First Western Financial (MYFW) 10-K 15 Mar 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Mar. 10, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-38595
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	37-1442266
Entity Address, Address Line One	1900 16th Street
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	531.8100
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MYFW
Security Exchange Name	NASDAQ
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 214.4
Entity Common Stock, Shares Outstanding		9,507,565
Documents Incorporated by Reference	Portions of the registrant’s Definitive Proxy Statement relating to its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2022.
Entity Central Index Key	0001327607
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Registrant Name	First Western Financial, Inc.

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	173
Auditor Name	Crowe LLP
Auditor Location	Denver, Colorado

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash and cash equivalents:
Cash and due from banks	$ 4,926	$ 6,487
Federal funds sold	0	1,491
Interest-bearing deposits in other financial institutions	191,586	379,005
Total cash and cash equivalents	196,512	386,983
Available-for-sale securities, at fair value	0	55,562
Held-to-maturity securities, at amortized cost (fair value of $74,718 as of December 31, 2022)	81,056
Correspondent bank stock, at cost	7,110	2,584
Mortgage loans held for sale, at fair value	8,839	30,620
Loans held for sale, at fair value	1,965	0
Loans (includes $23,321 and $0 measured at fair value, respectively)	2,469,413	1,949,137
Allowance for loan losses	17,183	13,732
Loans, net	2,452,230	1,935,405
Premises and equipment, net	25,118	23,976
Accrued interest receivable	10,445	7,151
Accounts receivable	4,873	5,267
Other receivables	1,973	1,949
Goodwill and other intangible assets, net	32,104	31,902
Deferred tax assets, net	6,914	6,845
Company-owned life insurance	16,152	15,803
Other assets	21,457	23,327
Assets held for sale	0	115
Total assets	2,866,748	2,527,489
Deposits:
Noninterest-bearing	583,092	636,304
Interest-bearing	1,822,137	1,569,399
Total deposits	2,405,229	2,205,703
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings	146,886	38,629
Subordinated notes	52,132	39,031
Accrued interest payable	1,125	355
Other liabilities	20,512	24,730
Total liabilities	2,625,884	2,308,448
Shareholders' Equity
Preferred stock - no par value; 10,000,000 shares authorized; 0 issued and outstanding	0	0
Common stock - no par value; 90,000,000 shares authorized; 9,495,440 and 9,419,271 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively	0	0
Additional paid-in capital	190,494	188,629
Retained earnings	51,887	30,189
Accumulated other comprehensive (loss)/income	(1,517)	223
Total shareholders’ equity	240,864	219,041
Total liabilities and shareholders’ equity	$ 2,866,748	$ 2,527,489

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Fair Value	$ 74,718
Loans held at fair value	$ 23,321	$ 0
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0
Common Stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	90,000,000	90,000,000
Common stock, shares outstanding (in shares)	9,495,440	9,419,271
Common stock, shares issued (in shares)	9,495,440	9,419,271

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Interest and dividend income:
Loans, including fees	$ 94,448	$ 60,758
Loans accounted for under the fair value option	1,347	0
Investment securities	2,053	770
Interest-bearing deposits in other financial institutions	2,245	397
Dividends, restricted stock	381	86
Total interest and dividend income	100,474	62,011
Interest expense:
Deposits	13,012	3,482
Other borrowed funds	4,258	1,934
Total interest expense	17,270	5,416
Net interest income	83,204	56,595
Less: Provision for loan losses	3,682	1,230
Net interest income, after provision for loan losses	79,522	55,365
Non-interest income:
Trust and investment management fees	18,943	20,200
Net gain on mortgage loans	5,306	16,060
Bank fees	2,660	1,780
Risk management and insurance fees	1,231	1,120
Income on company-owned life insurance	349	354
Net gain on equity interests	7	0
Net loss on loans accounted for under the fair value option	(891)	0
Unrealized gain recognized on equity securities	342	469
Other	465	60
Total non-interest income	28,412	40,043
Total income before non-interest expense	107,934	95,408
Non-interest expense:
Salaries and employee benefits	48,248	40,746
Occupancy and equipment	7,520	5,990
Professional services	7,896	6,473
Technology and information systems	4,462	3,707
Data processing	4,285	6,327
Marketing	1,888	1,613
Amortization of other intangible assets	308	17
Net gain on assets held for sale	(4)	0
Net gain on sale of other real estate owned	(44)	0
Other	4,547	3,255
Total non-interest expense	79,106	68,128
Income before income taxes	28,828	27,280
Income tax expense	7,130	6,670
Net income available to common shareholders	$ 21,698	$ 20,610
Earnings per common share:
Basic (in dollars per share)	$ 2.29	$ 2.58
Diluted (in dollars per share)	$ 2.23	$ 2.50

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 21,698	$ 20,610
Other comprehensive (loss)/income items, net of tax effect:
Unrealized losses on available-for-sale securities	(2,591)	(620)
Income tax effect	638	163
Amortization of net unrealized loss for the reclassification of available-for-sale securities transferred to held-to-maturity included in interest income	283	0
Income tax effect	(70)	0
Total other comprehensive loss	(1,740)	(457)
Comprehensive income	$ 19,958	$ 20,153

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other ComprehensiveLoss
Balance at beginning (in shares) at Dec. 31, 2020		7,951,773
Balance at beginning at Dec. 31, 2020	$ 154,962		$ 144,703	$ 9,579	$ 680
Increase (Decrease) in Stockholders' Equity
Net income	20,610			20,610
Other comprehensive loss, net of tax	(457)				(457)
Settlement of share awards (in shares)		58,884
Settlement of share awards	(501)		(501)
Issuance of common stock for Teton Acquisition (in shares)		1,337,791
Issuance of common stock for Teton Acquisition	39,818		39,818
Options exercised (in shares)		70,823
Options exercised	1,706		1,706
Stock-based compensation	2,903		2,903
Balance at ending (in shares) at Dec. 31, 2021		9,419,271
Balance at ending at Dec. 31, 2021	219,041		188,629	30,189	223
Increase (Decrease) in Stockholders' Equity
Net income	21,698			21,698
Other comprehensive loss, net of tax	(1,740)				(1,740)
Settlement of share awards (in shares)		67,860
Settlement of share awards	(876)		(876)
Options exercised (in shares)		8,309
Options exercised	179		179
Stock-based compensation	2,562		2,562
Balance at ending (in shares) at Dec. 31, 2022		9,495,440
Balance at ending at Dec. 31, 2022	$ 240,864		$ 190,494	$ 51,887	$ (1,517)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income	$ 21,698	$ 20,610
Adjustments to reconcile net income to net cash used in operating activities:
Net amortization of investment securities	130	670
Stock dividends received on correspondent bank stock	(381)	(86)
Provision for loan losses	3,682	1,230
Net gain on mortgage loans	(5,306)	(16,060)
Origination of mortgage loans	(439,682)	(1,425,713)
Proceeds from mortgage loans	465,819	1,564,466
Gain on disposal of fixed assets and intangibles	(21)	0
Depreciation and amortization	2,012	1,256
Net amortization of purchase accounting adjustments	55	187
Deferred income tax expense (benefit), net of valuation allowance	557	(668)
Increase in cash surrender value of company-owned life insurance	(349)	(354)
Stock-based compensation	2,562	2,903
Gain on sale of other real estate owned	(44)	0
Change in fair value of equity securities	(342)	(469)
Change in fair value of loans accounted for under the fair value option	891	0
Change in fair value of mortgage loans and mortgage banking derivatives	1,903	12,244
(Gain)/loss on assets held for sale	(4)	27
Net changes in operating assets and liabilities:
Change in accounts receivable	426	(275)
Change in accrued interest receivable and other assets	(3,647)	695
Change in accrued interest payable and other liabilities	(1,681)	1,852
Net cash provided by operating activities	48,278	162,515
Investment securities available-for-sale:
Maturities, prepayments, and calls	3,218	16,241
Purchases	(9,000)	(17,667)
Activity in held-to-maturity securities:
Maturities, prepayments, and calls	9,040	0
Purchases	(31,189)	0
Purchases of correspondent bank stock	(13,999)	(1)
Redemption of correspondent bank stock	9,854	983
Contributions to low-income housing tax credit investments	(214)	(2,087)
Loan and note receivable originations and principal collections, net	(487,973)	(159,577)
Purchases of premises and equipment	(2,967)	(2,108)
Purchase of loans	(36,115)	0
Proceeds from sale of assets held for sale	125	0
Proceeds from sale of other real estate owned	422	194
Net cash received on acquisitions	0	120,997
Net cash used in investing activities	(558,798)	(43,025)
Cash flows from financing activities
Net change in deposits	199,555	206,566
Payments to Federal Home Loan Bank borrowings	(545,920)	0
Proceeds from Federal Home Loan Bank borrowings	677,418	0
Payments to Federal Reserve borrowings	(23,241)	(194,608)
Proceeds from Federal Reserve borrowings	0	83,674
Payments on subordinated notes	(6,575)	0
Proceeds from subordinated notes, net of issuance costs	19,509	14,667
Proceeds from the exercise of stock options	179	1,706
Settlement of restricted stock	(876)	(501)
Net cash provided by financing activities	320,049	111,504
Net change in cash and cash equivalents	(190,471)	230,994
Cash and cash equivalents, beginning of year	386,983	155,989
Cash and cash equivalents, end of period	196,512	386,983
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	16,500	5,514
Income tax payment, net of refunds received	5,242	6,336
Cash paid for lease liabilities	3,354	2,947
Supplemental noncash disclosures:
Change in unrealized (loss)/gain on available-for-sale securities	(2,591)	(620)
Lease right-of-use-asset obtained in exchange for lease liabilities	801	2,262
Transfer of securities from available-for-sale to held-to-maturity	58,727	0
Transfer from loans to other real estate owned	378	0
Transfer of loans held for investment to loans held for sale	$ 1,985	$ 0
Common stock issued for Teton acquisition	0	39,818

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Basis of Presentation : The consolidated financial statements include the accounts of First Western Financial, Inc. ("FWFI"), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly-owned subsidiaries listed below (collectively referred to as the "Company," "we," "us," or "our"). FWFI is a bank holding company with financial holding company status registered with the Board of Governors of the Federal Reserve System. FWFI wholly owns the following subsidiaries: First Western Trust Bank (the "Bank") and Ryder, Stilwell Inc. ("RSI"). The Bank wholly owns the following subsidiaries, which are therefore indirectly wholly-owned by FWFI: First Western Merger Corporation ("Merger Corp.") and RRI, LLC ("RRI"). RSI and RRI are not active operating entities. The Company provides a fully-integrated suite of wealth management services including private banking, personal trust, investment management, mortgage loans, and institutional asset management services to individual and corporate clients principally in Colorado (metro Denver, Aspen, Boulder, Fort Collins and Vail Valley), Arizona (Phoenix and Scottsdale), California (Century City), Montana (Bozeman), and Wyoming (Jackson Hole, Laramie, Pinedale and Rock Springs). The Company’s revenues are generated from its full range of product offerings as noted above, but principally from net interest income (the interest income earned on the Bank’s assets net of funding costs), fee-based wealth advisory, investment management, asset management and personal trust services, and net gains earned on mortgage loans. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for financial information, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"), and where applicable, reporting practices prescribed for the banking and investment advisory industries. Consolidation : The Company’s policy is to consolidate all majority-owned subsidiaries in which it has a controlling financial interest and variable-interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Business Combinations and Divestitures : On December 31, 2021, the Company completed its merger pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with Teton Financial Services, Inc. (“Teton”), parent company of Rocky Mountain Bank, a Wyoming-chartered bank headquartered in Jackson, Wyoming. Management concluded that the merger represented a business combination, which is accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including the impact of the COVID-19 pandemic, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change include: the determination of the allowance for loan losses, the evaluation of goodwill impairment, and the fair value of financial instruments. Concentration of Credit Risk : Most of the Company’s lending activity is to clients located in and around metro Denver, Aspen, Fort Collins, and Vail, Colorado; Phoenix and Scottsdale, Arizona; Bozeman, Montana; and Jackson Hole, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. As of December 31, 2022 and December 31, 2021, 77.9% and 76.1%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. Cash and Cash Equivalents : Cash and cash equivalents include cash on hand, deposits at other financial institutions with original maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements. Investment Securities : Investments we intend to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are recorded at fair value using current market information from a pricing service, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax. The carrying values of our investment securities classified as available-for-sale are adjusted for unrealized gain or loss, and any gain or loss is reported on an after-tax basis as a component of other comprehensive income in shareholders' equity. Investments for which we have the intent and ability to hold to their maturity are classified as held-to-maturity securities and are recorded at amortized cost. Securities held-to-maturity are carried at cost, adjusted for the amortization of premiums and the accretion of discounts using the level-yield method over the remaining period until maturity. As of December 31, 2022, equity mutual funds have been recorded at fair value within the Other assets line of the Consolidated Balance Sheets with changes recorded in the Unrealized gain/(loss) recognized on equity securities line of the Consolidated Statements of Income. The Company invests in projects to create affordable housing. These investments are classified as Other assets on the Consolidated Balance Sheets. Investments in affordable housing projects that qualify for low-income housing tax credits ("LIHTC") are accounted for using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other benefits received and recognized as a component of applicable income tax expense in the Consolidated Statements of Income. Net purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities, without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Declines in the fair value of available-for-sale securities and held-to-maturity securities below their cost that are deemed to be other-than-temporary are recorded in earnings as realized losses in Non-interest income. Management evaluates securities for other-than-temporary impairment ("OTTI") on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to loss on securities, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. As of December 31, 2022 and 2021, no securities were determined to be other-than-temporarily impaired. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Correspondent Bank Stock : Correspondent bank stock includes stock in the Federal Home Loan Bank of Topeka ("FHLB"), Federal Reserve Bank ("FRB"), and Bankers’ Bank of the West ("BBW"), which are considered restricted securities because the Company may be required to hold the stock in order to maintain the correspondent banking relationship with these institutions. No ready market exists for the FHLB and FRB stock and therefore, no quoted market values exist. For financial reporting purposes, the FHLB and FRB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. The BBW stock is carried at fair value. No impairment was recorded as of December 31, 2022 and 2021. Both cash and stock dividends are reported as income when received. Mortgage Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized losses, if any, are recorded and charged to earnings. Servicing rights are released when the associated mortgage loans are sold. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans : Loans the Company has the intent and ability to hold for the foreseeable future, until maturity, or until payoff are reported at their outstanding unpaid principal balances, adjusted for charge-offs and recoveries, net of deferred costs (fees) and unamortized premiums/(unaccreted discounts), and the allowance for loan losses. Interest income is accrued on unpaid principal balances. Fees received at origination, net of certain direct origination costs for providing loan commitments and letters of credit that result in loans, are deferred and amortized to interest income over the life of the related loan or until payoff, at which time the remaining unamortized fee is recorded as interest income. Fees, net of certain direct origination costs on commitments and letters of credit, are amortized to interest income over the commitment period. Past Due Loans : The accrual of interest on loans is discontinued at the time the loan becomes 90 days delinquent unless the loan is well secured and in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off if collection of interest or principal is considered doubtful. Interest accrued but not collected is charged off against interest income at the time a loan is placed on non-accrual status. The interest collected on non-accrual loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans can be returned to accrual status when there is a sustained period of repayment performance (usually six-months or longer) and the collectability of future payments is reasonably assured. Troubled Debt Restructurings : A troubled debt restructuring ("TDR") is a loan the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower the Company would not otherwise consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty, include but are not limited to (i) a reduction in the stated interest rate of the loan, (ii) an extension of the maturity date of the loan at an interest rate below market, or (iii) a reduction of the accrued interest. Loan modifications granted by the Company are reviewed on a case-by-case basis to determine if they should be considered a restructured loan. COVID-19 Loan Modifications: As a result of the COVID-19 pandemic, a loan modification program was designed and implemented to assist our clients experiencing financial stress resulting from the economic impacts caused by the global pandemic. The Company offered loan extensions, temporary payment moratoriums, and financial covenant waivers for commercial and consumer borrowers impacted by the pandemic who have a pass risk rating and have not been delinquent over 30 days on payments in the prior two years, primarily for a period of 180 days or less. COVID-19 and CARES Act : On March 11, 2020 the World Health Organization declared the outbreak of COVID-19 a global pandemic, which continues to spread throughout the United States and the around the world. In response to the COVID-19 pandemic, the President signed the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") into law on March 27, 2020. The objective of the CARES Act is to prevent a severe economic downturn using various measures, including economic stimulus to significantly impacted industry sectors. We continue to monitor the impact of COVID-19 closely, as well as any effects that may result from the CARES Act and other government actions. See Note 5 - Loans and the Allowance for Loan Losses for further discussion on our loan modification program. All loans modified in response to COVID-19 are classified as performing and pass rated as of December 31, 2022 and 2021. These loans are included in the allowance for loan loss general reserve in accordance with ASC 450-20. Management has increased our loan level reviews and portfolio monitoring to address the changing environment. Management believes the diversity of the loan portfolio is prudent and remains consistent with the credit culture and goals of the Bank. The Company is a participant in the Federal Reserve’s Main Street Lending Program ("MSLP") to support lending to small and medium-sized for profit businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. The Company sold a 95% participation in new MSLP loans to the Main Street Special Purpose Vehicle ("SPV") at par value. The Company must retain 5% of the MSLP loan until (i) it matures or (ii) neither the Main Street SPV nor a Governmental Assignee holds an interest in MSLP Loan in any capacity, whichever comes first. See Note 5 - Loans and the Allowance for Loan Losses for further discussion on our participation in the program. Allowance for Loan Losses : The Company’s reserve for loan losses is an estimate of the probable incurred loan losses and is comprised of (i) the allowance for loan losses and (ii) the reserve for unfunded commitments. The reserve for unfunded commitments is included in Other liabilities in the accompanying Consolidated Balance Sheets and the loan balances in the accompanying Consolidated Balance Sheets are reported net of the allowance for loan losses. The allowance for loan losses is established through a provision for loan losses, which is a noncash charge to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and dollar volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. We are closely monitoring the changing dynamics in the economy and related impacts to our clients. Management will continue to closely monitor the loan portfolio and analyze the economic data to assess the impact on the allowance for loan losses. A loan is considered impaired when, based on current information and events, it is probable the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. TDR and non-accrual loans are separately evaluated for impairment and included in the separately identified impairment disclosures. If cash flow dependent, TDR and non-accrual loans will be measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR or non-accrual loan is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDR and non-accrual loans that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting all scheduled principal and interest payments. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The allowance for loan losses is comprised of specific loan loss reserves and general loan loss reserves. The impairment of a specific loan is measured based either on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate, or (ii) the fair value of the underlying collateral, less costs to sell, if the repayment is expected to be provided predominantly by the sale of the underlying collateral. Specific impairments are measured on a loan-by-loan basis if risk characteristics are unique to an individual borrower. The general loan loss reserve covers non-impaired loans and is established by evaluating the incurred loss on homogenous pools of loans, not specifically reviewed for impairment as noted above, that have common risk characteristics. The general loan loss reserve is based on historical loss experiences adjusted for nine qualitative factors on all loans in the portfolio not considered impaired. Certain factors are applied to each pool and certain factors are applied to all non-individually reviewed loans. The nine qualitative factors the Company considers are: • Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. • Levels and trends in net charge-offs. • The existence and effect of any concentrations of credit and changes in the level of such concentrations. • Changes in the nature or volume of the loan portfolio and in the terms of loans. • Changes in the experience, ability, and depth of lending management and other relevant staff. • Changes in the volume and severity of past due loans. • Changes in the quality of the loan review system and associated grading changes. • Change in the level of overdrafts. • Levels and status of loans modified as a result of COVID-19. The following portfolio segments have been identified: • Cash, Securities and Other—consists of consumer and commercial purpose loans that are primarily secured by securities managed and under custody with us, cash on deposit with us, or life insurance policies. In addition, loans in this portfolio are collateralized with other sources of collateral. This segment of our portfolio is affected by a variety of local and national economic factors affecting borrowers’ employment prospects, income levels, and overall economic sentiment. PPP loans that are fully guaranteed by the SBA are classified within this line item as of December 31, 2022 and 2021. • Consumer and Other—consists of unsecured consumer loans. Loans held for investment accounted for under the fair value option are also classified within this line item. • Construction and Development—consists of loans to finance the construction of residential and non-residential properties. These loans are dependent on the strength of the industries of the related borrowers and the risks consistent with construction projects. • 1-4 Family Residential—consists of loans and home equity lines of credit secured by 1-4 family residential properties. These loans typically enable borrowers to purchase or refinance existing homes, most of which serve as the primary residence of the owner. In addition, some borrowers secure a commercial purpose loan with owner occupied or non-owner occupied 1-4 family residential properties. Loans in this segment are dependent on the industries tied to these loans as well as the national and local economies, and local residential and commercial real estate markets. • Commercial Real Estate ("CRE"), Owner Occupied and Non-Owner Occupied—consists of commercial loans collateralized by real estate. These loans may be collateralized by owner occupied or non-owner occupied real estate, as well as multi-family residential real estate. These loans are dependent on the strength of the industries of the related borrowers and the success of their businesses. • Commercial and Industrial—consists of commercial and industrial loans, including working capital lines of credit, permanent working capital term loans, business asset loans, acquisition, expansion and development loans, and other loan products, primarily in our target markets. This portfolio primarily consists of term loans and lines of credit which are dependent on the strength of the industries of the related borrowers and the success of their businesses. This category includes MSLP loans as of December 31, 2022 and 2021. The reserve for unfunded commitments represents the estimate for probable loan losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include commercial and standby letters of credit, unused lines of credit, and unfunded loan commitments expected to be funded. The process used to determine the reserve for unfunded commitments is consistent with the process for determining the allowance for loan losses, adjusted for estimated funding probabilities. Changes to the level of the reserve for unfunded commitments are recognized through the provision for loan losses for off-balance sheet credit exposures, included in the non-interest other expense line of the Consolidated Statements of Income. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Prior to participating in the MSLP, the Company obtained a true sale opinion with regards to the legal isolation condition of the contract. Legal counsel determined that given the facts and circumstances provided, consistent with the FDIC rule entitled “Treatment of financial assets transferred in connection with a securitization or participation”, 12 C.F.R. §360.6, that the MSLP documents would be considered a true sale to the buyer. As such, Management concludes the MSLP loans qualify for sales accounting treatment and are true sales contracts under GAAP. Premises and Equipment : Premises and equipment are carried at cost, net of accumulated depreciation, with the exception of artwork and land, which are carried at cost. The Company acquired land and three buildings associated with the Teton Acquisition. These assets were initially recorded at their fair values based on recent appraisals and the buildings will be depreciated over their new remaining useful life, ranging from 25 to 50 years. Leasehold improvements are depreciated using the straight-line method and recognized over the shorter of the lease term or estimated useful lives of the assets, ranging from 7 to 15 years. Furniture/equipment and software are depreciated using the straight-line method and recognized over the estimated useful lives of the assets, ranging from 3 to 7 years. Goodwill and Other Intangible Assets : Goodwill represents the excess of purchase price over the fair value of net identifiable tangible and intangible assets acquired in business combinations. The Company has acquired other identifiable intangible assets, primarily consisting of customer relationships, non-competition agreements, and recorded goodwill through its acquisition of financial services companies. Goodwill and other indefinite-lived intangible assets are not amortized, but are tested for impairment at the reporting unit level at least annually by applying a fair value-based test using discounted estimated future net cash flows. The Company has selected October 31 as the date to perform its annual impairment tests. Impairment exists when the carrying amount of the goodwill and other intangible assets exceeds their estimated fair values. Impairment losses, if any, are recognized as a charge to non-interest expense and an adjustment to the carrying value of the goodwill or other intangible assets. Subsequent reversals of impairment charges are prohibited. Goodwill is the only intangible asset with an indefinite life on the Company’s Consolidated Balance Sheets. Other definite-lived intangible assets, including customer relationship intangibles, are amortized on an accelerated basis over periods representing the estimated remaining lives of the assets of one Accounts Receivable : Accounts receivable primarily represents the billed but unpaid fees from trust and investment advisory services owed by clients, which are typically calculated as a percentage of average invested balances. The majority of the Company’s investment advisory clients are billed quarterly in arrears based on the daily average balance in the client’s trust or investment accounts for that quarter. Other Receivables : Other accounts receivable represents compensation paid to employees that is contingent on future employment and recognized in the Consolidated Statements of Income over the estimated service period and sales of investments and assets in which the Company has obtained a firm commitment as of the balance sheet dates. Leases : Leases represent a contract that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company leases certain identified assets from third parties. Leases in which the Company is determined to be the lessee are primarily operating leases. Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. Operating leases are included in the Other assets and Other liabilities line items of the Consolidated Balance Sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Short-term leases of 12 months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Company’s Consolidated Balance Sheets. Renewal and termination options are considered when determining short-term leases. Leases are accounted for on an individual lease level. Rent holidays and rent escalations are recognized on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service. Other Real Estate Owned : Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less selling costs, at the date of foreclosure, establishing a new cost basis in the asset. Physical possession of residential real estate property collateralizing a residential mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through similar legal agreement. Subsequent to foreclosure, valuations are periodically performed by management, with any subsequent declines in value recorded as a charge to expense through an impairment recorded directly against the other real estate owned assets. Changes in the valuation allowance are recorded as provision for losses on other real estate owned. Revenue and expenses from operations related to other real estate owned are included in the Provision on other real estate owned line of the Consolidated Statements of Income. Company-Owned Life Insurance : The Company has purchased life insurance policies on certain current and former officers and key employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Mortgage Banking Derivatives : Commitments to fund mortgage loans, interest rate lock commitments ("IRLC") and forward sale commitments ("FSC"), to be sold in the secondary market for the future delivery of these loans are accounted for as free standing derivatives. The fair value of the IRLC is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. The Company sells mortgage loans to third party investors at the best execution available which includes best efforts, mandatory, and bulk bids. Loans committed under mandatory or bulk bid are considered FSC and qualify as financial derivatives. Fair values of these mortgage derivatives are estimated based on the change in the loan pricing from the date of the commitment to the period end date for any unsettled commitments. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Consolidated Statements of Income. In order to manage the interest rate risk on our uncommitted IRLC and mortgage loans held for sale pipeline, the Company enters into mortgage derivative financial instruments called To Be Announced ("TBA"), which we refer to as forward commitments. TBA agreements are forward contracts to purchase mortgage backed securities ("MBS") that will be issued by a US Government Sponsored Enterprise. The Bank purchases or sells these derivatives to offset the changes in value of our mortgage loans held for sale and IRLC adjusted pipeline where we have exposure to interest rate volatility. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Consolidated Statements of Income. Stock-Based Compensation : The Company has stock-based compensation plans that provide for the granting of stock options, restricted stock awards, restricted stock units and performance stock units to associates and non-associate directors who perform services for

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS On July 22, 2021, the Company entered into the Merger Agreement with Teton, parent company of Rocky Mountain Bank, a Wyoming-chartered bank headquartered in Jackson, Wyoming. As provided by the Merger Agreement, Teton merged into the Company, as subject to the terms and conditions set forth in the Merger Agreement, with the Company continuing as the surviving corporation. As provided by the Merger Agreement, Rocky Mountain Bank merged with and into the Bank, with the Bank surviving the bank merger. The transaction closed on December 31, 2021 with an aggregate purchase price of $51.3 million. As part of its long-term growth strategy, the Teton Acquisition expands First Western’s presence in Wyoming and allows the Bank to deliver its unique approach to private and commercial banking to more clients in the region. The Teton Acquisition was accounted for under the acquisition method of accounting and therefore all assets and liabilities were measured and recorded at their fair values as of the acquisition close date of December 31, 2021 with final measurement period adjustments made as of March 31, 2022. All non-equity acquisition related costs were expensed as incurred. Certain acquisition costs related to the issuance of equity were capitalized as of December 31, 2021. Market value adjustments for assets acquired and liabilities assumed were amortized or accreted on a level yield basis over the estimated life of the asset or liability. Loans acquired were recorded at their estimated fair value and therefore no allowance for loan and lease losses was recorded at the date of acquisition. Goodwill of $6.2 million, which is not tax deductible, was recognized in the transaction and represents expected synergies and cost savings resulting from combining the expanded footprint and expertise of the associates. Additionally, core deposit intangible assets were identified and recorded at their estimated fair values and are amortized over their estimated useful life. On August 31, 2021, the Company completed the issuance and sale of subordinated notes, which provided partial funding of the transaction. See Note 10 – Borrowings for more information. The following presents the final, recorded fair values of the assets acquired and liabilities assumed in the transaction with Teton as of December 31, 2021, including all measurement period adjustments to the provisional estimates. The measurement period has closed, with no further adjustments expected (dollars in thousands): Fair value of consideration transferred Provisional Estimates Measurement Period Adjustments December 31, Cash consideration $ 11,501 $ — $ 11,501 Common stock issued 39,818 — 39,818 Total fair value of consideration transferred 51,319 — 51,319 Assets acquired Cash and cash equivalents 132,498 — 132,498 Available-for-sale securities, at fair value 18,058 — 18,058 Correspondent bank stock, at cost 928 — 928 Mortgage loans held for sale 840 — 840 Loans, net 252,275 (857) 251,418 Premises and equipment 17,758 — 17,758 Accrued interest receivable 923 — 923 Accounts receivable 95 — 95 Other receivable 520 — 520 Core deposit intangible (1) 1,264 698 1,962 Other assets 226 242 468 Assets held for sale 115 5 120 Total assets acquired 425,500 88 425,588 Liabilities assumed Deposits 379,227 (29) 379,198 Accrued interest payable 26 — 26 Other liabilities 1,283 — 1,283 Deferred tax liabilities, net 42 (71) (29) Total liabilities assumed 380,578 (100) 380,478 Net assets acquired 44,922 188 45,110 Goodwill recognized $ 6,397 $ (188) $ 6,209 _____________________________ (1) The core deposit intangible was determined to have an estimated life of 10 years. The fair value adjustments were determined using discounted expected cash flows. Loans had a fair value of $252.3 million and a contractual balance of $256.3 million as of December 31, 2021. The discount on the loans acquired in this transaction due to anticipated credit loss, as well as considerations for market interest rates, totaled $4.0 million, representing 1.6% of their contractual balance. There were no loans acquired that were considered to be purchased credit impaired ("PCI") loans. The composition of the contractual balance of acquired loans as of December 31, 2021 is detailed in the table below (dollars in thousands): Year Ended 2021 Cash, Securities and Other (1) $ 20,080 Construction and Development 33,977 1-4 Family Residential 70,348 Non-Owner Occupied CRE 43,162 Owner Occupied CRE 33,000 Commercial and Industrial 55,690 Total loans 256,257 Acquisition fair value adjustments (3,982) Loans, net $ 252,275 _____________________________ (1) Includes $6.7 million in PPP loans. The Company incurred $1.2 million and $4.1 million in expenses related to the acquisition during the years ended December 31, 2022 and December 31, 2021, respectively. The following presents the acquisition expenses within Non-interest expense of the Consolidated Statements of Income as of the dates noted (dollars in thousands): Year Ended Year Ended 2022 2021 Mergers and acquisitions expense: Salaries and employee benefits $ 591 $ 547 Professional services 563 1,118 Technology and information systems 7 — Data processing (73) 2,428 Marketing 81 — Other 54 8 Total mergers and acquisitions expense $ 1,223 $ 4,101 The following table presents pro forma information for the years ended December 31, 2022 and 2021, as if the Teton Acquisition had occurred on January 1, 2021. The information for the year ended December 31, 2022 reflects actual results presented in our Consolidated Statements of Income. Information for the year ended December 31, 2021 has been prepared for comparative purposes only, and is not indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the period presented, nor is it indicative of future results (in thousands, except per share data): Pro Forma Twelve Months Ended December 31, 2022 2021 Net interest income after provision for loan losses $ 79,522 $ 68,019 Noninterest income 28,412 41,206 Net income 21,698 23,234 Pro forma earnings per share: Basic 2.29 2.49 Diluted 2.23 2.43

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES The following presents the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands): December 31, 2022 Amortized Gross Gross Fair Investment securities held-to-maturity: U.S. Treasury debt $ 243 $ — $ (9) $ 234 Corporate bonds 23,819 — (2,453) 21,366 GNMA mortgage-backed securities – residential 39,426 — (2,800) 36,626 FNMA mortgage-backed securities – residential 6,708 — (506) 6,202 Government CMO and MBS - commercial 6,786 13 (403) 6,396 Corporate CMO and MBS 4,074 — (180) 3,894 Total securities held-to-maturity $ 81,056 $ 13 $ (6,351) $ 74,718 The following presents the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss as of the date noted (dollars in thousands): December 31, 2021 Amortized Gross Gross Fair Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ (3) $ 247 U.S. Government Agency 3,522 — — 3,522 Corporate bonds 8,113 227 (15) 8,325 GNMA mortgage-backed securities – residential 26,611 185 (146) 26,650 FNMA mortgage-backed securities – residential 14,400 43 — 14,443 Government CMO and MBS - commercial 878 — — 878 Corporate CMO and MBS 1,492 23 (18) 1,497 Total securities available-for-sale $ 55,266 $ 478 $ (182) $ 55,562 Net amortization of premiums and discounts related to mortgage securities during each of the years ended December 31, 2022 and 2021 was $0.1 million and is included in Net interest income in the Consolidated Statements of Income. The Company reassessed classification of investment securities and, effective April 1, 2022, elected to transfer all securities, fair valued at $58.7 million, from available-for-sale to held-to-maturity. The related unrealized loss of $2.3 million included in other comprehensive income on April 1, 2022 remained in other comprehensive income and is being amortized out with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. No gain or loss was recorded at the time of transfer. As of December 31, 2022, the amortized cost and estimated fair value of held-to-maturity securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. December 31, 2022 Amortized Fair Due within one year $ — $ — Due between one year and five years 2,234 2,048 Due between five years and ten years 21,548 19,290 Due after ten years 280 262 Securities (CMO and MBS) 56,994 53,118 Total $ 81,056 $ 74,718 For the year ended December 31, 2022, the Company committed $6.0 million in total to two bank technology funds. During the year ended December 31, 2022, the Company made $1.3 million in contributions to both partnerships and received a $0.1 million return on investment. As of December 31, 2022, the Company held a balance of $1.3 million, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $4.7 million in future contributions. In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. During the years ended December 31, 2022 and 2021, the Company did not make any contributions to the SBIC fund and received a $0.1 million return of capital. As of December 31, 2022 and 2021, the Company held a balance of $2.0 million in the SBIC fund, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $1.0 million in future SBIC investments. As of December 31, 2022 and December 31, 2021, securities with carrying values totaling $22.6 million and $17.3 million, respectively, were pledged to secure various public deposits and credit facilities of the Company. As of December 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity. As of December 31, 2022, 98 securities were in an unrecognized loss position, with unrecognized losses totaling $6.4 million. As of December 31, 2021, 10 securities were in an unrealized loss position with unrealized losses totaling $0.2 million. Of the securities in an unrecognized loss position as of December 31, 2022, 14 have been in a continuous unrecognized loss position for more than twelve months, and the remaining have been in a continuous unrecognized loss position for less than twelve months. The unrecognized loss positions were caused primarily by interest rate changes and market assumptions about prepayments of principal and interest on the underlying mortgages. Because the decline in market value is attributable to market conditions, not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be near or at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of December 31, 2022. The following presents securities with unrecognized losses aggregated by major security type and length of time in a continuous unrecognized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total December 31, 2022 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 234 $ (9) $ 234 $ (9) Corporate bonds 20,911 (2,436) 455 (17) 21,366 (2,453) GNMA mortgage-backed securities – residential 22,371 (1,051) 14,255 (1,749) 36,626 (2,800) FNMA mortgage-backed securities – residential 6,202 (506) — — 6,202 (506) Government CMO and MBS - commercial 5,591 (403) — — 5,591 (403) Corporate CMO and MBS 3,499 (147) 395 (33) 3,894 (180) Total $ 58,574 $ (4,543) $ 15,339 $ (1,808) $ 73,913 $ (6,351) The following presents securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available-for-sale: U.S. Treasury Debt $ 247 $ (3) $ — $ — $ 247 $ (3) Corporate bonds 485 (15) — — 485 (15) GNMA mortgage-backed securities - residential 17,205 (146) — — 17,205 $ (146) Corporate CMO and MBS — — 521 (18) 521 (18) Total $ 17,937 $ (164) $ 521 $ (18) $ 18,458 $ (182)

CORRESPONDENT BANK STOCK

CORRESPONDENT BANK STOCK	12 Months Ended
	Dec. 31, 2022
CORRESPONDENT BANK STOCK
CORRESPONDENT BANK STOCK	CORRESPONDENT BANK STOCK The following presents the Company’s investments in correspondent bank stock, as of the dates noted (dollars in thousands): December 31, 2022 2021 FHLB $ 7,078 $ 1,625 BBW 32 31 FRB — 928 Total $ 7,110 $ 2,584

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
LOANS AND THE ALLOWANCE FOR LOAN LOSSES	LOANS AND THE ALLOWANCE FOR LOAN LOSSES The following presents a summary of the Company’s loans as of the dates noted (dollars in thousands): December 31, December 31, Cash, Securities and Other (1) $ 165,670 $ 261,190 Consumer and Other (2) 49,954 34,758 Construction and Development 288,497 178,716 1-4 Family Residential 898,154 580,872 Non-Owner Occupied CRE 496,776 482,622 Owner Occupied CRE 216,056 212,426 Commercial and Industrial (3) 361,028 203,584 Total loans held for investment 2,476,135 1,954,168 Deferred fees and unamortized premiums/(unaccreted discounts), net (4) (6,722) (5,031) Allowance for loan losses (17,183) (13,732) Loans, net $ 2,452,230 $ 1,935,405 _____________________________ (1) Includes Paycheck Protection Program ("PPP") loans of $7.1 million and $46.8 million as of December 31, 2022 and 2021, respectively. (2) Includes $23.4 million of unpaid principal balance of loans held for investment measured at fair value as of December 31, 2022. (3) Includes MSLP loans of $6.6 million and $6.8 million as of December 31, 2022 and 2021, respectively. (4) Includes fair value adjustments on loans held for investment accounted for under the fair value option. As of December 31, 2022 and 2021, total loans held for investment included $234.7 million and $356.7 million, respectively, of performing loans purchased through mergers or acquisitions. As of December 31, 2022, Consumer and Other included $23.4 million of unpaid principal balance of loans held for investment measured at fair value. See Note 17 – Fair Value Option. The CARES Act created the paycheck protection program ("PPP"), which is administered by the Small Business Administration ("SBA"). The PPP is intended to provide loans to small businesses to pay their employees, rent, mortgage interest and utilities. The loans may be forgiven conditioned upon the client providing payroll documentation evidencing their compliant use of funds and otherwise complying with the terms of the program. The Bank is an approved SBA lender and as of December 31, 2022, the Cash, Securities and Other portion of the loan portfolio included $7.1 million of PPP loans, or 4.3% of the total category. As of December 31, 2021, the Cash, Securities, and Other portion of the loan portfolio included $46.8 million of PPP loans, or 17.9% of the total category. The Company is a participant in the Federal Reserve’s MSLP to support lending to small and medium-sized for profit businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. As of December 31, 2022, the Company’s Commercial and Industrial loans included five MSLP loans with the net carrying amount of $6.6 million, or 1.8% of the total category. As of December 31, 2021, the Company’s Commercial and Industrial loans included five MSLP loans with the net carrying amount of $6.8 million, or 3.3% of the total category. Loan Modifications As a result of the COVID-19 pandemic, a loan modification program was designed and implemented to assist our clients experiencing financial stress resulting from the economic impacts caused by the global pandemic. The Company offered loan extensions, temporary payment moratoriums, and financial covenant waivers for commercial and consumer borrowers impacted by the pandemic who have a pass risk rating and have not been delinquent over 30 days on payments in the last two years. In 2021, the deferral period ended for all non-acquired loans previously modified and payments have resumed under the original terms. As of December 31, 2022, the Company’s loan portfolio included 49 non-acquired loans which were previously modified under the loan modification program, totaling $78.4 million. Through the Teton Acquisition, the Company acquired loans which were previously modified and are still in their deferral period. As of December 31, 2022, there were 14 of these loans, totaling $3.3 million. The CARES Act provides banks optional, temporary relief from accounting for certain loan modifications as a TDR. The modifications must be related to the adverse effects of COVID-19, and certain other criteria are required to be met in order to apply the relief. Interagency guidance from Federal Reserve and the FDIC confirmed with the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. We believe our loan modification program meets that definition and have not classified any of these modifications as a TDR as of December 31, 2022 and 2021. In accordance with that guidance, the Company recognized interest income on all loans modified for temporary payment moratoriums, primarily for a period of 180 days or less. All loans modified in response to COVID-19 are classified as performing and pass rated as of December 31, 2022. These loans are included in the allowance for loan loss general reserve in accordance with ASC 450-20. Management has increased our loan level reviews and portfolio monitoring to address the changing environment. Management believes the diversity of the loan portfolio is prudent and remains consistent with the credit culture and goals of the Bank. Interest accrued during the modification term on modified loans is deferred to the end of the loan term. As of December 31, 2022, no allowance for loan loss was deemed necessary on the accrued interest balances related to loan modifications. The following presents, by class, an aging analysis of the recorded investments (excluding accrued interest receivable, deferred fees, and unamortized premiums/(unaccreted discounts) which are not material) in loans past due as of the dates noted (dollars in thousands): December 31, 2022 30-59 60-89 90 or Total Current Total Cash, Securities and Other $ 1,735 $ 539 $ 4 $ 2,278 $ 163,392 $ 165,670 Consumer and Other 996 167 145 1,308 48,646 49,954 Construction and Development — — 201 201 288,296 288,497 1-4 Family Residential 1,747 — — 1,747 896,407 898,154 Non-Owner Occupied CRE 1,073 — — 1,073 495,703 496,776 Owner Occupied CRE 1,165 — — 1,165 214,891 216,056 Commercial and Industrial 5,051 10,724 1,318 17,093 343,935 361,028 Total $ 11,767 $ 11,430 $ 1,668 $ 24,865 $ 2,451,270 $ 2,476,135 December 31, 2021 30-59 60-89 90 or Total Current Total Cash, Securities and Other $ 745 $ — $ 6 $ 751 $ 260,439 $ 261,190 Consumer and Other 454 — 2 456 34,302 34,758 Construction and Development 2,758 — — 2,758 175,958 178,716 1-4 Family Residential 1,449 — — 1,449 579,423 580,872 Non-Owner Occupied CRE — 2,548 — 2,548 480,074 482,622 Owner Occupied CRE 1,419 — — 1,419 211,007 212,426 Commercial and Industrial 748 — 2,200 2,948 200,636 203,584 Total $ 7,573 $ 2,548 $ 2,208 $ 12,329 $ 1,941,839 $ 1,954,168 As of December 31, 2022 and 2021, the Company had one loan, totaling an immaterial amount, in the Commercial and Industrial portfolio that was more than 90 days delinquent and accruing interest. Non-Accrual Loans and Troubled Debt Restructurings The following presents the recorded investment in non-accrual loans by class as of the dates noted (dollars in thousands): December 31, December 31, Cash, Securities and Other $ 4 $ 6 Consumer and Other 146 2 Construction and Development 201 — 1-4 Family Residential — 75 Owner Occupied CRE 1,165 1,241 Commercial and Industrial 10,833 2,938 Total $ 12,349 $ 4,262 Non-accrual loans classified as TDR accounted for $3.1 million of the recorded investment as of December 31, 2022 and $4.3 million as of December 31, 2021. Non-accrual loans are classified as impaired loans and individually evaluated for impairment. The following presents a summary of the unpaid principal balance of loans classified as TDRs as of the dates noted (dollars in thousands): December 31, December 31, Accruing Non-Owner Occupied CRE $ — $ 55 Non-accrual Cash, Securities, and Other 4 6 1-4 Family Residential — 75 Owner Occupied CRE 1,165 1,241 Commercial and Industrial 1,951 2,938 Total 3,120 4,315 Allowance for loan losses associated with TDR — (1,751) Net recorded investment $ 3,120 $ 2,564 As of December 31, 2022 and December 31, 2021, the Company had not committed any additional funds to a borrower with a loan classified as a TDR. The Company did not modify any loans resulting in TDR status during the year ended December 31, 2022. The Company modified three loans resulting in TDR status during the year ended December 31, 2021. The first loan was a small mortgage with a remaining balance of $0.1 million where the borrower was unable to make payments or obtain additional financing to pay off the mortgage. As a result, we modified the loan at the maturity date with a one-year renewal to allow the borrower time to seek a refinance. As of December 31, 2022, the loan has been paid in full as agreed in the loan modification. The second and third loans modified are in relation to one borrower who has two loans, one Commercial Real Estate Loan in the amount of $1.2 million, which is the space where the related business operates, and a Commercial loan with a balance of $0.7 million. The borrower had experienced a reduction in cash flow through ongoing impact from the pandemic and related shut downs and hiring shortages. As a result, the Company modified both loans allowing for a six month interest only period to provide cash flow relief. The Company obtained a reduced term on the business loan as well as additional collateral from the Borrower. All three of the loans modified during 2021 were sufficiently collateralized and therefore did not require any specific reserve. TDRs are reviewed individually for impairment and are included in the Company’s specific reserves in the allowance for loan losses. If charged off, the amount of the charge off is included in the Company’s charge off factors, which impact the Company’s reserves on non-impaired loans. The following presents impaired loans by portfolio and related valuation allowance as of the periods presented (in thousands): December 31, 2022 December 31, 2021 Total Unpaid Allowance Total Unpaid Allowance Impaired loans with a valuation allowance: Consumer and Other $ — $ — $ — $ 2 $ 2 $ 2 Commercial and Industrial — — — 2,190 2,190 1,751 Total $ — $ — $ — $ 2,192 $ 2,192 $ 1,753 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 4 $ 4 $ — $ 6 $ 6 $ — Construction and Development 201 201 — — — — 1-4 Family Residential — — — 75 75 — Owner Occupied CRE 1,165 1,165 — 1,241 1,241 — Commercial and Industrial 10,833 10,833 — 748 748 — Total $ 12,203 $ 12,203 $ — $ 2,070 $ 2,070 $ — Total impaired loans: Cash, Securities, and Other $ 4 $ 4 $ — $ 6 $ 6 $ — Consumer and Other — — — 2 2 2 Construction and Development 201 201 — — — — Commercial and Industrial 10,833 10,833 — 2,938 2,938 1,751 1-4 Family Residential — — — 75 75 — Owner Occupied CRE 1,165 1,165 — 1,241 1,241 — Total $ 12,203 $ 12,203 $ — $ 4,262 $ 4,262 $ 1,753 The recorded investment in loans in the previous tables excludes accrued interest, deferred fees, and unamortized premiums/(unaccreted discounts), which are not material. Interest income, if any, was recognized on the cash basis on non-accrual loans. The following presents the average balance of impaired loans and interest income recognized on impaired loans during the periods presented (dollars in thousands): December 31, 2022 2021 Average Interest Average Interest Impaired loans with a valuation allowance: Cash, Securities, and Other $ — $ — $ 2 $ — Consumer and Other 1 — — — Commercial and Industrial — — 2,413 21 Total $ 1 $ — $ 2,415 $ 21 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 4 $ — $ 17 $ — Construction and Development 81 — — — Owner Occupied CRE 1,201 — 248 51 Commercial and Industrial 4,297 * 205 262 1-4 Family Residential 57 — 15 — Total $ 5,640 $ — $ 485 $ 313 Total impaired loans: Cash, Securities, and Other $ 4 $ — $ 19 $ — Consumer and Other 1 — — — Construction and Development 81 — — — Owner Occupied CRE 1,201 — 248 51 Commercial and Industrial 4,297 * 2,618 283 1-4 Family Residential 57 — 15 — Total $ 5,641 $ — $ 2,900 $ 334 _____________________________ (•) The Company recognized an immaterial amount of interest income during the period. Allowance for Loan Losses Allocation of a portion of the allowance for loan losses to one category of loans does not preclude its availability to absorb losses in other categories. The following presents the activity in the Company’s allowance for loan losses by portfolio class for the periods presented (in thousands): Cash, Consumer and Other Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the year ended December 31, 2022 Beginning balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 (Recovery of)/provision for loan losses (399) 84 933 2,756 538 218 (448) 3,682 Charge-offs (1) (262) — — — — (71) (334) Recoveries — 103 — — — — — 103 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Allowance for loan losses as of December 31, 2022 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,198 191 2,025 6,309 3,490 1,510 2,460 17,183 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Loans as of December 31, 2022, evaluated for impairment: Individually $ 4 $ — $ 201 $ — $ — $ 1,165 $ 10,833 $ 12,203 Collectively 165,666 26,539 288,296 898,154 496,776 214,891 350,195 2,440,517 Measured at fair value — 23,415 — — — — — 23,415 Ending balance $ 165,670 $ 49,954 $ 288,497 $ 898,154 $ 496,776 $ 216,056 $ 361,028 $ 2,476,135 Cash, Consumer and Other Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the year ended December 31, 2021 Beginning balance $ 2,439 $ 140 $ 932 $ 3,233 $ 2,004 $ 1,159 $ 2,632 $ 12,539 Provision for/(recovery of) loan losses (841) 163 160 320 948 133 347 1,230 Charge-offs — (44) — — — — — (44) Recoveries — 7 — — — — — 7 Ending balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Allowance for loan losses as of December 31, 2021 allocated to loans evaluated for impairment: Individually $ — $ 2 $ — $ — $ — $ — $ 1,751 $ 1,753 Collectively 1,598 264 1,092 3,553 2,952 1,292 1,228 11,979 Ending balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Loans as of December 31, 2021, evaluated for impairment: Individually $ 6 $ 2 $ — $ 75 $ — $ 1,241 $ 2,938 $ 4,262 Collectively 261,184 34,756 178,716 580,797 482,622 211,185 200,646 1,949,906 Ending balance $ 261,190 $ 34,758 $ 178,716 $ 580,872 $ 482,622 $ 212,426 $ 203,584 $ 1,954,168 The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness or borrowing relationships that require more than the usual amount of management attention. Adverse industry conditions, deteriorating financial conditions, declining trends, management problems, documentation deficiencies or other similar weaknesses may be evident. Ability to meet current payment schedules may be questionable, even though interest and principal are still being paid as agreed. The asset has potential weaknesses that may result in deteriorating repayment prospects if left uncorrected. Loans in this risk grade are not considered adversely classified. Substandard—Substandard loans are considered "classified" and are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Loans in this category may be placed on non-accrual status and may individually be evaluated for impairment if indicators of impairment exist. Doubtful—Loans graded Doubtful are considered "classified" and have all the weaknesses inherent in those classified as 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. However, the amount of certainty of eventual loss is not known because of specific pending factors. Loans accounted for under the fair value option are not rated. Loans not meeting any of the three criteria above are considered to be pass-rated loans. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of the dates noted (dollars in thousands): December 31, 2022 Pass Special Substandard Not Rated Total Cash, Securities and Other $ 165,666 $ — $ 4 $ — $ 165,670 Consumer and Other 26,539 — — 23,415 49,954 Construction and Development 288,296 — 201 — 288,497 1-4 Family Residential 898,154 — — — 898,154 Non-Owner Occupied CRE 496,776 — — — 496,776 Owner Occupied CRE 214,891 — 1,165 — 216,056 Commercial and Industrial 347,803 2,392 10,833 — 361,028 Total $ 2,438,125 $ 2,392 $ 12,203 $ 23,415 $ 2,476,135 December 31, 2021 Pass Special Substandard Not Rated Total Cash, Securities and Other $ 261,184 $ — $ 6 $ — $ 261,190 Consumer and Other 34,756 — 2 — 34,758 Construction and Development 176,194 2,522 — — 178,716 1-4 Family Residential 580,797 — 75 — 580,872 Non-Owner Occupied CRE 476,670 5,952 — — 482,622 Owner Occupied CRE 210,493 — 1,933 — 212,426 Commercial and Industrial 198,368 401 4,815 — 203,584 Total $ 1,938,462 $ 8,875 $ 6,831 $ — $ 1,954,168 The Company had no loans graded doubtful as of the years ended December 31, 2022 and 2021.

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT, NET	PREMISES AND EQUIPMENT, NET The following presents a summary of the cost and accumulated depreciation of premises and equipment as December 31 (dollars in thousands): 2022 2021 Building and building improvements $ 12,190 $ 12,190 Leasehold improvements, including artwork 12,879 11,464 Land 4,980 4,980 Equipment and software 5,815 6,144 Gross premise and equipment 35,864 34,778 Less: accumulated depreciation (10,746) (10,802) Premises and equipment, net $ 25,118 $ 23,976 During the year ended December 31, 2022, the Company retired an immaterial amount of equipment and software for an immaterial loss. During the year ended December 31, 2021, the Company acquired buildings and land associated with the Teton Acquisition. These assets were recorded at their fair value on December 31, 2021 and the buildings will be depreciated over their remaining useful lives.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS The following presents changes in the carrying amount of goodwill as of the dates noted (dollars in thousands): December 31, December 31, Beginning balance $ 30,588 $ 24,191 Acquisition activity (188) 6,397 Ending balance $ 30,400 $ 30,588 During the year ended December 31, 2021, the Company recorded $6.4 million of goodwill as a result of the Teton Acquisition on December 31, 2021. In the first quarter of 2022, goodwill was adjusted by ($0.2) million as a result of the measurement period adjustments. See Note 2 – Acquisitions for more information. Goodwill is tested annually for impairment on October 31 or earlier upon the occurrence of certain events. The goodwill impairment analysis includes the determination of the carrying value of the reporting unit, including the existing goodwill, and estimating the fair value of the reporting unit. If the fair value is less than its carrying amount, goodwill impairment is recognized equal to the difference between the fair value and its carrying amount, not to exceed its carrying amount. As of December 31, 2022, there has not been any impairment of goodwill identified or recorded. Goodwill totaled $30.4 million and $30.6 million as of December 31, 2022 and 2021, respectively. The following presents the Company’s intangible assets and related accumulated amortization as of the dates noted (dollars in thousands): 2022 2021 Other intangibles $ 5,926 $ 5,857 Less: accumulated amortization on other intangibles (4,222) (4,543) Other intangible assets, net $ 1,704 $ 1,314 Amortization expense on definite-lived customer relationship and non-compete intangible assets was $0.3 million and an immaterial amount for the years ended December 31, 2022 and 2021, respectively. The following presents the expected amortization expense on definite-lived intangible assets existing as of December 31, 2022 (dollars in thousands): Year Expense 2023 $ 250 2024 226 2025 206 2026 193 2027 183 Thereafter 646 Total $ 1,704

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
LEASES	LEASESLeases in which the Company is determined to be the lessee are primarily operating leases comprised of real estate property and office space for our corporate headquarters and profit centers with terms that extend to 2032. In accordance with ASC 842, operating leases are required to be recognized as a right-of-use asset with a corresponding lease liability. The Company elected to not include short-term leases with initial terms of twelve months or less, on the Consolidated Balance Sheets. The following table presents the classification of the right-of-use assets and corresponding liabilities within the Consolidated Balance Sheets, as of the dates noted (dollars in thousands): December 31, December 31, Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 8,602 $ 10,720 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 11,163 $ 13,863 The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. December 31, December 31, Weighted-Average Remaining Lease Term Operating leases 4.85 years 5.26 years Weighted-Average Discount Rate Operating leases 2.63% 2.67% The Company’s operating leases contain fixed and variable lease components and it has elected to account for all classes of underlying assets as a single lease component. Variable lease costs primarily represent common area maintenance and parking. The Company recognized lease costs in Occupancy and equipment expense in the accompanying Consolidated Statements of Income. The following represents the Company’s net lease costs during the periods presented (dollars in thousands): Year Ended December 31, 2022 2021 Lease Costs Operating lease cost $ 3,151 $ 3,040 Variable lease cost 2,104 1,756 Lease costs, net $ 5,255 $ 4,796 The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Operating Leases 2023 $ 3,228 2024 3,083 2025 2,141 2026 810 2027 734 Thereafter 1,752 Total future minimum lease payments 11,748 Less: imputed interest (585) Present value of net future minimum lease payments $ 11,163 Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. In accordance with ASC 842, these leases have been accounted for as operating leases. During the year ended December 31, 2022, the Company recognized $0.3 million of lease income The following presents a maturity analysis of the Company’s lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Undiscounted Operating Lease Income 2023 $ 242 2024 199 2025 — 2026 — 2027 — Thereafter — Total undiscounted operating lease income $ 441

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2022
Deposits [Abstract]
DEPOSITS	DEPOSITS The following presents the Company’s interest-bearing deposits as of the dates noted (dollars in thousands): December 31, December 31, Money market deposit accounts $ 1,336,092 $ 1,056,669 Time deposits 224,090 170,491 Negotiable order of withdrawal accounts 234,778 309,940 Savings accounts 27,177 32,299 Total interest-bearing deposits $ 1,822,137 $ 1,569,399 Estimated aggregate time deposits of $250 or greater $ 77,972 $ 75,747 Deposits acquired through the Teton acquisition closed on December 31, 2021 totaled $379.2 million. See Note 2 – Acquisitions for additional information. Overdraft balances classified as loans totaled $0.2 million and an immaterial amount as of December 31, 2022 and 2021, respectively. The following presents the scheduled maturities of all time deposits for the next five years ending December 31 (dollars in thousands): Year Ending December 31, Time Deposits 2023 $ 181,036 2024 32,892 2025 2,998 2026 2,121 2027 5,043 Thereafter — Total $ 224,090

BORROWINGS

BORROWINGS	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS The Bank has executed a blanket pledge and security agreement with the FHLB that requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of December 31, 2022 and December 31, 2021 amounted to $1.26 billion and $771.4 million, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow an additional $751.2 million as of December 31, 2022. Each advance is payable at its maturity date. The Company had the following required maturities on FHLB borrowings as of the dates noted (dollars in thousands): Maturity Date Rate % December 31, December 31, April 22, 2022 0.37 $ — $ 5,000 January 1, 2023 (1) 4.48 131,498 — May 5, 2023 0.76 10,000 10,000 Total $ 141,498 $ 15,000 (1) The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew. To bolster the effectiveness of the SBA’s PPP, the Federal Reserve is supplying liquidity to participating financial institutions through term financing collateralized by PPP loans to small businesses. The Paycheck Protection Program Liquidity Facility ("PPPLF") extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value and bearing interest at 35 bps. The terms of the loans are directly tied to the underlying PPP loans, which were originated at 2 or 5 years. For the years ended December 31, 2022 and 2021, the Company had outstanding $5.4 million and $23.6 million, respectively, under the PPPLF program which is included in the FHLB and Federal Reserve borrowings line of the Consolidated Balance Sheets. The Bank has borrowing capacity associated with two unsecured federal funds lines of credit up to $10.0 million and $19.0 million. As of December 31, 2022 and 2021, there were no amounts outstanding on any of the federal funds lines. On December 5, 2022, the Company completed the issuance and sale of subordinated notes (the "December 2022 Sub Notes") totaling $20.0 million in aggregate principal amount. The issuance included $0.5 million of issuance costs resulting in a net balance of $19.5 million as of December 31, 2022 included in the Subordinated notes line of the Consolidated Balance Sheets. The December 2022 Sub Notes accrue interest at a rate of 7.00% per annum until December 15, 2027, at which time the rate will reset quarterly to an interest rate per annum equal to three-month term SOFR, or an alternative rate determined in accordance with the terms of the December 2022 Sub Notes, plus 328 basis points, payable quarterly in arrears; mature on December 15, 2032; are redeemable at the option of the Company on or after December 15, 2027. On January 1, 2022, the Company redeemed the subordinated notes due December 31, 2026 in the amount of $6.6 million, which were redeemable on or after January 1, 2022. The redemption price was equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest up to, but excluding the date of redemption. On August 31, 2021, the Company completed the issuance and sale of subordinated notes (the Notes”) totaling $15.0 million in aggregate principal amount and including $0.3 million of issuance costs. As of December 31, 2022, $14.8 million was included in the Subordinated notes line of the Consolidated Balance Sheets. The Notes accrue interest at a rate of 3.25% per annum until September 1, 2026, at which time the rate will adjust each quarter to the then current three-month SOFR, or an alternative rate determined in accordance with the terms of the Notes, plus 258 basis points; mature on September 1, 2031; are redeemable at the option of the Company on or after September 1, 2026; and pay interest quarterly. On November 25, 2020, the Company completed the issuance and sale of subordinated notes (the "November 2020 Sub Notes") totaling $10.0 million in aggregate principal amount and including $0.2 million of issuance costs. As of December 31, 2022, $9.9 million was included in the Subordinated notes line of the Consolidated Balance Sheets. The November 2020 Sub Notes accrue interest at a rate of 4.25% per annum until December 1, 2025, at which time the rate will adjust each quarter to the then current three-month term SOFR, or an alternative rate determined in accordance with the terms of the November 2020 Sub Notes, plus 402 basis points; mature on December 1, 2030; are redeemable at the option of the Company on or after December 1, 2025; and pay interest semi-annually prior to December 1, 2025 and quarterly after December 1, 2025. On March 17, 2020, the Company completed the issuance and sale of subordinated notes (the "March 2020 Sub Notes") totaling $8.0 million in aggregate principal amount and including $0.1 million of issuance costs. As of December 31, 2022, $7.9 million was included in the Subordinated notes line of the Consolidated Balance Sheets. The March 2020 Sub Notes accrue interest at a rate of 5.125% per annum until March 31, 2025, at which time the rate will adjust each quarter to the then current three-month LIBOR, or an alternative rate determined in accordance with the terms of the March 2020 Sub Notes, plus 450 basis points; mature on March 31, 2030; are redeemable at the option of the Company on or after March 31, 2025; and pay interest quarterly. For the years ended December 31, 2022 and 2021, the Company recorded $1.4 million and $1.5 million, respectively, of interest expense related to the collective subordinated notes. The subordinated notes are included in Tier 2 capital under current regulatory guidelines and interpretations, subject to limitations. The Company’s borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed "well capitalized" by federal banking agencies. See Note 22 – Regulatory Capital Matters for additional information. As of December 31, 2022 and 2021, the Company was in compliance with the covenant requirements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. Commitments may expire without being utilized. The Company’s exposure to loan loss is represented by the contractual amount of these commitments, although material losses are not anticipated. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The following presents the Company’s financial instruments whose contract amounts represent credit risk, as of the dates noted (dollars in thousands): December 31, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 211,285 $ 601,202 $ 136,289 $ 442,035 Standby letters of credit 8,571 16,737 2,420 20,940 Commitments to make loans to sell 13,553 — 60,529 — Commitments to make loans 20,895 81,663 16,256 14,920 Unused lines of credit are agreements to lend to a client 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. Several of the commitments may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the client. Unused lines of credit under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing clients. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client’s obligation to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Substantially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The Company holds collateral supporting those commitments if deemed necessary. Commitments to make loans to sell are agreements to lend to a client which would then be sold to an investor in the secondary market for which the interest rate has been locked with the client, provided there is no violation of any condition within the contract with either party. Commitments to make loans to sell have fixed interest rates. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. Commitments to make loans are agreements to lend to a client, provided there is no violation of any condition within the contract. Commitments to make loans generally have fixed expiration dates or other termination clauses. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. Litigation, Claims and Settlements

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
SHAREHOLDERS EQUITY	SHAREHOLDERS’ EQUITY Common Stock The Company’s common stock has no par value and each holder of common stock is entitled to one vote for each share (though certain voting restrictions may exist on non-vested restricted stock) held. On January 6, 2022, the Company filed a Form S-3 Registration Statement with the SEC providing that the Company may offer and sell from time to time, separately or together, in multiple series or in one or more offering, any combination of common stock, preferred stock, debt securities, warrants, depository shares and units, up to a maximum aggregate offer price of $100 million. During the year ended December 31, 2022, the Company sold no shares of common stock. On November 3, 2020, the Company announced that its board of directors authorized the repurchase of up to 400,000 shares of the Company’s common stock, no par value, from time to time, within one year (the "2020 Repurchase Plan") and that the Board of Governors of the Federal Reserve System advised the Company that it has no objection to the Company’s 2020 Repurchase Plan. The Company may have repurchased shares in privately negotiated transactions, in the open market, including pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 promulgated by the SEC, or otherwise in a manner that complies with applicable federal securities laws. The 2020 Repurchase Plan did not obligate the Company to acquire a specific dollar amount or number of shares and it may have extended, modified or discontinued at any time without notice. The 2020 Repurchase Plan expired in November 2021. During the year ended December 31, 2021, the Company did not repurchase any shares under the 2020 Repurchase plan. On December 31, 2021, the Company closed on the Merger Agreement with Teton. As part of the Merger Agreement, the Company issued 1,337,791 shares of common stock to Teton shareholders. For additional information, see Note 2 – Acquisitions for additional information. Restricted Stock Awards In 2017, the Company issued 105,264 shares of common stock ("Restricted Stock Awards") with a value of $3.0 million to the sole member of EMC Holdings, LLC ("EMC"), subject to forfeiture based on his continued employment with the Company. Half of the Restricted Stock Awards ($1.5 million or 52,632 shares) vested ratably over five years. These awards fully vested during the year ended Decembere 31, 2022. The remaining $1.5 million, or 52,632 shares, were able to be earned based on performance of the mortgage division of the Company. The performance based awards fully vested during the year ended December 31, 2020. As of December 31, 2022 and 2021, the Restricted Stock Awards have a weighted-average grant date fair value of $28.50 per share. During the years ended December 31, 2022 and 2021, the Company recognized compensation expense of $0.2 million and $0.3 million, respectively, for the Restricted Stock Awards. During the years ended December 31, 2022 and 2021, 10,527 and 10,526 shares, respectively, of the restricted stock awards vested. As of December 31, 2022, all restricted stock awards were fully vested and no unrecognized compensation expense remains. Stock-Based Compensation Plans The 2008 Stock Incentive Plan (“the 2008 Plan”) was frozen in connection with the adoption of the 2016 Plan and no new awards may be granted under the 2008 Plan. As of December 31, 2022, there were a total of 329,035 shares available for issuance under the First Western Financial, Inc. 2016 Omnibus Incentive Plan ("the 2016 Plan"). If the Awards outstanding under the 2008 Plan or the 2016 Plan are forfeited, cancelled or terminated with no consideration paid to the Company, those amounts will increase the number of shares eligible to be granted under the 2016 Plan. Stock Options The Company did not grant any stock options during the years ended December 31, 2022 and 2021. During the year ended December 31, 2022, the Company recognized no stock based compensation expense associated with stock options. During the year ended December 31, 2021, the Company recognized an immaterial amount of stock based compensation expense associated with stock options. As of December 31, 2022, the Company has no unrecognized stock-based compensation expense related to stock options. The following presents activity for nonqualified stock options for the year ended December 31, 2022: Number Weighted Weighted Aggregate Outstanding as of December 31, 2021 308,574 $ 29.21 Exercised (8,309) 21.50 Forfeited or expired (116,100) 40.00 Outstanding as of December 31, 2022 184,165 22.76 2.1 (1) Options fully vested/exercisable as of December 31, 2022 184,165 22.76 2.1 (1) _____________________________ (1) Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values. As of December 31, 2022 and December 31, 2021, there were 184,165 and 308,574 options, respectively, that were exercisable. Exercise prices are between $20.00 and $27.00 per share, and the options are exercisable for a period of ten years from the original grant date and expire on various dates between 2023 and 2026. Restricted Stock Units Pursuant to the 2016 Plan, the Company can grant associates and non-associate directors long-term cash and stock-based compensation. Historically, the Company has granted certain associates restricted stock units which are earned over time or based on various performance measures and convert to common stock upon vesting, which are summarized here and expanded further below: The following presents the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units during the year ended December 31, 2022: Time Financial Market Outstanding as of December 31, 2021 249,821 183,483 13,746 Granted 157,682 92,697 — Vested (83,918) (12,100) — Forfeited (37,590) (28,568) (13,746) Outstanding as of December 31, 2022 285,995 235,512 — During the year ended December 31, 2022, the Company issued 67,860 shares of common stock upon the settlement of Restricted Stock Units. The remaining 28,158 shares were surrendered with a combined market value at the dates of settlement of $0.9 million to cover employee withholding taxes. During the year ended December 31, 2021, the Company issued 58,884 shares of common stock upon the settlement of Restricted Stock Units. The remaining 20,693 shares were surrendered with a combined market value at the dates of settlement of $0.5 million to cover employee withholding taxes. Time Vesting Units Time Vesting Units are granted to full-time associates and board members at the date approved by the Company’s board of directors. The Company granted 157,682 Time Vesting Units with a five-year service period during the year ended December 31, 2022, that vest in equal installments of 20% on the anniversary of the grant date, assuming continuous employment through the scheduled vesting dates. During both the years ended December 31, 2022 and 2021, the Company recognized compensation expense of $1.7 million for the Time Vesting Units. As of December 31, 2022, there was $5.8 million of unrecognized compensation expense related to the Time Vesting Units, which is expected to be recognized over a weighted-average period of 1.9 years. Financial Performance Units Financial Performance Units are granted to certain key associates and are earned based on the Company achieving various financial performance metrics. If the Company achieves the financial metrics, which include various thresholds from 0% up to 150%, then the Financial Performance Units will have a subsequent vesting period. The following presents the Company’s existing Financial Performance Units as of December 31, 2022 (dollars in thousands, except share amounts): Grant Period Threshold Accrual Maximum Unrecognized Compensation Expense Weighted-Average Life (1) Financial Metric End Date Vesting Requirement End Date May 1, 2019 through April 30, 2020 150 % 69,306 $ 145 1.0 years December 31, 2021 December 31, 2023 May 1, 2020 through December 31, 2020, excluding November 18, 2020 150 % 74,364 267 2.0 years December 31, 2022 December 31, 2023 On November 18, 2020 115 % 24,161 238 1.9 years December 31, 2022 50% November 18, 2023 and 2025 May 3, 2021 through August 11, 2021 150 % 53,882 604 3.0 years December 31, 2023 December 31, 2025 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2) — % — — 4.0 years December 31, 2024 December 31, 2026 On August 4, 2022 (3) 100 % 18,181 680 4.0 years December 31, 2024 December 31, 2026 _____________________________ (1) Represents the expected unrecognized stock-based compensation expense recognition period. (2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of December 31, 2022. (3) Performance threshold was not met for the year ended December 31, 2022. The 100% threshold is expected to be met for the years ended December 31, 2023 and 2024. The following presents the Company’s Financial Performance Units activity for the years noted December 31 (dollars in thousands): Units Granted Compensation Expense Recognized Grant Period 2022 2021 2022 2021 Prior to May 1, 2019 — — $ — $ 110 May 1, 2019 through April 30, 2020 — — 122 216 May 1, 2020 through December 31, 2020, excluding November 18, 2020 — — 168 208 On November 18, 2020 — 41 125 May 3, 2021 through August 11, 2021 — 41,743 273 221 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (1) 65,425 — — — On August 4, 2022 (2) 27,272 — 47 — _____________________________ (1) Performance threshold was not met for the year ended December 31, 2022; therefore, no compensation expense was recognized as of the year ended December 31, 2022. (2) Performance threshold was not met for the year ended December 31, 2022. The 100% threshold is expected to be met for the years ended December 31, 2023 & 2024. Market Performance Units Market Performance Units were granted to certain key associates and are earned based on growth in the value of the Company’s common stock, and were dependent on the Company completing an initial public offering of stock during a defined period of time. On July 23, 2018, the Company completed its initial public offering and the Market Performance Units performance condition was met. Subsequent to the performance condition there was also a market condition as a vesting requirement for the Market Performance Units. If the Company's common stock was trading at or above certain prices, over a performance period which ended on June 30, 2020, the Market Performance Units would have been determined to be earned and vest following the completion of a subsequent service period, which ended on June 30, 2022. The Company's common stock did not trade at or above the required prices over the performance period and as a result, no Market Performance Units were eligible to be earned. During the year ended December 31, 2022, the Company recognized an immaterial amount of compensation expense for the Market Performance Units. During the year ended December 31, 2021, the Company recognized an immaterial amount of compensation expense for the Market Performance Units. As of the end of the subsequent service period, or June 30, 2022, the Company had no remaining unrecognized compensation expense related to the Market Performance Units.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	EARNINGS PER COMMON SHARE The following presents the calculation of basic and diluted earnings per common share for the periods indicated (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 Earnings per common share - Basic Numerator: Net income available for common shareholders $ 21,698 $ 20,610 Denominator: Basic weighted average shares 9,461,349 7,980,491 Earnings per common share - basic $ 2.29 $ 2.58 Earnings per common share - Diluted Numerator: Net income available for common shareholders $ 21,698 $ 20,610 Denominator: Basic weighted average shares 9,461,349 7,980,491 Diluted effect of common stock equivalents: Stock options 42,944 30,661 Time Vesting Units 117,774 139,829 Financial Performance Units 88,143 70,437 Market Performance Units 3,413 13,760 Total diluted effect of common stock equivalents 252,274 254,687 Diluted weighted average shares 9,713,623 8,235,178 Earnings per common share - diluted $ 2.23 $ 2.50 Diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been anti-dilutive. The following presents potentially dilutive securities excluded from the diluted earnings per share calculation during the periods presented: Year Ended December 31, 2022 2021 Stock options — 168,872 Time Vesting Units 86,145 996 Financial Performance Units 23,553 32,713 Restricted Stock Awards — 7,895 Total potentially dilutive securities 109,698 210,476

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The following presents the components of the Company’s income tax expense as of December 31 (dollars in thousands): 2022 2021 Current: Federal $ 5,637 $ 6,228 State and local 936 1,110 Total current tax expense 6,573 7,338 Deferred: Federal 536 (734) State and local (55) 66 Valuation allowance 76 — Total deferred tax expense (benefit) 557 (668) Income tax expense $ 7,130 $ 6,670 The following is a reconciliation of income taxes reflected on the Consolidated Statements of Income for the years ended December 31, 2022 and 2021, with income tax expense computed by applying the United States federal income tax rate of 21% to income before income taxes (dollars in thousands): 2022 2021 Income tax expense computed at 21% statutory rate $ 6,054 $ 5,729 Differences: Permanent differences 101 169 State taxes, net of federal expense 1,005 1,018 LIHTC investment tax credit (404) (386) LIHTC investment proportional amortization 378 539 Valuation allowance 76 — Other, net (80) (399) Income tax expense $ 7,130 $ 6,670 The following presents the principal components of the Company’s deferred tax items as of December 31 (dollars in thousands): 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 472 $ 395 Allowance for loan losses 4,165 3,385 Acquired loans fair market value adjustments 826 976 Assets acquired at fair value — 226 Loans accounted for under the fair value option 146 — Deferred rent 621 753 Stock-based compensation 1,705 1,800 Provision on other real estate owned — 463 Other intangible assets 254 279 Unrealized losses on securities 495 — Accrued bonuses — 868 Loan fees 459 — Accrued expenses — 821 Other 1,574 382 Total deferred tax assets 10,717 10,348 Deferred tax liabilities: Goodwill (1,087) (1,137) Depreciation (1,864) (1,636) Unrealized gain on securities — (73) Loan fees — (155) Acquired loans fair market value adjustments (215) — Other (189) (130) Total deferred tax liabilities (3,355) (3,131) Net operating loss valuation allowance (448) (372) Net deferred tax asset $ 6,914 $ 6,845 Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the total deferred tax assets. The net operating loss ("NOL") carryforwards expire in tax years 2028 through 2032. As of December 31, 2022 and December 31, 2021, the Company had $5.5 million of California NOLs available for utilization. For taxable years 2020, 2021, and 2022, California has suspended the NOL carryover deduction. On February 9, 2022, Senate Bill 113 was signed to reinstate the NOL deduction for businesses and individuals that have $1 million or more of net income subject to tax in California for tax years beginning January 1, 2022. Both corporations and individual tax payers may continue to compute and carryover an NOL during the suspension period. Different rules apply depending on the amount of income per year. The suspension does not apply to corporate tax payers if their income subject to California taxation is less than $1 million. During 2020, as a result of this tax legislation and certain divestitures in California, the Company was uncertain as to the probability of realizing the full NOL. As such, the Company recorded a valuation allowance related to the California NOLs. As of December 31, 2022, $5.2 million is recorded as a valuation allowance, resulting in a tax effected valuation allowance of $0.4 million. The Company identified no other material uncertain tax positions for which it is reasonably possible the total amount of unrecognized tax benefits will significantly increase or decrease within 12 months. The Company and its subsidiaries file tax returns for the United States and for multiple states and localities. The United States federal income tax returns of the Company are eligible to be examined for the years 2019 and forward. There are no federal or state tax examinations currently in progress.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANSThe Company sponsors a 401(k) Plan, which is a defined contribution plan, in which substantially all associates are eligible to participate in and associates may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Company may elect to make matching contributions as defined by the plan. For the years ended December 31, 2022 and 2021, the Company expensed matching contributions to the plan totaling $1.0 million. For the years ended December 31, 2022 and 2021, the Company incurred $0.1 million of administrative fees attributable to the plan.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS The Bank extends credit to certain covered parties including Company directors, executive officers, and their affiliates. As of December 31, 2022 and December 31, 2021, there were no delinquent or non-performing loans to any executive officer or director of the Company. These covered parties, along with principal owners, management, immediate family of management or principal owners, a parent company and its subsidiaries, trusts for the benefit of employees, and other parties, may be considered related parties. The following presents a summary of related-party loan activity as of the dates noted (dollars in thousands): December 31, 2022 December 31, 2021 Balance, beginning of year $ 12,833 $ 14,321 Funded loans 15,079 11,294 Payments collected (11,053) (12,782) Balance, end of period $ 16,859 $ 12,833 Deposits from related parties held by the Bank as of December 31, 2022 and December 31, 2021 totaled $36.9 million and $51.0 million, respectively. The Company leases office spaces from entities controlled by one of the Company’s board members. During each of the years ended December 31, 2022 and 2021, the Company incurred $0.2 million of expense related to these leases.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Recurring Fair Value Available-for-sale securities : The fair values for available-for-sale investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Equity Securities : Fair value of equity securities represents the market value of mutual funds based on quoted market prices (Level 1) and the value of stock held in other companies, which is based on recent market transactions or quoted rates that are not actively traded (Level 2). Equity Warrants : Fair value of equity warrants of private companies are priced using a Black-Scholes option pricing model to estimate the fair value by using strike prices, option expiration dates, risk-free interest rates, and option volatility assumptions (Level 3). Guarantee Asset and Liability : The guarantee asset represents the fair value of the consideration received in exchange for the credit enhancement fee. The guarantee liability represents a financial guarantee to cover the second layer of any losses on loans sold to FHLB under the MPF 125 loan sales agreement. The guarantee liability value on day one is equivalent to the guarantee asset fair value, which is the consideration for the credit enhancement fee paid over the life of the loans. The liability is then carried at amortized cost. Significant inputs in the valuation analysis for the asset are Level 3, due to the nature of this asset and the lack of market quotes. The fair value of the guarantee asset is determined using a discounted cash flow model, for which significant unobservable inputs include assumed future prepayment rates (“CPR”) and market discount rate (Level 3). An increase in prepayment rates or discount rate would generally reduce the estimated fair value of the guarantee asset. Mortgage Related Derivatives : Mortgage related derivatives include our IRLC, FSC, and the forward commitments on our loans held for sale pipeline. The fair value estimate of our IRLC is based on valuation models using market data from secondary market loan sales and direct contacts with third party investors as of the measurement date and pull through assumptions (Level 3). The FSC fair value estimate reflects the potential pair off fee associated with mandatory trades and is estimated by using a market differential and pair off penalty assessed by the investor (Level 3). The fair value estimate of the forward commitments is based on market prices of similar securities to the underlying MBS (Level 2). Loans Held for Investment : The fair value of loans held for investment are typically determined based on discounted cash flow analysis using market-based interest rate spreads. Discounted cash flow analysis are adjusted, as appropriate, to reflect current market conditions and borrower specific credit risk. Due to the nature of the valuation inputs, loans held for investment are classified within Level 3 of the valuation hierarchy. Mortgage Loans Held for Sale : The fair value of mortgage loans held for sale is estimated based upon quotes from third party investors for similar assets resulting in a Level 2 classification. Loans Held for Sale : The fair value of loans held for sale is determined using actual quoted commitments from third party investors resulting in a Level 1 classification. The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands): December 31, 2022 Quoted Significant Significant Reported Mortgage loans held for sale $ — $ 8,839 $ — $ 8,839 Loans held for sale $ 1,965 $ — $ — $ 1,965 Loans held at fair value $ — $ — $ 23,321 $ 23,321 Forward commitments and FSC $ — $ 46 $ — $ 46 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 143 $ 143 IRLC, net $ — $ — $ 229 $ 229 Equity warrants $ — $ — $ 825 $ 825 December 31, 2021 Quoted Significant Significant Reported Investment securities available-for-sale: U.S. Treasury debt $ 247 $ — $ — $ 247 U.S. Government Agency — 3,522 — 3,522 Corporate bonds — 6,212 2,113 8,325 GNMA mortgage-backed securities - residential — 26,650 — 26,650 FNMA mortgage-backed securities - residential — 14,443 — 14,443 Government CMO and MBS — 878 — 878 Corporate CMO and MBS — 1,497 — 1,497 Total securities available-for-sale $ 247 $ 53,202 $ 2,113 $ 55,562 Mortgage loans held for sale $ — $ 30,620 $ — $ 30,620 Forward commitments and FSC $ — $ (65) $ (9) $ (74) Equity securities $ 709 $ 489 $ — $ 1,198 Guarantee asset $ — $ — $ 237 $ 237 IRLC, net $ — $ — $ 1,473 $ 1,473 Equity warrants $ — $ — $ 160 $ 160 There were no transfers between levels during the year ended December 31, 2022 or 2021. On April 1, 2022, the Company elected to transfer all securities classified as available-for-sale to held-to-maturity and are now carried at amortized cost. See Note 3 - Investment Securities for more information. As of December 31, 2021, U.S. Treasury debt was reported at fair value utilizing Level 1 inputs. Three Corporate bonds were reported at fair value utilizing Level 3 inputs. The remaining portfolio of securities were reported at fair value with Level 2 inputs provided by a pricing service. The majority of the securities had credit support provided by the Federal Home Loan Mortgage Corporation, GNMA, and FNMA. Factors used to value the securities by the pricing service include: benchmark yields, reported trades, interest spreads, prepayments, and other market research. In addition, ratings and collateral quality were considered. As of December 31, 2022, equity securities, equity warrants, IRLC, and guarantee assets have been recorded at fair value within the Other assets line item in the Consolidated Balance Sheets. All changes are recorded in Non-interest income in the Consolidated Statements of Income. Fair Value Option The Company has elected to account for certain purchased whole loans held for investment under the fair value option in order to align the accounting presentation with the Company's viewpoint of the economics of the loans. Interest income on loans held for investment accounted for under the fair value option is recognized within Interest and dividend income in the accompanying Consolidated Statements of Income. Not electing fair value generally results in a larger discount being recorded on the date of the loan purchase. The discount is subsequently accreted into interest income over the underlying loan's remaining term using the effective interest method. Additionally, management has elected the fair value option for mortgage loans originated and held for sale and loans held for sale. As of December 31, 2022, the Company reclassified $2.0 million of loans held for investment to loans held for sale. The transfer occurred at the point in time the Company decided to sell the loan and received a commitment from third party investors to purchase the loan. There were no loans accounted for under the fair value option that were 90 days or more past due and still accruing interest as of December 31, 2022 or December 31, 2021. As of December 31, 2022, there were 145 loans, totaling $0.1 million, accounted for under the fair value option that were on nonaccrual. As of December 31, 2021, there were no loans accounted for under the fair value option that were on nonaccrual. The following provides more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted (dollars in thousands): December 31, 2022 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Mortgage loans held for sale $ 8,839 $ 8,750 $ 89 $ — $ — $ — $ — $ — $ — Loans held for sale 1,965 1,984 (19) — — $ — — — — Loans held for investment 23,321 23,415 (94) 139 140 (1) 139 140 (1) $ 34,125 $ 34,149 $ (24) $ 139 $ 140 $ (1) $ 139 $ 140 $ (1) December 31, 2021 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Mortgage loans held for sale $ 30,620 $ 29,857 $ 763 $ — $ — $ — $ — $ — $ — Loans held for investment — — — — — — — — — $ 30,620 $ 29,857 $ 763 $ — $ — $ — $ — $ — $ — The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted (dollars in thousands): Year Ended December 31, 2022 2021 Mortgage loans held for sale $ (673) $ 4,712 Loans held for sale (20) — Loans held for investment (94) — $ (787) $ 4,712 The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands): Year Ended December 31, Mortgage loans held for sale 2022 2021 Balance at beginning of period $ 30,620 $ 161,843 Loans originated 439,682 1,425,713 Loans acquired — 840 Fair value changes (673) (4,712) Sales (460,514) (1,548,405) Settlements (276) (4,659) Balance at end of period $ 8,839 $ 30,620 Year Ended December 31, Loans held for sale 2022 2021 Balance at beginning of period $ — $ — Loans transferred from held for investment 1,985 — Fair value changes (20) — Balance at end of period $ 1,965 $ — Year Ended December 31, Loans held for investment 2022 2021 Balance at beginning of period — $ — Loans acquired 35,616 — Fair value changes (94) — Settlements (12,201) — Balance at end of period $ 23,321 $ — Nonrecurring Fair Value Other Real Estate Owned ("OREO") : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. They are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than on an annual basis. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. OREO is evaluated annually for additional impairment and adjusted accordingly. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. Impaired loans are evaluated monthly for additional impairment and adjusted accordingly. Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. The following presents assets measured on a nonrecurring basis as of the dates noted (dollars in thousands): December 31, 2021 Quoted Significant Significant Reported Impaired loans (1) : Commercial and Industrial $ — $ — $ 439 $ 439 _____________________________ (1) One immaterial Consumer and Other loan was fully reserved for using a specific allowance as of December 31, 2021. The sales comparison approach was utilized for estimating the fair value of non-recurring assets. There were no assets measured on a nonrecurring basis for the year ended December 31, 2022. During the year ended December 31, 2022, the Company recorded $0.4 million of OREO as a result of obtaining physical possession of foreclosed property as partial consideration for amounts owed on an impaired loan. The Company sold the property during the year ended December 31, 2022, resulting in an immaterial gain. As of December 31, 2022 and December 31, 2021, the Company did not own any OREO properties. As of December 31, 2021, total impaired loans measured for impairment using the fair value of the collateral dependent loans had carrying values of $2.2 million with valuation allowances of $1.8 million and were classified as Level 3. Impaired loans accounted for no specific reserves as of December 31, 2022 and $1.8 million as of December 31, 2021. The Company did not have any charge offs during the year ended December 31, 2022 from the specific reserve. The Company charged off an immaterial amount during the year ended December 31, 2021 from the specific reserve. Level 3 Analysis The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands): Year Ended December 31, 2022 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160 Acquisitions 4,000 35,616 9 — 3,213 344 Originations — — — 1 (5,048) — Gains (losses) in net income, net — (94) — (75) 591 321 Unrealized gains, net 102 — — — — — Transfer to held-to-maturity (6,215) — — — — — Settlements — (12,201) — (20) — — Ending balance $ — $ 23,321 $ — $ 143 $ 229 $ 825 Year Ended December 31, 2021 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ — $ (89) $ 232 $ 9,841 $ — Acquisitions 2,113 — (182) — 19,526 160 Originations — — — 2 (25,804) — Gains (losses) in net income, net — — 262 32 (2,090) — Other settlements — — — (29) — — Ending balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160 The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 23,321 Discounted cash flow Discount rate 4% to 18% (8)% Guarantee asset 143 Discounted cash flow Discount rate 5% (5%) 4% (4)% IRLC, net 229 Best execution model Pull through 73% to 100% (91)% Equity Warrants 825 Black-Scholes option pricing model Volatility 31.2% to 44.7% (34.8)% 4.04% to 4.14% (4.05)% 0 to 4 years Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Value Valuation Significant Range Recurring fair value Corporate Bonds $ 2,113 Discounted cash flow Discount rate 7% (7)% FSC (9) Internal pricing model Market Differential (14) bps to (2) bps ((6) bps) Guarantee asset 237 Discounted cash flow Discount rate 3% (3%) 18% (18%) IRLC, net 1,473 Best execution model Pull through 71% to 100% (88)% Equity warrants 160 Black-Scholes option pricing model Volatility 24% to 37% (32)% 0.30% to 1.10% (0.97)% 0 to 4 years Nonrecurring fair value Impaired loans (1) : Commercial and Industrial 439 Sales comparison, Market approach - guideline transaction method Management discount for asset/property type 17% - 45% (39%) _____________________________ (1) One immaterial Consumer and Other loan was fully reserved for using a specific allowance as of December 31, 2021. Estimated Fair Value of Other Financial Instruments The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands): Carrying Fair Value Measurements Using: December 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 196,512 $ 196,512 $ — $ — Held-to-maturity securities 81,056 234 67,433 7,051 Loans, net 2,452,230 — — 2,379,406 Accrued interest receivable 10,445 5 362 10,078 Liabilities: Deposits 2,405,229 2,181,139 — 228,868 Borrowings: FHLB borrowings – fixed rate 141,498 — 141,867 — Federal Reserve borrowings – fixed rate 5,388 — 5,388 — Subordinated notes – fixed-to-floating rate 52,132 — — 60,384 Accrued interest payable 1,125 — 587 538 Carrying Fair Value Measurements Using: December 31, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 386,983 $ 386,983 $ — $ — Loans, net 1,935,405 — — 1,919,625 Accrued interest receivable 7,151 2 203 6,946 Liabilities: Deposits 2,205,703 2,035,212 — 172,240 Borrowings: FHLB borrowings – fixed rate 15,000 — 14,990 — Federal Reserve borrowings – fixed rate 23,629 — 23,629 — Subordinated notes – fixed-to-floating rate 39,031 — — 40,325 Accrued interest payable 355 9 77 269 The fair value estimates presented and discussed above are based on pertinent information available to management as of the dates specified. The estimated fair value amounts are based on the exit price notion set forth by ASU 2016-01. Although management is not aware of any factors that would significantly affect the estimated fair values, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since the balance sheet dates. Therefore, current estimates of fair value may differ significantly from the amounts presented herein. The methods and assumptions, not previously presented, used to estimate fair values are described as follows. Cash and Cash Equivalents and Restricted Cash : The carrying amounts of cash and cash equivalents and restricted cash approximate fair values as maturities are less than 90 days and balances are generally in accounts bearing current market interest rates. Held-to-maturity securities : The fair values for held-to-maturity investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities is not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans, net : The fair values for all fixed-rate and variable-rate performing loans were estimated using the income approach and by discounting the projected cash flows of such loans. Principal and interest cash flows were projected based on the contractual terms of the loans, including maturity, contractual amortization and adjustments for prepayments and expected losses, where appropriate. A discount rate was developed based on the relative risk of the cash flows, considering the loan type, maturity and a required return on capital. Accrued Interest Receivable and Payable : The carrying amounts of accrued interest approximate fair value due to their short-term nature. Deposits : The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting dates. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Fixed Rate Borrowings : Borrowings with fixed rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments and borrowers with similar credit ratings. Fixed-to-Floating Rate Borrowings : Borrowings with fixed-to-floating rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments and assume the Company will redeem the instrument prior to the first interest rate reset date.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company’s reportable segments consist of Wealth Management and Mortgage. The chief operating decision maker ("CODM") is the Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Wealth Management segment consists of operations relative to the Company’s fully integrated wealth management products and services. Services provided include deposit, loan, insurance, and trust and investment management advisory products and services. The Mortgage segment consists of operations relative to the Company’s residential mortgage service offerings. Mortgage products and services are financial in nature for which premiums are recognized, net of expenses, upon the sale of mortgage loans to third parties. The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the years ended December 31, 2022 and 2021 (dollars in thousands): As of and for the year ended December 31, 2022 Wealth Mortgage Consolidated Income Statement Total interest and dividend income $ 100,474 $ — $ 100,474 Total interest expense 17,270 — 17,270 Provision for loan losses 3,682 — 3,682 Net interest income, after provision for loan losses 79,522 — 79,522 Non-interest income 23,094 5,318 28,412 Total income before non-interest expense 102,616 5,318 107,934 Depreciation and amortization expense 2,111 42 2,153 All other non-interest expense 69,366 7,587 76,953 Income before income taxes $ 31,139 $ (2,311) $ 28,828 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,856,653 10,095 2,866,748 As of and for the year ended December 31, 2021 Wealth Mortgage Consolidated Income Statement Total interest and dividend income $ 62,011 $ — $ 62,011 Total interest expense 5,416 — 5,416 Provision for loan losses 1,230 — 1,230 Net interest income, after provision for loan losses 55,365 — 55,365 Non-interest income 23,924 16,119 40,043 Total income before non-interest expense 79,289 16,119 95,408 Depreciation and amortization expense 1,147 53 1,200 All other non-interest expense 56,764 10,164 66,928 Income before income taxes $ 21,378 $ 5,902 $ 27,280 Goodwill $ 30,588 $ — $ 30,588 Total assets 2,494,207 33,282 2,527,489

LOW-INCOME HOUSING TAX CREDIT I

LOW-INCOME HOUSING TAX CREDIT INVESTMENT	12 Months Ended
	Dec. 31, 2022
Investments in Affordable Housing Projects [Abstract]
LOW-INCOME HOUSING TAX CREDIT INVESTMENTS	LOW-INCOME HOUSING TAX CREDIT INVESTMENTS On December 19, 2019, the Company invested in a low-income housing tax credit ("LIHTC") investment. As of December 31, 2022 and 2021, the balance of the investment for LIHTC was $2.4 million and $2.6 million, respectively. These balances are reflected in the Other assets line item of the Consolidated Balance Sheets. There were no unfunded commitments related to the LIHTC investment as of December 31, 2022. As of December 31, 2021, total unfunded commitments were $0.2 million. The Company uses the proportional amortization method to account for this investment. Amortization expense is included within the Income tax expense line item of the Consolidated Statements of Income. During the year ended December 31, 2022, the Company recognized amortization expense of $0.4 million, which was included within the Income tax expense line item of the Consolidated Statements of Income. The Company recognized amortization expense of $0.5 million in the year ended December 31, 2021. Additionally, during the year ended December 31, 2022, the Company recognized tax credits and other benefits from this investment in the LIHTC of $0.4 million. The Company recognized tax credits and other benefits from this investment in the LIHTC of $0.5 million in the year end December 31, 2021. During the years ending December 31, 2022 and 2021, the Company did not incur any impairment losses.

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY	CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The following presents condensed financial statements pertaining only to FWFI (dollars in thousands). Investments in subsidiaries are stated using the equity method of accounting. December 31, December 31, Condensed Balance Sheets 2022 2021 Assets Cash and cash equivalents $ 26,372 $ 18,124 Investment in subsidiaries 263,362 233,417 Loans, net — 1,978 Other assets 3,723 3,611 Total assets $ 293,457 $ 257,130 Liabilities Subordinated notes $ 52,132 $ 39,031 Other liabilities (1) 461 (942) Total liabilities 52,593 38,089 Shareholders' Equity Total shareholders’ equity 240,864 219,041 Total liabilities and shareholders’ equity $ 293,457 $ 257,130 _____________________________ (1) As of December 31, 2021, taxes payable was in a receivable position as a result of timing of tax payments. Year Ended December 31, Condensed Statements of Income 2022 2021 Income Interest income $ 46 $ 60 Non-interest income 7 — Total income 53 60 Expense Interest expense 1,609 1,549 Non-interest expense 272 285 Total expense 1,881 1,834 Loss before income tax and equity in undistributed income of subsidiaries (1,828) (1,774) Income tax benefit 412 119 Loss before equity in undistributed income of subsidiaries (1,416) (1,655) Equity in undistributed income to subsidiaries 23,114 22,265 Net income $ 21,698 $ 20,610 Year Ended December 31, Condensed Statements of Cash Flows 2022 2021 Cash flows from operating activities Net income $ 21,698 $ 20,610 Adjustments: Depreciation and amortization 167 73 Deferred income tax expense 941 301 Stock-based compensation 2,562 2,903 Undistributed equity in subsidiaries (23,114) (22,265) Change in other assets 235 678 Change in other liabilities 115 53 Net cash provided by/(used in) operating activities 2,604 2,353 Cash flows from investing activities Net cash paid on acquisition — (11,501) Investment in subsidiaries (8,571) (2,913) Loan and note receivable originations and principal collections 1,978 43 Net cash used in investing activities (6,593) (14,371) Cash flows from financing activities Proceeds from subordinated notes, net of issuance costs 19,509 14,667 Payment on subordinated notes (6,575) — Settlement of restricted stock (876) (501) Proceeds from the exercise of stock options 179 1,706 Net cash provided by financing activities 12,237 15,872 Net change in cash and cash equivalents 8,248 3,854 Cash and cash equivalents, beginning of year 18,124 14,270 Cash and cash equivalents, end of year $ 26,372 $ 18,124 Supplemental cash flow information: Interest paid on borrowed funds $ 1,609 $ 1,549 Supplemental noncash disclosures: Common stock issued for Teton acquisition — 39,818

OTHER NON-INTEREST EXPENSE

OTHER NON-INTEREST EXPENSE	12 Months Ended
	Dec. 31, 2022
Other Income and Expenses [Abstract]
OTHER NON-INTEREST EXPENSE	OTHER NON-INTEREST EXPENSE Other non-interest expense as shown in the Consolidated Statements of Income is detailed in the following schedule to the extent the components exceed one percent of total interest income and other income (dollars in thousands): Year Ended December 31, Other non-interest expense 2022 2021 Corporate development and related $ 2,440 $ 1,769 Loan and deposit related 1,420 1,016 Other 687 470 Total other non-interest expense $ 4,547 $ 3,255

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	12 Months Ended
	Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
REGULATORY CAPITAL MATTERS	REGULATORY CAPITAL MATTERS First Western and the Bank are subject to various regulatory capital adequacy requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and, additionally for banks, the regulatory framework for prompt corrective action, First Western and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. First Western and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other factors. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks ("Basel III rules") has been fully phased in. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. During the years ended December 31, 2022 and 2021, First Western made capital injections of $6.0 million and $2.9 million, respectively, into the Bank. Management believes as of December 31, 2022, First Western and the Bank meet all capital adequacy requirements to which they are subject to. Prompt corrective action regulations for First Western and the Bank provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The standard ratios established by First Western and the Bank’s primary regulators to measure capital require First Western and the Bank to maintain minimum amounts and ratios, set forth in the following table. These ratios are common equity Tier 1 capital ("CET1"), Tier 1 capital and total capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The actual capital ratios of First Western and the Bank, along with the applicable regulatory capital requirements as of December 31, 2022, were calculated in accordance with the requirements of Basel III. The final rules of Basel III also established a "capital conservation buffer" of 2.5% above new regulatory minimum capital ratios, which are fully effective following minimum ratios: (i) a CET1 ratio of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. Banks are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if their capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such activities. As of December 31, 2022, the most recent filings with the FDIC categorized First Western and the Bank as well capitalized under the regulatory guidelines. To be categorized as well capitalized, an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the following table. Management believes there are no conditions or events since December 31, 2022 that have changed the categorization of First Western and the Bank as well capitalized. Management believes First Western and the Bank met all capital adequacy requirements to which they are subject to as of December 31, 2022 and December 31, 2021. The following presents the actual and required capital amounts and ratios as of the dates noted (dollars in thousands): Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 234,738 10.29 % $ 136,928 6.0 % $ 182,571 8.0 % Consolidated 212,229 9.28 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 234,738 10.29 102,696 4.5 148,339 6.5 Consolidated 212,229 9.28 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 252,398 11.06 182,571 8.0 228,213 10.0 Consolidated 282,889 12.37 N/A N/A N/A N/A Tier 1 capital to average assets Bank 234,738 8.65 108,506 4.0 135,633 5.0 Consolidated 212,229 7.81 N/A N/A N/A N/A Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 203,164 11.40 % $ 106,945 6.0 % $ 142,594 8.0 % Consolidated 188,777 10.54 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 203,164 11.40 80,209 4.5 115,858 6.5 Consolidated 188,777 10.54 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 217,215 12.19 142,594 8.0 178,242 10.0 Consolidated 242,388 13.54 N/A N/A N/A N/A Tier 1 capital to average assets Bank 203,164 10.05 80,887 4.0 101,108 5.0 Consolidated 188,777 9.31 N/A N/A N/A N/A _____________________________ (1) Does not include capital conservation buffer .

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation : The consolidated financial statements include the accounts of First Western Financial, Inc. ("FWFI"), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly-owned subsidiaries listed below (collectively referred to as the "Company," "we," "us," or "our"). FWFI is a bank holding company with financial holding company status registered with the Board of Governors of the Federal Reserve System. FWFI wholly owns the following subsidiaries: First Western Trust Bank (the "Bank") and Ryder, Stilwell Inc. ("RSI"). The Bank wholly owns the following subsidiaries, which are therefore indirectly wholly-owned by FWFI: First Western Merger Corporation ("Merger Corp.") and RRI, LLC ("RRI"). RSI and RRI are not active operating entities. The Company provides a fully-integrated suite of wealth management services including private banking, personal trust, investment management, mortgage loans, and institutional asset management services to individual and corporate clients principally in Colorado (metro Denver, Aspen, Boulder, Fort Collins and Vail Valley), Arizona (Phoenix and Scottsdale), California (Century City), Montana (Bozeman), and Wyoming (Jackson Hole, Laramie, Pinedale and Rock Springs). The Company’s revenues are generated from its full range of product offerings as noted above, but principally from net interest income (the interest income earned on the Bank’s assets net of funding costs), fee-based wealth advisory, investment management, asset management and personal trust services, and net gains earned on mortgage loans.
Consolidation	Consolidation : The Company’s policy is to consolidate all majority-owned subsidiaries in which it has a controlling financial interest and variable-interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation.
Business Combinations and Divestitures	Business Combinations and Divestitures : On December 31, 2021, the Company completed its merger pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with Teton Financial Services, Inc. (“Teton”), parent company of Rocky Mountain Bank, a Wyoming-chartered bank headquartered in Jackson, Wyoming. Management concluded that the merger represented a business combination, which is accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date.
Use of Estimates	Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including the impact of the COVID-19 pandemic, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change include: the determination of the allowance for loan losses, the evaluation of goodwill impairment, and the fair value of financial instruments.
Concentration of Credit Risk	Concentration of Credit Risk : Most of the Company’s lending activity is to clients located in and around metro Denver, Aspen, Fort Collins, and Vail, Colorado; Phoenix and Scottsdale, Arizona; Bozeman, Montana; and Jackson Hole, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. As of December 31, 2022 and December 31, 2021, 77.9% and 76.1%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company.
Cash and Cash Equivalents	Cash and Cash Equivalents : Cash and cash equivalents include cash on hand, deposits at other financial institutions with original maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased and repurchase agreements.
Investment Securities	Investment Securities : Investments we intend to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are recorded at fair value using current market information from a pricing service, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax. The carrying values of our investment securities classified as available-for-sale are adjusted for unrealized gain or loss, and any gain or loss is reported on an after-tax basis as a component of other comprehensive income in shareholders' equity. Investments for which we have the intent and ability to hold to their maturity are classified as held-to-maturity securities and are recorded at amortized cost. Securities held-to-maturity are carried at cost, adjusted for the amortization of premiums and the accretion of discounts using the level-yield method over the remaining period until maturity. As of December 31, 2022, equity mutual funds have been recorded at fair value within the Other assets line of the Consolidated Balance Sheets with changes recorded in the Unrealized gain/(loss) recognized on equity securities line of the Consolidated Statements of Income. The Company invests in projects to create affordable housing. These investments are classified as Other assets on the Consolidated Balance Sheets. Investments in affordable housing projects that qualify for low-income housing tax credits ("LIHTC") are accounted for using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other benefits received and recognized as a component of applicable income tax expense in the Consolidated Statements of Income. Net purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities, without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Declines in the fair value of available-for-sale securities and held-to-maturity securities below their cost that are deemed to be other-than-temporary are recorded in earnings as realized losses in Non-interest income. Management evaluates securities for other-than-temporary impairment ("OTTI") on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to loss on securities, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. As of December 31, 2022 and 2021, no securities were determined to be other-than-temporarily impaired. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.
Correspondent Bank Stock	Correspondent Bank Stock : Correspondent bank stock includes stock in the Federal Home Loan Bank of Topeka ("FHLB"), Federal Reserve Bank ("FRB"), and Bankers’ Bank of the West ("BBW"), which are considered restricted securities because the Company may be required to hold the stock in order to maintain the correspondent banking relationship with these institutions. No ready market exists for the FHLB and FRB stock and therefore, no quoted market values exist. For financial reporting purposes, the FHLB and FRB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. The BBW stock is carried at fair value. No impairment was recorded as of December 31, 2022 and 2021. Both cash and stock dividends are reported as income when received.
Mortgage Loans Held for Sale	Mortgage Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized losses, if any, are recorded and charged to earnings. Servicing rights are released when the associated mortgage loans are sold. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.
Loans	Loans : Loans the Company has the intent and ability to hold for the foreseeable future, until maturity, or until payoff are reported at their outstanding unpaid principal balances, adjusted for charge-offs and recoveries, net of deferred costs (fees) and unamortized premiums/(unaccreted discounts), and the allowance for loan losses. Interest income is accrued on unpaid principal balances. Fees received at origination, net of certain direct origination costs for providing loan commitments and letters of credit that result in loans, are deferred and amortized to interest income over the life of the related loan or until payoff, at which time the remaining unamortized fee is recorded as interest income. Fees, net of certain direct origination costs on commitments and letters of credit, are amortized to interest income over the commitment period. Past Due Loans : The accrual of interest on loans is discontinued at the time the loan becomes 90 days delinquent unless the loan is well secured and in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged off if collection of interest or principal is considered doubtful. Interest accrued but not collected is charged off against interest income at the time a loan is placed on non-accrual status. The interest collected on non-accrual loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans can be returned to accrual status when there is a sustained period of repayment performance (usually six-months or longer) and the collectability of future payments is reasonably assured. Troubled Debt Restructurings : A troubled debt restructuring ("TDR") is a loan the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower the Company would not otherwise consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty, include but are not limited to (i) a reduction in the stated interest rate of the loan, (ii) an extension of the maturity date of the loan at an interest rate below market, or (iii) a reduction of the accrued interest. Loan modifications granted by the Company are reviewed on a case-by-case basis to determine if they should be considered a restructured loan.
COVID-19 and CARES Act	COVID-19 and CARES Act : On March 11, 2020 the World Health Organization declared the outbreak of COVID-19 a global pandemic, which continues to spread throughout the United States and the around the world. In response to the COVID-19 pandemic, the President signed the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") into law on March 27, 2020. The objective of the CARES Act is to prevent a severe economic downturn using various measures, including economic stimulus to significantly impacted industry sectors. We continue to monitor the impact of COVID-19 closely, as well as any effects that may result from the CARES Act and other government actions. See Note 5 - Loans and the Allowance for Loan Losses for further discussion on our loan modification program. All loans modified in response to COVID-19 are classified as performing and pass rated as of December 31, 2022 and 2021. These loans are included in the allowance for loan loss general reserve in accordance with ASC 450-20. Management has increased our loan level reviews and portfolio monitoring to address the changing environment. Management believes the diversity of the loan portfolio is prudent and remains consistent with the credit culture and goals of the Bank. The Company is a participant in the Federal Reserve’s Main Street Lending Program ("MSLP") to support lending to small and medium-sized for profit businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. The Company sold a 95% participation in new MSLP loans to the Main Street Special Purpose Vehicle ("SPV") at par value. The Company must retain 5% of the MSLP loan until (i) it matures or (ii) neither the Main Street SPV nor a Governmental Assignee holds an interest in MSLP Loan in any capacity, whichever comes first. See Note 5 - Loans and the Allowance for Loan Losses for further discussion on our participation in the program.
Allowance for Loan Losses	Allowance for Loan Losses : The Company’s reserve for loan losses is an estimate of the probable incurred loan losses and is comprised of (i) the allowance for loan losses and (ii) the reserve for unfunded commitments. The reserve for unfunded commitments is included in Other liabilities in the accompanying Consolidated Balance Sheets and the loan balances in the accompanying Consolidated Balance Sheets are reported net of the allowance for loan losses. The allowance for loan losses is established through a provision for loan losses, which is a noncash charge to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and dollar volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. We are closely monitoring the changing dynamics in the economy and related impacts to our clients. Management will continue to closely monitor the loan portfolio and analyze the economic data to assess the impact on the allowance for loan losses. A loan is considered impaired when, based on current information and events, it is probable the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. TDR and non-accrual loans are separately evaluated for impairment and included in the separately identified impairment disclosures. If cash flow dependent, TDR and non-accrual loans will be measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR or non-accrual loan is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDR and non-accrual loans that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting all scheduled principal and interest payments. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The allowance for loan losses is comprised of specific loan loss reserves and general loan loss reserves. The impairment of a specific loan is measured based either on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate, or (ii) the fair value of the underlying collateral, less costs to sell, if the repayment is expected to be provided predominantly by the sale of the underlying collateral. Specific impairments are measured on a loan-by-loan basis if risk characteristics are unique to an individual borrower. The general loan loss reserve covers non-impaired loans and is established by evaluating the incurred loss on homogenous pools of loans, not specifically reviewed for impairment as noted above, that have common risk characteristics. The general loan loss reserve is based on historical loss experiences adjusted for nine qualitative factors on all loans in the portfolio not considered impaired. Certain factors are applied to each pool and certain factors are applied to all non-individually reviewed loans. The nine qualitative factors the Company considers are: • Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. • Levels and trends in net charge-offs. • The existence and effect of any concentrations of credit and changes in the level of such concentrations. • Changes in the nature or volume of the loan portfolio and in the terms of loans. • Changes in the experience, ability, and depth of lending management and other relevant staff. • Changes in the volume and severity of past due loans. • Changes in the quality of the loan review system and associated grading changes. • Change in the level of overdrafts. • Levels and status of loans modified as a result of COVID-19. The following portfolio segments have been identified: • Cash, Securities and Other—consists of consumer and commercial purpose loans that are primarily secured by securities managed and under custody with us, cash on deposit with us, or life insurance policies. In addition, loans in this portfolio are collateralized with other sources of collateral. This segment of our portfolio is affected by a variety of local and national economic factors affecting borrowers’ employment prospects, income levels, and overall economic sentiment. PPP loans that are fully guaranteed by the SBA are classified within this line item as of December 31, 2022 and 2021. • Consumer and Other—consists of unsecured consumer loans. Loans held for investment accounted for under the fair value option are also classified within this line item. • Construction and Development—consists of loans to finance the construction of residential and non-residential properties. These loans are dependent on the strength of the industries of the related borrowers and the risks consistent with construction projects. • 1-4 Family Residential—consists of loans and home equity lines of credit secured by 1-4 family residential properties. These loans typically enable borrowers to purchase or refinance existing homes, most of which serve as the primary residence of the owner. In addition, some borrowers secure a commercial purpose loan with owner occupied or non-owner occupied 1-4 family residential properties. Loans in this segment are dependent on the industries tied to these loans as well as the national and local economies, and local residential and commercial real estate markets. • Commercial Real Estate ("CRE"), Owner Occupied and Non-Owner Occupied—consists of commercial loans collateralized by real estate. These loans may be collateralized by owner occupied or non-owner occupied real estate, as well as multi-family residential real estate. These loans are dependent on the strength of the industries of the related borrowers and the success of their businesses. • Commercial and Industrial—consists of commercial and industrial loans, including working capital lines of credit, permanent working capital term loans, business asset loans, acquisition, expansion and development loans, and other loan products, primarily in our target markets. This portfolio primarily consists of term loans and lines of credit which are dependent on the strength of the industries of the related borrowers and the success of their businesses. This category includes MSLP loans as of December 31, 2022 and 2021. The reserve for unfunded commitments represents the estimate for probable loan losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include commercial and standby letters of credit, unused lines of credit, and unfunded loan commitments expected to be funded. The process used to determine the reserve for unfunded commitments is consistent with the process for determining the allowance for loan losses, adjusted for estimated funding probabilities. Changes to the level of the reserve for unfunded commitments are recognized through the provision for loan losses for off-balance sheet credit exposures, included in the non-interest other expense line of the Consolidated Statements of 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 relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Prior to participating in the MSLP, the Company obtained a true sale opinion with regards to the legal isolation condition of the contract. Legal counsel determined that given the facts and circumstances provided, consistent with the FDIC rule entitled “Treatment of financial assets transferred in connection with a securitization or participation”, 12 C.F.R. §360.6, that the MSLP documents would be considered a true sale to the buyer. As such, Management concludes the MSLP loans qualify for sales accounting treatment and are true sales contracts under GAAP.
Premises and Equipment	Premises and Equipment: Premises and equipment are carried at cost, net of accumulated depreciation, with the exception of artwork and land, which are carried at cost. The Company acquired land and three buildings associated with the Teton Acquisition. These assets were initially recorded at their fair values based on recent appraisals and the buildings will be depreciated over their new remaining useful life, ranging from 25 to 50 years. Leasehold improvements are depreciated using the straight-line method and recognized over the shorter of the lease term or estimated useful lives of the assets, ranging from 7 to 15 years. Furniture/equipment and software are depreciated using the straight-line method and recognized over the estimated useful lives of the assets, ranging from 3 to 7 years.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets: Goodwill represents the excess of purchase price over the fair value of net identifiable tangible and intangible assets acquired in business combinations. The Company has acquired other identifiable intangible assets, primarily consisting of customer relationships, non-competition agreements, and recorded goodwill through its acquisition of financial services companies. Goodwill and other indefinite-lived intangible assets are not amortized, but are tested for impairment at the reporting unit level at least annually by applying a fair value-based test using discounted estimated future net cash flows. The Company has selected October 31 as the date to perform its annual impairment tests. Impairment exists when the carrying amount of the goodwill and other intangible assets exceeds their estimated fair values. Impairment losses, if any, are recognized as a charge to non-interest expense and an adjustment to the carrying value of the goodwill or other intangible assets. Subsequent reversals of impairment charges are prohibited. Goodwill is the only intangible asset with an indefinite life on the Company’s Consolidated Balance Sheets. Other definite-lived intangible assets, including customer relationship intangibles, are amortized on an accelerated basis over periods representing the estimated remaining lives of the assets of one
Accounts Receivable	Accounts Receivable: Accounts receivable primarily represents the billed but unpaid fees from trust and investment advisory services owed by clients, which are typically calculated as a percentage of average invested balances. The majority of the Company’s investment advisory clients are billed quarterly in arrears based on the daily average balance in the client’s trust or investment accounts for that quarter.
Other Receivables	Other Receivables : Other accounts receivable represents compensation paid to employees that is contingent on future employment and recognized in the Consolidated Statements of Income over the estimated service period and sales of investments and assets in which the Company has obtained a firm commitment as of the balance sheet dates.
Leases	Leases : Leases represent a contract that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company leases certain identified assets from third parties. Leases in which the Company is determined to be the lessee are primarily operating leases. Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. Operating leases are included in the Other assets and Other liabilities line items of the Consolidated Balance Sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Short-term leases of 12 months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Company’s Consolidated Balance Sheets. Renewal and termination options are considered when determining short-term leases. Leases are accounted for on an individual lease level. Rent holidays and rent escalations are recognized on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service.
Other Real Estate Owned	Other Real Estate Owned: Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value, less selling costs, at the date of foreclosure, establishing a new cost basis in the asset. Physical possession of residential real estate property collateralizing a residential mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through similar legal agreement. Subsequent to foreclosure, valuations are periodically performed by management, with any subsequent declines in value recorded as a charge to expense through an impairment recorded directly against the other real estate owned assets. Changes in the valuation allowance are recorded as provision for losses on other real estate owned. Revenue and expenses from operations related to other real estate owned are included in the Provision on other real estate owned line of the Consolidated Statements of Income.
Company-Owned Life Insurance	Company-Owned Life Insurance: The Company has purchased life insurance policies on certain current and former officers and key employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Mortgage Banking Derivatives	Mortgage Banking Derivatives : Commitments to fund mortgage loans, interest rate lock commitments ("IRLC") and forward sale commitments ("FSC"), to be sold in the secondary market for the future delivery of these loans are accounted for as free standing derivatives. The fair value of the IRLC is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. The Company sells mortgage loans to third party investors at the best execution available which includes best efforts, mandatory, and bulk bids. Loans committed under mandatory or bulk bid are considered FSC and qualify as financial derivatives. Fair values of these mortgage derivatives are estimated based on the change in the loan pricing from the date of the commitment to the period end date for any unsettled commitments. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Consolidated Statements of Income. In order to manage the interest rate risk on our uncommitted IRLC and mortgage loans held for sale pipeline, the Company enters into mortgage derivative financial instruments called To Be Announced ("TBA"), which we refer to as forward commitments. TBA agreements are forward contracts to purchase mortgage backed securities ("MBS") that will be issued by a US Government Sponsored Enterprise. The Bank purchases or sells these derivatives to offset the changes in value of our mortgage loans held for sale and IRLC adjusted pipeline where we have exposure to interest rate volatility. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Consolidated Statements of Income.
Stock-Based Compensation	Stock-Based Compensation : The Company has stock-based compensation plans that provide for the granting of stock options, restricted stock awards, restricted stock units and performance stock units to associates and non-associate directors who perform services for the Company. The Company estimates the fair value of its stock option awards on the date of grant using the Black-Scholes option-pricing model. The Company determines the fair value of the restricted and performance stock units as well as restricted stock awards based on the estimated market value of the underlying shares at the date of grant. Compensation cost is recognized over the required 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. The Company’s policy is to recognize forfeitures as they occur.
Income Taxes	Income Taxes : Income tax expense is the total of the current year income tax due and the change in the deferred tax assets and liabilities. Deferred income tax assets and liabilities are determined using the liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company recognizes tax benefits from uncertain tax positions when it is more-likely-than-not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any appeals or litigation. Tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon resolution.
Comprehensive Income	Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, net of taxes, which is also recognized as a separate component of equity.
Earnings per Common Share	Earnings per Common Share : Earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during each period. See Note 13 – Earnings Per Common Share for the common share equivalents that have been included and excluded from the calculation of earnings per common share.
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as unused lines of credit, commitments to make loans and commercial and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.
Loss Contingencies	Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements.
Deposits	Deposits : Deposit products include money market accounts, demand deposit accounts, time-deposit accounts (typically certificates of deposit), NOW accounts (interest checking accounts), and savings accounts. Our accounts are federally insured by the FDIC up to the legal maximum amount.
Borrowings	Borrowings : Short-term and long-term borrowing sources utilized to supplement deposits and meet liquidity needs. A blanket pledge and security agreement is in place with FHLB that requires certain loans and securities to be pledged as collateral for any outstanding borrowings under the agreement. Our borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed "well capitalized" by federal banking agencies.
Fair Value of Financial Instruments	Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 17 – Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.
Revenue Recognition	Revenue Recognition : In accordance with the Financial Accounting Standards Board ("FASB"), Revenue Contracts with Customers ("Topic 606"), trust and investment management fees are earned by providing trust and investment services to customers. The Company’s performance obligation under these contracts is satisfied over time as the services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the corresponding fee rate based on the terms of the contract. No performance based incentive fees were earned with respect to investment management contracts for the years ended December 31, 2022 and 2021. Receivables are recorded on the Consolidated Balance Sheets in the Accounts receivable line item. Income related to trust and investment management fees, bank fees, and risk management and insurance fees on the Consolidated Statements of Income for the years ended December 31, 2022 and 2021 are considered in scope of Topic 606.
Transition of LIBOR to an Alternative Reference Rate	Transition of LIBOR to an Alternative Reference Rate : In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR") announced that after 2021 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee to identify a set of alternative reference interest rates for possible use as market benchmarks. This committee has proposed the Secured Overnight Financing Rate ("SOFR") as its recommended alternative to U.S. dollar LIBOR, and the Federal Reserve Bank of New York began publishing SOFR rates in the second quarter of 2018. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. In March 2020, the Financial Accounting Standards Board (‘FASB”) issued Accounting Standards Update (“ASU’) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.
Restrictions on Cash	Restrictions on Cash : During the year ended December 31, 2021, the Board of Governors of the Federal Reserve System reduced reserve requirement ratios to zero percent. This action eliminated reserve requirements for all depository institutions.
Reclassifications	Reclassifications: Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income available to common shareholders or total shareholders’ equity.
Recently adopted accounting pronouncements and Recently issued accounting pronouncements, not yet adopted	Recently adopted accounting pronouncements : The following reflect recent accounting pronouncements that have been adopted by the Company during the Company’s fiscal year ended December 31, 2022. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge of the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 was set to be effective for the Company on January 1, 2021. However, ASU 2019-10 amended the mandatory effective date for ASU 2014-07 to January 1, 2023 for SRC’s, with earlier adoption permitted. On January 1, 2022, the Company adopted the new guidance. The adoption of this ASU has not had a material impact on the consolidated financial statements, and the Company has not recorded goodwill impairment to date as of part of the acquisition activity. Recently issued accounting pronouncements, not yet adopted : The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2022. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This was issued to clarify the guidance in Topic 820, Fair Value Measurement, when measuring fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company is currently assessing the impact of this guidance on our existing equity securities. This guidance is effective for the Company in fiscal years after December 15, 2023. In February 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss ("CECL") model. The CECL model is applicable to the measurement of credit losses on the financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings and the allowance for credit losses as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 was set to be effective for most public companies on January 1, 2020. However, at the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for smaller reporting companies ("SRCs") to January 1, 2023.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Estimated fair value of assets acquired and liabilities assumed	The following presents the final, recorded fair values of the assets acquired and liabilities assumed in the transaction with Teton as of December 31, 2021, including all measurement period adjustments to the provisional estimates. The measurement period has closed, with no further adjustments expected (dollars in thousands): Fair value of consideration transferred Provisional Estimates Measurement Period Adjustments December 31, Cash consideration $ 11,501 $ — $ 11,501 Common stock issued 39,818 — 39,818 Total fair value of consideration transferred 51,319 — 51,319 Assets acquired Cash and cash equivalents 132,498 — 132,498 Available-for-sale securities, at fair value 18,058 — 18,058 Correspondent bank stock, at cost 928 — 928 Mortgage loans held for sale 840 — 840 Loans, net 252,275 (857) 251,418 Premises and equipment 17,758 — 17,758 Accrued interest receivable 923 — 923 Accounts receivable 95 — 95 Other receivable 520 — 520 Core deposit intangible (1) 1,264 698 1,962 Other assets 226 242 468 Assets held for sale 115 5 120 Total assets acquired 425,500 88 425,588 Liabilities assumed Deposits 379,227 (29) 379,198 Accrued interest payable 26 — 26 Other liabilities 1,283 — 1,283 Deferred tax liabilities, net 42 (71) (29) Total liabilities assumed 380,578 (100) 380,478 Net assets acquired 44,922 188 45,110 Goodwill recognized $ 6,397 $ (188) $ 6,209 _____________________________ (1) The core deposit intangible was determined to have an estimated life of 10 years.
Schedule of composition of acquired loan portfolio	The composition of the contractual balance of acquired loans as of December 31, 2021 is detailed in the table below (dollars in thousands): Year Ended 2021 Cash, Securities and Other (1) $ 20,080 Construction and Development 33,977 1-4 Family Residential 70,348 Non-Owner Occupied CRE 43,162 Owner Occupied CRE 33,000 Commercial and Industrial 55,690 Total loans 256,257 Acquisition fair value adjustments (3,982) Loans, net $ 252,275 _____________________________ (1) Includes $6.7 million in PPP loans.
Schedule of acquisition expenses within Non-interest expense	The Company incurred $1.2 million and $4.1 million in expenses related to the acquisition during the years ended December 31, 2022 and December 31, 2021, respectively. The following presents the acquisition expenses within Non-interest expense of the Consolidated Statements of Income as of the dates noted (dollars in thousands): Year Ended Year Ended 2022 2021 Mergers and acquisitions expense: Salaries and employee benefits $ 591 $ 547 Professional services 563 1,118 Technology and information systems 7 — Data processing (73) 2,428 Marketing 81 — Other 54 8 Total mergers and acquisitions expense $ 1,223 $ 4,101
Schedule of business acquisition, pro forma information	Information for the year ended December 31, 2021 has been prepared for comparative purposes only, and is not indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the period presented, nor is it indicative of future results (in thousands, except per share data): Pro Forma Twelve Months Ended December 31, 2022 2021 Net interest income after provision for loan losses $ 79,522 $ 68,019 Noninterest income 28,412 41,206 Net income 21,698 23,234 Pro forma earnings per share: Basic 2.29 2.49 Diluted 2.23 2.43

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Schedule of the amortized cost and fair value of securities available for sale, with gross unrealized gains and losses recognized	The following presents the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss as of the date noted (dollars in thousands): December 31, 2021 Amortized Gross Gross Fair Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ (3) $ 247 U.S. Government Agency 3,522 — — 3,522 Corporate bonds 8,113 227 (15) 8,325 GNMA mortgage-backed securities – residential 26,611 185 (146) 26,650 FNMA mortgage-backed securities – residential 14,400 43 — 14,443 Government CMO and MBS - commercial 878 — — 878 Corporate CMO and MBS 1,492 23 (18) 1,497 Total securities available-for-sale $ 55,266 $ 478 $ (182) $ 55,562
Summary of the amortized cost and estimated fair value of available for sale securities, excluding SBIC with contractual maturity dates	As of December 31, 2022, the amortized cost and estimated fair value of held-to-maturity securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. December 31, 2022 Amortized Fair Due within one year $ — $ — Due between one year and five years 2,234 2,048 Due between five years and ten years 21,548 19,290 Due after ten years 280 262 Securities (CMO and MBS) 56,994 53,118 Total $ 81,056 $ 74,718
Summary of securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position	The following presents securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available-for-sale: U.S. Treasury Debt $ 247 $ (3) $ — $ — $ 247 $ (3) Corporate bonds 485 (15) — — 485 (15) GNMA mortgage-backed securities - residential 17,205 (146) — — 17,205 $ (146) Corporate CMO and MBS — — 521 (18) 521 (18) Total $ 17,937 $ (164) $ 521 $ (18) $ 18,458 $ (182)
Debt Securities, Held-to-Maturity, Unrealized Loss Position	The following presents securities with unrecognized losses aggregated by major security type and length of time in a continuous unrecognized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total December 31, 2022 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 234 $ (9) $ 234 $ (9) Corporate bonds 20,911 (2,436) 455 (17) 21,366 (2,453) GNMA mortgage-backed securities – residential 22,371 (1,051) 14,255 (1,749) 36,626 (2,800) FNMA mortgage-backed securities – residential 6,202 (506) — — 6,202 (506) Government CMO and MBS - commercial 5,591 (403) — — 5,591 (403) Corporate CMO and MBS 3,499 (147) 395 (33) 3,894 (180) Total $ 58,574 $ (4,543) $ 15,339 $ (1,808) $ 73,913 $ (6,351)
Schedule of Held-To-Maturity Securities Reconciliation	The following presents the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands): December 31, 2022 Amortized Gross Gross Fair Investment securities held-to-maturity: U.S. Treasury debt $ 243 $ — $ (9) $ 234 Corporate bonds 23,819 — (2,453) 21,366 GNMA mortgage-backed securities – residential 39,426 — (2,800) 36,626 FNMA mortgage-backed securities – residential 6,708 — (506) 6,202 Government CMO and MBS - commercial 6,786 13 (403) 6,396 Corporate CMO and MBS 4,074 — (180) 3,894 Total securities held-to-maturity $ 81,056 $ 13 $ (6,351) $ 74,718

CORRESPONDENT BANK STOCK (Table

CORRESPONDENT BANK STOCK (Tables)	12 Months Ended
	Dec. 31, 2022
CORRESPONDENT BANK STOCK
Summary of company's investment in correspondent bank stock	The following presents the Company’s investments in correspondent bank stock, as of the dates noted (dollars in thousands): December 31, 2022 2021 FHLB $ 7,078 $ 1,625 BBW 32 31 FRB — 928 Total $ 7,110 $ 2,584

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Summary of the Company's loans	The following presents a summary of the Company’s loans as of the dates noted (dollars in thousands): December 31, December 31, Cash, Securities and Other (1) $ 165,670 $ 261,190 Consumer and Other (2) 49,954 34,758 Construction and Development 288,497 178,716 1-4 Family Residential 898,154 580,872 Non-Owner Occupied CRE 496,776 482,622 Owner Occupied CRE 216,056 212,426 Commercial and Industrial (3) 361,028 203,584 Total loans held for investment 2,476,135 1,954,168 Deferred fees and unamortized premiums/(unaccreted discounts), net (4) (6,722) (5,031) Allowance for loan losses (17,183) (13,732) Loans, net $ 2,452,230 $ 1,935,405 _____________________________ (1) Includes Paycheck Protection Program ("PPP") loans of $7.1 million and $46.8 million as of December 31, 2022 and 2021, respectively. (2) Includes $23.4 million of unpaid principal balance of loans held for investment measured at fair value as of December 31, 2022. (3) Includes MSLP loans of $6.6 million and $6.8 million as of December 31, 2022 and 2021, respectively. (4) Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Summary of aging analysis of the recorded investments in loans past due	The following presents, by class, an aging analysis of the recorded investments (excluding accrued interest receivable, deferred fees, and unamortized premiums/(unaccreted discounts) which are not material) in loans past due as of the dates noted (dollars in thousands): December 31, 2022 30-59 60-89 90 or Total Current Total Cash, Securities and Other $ 1,735 $ 539 $ 4 $ 2,278 $ 163,392 $ 165,670 Consumer and Other 996 167 145 1,308 48,646 49,954 Construction and Development — — 201 201 288,296 288,497 1-4 Family Residential 1,747 — — 1,747 896,407 898,154 Non-Owner Occupied CRE 1,073 — — 1,073 495,703 496,776 Owner Occupied CRE 1,165 — — 1,165 214,891 216,056 Commercial and Industrial 5,051 10,724 1,318 17,093 343,935 361,028 Total $ 11,767 $ 11,430 $ 1,668 $ 24,865 $ 2,451,270 $ 2,476,135 December 31, 2021 30-59 60-89 90 or Total Current Total Cash, Securities and Other $ 745 $ — $ 6 $ 751 $ 260,439 $ 261,190 Consumer and Other 454 — 2 456 34,302 34,758 Construction and Development 2,758 — — 2,758 175,958 178,716 1-4 Family Residential 1,449 — — 1,449 579,423 580,872 Non-Owner Occupied CRE — 2,548 — 2,548 480,074 482,622 Owner Occupied CRE 1,419 — — 1,419 211,007 212,426 Commercial and Industrial 748 — 2,200 2,948 200,636 203,584 Total $ 7,573 $ 2,548 $ 2,208 $ 12,329 $ 1,941,839 $ 1,954,168
Schedule of recorded investment in non accrual loans by class	The following presents the recorded investment in non-accrual loans by class as of the dates noted (dollars in thousands): December 31, December 31, Cash, Securities and Other $ 4 $ 6 Consumer and Other 146 2 Construction and Development 201 — 1-4 Family Residential — 75 Owner Occupied CRE 1,165 1,241 Commercial and Industrial 10,833 2,938 Total $ 12,349 $ 4,262
Summary of the unpaid principal balance of loans classified as TDRs	The following presents a summary of the unpaid principal balance of loans classified as TDRs as of the dates noted (dollars in thousands): December 31, December 31, Accruing Non-Owner Occupied CRE $ — $ 55 Non-accrual Cash, Securities, and Other 4 6 1-4 Family Residential — 75 Owner Occupied CRE 1,165 1,241 Commercial and Industrial 1,951 2,938 Total 3,120 4,315 Allowance for loan losses associated with TDR — (1,751) Net recorded investment $ 3,120 $ 2,564
Summary of impaired loans by portfolio and related valuation allowance	The following presents impaired loans by portfolio and related valuation allowance as of the periods presented (in thousands): December 31, 2022 December 31, 2021 Total Unpaid Allowance Total Unpaid Allowance Impaired loans with a valuation allowance: Consumer and Other $ — $ — $ — $ 2 $ 2 $ 2 Commercial and Industrial — — — 2,190 2,190 1,751 Total $ — $ — $ — $ 2,192 $ 2,192 $ 1,753 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 4 $ 4 $ — $ 6 $ 6 $ — Construction and Development 201 201 — — — — 1-4 Family Residential — — — 75 75 — Owner Occupied CRE 1,165 1,165 — 1,241 1,241 — Commercial and Industrial 10,833 10,833 — 748 748 — Total $ 12,203 $ 12,203 $ — $ 2,070 $ 2,070 $ — Total impaired loans: Cash, Securities, and Other $ 4 $ 4 $ — $ 6 $ 6 $ — Consumer and Other — — — 2 2 2 Construction and Development 201 201 — — — — Commercial and Industrial 10,833 10,833 — 2,938 2,938 1,751 1-4 Family Residential — — — 75 75 — Owner Occupied CRE 1,165 1,165 — 1,241 1,241 — Total $ 12,203 $ 12,203 $ — $ 4,262 $ 4,262 $ 1,753 The following presents the average balance of impaired loans and interest income recognized on impaired loans during the periods presented (dollars in thousands): December 31, 2022 2021 Average Interest Average Interest Impaired loans with a valuation allowance: Cash, Securities, and Other $ — $ — $ 2 $ — Consumer and Other 1 — — — Commercial and Industrial — — 2,413 21 Total $ 1 $ — $ 2,415 $ 21 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 4 $ — $ 17 $ — Construction and Development 81 — — — Owner Occupied CRE 1,201 — 248 51 Commercial and Industrial 4,297 * 205 262 1-4 Family Residential 57 — 15 — Total $ 5,640 $ — $ 485 $ 313 Total impaired loans: Cash, Securities, and Other $ 4 $ — $ 19 $ — Consumer and Other 1 — — — Construction and Development 81 — — — Owner Occupied CRE 1,201 — 248 51 Commercial and Industrial 4,297 * 2,618 283 1-4 Family Residential 57 — 15 — Total $ 5,641 $ — $ 2,900 $ 334 _____________________________ (•) The Company recognized an immaterial amount of interest income during the period.
Schedule of activity in the Company's allowance for loan losses by portfolio class	Allocation of a portion of the allowance for loan losses to one category of loans does not preclude its availability to absorb losses in other categories. The following presents the activity in the Company’s allowance for loan losses by portfolio class for the periods presented (in thousands): Cash, Consumer and Other Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the year ended December 31, 2022 Beginning balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 (Recovery of)/provision for loan losses (399) 84 933 2,756 538 218 (448) 3,682 Charge-offs (1) (262) — — — — (71) (334) Recoveries — 103 — — — — — 103 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Allowance for loan losses as of December 31, 2022 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,198 191 2,025 6,309 3,490 1,510 2,460 17,183 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Loans as of December 31, 2022, evaluated for impairment: Individually $ 4 $ — $ 201 $ — $ — $ 1,165 $ 10,833 $ 12,203 Collectively 165,666 26,539 288,296 898,154 496,776 214,891 350,195 2,440,517 Measured at fair value — 23,415 — — — — — 23,415 Ending balance $ 165,670 $ 49,954 $ 288,497 $ 898,154 $ 496,776 $ 216,056 $ 361,028 $ 2,476,135 Cash, Consumer and Other Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the year ended December 31, 2021 Beginning balance $ 2,439 $ 140 $ 932 $ 3,233 $ 2,004 $ 1,159 $ 2,632 $ 12,539 Provision for/(recovery of) loan losses (841) 163 160 320 948 133 347 1,230 Charge-offs — (44) — — — — — (44) Recoveries — 7 — — — — — 7 Ending balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Allowance for loan losses as of December 31, 2021 allocated to loans evaluated for impairment: Individually $ — $ 2 $ — $ — $ — $ — $ 1,751 $ 1,753 Collectively 1,598 264 1,092 3,553 2,952 1,292 1,228 11,979 Ending balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Loans as of December 31, 2021, evaluated for impairment: Individually $ 6 $ 2 $ — $ 75 $ — $ 1,241 $ 2,938 $ 4,262 Collectively 261,184 34,756 178,716 580,797 482,622 211,185 200,646 1,949,906 Ending balance $ 261,190 $ 34,758 $ 178,716 $ 580,872 $ 482,622 $ 212,426 $ 203,584 $ 1,954,168
Summary of recorded investment in the Company's loans by class and by credit quality indicator	Loans not meeting any of the three criteria above are considered to be pass-rated loans. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of the dates noted (dollars in thousands): December 31, 2022 Pass Special Substandard Not Rated Total Cash, Securities and Other $ 165,666 $ — $ 4 $ — $ 165,670 Consumer and Other 26,539 — — 23,415 49,954 Construction and Development 288,296 — 201 — 288,497 1-4 Family Residential 898,154 — — — 898,154 Non-Owner Occupied CRE 496,776 — — — 496,776 Owner Occupied CRE 214,891 — 1,165 — 216,056 Commercial and Industrial 347,803 2,392 10,833 — 361,028 Total $ 2,438,125 $ 2,392 $ 12,203 $ 23,415 $ 2,476,135 December 31, 2021 Pass Special Substandard Not Rated Total Cash, Securities and Other $ 261,184 $ — $ 6 $ — $ 261,190 Consumer and Other 34,756 — 2 — 34,758 Construction and Development 176,194 2,522 — — 178,716 1-4 Family Residential 580,797 — 75 — 580,872 Non-Owner Occupied CRE 476,670 5,952 — — 482,622 Owner Occupied CRE 210,493 — 1,933 — 212,426 Commercial and Industrial 198,368 401 4,815 — 203,584 Total $ 1,938,462 $ 8,875 $ 6,831 $ — $ 1,954,168

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment	The following presents a summary of the cost and accumulated depreciation of premises and equipment as December 31 (dollars in thousands): 2022 2021 Building and building improvements $ 12,190 $ 12,190 Leasehold improvements, including artwork 12,879 11,464 Land 4,980 4,980 Equipment and software 5,815 6,144 Gross premise and equipment 35,864 34,778 Less: accumulated depreciation (10,746) (10,802) Premises and equipment, net $ 25,118 $ 23,976

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in carrying amount of goodwill	The following presents changes in the carrying amount of goodwill as of the dates noted (dollars in thousands): December 31, December 31, Beginning balance $ 30,588 $ 24,191 Acquisition activity (188) 6,397 Ending balance $ 30,400 $ 30,588
Schedule of intangible assets and accumulated amortization	The following presents the Company’s intangible assets and related accumulated amortization as of the dates noted (dollars in thousands): 2022 2021 Other intangibles $ 5,926 $ 5,857 Less: accumulated amortization on other intangibles (4,222) (4,543) Other intangible assets, net $ 1,704 $ 1,314
Schedule of estimated amortization expense	The following presents the expected amortization expense on definite-lived intangible assets existing as of December 31, 2022 (dollars in thousands): Year Expense 2023 $ 250 2024 226 2025 206 2026 193 2027 183 Thereafter 646 Total $ 1,704

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Lease Balance Sheet Location	The following table presents the classification of the right-of-use assets and corresponding liabilities within the Consolidated Balance Sheets, as of the dates noted (dollars in thousands): December 31, December 31, Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 8,602 $ 10,720 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 11,163 $ 13,863
Schedule Of Weighted Average Lease Term And Discount Rate	December 31, December 31, Weighted-Average Remaining Lease Term Operating leases 4.85 years 5.26 years Weighted-Average Discount Rate Operating leases 2.63% 2.67%
Lease Costs	The following represents the Company’s net lease costs during the periods presented (dollars in thousands): Year Ended December 31, 2022 2021 Lease Costs Operating lease cost $ 3,151 $ 3,040 Variable lease cost 2,104 1,756 Lease costs, net $ 5,255 $ 4,796
Schedule of Minimum Lease Payments Due	The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Operating Leases 2023 $ 3,228 2024 3,083 2025 2,141 2026 810 2027 734 Thereafter 1,752 Total future minimum lease payments 11,748 Less: imputed interest (585) Present value of net future minimum lease payments $ 11,163
Summary of maturity analysis of the Company's operating payments to be received	The following presents a maturity analysis of the Company’s lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Undiscounted Operating Lease Income 2023 $ 242 2024 199 2025 — 2026 — 2027 — Thereafter — Total undiscounted operating lease income $ 441

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2022
Deposits [Abstract]
Schedule of interest bearing deposits	The following presents the Company’s interest-bearing deposits as of the dates noted (dollars in thousands): December 31, December 31, Money market deposit accounts $ 1,336,092 $ 1,056,669 Time deposits 224,090 170,491 Negotiable order of withdrawal accounts 234,778 309,940 Savings accounts 27,177 32,299 Total interest-bearing deposits $ 1,822,137 $ 1,569,399 Estimated aggregate time deposits of $250 or greater $ 77,972 $ 75,747
Schedule of Time Deposit Maturities	The following presents the scheduled maturities of all time deposits for the next five years ending December 31 (dollars in thousands): Year Ending December 31, Time Deposits 2023 $ 181,036 2024 32,892 2025 2,998 2026 2,121 2027 5,043 Thereafter — Total $ 224,090

BORROWINGS (Tables)

BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of borrowings from FHLB Topeka	The Company had the following required maturities on FHLB borrowings as of the dates noted (dollars in thousands): Maturity Date Rate % December 31, December 31, April 22, 2022 0.37 $ — $ 5,000 January 1, 2023 (1) 4.48 131,498 — May 5, 2023 0.76 10,000 10,000 Total $ 141,498 $ 15,000 (1) The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of contract amounts represent credit risk	The following presents the Company’s financial instruments whose contract amounts represent credit risk, as of the dates noted (dollars in thousands): December 31, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 211,285 $ 601,202 $ 136,289 $ 442,035 Standby letters of credit 8,571 16,737 2,420 20,940 Commitments to make loans to sell 13,553 — 60,529 — Commitments to make loans 20,895 81,663 16,256 14,920

SHAREHOLDERS EQUITY (Tables)

SHAREHOLDERS EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of summarizes activity for nonqualified stock options	The following presents activity for nonqualified stock options for the year ended December 31, 2022: Number Weighted Weighted Aggregate Outstanding as of December 31, 2021 308,574 $ 29.21 Exercised (8,309) 21.50 Forfeited or expired (116,100) 40.00 Outstanding as of December 31, 2022 184,165 22.76 2.1 (1) Options fully vested/exercisable as of December 31, 2022 184,165 22.76 2.1 (1) _____________________________ (1) Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values.
Schedule of summarizes the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units	The following presents the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units during the year ended December 31, 2022: Time Financial Market Outstanding as of December 31, 2021 249,821 183,483 13,746 Granted 157,682 92,697 — Vested (83,918) (12,100) — Forfeited (37,590) (28,568) (13,746) Outstanding as of December 31, 2022 285,995 235,512 —
Schedule of financial performance units activity	The following presents the Company’s existing Financial Performance Units as of December 31, 2022 (dollars in thousands, except share amounts): Grant Period Threshold Accrual Maximum Unrecognized Compensation Expense Weighted-Average Life (1) Financial Metric End Date Vesting Requirement End Date May 1, 2019 through April 30, 2020 150 % 69,306 $ 145 1.0 years December 31, 2021 December 31, 2023 May 1, 2020 through December 31, 2020, excluding November 18, 2020 150 % 74,364 267 2.0 years December 31, 2022 December 31, 2023 On November 18, 2020 115 % 24,161 238 1.9 years December 31, 2022 50% November 18, 2023 and 2025 May 3, 2021 through August 11, 2021 150 % 53,882 604 3.0 years December 31, 2023 December 31, 2025 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2) — % — — 4.0 years December 31, 2024 December 31, 2026 On August 4, 2022 (3) 100 % 18,181 680 4.0 years December 31, 2024 December 31, 2026 _____________________________ (1) Represents the expected unrecognized stock-based compensation expense recognition period. (2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of December 31, 2022. (3) Performance threshold was not met for the year ended December 31, 2022. The 100% threshold is expected to be met for the years ended December 31, 2023 and 2024. The following presents the Company’s Financial Performance Units activity for the years noted December 31 (dollars in thousands): Units Granted Compensation Expense Recognized Grant Period 2022 2021 2022 2021 Prior to May 1, 2019 — — $ — $ 110 May 1, 2019 through April 30, 2020 — — 122 216 May 1, 2020 through December 31, 2020, excluding November 18, 2020 — — 168 208 On November 18, 2020 — 41 125 May 3, 2021 through August 11, 2021 — 41,743 273 221 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (1) 65,425 — — — On August 4, 2022 (2) 27,272 — 47 — _____________________________ (1) Performance threshold was not met for the year ended December 31, 2022; therefore, no compensation expense was recognized as of the year ended December 31, 2022. (2) Performance threshold was not met for the year ended December 31, 2022. The 100% threshold is expected to be met for the years ended December 31, 2023 & 2024.

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	The following presents the calculation of basic and diluted earnings per common share for the periods indicated (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 Earnings per common share - Basic Numerator: Net income available for common shareholders $ 21,698 $ 20,610 Denominator: Basic weighted average shares 9,461,349 7,980,491 Earnings per common share - basic $ 2.29 $ 2.58 Earnings per common share - Diluted Numerator: Net income available for common shareholders $ 21,698 $ 20,610 Denominator: Basic weighted average shares 9,461,349 7,980,491 Diluted effect of common stock equivalents: Stock options 42,944 30,661 Time Vesting Units 117,774 139,829 Financial Performance Units 88,143 70,437 Market Performance Units 3,413 13,760 Total diluted effect of common stock equivalents 252,274 254,687 Diluted weighted average shares 9,713,623 8,235,178 Earnings per common share - diluted $ 2.23 $ 2.50
Schedule of Antidilutive securities	The following presents potentially dilutive securities excluded from the diluted earnings per share calculation during the periods presented: Year Ended December 31, 2022 2021 Stock options — 168,872 Time Vesting Units 86,145 996 Financial Performance Units 23,553 32,713 Restricted Stock Awards — 7,895 Total potentially dilutive securities 109,698 210,476

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The following presents the components of the Company’s income tax expense as of December 31 (dollars in thousands): 2022 2021 Current: Federal $ 5,637 $ 6,228 State and local 936 1,110 Total current tax expense 6,573 7,338 Deferred: Federal 536 (734) State and local (55) 66 Valuation allowance 76 — Total deferred tax expense (benefit) 557 (668) Income tax expense $ 7,130 $ 6,670
Schedule of reconciliation of income tax (expense) benefit	The following is a reconciliation of income taxes reflected on the Consolidated Statements of Income for the years ended December 31, 2022 and 2021, with income tax expense computed by applying the United States federal income tax rate of 21% to income before income taxes (dollars in thousands): 2022 2021 Income tax expense computed at 21% statutory rate $ 6,054 $ 5,729 Differences: Permanent differences 101 169 State taxes, net of federal expense 1,005 1,018 LIHTC investment tax credit (404) (386) LIHTC investment proportional amortization 378 539 Valuation allowance 76 — Other, net (80) (399) Income tax expense $ 7,130 $ 6,670
Schedule of principal components of deferred tax assets (liabilities)	The following presents the principal components of the Company’s deferred tax items as of December 31 (dollars in thousands): 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 472 $ 395 Allowance for loan losses 4,165 3,385 Acquired loans fair market value adjustments 826 976 Assets acquired at fair value — 226 Loans accounted for under the fair value option 146 — Deferred rent 621 753 Stock-based compensation 1,705 1,800 Provision on other real estate owned — 463 Other intangible assets 254 279 Unrealized losses on securities 495 — Accrued bonuses — 868 Loan fees 459 — Accrued expenses — 821 Other 1,574 382 Total deferred tax assets 10,717 10,348 Deferred tax liabilities: Goodwill (1,087) (1,137) Depreciation (1,864) (1,636) Unrealized gain on securities — (73) Loan fees — (155) Acquired loans fair market value adjustments (215) — Other (189) (130) Total deferred tax liabilities (3,355) (3,131) Net operating loss valuation allowance (448) (372) Net deferred tax asset $ 6,914 $ 6,845

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Summary of related-party loan activity	The following presents a summary of related-party loan activity as of the dates noted (dollars in thousands): December 31, 2022 December 31, 2021 Balance, beginning of year $ 12,833 $ 14,321 Funded loans 15,079 11,294 Payments collected (11,053) (12,782) Balance, end of period $ 16,859 $ 12,833

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of fair value assets and liabilities measured on recurring basis	The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands): December 31, 2022 Quoted Significant Significant Reported Mortgage loans held for sale $ — $ 8,839 $ — $ 8,839 Loans held for sale $ 1,965 $ — $ — $ 1,965 Loans held at fair value $ — $ — $ 23,321 $ 23,321 Forward commitments and FSC $ — $ 46 $ — $ 46 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 143 $ 143 IRLC, net $ — $ — $ 229 $ 229 Equity warrants $ — $ — $ 825 $ 825 December 31, 2021 Quoted Significant Significant Reported Investment securities available-for-sale: U.S. Treasury debt $ 247 $ — $ — $ 247 U.S. Government Agency — 3,522 — 3,522 Corporate bonds — 6,212 2,113 8,325 GNMA mortgage-backed securities - residential — 26,650 — 26,650 FNMA mortgage-backed securities - residential — 14,443 — 14,443 Government CMO and MBS — 878 — 878 Corporate CMO and MBS — 1,497 — 1,497 Total securities available-for-sale $ 247 $ 53,202 $ 2,113 $ 55,562 Mortgage loans held for sale $ — $ 30,620 $ — $ 30,620 Forward commitments and FSC $ — $ (65) $ (9) $ (74) Equity securities $ 709 $ 489 $ — $ 1,198 Guarantee asset $ — $ — $ 237 $ 237 IRLC, net $ — $ — $ 1,473 $ 1,473 Equity warrants $ — $ — $ 160 $ 160
Summary of assets and liability for level 3 instruments measured at fair value on recurring basis	The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands): Year Ended December 31, 2022 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160 Acquisitions 4,000 35,616 9 — 3,213 344 Originations — — — 1 (5,048) — Gains (losses) in net income, net — (94) — (75) 591 321 Unrealized gains, net 102 — — — — — Transfer to held-to-maturity (6,215) — — — — — Settlements — (12,201) — (20) — — Ending balance $ — $ 23,321 $ — $ 143 $ 229 $ 825 Year Ended December 31, 2021 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ — $ (89) $ 232 $ 9,841 $ — Acquisitions 2,113 — (182) — 19,526 160 Originations — — — 2 (25,804) — Gains (losses) in net income, net — — 262 32 (2,090) — Other settlements — — — (29) — — Ending balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160
Schedule of information about the fair value carrying amount and unpaid principal outstanding of loans	The following provides more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted (dollars in thousands): December 31, 2022 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Mortgage loans held for sale $ 8,839 $ 8,750 $ 89 $ — $ — $ — $ — $ — $ — Loans held for sale 1,965 1,984 (19) — — $ — — — — Loans held for investment 23,321 23,415 (94) 139 140 (1) 139 140 (1) $ 34,125 $ 34,149 $ (24) $ 139 $ 140 $ (1) $ 139 $ 140 $ (1) December 31, 2021 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Mortgage loans held for sale $ 30,620 $ 29,857 $ 763 $ — $ — $ — $ — $ — $ — Loans held for investment — — — — — — — — — $ 30,620 $ 29,857 $ 763 $ — $ — $ — $ — $ — $ —
Schedule of changes in fair value of loans	The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted (dollars in thousands): Year Ended December 31, 2022 2021 Mortgage loans held for sale $ (673) $ 4,712 Loans held for sale (20) — Loans held for investment (94) — $ (787) $ 4,712 The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands): Year Ended December 31, Mortgage loans held for sale 2022 2021 Balance at beginning of period $ 30,620 $ 161,843 Loans originated 439,682 1,425,713 Loans acquired — 840 Fair value changes (673) (4,712) Sales (460,514) (1,548,405) Settlements (276) (4,659) Balance at end of period $ 8,839 $ 30,620 Year Ended December 31, Loans held for sale 2022 2021 Balance at beginning of period $ — $ — Loans transferred from held for investment 1,985 — Fair value changes (20) — Balance at end of period $ 1,965 $ — Year Ended December 31, Loans held for investment 2022 2021 Balance at beginning of period — $ — Loans acquired 35,616 — Fair value changes (94) — Settlements (12,201) — Balance at end of period $ 23,321 $ —
Summary of assets measured at fair value on nonrecurring basis	The following presents assets measured on a nonrecurring basis as of the dates noted (dollars in thousands): December 31, 2021 Quoted Significant Significant Reported Impaired loans (1) : Commercial and Industrial $ — $ — $ 439 $ 439 _____________________________ (1) One immaterial Consumer and Other loan was fully reserved for using a specific allowance as of December 31, 2021.
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs	The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 23,321 Discounted cash flow Discount rate 4% to 18% (8)% Guarantee asset 143 Discounted cash flow Discount rate 5% (5%) 4% (4)% IRLC, net 229 Best execution model Pull through 73% to 100% (91)% Equity Warrants 825 Black-Scholes option pricing model Volatility 31.2% to 44.7% (34.8)% 4.04% to 4.14% (4.05)% 0 to 4 years Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Value Valuation Significant Range Recurring fair value Corporate Bonds $ 2,113 Discounted cash flow Discount rate 7% (7)% FSC (9) Internal pricing model Market Differential (14) bps to (2) bps ((6) bps) Guarantee asset 237 Discounted cash flow Discount rate 3% (3%) 18% (18%) IRLC, net 1,473 Best execution model Pull through 71% to 100% (88)% Equity warrants 160 Black-Scholes option pricing model Volatility 24% to 37% (32)% 0.30% to 1.10% (0.97)% 0 to 4 years Nonrecurring fair value Impaired loans (1) : Commercial and Industrial 439 Sales comparison, Market approach - guideline transaction method Management discount for asset/property type 17% - 45% (39%) _____________________________ (1) One immaterial Consumer and Other loan was fully reserved for using a specific allowance as of December 31, 2021.
Schedule of carrying amounts and estimated fair value of financial instruments not carried at fair value	The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands): Carrying Fair Value Measurements Using: December 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 196,512 $ 196,512 $ — $ — Held-to-maturity securities 81,056 234 67,433 7,051 Loans, net 2,452,230 — — 2,379,406 Accrued interest receivable 10,445 5 362 10,078 Liabilities: Deposits 2,405,229 2,181,139 — 228,868 Borrowings: FHLB borrowings – fixed rate 141,498 — 141,867 — Federal Reserve borrowings – fixed rate 5,388 — 5,388 — Subordinated notes – fixed-to-floating rate 52,132 — — 60,384 Accrued interest payable 1,125 — 587 538 Carrying Fair Value Measurements Using: December 31, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 386,983 $ 386,983 $ — $ — Loans, net 1,935,405 — — 1,919,625 Accrued interest receivable 7,151 2 203 6,946 Liabilities: Deposits 2,205,703 2,035,212 — 172,240 Borrowings: FHLB borrowings – fixed rate 15,000 — 14,990 — Federal Reserve borrowings – fixed rate 23,629 — 23,629 — Subordinated notes – fixed-to-floating rate 39,031 — — 40,325 Accrued interest payable 355 9 77 269

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of segment data	The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the years ended December 31, 2022 and 2021 (dollars in thousands): As of and for the year ended December 31, 2022 Wealth Mortgage Consolidated Income Statement Total interest and dividend income $ 100,474 $ — $ 100,474 Total interest expense 17,270 — 17,270 Provision for loan losses 3,682 — 3,682 Net interest income, after provision for loan losses 79,522 — 79,522 Non-interest income 23,094 5,318 28,412 Total income before non-interest expense 102,616 5,318 107,934 Depreciation and amortization expense 2,111 42 2,153 All other non-interest expense 69,366 7,587 76,953 Income before income taxes $ 31,139 $ (2,311) $ 28,828 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,856,653 10,095 2,866,748 As of and for the year ended December 31, 2021 Wealth Mortgage Consolidated Income Statement Total interest and dividend income $ 62,011 $ — $ 62,011 Total interest expense 5,416 — 5,416 Provision for loan losses 1,230 — 1,230 Net interest income, after provision for loan losses 55,365 — 55,365 Non-interest income 23,924 16,119 40,043 Total income before non-interest expense 79,289 16,119 95,408 Depreciation and amortization expense 1,147 53 1,200 All other non-interest expense 56,764 10,164 66,928 Income before income taxes $ 21,378 $ 5,902 $ 27,280 Goodwill $ 30,588 $ — $ 30,588 Total assets 2,494,207 33,282 2,527,489

CONDENSED FINANCIAL STATEMENT_2

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables)	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Condensed Balance Sheets	December 31, December 31, Condensed Balance Sheets 2022 2021 Assets Cash and cash equivalents $ 26,372 $ 18,124 Investment in subsidiaries 263,362 233,417 Loans, net — 1,978 Other assets 3,723 3,611 Total assets $ 293,457 $ 257,130 Liabilities Subordinated notes $ 52,132 $ 39,031 Other liabilities (1) 461 (942) Total liabilities 52,593 38,089 Shareholders' Equity Total shareholders’ equity 240,864 219,041 Total liabilities and shareholders’ equity $ 293,457 $ 257,130 _____________________________ (1) As of December 31, 2021, taxes payable was in a receivable position as a result of timing of tax payments.
Condensed Statements of Income	Year Ended December 31, Condensed Statements of Income 2022 2021 Income Interest income $ 46 $ 60 Non-interest income 7 — Total income 53 60 Expense Interest expense 1,609 1,549 Non-interest expense 272 285 Total expense 1,881 1,834 Loss before income tax and equity in undistributed income of subsidiaries (1,828) (1,774) Income tax benefit 412 119 Loss before equity in undistributed income of subsidiaries (1,416) (1,655) Equity in undistributed income to subsidiaries 23,114 22,265 Net income $ 21,698 $ 20,610
Condensed Statements of Cash Flows	Year Ended December 31, Condensed Statements of Cash Flows 2022 2021 Cash flows from operating activities Net income $ 21,698 $ 20,610 Adjustments: Depreciation and amortization 167 73 Deferred income tax expense 941 301 Stock-based compensation 2,562 2,903 Undistributed equity in subsidiaries (23,114) (22,265) Change in other assets 235 678 Change in other liabilities 115 53 Net cash provided by/(used in) operating activities 2,604 2,353 Cash flows from investing activities Net cash paid on acquisition — (11,501) Investment in subsidiaries (8,571) (2,913) Loan and note receivable originations and principal collections 1,978 43 Net cash used in investing activities (6,593) (14,371) Cash flows from financing activities Proceeds from subordinated notes, net of issuance costs 19,509 14,667 Payment on subordinated notes (6,575) — Settlement of restricted stock (876) (501) Proceeds from the exercise of stock options 179 1,706 Net cash provided by financing activities 12,237 15,872 Net change in cash and cash equivalents 8,248 3,854 Cash and cash equivalents, beginning of year 18,124 14,270 Cash and cash equivalents, end of year $ 26,372 $ 18,124 Supplemental cash flow information: Interest paid on borrowed funds $ 1,609 $ 1,549 Supplemental noncash disclosures: Common stock issued for Teton acquisition — 39,818

OTHER NON-INTEREST EXPENSE (Tab

OTHER NON-INTEREST EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2022
Other Income and Expenses [Abstract]
Other Non-interest expense	Other non-interest expense as shown in the Consolidated Statements of Income is detailed in the following schedule to the extent the components exceed one percent of total interest income and other income (dollars in thousands): Year Ended December 31, Other non-interest expense 2022 2021 Corporate development and related $ 2,440 $ 1,769 Loan and deposit related 1,420 1,016 Other 687 470 Total other non-interest expense $ 4,547 $ 3,255

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	12 Months Ended
	Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Schedule of actual and required capital ratios	The following presents the actual and required capital amounts and ratios as of the dates noted (dollars in thousands): Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 234,738 10.29 % $ 136,928 6.0 % $ 182,571 8.0 % Consolidated 212,229 9.28 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 234,738 10.29 102,696 4.5 148,339 6.5 Consolidated 212,229 9.28 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 252,398 11.06 182,571 8.0 228,213 10.0 Consolidated 282,889 12.37 N/A N/A N/A N/A Tier 1 capital to average assets Bank 234,738 8.65 108,506 4.0 135,633 5.0 Consolidated 212,229 7.81 N/A N/A N/A N/A Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 203,164 11.40 % $ 106,945 6.0 % $ 142,594 8.0 % Consolidated 188,777 10.54 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 203,164 11.40 80,209 4.5 115,858 6.5 Consolidated 188,777 10.54 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 217,215 12.19 142,594 8.0 178,242 10.0 Consolidated 242,388 13.54 N/A N/A N/A N/A Tier 1 capital to average assets Bank 203,164 10.05 80,887 4.0 101,108 5.0 Consolidated 188,777 9.31 N/A N/A N/A N/A _____________________________ (1) Does not include capital conservation buffer .

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) building security	Dec. 31, 2021 USD ($) security
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Securities determined to be other-than-temporarily impaired | security	0	0
Impairment of correspondent bank stock	$ 0	$ 0
Performance based incentive fees	$ 0	$ 0
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining amortization period (in years)	1 year
Minimum | Leasehold improvements, including artwork
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	7 years
Minimum | Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	3 years
Minimum | Furniture/equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	3 years
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining amortization period (in years)	10 years
Maximum | Leasehold improvements, including artwork
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	15 years
Maximum | Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	7 years
Maximum | Furniture/equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	7 years
Teton Financial Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of buildings acquired | building	3
Teton Financial Services | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	25 years
Teton Financial Services | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life (in years)	50 years
Real Estate | Loans Receivable | Collateral concentration risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk (as a percent)	77.90%	76.10%

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 30,588	$ 30,400	$ 24,191
Teton Financial Services
Business Acquisition [Line Items]
Purchase consideration	51,319
Goodwill	6,209
Loans, net	251,418
Contractual balance	256,300
Discount on loans	$ 4,000
Discount on loans (in percent)	1.60%
Teton Financial Services | Provisional Estimate
Business Acquisition [Line Items]
Purchase consideration	$ 51,319
Goodwill	6,397
Loans, net	$ 252,275

ACQUISITIONS - Fair value (Deta

ACQUISITIONS - Fair value (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020
Liabilities assumed
Deposits	$ 379,200
Goodwill recognized	30,588	$ 30,400	$ 24,191
Core Deposits
Liabilities assumed
Estimated life		10 years
Teton Financial Services
Business Acquisition [Line Items]
Cash consideration	11,501
Common stock issued	39,818
Total fair value of consideration transferred	51,319
Assets acquired
Cash and cash equivalents	132,498
Available-for-sale securities, at fair value	18,058
Correspondent bank stock, at cost	928
Mortgage loans held for sale	840
Loans, net	251,418
Premises and equipment	17,758
Accrued interest receivable	923
Accounts receivable	95
Other receivable	520
Core deposit intangible	1,962
Other assets	468
Assets held for sale	120
Total assets acquired	425,588
Measurement Period Adjustments, Loans, net	(857)
Measurement Period Adjustments, Core deposit intangibles	698
Measurement Period Adjustments, Other assets	242
Measurement Period Adjustments, Assets held for sale	5
Measurement Period Adjustments, Total assets acquired	88
Liabilities assumed
Deposits	379,198
Accrued interest payable	26
Other liabilities	1,283
Deferred tax liabilities, net	(29)
Total liabilities assumed	380,478
Measurement Period Adjustments, Deposits	(29)
Measurement Period Adjustments, Deferred tax liabilities, net	(71)
Measurement Period Adjustments, Liabilities	(100)
Net assets acquired	45,110
Goodwill recognized	6,209
Measurement Period Adjustments, Net assets acquired	188
Measurement Period Adjustments, Goodwill recognized	(188)
Teton Financial Services | Provisional Estimate
Business Acquisition [Line Items]
Cash consideration	11,501
Common stock issued	39,818
Total fair value of consideration transferred	51,319
Assets acquired
Cash and cash equivalents	132,498
Available-for-sale securities, at fair value	18,058
Correspondent bank stock, at cost	928
Mortgage loans held for sale	840
Loans, net	252,275
Premises and equipment	17,758
Accrued interest receivable	923
Accounts receivable	95
Other receivable	520
Core deposit intangible	1,264
Other assets	226
Assets held for sale	115
Total assets acquired	425,500
Liabilities assumed
Deposits	379,227
Accrued interest payable	26
Other liabilities	1,283
Deferred tax liabilities, net	42
Total liabilities assumed	380,578
Net assets acquired	44,922
Goodwill recognized	$ 6,397

ACQUISITIONS - Acquired loans (

ACQUISITIONS - Acquired loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Total loans held for investment	$ 2,476,135	$ 1,954,168
Cash, Securities and Other
Business Acquisition [Line Items]
Total loans held for investment	165,670	261,190
Construction and Development
Business Acquisition [Line Items]
Total loans held for investment	288,497	178,716
1-4 Family Residential
Business Acquisition [Line Items]
Total loans held for investment	898,154	580,872
Non-Owner Occupied CRE
Business Acquisition [Line Items]
Total loans held for investment	496,776	482,622
Owner Occupied CRE
Business Acquisition [Line Items]
Total loans held for investment	216,056	212,426
Commercial and Industrial
Business Acquisition [Line Items]
Total loans held for investment	361,028	203,584
PPP Loans
Business Acquisition [Line Items]
Total loans held for investment	$ 7,100	46,800
Teton Financial Services
Business Acquisition [Line Items]
Loans, net		251,418
Teton Financial Services | Provisional Estimate
Business Acquisition [Line Items]
Total loans		256,257
Acquisition fair value adjustments		(3,982)
Loans, net		252,275
Teton Financial Services | Cash, Securities and Other | Provisional Estimate
Business Acquisition [Line Items]
Total loans		20,080
Teton Financial Services | Construction and Development | Provisional Estimate
Business Acquisition [Line Items]
Total loans		33,977
Teton Financial Services | 1-4 Family Residential | Provisional Estimate
Business Acquisition [Line Items]
Total loans		70,348
Teton Financial Services | Non-Owner Occupied CRE | Provisional Estimate
Business Acquisition [Line Items]
Total loans		43,162
Teton Financial Services | Owner Occupied CRE | Provisional Estimate
Business Acquisition [Line Items]
Total loans		33,000
Teton Financial Services | Commercial and Industrial | Provisional Estimate
Business Acquisition [Line Items]
Total loans		55,690
Teton Financial Services | PPP Loans
Business Acquisition [Line Items]
Total loans held for investment		$ 6,700

ACQUISITIONS - Acquisition expe

ACQUISITIONS - Acquisition expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Total mergers and acquisitions expense	$ 1,223	$ 4,101
Salaries and employee benefits
Business Acquisition [Line Items]
Total mergers and acquisitions expense	591	547
Professional services
Business Acquisition [Line Items]
Total mergers and acquisitions expense	563	1,118
Technology and information systems
Business Acquisition [Line Items]
Total mergers and acquisitions expense	7	0
Data processing
Business Acquisition [Line Items]
Total mergers and acquisitions expense	(73)	2,428
Marketing
Business Acquisition [Line Items]
Total mergers and acquisitions expense	81	0
Other
Business Acquisition [Line Items]
Total mergers and acquisitions expense	$ 54	$ 8

ACQUISITIONS - Pro forma inform

ACQUISITIONS - Pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Net interest income after provision for loan losses	$ 79,522	$ 68,019
Noninterest income	28,412	41,206
Net income	$ 21,698	$ 23,234
Pro forma earnings per share, basic (in dollars per share)	$ 2.29	$ 2.49
Pro forma earnings per share, diluted (in dollars per share)	$ 2.23	$ 2.43

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment securities held-to-maturity:
Amortized Cost	$ 81,056
Gross Unrecognized Gains	13
Gross Unrecognized Losses	(6,351)
Fair Value	74,718
Investment securities available-for-sale:
Amortized Cost		$ 55,266
Gross Unrealized Gains		478
Gross Unrealized Losses		(182)
Fair Value	0	55,562
U.S. Treasury debt
Investment securities held-to-maturity:
Amortized Cost	243
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(9)
Fair Value	234
Investment securities available-for-sale:
Amortized Cost		250
Gross Unrealized Gains		0
Gross Unrealized Losses		(3)
Fair Value		247
U.S. Government Agency
Investment securities available-for-sale:
Amortized Cost		3,522
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		3,522
Corporate bonds
Investment securities held-to-maturity:
Amortized Cost	23,819
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(2,453)
Fair Value	21,366
Investment securities available-for-sale:
Amortized Cost		8,113
Gross Unrealized Gains		227
Gross Unrealized Losses		(15)
Fair Value		8,325
GNMA mortgage-backed securities – residential
Investment securities held-to-maturity:
Amortized Cost	39,426
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(2,800)
Fair Value	36,626
Investment securities available-for-sale:
Amortized Cost		26,611
Gross Unrealized Gains		185
Gross Unrealized Losses		(146)
Fair Value		26,650
FNMA mortgage-backed securities – residential
Investment securities held-to-maturity:
Amortized Cost	6,708
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(506)
Fair Value	6,202
Investment securities available-for-sale:
Amortized Cost		14,400
Gross Unrealized Gains		43
Gross Unrealized Losses		0
Fair Value		14,443
Government CMO and MBS - commercial
Investment securities held-to-maturity:
Amortized Cost	6,786
Gross Unrecognized Gains	13
Gross Unrecognized Losses	(403)
Fair Value	6,396
Investment securities available-for-sale:
Amortized Cost		878
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		878
Corporate CMO and MBS
Investment securities held-to-maturity:
Amortized Cost	4,074
Gross Unrecognized Gains	0
Gross Unrecognized Losses	(180)
Fair Value	$ 3,894
Investment securities available-for-sale:
Amortized Cost		1,492
Gross Unrealized Gains		23
Gross Unrealized Losses		(18)
Fair Value		$ 1,497

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands		12 Months Ended
	Apr. 01, 2022 USD ($)	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Investments, Debt and Equity Securities [Abstract]
Net amortization of premiums and discounts		$ 100	$ 100
Debt Securities, Available-for-sale [Line Items]
Net amortization of premiums and discounts		$ 100	100
Available-for-sale securities transferred to held-to-maturity securities	$ 58,700
Unrealized loss on available-for-sale securities transferred to held-to-maturity securities	$ 2,300
Debt available for sale securities pledged as collateral			$ 17,300
Shareholder equity held by one issuer (as a percent)		10%	10%
Unrealized loss			$ 182
Securities sold		$ 0	0
Debt Securities, Held-to-Maturity, Accumulated Unrecognized Loss		$ 6,351
Debt Securities, Held-To-Maturity, Unrealized Loss Position, Number of Positions, Greater Than 12 Months | security		14
Debt Securities, Held-To-Maturity Carrying Value, Pledged As Collateral		$ 22,600
Bank Technology Fund | Other Assets
Debt Securities, Available-for-sale [Line Items]
Contractual obligation		6,000
Contribution to committed investments		1,300
Return of capital, received		100
Balance with SBIC included in other assets		1,300
Committed investments to be made in the future		4,700
Small Business Investment Company ("SBIC")
Debt Securities, Available-for-sale [Line Items]
Contractual obligation		1,000
Return of capital, received		100	100
Small Business Investment Company ("SBIC") | Other Assets
Debt Securities, Available-for-sale [Line Items]
Balance with SBIC included in other assets		$ 2,000	$ 2,000
Available for sale securities, excluding SBIC
Debt Securities, Available-for-sale [Line Items]
Number of securities in unrealized loss position | security			10
Debt Securities, Held-To-Maturity, Unrealized Loss Position, Number of Positions | security		98

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Amortized Cost
Due within one year	$ 0
Due between one year and five years	2,234
Due between five years and ten years	21,548
Due after ten years	280
Securities (CMO and MBS)	56,994
Total	81,056
Fair Value
Due within one year	0
Due between one year and five years	2,048
Due between five years and ten years	19,290
Due after ten years	262
Securities (CMO and MBS)	53,118
Fair Value	$ 74,718

INVESTMENT SECURITIES - Securit

INVESTMENT SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Less than 12 Months
Fair Value	$ 58,574
Unrecognized Losses	(4,543)
12 Months or Longer
Fair Value	15,339
Unrecognized Losses	(1,808)
Total
Fair Value	73,913
Gross Unrecognized Losses	(6,351)
Less than 12 Months
Fair Value		$ 17,937
Unrealized Losses		(164)
12 Months or Longer
Fair Value		521
Unrealized Losses		(18)
Total
Fair Value		18,458
Unrealized Losses		(182)
U.S. Treasury debt
Less than 12 Months
Fair Value	0
Unrecognized Losses	0
12 Months or Longer
Fair Value	234
Unrecognized Losses	(9)
Total
Fair Value	234
Gross Unrecognized Losses	(9)
Less than 12 Months
Fair Value		247
Unrealized Losses		(3)
12 Months or Longer
Fair Value		0
Unrealized Losses		0
Total
Fair Value		247
Unrealized Losses		(3)
Corporate bonds
Less than 12 Months
Fair Value	20,911
Unrecognized Losses	(2,436)
12 Months or Longer
Fair Value	455
Unrecognized Losses	(17)
Total
Fair Value	21,366
Gross Unrecognized Losses	(2,453)
Less than 12 Months
Fair Value		485
Unrealized Losses		(15)
12 Months or Longer
Fair Value		0
Unrealized Losses		0
Total
Fair Value		485
Unrealized Losses		(15)
GNMA mortgage-backed securities – residential
Less than 12 Months
Fair Value	22,371
Unrecognized Losses	(1,051)
12 Months or Longer
Fair Value	14,255
Unrecognized Losses	(1,749)
Total
Fair Value	36,626
Gross Unrecognized Losses	(2,800)
Less than 12 Months
Fair Value		17,205
Unrealized Losses		(146)
12 Months or Longer
Fair Value		0
Unrealized Losses		0
Total
Fair Value		17,205
Unrealized Losses		(146)
FNMA mortgage-backed securities – residential
Less than 12 Months
Fair Value	6,202
Unrecognized Losses	(506)
12 Months or Longer
Fair Value	0
Unrecognized Losses	0
Total
Fair Value	6,202
Gross Unrecognized Losses	(506)
Government CMO and MBS - commercial
Less than 12 Months
Fair Value	5,591
Unrecognized Losses	(403)
12 Months or Longer
Fair Value	0
Unrecognized Losses	0
Total
Fair Value	5,591
Gross Unrecognized Losses	(403)
Corporate CMO and MBS
Less than 12 Months
Fair Value	3,499
Unrecognized Losses	(147)
12 Months or Longer
Fair Value	395
Unrecognized Losses	(33)
Total
Fair Value	3,894
Gross Unrecognized Losses	$ (180)
Less than 12 Months
Fair Value		0
Unrealized Losses		0
12 Months or Longer
Fair Value		521
Unrealized Losses		(18)
Total
Fair Value		521
Unrealized Losses		$ (18)

CORRESPONDENT BANK STOCK (Detai

CORRESPONDENT BANK STOCK (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CORRESPONDENT BANK STOCK
Correspondent bank stock, at cost	$ 7,110	$ 2,584
FHLB
CORRESPONDENT BANK STOCK
Correspondent bank stock, at cost	7,078	1,625
BBW
CORRESPONDENT BANK STOCK
Correspondent bank stock, at cost	32	31
FRB
CORRESPONDENT BANK STOCK
Correspondent bank stock, at cost	$ 0	$ 928

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	$ 2,476,135	$ 1,954,168
Deferred fees and unamortized premiums/(unaccreted discounts), net	(6,722)	(5,031)
Allowance for loan losses	(17,183)	(13,732)
Loans, net	2,452,230	1,935,405
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	165,670	261,190
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	49,954	34,758
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	288,497	178,716
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	898,154	580,872
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	496,776	482,622
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	216,056	212,426
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	361,028	203,584
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	7,100	46,800
MSLP loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment	$ 6,600	$ 6,800

LOANS AND THE ALLOWANCE FOR L_4

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 2,476,135	$ 1,954,168
Loans, net	2,452,230	1,935,405
Recorded investments	3,100	4,300
Additional funds to loans classified as TDRs	$ 0	$ 0
Number of loans classified as TDRs | loan	0	3
Modified loan maturity period	1 year
Interest only payment period for modified loans		6 months
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 0	$ 0
COVID-19
Financing Receivable, Allowance for Credit Loss [Line Items]
Delinquent over period	30 days
Payments period	2 years
Number of loans modified | loan	49
Outstanding balance of modified loans	$ 78,400
Number of loans in deferral | loan	14
Loans in deferral, amount	$ 3,300
Loans modified for temporary payment, period	180 days
Consumer and Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 49,954	34,758
Loans held for investment, unpaid principal balance	23,400
PPP Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	7,100	46,800
PPP Loans | Cash, Securities and Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 7,100	$ 46,800
Percent of loans on total loan segment	4.30%	17.90%
MSLP loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 6,600	$ 6,800
Percent of loans on total loan segment	1.80%	3.30%
MSLP loan | COVID-19
Financing Receivable, Allowance for Credit Loss [Line Items]
Number of loans | loan	5	5
Loans, net	$ 6,600	$ 6,800
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 361,028	$ 203,584
Number of loans, 90 days delinquent and accruing interest | loan	1	1
Small Mortgage Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investments		$ 100
Commercial and Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investments		1,200
Commercial Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Recorded investments		700
Simmons Bank
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held for investment	$ 234,700	$ 356,700

LOANS AND THE ALLOWANCE FOR L_5

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Aging analysis of recorded investments by class (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	$ 24,865	$ 12,329
Current	2,451,270	1,941,839
Total Recorded Investment	2,476,135	1,954,168
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	11,767	7,573
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	11,430	2,548
90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,668	2,208
Cash, Securities and Other
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	2,278	751
Current	163,392	260,439
Total Recorded Investment	165,670	261,190
Cash, Securities and Other | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,735	745
Cash, Securities and Other | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	539
Cash, Securities and Other | 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	4	6
Consumer and Other
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,308	456
Current	48,646	34,302
Total Recorded Investment	49,954	34,758
Consumer and Other | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	996	454
Consumer and Other | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	167
Consumer and Other | 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	145	2
Construction and Development
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	201	2,758
Current	288,296	175,958
Total Recorded Investment	288,497	178,716
Construction and Development | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due		2,758
Construction and Development | 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	201
1-4 Family Residential
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,747	1,449
Current	896,407	579,423
Total Recorded Investment	898,154	580,872
1-4 Family Residential | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,747	1,449
Non-Owner Occupied CRE
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,073	2,548
Current	495,703	480,074
Total Recorded Investment	496,776	482,622
Non-Owner Occupied CRE | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,073
Non-Owner Occupied CRE | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due		2,548
Owner Occupied CRE
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,165	1,419
Current	214,891	211,007
Total Recorded Investment	216,056	212,426
Owner Occupied CRE | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	1,165	1,419
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	17,093	2,948
Current	343,935	200,636
Total Recorded Investment	361,028	203,584
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	5,051	748
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	10,724
Commercial and Industrial | 90 or More Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Past Due	$ 1,318	$ 2,200

LOANS AND THE ALLOWANCE FOR L_6

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in non-accrual loans by class (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 12,349	$ 4,262
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	4	6
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	146	2
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	201	0
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	0	75
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	1,165	1,241
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 10,833	$ 2,938

LOANS AND THE ALLOWANCE FOR L_7

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of unpaid principal balance of loans classified as TDRs (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	$ 12,203	$ 4,262
Allowance for loan losses associated with TDR		(1,751)
Net recorded investment	3,120	2,564
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	4	6
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	0	75
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	1,165	1,241
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	10,833	2,938
Accruing | Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs	0	55
Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs	3,120	4,315
Non-accrual | Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	4	6
Non-accrual | 1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs		75
Non-accrual | Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs	1,165	1,241
Non-accrual | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total recorded investment	$ 1,951	$ 2,938

LOANS AND THE ALLOWANCE FOR L_8

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance		$ 2,192
Total Recorded Investment With No Allowance	$ 12,203	2,070
Total recorded investment	12,203	4,262
Unpaid Contractual Principal Balance with a valuation Allowance		2,192
Unpaid Contractual Principal Balance with no related valuation Allowance	12,203	2,070
Unpaid Contractual Principal Balance	12,203	4,262
Allowance for Loan Losses		1,753
Average Recorded Investment with Allowance	1	2,415
Average Recorded Investment with No Allowance	5,640	485
Average Recorded Investment	5,641	2,900
Interest Income Recognized with Allowance		21
Interest Income Recognized with No Allowance		313
Interest Income Recognized		334
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	4	6
Total recorded investment	4	6
Unpaid Contractual Principal Balance with no related valuation Allowance	4	6
Unpaid Contractual Principal Balance	4	6
Average Recorded Investment with Allowance		2
Average Recorded Investment with No Allowance	4	17
Average Recorded Investment	4	19
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance		2
Total recorded investment		2
Unpaid Contractual Principal Balance with a valuation Allowance		2
Unpaid Contractual Principal Balance		2
Allowance for Loan Losses		2
Average Recorded Investment with Allowance	1
Average Recorded Investment	1
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	201
Total recorded investment	201
Unpaid Contractual Principal Balance with no related valuation Allowance	201
Unpaid Contractual Principal Balance	201
Average Recorded Investment with No Allowance	81
Average Recorded Investment	81
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	1,165	1,241
Total recorded investment	1,165	1,241
Unpaid Contractual Principal Balance with no related valuation Allowance	1,165	1,241
Unpaid Contractual Principal Balance	1,165	1,241
Average Recorded Investment with No Allowance	1,201	248
Average Recorded Investment	1,201	248
Interest Income Recognized with No Allowance		51
Interest Income Recognized		51
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance		2,190
Total Recorded Investment With No Allowance	10,833	748
Total recorded investment	10,833	2,938
Unpaid Contractual Principal Balance with a valuation Allowance		2,190
Unpaid Contractual Principal Balance with no related valuation Allowance	10,833	748
Unpaid Contractual Principal Balance	10,833	2,938
Allowance for Loan Losses		1,751
Average Recorded Investment with Allowance		2,413
Average Recorded Investment with No Allowance	4,297	205
Average Recorded Investment	4,297	2,618
Interest Income Recognized with Allowance		21
Interest Income Recognized with No Allowance		262
Interest Income Recognized		283
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	0	75
Total recorded investment	0	75
Unpaid Contractual Principal Balance with no related valuation Allowance	0	75
Unpaid Contractual Principal Balance	0	75
Average Recorded Investment with No Allowance	57	15
Average Recorded Investment	$ 57	$ 15

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 13,732	$ 12,539
(Recovery of)/provision for loan losses	3,682	1,230
Charge-offs	(334)	(44)
Recoveries	103	7
Ending balance	17,183	13,732
Individually evaluated		1,753
Collectively evaluated	17,183	11,979
Loans individually evaluated	12,203	4,262
Loans collectively evaluated	2,440,517	1,949,906
Loans measured at fair value	(34,149)	(29,857)
Total loans held for investment	2,476,135	1,954,168
Cash, Securities and Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,598	2,439
(Recovery of)/provision for loan losses	(399)	(841)
Charge-offs	(1)
Ending balance	1,198	1,598
Collectively evaluated	1,198	1,598
Loans individually evaluated	4	6
Loans collectively evaluated	165,666	261,184
Total loans held for investment	165,670	261,190
Consumer and Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	266	140
(Recovery of)/provision for loan losses	84	163
Charge-offs	(262)	(44)
Recoveries	103	7
Ending balance	191	266
Individually evaluated		2
Collectively evaluated	191	264
Loans individually evaluated		2
Loans collectively evaluated	26,539	34,756
Loans measured at fair value	23,415
Total loans held for investment	49,954	34,758
Construction and Development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,092	932
(Recovery of)/provision for loan losses	933	160
Ending balance	2,025	1,092
Collectively evaluated	2,025	1,092
Loans individually evaluated	201
Loans collectively evaluated	288,296	178,716
Total loans held for investment	288,497	178,716
1-4 Family Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,553	3,233
(Recovery of)/provision for loan losses	2,756	320
Ending balance	6,309	3,553
Collectively evaluated	6,309	3,553
Loans individually evaluated	0	75
Loans collectively evaluated	898,154	580,797
Total loans held for investment	898,154	580,872
Non-Owner Occupied CRE
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,952	2,004
(Recovery of)/provision for loan losses	538	948
Ending balance	3,490	2,952
Collectively evaluated	3,490	2,952
Loans collectively evaluated	496,776	482,622
Total loans held for investment	496,776	482,622
Owner Occupied CRE
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,292	1,159
(Recovery of)/provision for loan losses	218	133
Ending balance	1,510	1,292
Collectively evaluated	1,510	1,292
Loans individually evaluated	1,165	1,241
Loans collectively evaluated	214,891	211,185
Total loans held for investment	216,056	212,426
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,979	2,632
(Recovery of)/provision for loan losses	(448)	347
Charge-offs	(71)
Ending balance	2,460	2,979
Individually evaluated		1,751
Collectively evaluated	2,460	1,228
Loans individually evaluated	10,833	2,938
Loans collectively evaluated	350,195	200,646
Total loans held for investment	361,028	$ 203,584
Loan Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Loans measured at fair value	$ 23,415

LOANS AND THE ALLOWANCE FOR _10

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in company's loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	$ 2,476,135	$ 1,954,168
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	2,438,125	1,938,462
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	2,392	8,875
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	12,203	6,831
Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	23,415
Cash, Securities and Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	165,670	261,190
Cash, Securities and Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	165,666	261,184
Cash, Securities and Other | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	4	6
Consumer and Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	49,954	34,758
Consumer and Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	26,539	34,756
Consumer and Other | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment		2
Consumer and Other | Not Rated
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	23,415
Construction and Development
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	288,497	178,716
Construction and Development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	288,296	176,194
Construction and Development | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment		2,522
Construction and Development | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	201
1-4 Family Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	898,154	580,872
1-4 Family Residential | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	898,154	580,797
1-4 Family Residential | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment		75
Non-Owner Occupied CRE
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	496,776	482,622
Non-Owner Occupied CRE | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	496,776	476,670
Non-Owner Occupied CRE | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment		5,952
Owner Occupied CRE
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	216,056	212,426
Owner Occupied CRE | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	214,891	210,493
Owner Occupied CRE | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	1,165	1,933
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	361,028	203,584
Commercial and Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	347,803	198,368
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	2,392	401
Commercial and Industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans held for investment	$ 10,833	$ 4,815

PREMISES AND EQUIPMENT, NET - C

PREMISES AND EQUIPMENT, NET - Cost and accumulated depreciation of premises and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
PREMISES AND EQUIPMENT, NET
Gross premise and equipment	$ 35,864	$ 34,778
Less: accumulated depreciation	(10,746)	(10,802)
Premises and equipment, net	25,118	23,976
Depreciation	1,800	1,200
Building and building improvements
PREMISES AND EQUIPMENT, NET
Gross premise and equipment	12,190	12,190
Leasehold improvements, including artwork
PREMISES AND EQUIPMENT, NET
Gross premise and equipment	12,879	11,464
Land
PREMISES AND EQUIPMENT, NET
Gross premise and equipment	4,980	4,980
Equipment and software
PREMISES AND EQUIPMENT, NET
Gross premise and equipment	$ 5,815	$ 6,144

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Beginning balance	$ 30,588	$ 24,191
Acquisition activity	(188)	6,397
Ending balance	$ 30,400	$ 30,588

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Acquisition activity		$ (188)	$ 6,397
Goodwill		30,400	30,588	$ 24,191
Amortization of other intangible assets		$ 308	17
Teton Financial Services
Goodwill [Line Items]
Acquisition activity			6,400
Goodwill, adjustments	$ (200)
Goodwill			$ 6,209

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, intangible assets and related accumulated amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Other intangibles	$ 5,926	$ 5,857
Less: accumulated amortization on other intangibles	(4,222)	(4,543)
Finite-Lived Intangible Assets:
2023	250
2024	226
2025	206
2026	193
2027	183
Thereafter	646
Other intangible assets, net	$ 1,704	$ 1,314

LEASES - Leases balance sheet l

LEASES - Leases balance sheet location (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating lease right-of-use assets	$ 8,602	$ 10,720
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Operating lease liabilities	$ 11,163	$ 13,863
Weighted-Average Remaining Lease Term	4 years 10 months 6 days	5 years 3 months 3 days
Weighted-Average Discount Rate	2.63%	2.67%

LEASES - Leases costs (Details)

LEASES - Leases costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease cost	$ 3,151	$ 3,040
Variable lease cost	2,104	1,756
Lease costs, net	$ 5,255	$ 4,796
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net income available to common shareholders

LEASES - Lease maturity (Detail

LEASES - Lease maturity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 3,228
2024	3,083
2025	2,141
2026	810
2027	734
Thereafter	1,752
Total future minimum lease payments	11,748
Less: imputed interest	(585)
Present value of net future minimum lease payments	11,163	$ 13,863
Lease income	$ 300

LEASES - Expected amortization

LEASES - Expected amortization expense (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 242
2024	199
2025	0
2026	0
2027	0
Thereafter	0
Total undiscounted operating lease income	$ 441

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Money market deposit accounts	$ 1,336,092	$ 1,056,669
Time deposits	224,090	170,491
Negotiable order of withdrawal accounts	234,778	309,940
Savings accounts	27,177	32,299
Total interest-bearing deposits	1,822,137	1,569,399
Estimated aggregate time deposits of $250 or greater	77,972	75,747
Deposits acquired via acquisitions		$ 379,200
Overdrafts balances classified as loans	$ 200

DEPOSITS - Time deposits (Detai

DEPOSITS - Time deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Time Deposits, Fiscal Year Maturity [Abstract]
2023	$ 181,036
2024	32,892
2025	2,998
2026	2,121
2027	5,043
Thereafter	0
Total	$ 224,090	$ 170,491

BORROWINGS - Narrative (Details

BORROWINGS - Narrative (Details) $ in Thousands						12 Months Ended
	Dec. 05, 2022 USD ($)	Jan. 01, 2022 USD ($)	Aug. 31, 2021 USD ($)	Nov. 25, 2020 USD ($)	Mar. 17, 2020 USD ($)	Dec. 31, 2022 USD ($) fund	Dec. 31, 2021 USD ($)
BORROWINGS
Borrowings from FHLB						$ 141,498	$ 15,000
Number of unsecured federal funds lines of credit | fund						2
Amount outstanding						$ 0	0
Repayments of debt		$ 6,600
Redemption percentage		100%
Interest expenses						$ 1,400	1,500
PPPLF
BORROWINGS
Interest bearing rate (as a percet)						35%
Face amount						$ 5,400	23,600
PPPLF | Minimum
BORROWINGS
Debt term (in years)						2 years
PPPLF | Maximum
BORROWINGS
Debt term (in years)						5 years
Federal Funds Lines of Credit One
BORROWINGS
Maximum borrowing capacity						$ 10,000
Federal Funds Lines of Credit Two
BORROWINGS
Maximum borrowing capacity						19,000
Subordinated Notes 2022
BORROWINGS
Face amount	$ 20,000
Issuance costs	$ 500
Net balance						19,500
Interest rate (as a percent)	7%
Basis spread (as a percent)	328%
Subordinated Notes
BORROWINGS
Face amount			$ 15,000
Issuance costs			$ 300
Net balance						14,800
Interest rate (as a percent)			3.25%
Basis spread (as a percent)			258%
Subordinated Notes November 2020
BORROWINGS
Face amount				$ 10,000
Issuance costs				$ 200
Net balance						9,900
Interest rate (as a percent)				4.25%
Subordinated Notes November 2020 | 90 Day London Interbank Offered Rate
BORROWINGS
Basis spread (as a percent)				4.02%
Subordinated Notes March 2020
BORROWINGS
Face amount					$ 8,000
Issuance costs					$ 100
Net balance						7,900
Interest rate (as a percent)					5.125%
Subordinated Notes March 2020 | 90 Day London Interbank Offered Rate
BORROWINGS
Basis spread (as a percent)					4.50%
FHLB
BORROWINGS
Amount of collateral pledged						1,260,000	$ 771,400
Borrowings from FHLB						$ 751,200

BORROWINGS - Schedule of borrow

BORROWINGS - Schedule of borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
BORROWINGS
Borrowings from FHLB	$ 141,498	$ 15,000
April 22, 2022
BORROWINGS
Interest rate (as a percent)	0.37%
Borrowings from FHLB	$ 0	5,000
May 5, 2023
BORROWINGS
Interest rate (as a percent)	0.76%
Borrowings from FHLB	$ 10,000	10,000
January 1, 2023
BORROWINGS
Interest rate (as a percent)	4.48%
Borrowings from FHLB	$ 131,498	$ 0

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Unused lines of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 211,285	$ 136,289
Standby letters of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	8,571	2,420
Commitments to make loans to sell-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	13,553	60,529
Commitments to make loans-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	20,895	16,256
Unused lines of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	601,202	442,035
Standby letters of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	16,737	20,940
Commitments to make loans-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 81,663	$ 14,920

SHAREHOLDERS EQUITY - Common st

SHAREHOLDERS EQUITY - Common stock (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 06, 2022	Dec. 31, 2021	Nov. 03, 2020
Class of Stock [Line Items]
Common Stock, par value (in dollars per share)	$ 0		$ 0
Maximum offering price		$ 100
Common Stock
Class of Stock [Line Items]
Common Stock, par value (in dollars per share)	$ 0
Number of votes per each share	one
Issuance of common stock for Teton Acquisition (in shares)	0
Common Stock | Teton Financial Services
Class of Stock [Line Items]
Common stock issued as part of merger	1,337,791
Common Stock | 2020 Repurchase Plan
Class of Stock [Line Items]
Common Stock, par value (in dollars per share)				$ 0
Authorized share repurchase (in shares)			0	400,000

SHAREHOLDERS EQUITY - Restricte

SHAREHOLDERS EQUITY - Restricted stock awards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense	$ 0
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)			105,264
Value of awards			$ 3,000,000
Weighted-average grant date fair value (in dollars per share)	$ 28.50	$ 28.50
Recognized compensation expense	$ 200,000	$ 300,000
Number of stock awards vested (in shares)	10,527	10,526
Employee service period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)			52,632
Value of awards			$ 1,500,000
Vesting period (in years)			5 years
Performance of mortgage division
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)			52,632
Value of awards			$ 1,500,000

SHAREHOLDERS EQUITY - Stock bas

SHAREHOLDERS EQUITY - Stock based compensation plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued (in shares)		58,884
Stock surrendered (in shares)	28,158	20,693
Stock surrendered to cover employee withholding taxes	$ 900,000	$ 500,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 0
Options fully vested / exercisable at end of period (in shares)	184,165	308,574
Exercise price low range (in dollars per share)	$ 20
Exercise price high range (in dollars per share)	$ 27
Expiry period	10 years
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued (in shares)	67,860
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance (in shares)	329,035

SHAREHOLDERS EQUITY - Stock opt

SHAREHOLDERS EQUITY - Stock options activity (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Options
Outstanding at beginning of year (in shares)	308,574
Exercised (in shares)	(8,309)
Forfeited or expired (in shares)	(116,100)
Outstanding at end of period (in shares)	184,165	308,574
Options fully vested / exercisable at end of period (in shares)	184,165	308,574
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 29.21
Exercised (in dollars per share)	21.50
Forfeited or expired (in dollars per share)	40
Outstanding at end of year (in dollars per share)	22.76	$ 29.21
Options fully vested / exercisable (in dollars per share)	$ 22.76
Weighted Average Remaining Contractual Term
Outstanding at end of year	2 years 1 month 6 days
Options fully vested / exercisable	2 years 1 month 6 days

SHAREHOLDERS EQUITY - Share awa

SHAREHOLDERS EQUITY - Share awards (Details)	12 Months Ended
	Dec. 31, 2022 shares
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	249,821
Granted (in shares)	157,682
Vested (in shares)	(83,918)
Forfeited (in shares)	(37,590)
Outstanding at end of year (in shares)	285,995
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	183,483
Granted (in shares)	92,697
Vested (in shares)	(12,100)
Forfeited (in shares)	(28,568)
Outstanding at end of year (in shares)	235,512
Market Performance Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	13,746
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	(13,746)
Outstanding at end of year (in shares)	0

SHAREHOLDERS EQUITY - Time vest

SHAREHOLDERS EQUITY - Time vesting units (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	157,682
Stock-based compensation expense	$ 1,700,000
Unrecognized compensation expense	$ 5,800,000
Unrecognized compensation expense recognition period (in years)	1 year 10 months 24 days
Time Vesting Units | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	5 years
Time Vesting Units | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	157,682
Vesting Percentage	20%

SHAREHOLDERS EQUITY - Financial

SHAREHOLDERS EQUITY - Financial performance units (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	92,697
Financial Performance Units Granted Prior to May 1, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 110,000
Financial Performance Units Granted Prior to May 1, 2019 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage	0%
Financial Performance Units Granted Prior to May 1, 2019 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage	150%
Financial Performance Units Granted From May 1, 2019 Through April 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	150%
Maximum Issuable Shares at Current Threshold (in shares)	69,306
Unrecognized Compensation Expense	$ 145,000
Weighted-Average Life	1 year
Stock-based compensation expense	$ 122,000	216,000
Financial Performance Units Granted From May 01, 2020 Through December 31 2020, Excluding November 18, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	150%
Maximum Issuable Shares at Current Threshold (in shares)	74,364
Unrecognized Compensation Expense	$ 267,000
Weighted-Average Life	2 years
Stock-based compensation expense	$ 168,000	208,000
Financial Performance Units Granted on November 18, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	115%
Maximum Issuable Shares at Current Threshold (in shares)	24,161
Unrecognized Compensation Expense	$ 238,000
Weighted-Average Life	1 year 10 months 24 days
Remainder threshold awards	50%
Stock-based compensation expense	$ 41,000	$ 125,000
Financial Performance Units Granted From May 3 2021 Through August 11,2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	150%
Maximum Issuable Shares at Current Threshold (in shares)	53,882
Unrecognized Compensation Expense	$ 604,000
Weighted-Average Life	3 years
Granted (in shares)		41,743
Stock-based compensation expense	$ 273,000	$ 221,000
Financial Performance Units Granted On May 2, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	0%
Maximum Issuable Shares at Current Threshold (in shares)	0
Unrecognized Compensation Expense	$ 0
Weighted-Average Life	4 years
Granted (in shares)	65,425
Financial Performance Units Granted On August 4, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold Accrual	100%
Maximum Issuable Shares at Current Threshold (in shares)	18,181
Unrecognized Compensation Expense	$ 680,000
Weighted-Average Life	4 years
Granted (in shares)	27,272
Stock-based compensation expense	$ 47,000

SHAREHOLDERS EQUITY - Stock b_2

SHAREHOLDERS EQUITY - Stock based compensation - market performance units (Details) $ in Millions	Dec. 31, 2022 USD ($)
Market Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0

EARNINGS PER COMMON SHARE - Com

EARNINGS PER COMMON SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net income available to common shareholders	$ 21,698	$ 20,610
Denominator:
Basic weighted average shares (in shares)	9,461,349	7,980,491
Earnings per common share - basic (in dollars per share)	$ 2.29	$ 2.58
Numerator:
Net income available for common shareholders	$ 21,698	$ 20,610
Denominator:
Basic weighted average shares (in shares)	9,461,349	7,980,491
Diluted effect of common stock equivalents:
Total diluted effect of common stock equivalents (in shares)	252,274	254,687
Diluted weighted average shares (in shares)	9,713,623	8,235,178
Earnings per common share - diluted (in dollars per share)	$ 2.23	$ 2.50
Stock options
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	42,944	30,661
Time Vesting Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	117,774	139,829
Financial Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	88,143	70,437
Market Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	3,413	13,760

EARNINGS PER COMMON SHARE - Ant

EARNINGS PER COMMON SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	109,698	210,476
Stock options
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	0	168,872
Time Vesting Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	86,145	996
Financial Performance Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	23,553	32,713
Restricted Stock Awards
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	0	7,895

INCOME TAXES - Income tax (bene

INCOME TAXES - Income tax (benefit) expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 5,637	$ 6,228
State and local	936	1,110
Total current tax expense	6,573	7,338
Deferred:
Federal	536	(734)
State and local	(55)	66
Valuation allowance	76	0
Total deferred tax expense (benefit)	557	(668)
Income tax expense	$ 7,130	$ 6,670

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Effective income tax rate (as a percent)	21%	21%
Income tax expense computed at 21% statutory rate	$ 6,054	$ 5,729
Permanent differences	101	169
State taxes, net of federal expense	1,005	1,018
LIHTC investment tax credit	(404)	(386)
LIHTC investment proportional amortization	378	539
Valuation allowance	76	0
Other, net	(80)	(399)
Income tax expense	$ 7,130	$ 6,670

INCOME TAXES - Deferred tax ite

INCOME TAXES - Deferred tax items (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 472	$ 395
Allowance for loan losses	4,165	3,385
Acquired loans fair market value adjustments	826	976
Assets acquired at fair value	0	226
Loans accounted for under the fair value option	146	0
Deferred rent	621	753
Stock-based compensation	1,705	1,800
Provision on other real estate owned	0	463
Other intangible assets	254	279
Unrealized losses on securities	495	0
Accrued bonuses	0	868
Loan fees	459	0
Accrued expenses	0	821
Other	1,574	382
Total deferred tax assets	10,717	10,348
Deferred tax liabilities:
Goodwill	(1,087)	(1,137)
Depreciation	(1,864)	(1,636)
Unrealized gain on securities	0	(73)
Loan fees	0	(155)
Acquired loans fair market value adjustments	(215)	0
Other	(189)	(130)
Total deferred tax liabilities	(3,355)	(3,131)
Net operating loss valuation allowance	(448)	(372)
Net deferred tax asset	$ 6,914	$ 6,845

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Tax Credit Carryforward [Line Items]
Deferred income tax expense	$ 7,130	$ 6,670
Unrecognized tax benefits	$ 0
Unrecognized tax benefits (in years)	12 months
California Franchise Tax Board
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards	$ 5,500	$ 5,500
Net operating loss carryforwards valuation allowance	5,200
Deferred income tax expense	$ 400

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Maximum employee contribution (as a percent)	100%
Matching contributions to plan	$ 1	$ 1
Expenses attributable to plan	$ 0.1	$ 0.1

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of related party loan activity
Balance, beginning of year	$ 12,833,000	$ 14,321,000
Funded loans	15,079,000	11,294,000
Payments collected	(11,053,000)	(12,782,000)
Balance, end of period	16,859,000	12,833,000
Deposits from related parties	36,900,000	51,000,000
Trust and investment management fees	18,943,000	20,200,000
Related party, assets under management	123,500,000	103,100,000
Executive Officer Or Director
Summary of related party loan activity
Delinquent or nonperforming loans	0	0
Board Member
Summary of related party loan activity
Rental income	200,000	200,000
Board of Directors Chairman
Summary of related party loan activity
Trust and investment management fees	$ 100,000	$ 100,000

FAIR VALUE - Summary of assets

FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Summary of assets measured on a recurring and nonrecurring basis
Loans held for sale	$ 1,965	$ 0
Loans held at fair value	23,321	0
Mortgage loans held for sale, at fair value	8,839	30,620
Fair Value, Recurring
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		55,562
Loans held for sale	1,965
Loans held at fair value	23,321
Equity securities	749	1,198
Guarantee asset	143	237
Equity warrants	825	160
Mortgage loans held for sale, at fair value	8,839	30,620
Fair Value, Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		247
Fair Value, Recurring | U.S. Government Agency
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		3,522
Fair Value, Recurring | Corporate bonds
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		8,325
Fair Value, Recurring | Government CMO and MBS - commercial
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		878
Fair Value, Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		1,497
Fair Value, Recurring | IRLC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	229	1,473
Fair Value, Recurring | FSC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	46	(74)
Fair Value, Recurring | GNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		26,650
Fair Value, Recurring | FNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		14,443
Level 1
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		0
Mortgage loans held for sale, at fair value		0
Level 1 | Fair Value, Recurring
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		247
Loans held for sale	1,965
Loans held at fair value	0
Derivative asset, fair value	0
Equity securities	627	709
Guarantee asset	0	0
Equity warrants	0	0
Mortgage loans held for sale, at fair value	0
Level 1 | Fair Value, Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		247
Level 1 | Fair Value, Recurring | U.S. Government Agency
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 1 | Fair Value, Recurring | Corporate bonds
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 1 | Fair Value, Recurring | Government CMO and MBS - commercial
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 1 | Fair Value, Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 1 | Fair Value, Recurring | IRLC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		0
Level 1 | Fair Value, Recurring | GNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 1 | Fair Value, Recurring | FNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 2
Summary of assets measured on a recurring and nonrecurring basis
Equity securities		489
Level 2 | Fair Value, Recurring
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		53,202
Loans held for sale	0
Loans held at fair value	0
Equity securities	122
Guarantee asset	0	0
Equity warrants	0	0
Mortgage loans held for sale, at fair value	8,839	30,620
Level 2 | Fair Value, Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 2 | Fair Value, Recurring | U.S. Government Agency
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		3,522
Level 2 | Fair Value, Recurring | Corporate bonds
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		6,212
Level 2 | Fair Value, Recurring | Government CMO and MBS - commercial
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		878
Level 2 | Fair Value, Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		1,497
Level 2 | Fair Value, Recurring | IRLC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	0	0
Level 2 | Fair Value, Recurring | FSC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	46	(65)
Level 2 | Fair Value, Recurring | GNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		26,650
Level 2 | Fair Value, Recurring | FNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		14,443
Level 3
Summary of assets measured on a recurring and nonrecurring basis
Equity securities		0
Mortgage loans held for sale, at fair value		0
Level 3 | Fair Value, Recurring
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		2,113
Loans held for sale	0
Loans held at fair value	23,321
Equity securities	0
Guarantee asset	143	237
Equity warrants	825	160
Mortgage loans held for sale, at fair value	0
Level 3 | Fair Value, Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 3 | Fair Value, Recurring | U.S. Government Agency
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 3 | Fair Value, Recurring | Corporate bonds
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		2,113
Level 3 | Fair Value, Recurring | Government CMO and MBS - commercial
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 3 | Fair Value, Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 3 | Fair Value, Recurring | IRLC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	229	1,473
Level 3 | Fair Value, Recurring | FSC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 0	(9)
Level 3 | Fair Value, Recurring | GNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Level 3 | Fair Value, Recurring | FNMA mortgage-backed securities - residential
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		$ 0

FAIR VALUE - Narrative (Details

FAIR VALUE - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Fair Value Disclosures [Abstract]
Other real estate owned, gross	$ 400,000
Fair value transfers between levels	0	$ 0
Transfer of loans held for investment to loans held for sale	2,000,000
Number of nonaccrual loans | loan		0
Non-accrual loans	12,349,000	$ 4,262,000
Summary of assets measured on a recurring and nonrecurring basis
Non-accrual loans	$ 12,349,000	$ 4,262,000
Number of nonaccrual loans | loan		0
Fair Value Option
Fair Value Disclosures [Abstract]
Number of nonaccrual loans | loan	145
Non-accrual loans	$ 100,000
Summary of assets measured on a recurring and nonrecurring basis
Non-accrual loans	$ 100,000
Number of nonaccrual loans | loan	145

FAIR VALUE - Summary of asset_2

FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net income available to common shareholders	Net income available to common shareholders
Corporate bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,113	$ 0
Loans acquired	4,000	2,113
Unrealized gains, net	102
Transfer to held-to-maturity	(6,215)
Ending balance	0	2,113
Loans Held at Fair Value
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0	0
Loans acquired	35,616
Gains (losses) in net income, net	(94)
Settlements	(12,201)
Ending balance	23,321	0
FSC
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	(9)	(89)
Loans acquired	9	(182)
Gains (losses) in net income, net		262
Ending balance	0	(9)
Guarantee Asset
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	237	232
Loans originated	1	2
Gains (losses) in net income, net	(75)	32
Settlements	(20)	(29)
Ending balance	143	237
IRLC
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	1,473	9,841
Loans acquired	3,213	19,526
Originations	(5,048)	(25,804)
Gains (losses) in net income, net	591	(2,090)
Ending balance	229	1,473
Equity Warrants
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	160	0
Loans acquired	344	160
Gains (losses) in net income, net	321
Ending balance	$ 825	$ 160

FAIR VALUE - Summary of informa

FAIR VALUE - Summary of information about the fair value carrying amount and unpaid principal outstanding of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Total Loans
Fair Value Carrying Amount	$ 34,125	$ 30,620
Unpaid Principal Balance	34,149	29,857
Difference	(24)	763
Non Accruals
Fair Value Carrying Amount	139
Unpaid Principal Balance	140
Difference	(1)
90 Days or More Past Due
Fair Value Carrying Amount	139
Unpaid Principal Balance	140
Difference	(1)
Mortgage loans held for sale
Total Loans
Fair Value Carrying Amount	8,839	30,620
Unpaid Principal Balance	8,750	29,857
Difference	89	$ 763
Loans held for sale
Total Loans
Fair Value Carrying Amount	1,965
Unpaid Principal Balance	1,984
Difference	(19)
Loans held for investment
Total Loans
Fair Value Carrying Amount	23,321
Unpaid Principal Balance	23,415
Difference	(94)
Non Accruals
Fair Value Carrying Amount	139
Unpaid Principal Balance	140
Difference	(1)
90 Days or More Past Due
Fair Value Carrying Amount	139
Unpaid Principal Balance	140
Difference	$ (1)

FAIR VALUE - Summary of changes

FAIR VALUE - Summary of changes in fair value of loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]
Changes in fair value of loans	$ (787)	$ 4,712
Mortgage loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Changes in fair value of loans	(673)	4,712
Loans held for sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Changes in fair value of loans	(20)	0
Loans held for investment
Fair Value, Option, Quantitative Disclosures [Line Items]
Changes in fair value of loans	$ (94)	$ 0

FAIR VALUE - Rollforward of cha

FAIR VALUE - Rollforward of changes in fair value of loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loans held for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0	$ 0
Loans transferred from held for investment	1,985	0
Fair value changes	(20)	0
Ending balance	1,965	0
Mortgage loans held for sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	30,620	161,843
Loans originated	439,682	1,425,713
Loans acquired	0	840
Fair value changes	(673)	(4,712)
Sales	(460,514)	(1,548,405)
Settlements	(276)	(4,659)
Ending balance	8,839	30,620
Loans held for investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0	0
Loans acquired	35,616	0
Fair value changes	(94)	0
Settlements	(12,201)	0
Ending balance	$ 23,321	$ 0

FAIR VALUE - Summary of asset_3

FAIR VALUE - Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	$ 23,321	$ 0
Impaired loans	3,120	2,564
Level 1
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		0
Fair Value, Recurring
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	23,321
Guarantee asset	143	237
Available-for-sale securities, at fair value		55,562
Fair Value, Recurring | Level 1
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	0
Guarantee asset	0	0
Derivative asset, fair value	0
Available-for-sale securities, at fair value		247
Fair Value, Recurring | Level 2
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	0
Guarantee asset	0	0
Available-for-sale securities, at fair value		53,202
Fair Value, Recurring | Level 3
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	23,321
Guarantee asset	143	237
Available-for-sale securities, at fair value		$ 2,113
Fair Value, Recurring | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Guarantee assets, measurement input		3%
Fair Value, Recurring | Discount rate
Summary of assets measured on a recurring and nonrecurring basis
Guarantee asset		$ 237
Fair Value, Recurring | Discount rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value	23,321
Guarantee asset	$ 143
Guarantee assets, measurement input	5%
Fair Value, Recurring | Prepayment rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Guarantee assets, measurement input	4%	18%
Fair Value, Recurring | Minimum | Discount rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value, measurement input	4%
Fair Value, Recurring | Maximum | Discount rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value, measurement input	18%
Fair Value, Recurring | Weighted Average | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Guarantee assets, measurement input		3%
Fair Value, Recurring | Weighted Average | Discount rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Loans held for investment at fair value, measurement input	(8.00%)
Guarantee assets, measurement input	5%
Fair Value, Recurring | Weighted Average | Prepayment rate | Level 3 | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Guarantee assets, measurement input	4%	(18.00%)
Fair Value, Recurring | IRLC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 229	$ 1,473
Fair Value, Recurring | IRLC | Level 1
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		0
Fair Value, Recurring | IRLC | Level 2
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	0	0
Fair Value, Recurring | IRLC | Level 3
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	229	1,473
Fair Value, Recurring | IRLC | Pull through
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		$ 1,473
Fair Value, Recurring | IRLC | Pull through | Level 3 | Best execution model
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 229
Fair Value, Recurring | IRLC | Minimum | Pull through | Level 3 | Best execution model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	0.73	71
Fair Value, Recurring | IRLC | Maximum | Pull through | Level 3 | Best execution model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	1	100
Fair Value, Recurring | IRLC | Weighted Average | Pull through | Level 3 | Best execution model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	(0.91)	88
Fair Value, Recurring | Equity Warrants | Volatility Risk-free interest rate Remaining life | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 825	$ 160
Fair Value, Recurring | Equity Warrants | Minimum | Volatility | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		0.24
Derivative assets, period (in years)		0 years
Fair Value, Recurring | Equity Warrants | Minimum | Volatility | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	0.312
Derivative assets, period (in years)	0 years
Fair Value, Recurring | Equity Warrants | Minimum | Volatility Risk-free interest rate Remaining life | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		0.0030
Fair Value, Recurring | Equity Warrants | Minimum | Volatility Risk-free interest rate Remaining life | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	0.0404
Fair Value, Recurring | Equity Warrants | Maximum | Volatility | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		0.37
Derivative assets, period (in years)		4 years
Fair Value, Recurring | Equity Warrants | Maximum | Volatility | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	0.447
Derivative assets, period (in years)	4 years
Fair Value, Recurring | Equity Warrants | Maximum | Volatility Risk-free interest rate Remaining life | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		0.0110
Fair Value, Recurring | Equity Warrants | Maximum | Volatility Risk-free interest rate Remaining life | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	0.0414
Fair Value, Recurring | Equity Warrants | Weighted Average | Volatility | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		(0.32)
Fair Value, Recurring | Equity Warrants | Weighted Average | Volatility | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	(0.348)
Fair Value, Recurring | Equity Warrants | Weighted Average | Volatility Risk-free interest rate Remaining life | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		(0.0097)
Fair Value, Recurring | Equity Warrants | Weighted Average | Volatility Risk-free interest rate Remaining life | Level 3 | Black-Scholes option pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input	(0.0405)
Fair Value, Recurring | Corporate bonds
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		$ 8,325
Fair Value, Recurring | Corporate bonds | Level 1
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		0
Fair Value, Recurring | Corporate bonds | Level 2
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		6,212
Fair Value, Recurring | Corporate bonds | Level 3
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale securities, at fair value		$ 2,113
Fair Value, Recurring | Corporate bonds | Discount rate | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale, measurement input		0.07
Fair Value, Recurring | Corporate bonds | Weighted Average | Discount rate | Discounted cash flow
Summary of assets measured on a recurring and nonrecurring basis
Available-for-sale, measurement input		(0.07)
Fair Value, Recurring | FSC
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 46	$ (74)
Fair Value, Recurring | FSC | Level 2
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	46	(65)
Fair Value, Recurring | FSC | Level 3
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value	$ 0	(9)
Fair Value, Recurring | FSC | Market Differential
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, fair value		$ (9)
Fair Value, Recurring | FSC | Minimum | Market Differential | Level 3 | Internal pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		14
Fair Value, Recurring | FSC | Maximum | Market Differential | Level 3 | Internal pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		2
Fair Value, Recurring | FSC | Weighted Average | Market Differential | Level 3 | Internal pricing model
Summary of assets measured on a recurring and nonrecurring basis
Derivative assets, measurement input		6
Fair Value, Nonrecurring | Commercial and Industrial
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans		$ 439
Fair Value, Nonrecurring | Level 1 | Commercial and Industrial
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans		0
Fair Value, Nonrecurring | Level 2 | Commercial and Industrial
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans		0
Fair Value, Nonrecurring | Level 3 | Commercial and Industrial
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans		$ 439
Fair Value, Nonrecurring | Minimum | Management discount for asset/property type | Level 3 | Commercial and Industrial | Sales comparison, Market approach - guideline transaction method
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans, measurement input		17%
Fair Value, Nonrecurring | Maximum | Management discount for asset/property type | Level 3 | Commercial and Industrial | Sales comparison, Market approach - guideline transaction method
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans, measurement input		45%
Fair Value, Nonrecurring | Weighted Average | Management discount for asset/property type | Level 3 | Commercial and Industrial | Sales comparison, Market approach - guideline transaction method
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans, measurement input		39%

FAIR VALUE - Summary of asset_4

FAIR VALUE - Summary of assets measured at level 3 fair value on recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Summary of assets measured on a recurring and nonrecurring basis
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 2,192
Allowance for loan losses	13,732	$ 17,183
Other real estate owned, gross		400
Net recorded investment	2,564	3,120
Level 3
Summary of assets measured on a recurring and nonrecurring basis
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,200
Allowance for loan losses	1,800	$ 0
Provision for loan losses	1,800
Commercial and Industrial | Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	439
Commercial and Industrial | Level 3 | Fair Value, Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Net recorded investment	$ 439

FAIR VALUE - Summary of carryin

FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 196,512	$ 386,983	$ 155,989
Held-to-maturity securities	74,718
Loans, net	2,452,230	1,935,405
Accrued interest receivable	10,445	7,151
Liabilities
Deposits	2,405,229	2,205,703
FHLB borrowings – fixed rate	146,886	38,629
Subordinated notes	52,132	39,031
Accrued interest payable	1,125	355
Carrying Amount
Assets
Cash and cash equivalents	196,512	386,983
Held-to-maturity securities	81,056
Loans, net	2,452,230	1,935,405
Accrued interest receivable	10,445	7,151
Liabilities
Deposits	2,405,229	2,205,703
FHLB borrowings – fixed rate	141,498	15,000
Federal Reserve borrowings – fixed rate	5,388	23,629
Accrued interest payable	1,125	355
2016 Subordinated notes - fixed-to-floating rate | Carrying Amount
Liabilities
Subordinated notes	52,132	39,031
Level 1 | Estimate of Fair Value Measurement
Assets
Cash and cash equivalents	196,512	386,983
Held-to-maturity securities	234
Accrued interest receivable	5	2
Liabilities
Deposits	2,181,139	2,035,212
Accrued interest payable		9
Level 2 | Estimate of Fair Value Measurement
Assets
Held-to-maturity securities	67,433
Accrued interest receivable	362	203
Liabilities
FHLB borrowings – fixed rate	141,867	14,990
Federal Reserve borrowings – fixed rate	5,388	23,629
Accrued interest payable	587	77
Level 3 | Estimate of Fair Value Measurement
Assets
Held-to-maturity securities	7,051
Loans, net	2,379,406	1,919,625
Accrued interest receivable	10,078	6,946
Liabilities
Deposits	228,868	172,240
Accrued interest payable	538	269
Level 3 | 2016 Subordinated notes - fixed-to-floating rate | Estimate of Fair Value Measurement
Liabilities
Subordinated notes	$ 60,384	$ 40,325

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement
Total interest and dividend income	$ 100,474	$ 62,011
Total interest expense	17,270	5,416
Provision for loan losses	3,682	1,230
Net interest income, after provision for loan losses	79,522	55,365
Non-interest income	28,412	40,043
Total income before non-interest expense	107,934	95,408
Depreciation and amortization expense	2,153	1,200
All other non-interest expense	76,953	66,928
Income before income taxes	28,828	27,280
Segment reporting
Goodwill	30,400	30,588	$ 24,191
Total assets	2,866,748	2,527,489
Wealth Management
Income Statement
Total interest and dividend income	100,474	62,011
Total interest expense	17,270	5,416
Provision for loan losses	3,682	1,230
Net interest income, after provision for loan losses	79,522	55,365
Non-interest income	23,094	23,924
Total income before non-interest expense	102,616	79,289
Depreciation and amortization expense	2,111	1,147
All other non-interest expense	69,366	56,764
Income before income taxes	31,139	21,378
Segment reporting
Goodwill	30,400	30,588
Total assets	2,856,653	2,494,207
Mortgage
Income Statement
Non-interest income	5,318	16,119
Total income before non-interest expense	5,318	16,119
Depreciation and amortization expense	42	53
All other non-interest expense	7,587	10,164
Income before income taxes	(2,311)	5,902
Segment reporting
Total assets	$ 10,095	$ 33,282

LOW-INCOME HOUSING TAX CREDIT_2

LOW-INCOME HOUSING TAX CREDIT INVESTMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Investments [Line Items]
Unfunded commitments	$ 0	$ 0.2
Tax credits and other benefits	0.4	0.5
Impairment losses	0	0
Other Assets
Schedule of Investments [Line Items]
Investment balance	2.4	2.6
Income Tax Expense
Schedule of Investments [Line Items]
Amortization expense	$ 0.4	$ 0.5

CONDENSED FINANCIAL STATEMENT_3

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed balance sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 196,512	$ 386,983	$ 155,989
Loans, net	2,452,230	1,935,405
Other assets	21,457	23,327
Total assets	2,866,748	2,527,489
Liabilities
Subordinated notes	52,132	39,031
Total liabilities	2,625,884	2,308,448
Shareholders' Equity
Total shareholders’ equity	240,864	219,041	154,962
Total liabilities and shareholders’ equity	2,866,748	2,527,489
First Western Financial, Inc
Assets
Cash and cash equivalents	26,372	18,124	$ 14,270
Investment in subsidiaries	263,362	233,417
Loans, net	0	1,978
Other assets	3,723	3,611
Total assets	293,457	257,130
Liabilities
Subordinated notes	52,132	39,031
Other liabilities	461	(942)
Total liabilities	52,593	38,089
Shareholders' Equity
Total shareholders’ equity	240,864	219,041
Total liabilities and shareholders’ equity	$ 293,457	$ 257,130

CONDENSED FINANCIAL STATEMENT_4

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed statements of income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income
Non-interest income	$ 28,412	$ 40,043
Total interest and dividend income	100,474	62,011
Expense
Interest expense	17,270	5,416
Non-interest expense	79,106	68,128
Net income	21,698	20,610
First Western Financial, Inc
Income
Interest income	46	60
Non-interest income	7	0
Total interest and dividend income	53	60
Expense
Interest expense	1,609	1,549
Non-interest expense	272	285
Total expense	1,881	1,834
Loss before income tax and equity in undistributed income of subsidiaries	(1,828)	(1,774)
Income tax benefit	412	119
Loss before equity in undistributed income of subsidiaries	(1,416)	(1,655)
Equity in undistributed income to subsidiaries	23,114	22,265
Net income	$ 21,698	$ 20,610

CONDENSED FINANCIAL STATEMENT_5

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed statements of cash flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income	$ 21,698	$ 20,610
Adjustments:
Depreciation and amortization	2,012	1,256
Deferred income tax expense	7,130	6,670
Stock-based compensation	2,562	2,903
Net cash provided by operating activities	48,278	162,515
Cash flows from investing activities
Net cash paid on acquisition	0	120,997
Net cash used in investing activities	(558,798)	(43,025)
Cash flows from financing activities
Payments on subordinated notes	(6,575)	0
Settlement of restricted stock	(876)	(501)
Proceeds from the exercise of stock options	179	1,706
Net cash provided by financing activities	320,049	111,504
Cash and cash equivalents, beginning of year	386,983	155,989
Cash and cash equivalents, end of period	196,512	386,983
First Western Financial, Inc
Cash flows from operating activities
Net income	21,698	20,610
Adjustments:
Depreciation and amortization	167	73
Deferred income tax expense	941	301
Stock-based compensation	2,562	2,903
Undistributed equity in subsidiaries	(23,114)	(22,265)
Change in other assets	235	678
Change in other liabilities	115	53
Net cash provided by operating activities	2,604	2,353
Cash flows from investing activities
Net cash paid on acquisition	0	(11,501)
Investment in subsidiaries	(8,571)	(2,913)
Loan and note receivable originations and principal collections	1,978	43
Net cash used in investing activities	(6,593)	(14,371)
Cash flows from financing activities
Proceeds from subordinated notes, net of issuance costs	19,509	14,667
Payments on subordinated notes	(6,575)	0
Settlement of restricted stock	(876)	(501)
Proceeds from the exercise of stock options	179	1,706
Net cash provided by financing activities	12,237	15,872
Net change in cash and cash equivalents	8,248	3,854
Cash and cash equivalents, beginning of year	18,124	14,270
Cash and cash equivalents, end of period	26,372	18,124
Supplemental cash and noncash disclosures:
Interest paid on borrowed funds	1,609	1,549
Common stock issued for Teton acquisition	$ 0	$ 39,818

OTHER NON-INTEREST EXPENSE (Det

OTHER NON-INTEREST EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other Income and Expenses [Abstract]
Corporate development and related	$ 2,440	$ 1,769
Loan and deposit related	1,420	1,016
Other	687	470
Total other non-interest expense	$ 4,547	$ 3,255

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) condition	Dec. 31, 2021 USD ($)
REGULATORY CAPITAL MATTERS
Capital injection	$ 6,000	$ 2,900
Capital conservation buffer	2.50%
Common Equity Tier 1 capital ratio including capital conservation buffer (as a percent)	7%
Tier 1 capital ratio including capital conservation buffer (as a percent)	8.50%
Total capital ratio including capital conservation buffer (as a percent0	10.50%
Number of conditions or events to be performed | condition	0
Tier 1 capital to risk-weighted assets
Actual Amount	$ 212,229	$ 188,777
Actual Ratio (as a percent)	0.0928	0.1054
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 212,229	$ 188,777
Actual Ratio (as a percent)	9.28%	10.54%
Total capital to risk-weighted assets
Actual Amount	$ 282,889	$ 242,388
Actual Ratio (as a percent)	0.1237	0.1354
Tier 1 capital to average assets
Actual Amount	$ 212,229	$ 188,777
Actual Ratio (as a percent)	0.0781	0.0931
Subsidiaries
Tier 1 capital to risk-weighted assets
Actual Amount	$ 234,738	$ 203,164
Actual Ratio (as a percent)	0.1029	0.1140
Required for Capital Adequacy Purposes Amount	$ 136,928	$ 106,945
Required for Capital Adequacy Purposes Amount (as a percent)	0.060	0.060
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 182,571	$ 142,594
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)	0.080	0.080
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 234,738	$ 203,164
Actual Ratio (as a percent)	10.29%	11.40%
Required for Capital Adequacy Purposes Amount	$ 102,696	$ 80,209
Required for Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 148,339	$ 115,858
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)	6.50%	6.50%
Total capital to risk-weighted assets
Actual Amount	$ 252,398	$ 217,215
Actual Ratio (as a percent)	0.1106	0.1219
Required for Capital Adequacy Purposes Amount	$ 182,571	$ 142,594
Required for Capital Adequacy Purposes Ratio (as a percent)	0.080	0.080
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 228,213	$ 178,242
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)	0.100	0.100
Tier 1 capital to average assets
Actual Amount	$ 234,738	$ 203,164
Actual Ratio (as a percent)	0.0865	0.1005
Required for Capital Adequacy Purposes Amount	$ 108,506	$ 80,887
Required for Capital Adequacy Purposes Ratio (as a percent)	0.040	0.040
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 135,633	$ 101,108
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)	0.050	0.050