First Western Financial (MYFW) 10-K 21 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Mar. 18, 2019	Jul. 19, 2018
Document And Entity Information Abstract
Entity Registrant Name	First Western Financial Inc
Entity Central Index Key	0001327607
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 148.6
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,968,420
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents:
Cash and due from banks	$ 1,574	$ 1,370
Interest-bearing deposits in other financial institutions	71,783	8,132
Total cash and cash equivalents	73,357	9,502
Available-for-sale securities	44,901	53,650
Correspondent bank stock, at cost	2,488	1,555
Mortgage loans held for sale	14,832	22,940
Loans, net of allowance of $7,451 and $7,287	886,515	806,402
Promissory notes from related parties		5,792
Premises and equipment, net	6,100	6,777
Accrued interest receivable	2,844	2,421
Accounts receivable	4,492	5,592
Other receivables	1,391	6,324
Other real estate owned, net	658	658
Goodwill	24,811	24,811
Other intangible assets, net	402	1,233
Deferred tax assets, net	4,306	5,987
Company-owned life insurance	14,709	14,316
Other assets	2,518	1,699
Total assets	1,084,324	969,659
Deposits:
Noninterest-bearing	202,856	198,685
Interest-bearing	734,902	617,432
Total deposits	937,758	816,117
Borrowings:
Federal Home Loan Bank Topeka borrowings	15,000	28,563
Subordinated Notes	6,560	13,435
Accrued interest payable	231	197
Other liabilities	7,900	9,501
Total liabilities	967,449	867,813
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preferred stock - no par value; 1,000,000 shares authorized; 20,868 issued and outstanding 2017; liquidation preference: $20,868
Convertible preferred stock - no par value; 150,000 shares authorized; 41,000 shares issued and outstanding 2017; liquidation preference: $4,100
Common stock - no par value; 10,000,000 shares authorized; 7,968,420 and 5,833,456 shares issued and outstanding at 2018 and 2017
Additional paid-in capital	141,359	130,070
Accumulated deficit	(23,199)	(27,296)
Accumulated other comprehensive loss	(1,285)	(928)
Total shareholders’ equity	116,875	101,846
Total liabilities and shareholders’ equity	$ 1,084,324	$ 969,659

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for loans	$ 7,451	$ 7,287
Preferred Stock, par value (in dollars per share)		$ 0
Preferred Stock, shares authorized		1,000,000
Preferred Stock, shares issued		20,868
Preferred Stock, shares outstanding		20,868
Preferred Stock, liquidation preference value		$ 20,868
Common Stock, par value (in dollars per share)	$ 0	$ 0
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	7,968,420	5,833,456
Common Stock, shares outstanding	7,968,420	5,833,456
Series D
Preferred Stock, par value (in dollars per share)		$ 0
Preferred Stock, shares authorized		150,000
Preferred Stock, shares issued		41,000
Preferred Stock, shares outstanding		41,000
Preferred Stock, liquidation preference value		$ 4,100

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Interest and dividend income:
Loans, including fees	$ 37,010	$ 30,908
Investment securities	1,097	2,115
Federal funds sold and other	689	314
Total interest and dividend income	38,796	33,337
Interest expense:
Deposits	6,511	3,778
Other borrowed funds	1,661	1,983
Total interest expense	8,172	5,761
Net interest income	30,624	27,576
Less: Provision for credit losses	180	788
Net interest income, after provision for credit losses	30,444	26,788
Non-interest income:
Trust and investment management fees	19,165	19,455
Net gain on mortgage loans sold	4,560	3,469
Bank fees	1,759	2,176
Risk management and insurance fees	1,296	1,289
Income on company-owned life insurance	393	418
Net gain on sale of securities		81
Gain on legal settlement		825
Total non-interest income	27,173	27,713
Total income before non-interest expense	57,617	54,501
Non-interest expense:
Salaries and employee benefits	29,771	28,663
Occupancy and equipment	5,853	5,884
Professional services	3,451	3,490
Technology and information systems	3,982	3,911
Data processing	2,683	2,436
Marketing	1,253	1,492
Amortization of other intangible assets	831	784
Total loss on sales/provision for other real estate owned		311
Other	2,371	2,523
Total non-interest expense	50,195	49,494
Income before income taxes	7,422	5,007
Income tax expense	1,775	2,984
Net income	5,647	2,023
Preferred stock dividends	(1,378)	(2,291)
Net income (loss) available to common shareholders	$ 4,269	$ (268)
Earnings (loss) per common share:
Basic	$ 0.64	$ (0.05)
Diluted	$ 0.63	$ (0.05)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 5,647	$ 2,023
Other comprehensive income (loss) items:
Net change in unrealized (losses) gains on available-for-sale securities	(523)	214
Reclassification adjustment for realized gains (losses) included in earnings	41	(81)
Total other comprehensive (loss) income items	(482)	133
Income tax effects	125	(262)
Total other comprehensive	(357)	(129)
Comprehensive income	$ 5,290	$ 1,894

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Preferred StockSeries A-C	Preferred Stock	Convertible Preferred StockSeries D	Convertible Preferred Stock	Common Stock	Additional Paid-In CapitalSeries A-C	Additional Paid-In CapitalSeries D	Additional Paid-In Capital	Accumulated DeficitSeries A-C	Accumulated DeficitSeries D	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)	Series A-C	Series D	Total
Balance at Beginning at Dec. 31, 2016								$ 123,755			$ (27,028)	$ (799)			$ 95,928
Balance at Beginning (in shares) at Dec. 31, 2016		20,868		46,000	5,529,542
Increase (Decrease) in Stockholders' Equity
Net income											2,023				2,023
Issuance of common stock, net of issuance costs								5,255							5,255
Issuance of common stock (in shares)					186,791
Series D Preferred Stock Conversion				(5,000)	17,500
Restricted stock awards (in shares)					105,264
Stock forfeited in connection with legal settlement								(244)							(244)
Stock forfeited in connection with legal settlement (in shares)					(8,580)
Other comprehensive loss, net of tax												(129)			(129)
Stock-based compensation								1,298							1,298
Options exercised								6							6
Options exercised (in shares)					2,939
Preferred stock dividends											(2,291)				(2,291)
Balance at Ending at Dec. 31, 2017								130,070			(27,296)	(928)			101,846
Balance at Ending (in shares) at Dec. 31, 2017		20,868		41,000	5,833,456
Increase (Decrease) in Stockholders' Equity
Net income											5,647				5,647
Issuance of common stock, net of issuance costs								34,450							34,450
Issuance of common stock (in shares)					1,989,017
Make whole share issuance					128,978
Preferred stock redemption						$ (20,783)	$ (4,054)		$ (85)	$ (46)			$ (20,868)	$ (4,100)
Preferred stock redemption (in shares)	(20,868)		(41,000)
Other comprehensive loss, net of tax												(398)			(398)
Settlement of share awards								(181)							(181)
Settlement of share awards (in shares)					16,969
Stock-based compensation								1,857							1,857
Preferred stock dividends											(1,378)				(1,378)
Balance at Ending at Dec. 31, 2018								$ 141,359			(23,199)	(1,285)			$ 116,875
Balance at Ending (in shares) at Dec. 31, 2018					7,968,420
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of New Accounting Principle in Period of Adoption											$ (41)	$ 41

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Shareholders’ Equity
Common stock issuance costs	$ 4,411	$ 46

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 5,647	$ 2,023
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,222	2,447
Gain on disposal of premises and equipment		150
Legal settlement		(244)
Deferred income tax expense	1,806	2,671
Total loss on sales/provision of other real estate owned		311
Stock-based compensation	1,857	1,298
Provision for (Recovery of) credit losses	180	788
Net amortization of investment securities	178	690
Accretion of discounts on convertible subordinated debentures and promissory notes, net		(18)
Stock dividends received on correspondent bank stock	(136)	(139)
Increase in cash surrender value of company-owned life insurance	(393)	(418)
Net gain on mortgage loans sold	(4,560)	(3,469)
Net gain on sales of securities		(81)
Origination of mortgage loans held for sale	(473,956)	(301,959)
Proceeds from mortgage loans sold	486,473	290,731
Net changes in operating assets and liabilities:
Accounts receivable	1,100	(907)
Accrued interest receivable and other assets	(1,051)	(817)
Accrued interest payable and other liabilities	(1,567)	1,513
Net cash provided (used) by operating activities	17,800	(5,430)
Activity in available-for-sale securities:
Maturities, prepayments, and calls	13,040	12,192
Sales		58,565
Purchases	(250)	(32,803)
Purchases of correspondent bank stock	(6,609)	(6,975)
Redemption of correspondent bank stock	5,812	7,328
Purchases of premises and equipment	(714)	(499)
Net cash paid for acquisitions		(1,000)
Payments received on promissory notes from related parties	3,701
Proceeds from sales of other real estate owned		1,867
Loan and note receivable originations and principal collections, net	78,051	140,727
Net cash used in investing activities	(63,071)	(102,052)
Cash flows from financing activities
Net change in deposits	121,641	62,217
Proceeds from Subordinated Notes issuances, net		285
Proceeds from the exercise of stock options		6
Proceeds from issuance of common stock, net	34,450	5,255
Settlement of restricted stock	(181)
Payments on Credit Note payable		(2,736)
Dividends paid on preferred stock	(1,378)	(2,291)
Payments on Subordinated Notes	(6,875)
Redemption of preferred stock Series A-C	(20,783)
Redemption of convertible preferred stock Series D	(4,054)
Redemption costs	(131)
Payments to Federal Home Loan Bank Topeka borrowings	(297,866)	(347,683)
Proceeds from Federal Home Loan Bank Topeka borrowings	284,303	339,246
Net cash provided by financing activities	109,126	54,299
Net change in cash and cash equivalents	63,855	(53,183)
Cash and cash equivalents, beginning of year	9,502	62,685
Cash and cash equivalents, end of period	73,357	9,502
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	8,138	5,615
Income tax payment, net of refunds received	439	275
Supplemental noncash disclosures:
Expiration of convertible subordinated debentures		$ 4,749
Reclass of promissory note to loans	2,091
Available-for-sale-reclass of equity securities	703
Reclass on equity securities	$ 41

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - 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”). 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”), First Western Capital Management Company (“FWCM”), 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 customers principally in Colorado (metro Denver, Aspen, Boulder and Fort Collins), Arizona (Phoenix and Scottsdale), California (Century City, Los Angeles) and Wyoming (Jackson Hole and Laramie). 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 selling mortgage loans. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and 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. 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. Concentration of Credit Risk : Most of the Company’s lending activity is to customers located in and around Denver, Colorado; Phoenix and Scottsdale, Arizona; and Jackson Hole, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. At December 31, 2018 and December 31, 2017, 73.6% and 73.5% 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 Equivalent : 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 in debt securities the Company intends 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, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. As of December 31, 2018 and 2017, all investment securities were classified as available-for-sale. As of December 31, 2018, equity mutual funds have been recorded at fair value within the other assets line item in the consolidated balance sheet with changes recorded in the other line item in the consolidated statement of income (in thousands). 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 below their cost that are deemed to be other-than-temporary are recorded in earnings as realized losses in noninterest 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 credit loss, 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. At December 31, 2018 and 2017, 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 both the Federal Home Loan Bank of Topeka ("FHLB Topeka") 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 stock and therefore, no quoted market values exist. For financial reporting purposes, this stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. No provision for impairment was recorded at December 31, 2018 and 2017. 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 lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance 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, net of deferred loan fees and costs, 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, using the level yield method without anticipating prepayments, 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 on the cash-basis or 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. Under the cash-basis method, interest income is recorded when the payment is received in cash. 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. Allowance for Loan Losses: The Company's reserve for credit losses is an estimate of the probable incurred credit 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 credit 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. The Company's loan loss policies do not differ by loan segment. 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. TDRs are separately evaluated for impairment and included in the separately identified impairment disclosures. If cash flow dependent, TDRs will be measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs 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 eight qualitative factors. Certain factors are applied to each pool and certain factors are applied to all non-individually reviewed loans. When applicable, the pool of loans reviewed consists of residential and commercial mortgage loans, equity lines of credit, commercial lines of credit, and consumer installment loans. The eight qualitative factors the Company considers are: 1. Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. 2. Levels and trends in net charge-offs. 3. The existence and effect of any concentrations of credit and changes in the level of such concentrations. 4. Changes in the nature or volume of the loan portfolio and in the terms of loans. 5. Changes in the experience, ability, and depth of lending management and other relevant staff. 6. Changes in the volume and severity of past due loans. 7. Changes in the quality of the loan review system and associated grading changes. 8. Change in the level of overdrafts. The following portfolio segments have been identified: · 1-4 Family Residential—consists of loans and home equity lines of credit secured by one to four 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 one to four 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. · Cash, Securities and Other—consists of consumer and commercial purpose loans that are primarily secured by securities managed and under custody with the Company, cash on deposit with the Company or life insurance policies. In addition, loans in this portfolio are collateralized with other sources of consumer collateral and a minimal amount may be unsecured. 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. · 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 the Company’s 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. · Commercial Real Estate, 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. · 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. The reserve for unfunded commitments represents the estimate for probable credit 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 credit losses for off-balance sheet credit exposures, included in other operational expenses in the accompanying 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. Premises and Equipment : Premises and equipment are carried at cost, net of accumulated depreciation, with the exception of artwork, which is carried at cost. 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 4 to 15 years. Furniture/equipment and software are depreciated using the straight-line method and recognized over the estimated useful lives of the assets which are 7 years and 3 years, respectively. 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 implied 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 a straight-line basis over periods representing the estimated remaining lives of the assets of one to fifteen years, and are evaluated for impairment when events or changes in circumstances indicate the carrying values of such assets may not be recoverable. At December 31, 2018, the Company believes the carrying value of its goodwill not to be impaired and other intangible assets to be recoverable. Accounts Receivable : Accounts receivable 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 in which the Company has obtained a firm commitment as of the balance sheet dates. 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 or to a valuation allowance account. 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 other operational expenses. 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 locks and forward delivery commitments) 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 interest rate lock 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. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for future delivery of mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on mortgage loans sold. 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 ("Black-Scholes 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 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. The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments have historically been minimal and immaterial to financial results. The Company classifies interest and penalties, if any, as a component of income tax expense. Comprehensive Income : Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale which is also recognized as a separate component of equity. Earnings (Loss) per Common Share : The Company had net income in the consolidated statement of income for the years ended December 31, 2018 and 2017. Due to dividends on preferred stock, the Company reports net income and a net loss available to common shareholders' in those years, respectively. Therefore, earnings per share is positive for the year ended December 31, 2018 and negative for 2017. Earnings (Loss) per common share is computed by dividing net income or net loss available to common shareholders by the weighted average number of shares outstanding during each period. See Note 12 for the common share equivalents that have been included and excluded from the calculation of earnings (loss) per common share. 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 now are such matters that will have a material effect on the consolidated financial statements. 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 16. 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. 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. 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. Performance based incentive fees are earned with respect to investment management contracts for the year ended December 31, 2018 are immaterial. Receivables are recorded on the consolidated balance sheet 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 statement of operations for the year ended December 31, 2018 are considered in scope of Topic 606. Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements of $15.7 million at December 31, 2018. Reclassifications : Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income or total shareholders’ equity. Recently issued accounting pronouncements : The following reflect recent accounting pronouncements that have been adopted by the Company or pending pronouncements with updates to the expected impact since the end of the Company’s fiscal year ended December 31, 2018. In February 2016, the FASB issued ASU 2016‑02, Lease Accounting (Topic 842) (“ASU 2016‑02”). Under ASU 2016‑02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet. ASU 2016‑02 will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. Upon adoption of ASU 2016‑02 with its March 31, 2019 quarterly report on Form 10-Q, the Company expects to recognize right-of-use asset and related lease liability each between $12.0 million and $17.0 million. We expect to elect the modified retrospective transition approach. We also expect to elect and apply the package of practical expedients whereby we will not reassess prior to the effective date (i) whether any expired contracts contain leases, (ii) the lease classification for any existing or expired lease, and (iii) initial direct costs of any existing leases. 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 as of the beginning of the first reporting period in which the guidance is effective. ASU 2016‑13 will be effective for the Company on January 1, 2020. Upon adoption of the amendments within this update, the Company expects to make a cumulative‑effect adjustment to the opening balance of retained earnings and the allowance for loan losses in the year of ado

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2018
ACQUISITIONS
ACQUISITIONS	NOTE 2 – ACQUISITIONS On August 18, 2017, the Company entered into an Asset Purchase Agreement (the "Mortgage Purchase Agreement") with EMC Holdings, LLC ("EMC") whereby the Company acquired assets related to the mortgage operations of the Englewood Mortgage Company, a residential mortgage loan origination company. The Company accounted for the acquisition of EMC as a business combination. The purpose of the acquisition was to expand the Company's mortgage capabilities and enhance the products and services offered within the markets the Company serves. Of the cash paid, $1.0 million was deemed purchase consideration and was allocated to the identifiable tangible and intangible assets acquired pursuant to the Mortgage Purchase Agreement. The tangible assets were not material to the consolidated financial statements. The intangible assets primarily consist of a non-competition agreement in the amount of $0.6 million and acquired mortgage loans that were locked but not funded as of the acquisition date in the amount of $0.4 million. The non-competition agreement has an estimated economic life of two years, and is recorded in intangible assets in the accompanying consolidated financial statements, net of amortization. Due to the value of the intangible assets received in the purchase exceeding the consideration of $1.0 million, the Company recorded an immaterial gain on bargain purchase.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2018
INVESTMENT SECURITIES
INVESTMENT SECURITIES	NOTE 3 - INVESTMENT SECURITIES The following presents the amortized cost and fair value of securities available‑for‑sale, with gross unrealized gains and losses recognized in accumulated other comprehensive income as of December 31, 2018 and December 31, 2017 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 Government National Mortgage Association (“GNMA”) mortgage-backed securities – residential 35,591 8 (1,597) 34,002 Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential 4,076 2 (208) 3,870 Securities issued by U.S. government sponsored entities and agencies 4,525 — (223) 4,302 Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS") 1,281 1 (11) 1,271 Small Business Investment Company 1,206 — — 1,206 Total securities available-for-sale $ 46,929 $ 11 $ (2,039) $ 44,901 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ (1) $ 249 GNMA mortgage-backed securities – residential 42,001 27 (1,192) 40,836 FNMA mortgage-backed securities – residential 4,530 13 (144) 4,399 Securities issued by U.S. government sponsored entities and agencies 5,206 — (152) 5,054 Corporate CMO and MBS 1,529 — (50) 1,479 Small Business Investment Company 930 — — 930 Equity mutual funds 750 — (47) 703 Total securities available-for-sale $ 55,196 $ 40 $ (1,586) $ 53,650 Net amortization of premiums and discounts related to mortgage securities during the years ended December 31, 2018 and 2017 was $0.2 million and $0.4 million, which are included with interest income. In 2014 the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. During 2018 and 2017, the Company invested $0.3 million and $0.2 million in SBIC. The Company may invest up to an additional $1.8 million in SBIC through 2019. At December 31, 2018, the amortized cost and estimated fair value of available‑for‑sale securities, excluding SBIC (“Small Business Investment Company”) have contractual maturity dates shown in the table below (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. Amortized Fair December 31, 2018 Cost Value Due after one year through five years $ 250 $ 251 Securities (agency and CMO) 45,473 43,444 Total $ 45,723 $ 43,695 At December 31, 2018 and December 31, 2017, securities with carrying values totaling $5.4 million and $23.7 million, respectively, were pledged to secure various public deposits and credit facilities of the Company. At December 31, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. At December 31, 2018 and December 31, 2017, thirty-three securities and twenty‑eight securities were in an unrealized loss position, with unrealized losses totaling $2.0 million and $1.6 million, respectively. Twenty-six of the securities in an unrealized loss position at December 31, 2018 have been in a continuous unrealized loss position for more than twelve months, the remaining securities in a loss position have been in a continuous unrealized loss position for less than 12 months. The unrealized 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 at December 31, 2018. The following table summarizes securities with unrealized losses at December 31, 2018 and December 31, 2017, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands, before tax): Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ — $ — $ — $ — GNMA mortgage-backed securities – residential 201 — 32,696 (1,597) 32,897 (1,597) FNMA mortgage-backed securities – residential 436 (3) 3,215 (205) 3,651 (208) Securities issued by U.S. government sponsored entities and agencies — — 4,302 (223) 4,302 (223) Corporate CMO and MBS 1,145 (9) 63 (2) 1,208 (11) Total $ 1,782 $ (12) $ 40,276 $ (2,027) $ 42,058 $ (2,039) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ 249 $ (1) $ 249 $ (1) GNMA mortgage-backed securities – residential 11,621 (237) 27,480 (955) 39,101 (1,192) FNMA mortgage-backed securities – residential — — 3,591 (144) 3,591 (144) Securities issued by U.S. government sponsored entities and agencies 677 (2) 4,377 (150) 5,054 (152) Corporate CMO and MBS — — 1,316 (50) 1,316 (50) Equity mutual funds — — 703 (47) 703 (47) Total $ 12,298 $ (239) $ 37,716 $ (1,347) $ 50,014 $ (1,586) The Company did not sell any securities during the year ended December 31, 2018. The Company sold $58.6 million of securities and realized $0.2 million of gains and realized $0.1 million of losses, from the sale of securities using the specific identification method for the year ended December 31, 2017.

CORRESPONDENT BANK STOCK

CORRESPONDENT BANK STOCK	12 Months Ended
	Dec. 31, 2018
CORRESPONDENT BANK STOCK
CORRESPONDENT BANK STOCK	NOTE 4 – CORRESPONDENT BANK STOCK The following presents the Company's investments in correspondent bank stock, at cost, as of the dates noted (in thousands): December 31, 2018 2017 FHLB Topeka $ 2,413 $ 1,480 BBW 75 75 Total $ 2,488 $ 1,555

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
LOANS AND THE ALLOWANCE FOR LOAN LOSSES	NOTE 5 - LOANS AND THE ALLOWANCE FOR LOAN LOSSES The following presents a summary of the Company’s loans as of the dates noted (in thousands): December 31, December 31, 2018 2017 Cash, Securities and Other $ 114,165 $ 131,756 Construction and Development 31,897 24,914 1-4 Family Residential 350,852 282,014 Non-Owner Occupied CRE 173,741 176,987 Owner Occupied CRE 108,480 92,742 Commercial and Industrial 113,660 104,284 Total loans 892,795 812,697 Deferred costs, net 1,171 992 Allowance for loan losses (7,451) (7,287) Loans, net $ 886,515 $ 806,402 The following presents, by class, an aging analysis of the recorded investments (excluding accrued interest receivable, deferred loan fees and deferred costs which are not material) in loans past due as of December 31, 2018 and December 31, 2017 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2018 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 331 $ — $ 11,252 $ 11,583 $ 102,582 $ 114,165 Construction and Development — — — — 31,897 31,897 1-4 Family Residential — — 1,217 1,217 349,635 350,852 Non-Owner Occupied CRE 567 — — 567 173,174 173,741 Owner Occupied CRE — — — — 108,480 108,480 Commercial and Industrial — — 1,735 1,735 111,925 113,660 Total $ 898 $ — $ 14,204 $ 15,102 $ 877,693 $ 892,795 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2017 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 50 $ 99 $ — $ 149 $ 131,607 $ 131,756 Construction and Development — — — — 24,914 24,914 1-4 Family Residential 1,250 — 2,388 3,638 278,376 282,014 Non-Owner Occupied CRE 750 — — 750 176,237 176,987 Owner Occupied CRE — — — — 92,742 92,742 Commercial and Industrial 1,614 — 1,835 3,449 100,835 104,284 Total $ 3,664 $ 99 $ 4,223 $ 7,986 $ 804,711 $ 812,697 At December 31, 2018 and December 31, 2017, the Company had a 1‑4 family residential loan totaling $1.2 million which is more than 90 days delinquent, accruing interest, and in the process of collection. Non‑Accrual Loans and Troubled Debt Restructurings (“TDR”) The following presents the recorded investment in non‑accrual loans by class as of the dates noted (in thousands): December 31, December 31, 2018 2017 Non-accrual loans Cash, Securities and Other $ 11,252 $ — Construction and Development — — 1-4 Family Residential — 1,171 Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 1,735 1,835 Total $ 12,987 $ 3,006 At December 31, 2018, the non-accrual loans listed above included two loans classified as a TDR with a recorded investment totaling $13.0 million. At December 31, 2017, the non‑accrual loans listed above included one loan classified as a TDR with a recorded investment totaling $1.8 million. Non‑accrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following presents a summary of the unpaid principal balance of loans classified as TDRs as of the dates noted (in thousands): December 31, December 31, 2018 2017 Cash, Securities, and Other $ 11,252 $ — Commercial and Industrial 6,583 1,835 Total $ 17,835 $ 1,835 Allowance for loan associated with TDR (940) (722) Net recorded investment $ 16,895 $ 1,113 As of December 31, 2018 and December 31, 2017, the Company has not committed any additional funds to a borrower with a loan classified as a TDR. The Company modified two loans into a TDR during the year ended December 31, 2018. The Company modified one loan into a TDR during the year ended December 31, 2017. During the year ended December 31, 2018, one loan classified as Cash, Securities, and Other was not making payments in accordance with the original contractual terms. The loan was placed on non-accrual and classified as a TDR. One loan classified as Commercial and Industrial, which was accruing, was classified as a TDR at December 31, 2018. All loans classified as TDRs were making payments in accordance with their modified terms during the year ended December 31, 2018. During the year ended December 31, 2017, one loan classified as Commercial and Industrial, which was classified as a TDR still accruing was not making payments in accordance with the modified terms and was placed on non-accrual status. The modification of two loans in TDR performed during the year ended December 31, 2018 included an extension of the maturity dates at the same rates as before that the Company would not have otherwise considered as a result of the Borrowers’ financial difficulties. The extensions ranged from 3 months to a year. The modification of the one loan in TDR performed during the year ended December 31, 2017 included an extension of the maturity date at the same rate as before that the Company would not have otherwise considered as a result of the Borrower’s financial difficulties. The extension was for a period of one year. 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 the Company’s recorded investment in impaired loans as of the periods presented (in thousands): Recorded Recorded Allowance Unpaid Total Investment Investment for Contractual Average Interest Recorded With No With Loan Principal Recorded Income December 31, 2018 Investment Allowance Allowance Losses Balance Investment Recognized Cash, Securities, and Other 11,252 11,252 — — 11,252 4,506 — Commercial and Industrial 6,583 4,848 1,735 940 6,583 5,820 34 Total $ 17,835 $ 16,100 $ 1,735 $ 940 $ 17,835 $ 10,326 $ 34 Recorded Recorded Allowance Unpaid Total Investment Investment for Contractual Average Interest Recorded With No With Loan Principal Recorded Income December 31, 2017 Investment Allowance Allowance Losses Balance Investment Recognized Commercial and Industrial $ 1,835 $ — $ 1,835 $ 722 $ 1,835 $ 1,066 $ — Total $ 1,835 $ — $ 1,835 $ 722 $ 1,835 $ 1,066 $ — The recorded investment in loans in the previous tables, excludes accrued interest and deferred loan fees and costs due to their immateriality. Interest income, if any, was recognized on the cash basis on non-accrual loans. 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, Construction 1-4 Non-Owner Owner Commercial Securities and Family Occupied Occupied and and Other Development Residential CRE CRE Industrial Total Changes in allowance for loan losses for the year ended December 31, 2018 Beginning balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Provision for (recovery of) credit losses (286) 30 269 (169) 38 298 180 Charge-offs (16) — — — — — (16) Recoveries — — — — — — — Ending balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Allowance for loan losses at December 31, 2018 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 940 $ 940 Collectively 764 232 2,552 1,264 789 910 6,511 Ending balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Loans at December 31, 2018, evaluated for impairment: Individually $ 11,252 $ — $ — $ — $ — $ 6,583 $ 17,835 Collectively 102,913 31,897 350,852 173,741 108,480 107,077 874,960 Ending balance $ 114,165 $ 31,897 $ 350,852 $ 173,741 $ 108,480 $ 113,660 $ 892,795 Cash, Construction 1-4 Non-Owner Owner Commercial Securities and Family Occupied Occupied and and Other Development Residential CRE CRE Industrial Total Changes in allowance for loan losses for the year ended December 31, 2017 Beginning balance $ 846 $ 301 $ 1,833 $ 1,153 $ 476 $ 1,869 $ 6,478 Provision for (recovery of) credit losses 210 (99) 439 280 275 (317) 788 Charge-offs — — — — — — — Recoveries 10 — 11 — — — 21 Ending balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Allowance for loan losses at December 31, 2017 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 722 $ 722 Collectively 1,066 202 2,283 1,433 751 830 6,565 Ending balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Loans at December 31, 2017, evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 1,835 $ 1,835 Collectively 131,756 24,914 282,014 176,987 92,742 102,449 810,862 Ending balance $ 131,756 $ 24,914 $ 282,014 $ 176,987 $ 92,742 $ 104,284 $ 812,697 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 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 December 31, 2018 and December 31, 2017 (in thousands): Special December 31, 2018 Pass Mention Substandard Total Cash, Securities and Other $ 102,913 $ — $ 11,252 $ 114,165 Construction and Development 31,897 — — 31,897 1-4 Family Residential 349,635 — 1,217 350,852 Non-Owner Occupied CRE 165,164 8,117 460 173,741 Owner Occupied CRE 108,480 — — 108,480 Commercial and Industrial 100,929 — 12,731 113,660 Total $ 859,018 $ 8,117 $ 25,660 $ 892,795 Special December 31, 2017 Pass Mention Substandard Total Cash, Securities and Other $ 131,756 $ — $ — $ 131,756 Construction and Development 23,756 1,158 — 24,914 1-4 Family Residential 279,424 — 2,590 282,014 Non-Owner Occupied CRE 174,794 — 2,193 176,987 Owner Occupied CRE 92,742 — — 92,742 Commercial and Industrial 93,624 114 10,546 104,284 Total $ 796,096 $ 1,272 $ 15,329 $ 812,697

PREMISES AND EQUIPMENT, NET

PREMISES AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2018
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET	NOTE 6 – PREMISES AND EQUIPMENT, NET The following presents a summary of the cost and accumulated depreciation of premises and equipment at December 31 (in thousands): 2018 2017 Leasehold improvements, including artwork $ 10,026 $ 9,666 Equipment and software 6,916 6,562 Gross Premises and equipment 16,942 16,228 Less accumulated depreciation (10,842) (9,451) Premises and equipment, net $ 6,100 $ 6,777 Depreciation expense for premises and equipment for the years ended December 31, 2018 and 2017 totaled $1.4 million and $1.7 million. The Company leases premises under non-cancelable operating leases. The following presents minimum lease payments due pursuant to the leases as of December 31, 2018 for the years indicated (in thousands): Year Minimum Payment 2019 $ 3,570 2020 3,374 2021 2,815 2022 2,675 2023 2,358 Thereafter 3,446 $ 18,238 The Company's operating lease agreements generally include renewal options for periods ranging from five to seven years. The minimum lease payments due during the option periods are not included above. Total rent expense for each the years ended December 31, 2018 and 2017 totaled $2.8 million each year and is included in occupancy and equipment expense in the accompanying consolidated statements of income.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS The following presents the Company's goodwill, intangible assets and related accumulated amortization as of December 31 (in thousands): 2018 2017 Goodwill $ 24,811 $ 24,811 Other intangibles $ 9,327 $ 9,327 Less accumulated amortization on other intangibles (8,925) (8,094) Other intangible assets, net $ 402 $ 1,233 Amortization expense on definite-lived customer relationship and non-compete intangible assets for the years ended December 31, 2018 and 2017 was $0.8 million and $0.8 million. At October 31, 2018 and December 31, 2018, the Company's reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value including goodwill. The qualitative assessment indicated that it was more likely than not that the carrying value of the reporting unit exceeded its fair value. Therefore, the Company proceeded to complete the two-step impairment test. Step 1 of 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 carrying amount of a reporting unit exceeds its fair value, we are required to perform the second step to the impairment test. Our step 1 goodwill impairment analysis as of October 31, 2018 and December 31, 2018, indicated that the Step 2 analysis was unnecessary. The following presents the expected amortization expense on definite-lived intangible assets for the next two years related to the balance of definite-lived intangible assets existing at December 31, 2018 (in thousands): Year Expense 2019 $ 351 2020 51 Total $ 402

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2018
DEPOSITS
DEPOSITS	NOTE 8 - DEPOSITS The following presents the Company’s interest bearing deposits at the dates noted (in thousands): December 31, December 31, 2018 2017 Money market deposit accounts $ 489,506 $ 331,039 Time deposits 178,743 210,292 Negotiable order of withdrawal accounts 64,853 74,300 Savings accounts 1,800 1,801 Total interest bearing deposits $ 734,902 $ 617,432 Aggregate time deposits of $250,000 or greater $ 83,550 $ 136,741 Overdraft balances classified as loans totaled $0.3 million and $0.1 million at December 31, 2018 and December 31, 2017, respectively. The following presents the scheduled maturities of all time deposits for the next five years ending December 31 (in thousands): Year Ending Time Deposits 2019 $ 139,507 2020 23,332 2021 5,762 2022 6,965 2023 3,177 Thereafter — Total $ 178,743

BORROWINGS

BORROWINGS	12 Months Ended
	Dec. 31, 2018
BORROWINGS
BORROWINGS	NOTE 9 - BORROWINGS FHLB Topeka Borrowings The Bank has executed a blanket pledge and security agreement with the FHLB Topeka that requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of December 31, 2018 and December 31, 2017 amounted to $475.4 million and $361.7 million, respectively. Based on this collateral and the Company’s holdings of FHLB Topeka stock, the Company was eligible to borrow an additional $305.0 million at December 31, 2018. Each advance is payable at its maturity date. The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): December 31, December 31, Maturity Date Rate % 2018 2017 October 31, 2018 (repaid) 1.75 $ — 10,000 August 2, 2019 2.65 5,000 8,563 August 26, 2020 1.94 10,000 10,000 Total $ 15,000 $ 28,563 As of December 31, 2018, the Bank had borrowing capacity associated with three unsecured federal funds lines of credit up to $10.0 million, $13.0 million, and $25.0 million. As of December 31, 2017, the Bank had borrowing capacity associated with two unsecured federal funds lines of credit up to $13.0 million and $25.0 million. As of December 31, 2018 and December 31, 2017, there were no amounts outstanding on any of the federal funds lines. The Company’s borrowing facilities included 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 20). As of December 31, 2018 and December 31, 2017, the Company was in compliance with the covenant requirements. Subordinated Notes As of December 31, 2018 and 2017, subordinated notes (the "2016 Sub Notes") issued to various investors totaled $6.6 million. The 2016 Sub Notes accrue interest at a rate of 7.25% per annum until December 31, 2021, at which time the rate will adjust each quarter to the then current 90 day London Interbank Offered Rate ("LIBOR") plus 587 basis points, mature on December 31, 2026, are redeemable at the option of the Company after January 1, 2022, and pay interest quarterly. At December 31, 2017, subordinated notes (the "2012 Sub Notes") issued to various investors totaled $6.9 million. The 2012 Sub Notes, accrued interest at a fixed rate of 8.0% per annum, matured in July 2020, and were redeemable at the option of the Company after July 2015. Effective July 26, 2018, the Company redeemed all of its subordinated notes due 2020 for an aggregate redemption price of $6.9 million, including accrued and unpaid interest. The subordinated notes due 2020 were redeemed using the proceeds from the Company's recently completed initial public offering, which closed on July 23, 2018. For the years ended December 31, 2018 and 2017, the Company recorded $0.8 million and $1.0 million of interest expense related to the 2016 Sub Notes and 2012 Sub Notes. The 2016 Sub Notes and 2012 Sub Notes are included in Tier 2 capital under current regulatory guidelines and interpretations, subject to limitations. Promissory and Credit Note On July 31, 2014, the Company entered into an Amended and Restated Promissory Note (the "Promissory Note") and an Amended and Restated Revolving Credit Note (the "Credit Note") with a correspondent lending partner. The Promissory Note and Credit Note are secured by stock of the Bank and bear interest at the 30 day LIBOR plus 4.0%. As of December 31, 2018 and December 31, 2017, there were no amounts outstanding on either the Promissory Note or the Credit Note and the borrowing capacity associated with these facilities was $7.2 million.

COMMITMENTS AND COMMITMENTS AND

COMMITMENTS AND COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES The Bank 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 customers. 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 Bank’s exposure to credit loss is represented by the contractual amount of these commitments, although material losses are not anticipated. The Bank 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 (in thousands): December 31, 2018 December 31, 2017 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 33,571 $ 271,580 $ 42,971 $ 218,536 Standby letters of credit $ 40 $ 23,508 $ 40 $ 15,532 Commitments to make loans to sell $ 17,207 $ — $ 34,045 $ — Commitments to make loans $ 2,750 $ 19,762 $ 4,596 $ 20,572 Unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. 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 Bank, is based on management’s credit evaluation of the customer. 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 customers. 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 Bank is committed. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. 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 customers. The Bank holds collateral supporting those commitments if deemed necessary. Commitments to make loans to sell are agreements to sell a loan to an investor in the secondary market for which the interest rate has been locked with the customer 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 customer 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 On or about September 1, 2016, the Company terminated an associate. The Company filed legal action against the former associate asserting causes of action against him in connection with his conduct while an employee and post-employment breach of certain surviving provisions of his employment agreement. The former employee then filed an action against the Company alleging wrongful termination, failure to pay all wages upon termination, and failure to pay reimbursement. On November 16, 2017, the parties reached a confidential global resolution of the disputes between them and the action was dismissed, with prejudice. The amounts are reflected in other income within the consolidated statement of income for the year ended December 31, 2017. In 2015, a bank in Arizona brought suit against the Company, the Bank, and several individuals formerly employed by the plaintiff and subsequently employed by the Bank, arising from the Company's hiring of multiple former plaintiff employees engaged in the mortgage lending area. The plaintiff and the Company entered into a confidential settlement with no admission of liability or wrongdoing, and filed a stipulation for the dismissal of the Company from the action, with prejudice, on June 14, 2017. The settlement amount is included within the professional services component of non-interest income in the consolidated statements of income for the year ended December 31, 2017. The Company is, from time to time, involved in various legal actions arising in the normal course of business. While the ultimate outcome of any such proceedings cannot be predicted with certainty, it is the opinion of management, based on advice from legal counsel, that no proceedings exist, either individually or in the aggregate, which, if determined adversely to the Company, would have a material effect on the Company’s consolidated financial statements.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	12 Months Ended
	Dec. 31, 2018
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY	NOTE 11 – 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. During the year ended December 31, 2018 and 2017, the Company sold 67,242 and 186,791 shares of its common stock through two Private Placement Memorandums (“PPM”) resulting in proceeds to the Company of $1.9 million and $5.3 million, respectively (net of issuance costs of $0.1 million and an immaterial amount, respectively). As described in Note 10—Commitments and Contingencies, the Company settled a legal claim and as a result of the settlement, the Company received 8,580 shares of its common stock with an estimated fair value at the time of settlement of $0.2 million. As of December 31, 2017, the shares received as a result of the settlement are retired. On July 23, 2018, the Company completed its initial public offering of 1,921,775 shares of its common stock at a price of $19.00 per share, which included 296,250 shares pursuant to the full exercise by the underwriters of their option to purchase additional shares of common stock from the Company, resulting in net proceeds of $32.5 million (net of issuance costs of $4.4 million). Effective July 26, 2018, the Company redeemed at par value all of its outstanding shares of preferred stock, which consisted of 8,559 shares of Series A preferred stock, 428 shares of Series B preferred stock, 11,881 shares of Series C preferred stock, and 41,000 shares of Series D preferred stock. The aggregate redemption amount for the preferred stock was $25.0 million. The preferred stock was redeemed using the proceeds from the Company's completed initial public offering, which closed on July 23, 2018. Certain of our common stock holders received Make Whole Rights pursuant to an Investor Agreement in connection with the conversion of Series D preferred stock into common stock and our private placement conducted from August 2017 to February 2018, which entitled the holder of such Make Whole Rights to, among other things, receive additional shares of our common stock (“Make Whole Shares”), subject to the satisfaction of the conditions of the Investor Agreements. As a result, the Company issued 128,978 Make Whole Shares on September 10, 2018. The Company’s issuance of the Make Whole Shares was exempt from the registration statement of the Securities Act pursuant to Section 4(a)(2) thereof. 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 common stock ($1.5 million or 52,632 shares) vests ratably over five-years as long as the sole member is employed with the Company. The remaining $1.5 million, or 52,632 shares, will be earned based on performance of the mortgage division of the Company. As of December 31, 2018, the Restricted Stock Awards have a weighted-average grant date fair value of $28.50 per share. During the year ended December 31, 2018 and December 31, 2017, the Company has recognized compensation expense of $0.3 million and $0.1 million for the Restricted Stock Awards. As of December 31, 2018, the Company has $2.6 million of unrecognized stock-based compensation expense related to the shares issued, which is expected to be recognized over a weighted average period of three and three quarter years. Restricted Stock Awards of 10,526 vested during the year ended December 31, 2018. Stock‑Based Compensation Plans As of December 31, 2018, there were a total of 697,138 shares available for issuance under the First Western Financial, Inc. 2016 Omnibus Incentive Plan (“the 2016 Plan”). As of December 31, 2018, if the 465,947 options outstanding under the First Western 2008 Stock Incentive Plan (“the 2008 Plan”) are forfeited, cancelled or terminated with no consideration paid to the Company, those amounts will be transferred to the 2016 Plan and increase the number of shares eligible to be granted under the 2016 Plan to a maximum of 1,163,085 shares. Stock Options The Company did not grant any stock options during the year ended December 31, 2018 and 2017. During the year ended December 31, 2018 and 2017, the Company recognized stock‑based compensation expense of $0.5 million and $0.8 million. As of December 31, 2018, the Company has $0.6 million of unrecognized stock‑based compensation expense related to stock options which are unvested. That cost is expected to be recognized over a weighted‑average period of approximately one and a quarter years. The following summarizes activity for nonqualified stock options for the year ended December 31, 2018: Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 592,714 $ 29.24 Granted — — Exercised — — Forfeited or expired (126,767) $ 29.91 Outstanding at end of period 465,947 $ 28.84 4.5 (a) Options fully vested / exercisable at December 31, 2018 402,872 $ 29.54 4.2 (a) (a) Nonqualified stock options outstanding at the end of the period and those fully vested / exercisable had immaterial aggregate intrinsic values. As of December 31, 2018 and December 31, 2017, there were 402,872 and 458,942 options, respectively, that were exercisable. Exercise prices are between $20.00 and $40.00 per share, and the options are exercisable for a period of ten years from the original grant date and expire on various dates between 2022 and 2026. Share Awards Pursuant to the 2016 Plan, the Company can grant associates and non‑associate directors long‑term cash and stock‑based compensation. During the year ended December 31, 2018, the Company 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 summarizes the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units for the year ended December 31, 2018: Time Financial Market Vesting Performance Performance Units Units Units Outstanding at beginning of year 179,990 20,840 21,467 Granted 42,442 250 250 Vested (23,282) - - Forfeited (14,781) (5,158) (4,459) Outstanding at end of period During the year ended December 31, 2018, the Company issued 16,969 shares of common stock upon the settlement of Time Vesting Units. The remaining 6,313 shares were surrendered with a combined market value at the dates of settlement of $0.2 million to cover employee withholding taxes. Time Vesting Units The 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 Time Vesting Units of 37,942 with a five‑year service period in 2018 and vest in equal installments of 50% on the third and fifth anniversaries and the remaining 4,500 Time Vesting Units granted in 2018 require a four year service period and vest in equal installments of 50% on the second and fourth anniversaries of the grant date, assuming continuous employment through the scheduled vesting dates. The Time Vesting Units granted in 2018 have a weighted‑average grant‑date fair value of $21.33 per unit. During the years ended December 31, 2018 and December 31, 2017, the Company recognized compensation expense of $1.0 million and $0.4 million for the Time Vesting Units. As of December 31, 2018, there was $3.9 million of unrecognized compensation expense related to the Time Vesting Units, which is expected to be recognized over a weighted‑average period of two and a half years. Financial Performance Units Financial Performance Units were granted to certain key associates and are earned based on the Company achieving various financial performance metrics beginning on the grant date and ending on December 31, 2020. 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 two year service period vesting requirement ending on December 31, 2021. There were 250 Financial Performance Units granted during the year ended December 31, 2018 and have a weighted-average grant date fair value of $21.00 per unit. As of December 31, 2018, the Company is accruing at the maximum threshold for 50% of the awards and the threshold for the remainder. The maximum shares that can be issued at 150% as of December 31, 2018 was 23,898 shares. During the years ended December 31, 2018 and December 31, 2017, the Company recognized $0.1 million each year of compensation expense for the Financial Performance Units. As of December 31, 2018, there was $0.3 million of unrecognized compensation expense related to the Financial Performance Units which is expected to be recognized over a weighted‑average period of three years. 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. If the Company’s common stock is trading at or above certain prices, over a performance period ending on June 30, 2020, the Market Performance Units will be determined to be earned and vest following the completion of a subsequent service period ending on June 30, 2022. 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 is also a market condition as a vesting requirement for the Market Performance Units which affects the determination of the grant date fair value. The Company estimated the grant date fair value using various valuation assumptions. During the year ended December 31, 2018, the Company recognized an immaterial amount of compensation expense for the Market Performance Units. As of December 31, 2018, there was an immaterial amount of unrecognized compensation expense related to the Market Performance Units which is expected to be recognized over a weighted‑average period of three and a half years.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2018
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	NOTE 12 - EARNINGS PER COMMON SHARE The table below presents the calculation of basic and diluted earnings per common share for the periods indicated (amounts in thousands, except share and per share amounts): Year Ended December 31, 2018 2017 Earnings (loss) per common share - Basic Numerator: Net income $ 5,647 $ 2,023 Dividends on preferred stock (1,378) (2,291) Net income (loss) available for common shareholders $ 4,269 $ (268) Denominator: Basic weighted average shares 6,712,754 5,586,620 Earnings (loss) per common share - basic $ 0.64 $ (0.05) Earnings (loss) per common share - Diluted Numerator: Net income $ 5,647 $ 2,023 Dividends on preferred stock (1,378) (2,291) Net income (loss) available for common shareholders $ 4,269 $ (268) Denominator: Basic weighted average shares 6,712,754 5,586,620 Diluted effect of common stock equivalents: Stock options 15,645 — Time Vesting Units 11,131 — Financial Performance Units 4,879 — Market Performance Units 7,217 — Restricted Stock Awards 2,632 — Total diluted effect of common stock equivalents 41,504 — Diluted weighted average shares 6,754,258 5,586,620 Earnings (loss) per common share - diluted $ 0.63 $ (0.05) Diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been anti‑dilutive. For the period ended December 31, 2018 and 2017, potentially dilutive securities excluded from the diluted loss per share calculation are as follows: For the Period Ended 2018 2017 Stock options 339,199 592,714 Convertible Preferred D shares 75,850 151,700 Time Vesting Units 88,333 179,990 Financial Performance Units 8,069 20,840 Market Performance Units — 21,467 Restricted Stock Awards 34,642 105,264 Maximum number of shares issuable under the Make Whole Right — 95,356 Total potentially dilutive securities 546,093 1,167,331

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	NOTE 13 - INCOME TAXES The components of the Company's income tax (benefit) expense as of December 31 (in thousands): 2018 2017 Current: Federal $ (118) $ 140 State and local 87 173 Total current tax (benefit) expense (31) 313 Deferred: Federal $ 1,567 $ 1,902 Net deferred tax asset remeasurement — 1,179 State and local 239 (410) Total deferred taxes 1,806 2,671 Income tax expense $ 1,775 $ 2,984 On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act (the "2017 Tax Reform") was enacted. The 2017 Tax Reform significantly revised the U.S. corporate income tax code by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the 2017 Tax Reform, the Company recorded a tax expense of $1.2 million due to a remeasurement of deferred tax assets and liabilities. The following is a reconciliation of income taxes reflected on the statements of income for the years ended December 31 with income tax expense computed by applying the United States federal income tax rate of 21% and 35%, respectively to income before income taxes (in thousands): 2018 2017 Income tax expense computed at 21% and 35% statutory rate, respectively $ 1,558 $ 1,753 Statutory rate change from 35% to 21% — 1,179 Differences: Permanent differences (89) (114) State taxes, net of federal expense 258 166 Other, net 48 — Income tax expense $ 1,775 $ 2,984 The following were the principal components of the Company's deferred tax items as of December 31 (in thousands): 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 995 $ 2,758 Allowance for loan losses 1,921 1,911 Deferred rent 960 957 Stock-based compensation 1,277 1,266 Allowance for losses on other real estate owned 461 469 Other intangible assets 747 946 Unrealized losses on securities 530 405 Other 206 - Total deferred tax assets 7,097 8,712 Deferred tax liabilities: Goodwill $ (1,772) $ (1,683) Depreciation (980) (998) Other (39) (44) Total deferred tax liabilities (2,791) (2,725) Net deferred tax asset $ 4,306 $ 5,987 The net operating loss ("NOL") carryforwards expire in the years 2028 through 2033. As of December 31, 2018, the Company has $0.8 million and $0.2 million of California and Colorado NOLs available for utilization. In general, a corporation's ability to utilize its NOL carryforwards may be substantially limited due to ownership changes that have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), as well as similar state provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax. In general, an "ownership change," as defined by Section 382 of the Code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the capital (as defined) of a company by certain stockholders or public groups. The Company identified no 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 2015 and forward. There are no federal or state tax examinations currently in progress.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE 14 – EMPLOYEE BENEFIT PLANS The 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, 2018 and 2017, the Company expensed matching contributions to the plan totaling $0.6 million each year. The Company did not pay any expenses attributable to the plan during the years ended December 31, 2018 and 2017.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 15 – RELATED‑PARTY TRANSACTIONS The Company granted loans to principal officers and directors and their affiliates, all of whom are deemed related parties. At December 31, 2018 and December 31, 2017, there were no delinquent or non‑performing loans to any officer or director of the Company. The following presents a summary of related‑party loan activity as of the dates noted (in thousands): December 31, 2018 December 31, 2017 Balance, beginning of year $ 14,077 $ 10,268 Funded loans 1,466 8,119 Payments collected (9,386) (4,310) Changes in related parties (3,498) — Balance, end of year $ 2,659 $ 14,077 Deposits from related parties held by the Bank at December 31, 2018 and December 31, 2017 totaled $36.7 million and $53.1 million, respectively. The Company leases office space from an entity controlled by one of the Company’s board members. During the year ended December 31, 2018 and 2017, the Company incurred $0.1 million each year, of expense related to this lease. The Company earned trust and investment management fees of $0.1 million from related parties each year during the years ended December 31, 2018 and 2017. Assets under management for those related parties totaled $89.3 million and $74.8 million at December 31, 2018 and 2017, respectively. Effective July 23, 2018, the Company redeemed its subordinated notes due 2020. A director of the Company was a subscription holder of such notes. Upon redemption, the Company incurred a principal and interest payment of $0.1 million. The Company had a note receivable from a former executive officer of $2.1 million and as of December 31, 2018, the former executive officer is no longer a related party. The note receivable from the former executive officer was reclassified from Promissory notes from related parties to the Loans, net line item on the consolidated balance sheet, during the year ended December 31, 2018. The Company had a note receivable from an executive officer and former executive officer totaling $5.8 million, in the aggregate, as of December 31, 2017. These amounts are included in the promissory notes from related parties on the accompanying consolidated balance sheet as of December 31, 2017. The amounts paid for the year ended December 31, 2018 are included in the payments collected in the table above.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2018
FAIR VALUE
FAIR VALUE	NOTE 16 - 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. There were no transfers between levels during 2018 or 2017. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities : The fair values for 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). Interest Rate Locks and Forward Delivery Commitments : Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the commitment related to the loan is locked. The fair value estimate 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 (Level 3). Derivative instruments are carried at fair value in the Company’s financial statements. Changes in the fair value of a derivative instrument are accounted for within the consolidated statements of income. The following presents assets measured on a recurring basis at December 31, 2018 and December 31, 2017 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2018 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 GNMA mortgage-backed securities – residential — 34,002 — 34,002 FNMA mortgage-backed securities – residential — 3,870 — 3,870 Securities issued by U.S. government sponsored entities and agencies — 4,302 — 4,302 Corporate CMO and MBS — 1,271 — 1,271 SBIC — 1,206 — 1,206 Total securities available-for-sale $ 250 $ 44,651 $ — $ 44,901 Equity securities not available-for-sale $ 693 $ — $ — $ 693 Interest rate lock and forward delivery commitments $ — $ 890 $ — $ 890 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2017 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 249 $ — $ — $ 249 GNMA mortgage-backed securities – residential — 40,836 — 40,836 FNMA mortgage-backed securities – residential — 4,399 — 4,399 Securities issued by U.S. government sponsored entities and agencies — 5,054 — 5,054 Corporate CMO and MBS — 1,479 — 1,479 SBIC — 930 — 930 Equity mutual fund 703 — — 703 Total securities available-for-sale $ 952 $ 52,698 $ — $ 53,650 Interest rate lock and forward delivery commitments $ — $ 665 $ — $ 665 Mutual funds and U.S. Treasury debt are reported at fair value utilizing Level 1 inputs. The remaining portfolio of securities are reported at fair value with Level 2 inputs provided by a pricing service. As of December 31, 2018 and December 31, 2017, the majority of the securities had credit support provided by the Federal Home Loan Mortgage Corporation, GNMA, the Federal National Mortgage Association or the Small Business Administration. 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 are considered. Other Real Estate Owned : 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. Other real estate owned is evaluated monthly 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 other real estate owned 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 December 31, 2018 and December 31, 2017 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2018 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total other real estate owned $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial — — 795 795 Total impaired loans $ — $ — $ 795 $ 795 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2017 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total other real estate owned $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 1,113 $ 1,113 Total impaired loans $ — $ — $ 1,113 $ 1,113 The sales comparison approach was utilized for estimating the fair value of non‑recurring assets. At December 31, 2018, other real estate owned remained unchanged from December 31, 2017. As of December 31, 2017, other real estate owned at fair value had a carrying amount of $0.7 million, which is the cost basis of $2.4 million net of a valuation allowance of $1.7 million. At December 31, 2018, total impaired loans at the fair value of the collateral for collateral dependent loans had carrying values of $1.7 million with valuation allowances of $0.9 million and were classified as Level 3. As of December 31, 2017, impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had carrying values of $1.8 million with valuation allowances of $0.7 million and were classified as Level 3. Impaired loans valued using a discounted cash flow analyses were not deemed to be at fair value at December 31, 2018 and December 31, 2017. Impaired loans accounted for provisions for loan losses of $0.2 million and $0.7 million for the years ended December 31, 2018 and December 31, 2017. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Valuation Significant Range Fair Value Technique Unobservable Input (Weighted Average) Other real estate owned: Commercial properties $ 658 Appraisal Value Discount 50% (50%) Commission and Cost to Sell 1% - 10% (7%) Total impaired loans: Commercial and industrial $ 795 Discounted Cash Flow Discount Rate 9% (9%) Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017 Valuation Significant Range Fair Value Technique Unobservable Input (Weighted Average) Other real estate owned: Commercial properties $ 658 Appraisal Value Discount 50% (50%) Commission and Cost to Sell 1% - 10% (7%) Total impaired loans: Commercial and industrial $ 1,113 Discounted Cash Flow Discount Rate 9% (9%) The following presents carrying amounts and estimated fair values for financial instruments as of December 31, 2018 and December 31, 2017 (in thousands): Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 73,357 $ 73,357 $ — $ — Securities available-for-sale 44,901 250 44,651 — Loans, net 886,515 — — 868,828 Mortgage loans held for sale 14,832 — 14,832 — Accrued interest receivable 2,844 — 2,844 — Other assets 693 693 — — Liabilities: Deposits $ 937,758 $ — $ 940,039 $ — Borrowings: FHLB Topeka Borrowings – fixed rate 15,000 — 14,833 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,434 Accrued interest payable 231 — 231 — Carrying Fair Value Measurements Using: December 31, 2017 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,502 $ 9,502 $ — $ — Securities available-for-sale 53,650 952 52,698 — Loans, net 806,402 — — 822,392 Mortgage loans held for sale 22,940 — 22,940 — Correspondent bank stock 1,555 N/A N/A N/A Accrued interest receivable 2,421 — 2,421 — Promissory notes, net 5,792 — — 5,792 Liabilities: Deposits $ 816,117 $ — $ 821,059 $ — Borrowings: FHLB Topeka Borrowings – fixed rate 28,563 — 29,108 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,893 2012 Subordinated notes – fixed rate 6,875 — — 7,129 Accrued interest payable 197 — 197 — 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 effective January 1, 2018 on a prospective basis. The estimated fair values carried at cost at December 31, 2017 were based on an entry price notion. 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. Loans, net : The fair values for all fixed-rate and variable-rate performing loans were estimated by discounting the projected cash flows of such loans at December 31, 2018 and 2017. 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, taking into account the loan type, maturity and a required return on capital. Mortgage Loans Held for Sale : The fair value of mortgage loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. Correspondent Bank Stock : The fair value of FHLB stock and Bankers' Bank of the West stock due to restrictions placed on their transferability is not readily determinable. 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 noninterest 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. Borrowings: Variable Rate Borrowings : The carrying amounts of borrowings with variable rates approximate their fair values since the interest rates change to reflect current market borrowing rates for similar instruments and borrowers with similar credit ratings. 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.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2018
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 17 - SEGMENT REPORTING The Company’s reportable segments consist of Wealth Management, Capital 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.k The Capital Management segment consists of operations relative to the Company’s institutional investment management services over proprietary fixed income, high yield, and equity strategies, including the advisor of three owned, managed, and rated mutual funds. Capital management products and services are financial in nature for which revenues are based on a percentage of assets under management or paid premiums. 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 tables below present the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the years ended December 31, 2018 and 2017 (in thousands): Year Ended December 31, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 38,796 $ — $ — $ 38,796 Total interest expense 8,172 — — 8,172 Provision for loan losses 180 — — 180 Net-interest income 30,444 — — 30,444 Non-interest income 19,196 3,350 4,627 27,173 Total income 49,640 3,350 4,627 57,617 Depreciation and amortization expense 1,283 524 415 2,222 All other non-interest expense 38,955 3,564 5,454 47,973 Income before income tax $ 9,402 $ (738) $ (1,242) $ 7,422 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,059,557 $ 9,935 $ 14,832 $ 1,084,324 Year Ended December 31, 2017 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 33,337 $ — $ — $ 33,337 Total interest expense 5,761 — — 5,761 Provision for loan losses 788 — — 788 Net-interest income 26,788 — — 26,788 Non-interest income 18,901 4,993 3,819 27,713 Total income 45,689 4,993 3,819 54,501 Depreciation and amortization expense 2,339 108 — 2,447 All other non-interest expense 37,058 5,759 4,230 47,047 Income before income tax $ 6,292 $ (874) $ (411) $ 5,007 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 934,719 $ 12,000 $ 22,940 $ 969,659

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY	12 Months Ended
	Dec. 31, 2018
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY	NOTE 18 – CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The tables below present condensed financial statements pertaining only to FWFI (in thousands). Investments in subsidiaries are stated using the equity method of accounting. December 31, Condensed Balance Sheets 2018 2017 ASSETS Cash and cash equivalents: $ 9,669 $ 6,935 Investment in subsidiaries 110,675 103,457 Promissory notes, net of discount - 5,792 Loans, net 2,091 - Other assets 1,081 2,361 Total assets $ 123,516 $ 118,545 LIABILITIES Borrowings: Subordinated Notes $ 6,560 $ 13,435 Other liabilities 81 3,264 Total liabilities 6,641 16,699 SHAREHOLDERS’ EQUITY Total shareholders’ equity 116,875 101,846 Total liabilities and shareholders’ equity $ 123,516 $ 118,545 Year Ended December 31, Condensed Statements of Income 2018 2017 Income Interest income $ 178 $ 423 Total income 178 423 Expense Interest expense 791 1,235 Non-interest expense 173 203 Total expense 964 1,438 Loss Before Income Tax and Equity in Undistributed Income of Subsidiaries (786) (1,015) Income Tax Benefit 101 1,492 (Loss) Income Before Equity in Undistributed Income of Subsidiaries (685) 477 Equity in Undistributed Income to Subsidiaries 6,332 1,546 Net income $ 5,647 $ 2,023 Year Ended December 31, Condensed Statements of Cash Flows 2018 2017 Cash flows from operating activities Net income $ 5,647 $ 2,023 Adjustments: Deferred income tax expense 911 1,439 Stock-based compensation 1,857 1,298 Gain on legal settlement — (244) Accretion of discounts on convertible subordinated debentures and promissory notes, net — (18) Depreciation — (62) Loss on sale of fixed assets — 104 Undistributed equity in subsidiaries (6,332) (1,546) Change in other assets 369 (282) Change in other liabilities (3,183) 4,635 Net cash provided by operating activities (731) 7,347 Cash flows from investing activities Payments received on promissory notes from related parties 3,701 — Investment in subsidiaries (1,284) (10,500) Net cash used in investing activities 2,417 (10,500) Cash flows from financing activities Proceeds from issuance of Subordinated Notes — 285 Payment on redemption of Subordinated Notes (6,875) — Proceeds from issuance of common stock, net 34,450 5,255 Redemption of preferred stock Series A-C (20,783) — Redemption of convertible preferred stock Series D (4,054) — Redemption costs (131) — Proceeds from the issuance of stock options — 6 Settlement of restricted stock (181) — Payments on Credit note — (2,736) Dividends paid on preferred stock (1,378) (2,291) Net cash provided by financing activities 1,048 519 Net change in cash and cash equivalents 2,734 (2,634) Cash and cash equivalents, beginning of year 6,935 9,569 Cash and cash equivalents, end of year $ 9,669 $ 6,935 Supplemental noncash disclosures: Reclass of promissory note to loans $ 2,091 $ — Expiration of convertible subordinated debentures $ — $ 4,749

SUPPLEMENTAL FINANCIAL DATA

SUPPLEMENTAL FINANCIAL DATA	12 Months Ended
	Dec. 31, 2018
SUPPLEMENTAL FINANCIAL DATA
SUPPLEMENTAL FINANCIAL DATA	NOTE 19 - SUPPLEMENTAL FINANCIAL DATA 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 the aggregate of total interest income and other income (in thousands). Year Ended December 31, Other non-interest expense 2018 2017 Corporate development and related $ 1,249 $ 1,384 Loan and deposit related 717 645 Office supplies and deliveries 209 250 Other 196 244 Total Other non-interest expense $ 2,371 $ 2,523

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	12 Months Ended
	Dec. 31, 2018
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS	NOTE 20 - REGULATORY CAPITAL MATTERS The Bank is 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, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off‑balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification is 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”) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi‑year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available‑for‑sale securities is not included in computing regulatory capital. Prompt corrective action regulations for 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 the Bank’s primary regulators to measure capital require the Bank to maintain minimum amounts and ratios, set forth in the following table. These ratios are common equity Tier 1 capital (“CET 1”), 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). Actual capital ratios of the Bank, along with the applicable regulatory capital requirements as of December 31, 2018, which were calculated in accordance with the requirements of Basel III, became effective January 1, 2015. The final rules of Basel III also established a “capital conservation buffer” of 2.5% above new regulatory minimum capital ratios, and when fully effective in 2019, will result in the following minimum ratios: (i) a CET 1 ratio of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement began phasing in, in January 2016 at 0.625% of risk‑weighted assets and will increase each year until fully implemented in January 2019. Banks are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such activities. At December 31, 2018, required ratios including the capital conservation buffer were (i) CET 1 of 6.375%; (ii) a Tier 1 capital ratio of 7.875%; and (iii) a total capital ratio of 9.875%. As of December 31, 2018, the most recent filings with the Federal Deposit Insurance Corporation (“FDIC”) categorized the Bank as well capitalized under the regulatory guidelines. To be categorized as well capitalized, an institution must maintain minimum CET 1 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, 2018 that have changed the categorization of the Bank as well capitalized. Management believes the Bank met all capital adequacy requirements to which it is subject as of December 31, 2018 and December 31, 2017. The following presents the actual and required capital amounts and ratios as of December 31, 2018 and December 31, 2017 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 87,291 10.55 % $ 37,240 4.5 % $ 53,791 6.5 % Consolidated 94,335 11.35 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 87,291 10.55 49,653 6.0 66,204 8.0 Consolidated 94,335 11.35 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 94,906 11.47 66,204 8.0 82,755 10.0 Consolidated 108,510 13.06 N/A N/A N/A N/A Tier 1 capital to average assets Bank 87,291 8.63 40,459 4.0 50,574 5.0 Consolidated 94,335 9.28 N/A N/A N/A N/A To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 77,879 9.81 % $ 35,719 4.5 % $ 51,595 6.5 % Consolidated 52,703 6.56 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 77,879 9.81 47,626 6.0 63,501 8.0 Consolidated 70,573 8.79 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 85,304 10.75 63,501 8.0 79,377 10.0 Consolidated 93,903 11.70 N/A N/A N/A N/A Tier 1 capital to average assets Bank 77,879 8.27 37,659 4.0 47,073 5.0 Consolidated 70,573 7.41 N/A N/A N/A N/A

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (policies)	12 Months Ended
	Dec. 31, 2018
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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.
Concentration of Credit Risk	Concentration of Credit Risk : Most of the Company’s lending activity is to customers located in and around Denver, Colorado; Phoenix and Scottsdale, Arizona; and Jackson Hole, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. At December 31, 2018 and December 31, 2017, 73.6% and 73.5% 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 Equivalent	Cash and Cash Equivalent : 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 in debt securities the Company intends 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, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. As of December 31, 2018 and 2017, all investment securities were classified as available-for-sale. As of December 31, 2018, equity mutual funds have been recorded at fair value within the other assets line item in the consolidated balance sheet with changes recorded in the other line item in the consolidated statement of income (in thousands). 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 below their cost that are deemed to be other-than-temporary are recorded in earnings as realized losses in noninterest 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 credit loss, 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. At December 31, 2018 and 2017, 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 both the Federal Home Loan Bank of Topeka ("FHLB Topeka") 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 stock and therefore, no quoted market values exist. For financial reporting purposes, this stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. No provision for impairment was recorded at December 31, 2018 and 2017. 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 lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance 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, net of deferred loan fees and costs, 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, using the level yield method without anticipating prepayments, 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 on the cash-basis or 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. Under the cash-basis method, interest income is recorded when the payment is received in cash. 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.
Allowance for Loan Losses	Allowance for Loan Losses: The Company's reserve for credit losses is an estimate of the probable incurred credit 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 credit 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. The Company's loan loss policies do not differ by loan segment. 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. TDRs are separately evaluated for impairment and included in the separately identified impairment disclosures. If cash flow dependent, TDRs will be measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs 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 eight qualitative factors. Certain factors are applied to each pool and certain factors are applied to all non-individually reviewed loans. When applicable, the pool of loans reviewed consists of residential and commercial mortgage loans, equity lines of credit, commercial lines of credit, and consumer installment loans. The eight qualitative factors the Company considers are: 1. Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. 2. Levels and trends in net charge-offs. 3. The existence and effect of any concentrations of credit and changes in the level of such concentrations. 4. Changes in the nature or volume of the loan portfolio and in the terms of loans. 5. Changes in the experience, ability, and depth of lending management and other relevant staff. 6. Changes in the volume and severity of past due loans. 7. Changes in the quality of the loan review system and associated grading changes. 8. Change in the level of overdrafts. The following portfolio segments have been identified: · 1-4 Family Residential—consists of loans and home equity lines of credit secured by one to four 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 one to four 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. · Cash, Securities and Other—consists of consumer and commercial purpose loans that are primarily secured by securities managed and under custody with the Company, cash on deposit with the Company or life insurance policies. In addition, loans in this portfolio are collateralized with other sources of consumer collateral and a minimal amount may be unsecured. 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. · 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 the Company’s 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. · Commercial Real Estate, 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. · 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. The reserve for unfunded commitments represents the estimate for probable credit 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 credit losses for off-balance sheet credit exposures, included in other operational expenses in the accompanying 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.
Premises and Equipment	Premises and Equipment : Premises and equipment are carried at cost, net of accumulated depreciation, with the exception of artwork, which is carried at cost. 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 4 to 15 years. Furniture/equipment and software are depreciated using the straight-line method and recognized over the estimated useful lives of the assets which are 7 years and 3 years, respectively.
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 implied 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 a straight-line basis over periods representing the estimated remaining lives of the assets of one to fifteen years, and are evaluated for impairment when events or changes in circumstances indicate the carrying values of such assets may not be recoverable. At December 31, 2018, the Company believes the carrying value of its goodwill not to be impaired and other intangible assets to be recoverable.
Accounts Receivable	Accounts Receivable : Accounts receivable 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 in which the Company has obtained a firm commitment as of the balance sheet dates.
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 or to a valuation allowance account. 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 other operational expenses.
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 locks and forward delivery commitments) 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 interest rate lock 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. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for future delivery of mortgage loans when interest rate locks are entered into. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gains on mortgage loans sold.
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 ("Black-Scholes 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. The Company may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments have historically been minimal and immaterial to financial results. The Company classifies interest and penalties, if any, as a component of income tax expense.
Comprehensive Income	Comprehensive Income : Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale which is also recognized as a separate component of equity.
Earnings (Loss) per Common Share	Earnings (Loss) per Common Share : The Company had net income in the consolidated statement of income for the years ended December 31, 2018 and 2017. Due to dividends on preferred stock, the Company reports net income and a net loss available to common shareholders' in those years, respectively. Therefore, earnings per share is positive for the year ended December 31, 2018 and negative for 2017. Earnings (Loss) per common share is computed by dividing net income or net loss available to common shareholders by the weighted average number of shares outstanding during each period. See Note 12 for the common share equivalents that have been included and excluded from the calculation of earnings (loss) per common share.
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 now are such matters that will have a material effect on the consolidated financial statements.
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 16. 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.
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.
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. Performance based incentive fees are earned with respect to investment management contracts for the year ended December 31, 2018 are immaterial. Receivables are recorded on the consolidated balance sheet 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 statement of operations for the year ended December 31, 2018 are considered in scope of Topic 606.
Restrictions on Cash	Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements of $15.7 million at December 31, 2018.
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 or total shareholders’ equity.
Recently issued accounting pronouncements	Recently issued accounting pronouncements : The following reflect recent accounting pronouncements that have been adopted by the Company or pending pronouncements with updates to the expected impact since the end of the Company’s fiscal year ended December 31, 2018. In February 2016, the FASB issued ASU 2016‑02, Lease Accounting (Topic 842) (“ASU 2016‑02”). Under ASU 2016‑02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet. ASU 2016‑02 will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. Upon adoption of ASU 2016‑02 with its March 31, 2019 quarterly report on Form 10-Q, the Company expects to recognize right-of-use asset and related lease liability each between $12.0 million and $17.0 million. We expect to elect the modified retrospective transition approach. We also expect to elect and apply the package of practical expedients whereby we will not reassess prior to the effective date (i) whether any expired contracts contain leases, (ii) the lease classification for any existing or expired lease, and (iii) initial direct costs of any existing leases. 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 as of the beginning of the first reporting period in which the guidance is effective. ASU 2016‑13 will be effective for the Company on January 1, 2020. Upon adoption of the amendments within this update, the Company expects to make a cumulative‑effect adjustment to the opening balance of retained earnings and the allowance for loan losses in the year of adoption. The Company has formed a CECL committee that is currently working through its implementation plan. The Company is evaluating historical loan level data requirements and implementing a third-party vendor solution to assist in the application of the model. The company is also evaluating documentation requirements, internal control structure, relevant data sources, and system configurations. Currently, we are unable to estimate the impact the adoption this update will have on the consolidated financial statements and disclosures. However, the Company expects the impact of the adoption will be significantly influenced by the composition and characteristics of its loan portfolios along with economic conditions prevalent as of the date of adoption. In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014‑9, (Topic 606) (“ASU 2014‑9”). ASU 2014‑9 changes recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires improved disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company’s revenues come from interest income and other sources, including loans and securities, that are outside the scope fo ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. ASU 2014‑09 was effective for the Company on January 1, 2018 and was adopted using the modified retrospective method. The adoption of ASU 2014‑09 did not have a material impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”), which amended existing guidance that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. It requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in ASU 2016‑01 were effective for the Company beginning January 1, 2018, and for interim periods within that annual period. The adoption of this guidance did not have a material impact on the consolidated financial statements. See Note 16 - Fair Value measurement disclosures. In January 2017, the FASB issued ASU 2017 ‑ 01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017 ‑ 01”) , which amended existing guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluation whether transactions should be accounted for as acquisition (or disposals) of assets or businesses. The Company adopted ASU 2017 ‑ 01 on January 1, 2018, which did not have a material impact on the consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) ("ASU 2017-08") . ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. Prior to the issuance of this guidance, premiums were amortized as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 requires premiums on purchased callable debt securities that have explicit, non-contingent call features that are callable at fixed prices to be amortized to the earliest call date. There are no accounting changes for securities held at a discount. ASU 2017-08 became effective for the Company beginning January 1, 2019 and did not have a significant impact on the financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), which provided guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 was effective for the Company on January 1, 2019 and did not have a significant impact on the financial statements and disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement— Reporting Comprehensive Income (Topic 220) ("ASU 2018-02") . ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Act from accumulated other comprehensive income into retained earnings. ASU 2018-02 was effective for the Company beginning January 1, 2019 and did not have a significant impact on the financial statements and disclosures. 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 and 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 will be effective for the Company on January 1, 2021, with earlier adoption permitted and is not expected to have a significant impact on the financial statements and disclosures.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2018
INVESTMENT SECURITIES
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, with gross unrealized gains and losses recognized in accumulated other comprehensive income as of December 31, 2018 and December 31, 2017 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 Government National Mortgage Association (“GNMA”) mortgage-backed securities – residential 35,591 8 (1,597) 34,002 Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential 4,076 2 (208) 3,870 Securities issued by U.S. government sponsored entities and agencies 4,525 — (223) 4,302 Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS") 1,281 1 (11) 1,271 Small Business Investment Company 1,206 — — 1,206 Total securities available-for-sale $ 46,929 $ 11 $ (2,039) $ 44,901 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ (1) $ 249 GNMA mortgage-backed securities – residential 42,001 27 (1,192) 40,836 FNMA mortgage-backed securities – residential 4,530 13 (144) 4,399 Securities issued by U.S. government sponsored entities and agencies 5,206 — (152) 5,054 Corporate CMO and MBS 1,529 — (50) 1,479 Small Business Investment Company 930 — — 930 Equity mutual funds 750 — (47) 703 Total securities available-for-sale $ 55,196 $ 40 $ (1,586) $ 53,650
Summary of the amortized cost and estimated fair value of available for sale securities, excluding SBIC with contractual maturity dates	Amortized Fair December 31, 2018 Cost Value Due after one year through five years $ 250 $ 251 Securities (agency and CMO) 45,473 43,444 Total $ 45,723 $ 43,695
Summary of securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position	The following table summarizes securities with unrealized losses at December 31, 2018 and December 31, 2017, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands, before tax): Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ — $ — $ — $ — GNMA mortgage-backed securities – residential 201 — 32,696 (1,597) 32,897 (1,597) FNMA mortgage-backed securities – residential 436 (3) 3,215 (205) 3,651 (208) Securities issued by U.S. government sponsored entities and agencies — — 4,302 (223) 4,302 (223) Corporate CMO and MBS 1,145 (9) 63 (2) 1,208 (11) Total $ 1,782 $ (12) $ 40,276 $ (2,027) $ 42,058 $ (2,039) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ 249 $ (1) $ 249 $ (1) GNMA mortgage-backed securities – residential 11,621 (237) 27,480 (955) 39,101 (1,192) FNMA mortgage-backed securities – residential — — 3,591 (144) 3,591 (144) Securities issued by U.S. government sponsored entities and agencies 677 (2) 4,377 (150) 5,054 (152) Corporate CMO and MBS — — 1,316 (50) 1,316 (50) Equity mutual funds — — 703 (47) 703 (47) Total $ 12,298 $ (239) $ 37,716 $ (1,347) $ 50,014 $ (1,586)

CORRESPONDENT BANK STOCK (Table

CORRESPONDENT BANK STOCK (Tables)	12 Months Ended
	Dec. 31, 2018
CORRESPONDENT BANK STOCK
Summary of company's investment in correspondent bank stock	The following presents the Company's investments in correspondent bank stock, at cost, as of the dates noted (in thousands): December 31, 2018 2017 FHLB Topeka $ 2,413 $ 1,480 BBW 75 75 Total $ 2,488 $ 1,555

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Summary of the Company’s loans	The following presents a summary of the Company’s loans as of the dates noted (in thousands): December 31, December 31, 2018 2017 Cash, Securities and Other $ 114,165 $ 131,756 Construction and Development 31,897 24,914 1-4 Family Residential 350,852 282,014 Non-Owner Occupied CRE 173,741 176,987 Owner Occupied CRE 108,480 92,742 Commercial and Industrial 113,660 104,284 Total loans 892,795 812,697 Deferred costs, net 1,171 992 Allowance for loan losses (7,451) (7,287) Loans, net $ 886,515 $ 806,402
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 loan fees and deferred costs which are not material) in loans past due as of December 31, 2018 and December 31, 2017 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2018 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 331 $ — $ 11,252 $ 11,583 $ 102,582 $ 114,165 Construction and Development — — — — 31,897 31,897 1-4 Family Residential — — 1,217 1,217 349,635 350,852 Non-Owner Occupied CRE 567 — — 567 173,174 173,741 Owner Occupied CRE — — — — 108,480 108,480 Commercial and Industrial — — 1,735 1,735 111,925 113,660 Total $ 898 $ — $ 14,204 $ 15,102 $ 877,693 $ 892,795 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2017 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 50 $ 99 $ — $ 149 $ 131,607 $ 131,756 Construction and Development — — — — 24,914 24,914 1-4 Family Residential 1,250 — 2,388 3,638 278,376 282,014 Non-Owner Occupied CRE 750 — — 750 176,237 176,987 Owner Occupied CRE — — — — 92,742 92,742 Commercial and Industrial 1,614 — 1,835 3,449 100,835 104,284 Total $ 3,664 $ 99 $ 4,223 $ 7,986 $ 804,711 $ 812,697
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 (in thousands): December 31, December 31, 2018 2017 Non-accrual loans Cash, Securities and Other $ 11,252 $ — Construction and Development — — 1-4 Family Residential — 1,171 Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 1,735 1,835 Total $ 12,987 $ 3,006
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 (in thousands): December 31, December 31, 2018 2017 Cash, Securities, and Other $ 11,252 $ — Commercial and Industrial 6,583 1,835 Total $ 17,835 $ 1,835 Allowance for loan associated with TDR (940) (722) Net recorded investment $ 16,895 $ 1,113
Summary of recorded investment in impaired loans	The following presents the Company’s recorded investment in impaired loans as of the periods presented (in thousands): Recorded Recorded Allowance Unpaid Total Investment Investment for Contractual Average Interest Recorded With No With Loan Principal Recorded Income December 31, 2018 Investment Allowance Allowance Losses Balance Investment Recognized Cash, Securities, and Other 11,252 11,252 — — 11,252 4,506 — Commercial and Industrial 6,583 4,848 1,735 940 6,583 5,820 34 Total $ 17,835 $ 16,100 $ 1,735 $ 940 $ 17,835 $ 10,326 $ 34 Recorded Recorded Allowance Unpaid Total Investment Investment for Contractual Average Interest Recorded With No With Loan Principal Recorded Income December 31, 2017 Investment Allowance Allowance Losses Balance Investment Recognized Commercial and Industrial $ 1,835 $ — $ 1,835 $ 722 $ 1,835 $ 1,066 $ — Total $ 1,835 $ — $ 1,835 $ 722 $ 1,835 $ 1,066 $ —
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, Construction 1-4 Non-Owner Owner Commercial Securities and Family Occupied Occupied and and Other Development Residential CRE CRE Industrial Total Changes in allowance for loan losses for the year ended December 31, 2018 Beginning balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Provision for (recovery of) credit losses (286) 30 269 (169) 38 298 180 Charge-offs (16) — — — — — (16) Recoveries — — — — — — — Ending balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Allowance for loan losses at December 31, 2018 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 940 $ 940 Collectively 764 232 2,552 1,264 789 910 6,511 Ending balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Loans at December 31, 2018, evaluated for impairment: Individually $ 11,252 $ — $ — $ — $ — $ 6,583 $ 17,835 Collectively 102,913 31,897 350,852 173,741 108,480 107,077 874,960 Ending balance $ 114,165 $ 31,897 $ 350,852 $ 173,741 $ 108,480 $ 113,660 $ 892,795 Cash, Construction 1-4 Non-Owner Owner Commercial Securities and Family Occupied Occupied and and Other Development Residential CRE CRE Industrial Total Changes in allowance for loan losses for the year ended December 31, 2017 Beginning balance $ 846 $ 301 $ 1,833 $ 1,153 $ 476 $ 1,869 $ 6,478 Provision for (recovery of) credit losses 210 (99) 439 280 275 (317) 788 Charge-offs — — — — — — — Recoveries 10 — 11 — — — 21 Ending balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Allowance for loan losses at December 31, 2017 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 722 $ 722 Collectively 1,066 202 2,283 1,433 751 830 6,565 Ending balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Loans at December 31, 2017, evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 1,835 $ 1,835 Collectively 131,756 24,914 282,014 176,987 92,742 102,449 810,862 Ending balance $ 131,756 $ 24,914 $ 282,014 $ 176,987 $ 92,742 $ 104,284 $ 812,697
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 December 31, 2018 and December 31, 2017 (in thousands): Special December 31, 2018 Pass Mention Substandard Total Cash, Securities and Other $ 102,913 $ — $ 11,252 $ 114,165 Construction and Development 31,897 — — 31,897 1-4 Family Residential 349,635 — 1,217 350,852 Non-Owner Occupied CRE 165,164 8,117 460 173,741 Owner Occupied CRE 108,480 — — 108,480 Commercial and Industrial 100,929 — 12,731 113,660 Total $ 859,018 $ 8,117 $ 25,660 $ 892,795 Special December 31, 2017 Pass Mention Substandard Total Cash, Securities and Other $ 131,756 $ — $ — $ 131,756 Construction and Development 23,756 1,158 — 24,914 1-4 Family Residential 279,424 — 2,590 282,014 Non-Owner Occupied CRE 174,794 — 2,193 176,987 Owner Occupied CRE 92,742 — — 92,742 Commercial and Industrial 93,624 114 10,546 104,284 Total $ 796,096 $ 1,272 $ 15,329 $ 812,697

PREMISES AND EQUIPMENT, NET (Ta

PREMISES AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2018
PREMISES AND EQUIPMENT, NET
Schedule of premises and equipment	The following presents a summary of the cost and accumulated depreciation of premises and equipment at December 31 (in thousands): 2018 2017 Leasehold improvements, including artwork $ 10,026 $ 9,666 Equipment and software 6,916 6,562 Gross Premises and equipment 16,942 16,228 Less accumulated depreciation (10,842) (9,451) Premises and equipment, net $ 6,100 $ 6,777
Summary of minimum lease payments pursuant to leases	The Company leases premises under non-cancelable operating leases. The following presents minimum lease payments due pursuant to the leases as of December 31, 2018 for the years indicated (in thousands): Year Minimum Payment 2019 $ 3,570 2020 3,374 2021 2,815 2022 2,675 2023 2,358 Thereafter 3,446 $ 18,238

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill and other intangible assets	The following presents the Company's goodwill, intangible assets and related accumulated amortization as of December 31 (in thousands): 2018 2017 Goodwill $ 24,811 $ 24,811 Other intangibles $ 9,327 $ 9,327 Less accumulated amortization on other intangibles (8,925) (8,094) Other intangible assets, net $ 402 $ 1,233
Schedule of estimated amortization expense	The following presents the expected amortization expense on definite-lived intangible assets for the next two years related to the balance of definite-lived intangible assets existing at December 31, 2018 (in thousands): Year Expense 2019 $ 351 2020 51 Total $ 402

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2018
DEPOSITS
Schedule of interest bearing deposits	The following presents the Company’s interest bearing deposits at the dates noted (in thousands): December 31, December 31, 2018 2017 Money market deposit accounts $ 489,506 $ 331,039 Time deposits 178,743 210,292 Negotiable order of withdrawal accounts 64,853 74,300 Savings accounts 1,800 1,801 Total interest bearing deposits $ 734,902 $ 617,432 Aggregate time deposits of $250,000 or greater $ 83,550 $ 136,741
Schedule Of Time Deposit Maturities	The following presents the scheduled maturities of all time deposits for the next five years ending December 31 (in thousands): Year Ending Time Deposits 2019 $ 139,507 2020 23,332 2021 5,762 2022 6,965 2023 3,177 Thereafter — Total $ 178,743

BORROWINGS (Tables)

BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2018
BORROWINGS
Schedule of borrowings from FHLB Topeka	The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): December 31, December 31, Maturity Date Rate % 2018 2017 October 31, 2018 (repaid) 1.75 $ — 10,000 August 2, 2019 2.65 5,000 8,563 August 26, 2020 1.94 10,000 10,000 Total $ 15,000 $ 28,563

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
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 (in thousands): December 31, 2018 December 31, 2017 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 33,571 $ 271,580 $ 42,971 $ 218,536 Standby letters of credit $ 40 $ 23,508 $ 40 $ 15,532 Commitments to make loans to sell $ 17,207 $ — $ 34,045 $ — Commitments to make loans $ 2,750 $ 19,762 $ 4,596 $ 20,572

SHAREHOLDERS EQUITY (Tables)

SHAREHOLDERS EQUITY (Tables)	12 Months Ended
	Dec. 31, 2018
SHAREHOLDERS EQUITY
Schedule of summarizes activity for nonqualified stock options	Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 592,714 $ 29.24 Granted — — Exercised — — Forfeited or expired (126,767) $ 29.91 Outstanding at end of period 465,947 $ 28.84 4.5 (a) Options fully vested / exercisable at December 31, 2018 402,872 $ 29.54 4.2 (a) (a) 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	Time Financial Market Vesting Performance Performance Units Units Units Outstanding at beginning of year 179,990 20,840 21,467 Granted 42,442 250 250 Vested (23,282) - - Forfeited (14,781) (5,158) (4,459) Outstanding at end of period

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
EARNINGS PER COMMON SHARE
Schedule of basic and diluted earning (loss) per share	The table below presents the calculation of basic and diluted earnings per common share for the periods indicated (amounts in thousands, except share and per share amounts): Year Ended December 31, 2018 2017 Earnings (loss) per common share - Basic Numerator: Net income $ 5,647 $ 2,023 Dividends on preferred stock (1,378) (2,291) Net income (loss) available for common shareholders $ 4,269 $ (268) Denominator: Basic weighted average shares 6,712,754 5,586,620 Earnings (loss) per common share - basic $ 0.64 $ (0.05) Earnings (loss) per common share - Diluted Numerator: Net income $ 5,647 $ 2,023 Dividends on preferred stock (1,378) (2,291) Net income (loss) available for common shareholders $ 4,269 $ (268) Denominator: Basic weighted average shares 6,712,754 5,586,620 Diluted effect of common stock equivalents: Stock options 15,645 — Time Vesting Units 11,131 — Financial Performance Units 4,879 — Market Performance Units 7,217 — Restricted Stock Awards 2,632 — Total diluted effect of common stock equivalents 41,504 — Diluted weighted average shares 6,754,258 5,586,620 Earnings (loss) per common share - diluted $ 0.63 $ (0.05)
Schedule of Antidilutive securities	For the Period Ended 2018 2017 Stock options 339,199 592,714 Convertible Preferred D shares 75,850 151,700 Time Vesting Units 88,333 179,990 Financial Performance Units 8,069 20,840 Market Performance Units — 21,467 Restricted Stock Awards 34,642 105,264 Maximum number of shares issuable under the Make Whole Right — 95,356 Total potentially dilutive securities 546,093 1,167,331

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
Schedule of expense (benefit) for income taxes	The components of the Company's income tax (benefit) expense as of December 31 (in thousands): 2018 2017 Current: Federal $ (118) $ 140 State and local 87 173 Total current tax (benefit) expense (31) 313 Deferred: Federal $ 1,567 $ 1,902 Net deferred tax asset remeasurement — 1,179 State and local 239 (410) Total deferred taxes 1,806 2,671 Income tax expense $ 1,775 $ 2,984
Schedule of reconciliation of income tax (expense) benefit	The following is a reconciliation of income taxes reflected on the statements of income for the years ended December 31 with income tax expense computed by applying the United States federal income tax rate of 21% and 35%, respectively to income before income taxes (in thousands): 2018 2017 Income tax expense computed at 21% and 35% statutory rate, respectively $ 1,558 $ 1,753 Statutory rate change from 35% to 21% — 1,179 Differences: Permanent differences (89) (114) State taxes, net of federal expense 258 166 Other, net 48 — Income tax expense $ 1,775 $ 2,984
Schedule of principal components of deferred tax assets (liabilities)	The following were the principal components of the Company's deferred tax items as of December 31 (in thousands): 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 995 $ 2,758 Allowance for loan losses 1,921 1,911 Deferred rent 960 957 Stock-based compensation 1,277 1,266 Allowance for losses on other real estate owned 461 469 Other intangible assets 747 946 Unrealized losses on securities 530 405 Other 206 - Total deferred tax assets 7,097 8,712 Deferred tax liabilities: Goodwill $ (1,772) $ (1,683) Depreciation (980) (998) Other (39) (44) Total deferred tax liabilities (2,791) (2,725) Net deferred tax asset $ 4,306 $ 5,987

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2018
RELATED-PARTY TRANSACTIONS
Summary of related-party loan activity	The following presents a summary of related‑party loan activity as of the dates noted (in thousands): December 31, 2018 December 31, 2017 Balance, beginning of year $ 14,077 $ 10,268 Funded loans 1,466 8,119 Payments collected (9,386) (4,310) Changes in related parties (3,498) — Balance, end of year $ 2,659 $ 14,077

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2018
FAIR VALUE
Summary of assets measured at fair value on recurring basis	The following presents assets measured on a recurring basis at December 31, 2018 and December 31, 2017 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2018 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 GNMA mortgage-backed securities – residential — 34,002 — 34,002 FNMA mortgage-backed securities – residential — 3,870 — 3,870 Securities issued by U.S. government sponsored entities and agencies — 4,302 — 4,302 Corporate CMO and MBS — 1,271 — 1,271 SBIC — 1,206 — 1,206 Total securities available-for-sale $ 250 $ 44,651 $ — $ 44,901 Equity securities not available-for-sale $ 693 $ — $ — $ 693 Interest rate lock and forward delivery commitments $ — $ 890 $ — $ 890 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2017 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 249 $ — $ — $ 249 GNMA mortgage-backed securities – residential — 40,836 — 40,836 FNMA mortgage-backed securities – residential — 4,399 — 4,399 Securities issued by U.S. government sponsored entities and agencies — 5,054 — 5,054 Corporate CMO and MBS — 1,479 — 1,479 SBIC — 930 — 930 Equity mutual fund 703 — — 703 Total securities available-for-sale $ 952 $ 52,698 $ — $ 53,650 Interest rate lock and forward delivery commitments $ — $ 665 $ — $ 665
Summary of assets measured at fair value on nonrecurring basis	The following presents assets measured on a nonrecurring basis as of December 31, 2018 and December 31, 2017 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2018 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total other real estate owned $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial — — 795 795 Total impaired loans $ — $ — $ 795 $ 795 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2017 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total other real estate owned $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 1,113 $ 1,113 Total impaired loans $ — $ — $ 1,113 $ 1,113
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018 Valuation Significant Range Fair Value Technique Unobservable Input (Weighted Average) Other real estate owned: Commercial properties $ 658 Appraisal Value Discount 50% (50%) Commission and Cost to Sell 1% - 10% (7%) Total impaired loans: Commercial and industrial $ 795 Discounted Cash Flow Discount Rate 9% (9%) Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017 Valuation Significant Range Fair Value Technique Unobservable Input (Weighted Average) Other real estate owned: Commercial properties $ 658 Appraisal Value Discount 50% (50%) Commission and Cost to Sell 1% - 10% (7%) Total impaired loans: Commercial and industrial $ 1,113 Discounted Cash Flow Discount Rate 9% (9%)
Summary of carrying amounts and estimated fair values of financial instruments	The following presents carrying amounts and estimated fair values for financial instruments as of December 31, 2018 and December 31, 2017 (in thousands): Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 73,357 $ 73,357 $ — $ — Securities available-for-sale 44,901 250 44,651 — Loans, net 886,515 — — 868,828 Mortgage loans held for sale 14,832 — 14,832 — Accrued interest receivable 2,844 — 2,844 — Other assets 693 693 — — Liabilities: Deposits $ 937,758 $ — $ 940,039 $ — Borrowings: FHLB Topeka Borrowings – fixed rate 15,000 — 14,833 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,434 Accrued interest payable 231 — 231 — Carrying Fair Value Measurements Using: December 31, 2017 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,502 $ 9,502 $ — $ — Securities available-for-sale 53,650 952 52,698 — Loans, net 806,402 — — 822,392 Mortgage loans held for sale 22,940 — 22,940 — Correspondent bank stock 1,555 N/A N/A N/A Accrued interest receivable 2,421 — 2,421 — Promissory notes, net 5,792 — — 5,792 Liabilities: Deposits $ 816,117 $ — $ 821,059 $ — Borrowings: FHLB Topeka Borrowings – fixed rate 28,563 — 29,108 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,893 2012 Subordinated notes – fixed rate 6,875 — — 7,129 Accrued interest payable 197 — 197 —

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2018
SEGMENT REPORTING
Schedule of segment data	The tables below present the financial information for each segment that is specifically identifiable or based on allocations using internal methods for the years ended December 31, 2018 and 2017 (in thousands): Year Ended December 31, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 38,796 $ — $ — $ 38,796 Total interest expense 8,172 — — 8,172 Provision for loan losses 180 — — 180 Net-interest income 30,444 — — 30,444 Non-interest income 19,196 3,350 4,627 27,173 Total income 49,640 3,350 4,627 57,617 Depreciation and amortization expense 1,283 524 415 2,222 All other non-interest expense 38,955 3,564 5,454 47,973 Income before income tax $ 9,402 $ (738) $ (1,242) $ 7,422 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,059,557 $ 9,935 $ 14,832 $ 1,084,324 Year Ended December 31, 2017 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 33,337 $ — $ — $ 33,337 Total interest expense 5,761 — — 5,761 Provision for loan losses 788 — — 788 Net-interest income 26,788 — — 26,788 Non-interest income 18,901 4,993 3,819 27,713 Total income 45,689 4,993 3,819 54,501 Depreciation and amortization expense 2,339 108 — 2,447 All other non-interest expense 37,058 5,759 4,230 47,047 Income before income tax $ 6,292 $ (874) $ (411) $ 5,007 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 934,719 $ 12,000 $ 22,940 $ 969,659

CONDENSED FINANCIAL STATEMENT_2

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables)	12 Months Ended
	Dec. 31, 2018
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY
Condensed Balance Sheets	December 31, Condensed Balance Sheets 2018 2017 ASSETS Cash and cash equivalents: $ 9,669 $ 6,935 Investment in subsidiaries 110,675 103,457 Promissory notes, net of discount - 5,792 Loans, net 2,091 - Other assets 1,081 2,361 Total assets $ 123,516 $ 118,545 LIABILITIES Borrowings: Subordinated Notes $ 6,560 $ 13,435 Other liabilities 81 3,264 Total liabilities 6,641 16,699 SHAREHOLDERS’ EQUITY Total shareholders’ equity 116,875 101,846 Total liabilities and shareholders’ equity $ 123,516 $ 118,545
Condensed Statements of Income	Year Ended December 31, Condensed Statements of Income 2018 2017 Income Interest income $ 178 $ 423 Total income 178 423 Expense Interest expense 791 1,235 Non-interest expense 173 203 Total expense 964 1,438 Loss Before Income Tax and Equity in Undistributed Income of Subsidiaries (786) (1,015) Income Tax Benefit 101 1,492 (Loss) Income Before Equity in Undistributed Income of Subsidiaries (685) 477 Equity in Undistributed Income to Subsidiaries 6,332 1,546 Net income $ 5,647 $ 2,023
Condensed Statements of Cash Flows	Year Ended December 31, Condensed Statements of Cash Flows 2018 2017 Cash flows from operating activities Net income $ 5,647 $ 2,023 Adjustments: Deferred income tax expense 911 1,439 Stock-based compensation 1,857 1,298 Gain on legal settlement — (244) Accretion of discounts on convertible subordinated debentures and promissory notes, net — (18) Depreciation — (62) Loss on sale of fixed assets — 104 Undistributed equity in subsidiaries (6,332) (1,546) Change in other assets 369 (282) Change in other liabilities (3,183) 4,635 Net cash provided by operating activities (731) 7,347 Cash flows from investing activities Payments received on promissory notes from related parties 3,701 — Investment in subsidiaries (1,284) (10,500) Net cash used in investing activities 2,417 (10,500) Cash flows from financing activities Proceeds from issuance of Subordinated Notes — 285 Payment on redemption of Subordinated Notes (6,875) — Proceeds from issuance of common stock, net 34,450 5,255 Redemption of preferred stock Series A-C (20,783) — Redemption of convertible preferred stock Series D (4,054) — Redemption costs (131) — Proceeds from the issuance of stock options — 6 Settlement of restricted stock (181) — Payments on Credit note — (2,736) Dividends paid on preferred stock (1,378) (2,291) Net cash provided by financing activities 1,048 519 Net change in cash and cash equivalents 2,734 (2,634) Cash and cash equivalents, beginning of year 6,935 9,569 Cash and cash equivalents, end of year $ 9,669 $ 6,935 Supplemental noncash disclosures: Reclass of promissory note to loans $ 2,091 $ — Expiration of convertible subordinated debentures $ — $ 4,749

SUPPLEMENTAL FINANCIAL DATA (Ta

SUPPLEMENTAL FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2018
SUPPLEMENTAL FINANCIAL DATA
Schedule of supplemental financial data	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 the aggregate of total interest income and other income (in thousands). Year Ended December 31, Other non-interest expense 2018 2017 Corporate development and related $ 1,249 $ 1,384 Loan and deposit related 717 645 Office supplies and deliveries 209 250 Other 196 244 Total Other non-interest expense $ 2,371 $ 2,523

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	12 Months Ended
	Dec. 31, 2018
REGULATORY CAPITAL MATTERS
Schedule of actual and required capital ratios	The following presents the actual and required capital amounts and ratios as of December 31, 2018 and December 31, 2017 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 87,291 10.55 % $ 37,240 4.5 % $ 53,791 6.5 % Consolidated 94,335 11.35 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 87,291 10.55 49,653 6.0 66,204 8.0 Consolidated 94,335 11.35 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 94,906 11.47 66,204 8.0 82,755 10.0 Consolidated 108,510 13.06 N/A N/A N/A N/A Tier 1 capital to average assets Bank 87,291 8.63 40,459 4.0 50,574 5.0 Consolidated 94,335 9.28 N/A N/A N/A N/A To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 77,879 9.81 % $ 35,719 4.5 % $ 51,595 6.5 % Consolidated 52,703 6.56 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 77,879 9.81 47,626 6.0 63,501 8.0 Consolidated 70,573 8.79 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 85,304 10.75 63,501 8.0 79,377 10.0 Consolidated 93,903 11.70 N/A N/A N/A N/A Tier 1 capital to average assets Bank 77,879 8.27 37,659 4.0 47,073 5.0 Consolidated 70,573 7.41 N/A N/A N/A N/A

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number Of Securities Determined To Be Other Than Temporarily Impaired | security	0	0
Impairment Of Correspondent Bank Stock | $	$ 0	$ 0
Customer concentration | Loan portfolio
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	73.60%	73.50%

ORGANIZATION AND SUMMARY OF S_4

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Furniture/equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Minimum | Leasehold improvements, including artwork
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Maximum | Leasehold improvements, including artwork
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years

ORGANIZATION AND SUMMARY OF S_5

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2018
Minimum
Finite-Lived Intangible Assets, Remaining Amortization Period	1 year
Maximum
Finite-Lived Intangible Assets, Remaining Amortization Period	15 years

ORGANIZATION AND SUMMARY OF S_6

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	Dec. 31, 2018USD ($)
Restricted Cash	$ 15.7
Minimum | Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability	12
Operating Lease, Right-of-Use Asset	12
Maximum | Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability	17
Operating Lease, Right-of-Use Asset	$ 17

ACQUISITIONS (Details)

ACQUISITIONS (Details) - Mortgage Purchase Agreement With EMC Holdings, LLC [Member] $ in Millions	Aug. 18, 2017USD ($)
ACQUISITIONS
Purchase consideration	$ 1
Unfunded mortgage loans	0.4
Business Combination, Bargain Purchase, Gain Recognized, Amount	1
Noncompete Agreements [Member]
ACQUISITIONS
Intangible assets	$ 0.6
Estimated useful life (in years)	2 years

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		$ 46,929	$ 55,196
Gross Unrealized Gains		11	40
Gross Unrealized Losses		(2,039)	(1,586)
Fair Value		44,901	53,650
Amortization of Premium and discounts, net		200	400
U.S. treasury and federal agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		250	250
Gross Unrealized Losses			(1)
Fair Value		250	249
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		35,591	42,001
Gross Unrealized Gains		8	27
Gross Unrealized Losses		(1,597)	(1,192)
Fair Value		34,002	40,836
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		4,076	4,530
Gross Unrealized Gains		2	13
Gross Unrealized Losses		(208)	(144)
Fair Value		3,870	4,399
Securities issued by U.S. government sponsored entities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		4,525	5,206
Gross Unrealized Losses		(223)	(152)
Fair Value		4,302	5,054
Corporate collateralized mortgage obligations and mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		1,281	1,529
Gross Unrealized Gains		1
Gross Unrealized Losses		(11)	(50)
Fair Value		1,271	1,479
Small Business Investment Company
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		1,206	930
Fair Value		1,206	930
Payments to Acquire Investments	$ 1,800	$ 300	200
Equity mutual fund
Debt Securities, Available-for-sale [Line Items]
Amortized Cost			750
Gross Unrealized Losses			(47)
Fair Value			$ 703

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 46,929	$ 55,196
Fair Value	44,901	53,650
Debt available for sale securities pledged as collateral	$ 5,400	$ 23,700
Threshold Percentage Of Shareholders Equity Amount Held As Securities By One Issuer	10.00%	10.00%
Unrealized loss	$ 2,039	$ 1,586
Number of securities in continuous unrealized loss position for more than twelve months | security	26
Available for sale securities, excluding SBIC
Debt Securities, Available-for-sale [Line Items]
Due after one year through five years amortized cost	$ 250
Due after one year through five years fair value	251
Mortgage-related securities, amortized cost	45,473
Mortgage-related securities, fair value	43,444
Amortized Cost	45,723
Fair Value	$ 43,695
Number of securities in unrealized loss position | security	33	28
Unrealized loss	$ 2,000	$ 1,600

INVESTMENT SECURITIES - Securit

INVESTMENT SECURITIES - Securities with unrealized losses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 1,782,000	$ 12,298,000
Less than 12 months, Unrealized Losses	(12,000)	(239,000)
More than 12 months, Fair Value	40,276,000	37,716,000
More than 12 months, Unrealized Losses	(2,027,000)	(1,347,000)
Total Fair Value	42,058,000	50,014,000
Total Unrealized Losses	(2,039,000)	(1,586,000)
Sales	0	58,600,000
Realized gains		200,000
Realized losses		100,000
U.S. treasury and federal agency
Debt Securities, Available-for-sale [Line Items]
More than 12 months, Fair Value		249,000
More than 12 months, Unrealized Losses		(1,000)
Total Fair Value		249,000
Total Unrealized Losses		(1,000)
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	201,000	11,621,000
Less than 12 months, Unrealized Losses		(237,000)
More than 12 months, Fair Value	32,696,000	27,480,000
More than 12 months, Unrealized Losses	(1,597,000)	(955,000)
Total Fair Value	32,897,000	39,101,000
Total Unrealized Losses	(1,597,000)	(1,192,000)
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	436,000
Less than 12 months, Unrealized Losses	(3,000)
More than 12 months, Fair Value	3,215,000	3,591,000
More than 12 months, Unrealized Losses	(205,000)	(144,000)
Total Fair Value	3,651,000	3,591,000
Total Unrealized Losses	(208,000)	(144,000)
Securities issued by U.S. government sponsored entities and agencies
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value		677,000
Less than 12 months, Unrealized Losses		(2,000)
More than 12 months, Fair Value	4,302,000	4,377,000
More than 12 months, Unrealized Losses	(223,000)	(150,000)
Total Fair Value	4,302,000	5,054,000
Total Unrealized Losses	(223,000)	(152,000)
Corporate collateralized mortgage obligations and mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	1,145,000
Less than 12 months, Unrealized Losses	(9,000)
More than 12 months, Fair Value	63,000	1,316,000
More than 12 months, Unrealized Losses	(2,000)	(50,000)
Total Fair Value	1,208,000	1,316,000
Total Unrealized Losses	$ (11,000)	(50,000)
Equity mutual fund
Debt Securities, Available-for-sale [Line Items]
More than 12 months, Fair Value		703,000
More than 12 months, Unrealized Losses		(47,000)
Total Fair Value		703,000
Total Unrealized Losses		$ (47,000)

CORRESPONDENT BANK STOCK - CORR

CORRESPONDENT BANK STOCK - CORRESPONDENT BANK STOCK (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment Holdings [Line Items]
Correspondent bank stock, at cost	$ 2,488	$ 1,555
FHLB Topeka
Investment Holdings [Line Items]
Correspondent bank stock, at cost	2,413	1,480
BBW
Investment Holdings [Line Items]
Correspondent bank stock, at cost	$ 75	$ 75

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 892,795	$ 812,697
Deferred costs, net	1,171	992
Allowance for loan losses	(7,451)	(7,287)
Net loans	886,515	806,402
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	114,165	131,756
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	31,897	24,914
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	350,852	282,014
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	173,741	176,987
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	108,480	92,742
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 113,660	$ 104,284

LOANS AND THE ALLOWANCE FOR L_4

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Aging analysis of recorded investments by class (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 15,102	$ 7,986
Total current	877,693	804,711
Total Recorded Investment	892,795	812,697
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	898	3,664
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		99
90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	14,204	4,223
Cash, Securities and Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11,583	149
Total current	102,582	131,607
Total Recorded Investment	114,165	131,756
Cash, Securities and Other | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	331	50
Cash, Securities and Other | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		99
Cash, Securities and Other | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11,252
Construction and Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	31,897	24,914
Total Recorded Investment	31,897	24,914
1-4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,217	3,638
Total current	349,635	278,376
Total Recorded Investment	350,852	282,014
90 days past due and accruing interest	1,200	1,200
1-4 Family Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,250
1-4 Family Residential | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,217	2,388
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	567	750
Total current	173,174	176,237
Total Recorded Investment	173,741	176,987
Non-Owner Occupied CRE | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	567	750
Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	108,480	92,742
Total Recorded Investment	108,480	92,742
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,735	3,449
Total current	111,925	100,835
Total Recorded Investment	113,660	104,284
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		1,614
Commercial and Industrial | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 1,735	$ 1,835

LOANS AND THE ALLOWANCE FOR L_5

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in non-accrual loans by class (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 12,987	$ 3,006
Number of loans classified as TDRs | loan	2	1
Recorded investments	$ 1,800
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	11,252
Recorded investments	$ 13,000
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans		$ 1,171
Number of loans classified as TDRs | loan	1	1
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 1,735	$ 1,835

LOANS AND THE ALLOWANCE FOR L_6

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of unpaid principal balance of loans classified as TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 17,835	$ 1,835
Allowance for loan associated with TDR	(940)	(722)
Net recorded investment	$ 16,895	$ 1,113
Number of loans classified as TDRs | loan	2	1
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 6,583	$ 1,835
Allowance for loan associated with TDR	(940)	$ (722)
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 11,252

LOANS AND THE ALLOWANCE FOR L_7

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 17,835	$ 1,835
Recorded Investment With No Allowance	16,100
Recorded Investment With Allowance	1,735	1,835
Allowance for Loan Losses	940	722
Unpaid Contractual Principal Balance	17,835	1,835
Average Recorded Investment	10,326	1,066
Interest Income Recognized	34
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	11,252
Recorded Investment With No Allowance	11,252
Unpaid Contractual Principal Balance	11,252
Average Recorded Investment	4,506
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	6,583	1,835
Recorded Investment With No Allowance	4,848
Recorded Investment With Allowance	1,735	1,835
Allowance for Loan Losses	940	722
Unpaid Contractual Principal Balance	6,583	1,835
Average Recorded Investment	5,820	$ 1,066
Interest Income Recognized	$ 34

LOANS AND THE ALLOWANCE FOR L_8

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 7,287	$ 6,478
Provision for (recovery of) credit losses	180	788
Charge-offs	(16)
Recoveries		21
Ending balance	7,451	7,287
Individually evaluated	940	6,565
Collectively evaluated	6,511	722
Loans individually evaluated	17,835	1,835
Loans collectively evaluated	874,960	810,862
Total Recorded Investment	892,795	812,697
Cash, Securities and Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,066	846
Provision for (recovery of) credit losses	(286)	210
Charge-offs	(16)
Recoveries		10
Ending balance	764	1,066
Individually evaluated		1,066
Collectively evaluated	764
Loans individually evaluated	11,252
Loans collectively evaluated	102,913	131,756
Total Recorded Investment	114,165	131,756
Construction and Development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	202	301
Provision for (recovery of) credit losses	30	(99)
Ending balance	232	202
Individually evaluated		202
Collectively evaluated	232
Loans collectively evaluated	31,897	24,914
Total Recorded Investment	31,897	24,914
1-4 Family Residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,283	1,833
Provision for (recovery of) credit losses	269	439
Recoveries		11
Ending balance	2,552	2,283
Individually evaluated		2,283
Collectively evaluated	2,552
Loans collectively evaluated	350,852	282,014
Total Recorded Investment	350,852	282,014
Non-Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,433	1,153
Provision for (recovery of) credit losses	(169)	280
Ending balance	1,264	1,433
Individually evaluated		1,433
Collectively evaluated	1,264
Loans collectively evaluated	173,741	176,987
Total Recorded Investment	173,741	176,987
Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	751	476
Provision for (recovery of) credit losses	38	275
Ending balance	789	751
Individually evaluated		751
Collectively evaluated	789
Loans collectively evaluated	108,480	92,742
Total Recorded Investment	108,480	92,742
Commercial and Industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,552	1,869
Provision for (recovery of) credit losses	298	(317)
Ending balance	1,850	1,552
Individually evaluated	940	830
Collectively evaluated	910	722
Loans individually evaluated	6,583	1,835
Loans collectively evaluated	107,077	102,449
Total Recorded Investment	$ 113,660	$ 104,284

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in company's loans (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 892,795	$ 812,697
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	859,018	796,096
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,117	1,272
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	25,660	15,329
Cash, Securities and Other
Financing Receivable, Recorded Investment [Line Items]
Total loans	114,165	131,756
Cash, Securities and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	102,913	131,756
Cash, Securities and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,252
Construction and Development
Financing Receivable, Recorded Investment [Line Items]
Total loans	31,897	24,914
Construction and Development | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	31,897	23,756
Construction and Development | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,158
1-4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total loans	350,852	282,014
1-4 Family Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	349,635	279,424
1-4 Family Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,217	2,590
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	173,741	176,987
Non-Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	165,164	174,794
Non-Owner Occupied CRE | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,117
Non-Owner Occupied CRE | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	460	2,193
Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	108,480	92,742
Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	108,480	92,742
Commercial and Industrial
Financing Receivable, Recorded Investment [Line Items]
Total loans	113,660	104,284
Commercial and Industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	100,929	93,624
Commercial and Industrial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans		114
Commercial and Industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 12,731	$ 10,546

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, 2018	Dec. 31, 2017
PREMISES AND EQUIPMENT, NET
Gross Premises and equipment	$ 16,942	$ 16,228
Less accumulated depreciation	(10,842)	(9,451)
Premises and equipment, net	6,100	6,777
Depreciation expense	1,400	1,700
Leasehold improvements, including artwork
PREMISES AND EQUIPMENT, NET
Gross Premises and equipment	10,026	9,666
Equipment and software
PREMISES AND EQUIPMENT, NET
Gross Premises and equipment	$ 6,916	$ 6,562

PREMISES AND EQUIPMENT, NET - m

PREMISES AND EQUIPMENT, NET - minimum lease payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Lease payments
2019	$ 3,570
2020	3,374
2021	2,815
2022	2,675
2023	2,358
Thereafter	3,446
Minimum lease payments	18,238
Rent expense	$ 2,800	$ 2,800
Minimum
Operating Lease payments
Renewal Term (in years)	5 years
Maximum
Operating Lease payments
Renewal Term (in years)	7 years

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, intangible assets and related accumulated amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 24,811	$ 24,811
Other intangibles	9,327	9,327
Less accumulated amortization on other intangibles	(8,925)	(8,094)
Other intangible assets, net	402	1,233
Amortization of intangible assets	831	784
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2019	351
2020	51
Other intangible assets, net	$ 402	$ 1,233

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
DEPOSITS
Money market deposit accounts	$ 489,506	$ 331,039
Time deposits	178,743	210,292
Negotiable order of withdrawal accounts	64,853	74,300
Savings accounts	1,800	1,801
Total interest bearing deposits	734,902	617,432
Aggregate time deposits of $250,000 or greater	83,550	136,741
Overdrafts balances classified As loans	$ 300	$ 100

DEPOSITS - Time Deposits (Detai

DEPOSITS - Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Scheduled maturities of time deposits
2019	$ 139,507
2020	23,332
2021	5,762
2022	6,965
2023	3,177
Total	$ 178,743	$ 210,292

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jul. 26, 2018	Dec. 31, 2018	Dec. 31, 2017
BORROWINGS
Payments on Subordinated Notes	$ 6,900	$ 6,875
90 Day London Interbank Offered Rate [Member]
BORROWINGS
Basis spread (as a percent)		587.00%
Federal Funds Lines of Credit One
BORROWINGS
Maximum borrowing capacity		$ 10,000	$ 13,000
Amount outstanding		0	0
Federal Funds Lines of Credit Two
BORROWINGS
Maximum borrowing capacity		13,000	25,000
Amount outstanding		0	0
Federal Funds Line of Credit Three
BORROWINGS
Maximum borrowing capacity		25,000
Amount outstanding		0
Subordinated Notes 2016 [Member]
BORROWINGS
Face amount		$ 6,600	$ 6,600
interest rate (as a percent)		7.25%	7.25%
Interest expenses		$ 800	$ 800
Subordinated Notes 2012 [Member]
BORROWINGS
Face amount			$ 6,900
interest rate (as a percent)			8.00%
Interest expenses			$ 1,000
Promissory and Credit Note [Member]
BORROWINGS
Maximum borrowing capacity		7,200
Amount outstanding		$ 0	0
Promissory and Credit Note [Member] | London 30 Day Interbank Offered Rate [Member]
BORROWINGS
Basis spread (as a percent)		4.00%
FHLB Topeka
BORROWINGS
Amount of collateral pledged		$ 475,400	361,700
Available balance		305,000
Borrowings from FHLB		$ 15,000	28,563
October 31, 2018 (repaid)
BORROWINGS
Interest rate		1.75%
Borrowings from FHLB			10,000
August 2, 2019
BORROWINGS
Interest rate		2.65%
Borrowings from FHLB		$ 5,000	8,563
August 26, 2020
BORROWINGS
Interest rate		1.94%
Borrowings from FHLB		$ 10,000	$ 10,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Unused lines of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 33,571	$ 42,971
Standby letters of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	40	40
Commitments to make loans to sell-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	17,207	34,045
Commitments to make loans-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	2,750	4,596
Unused lines of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	271,580	218,536
Standby letters of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	23,508	15,532
Commitments to make loans-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 19,762	$ 20,572

SHAREHOLDERS EQUITY - Common St

SHAREHOLDERS EQUITY - Common Stock (Details) $ / shares in Units, $ in Thousands	Sep. 10, 2018shares	Jul. 26, 2018USD ($)shares	Jul. 23, 2018USD ($)$ / sharesshares	Dec. 31, 2018USD ($)item$ / sharesshares	Dec. 31, 2017USD ($)item$ / sharesshares
Class of Stock [Line Items]
Common stock par value | $ / shares				$ 0	$ 0
Issuance of common stock, net of issuance costs | $				$ 34,450	$ 5,255
Common stock issuance costs | $				$ 4,411	$ 46
Legal Settlement, Shares Repurchased During The Period				8,580
Legal Settlement, Fair Value Of Common Stock Received | $				$ 200
Preferred Stock, shares outstanding					20,868
Convertible Preferred Stock Converted to Other Securities | $		$ 25,000
Series A preferred stock
Class of Stock [Line Items]
Preferred Stock, shares outstanding		8,559
Series B preferred stock
Class of Stock [Line Items]
Preferred Stock, shares outstanding		428
Series C preferred stock
Class of Stock [Line Items]
Preferred Stock, shares outstanding		11,881
Series D
Class of Stock [Line Items]
Preferred Stock, shares outstanding		41,000			41,000
Common Stock
Class of Stock [Line Items]
Common stock par value | $ / shares				$ 0
Number of votes per each share				one
Make whole share issuance	128,978
Common Stock | Private Placement
Class of Stock [Line Items]
Issuance of common stock (in shares)				67,242	186,791
Number of Private Placement Memorandums | item				2	2
Issuance of common stock, net of issuance costs | $				$ 1,900	$ 5,300
Common stock issuance costs | $				$ 100
Common Stock | IPO
Class of Stock [Line Items]
Issuance of common stock (in shares)			1,921,775
Issuance of common stock, net of issuance costs | $			$ 32,500
Common stock issuance costs | $			$ 4,400
Common stock price (in dollars per share) | $ / shares			$ 19
Common Stock | Underwriters option
Class of Stock [Line Items]
Issuance of common stock (in shares)			296,250

SHAREHOLDERS EQUITY - Stock bas

SHAREHOLDERS EQUITY - Stock based compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued		105,264
Value of shares issued		$ 3
Weighted-average grant date fair value (in dollars per share)	$ 28.50
Recognized compensation expense	$ 0.3	$ 0.1
Unrecognized compensation expense	$ 2.6
Unrecognized compensation expense recognition period (in years)	3 years 9 months
Number of shares vested	10,526
Employee service period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued		52,632
Value of shares issued		$ 1.5
Vesting period (in years0		5 years
Performance of mortgage division
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued		52,632
Value of shares issued		$ 1.5

SHAREHOLDERS EQUITY - Stock b_2

SHAREHOLDERS EQUITY - Stock based compensation - Stock Options (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options forfeited, cancelled or terminated	126,767
Stock-based compensation expense	$ 0.5	$ 0.8
Unrecognized stock-based compensation expense	$ 0.6
Cost is expected to be recognized over a weighted-average period	1 year 3 months
Plan 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance	697,138
Maximum number of shares eligible to be granted after modifications to the plan	1,163,085
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options forfeited, cancelled or terminated	465,947
Amount of consideration paid to the company upon plan modification	$ 0

SHAREHOLDERS EQUITY - Stock b_3

SHAREHOLDERS EQUITY - Stock based compensation - Stock Options Activity (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of year (in shares)	592,714
Forfeited or expired (in shares)	(126,767)
Outstanding at end of period (in shares)	465,947	592,714
Options fully vested / exercisable at end of period (in shares)	402,872	458,942
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 29.24
Forfeited or expired (in dollars per share)	29.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	28.84	$ 29.24
Options fully vested / exercisable at June 30, 2018	$ 29.54
Weighted Average Remaining Contractual Term
Outstanding at end of year	4 years 6 months
Options fully vested / exercisable at June 30, 2018	4 years 2 months 12 days
Aggregate Intrinsic Value
Exercise price low range	$ 20
Exercise price high range	$ 40
Expiry period	10 years

SHAREHOLDERS EQUITY - Stock b_4

SHAREHOLDERS EQUITY - Stock based compensation - Share Awards (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Stock surrendered (in shares)	6,313
Stock surrendered to cover employee withholding taxes | $	$ 0.2
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	179,990
Granted (in shares)	42,442
Vested (in shares)	(23,282)
Forfeited (in shares)	(14,781)
Outstanding at end of year	184,369
Stock issued (in shares)	16,969
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	20,840
Granted (in shares)	250
Forfeited (in shares)	(5,158)
Outstanding at end of year	15,932
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	21,467
Granted (in shares)	250
Forfeited (in shares)	(4,459)
Outstanding at end of year	17,258

SHAREHOLDERS EQUITY - Stock b_5

SHAREHOLDERS EQUITY - Stock based compensation - Time Vesting Units (Details) - Time Vesting Units - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value	$ 21.33
Granted (in shares)	42,442
Stock-based compensation expense	$ 1	$ 0.4
Unrecognized compensation expense	$ 3.9
Unrecognized compensation expense recognition period (in years)	2 years 6 months
Third and fifth anniversaries
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	5 years
Vesting Percentage	50.00%
Granted (in shares)	37,942
Second and fourth anniversaries
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	4 years
Vesting Percentage	50.00%
Granted (in shares)	4,500

SHAREHOLDERS EQUITY - Stock b_6

SHAREHOLDERS EQUITY - Stock based compensation - Financial Performance Units (Details) - Financial Performance Units $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	2 years
Granted (in shares) | shares	250
Maximum accruing threshold awards	50.00%
Maximum percentage of shares can be issued	150.00%
Maximum number of shares can be issued | shares	23,898
Weighted average grant date fair value | $ / shares	$ 21
Stock-based compensation expense | $	$ 0.1
Unrecognized compensation expense | $	$ 0.3
Unrecognized compensation expense recognition period (in years)	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage	150.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage	0.00%

SHAREHOLDERS EQUITY - Stock b_7

SHAREHOLDERS EQUITY - Stock based compensation - Market Performance Units (Details)	12 Months Ended
	Dec. 31, 2018
Market Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense recognition period (in years)	3 years 6 months

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income	$ 5,647	$ 2,023
Dividends on preferred stock	(1,378)	(2,291)
Net income (loss) available for common shareholders	$ 4,269	$ (268)
Denominator:
Basic weighted average shares	6,712,754	5,586,620
Earnings (loss) per common share - basic	$ 0.64	$ (0.05)
Numerator:
Net income	$ 5,647	$ 2,023
Dividends on preferred stock	(1,378)	(2,291)
Net income available for common shareholders	$ 4,269	$ (268)
Diluted effect of common stock equivalents:
Basic weighted average shares	6,712,754	5,586,620
Total diluted effect of common stock equivalents	41,504
Diluted weighted average shares	6,754,258	5,586,620
Earnings (loss) per common share - diluted	$ 0.63	$ (0.05)
Stock Options
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	15,645
Time Vesting Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	11,131
Financial Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	4,879
Market Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	7,217
Restricted Stock Awards
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	2,632

EARNINGS PER COMMON SHARE - Ant

EARNINGS PER COMMON SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	546,093	1,167,331
Stock Options
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	339,199	592,714
Convertible Preferred D Shares
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	75,850	151,700
Time Vesting Units
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	88,333	179,990
Financial Performance Units
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	8,069	20,840
Market Performance Units
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities		21,467
Restricted Stock Awards
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	34,642	105,264
Maximum number of shares issuable under the Make Whole Right
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities		95,356

INCOME TAXES - Income tax (bene

INCOME TAXES - Income tax (benefit) expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal	$ (118)	$ 140
State and local	87	173
Total current tax (benefit) expense	(31)	313
Deferred:
Federal	1,567	1,902
Net deferred tax asset remeasurement		1,179
State and local	239	(410)
Total deferred taxes	1,806	2,671
Income tax expense	$ 1,775	$ 2,984
Effective income tax rate (as a percent)	21.00%	35.00%

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income tax expense computed at 21% and 35% statutory rate, respectively	$ 1,558	$ 1,753
Statutory rate change from 35% to 21%		1,179
Permanent differences	(89)	(114)
State taxes, net of federal expense	258	166
Other, net	48
Income tax expense	$ 1,775	$ 2,984

INCOME TAXES - Deferred tax ite

INCOME TAXES - Deferred tax items (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Net operating loss carryforwards	$ 995	$ 2,758
Allowance for loan losses	1,921	1,911
Deferred rent	960	957
Stock-based compensation	1,277	1,266
Allowance for losses on other real estate owned	461	469
Other intangible assets	747	946
Unrealized losses on securities	530	405
Other	206
Total deferred tax assets	7,097	8,712
Deferred tax liabilities:
Goodwill	(1,772)	(1,683)
Depreciation	(980)	(998)
Other	(39)	(44)
Total deferred tax liabilities	(2,791)	(2,725)
Net deferred tax asset	$ 4,306	$ 5,987

INCOME TAXES Narrative (Details

INCOME TAXES Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Unrecognized tax benefits	$ 0
Unrecognized tax benefits (in years)	12 months
California Franchise Tax Board
Net operating loss carryforwards	$ 800
Colorado Tax Authority
Net operating loss carryforwards	$ 200

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
EMPLOYEE BENEFIT PLANS
Maximum employee contribution (as a percent)	100.00%
Matching contributions to plan	$ 0.6	$ 0.6
Expenses attributable to plan	$ 0	$ 0

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of related party loan activity
Balance, beginning of year	$ 14,077	$ 10,268
Funded loans	1,466	8,119
Payments collected	(9,386)	(4,310)
Changes in related parties	(3,498)
Balance, end of year	2,659	14,077
Deposits from related parties	36,700	53,100
Lease expense	100	100
Investment Banking Revenue	19,165	19,455
Related Party, Assets Under Management	89,300	74,800
Repayments of Related Party Debt	100
Notes receivable from related parties		5,792
Executive officer and former executive officer
Summary of related party loan activity
Notes receivable from related parties		5,800
Former Executive Officer
Summary of related party loan activity
Notes receivable from related parties	2,100
Board of Directors Chairman
Summary of related party loan activity
Investment Banking Revenue	$ 100	$ 100

FAIR VALUE - General (Details)

FAIR VALUE - General (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
FAIR VALUE
Fair value, assets, level 1 to level 2 transfers, amount	$ 0	$ 0
Fair value, assets, level 2 to level 1 transfers, amount	0	0
Fair value, liabilities, level 1 to level 2 transfers, amount	0	0
Fair value, liabilities, level 2 to level 1 transfers, amount	0	0
Transfer to level 3, assets, amount	0	0
Transfer from level 3, assets, amount	0	0
Transfer to level 3, liabilities, amount		0
Transfer from level 3, liabilities, amount	0	0
Fair value, equity, level 1 to level 2 transfers, amount	0	0
Fair value, equity, level 2 to level 1 transfers, amount	$ 0	$ 0

FAIR VALUE - Summary of assets

FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 44,901	$ 53,650
U.S. treasury and federal agency
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	250	249
Securities issued by U.S. government sponsored entities and agencies
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	4,302	5,054
Small Business Investment Company
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	1,206	930
Equity mutual fund
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale		703
Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	44,901	53,650
Equity securities not available-for-sale	693
Recurring | U.S. treasury and federal agency
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	250	249
Recurring | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale		40,836
Recurring | Securities issued by U.S. government sponsored entities and agencies
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	4,302	5,054
Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	1,271	1,479
Recurring | Small Business Investment Company
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	1,206	930
Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	890	665
Recurring | Equity mutual fund
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale		703
Recurring | GNMA | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	34,002
Recurring | FNMA | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	3,870	4,399
Level 1 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	250	952
Equity securities not available-for-sale	693
Level 1 | Recurring | U.S. treasury and federal agency
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	250	249
Level 1 | Recurring | Equity mutual fund
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale		703
Level 2 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	44,651	52,698
Level 2 | Recurring | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale		40,836
Level 2 | Recurring | Securities issued by U.S. government sponsored entities and agencies
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	4,302	5,054
Level 2 | Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	1,271	1,479
Level 2 | Recurring | Small Business Investment Company
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	1,206	930
Level 2 | Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	890	665
Level 2 | Recurring | GNMA | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	34,002
Level 2 | Recurring | FNMA | mortgage-backed securities – residential
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 3,870	$ 4,399

FAIR VALUE - Summary of asset_2

FAIR VALUE - Summary of assets measured at fair value on Non recurring basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	$ 658,000	$ 658,000
Impaired loans	16,895,000	1,113,000
Other real estate owned, gross		2,400,000
Other real estate owned valuation allowance		1,700,000
Impaired loans carrying value	1,735,000	1,835,000
Allowance for loans	7,451,000	7,287,000
Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000	658,000
Impaired loans	795,000	1,113,000
Level 3
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans carrying value	1,700,000	1,800,000
Allowance for loans	900,000	700,000
Provision for loan losses	200,000	700,000
Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000	658,000
Impaired loans	795,000	1,113,000
Commercial properties | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000	658,000
Commercial properties | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000	658,000
Commercial and Industrial | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	795,000	1,113,000
Commercial and Industrial | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	$ 795,000	$ 1,113,000

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) - Level 3 - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Estimate	$ 658	$ 658
Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Estimate	$ 795	$ 1,113
Discount | Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of discount	50.00%	50.00%
Discount Rate | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of discount rate	9.00%	9.00%
Maximum | Commission and Cost to Sell | Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of commission and cost to sell	10.00%	10.00%
Minimum | Commission and Cost to Sell | Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of commission and cost to sell	1.00%	1.00%
Weighted Average | Discount | Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of discount	50.00%	50.00%
Weighted Average | Commission and Cost to Sell | Commercial properties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of commission and cost to sell	7.00%	7.00%
Weighted Average | Discount Rate | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range and weighted average of discount rate	9.00%	9.00%

FAIR VALUE - Summary of carryin

FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	$ 73,357	$ 9,502	$ 62,685
Securities available-for-sale	44,901	53,650
Loans, net	886,515	806,402
Mortgage loans held for sale	14,832	22,940
Correspondent bank stock	2,488	1,555
Accrued interest receivable	2,844	2,421
Other assets	2,518	1,699
Deposits	937,758	816,117
FHLB Topeka Borrowings – fixed rate	15,000	28,563
Subordinated Notes	6,560	13,435
Accrued interest payable	231	197
Carrying Amount
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	73,357	9,502
Securities available-for-sale	44,901	53,650
Loans, net	886,515	806,402
Mortgage loans held for sale	14,832	22,940
Correspondent bank stock		1,555
Accrued interest receivable	2,844	2,421
Promissory notes, net		5,792
Other assets	693
Deposits	937,758	816,117
FHLB Topeka Borrowings – fixed rate	15,000	28,563
Accrued interest payable	231	197
2016 Subordinated notes – fixed-to-floating rate | Carrying Amount
Summary of carrying amounts and estimated fair values for financial instruments
Subordinated Notes	6,560	6,560
2012 Subordinated notes – fixed rate | Carrying Amount
Summary of carrying amounts and estimated fair values for financial instruments
Subordinated Notes		6,875
Level 1 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	73,357	9,502
Securities available-for-sale	250	952
Other assets	693
Level 2 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Securities available-for-sale	44,651	52,698
Mortgage loans held for sale	14,832	22,940
Accrued interest receivable	2,844	2,421
Deposits	940,039	821,059
FHLB Topeka Borrowings – fixed rate	14,833	29,108
Accrued interest payable	231	197
Level 3 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Loans, net	868,828	822,392
Promissory notes, net		5,792
Level 3 | 2016 Subordinated notes – fixed-to-floating rate | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Subordinated Notes	$ 6,434	6,893
Level 3 | 2012 Subordinated notes – fixed rate | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Subordinated Notes		$ 7,129

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement
Total interest income	$ 38,796	$ 33,337
Total interest expense	8,172	5,761
Provision for (Recovery of) credit losses	180	788
Net-interest income	30,444	26,788
Non-interest income	27,173	27,713
Total income	57,617	54,501
Depreciation and amortization expense	2,222	2,447
All other non-interest expense	47,973	47,047
Income before income taxes	7,422	5,007
Segment reporting
Goodwill	24,811	24,811
Total assets	1,084,324	969,659
Wealth Management
Income Statement
Total interest income	38,796	33,337
Total interest expense	8,172	5,761
Provision for (Recovery of) credit losses	180	788
Net-interest income	30,444	26,788
Non-interest income	19,196	18,901
Total income	49,640	45,689
Depreciation and amortization expense	1,283	2,339
All other non-interest expense	38,955	37,058
Income before income taxes	9,402	6,292
Segment reporting
Goodwill	15,994	15,994
Total assets	1,059,557	934,719
Capital Management
Income Statement
Non-interest income	3,350	4,993
Total income	3,350	4,993
Depreciation and amortization expense	524	108
All other non-interest expense	3,564	5,759
Income before income taxes	(738)	(874)
Segment reporting
Goodwill	8,817	8,817
Total assets	9,935	12,000
Mortgage
Income Statement
Non-interest income	4,627	3,819
Total income	4,627	3,819
Depreciation and amortization expense	415
All other non-interest expense	5,454	4,230
Income before income taxes	(1,242)	(411)
Segment reporting
Total assets	$ 14,832	$ 22,940

CONDENSED FINANCIAL STATEMENT_3

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents:	$ 73,357	$ 9,502	$ 62,685
Loans, net	886,515	806,402
Other assets	2,518	1,699
Total assets	1,084,324	969,659
Borrowings:
Subordinated Notes	6,560	13,435
Other liabilities	7,900	9,501
Total liabilities	967,449	867,813
SHAREHOLDERS’ EQUITY
Total shareholders’ equity	116,875	101,846	95,928
Total liabilities and shareholders’ equity	1,084,324	969,659
First Western Financial, Inc
ASSETS
Cash and cash equivalents:	9,669	6,935	$ 9,569
Investment in subsidiaries	110,675	103,457
Promissory notes, net of discount		5,792
Loans, net	2,091
Other assets	1,081	2,361
Total assets	123,516	118,545
Borrowings:
Subordinated Notes	6,560	13,435
Other liabilities	81	3,264
Total liabilities	6,641	16,699
SHAREHOLDERS’ EQUITY
Total shareholders’ equity	116,875	101,846
Total liabilities and shareholders’ equity	$ 123,516	$ 118,545

CONDENSED FINANCIAL STATEMENT_4

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income
Total interest income	$ 38,796	$ 33,337
Expense
Interest expense	8,172	5,761
Total non-interest expense	50,195	49,494
Net income	5,647	2,023
First Western Financial, Inc
Income
Interest income	178	423
Total interest income	178	423
Expense
Interest expense	791	1,235
Total non-interest expense	173	203
Total expense	964	1,438
Loss Before Income Tax and Equity in Undistributed Income of Subsidiaries	(786)	(1,015)
Income Tax Benefit	101	1,492
(Loss) Income Before Equity in Undistributed Income of Subsidiaries	(685)	477
Equity in Undistributed Income to Subsidiaries	6,332	1,546
Net income	$ 5,647	$ 2,023

CONDENSED FINANCIAL STATEMENT_5

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	Jul. 26, 2018	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income		$ 5,647	$ 2,023
Adjustments:
Deferred income tax expense		1,806	2,671
Stock-based compensation		1,857	1,298
Gain on legal settlement			(244)
Accretion of discounts on convertible subordinated debentures and promissory notes, net			(18)
Depreciation		1,400	1,700
Loss on sale of fixed assets			150
Net cash provided (used) by operating activities		17,800	(5,430)
Cash flows from investing activities
Payments received on promissory notes from related parties		3,701
Net cash used in investing activities		(63,071)	(102,052)
Cash flows from financing activities
Proceeds from issuance of Subordinated Notes			285
Payment on redemption of Subordinated Notes	$ (6,900)	(6,875)
Proceeds from issuance of common stock, net		34,450	5,255
Redemption of preferred stock Series A-C		(20,783)
Redemption of convertible preferred stock Series D		(4,054)
Redemption costs		(131)
Proceeds from issuance of common stock, net			6
Settlement of restricted stock		(181)
Payments on Credit note			(2,736)
Dividends paid on preferred stock		(1,378)	(2,291)
Net cash provided by financing activities		109,126	54,299
Net change in cash and cash equivalents		63,855	(53,183)
Cash and cash equivalents, beginning of year		9,502	62,685
Cash and cash equivalents, end of period		73,357	9,502
Supplemental noncash disclosures:
Reclass of promissory note to loans		2,091
Expiration of convertible subordinated debentures			4,749
First Western Financial, Inc
Cash flows from operating activities
Net income		5,647	2,023
Adjustments:
Deferred income tax expense		911	1,439
Stock-based compensation		1,857	1,298
Gain on legal settlement			(244)
Accretion of discounts on convertible subordinated debentures and promissory notes, net			(18)
Depreciation			(62)
Loss on sale of fixed assets			104
Undistributed equity in subsidiaries		(6,332)	(1,546)
Change in other assets		369	(282)
Change in other liabilities		(3,183)	4,635
Net cash provided (used) by operating activities		(731)	7,347
Cash flows from investing activities
Payments received on promissory notes from related parties		3,701
Investment in subsidiaries		(1,284)	(10,500)
Net cash used in investing activities		2,417	(10,500)
Cash flows from financing activities
Proceeds from issuance of Subordinated Notes			285
Payment on redemption of Subordinated Notes		(6,875)
Proceeds from issuance of common stock, net		34,450	5,255
Redemption of preferred stock Series A-C		(20,783)
Redemption of convertible preferred stock Series D		(4,054)
Redemption costs		(131)
Proceeds from issuance of common stock, net			6
Settlement of restricted stock		(181)
Payments on Credit note			(2,736)
Dividends paid on preferred stock		(1,378)	(2,291)
Net cash provided by financing activities		1,048	519
Net change in cash and cash equivalents		2,734	(2,634)
Cash and cash equivalents, beginning of year		6,935	9,569
Cash and cash equivalents, end of period		9,669	6,935
Supplemental noncash disclosures:
Reclass of promissory note to loans		$ 2,091
Expiration of convertible subordinated debentures			$ 4,749

SUPPLEMENTAL FINANCIAL DATA (De

SUPPLEMENTAL FINANCIAL DATA (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
SUPPLEMENTAL FINANCIAL DATA
Corporate development and related	$ 1,249	$ 1,384
Loan and deposit related	717	645
Office supplies and deliveries	209	250
Other	196	244
Total other non-interest expense	$ 2,371	$ 2,523

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
REGULATORY CAPITAL MATTERS
Capital conservation buffer		0.625%
Common Equity Tier 1 capital ratio including capital conservation buffer (as a percent)		6.375%
Tier 1 capital ratio including capital conservation buffer (as a percent)		7.875%
Total capital ratio including capital conservation buffer (as a percent0		9.875%
Number of conditions or events to be performed | item		0
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount		$ 94,335	$ 52,703
Actual Ratio (as a percent)		11.35%	6.56%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 94,335	$ 70,573
Actual Ratio (as a percent)		11.35%	8.79%
Total capital to risk-weighted assets
Actual Amount		$ 108,510	$ 93,903
Actual Ratio (as a percent)		13.06%	11.70%
Tier 1 capital to average assets
Actual Amount		$ 94,335	$ 70,573
Actual Ratio (as a percent)		9.28%	7.41%
Bank
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount		$ 87,291	$ 77,879
Actual Ratio (as a percent)		10.55%	9.81%
Required for Capital Adequacy Purposes Amount		$ 37,240	$ 35,719
Required for Capital Adequacy Purposes Ratio (as a percent)		4.50%	4.50%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 53,791	$ 51,595
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)		6.50%	6.50%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 87,291	$ 77,879
Actual Ratio (as a percent)		10.55%	9.81%
Required for Capital Adequacy Purposes Amount		$ 49,653	$ 47,626
Required for Capital Adequacy Purposes Amount (as a percent)		6.00%	6.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 66,204	$ 63,501
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)		8.00%	8.00%
Total capital to risk-weighted assets
Actual Amount		$ 94,906	$ 85,304
Actual Ratio (as a percent)		11.47%	10.75%
Required for Capital Adequacy Purposes Amount		$ 66,204	$ 63,501
Required for Capital Adequacy Purposes Ratio (as a percent)		8.00%	8.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 82,755	$ 79,377
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent)		10.00%	10.00%
Tier 1 capital to average assets
Actual Amount		$ 87,291	$ 77,879
Actual Ratio (as a percent)		8.63%	8.27%
Required for Capital Adequacy Purposes Amount		$ 40,459	$ 37,659
Required for Capital Adequacy Purposes Ratio (as a percent)		4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 50,574	$ 47,073
Tier One Leverage Capital Required to be Well Capitalized to Average Assets		5.00%	5.00%
Forecast
REGULATORY CAPITAL MATTERS
Capital conservation buffer	2.50%
Common Equity Tier 1 (CET 1) to risk-weighted assets
Required for Capital Adequacy Purposes Ratio (as a percent)	7.00%
Tier 1 capital to risk-weighted assets
Required for Capital Adequacy Purposes Amount (as a percent)	8.50%
Total capital to risk-weighted assets
Required for Capital Adequacy Purposes Ratio (as a percent)	10.50%