interest income	$	24,752	$	23,058	$	71,962	$	67,311
Net income	8,986		8,006		27,477		26,699

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2024

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, 2024		December 31, 2023
Commitments to extend credit	$	352,503	$	501,935
Standby letters of credit	6,152		2,846
Total	$	358,655	$	504,781

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 that 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, 2024 and September 30, 2023.

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.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

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 and the vesting of restricted stock units, 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 and restricted stock units.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Basic Earnings Per Share:
Net Income	$	7,353	$	6,629	$	23,670	$	23,056
Weighted average common shares outstanding	9,608,868		8,846,018		9,161,622		8,791,007
Basic earnings per share	$	0.76	$	0.75	$	2.58	$	2.62
Diluted Earnings Per Share:
Net income allocated to common shareholders	$	7,346	$	6,624	$	23,655	$	23,045
Weighted average common shares outstanding	9,608,868		8,846,018		9,161,622		8,791,007
Net dilutive effect of:
Assumed exercises of stock options and vesting of restricted stock units	117,016		194,669		136,156		225,596
Average shares and dilutive potential common shares	9,725,884		9,040,687		9,297,778		9,016,603
Dilutive earnings per share	$	0.76	$	0.73	$	2.54	$	2.56