First Western Financial (MYFW) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document And Entity Information Abstract
Entity Registrant Name	First Western Financial Inc
Entity Central Index Key	0001327607
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,986,128
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Cash and cash equivalents:
Cash and due from banks	$ 3,828	$ 1,574
Interest-bearing deposits in other financial institutions	142,348	71,783
Total cash and cash equivalents	146,176	73,357
Available-for-sale securities	61,491	43,695
Correspondent bank stock, at cost	582	2,488
Mortgage loans held for sale	69,231	14,832
Loans, net of allowance of $7,675 and $7,451	918,911	886,515
Premises and equipment, net	5,483	6,100
Accrued interest receivable	2,968	2,844
Accounts receivable	4,978	4,492
Other receivables	865	1,391
Other real estate owned, net	658	658
Goodwill	19,686	24,811
Other intangible assets, net	36	402
Deferred tax assets, net	4,765	4,306
Company-owned life insurance	14,993	14,709
Other assets	17,549	3,724
Assets held for sale	3,553
Total assets	1,271,925	1,084,324
Deposits:
Noninterest-bearing	231,535	202,856
Interest-bearing	877,369	734,902
Total deposits	1,108,904	937,758
Borrowings:
Federal Home Loan Bank Topeka borrowings	10,000	15,000
Subordinated notes	6,560	6,560
Accrued interest payable	356	231
Other liabilities	20,262	7,900
Liabilities held for sale	111
Total liabilities	1,146,193	967,449
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preferred stock - no par value; 1,000,000 shares authorized; 0 issued and outstanding
Convertible preferred stock - no par value; 150,000 shares authorized; 0 shares issued and outstanding
Common stock - no par value; 10,000,000 shares authorized; 7,983,284 and 7,968,420 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
Additional paid-in capital	143,026	141,359
Accumulated deficit	(17,527)	(23,199)
Accumulated other comprehensive loss	233	(1,285)
Total shareholders’ equity	125,732	116,875
Total liabilities and shareholders’ equity	$ 1,271,925	$ 1,084,324

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Allowance for loans	$ 7,675	$ 7,451
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred Stock, shares authorized	1,000,000	1,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0	$ 0
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	7,983,284	7,968,420
Common Stock, shares outstanding	7,983,284	7,968,420
Series D
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred Stock, shares authorized	150,000	150,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income:
Loans, including fees	$ 10,672	$ 9,468	$ 31,490	$ 27,144
Investment securities	312	266	954	824
Federal funds sold and other	489	206	1,254	483
Total interest and dividend income	11,473	9,940	33,698	28,451
Interest expense:
Deposits	3,363	1,761	9,268	4,332
Other borrowed funds	170	391	559	1,394
Total interest expense	3,533	2,152	9,827	5,726
Net interest income	7,940	7,788	23,871	22,725
Less: provision for (recovery of) credit losses	100	18	216	(169)
Net interest income, after provision for (recovery of) credit losses	7,840	7,770	23,655	22,894
Non-interest income:
Trust and investment management fees	4,824	4,770	14,186	14,413
Net gain on mortgage loans sold	3,291	1,159	8,009	3,769
Bank fees	283	361	912	1,426
Risk management and insurance fees	176	249	838	916
Net gain on sale of securities	119		119
Income on company-owned life insurance	95	99	284	298
Total non-interest income	8,788	6,638	24,348	20,822
Total income before non-interest expense	16,628	14,408	48,003	43,716
Non-interest expense:
Salaries and employee benefits	8,504	7,221	23,821	23,061
Occupancy and equipment	1,388	1,427	4,193	4,439
Professional services	745	805	2,557	2,637
Technology and information systems	961	965	3,046	3,028
Data processing	854	697	2,282	2,024
Marketing	272	274	991	875
Amortization of other intangible assets	52	208	366	668
Goodwill impairment			1,572
Other	666	579	1,873	1,814
Total non-interest expense	13,442	12,176	40,701	38,546
Income (loss) before income tax	3,186	2,232	7,302	5,170
Income tax expense	780	543	1,865	1,247
Net income	2,406	1,689	5,437	3,923
Preferred stock dividends		(255)		(1,378)
Net income available to common shareholders	$ 2,406	$ 1,434	$ 5,437	$ 2,545
Earnings per common share:
Basic	$ 0.30	$ 0.19	$ 0.69	$ 0.40
Diluted	$ 0.30	$ 0.19	$ 0.69	$ 0.40

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 2,406	$ 1,689	$ 5,437	$ 3,923
Other comprehensive income (loss) items:
Net change in unrealized gains (losses) on available-for-sale securities	321	(373)	2,364	(1,219)
Income tax effects	(83)	136	(611)	309
Total other comprehensive income (loss)	238	(237)	1,753	(910)
Comprehensive income	$ 2,644	$ 1,452	$ 7,190	$ 3,013

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, 2017								$ 130,070			$ (27,296)	$ (928)			$ 101,846
Balance at Beginning (in shares) at Dec. 31, 2017		20,868		41,000	5,833,456
Increase (Decrease) in Stockholders' Equity
Net income											3,923				3,923
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 (in shares)					128,978
Reclassification of unrealized loss on equity securities											(41)	41
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												(951)			(951)
Settlement of share awards								(181)							(181)
Settlement of share awards (in shares)					16,969
Stock-based compensation								1,423							1,423
Preferred stock dividends											(1,378)				(1,378)
Balance at Ending at Sep. 30, 2018								140,925			(24,923)	(1,838)			114,164
Balance at Ending (in shares) at Sep. 30, 2018					7,968,420
Balance at Beginning at Jun. 30, 2018								132,785			(26,226)	(1,601)			104,958
Balance at Beginning (in shares) at Jun. 30, 2018		20,868		41,000	5,917,667
Increase (Decrease) in Stockholders' Equity
Net income											1,689				1,689
Issuance of common stock, net of issuance costs								32,541							32,541
Issuance of common stock (in shares)					1,921,775
Make whole share issuance (in shares)					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												(237)			(237)
Stock-based compensation								436							436
Preferred stock dividends											(255)				(255)
Balance at Ending at Sep. 30, 2018								140,925			(24,923)	(1,838)			114,164
Balance at Ending (in shares) at Sep. 30, 2018					7,968,420
Balance at Beginning at Dec. 31, 2018								141,359			(23,199)	(1,285)			116,875
Balance at Beginning (in shares) at Dec. 31, 2018					7,968,420
Increase (Decrease) in Stockholders' Equity
Net income											5,437				5,437
Adoption of ASU 2018-02 - Reclassification of stranded tax effect											235	(235)			235
Stock repurchase								(8)							(8)
Stock repurchase (in shares)					(582)
Other comprehensive loss, net of tax												1,753			1,753
Settlement of share awards								(110)							(110)
Settlement of share awards (in shares)					15,446
Stock-based compensation								1,785							1,785
Balance at Ending at Sep. 30, 2019								143,026			(17,527)	233			125,732
Balance at Ending (in shares) at Sep. 30, 2019					7,983,284
Balance at Beginning at Jun. 30, 2019								142,095			(19,933)	(5)			122,157
Balance at Beginning (in shares) at Jun. 30, 2019					7,983,866
Increase (Decrease) in Stockholders' Equity
Net income											2,406				2,406
Stock repurchase								(8)							(8)
Stock repurchase (in shares)					(582)
Other comprehensive loss, net of tax												238			238
Stock-based compensation								939							939
Balance at Ending at Sep. 30, 2019								$ 143,026			$ (17,527)	$ 233			$ 125,732
Balance at Ending (in shares) at Sep. 30, 2019					7,983,284

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Consolidated Statements of Shareholders’ Equity
Common stock issuance costs	$ 4,411

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 5,437	$ 3,923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,363	1,707
Deferred income tax expense	218	1,361
Stock-based compensation	1,785	1,423
Provision for (recovery of) credit losses	216	(169)
Net amortization of investment securities	118	150
Change in fair value of equity securities		11
Stock dividends received on correspondent bank stock	(25)	(111)
Increase in cash surrender value of company-owned life insurance	(284)	(298)
Net gain on mortgage loans sold	(8,009)	(3,769)
Origination of mortgage loans held for sale	(501,312)	(364,962)
Proceeds from mortgage loans sold	452,601	372,298
Proceeds from sale of securities	(119)
Loss on impairment of goodwill	1,572
Net changes in operating assets and liabilities:
Accounts receivable	(486)	856
Accrued interest receivable and other assets	(81)	(1,731)
Accrued interest payable and other liabilities	727	(2,132)
Net cash used in operating activities	(46,279)	8,557
Activity in available-for-sale securities:
Maturities, prepayments, and calls	6,202	11,663
Sales	7,506	250
Purchases	(29,750)	(250)
Purchases of correspondent bank stock	(1,237)	(726)
Redemption of correspondent bank stock	3,168
Purchases of premises and equipment	(380)	(525)
Payments received on promissory notes from related parties		3,701
Loan and note receivable originations and principal collections, net	(32,439)	(41,359)
Net cash used in investing activities	(46,930)	(27,246)
Cash flows from financing activities
Net change in deposits	171,146	62,522
Payments on Subordinated Notes		(6,875)
Proceeds from issuance of common stock, net		34,450
Repurchase of common stock	(8)
Settlement of restricted stock	(110)	(181)
Dividends paid on preferred stock		(1,378)
Redemption of preferred stock Series A-C		(20,783)
Redemption of preferred stock Series D		(4,054)
Redemption costs		(131)
Payments to Federal Home Loan Bank Topeka borrowings	(72,346)	(188,200)
Proceeds from Federal Home Loan Bank Topeka borrowings	67,346	204,235
Net cash provided by financing activities	166,028	79,605
Net change in cash and cash equivalents	72,819	60,916
Cash and cash equivalents, beginning of year	73,357	9,502
Cash and cash equivalents, end of period	146,176	70,418
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	9,702	5,712
Income tax payment, net of refunds received	1,562	552
Cash paid for amounts included in the measurement of lease liabilities	4,091
Supplemental noncash disclosures:
Reclass of promissory note to loans		2,134
Available-for-sale reclass of equity securities		703
Adoption of ASU 2018-02 - Reclassification of stranded tax effects	235
Reclass of unrealized loss on equity securities		$ 52
Lease right-of-use-asset obtained in exchange for lease liabilities	16,580
Reclass of held for sale assets net of liabilities	$ 3,442

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
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 condensed consolidated financial statements include the accounts of First Western Financial, Inc. (“FWFI”), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly‑owned subsidiaries listed below (collectively referred to as the “Company”). 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, Fort Collins and Vail Valley), 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 condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2018 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2018. In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of results that may be expected for the full year ending December 31, 2019. In preparing the condensed consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be significantly different from those estimates. The condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC. Consolidation : The Company’s policy is to consolidate all majority‑owned subsidiaries in which it has a controlling financial interest and variable‑interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. 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 September 30, 2019 and December 31, 2018, 71.5%, and 73.6%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. 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 three and nine months ended September 30, 2019 and the year ended December 31, 2018 were immaterial. Receivables are recorded on the condensed 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 condensed consolidated statement of operations for the three and nine months ended September 30, 2019 are considered in scope of Topic 606. 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. Adoption of new accounting standards : The following reflect recent accounting pronouncements that have been adopted by the Company 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 is 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 requires both types of leases to be recognized on the balance sheet. The ASU also requires 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 for the three months ended March 31, 2019, the Company recorded a right-of-use asset and related lease liability. We elected the modified retrospective transition approach. We also elected and applied 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. See Note 5 – Leases, for further information. 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 Tax Cuts and Jobs Act of 2017 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. Recently issued accounting pronouncements, not yet adopted : The following reflects a pending pronouncement with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2018. In February 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on the financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings and the allowance for loan losses as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 will be effective for most public companies on January 1, 2020. On July 17, 2019, the FASB voted to delay CECL implementation for certain companies including smaller reporting companies (“SRCs”) as defined by the SEC. The Company is designated as a SRC with the SEC. The proposed delay by FASB was subject to a comment period. At the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for SRCs to January 1, 2023. The proposal approved by the FASB on October 16 th has led to the creation of a framework for future standard setting where two “buckets” are used, allowing at least a two-year difference in the effective dates for major standards. The “buckets” the FASB proposed are SEC filers other than SRCs and all other companies including SRCs. The final amendment is expected later in 2019. During the three months ended September 30, 2019, the CECL committee of the Company continued to work through its implementation plan. The Company has integrated historical and current loan level data as required by CECL and is working with its third-party vendor solution to begin evaluating the methodologies available under the CECL model on its loan portfolios. The Company also continues to evaluate documentation requirements, internal control structure, relevant data sources, and system configurations. The Company has completed a successful integration of the required fields and historical data for key loan, customer and collateral data within the third-party solution and has been able to run parallels of our current ALLL calculation in the software to compare to our internal calculation and reconcile known differences. Currently, we are unable to estimate the impact the adoption of 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.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2019
INVESTMENT SECURITIES
INVESTMENT SECURITIES	NOTE 2 - 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 September 30, 2019 and December 31, 2018 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 5 $ — $ 255 Government National Mortgage Association mortgage-backed securities—residential (“GNMA”) 45,439 389 (93) 45,735 Federal National Mortgage Association mortgage-backed securities—residential (“FNMA”) 3,326 10 (27) 3,309 Securities issued by U.S. government sponsored entities and agencies — — — — Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”) 12,140 77 (25) 12,192 Total securities available-for-sale $ 61,155 $ 481 $ (145) $ 61,491 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 GNMA 35,591 8 (1,597) 34,002 FNMA 4,076 2 (208) 3,870 Securities issued by U.S. government sponsored entities and agencies 4,525 — (223) 4,302 Corporate CMO and MBS 1,281 1 (11) 1,271 Total securities available-for-sale $ 45,723 $ 11 $ (2,039) $ 43,695 At September 30, 2019, the amortized cost and estimated fair value of available‑for‑sale securities 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 September 30, 2019 Cost Value Due within one year through five years $ 250 $ 255 Securities (agency and CMO) 60,905 61,236 Total $ 61,155 $ 61,491 At September 30, 2019 and December 31, 2018, securities with carrying values totaling $5.9 million and $5.4 million, respectively, were pledged to secure various public deposits and credit facilities of the Company. At September 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity. At September 30, 2019 and December 31, 2018, ten securities and thirty-three securities, respectively were in an unrealized loss position, with unrealized losses totaling $0.1 million and $2.0 million, respectively. Three of the securities in an unrealized loss position at September 30, 2019 have been in a continuous unrealized loss position for more than twelve months, and the remaining securities in a loss position have been in a continuous unrealized loss position for less than twelve 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 September 30, 2019. The following table summarizes securities with unrealized losses at September 30, 2019 and December 31, 2018, 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 September 30, 2019 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ — $ — $ — $ — GNMA 1,439 (5) 4,584 (88) 6,023 (93) FNMA — — 2,737 (27) 2,737 (27) Corporate CMO and MBS 7,995 (25) — — 7,995 (25) Total $ 9,434 $ (30) $ 7,321 $ (115) $ 16,755 $ (145) 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 201 — 32,696 (1,597) 32,897 (1,597) FNMA 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) The Company sold $7.5 million of securities and realized $0.1 million of gains, from the sale of securities using the specific identification method for the three and nine months ended September 30, 2019. The Company did not sell any securities during the three and nine months ended September 30, 2018.

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
LOANS AND THE ALLOWANCE FOR LOAN LOSSES	NOTE 3 - LOANS AND THE ALLOWANCE FOR LOAN LOSSES The following presents a summary of the Company’s loans as of the dates noted (in thousands): September 30, December 31, 2019 2018 Cash, Securities and Other $ 146,622 $ 114,165 Construction and Development 42,059 31,897 1-4 Family Residential 366,238 350,852 Non-Owner Occupied CRE 138,753 173,741 Owner Occupied CRE 119,497 108,480 Commercial and Industrial 111,187 113,660 Total loans 924,356 892,795 Deferred costs, net 2,230 1,171 Allowance for loan losses (7,675) (7,451) Loans, net $ 918,911 $ 886,515 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 September 30, 2019 and December 31, 2018 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded September 30, 2019 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 339 $ — $ — $ 339 $ 146,283 $ 146,622 Construction and Development — — — — 42,059 42,059 1-4 Family Residential — — 1,213 1,213 365,025 366,238 Non-Owner Occupied CRE 902 — — 902 137,851 138,753 Owner Occupied CRE — — — — 119,497 119,497 Commercial and Industrial 4,599 — — 4,599 106,588 111,187 Total $ 5,840 $ — $ 1,213 $ 7,053 $ 917,303 $ 924,356 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 At September 30, 2019 and December 31, 2018, the Company had a 1‑4 Family Residential loan totaling $1.2 million, which was more than 90 days delinquent and accruing interest. 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): September 30, December 31, 2019 2018 Cash, Securities and Other $ 5,264 $ 11,252 Construction and Development — — 1-4 Family Residential — — Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 1,035 1,735 Total $ 6,299 $ 12,987 Non-accrual loans classified as TDR accounted for $6.1 million of the recorded investment at September 30, 2019 and $13.0 million at December 31, 2018, respectively. Non‑accrual loans are classified as impaired loans and individually evaluated for impairment. The following presents a summary of the unpaid principal balance of loans classified as TDRs by loan type and delinquency status as of the dates noted (in thousands): September 30, December 31, September 30, 2019 2018 2018 Accruing Commercial and Industrial $ 6,468 $ 4,848 $ — Nonaccrual Cash, Securities, and Other 5,017 11,252 — Commercial and Industrial 1,035 1,735 1,835 Allowance for loan associated with TDR (693) (940) (1,040) Net recorded investment $ 11,827 $ 16,895 $ 795 At September 30, 2019, the Company extended an additional $1.0 million to a Commercial and Industrial borrower with a loan classified as a TDR for operational needs as allowed under the commitment. The majority owner for this borrower provided $1.5 million of pledged cash as collateral in exchange for this additional funding. At December 31, 2018, the Company had not committed any additional funds to a borrower with a loan classified as a TDR. One Cash, Securities and Other loan, which was modified resulting in TDR status in the previous twelve months, has defaulted on the modified terms of the agreement one time in the three and nine months ended September 30, 2019. The Company did not modify any loans into a TDR for the three and nine months ended September 30, 2019. The Company modified two loans into a TDR for the year ended December 31, 2018. 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 extensionson the modified loans ranged from three months to a 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 table presents impaired loans by portfolio and related valuation allowance as of the periods presented (in thousands): September 30, 2019 December 31, 2018 Unpaid Allowance Unpaid Allowance Total Contractual for Total Contractual for Recorded Principal Loan Recorded Principal Loan Investment Balance Losses Investment Balance Losses Impaired loans with a valuation allowance: Commercial and Industrial $ 1,035 $ 1,035 $ 693 $ 1,735 $ 1,735 $ 940 Cash, Securities, and Other 247 247 247 — — — Total $ 1,282 $ 1,282 $ 940 $ 1,735 $ 1,735 $ 940 Impaired loans with no related valuation allowance: Commercial and Industrial $ 6,468 $ 6,468 $ — $ 4,848 $ 4,848 $ — Cash, Securities, and Other 5,017 5,017 — 11,252 11,252 — 1-4 Family Residential 1,213 1,213 — — — — Total $ 12,698 $ 12,698 $ — $ 16,100 $ 16,100 $ — Total impaired loans: Commercial and Industrial $ 7,503 $ 7,503 $ 693 $ 6,583 $ 6,583 $ 940 Cash, Securities, and Other 5,264 5,264 247 11,252 11,252 — 1-4 Family Residential 1,213 1,213 — — — — Total $ 13,980 $ 13,980 $ 940 $ 17,835 $ 17,835 $ 940 The recorded investment in loans in the previous tables excludes accrued interest and deferred loan fees and costs which are not material. Interest income, if any, was recognized on the cash basis on non-accrual loans. The average balance of impaired loans and interest income recognized on impaired loans during the three months ended September 30, 2019 and 2018 are included in the table below (in thousands): Three Months Ended September 30, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 1,035 $ — $ 1,835 $ — Cash, Securities, and Other 185 — — — Total $ 1,220 $ — $ 1,835 $ — Impaired loans with no related valuation allowance: Commercial and Industrial $ 5,958 $ 138 $ — $ — Cash, Securities, and Other 5,062 — 11,277 — 1-4 Family Residential 1,213 26 — — Total $ 12,233 $ 164 $ 11,277 $ — Total impaired loans: Commercial and Industrial $ 6,993 $ 138 $ 1,835 $ — Cash, Securities, and Other 5,247 — 11,277 — 1-4 Family Residential 1,213 26 — — Total $ 13,453 $ 164 $ 13,112 $ — The average balance of impaired loans and interest income recognized on impaired loans during the nine months ended September 30, 2019 and 2018 are included in the table below (in thousands): Nine Months Ended September 30, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 1,310 $ — $ 1,835 $ — Cash, Securities, and Other 185 — — — Total $ 1,495 $ — $ 1,835 $ — Impaired loans with no related valuation allowance: Commercial and Industrial $ 5,463 $ 326 $ — $ — Cash, Securities, and Other 8,088 — 11,388 — 1-4 Family Residential 1,213 77 — — Total $ 14,764 $ 403 $ 11,388 $ — Total impaired loans: Commercial and Industrial $ 6,773 $ 326 $ 1,835 $ — Cash, Securities, and Other 8,273 — 11,388 — 1-4 Family Residential 1,213 77 — — Total $ 16,259 $ 403 $ 13,223 $ — 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 three months ended September 30, 2019 Beginning balance $ 1,049 $ 290 $ 2,650 $ 1,086 $ 800 $ 1,700 $ 7,575 Provision for (recovery of) credit losses 258 18 27 (68) 76 (211) 100 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Changes in allowance for loan losses for the nine months ended September 30, 2019 Beginning balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Provision for (recovery of) credit losses 535 76 125 (246) 87 (361) 216 Charge-offs — — — — — — — Recoveries 8 — — — — — 8 Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Allowance for loan losses at September 30, 2019 allocated to loans evaluated for impairment: Individually $ 247 $ — $ — $ — $ — $ 693 $ 940 Collectively 1,060 308 2,677 1,018 876 796 6,735 Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Loans at September 30, 2019, evaluated for impairment: Individually $ 5,264 $ — $ 1,213 $ — $ — $ 7,503 $ 13,980 Collectively 141,358 42,059 365,025 138,753 119,497 103,684 910,376 Ending balance $ 146,622 $ 42,059 $ 366,238 $ 138,753 $ 119,497 $ 111,187 $ 924,356 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 three months ended September 30, 2018 Beginning balance $ 934 $ 227 $ 1,957 $ 1,199 $ 626 $ 2,157 $ 7,100 Provision for (recovery of) credit losses (94) 12 132 11 (22) (21) 18 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 840 $ 239 $ 2,089 $ 1,210 $ 604 $ 2,136 $ 7,118 Changes in allowance for loan losses for the nine months ended September 30, 2018 Beginning balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Provision for (recovery of) credit losses (226) 37 (194) (223) (147) 584 (169) Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 840 $ 239 $ 2,089 $ 1,210 $ 604 $ 2,136 $ 7,118 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 31,897 173,741 107,077 Ending balance $ 114,165 $ 31,897 $ 350,852 $ 173,741 $ $ 113,660 $ 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 as to 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 Company 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 September 30, 2019 and December 31, 2018 (in thousands): Special September 30, 2019 Pass Mention Substandard Total Cash, Securities and Other $ 141,358 $ — $ 5,264 $ 146,622 Construction and Development 42,059 — — 42,059 1-4 Family Residential 359,030 — 7,208 366,238 Non-Owner Occupied CRE 137,582 1,171 — 138,753 Owner Occupied CRE 119,497 — — 119,497 Commercial and Industrial 95,371 — 15,816 111,187 Total $ 894,897 $ 1,171 $ 28,288 $ 924,356 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 The Company had no loans graded doubtful as of September 30, 2019 and December 31, 2018 .

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2019
Goodwill.
Goodwill	NOTE 4 - GOODWILL Changes in the carrying amount of goodwill were as follows: Wealth Capital Management Management Consolidated Balance at December 31, 2018 $ 15,994 $ 8,817 $ 24,811 Impairment - (1,572) (1,572) Reclass of goodwill held for sale - (3,553) (3,553) Balance at September 30, 2019 $ 15,994 $ 3,692 $ 19,686 Goodwill is tested annually for impairment on October 31 or earlier upon the occurrence of certain events. During the second quarter of 2019, the Company received an unsolicited offer to purchase its Los Angeles-based fixed income team, a portion of the Capital Management segment. The Company determined the sale of a portion of this segment would benefit the Company by optimizing the cost structure and freeing up capital and resources to strengthen the Wealth Management and Mortgage segments. The Company determined that it was more likely than not that it would sign this agreement to dispose of a portion of this segment. The agreement to sell a portion of the Capital Management segment represented an event affecting a specific segment. As a result, the Company proceeded to perform an interim impairment test for the Capital Management segment. As part of the qualitative assessment, it did indicate that it was more likely than not that the carrying value of the Capital Management segment exceeded its fair value. Therefore, the Company proceeded to Step 1 of the interim goodwill impairment test. Step 1 of the goodwill impairment analysis includes the determination of the carrying value of the segment, including the existing goodwill, and estimating the fair value of the segment. If the carrying amount of a segment exceeds its fair value, we are required to perform Step 2 of the impairment test. To estimate the fair value of our segments, an independent valuation specialist assisted us and we used an income approach, specifically a discounted cash flow methodology, and a market approach. The discounted cash flow methodology includes assumptions for forecasted revenues, growth rates, discount rates, and market multiples, which all require significant judgment and estimates by management and are inherently uncertain. The fair value did not exceed the carrying value of the Capital Management segment at the time of testing. During the first half of 2019, the growth in revenue had not been realized at previously forecasted levels for the Capital Management segment. The Company had focused on revenue growth in the more core areas in Wealth Management and Mortgage. Our outlook for the Capital Management segment had declined driven by the lower market penetration and slower growth in assets under management which had negatively impacted our near-term earnings outlook for this segment. The sale would put the team into a group with distribution capabilities and a structure to support them. As such, this had caused a downward revision for our forecast on current and projected cash flows for the Capital Management segment which resulted in a lower fair value. Therefore, we conducted Step 2 of the goodwill impairment test for the Capital Management segment. Step 2 requires that we allocate the fair value of segment to identifiable assets and liabilities of the segment. Any residual fair value after this allocation is compared to the goodwill balance and any excess goodwill is charged to expense. As a result of our two step evaluation, we recorded a goodwill impairment loss of $1.6 million during the second quarter of 2019 in the Capital Management segment. As of September 30, 2019, there was $3.7 million of goodwill remaining in the Capital Management segment. As of September 30, 2019, there was an outstanding agreement with Lido Advisors, LCC for a portion of the Capital Management segment. As such, goodwill was allocated based on the relative fair value for the portion of the segment held for sale, in the amount of $3.6 million, and was reclassified to assets held for sale at the end of the third quarter 2019. As of September 30, 2019, the remaining value of goodwill in the Capital Management segment was $3.7 million. For events occurring after the period which pertain to this transaction see Note 17 – Subsequent Events.

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
LEASES
LEASES	NOTE 5 - LEASES A lease is defined as a contract that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company adopted ASC 842 on January 1, 2019 and recorded an initial right-of-use asset and related lease liability of $12.9 million and $16.6 million, respectively. There was no cumulative effect upon adoption. Leases in which the Company is determined to be the lessee are primarily operating leases comprised of real estate property and office space for our corporate headquarters and profit centers with terms that extend to 2025. Certain properties contain portions that are subleased with terms that extend through 2020. In accordance with ASC 842, operating leases are required to be recognized as a right-of-use asset with a corresponding lease liability. The following table presents the classification of the right-of-use asset and corresponding liability within the condensed consolidated balance sheet. The Company elected to not include short-term leases with initial terms of twelve months or less, on the condensed consolidated balance sheet. September 30, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 10,959 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 14,284 The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. September 30, 2019 Weighted-Average Remaining Lease Term Operating leases years Weighted-Average Discount Rate Operating leases % The Company’s operating leases contain fixed and variable lease components and it has elected to account for all classes of underlying assets as a single lease component. Variable lease costs primarily represent common area maintenance and parking. The following table represents the Company’s net lease costs. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Lease Costs Operating lease cost $ 810 $ 2,382 Variable lease cost 395 1,168 Sublease income (99) (298) Lease costs, net $ 1,106 $ 3,252 The Company recognized lease costs of $1.1 million and $3.4 million for the three and nine months ended September 30, 2018. The following table presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the first five years and total amounts thereafter as of September 30, 2019. Operating Leases Twelve Months Ended September 30, 2020 $ 3,601 September 30, 2021 2,941 September 30, 2022 2,683 September 30, 2023 2,462 September 30, 2024 2,241 Thereafter 1,768 Total future minimum lease payments $ 15,696 Less: Imputed interest (1,412) Present value of net future minimum lease payments $ 14,284 The following presents minimum lease payments due pursuant to the leases as of December 31, 2018 for the years indicated. Year Operating Leases 2019 $ 3,570 2020 3,374 2021 2,815 2022 2,675 2023 2,358 Thereafter 3,446 $ 18,238

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2019
DEPOSITS
DEPOSITS	NOTE 6 - DEPOSITS The following presents the Company’s interest-bearing deposits at the dates noted (in thousands): September 30, December 31, 2019 2018 Money market deposit accounts $ 620,434 $ 489,506 Time deposits 170,457 178,743 Negotiable order of withdrawal accounts 83,022 64,853 Savings accounts 3,456 1,800 Total interest bearing deposits $ 877,369 $ 734,902 Aggregate time deposits of $250,000 or greater $ 68,328 $ 83,550 Overdraft balances classified as loans totaled $0.3 million and $0.3 million at September 30, 2019 and December 31, 2018, respectively.

BORROWINGS

BORROWINGS	9 Months Ended
	Sep. 30, 2019
BORROWINGS
BORROWINGS	NOTE 7 - BORROWINGS FHLB Topeka Borrowings The Bank has executed a blanket pledge and security agreement with the Federal Home Loan Bank (“FHLB”) Topeka that requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of September 30, 2019 and December 31, 2018 amounted to $536.9 million and $475.4 million, respectively. Based on this collateral and the Company’s holdings of FHLB Topeka stock, the Company was eligible to borrow an additional $366.2 million at September 30, 2019. Each advance is payable at its maturity date. The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): September 30, December 31, Maturity Date Rate % 2019 2018 August 2, 2019 2.65 $ — $ 5,000 August 26, 2020 1.94 10,000 10,000 Total $ 10,000 $ 15,000 The Bank has borrowing capacity associated with three unsecured federal funds lines of credit up to $10.0 million, $19.0 million, and $25.0 million. As of September 30, 2019 and December 31, 2018, there were no amounts outstanding on any of the federal funds lines. The Company’s borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed “well capitalized” by federal banking agencies (see Note 16 – Regulatory Capital Matters). As of September 30, 2019 and December 31, 2018, the Company was in compliance with the covenant requirements.

COMMITMENTS AND COMMITMENTS AND

COMMITMENTS AND COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 8 - 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 condensed 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): September 30, 2019 December 31, 2018 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 35,724 $ 245,642 $ 33,571 $ 271,580 Standby letters of credit 65 23,499 40 23,508 Commitments to make loans to sell 81,158 — 17,207 — Commitments to make loans — 10,000 — — 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 The Company, from time to time, is 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 condensed consolidated financial statements.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	9 Months Ended
	Sep. 30, 2019
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY	NOTE 9 - SHAREHOLDERS’ EQUITY Common Stock The Company’s common stock has no par value and each holder of common stock is entitled to one vote for each share (though certain voting restrictions may exist on non‑vested restricted stock) held. On June 14, 2019, the Company announced that its Board of Directors had authorized a share repurchase program under which the Company may repurchase up to 300,000 shares of its common stock and that the Board of Governors of the Federal Reserve System advised the Company that it had no objection to the Company’s stock repurchase program. The repurchase program authorizes the Company to purchase its common stock from time to time in privately negotiated transactions, in the open market, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 plan promulgated by the Securities and Exchange Commissions, or otherwise in a manner that complies with applicable federal securities laws. The program will be in effect for a one-year period, with the timing of purchases and the number of shares repurchased under the program dependent upon a variety of factors including price, trading volume, corporate and regulatory requirements and market conditions. The repurchase program may be suspended or discontinued at any time without notice. During the three months ended September 30, 2019, the Company repurchased 582 shares at an average price of $14.00 and as of September 30, 2019, 299,418 shares may yet be purchased under the program. During the nine months ended September 30, 2019 the Company sold no shares of common stock. During the nine months ended September 30, 2018, the Company sold 67,242 shares of its common stock through a Private Placement Memorandum resulting in proceeds to the Company of $1.9 million (net of issuance costs of $0.1 million). During three and nine months ended September 30, 2018, the Company issued 16,969 shares of common stock upon the settlement of Time Vesting Units. Restricted Stock Awards As of September 30, 2019, the Restricted Stock Awards have a weighted-average grant date fair value of $28.50 per share. During the three months ended September 30, 2019 and 2018, the Company recognized stock based compensation expense of $0.5 million and $0.1 million, respectively, associated with Restricted Stock Awards. During the nine months ended September 30, 2019 and 2018, the Company has recognized compensation expense of $0.7 and $0.2 million for the Restricted Stock Awards, respectively. As of September 30, 2019, the Company has $1.9 million of unrecognized stock-based compensation expense related to the shares issued. As of September 30, 2019, the unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 3.0 years. Restricted Stock Awards representing 33,070 shares vested during the three and nine months ended September 30, 2019. Stock‑Based Compensation Plans As of September 30, 2019, there were a total of 648,414 shares available for issuance under the First Western Financial, Inc. 2016 Omnibus Incentive Plan (“the 2016 Plan”). If the Awards outstanding under the First Western 2008 Stock Incentive Plan (“the 2008 Plan”) or the 2016 Plan are forfeited, cancelled or terminated with no consideration paid to the Company, those amounts will increase the number of shares eligible to be granted under the 2016 Plan. Stock Options The Company did not grant any stock options during the nine months ended September 30, 2019 and 2018. During the three months ended September 30, 2019 and 2018, the Company recognized stock based compensation expense of $0.1 million and $0.1 million, respectively, associated with stock options. During the nine months ended September 30, 2019 and 2018, the Company recognized stock based compensation expense of $0.2 million and $0.4 million, respectively, associated with stock options. As of September 30, 2019, the Company has $0.3 million of unrecognized stock‑based compensation expense related to stock options which are unvested. As of September 30, 2019, the unrecognized cost is expected to be recognized over a weighted‑average period of approximately 0.8 of a year. The following summarizes activity for nonqualified stock options for the nine months ended September 30, 2019: : Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at beginning of year 465,947 $ 28.84 Granted — — Exercised — — Forfeited or expired (42,750) 27.72 Outstanding at end of period 423,197 $ 28.95 3.8 (a) Options fully vested / exercisable at September 30, 2019 380,216 $ 29.34 3.5 (a) ________________________________________ (a) Nonqualified stock options outstanding at the end of the period and those fully vested / exercisable had immaterial aggregate intrinsic values. As of September 30, 2019 and December 31, 2018, there were 380,216 and 402,872 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. Restricted Stock Units Pursuant to the 2016 Plan, the Company can grant associates and non‑associate directors long‑term cash and stock-based compensation. During the nine months ended September 30, 2019, 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 nine months ended September 30, 2019: Time Financial Market Vesting Performance Performance Units Units Units Outstanding at beginning of year 184,369 15,932 17,258 Granted 71,127 59,536 - Vested (23,281) - - Forfeited (22,824) (6,597) (1,933) Outstanding at end of period During the nine months ended September 30, 2019, the Company issued 15,446 shares of common stock upon the settlement of Time Vesting Units. The remaining 7,835 shares were surrendered with a combined market value at the dates of settlement of $0.1 million to cover employee withholding taxes. During the nine months ended September 30, 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 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 3,779 Time Vesting Units with a five‑year service period during the nine months ended September 30, 2019, that vest in equal installments of 50% on the third and fifth anniversaries of the grant date, assuming continuous employment through the scheduled vesting dates. The Company granted 67,348 Time Vesting Units with a five year service period in the nine months ended September 30, 2019, that vest in equal installments of 20% on the anniversary of the grant date, assuming continuous employment through the scheduled vesting dates. Time Vesting Units granted in 2019 have a weighted‑average grant‑date fair value of $13.80 per unit. During the three months ended September 30, 2019 and 2018, the Company recognized compensation expense of $0.3 million and $0.1 million, respectively, for Time Vesting Units. During the nine months ended September 30, 2019 and 2018, the Company recognized compensation expense of $0.7 million and $0.7 million, respectively, for Time Vesting Units. As of September 30, 2019, there was $3.7 million of unrecognized compensation expense related to Time Vesting Units. As of September 30, 2019, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of approximately 2.1 years. Financial Performance Units Granted Prior to 2019 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, 2019. 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. As of September 30, 2019, the Company is accruing at the maximum threshold for 50% of the awards and at 50% for the remainder. The maximum shares that can be issued at 150% as of September 30, 2019 was approximately 20,800 shares. During the nine months ended September 30, 2019 and 2018, the Company recognized an immaterial amount of compensation expense for the Financial Performance Units. As of September 30, 2019, there was $0.2 million of unrecognized compensation expense related to the Financial Performance Units. As of September 30, 2019, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of 2.3 years. Financial Performance Units Granted in 2019 On May 1, 2019, the Company granted an additional 59,536 Financial Performance Units to officers and other key employees. All Financial Performance Units granted on May 1, 2019, have a five-year term and are earned based on the Company achieving various financial metrics beginning on the grant date and ending on December 31, 2021, which include various thresholds from 0% to 150%, then the Financial Performance Units will have a subsequent two-year service period vesting requirement ending on December 31, 2023. As of September 30, 2019, the Company is accruing at the maximum threshold for the awards. The maximum shares that can be issued at 150% as of September 30, 2019 was approximately 82,500 shares. During the three months ended September 30, 2019, the Company recognized compensation expense of $0.1 million for the Financial Performance Units. As of September 30, 2019, there was $0.7 million of unrecognized compensation expense related to the Financial Performance Units. As of September 30, 2019, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of 4.3 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 three and nine months ended September 30, 2019 and 2018 the Company recognized an immaterial amount of compensation expense for the Market Performance Units. As of September 30, 2019, there was $0.4 million of unrecognized compensation expense related to the Market Performance Units which is expected to be recognized over a weighted‑average period of 2.75 years.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	NOTE 10 - 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): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Earnings per common share - Basic Numerator: Net income $ 2,406 $ 1,689 $ 5,437 $ 3,923 Dividends on preferred stock — (255) — (1,378) Net income available for common shareholders $ 2,406 $ 1,434 $ 5,437 $ 2,545 Denominator: Basic weighted average shares 7,890,794 7,373,770 7,882,221 6,321,511 Earnings per common share - basic $ 0.30 $ 0.19 $ 0.69 $ 0.40 Earnings per common share - Diluted Numerator: Net income $ 2,406 $ 1,689 $ 5,437 $ 3,923 Dividends on preferred stock — (255) — (1,378) Net income available for common shareholders $ 2,406 $ 1,434 $ 5,437 $ 2,545 Denominator: Basic weighted average shares 7,890,794 7,373,770 7,882,221 6,321,511 Diluted effect of common stock equivalents: Stock options — — — 20,860 Time Vesting Units 10,702 — 4,942 14,841 Financial Performance Units 123 — 41 6,505 Market Performance Units 13,175 15,075 13,357 5,025 Restricted Stock Awards — — — 3,509 Total diluted effect of common stock equivalents 24,000 15,075 18,340 50,740 Diluted weighted average shares 7,914,794 7,388,845 7,900,561 6,372,251 Earnings per common share - diluted $ 0.30 $ 0.19 $ 0.69 $ 0.40 Diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been anti‑dilutive. As of September 30, 2019 and 2018, potentially dilutive securities excluded from the diluted earnings per share calculation are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 423,197 467,947 438,364 296,949 Convertible Preferred D shares — — — — Time Vesting Units 130,821 168,962 163,141 157,454 Financial Performance Units 55,028 16,345 47,008 5,448 Market Performance Units — — — — Restricted Stock Awards 61,668 43,830 83,713 14,610 Total potentially dilutive securities 670,714 697,084 732,226 474,461

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
INCOME TAXES
INCOME TAXES	NOTE 11 - INCOME TAXES During the three and nine months ended September 30, 2019, the Company recorded an income tax provision of $0.8 million and $1.9 million, respectively, reflecting an effective tax rate of 24.5% and 25.5%, respectively. During the three and nine months ended September 30, 2018, the Company recorded an income tax provision of $0.5 million and $1.2 million, respectively, reflecting an effective tax rate of 24.3% and 24.1%, respectively.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2019
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 12 - RELATED‑PARTY TRANSACTIONS The Bank granted loans to principal officers and directors and their affiliates, all of whom are deemed related parties. At September 30, 2019 and December 31, 2018, 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): September 30, 2019 December 31, 2018 Balance, beginning of period $ 2,659 $ 14,077 Funded loans 8,295 1,466 Payments collected (6,146) (9,386) Changes in related parties — (3,498) Balance, end of period $ 4,808 $ 2,659 Deposits from related parties held by the Bank at September 30, 2019 and December 31, 2018 totaled $27.6 million and $36.7 million, respectively. The Company leases office space from an entity controlled by one of the Company’s board members. During the nine months ended September 30, 2019 and 2018, the Company incurred $0.1 million and an immaterial amount of expense related to this lease.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2019
FAIR VALUE
FAIR VALUE	NOTE 13 - 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 2019 and 2018. 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 2). Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument are accounted for within the condensed consolidated statements of income. The following presents assets measured on a recurring basis at September 30, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported September 30, 2019 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 255 $ — $ — $ 255 GNMA — 45,735 — 45,735 FNMA — 3,309 — 3,309 Securities issued by US. Government sponsored entities and agencies — — — — Corporate CMO and MBS — 12,192 — 12,192 Total securities available-for-sale $ 255 $ 61,236 $ — $ 61,491 Equity securities $ 718 $ — $ — $ 718 Interest rate lock and forward delivery commitments $ — $ 2,148 $ — $ 2,148 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 — 34,002 — 34,002 FNMA — 3,870 — 3,870 Securities issued by US. Government sponsored entities and agencies — 4,302 4,302 Corporate CMO and MBS — 1,271 — 1,271 Total securities available-for-sale $ 250 $ 43,445 $ — $ 43,695 Equity securities $ 693 $ — $ — $ 693 Interest rate lock and forward delivery commitments $ — $ 890 $ — $ 890 Equity securities 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 September 30, 2019 and December 31, 2018, the majority of the securities have credit support provided by the Federal Home Loan Mortgage Corporation, GNMA, and FNMA. Factors used to value the securities by the pricing service include: benchmark yields, reported trades, interest spreads, prepayments, and other market research. In addition, ratings and collateral quality are considered. As of September 30, 2019, equity securities have been recorded at fair value within the other assets line item in the condensed consolidated balance sheet with changes recorded in the other line item in the condensed consolidated statement of income. 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 quarterly 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 September 30, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported September 30, 2019 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 342 $ 342 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 impaired loans: Commercial and industrial $ — $ — $ 795 $ 795 The sales comparison approach was utilized for estimating the fair value of non‑recurring assets. At September 30, 2019, other real estate owned remained unchanged from December 31, 2018 and 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 September 30, 2019, total impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had carrying values of $1.3 million with valuation allowances of $0.9 million and were classified as Level 3. As of December 31, 2018, impaired loans measured for impairment using 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. Impaired loans valued using a discounted cash flow analyses were not deemed to be at fair value at September 30, 2019 and December 31, 2018. Impaired loans accounted for no provisions for loan losses for the three and nine months ended September 30, 2019. The following presents carrying amounts and estimated fair values for financial instruments as of September 30, 2019 and December 31, 2018 (in thousands): Carrying Fair Value Measurements Using: September 30, 2019 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 146,176 $ 146,176 $ — $ — Securities available-for-sale 61,491 255 61,236 — Loans, net 918,911 — — 899,750 Mortgage loans held for sale 69,231 — 69,231 — Accrued interest receivable 2,968 — 2,968 — Other assets 718 718 — — Liabilities: Deposits 1,108,904 — 1,111,853 — Borrowings: FHLB Topeka Borrowings – fixed rate 10,000 — 9,983 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,110 Accrued interest payable 356 — 356 — 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 43,695 250 43,445 — 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 — 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.

ASSETS AND LIABILITIES CLASSIFI

ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE	9 Months Ended
	Sep. 30, 2019
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE	NOTE 14 – ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE At June 30, 2019, the Company determined that it was more likely than not that it would sign an agreement to dispose of a portion of the Capital Management segment. See note 15 – Segment Reporting for further information. The Company proceeded to perform an interim impairment test for the Capital Management segment, as a result of this evaluation, an impairment loss of $1.6 million was recorded during the nine months ended September 30, 2019, no impairment loss was recorded during the three months ended September 30, 2019. See note 4 – Goodwill for further information. On July 19, 2019, the Company entered into an agreement to sell the Company’s Los Angeles-based fixed income portfolio management team to Lido Advisors, LLC and Oakhurst Advisors, LLC. As of September 30, 2019, the sale was not yet completed and the assets and related liabilities attributable to the sale, which were expected to be sold within twelve months, were classified as a disposal group held for sale and are presented separately in the consolidated balance sheet. On November 1, 2019, the Company announced the proposed sale of the Los Angeles-based fixed income portfolio management team and certain advisory and sub-advisory arrangements to Lido Advisors, LLC and Oakhurst Advisors, LLC was cancelled. Management will continue to evaluate other opportunities to divest the Los Angeles-based fixed income portfolio management team. As a result, the disposal group held for sale classification remains appropriate. Assets and liabilities in disposal groups held for sale are as follows at the dates noted (in thousands): September 30, December 31, 2019 2018 ASSETS Goodwill $ 3,553 $ — Assets in disposal groups held for sale $ 3,553 $ — LIABILITIES Other liabilities $ 111 $ — Liabilities in disposal groups held for sale $ 111 $ —

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 15 - 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. 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 listed 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 three months and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,473 $ — $ — $ 11,473 Total interest expense 3,533 — — 3,533 Provision for loan losses 100 — — 100 Net interest income 7,840 — — 7,840 Non-interest income 4,714 776 3,298 8,788 Total income 12,554 776 3,298 16,628 Depreciation and amortization expense 274 22 55 351 All other non-interest expense 10,434 701 1,956 13,091 Income before income tax $ 1,846 $ 53 $ 1,287 $ 3,186 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Assets held for sale — 3,553 — 3,553 Total assets $ 1,195,340 $ 8,528 $ 68,057 $ 1,271,925 Three Months Ended September 30, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 9,940 $ — $ — $ 9,940 Total interest expense 2,152 — — 2,152 Provision for loan losses 18 — — 18 Net interest income 7,770 — — 7,770 Non-interest income 4,613 850 1,175 6,638 Total income 12,383 850 1,175 14,408 Depreciation and amortization expense 323 130 104 557 All other non-interest expense 9,675 606 1,338 11,619 Income (loss) before income tax $ 2,385 $ 114 $ (267) $ 2,232 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,022,436 $ 9,853 $ 19,238 $ 1,051,527 Nine Months Ended September 30, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 33,698 $ - $ - $ 33,698 Total interest expense 9,827 - - 9,827 Provision for loan losses 216 - - 216 Net-interest income 23,655 - - 23,655 Non-interest income 13,956 2,339 8,053 24,348 Total income 37,611 2,339 8,053 48,003 Depreciation and amortization expense 902 248 197 1,347 All other non-interest expense 30,935 3,709 (1) 4,710 39,354 Income (loss) before income tax $ 5,774 $ (1,618) $ 3,146 $ 7,302 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Assets held for sale — 3,553 — 3,553 Total assets $ 1,195,340 $ 8,528 $ 68,057 $ 1,271,925 _______________________________________________ (1) Includes goodwill impairment charge of $1.6 million. Nine Months Ended September 30, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 28,451 $ — $ — $ 28,451 Total interest expense 5,726 — — 5,726 Recovery of loan losses (169) — — (169) Net-interest income 22,894 — — 22,894 Non-interest income 14,457 2,556 3,809 20,822 Total income 37,351 2,556 3,809 43,716 Depreciation and amortization expense 963 393 351 1,707 All other non-interest expense 29,839 2,882 4,118 36,839 Income (loss) before income tax $ 6,549 $ (719) $ (660) $ 5,170 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,022,436 $ 9,853 $ 19,238 $ 1,051,527

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	9 Months Ended
	Sep. 30, 2019
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS	NOTE 16 - 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. Management believes as of September 30, 2019, the Bank meets all capital adequacy requirements to which it is subject to. 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. 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 September 30, 2019, 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, that are fully effective in 2019, and resulted 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 increased each year until fully implemented in January 2019. An institution is 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 will establish a maximum percentage of eligible retained income that can be utilized for such activities. At September 30, 2019, required ratios including the capital conservation buffer were (i) CET 1 of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. As of September 30, 2019 and 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. There are no conditions or events since September 30, 2019, that the Company believes have changed the categorization of the Bank as well capitalized. Management believes the Bank met all capital adequacy requirements to which it was subject to as of September 30, 2019 and December 31, 2018. The following presents the actual and required capital amounts and ratios as of September 30, 2019 and December 31, 2018 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 96,495 10.98 % $ 39,547 4.5 % $ 57,123 6.5 % Consolidated 103,458 11.73 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 96,495 10.98 52,729 6.0 70,305 8.0 Consolidated 103,458 11.73 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 104,323 11.87 70,305 8.0 87,882 10.0 Consolidated 117,846 13.36 N/A N/A N/A N/A Tier 1 capital to average assets Bank 96,495 8.19 47,101 4.0 58,876 5.0 Consolidated 103,458 8.76 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, 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

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS On November 1, 2019, the Company cancelled the agreement to sell the Company’s Los Angeles-based fixed income portfolio management team, a portion of the Capital Management segment , to Lido Advisors, LLC and Oakhurst Advisors, LLC.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business and Basis of Presentation	Business and Basis of Presentation : The condensed consolidated financial statements include the accounts of First Western Financial, Inc. (“FWFI”), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly‑owned subsidiaries listed below (collectively referred to as the “Company”). 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, Fort Collins and Vail Valley), 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 condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2018 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2018. In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of results that may be expected for the full year ending December 31, 2019. In preparing the condensed consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be significantly different from those estimates. The condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC.
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.
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 September 30, 2019 and December 31, 2018, 71.5%, and 73.6%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. 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 three and nine months ended September 30, 2019 and the year ended December 31, 2018 were immaterial. Receivables are recorded on the condensed 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 condensed consolidated statement of operations for the three and nine months ended September 30, 2019 are considered in scope of Topic 606. 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. Adoption of new accounting standards : The following reflect recent accounting pronouncements that have been adopted by the Company 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 is 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 requires both types of leases to be recognized on the balance sheet. The ASU also requires 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 for the three months ended March 31, 2019, the Company recorded a right-of-use asset and related lease liability. We elected the modified retrospective transition approach. We also elected and applied 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. See Note 5 – Leases, for further information. 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 Tax Cuts and Jobs Act of 2017 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.
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 three and nine months ended September 30, 2019 and the year ended December 31, 2018 were immaterial. Receivables are recorded on the condensed 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 condensed consolidated statement of operations for the three and nine months ended September 30, 2019 are considered in scope of Topic 606.
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.
Adoption of new accounting standards and Recently issued accounting pronouncements, not yet adopted	Adoption of new accounting standards : The following reflect recent accounting pronouncements that have been adopted by the Company 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 is 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 requires both types of leases to be recognized on the balance sheet. The ASU also requires 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 for the three months ended March 31, 2019, the Company recorded a right-of-use asset and related lease liability. We elected the modified retrospective transition approach. We also elected and applied 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. See Note 5 – Leases, for further information. 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 Tax Cuts and Jobs Act of 2017 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. Recently issued accounting pronouncements, not yet adopted : The following reflects a pending pronouncement with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2018. In February 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on the financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings and the allowance for loan losses as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 will be effective for most public companies on January 1, 2020. On July 17, 2019, the FASB voted to delay CECL implementation for certain companies including smaller reporting companies (“SRCs”) as defined by the SEC. The Company is designated as a SRC with the SEC. The proposed delay by FASB was subject to a comment period. At the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for SRCs to January 1, 2023. The proposal approved by the FASB on October 16 th has led to the creation of a framework for future standard setting where two “buckets” are used, allowing at least a two-year difference in the effective dates for major standards. The “buckets” the FASB proposed are SEC filers other than SRCs and all other companies including SRCs. The final amendment is expected later in 2019. During the three months ended September 30, 2019, the CECL committee of the Company continued to work through its implementation plan. The Company has integrated historical and current loan level data as required by CECL and is working with its third-party vendor solution to begin evaluating the methodologies available under the CECL model on its loan portfolios. The Company also continues to evaluate documentation requirements, internal control structure, relevant data sources, and system configurations. The Company has completed a successful integration of the required fields and historical data for key loan, customer and collateral data within the third-party solution and has been able to run parallels of our current ALLL calculation in the software to compare to our internal calculation and reconcile known differences. Currently, we are unable to estimate the impact the adoption of 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. The Company expects to implement the new standard beginning January 1, 2023.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019 and December 31, 2018 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair September 30, 2019 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 5 $ — $ 255 Government National Mortgage Association mortgage-backed securities—residential (“GNMA”) 45,439 389 (93) 45,735 Federal National Mortgage Association mortgage-backed securities—residential (“FNMA”) 3,326 10 (27) 3,309 Securities issued by U.S. government sponsored entities and agencies — — — — Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”) 12,140 77 (25) 12,192 Total securities available-for-sale $ 61,155 $ 481 $ (145) $ 61,491 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ — $ — $ 250 GNMA 35,591 8 (1,597) 34,002 FNMA 4,076 2 (208) 3,870 Securities issued by U.S. government sponsored entities and agencies 4,525 — (223) 4,302 Corporate CMO and MBS 1,281 1 (11) 1,271 Total securities available-for-sale $ 45,723 $ 11 $ (2,039) $ 43,695
Summary of the amortized cost and estimated fair value of available for sale securities, excluding SBIC with contractual maturity dates	Amortized Fair September 30, 2019 Cost Value Due within one year through five years $ 250 $ 255 Securities (agency and CMO) 60,905 61,236 Total $ 61,155 $ 61,491
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 September 30, 2019 and December 31, 2018, 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 September 30, 2019 Value Losses Value Losses Value Losses U.S. Treasury debt $ — $ — $ — $ — $ — $ — GNMA 1,439 (5) 4,584 (88) 6,023 (93) FNMA — — 2,737 (27) 2,737 (27) Corporate CMO and MBS 7,995 (25) — — 7,995 (25) Total $ 9,434 $ (30) $ 7,321 $ (115) $ 16,755 $ (145) 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 201 — 32,696 (1,597) 32,897 (1,597) FNMA 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)

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2019
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): September 30, December 31, 2019 2018 Cash, Securities and Other $ 146,622 $ 114,165 Construction and Development 42,059 31,897 1-4 Family Residential 366,238 350,852 Non-Owner Occupied CRE 138,753 173,741 Owner Occupied CRE 119,497 108,480 Commercial and Industrial 111,187 113,660 Total loans 924,356 892,795 Deferred costs, net 2,230 1,171 Allowance for loan losses (7,675) (7,451) Loans, net $ 918,911 $ 886,515
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 September 30, 2019 and December 31, 2018 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded September 30, 2019 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 339 $ — $ — $ 339 $ 146,283 $ 146,622 Construction and Development — — — — 42,059 42,059 1-4 Family Residential — — 1,213 1,213 365,025 366,238 Non-Owner Occupied CRE 902 — — 902 137,851 138,753 Owner Occupied CRE — — — — 119,497 119,497 Commercial and Industrial 4,599 — — 4,599 106,588 111,187 Total $ 5,840 $ — $ 1,213 $ 7,053 $ 917,303 $ 924,356 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
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): September 30, December 31, 2019 2018 Cash, Securities and Other $ 5,264 $ 11,252 Construction and Development — — 1-4 Family Residential — — Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 1,035 1,735 Total $ 6,299 $ 12,987
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 by loan type and delinquency status as of the dates noted (in thousands): September 30, December 31, September 30, 2019 2018 2018 Accruing Commercial and Industrial $ 6,468 $ 4,848 $ — Nonaccrual Cash, Securities, and Other 5,017 11,252 — Commercial and Industrial 1,035 1,735 1,835 Allowance for loan associated with TDR (693) (940) (1,040) Net recorded investment $ 11,827 $ 16,895 $ 795
Summary of impaired loans by portfolio and related valuation allowance	The following table presents impaired loans by portfolio and related valuation allowance as of the periods presented (in thousands): September 30, 2019 December 31, 2018 Unpaid Allowance Unpaid Allowance Total Contractual for Total Contractual for Recorded Principal Loan Recorded Principal Loan Investment Balance Losses Investment Balance Losses Impaired loans with a valuation allowance: Commercial and Industrial $ 1,035 $ 1,035 $ 693 $ 1,735 $ 1,735 $ 940 Cash, Securities, and Other 247 247 247 — — — Total $ 1,282 $ 1,282 $ 940 $ 1,735 $ 1,735 $ 940 Impaired loans with no related valuation allowance: Commercial and Industrial $ 6,468 $ 6,468 $ — $ 4,848 $ 4,848 $ — Cash, Securities, and Other 5,017 5,017 — 11,252 11,252 — 1-4 Family Residential 1,213 1,213 — — — — Total $ 12,698 $ 12,698 $ — $ 16,100 $ 16,100 $ — Total impaired loans: Commercial and Industrial $ 7,503 $ 7,503 $ 693 $ 6,583 $ 6,583 $ 940 Cash, Securities, and Other 5,264 5,264 247 11,252 11,252 — 1-4 Family Residential 1,213 1,213 — — — — Total $ 13,980 $ 13,980 $ 940 $ 17,835 $ 17,835 $ 940 The recorded investment in loans in the previous tables excludes accrued interest and deferred loan fees and costs which are not material. Interest income, if any, was recognized on the cash basis on non-accrual loans. The average balance of impaired loans and interest income recognized on impaired loans during the three months ended September 30, 2019 and 2018 are included in the table below (in thousands): Three Months Ended September 30, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 1,035 $ — $ 1,835 $ — Cash, Securities, and Other 185 — — — Total $ 1,220 $ — $ 1,835 $ — Impaired loans with no related valuation allowance: Commercial and Industrial $ 5,958 $ 138 $ — $ — Cash, Securities, and Other 5,062 — 11,277 — 1-4 Family Residential 1,213 26 — — Total $ 12,233 $ 164 $ 11,277 $ — Total impaired loans: Commercial and Industrial $ 6,993 $ 138 $ 1,835 $ — Cash, Securities, and Other 5,247 — 11,277 — 1-4 Family Residential 1,213 26 — — Total $ 13,453 $ 164 $ 13,112 $ — The average balance of impaired loans and interest income recognized on impaired loans during the nine months ended September 30, 2019 and 2018 are included in the table below (in thousands): Nine Months Ended September 30, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 1,310 $ — $ 1,835 $ — Cash, Securities, and Other 185 — — — Total $ 1,495 $ — $ 1,835 $ — Impaired loans with no related valuation allowance: Commercial and Industrial $ 5,463 $ 326 $ — $ — Cash, Securities, and Other 8,088 — 11,388 — 1-4 Family Residential 1,213 77 — — Total $ 14,764 $ 403 $ 11,388 $ — Total impaired loans: Commercial and Industrial $ 6,773 $ 326 $ 1,835 $ — Cash, Securities, and Other 8,273 — 11,388 — 1-4 Family Residential 1,213 77 — — Total $ 16,259 $ 403 $ 13,223 $ —
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 three months ended September 30, 2019 Beginning balance $ 1,049 $ 290 $ 2,650 $ 1,086 $ 800 $ 1,700 $ 7,575 Provision for (recovery of) credit losses 258 18 27 (68) 76 (211) 100 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Changes in allowance for loan losses for the nine months ended September 30, 2019 Beginning balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Provision for (recovery of) credit losses 535 76 125 (246) 87 (361) 216 Charge-offs — — — — — — — Recoveries 8 — — — — — 8 Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Allowance for loan losses at September 30, 2019 allocated to loans evaluated for impairment: Individually $ 247 $ — $ — $ — $ — $ 693 $ 940 Collectively 1,060 308 2,677 1,018 876 796 6,735 Ending balance $ 1,307 $ 308 $ 2,677 $ 1,018 $ 876 $ 1,489 $ 7,675 Loans at September 30, 2019, evaluated for impairment: Individually $ 5,264 $ — $ 1,213 $ — $ — $ 7,503 $ 13,980 Collectively 141,358 42,059 365,025 138,753 119,497 103,684 910,376 Ending balance $ 146,622 $ 42,059 $ 366,238 $ 138,753 $ 119,497 $ 111,187 $ 924,356 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 three months ended September 30, 2018 Beginning balance $ 934 $ 227 $ 1,957 $ 1,199 $ 626 $ 2,157 $ 7,100 Provision for (recovery of) credit losses (94) 12 132 11 (22) (21) 18 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 840 $ 239 $ 2,089 $ 1,210 $ 604 $ 2,136 $ 7,118 Changes in allowance for loan losses for the nine months ended September 30, 2018 Beginning balance $ 1,066 $ 202 $ 2,283 $ 1,433 $ 751 $ 1,552 $ 7,287 Provision for (recovery of) credit losses (226) 37 (194) (223) (147) 584 (169) Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 840 $ 239 $ 2,089 $ 1,210 $ 604 $ 2,136 $ 7,118 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 31,897 173,741 107,077 Ending balance $ 114,165 $ 31,897 $ 350,852 $ 173,741 $ $ 113,660 $
Summary of recorded investment in the Company’s loans by class and by credit quality indicator	Special September 30, 2019 Pass Mention Substandard Total Cash, Securities and Other $ 141,358 $ — $ 5,264 $ 146,622 Construction and Development 42,059 — — 42,059 1-4 Family Residential 359,030 — 7,208 366,238 Non-Owner Occupied CRE 137,582 1,171 — 138,753 Owner Occupied CRE 119,497 — — 119,497 Commercial and Industrial 95,371 — 15,816 111,187 Total $ 894,897 $ 1,171 $ 28,288 $ 924,356 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

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill.
Schedule of changes in carrying amount of goodwill	Wealth Capital Management Management Consolidated Balance at December 31, 2018 $ 15,994 $ 8,817 $ 24,811 Impairment - (1,572) (1,572) Reclass of goodwill held for sale - (3,553) (3,553) Balance at September 30, 2019 $ 15,994 $ 3,692 $ 19,686

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
LEASES
Lease Balance Sheet Location	The following table presents the classification of the right-of-use asset and corresponding liability within the condensed consolidated balance sheet. The Company elected to not include short-term leases with initial terms of twelve months or less, on the condensed consolidated balance sheet. September 30, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 10,959 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 14,284 The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. September 30, 2019 Weighted-Average Remaining Lease Term Operating leases years Weighted-Average Discount Rate Operating leases %
Lease Costs	The following table represents the Company’s net lease costs. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Lease Costs Operating lease cost $ 810 $ 2,382 Variable lease cost 395 1,168 Sublease income (99) (298) Lease costs, net $ 1,106 $ 3,252
Summary of Minimum Lease Payments	The Company recognized lease costs of $1.1 million and $3.4 million for the three and nine months ended September 30, 2018. The following table presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the first five years and total amounts thereafter as of September 30, 2019. Operating Leases Twelve Months Ended September 30, 2020 $ 3,601 September 30, 2021 2,941 September 30, 2022 2,683 September 30, 2023 2,462 September 30, 2024 2,241 Thereafter 1,768 Total future minimum lease payments $ 15,696 Less: Imputed interest (1,412) Present value of net future minimum lease payments $ 14,284
Schedule of Minimum Lease Payments Due	The following presents minimum lease payments due pursuant to the leases as of December 31, 2018 for the years indicated. Year Operating Leases 2019 $ 3,570 2020 3,374 2021 2,815 2022 2,675 2023 2,358 Thereafter 3,446 $ 18,238

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2019
DEPOSITS
Schedule of interest bearing deposits	The following presents the Company’s interest-bearing deposits at the dates noted (in thousands): September 30, December 31, 2019 2018 Money market deposit accounts $ 620,434 $ 489,506 Time deposits 170,457 178,743 Negotiable order of withdrawal accounts 83,022 64,853 Savings accounts 3,456 1,800 Total interest bearing deposits $ 877,369 $ 734,902 Aggregate time deposits of $250,000 or greater $ 68,328 $ 83,550

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2019
BORROWINGS
Schedule of borrowings from FHLB Topeka	The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): September 30, December 31, Maturity Date Rate % 2019 2018 August 2, 2019 2.65 $ — $ 5,000 August 26, 2020 1.94 10,000 10,000 Total $ 10,000 $ 15,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2019
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): September 30, 2019 December 31, 2018 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 35,724 $ 245,642 $ 33,571 $ 271,580 Standby letters of credit 65 23,499 40 23,508 Commitments to make loans to sell 81,158 — 17,207 — Commitments to make loans — 10,000 — —

SHAREHOLDERS EQUITY (Tables)

SHAREHOLDERS EQUITY (Tables)	9 Months Ended
	Sep. 30, 2019
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 465,947 $ 28.84 Granted — — Exercised — — Forfeited or expired (42,750) 27.72 Outstanding at end of period 423,197 $ 28.95 3.8 (a) Options fully vested / exercisable at September 30, 2019 380,216 $ 29.34 3.5 (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 184,369 15,932 17,258 Granted 71,127 59,536 - Vested (23,281) - - Forfeited (22,824) (6,597) (1,933) Outstanding at end of period

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
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): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Earnings per common share - Basic Numerator: Net income $ 2,406 $ 1,689 $ 5,437 $ 3,923 Dividends on preferred stock — (255) — (1,378) Net income available for common shareholders $ 2,406 $ 1,434 $ 5,437 $ 2,545 Denominator: Basic weighted average shares 7,890,794 7,373,770 7,882,221 6,321,511 Earnings per common share - basic $ 0.30 $ 0.19 $ 0.69 $ 0.40 Earnings per common share - Diluted Numerator: Net income $ 2,406 $ 1,689 $ 5,437 $ 3,923 Dividends on preferred stock — (255) — (1,378) Net income available for common shareholders $ 2,406 $ 1,434 $ 5,437 $ 2,545 Denominator: Basic weighted average shares 7,890,794 7,373,770 7,882,221 6,321,511 Diluted effect of common stock equivalents: Stock options — — — 20,860 Time Vesting Units 10,702 — 4,942 14,841 Financial Performance Units 123 — 41 6,505 Market Performance Units 13,175 15,075 13,357 5,025 Restricted Stock Awards — — — 3,509 Total diluted effect of common stock equivalents 24,000 15,075 18,340 50,740 Diluted weighted average shares 7,914,794 7,388,845 7,900,561 6,372,251 Earnings per common share - diluted $ 0.30 $ 0.19 $ 0.69 $ 0.40
Schedule of Antidilutive securities	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 423,197 467,947 438,364 296,949 Convertible Preferred D shares — — — — Time Vesting Units 130,821 168,962 163,141 157,454 Financial Performance Units 55,028 16,345 47,008 5,448 Market Performance Units — — — — Restricted Stock Awards 61,668 43,830 83,713 14,610 Total potentially dilutive securities 670,714 697,084 732,226 474,461

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2019
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): September 30, 2019 December 31, 2018 Balance, beginning of period $ 2,659 $ 14,077 Funded loans 8,295 1,466 Payments collected (6,146) (9,386) Changes in related parties — (3,498) Balance, end of period $ 4,808 $ 2,659

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2019
FAIR VALUE
Summary of assets measured at fair value on recurring basis	The following presents assets measured on a recurring basis at September 30, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported September 30, 2019 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 255 $ — $ — $ 255 GNMA — 45,735 — 45,735 FNMA — 3,309 — 3,309 Securities issued by US. Government sponsored entities and agencies — — — — Corporate CMO and MBS — 12,192 — 12,192 Total securities available-for-sale $ 255 $ 61,236 $ — $ 61,491 Equity securities $ 718 $ — $ — $ 718 Interest rate lock and forward delivery commitments $ — $ 2,148 $ — $ 2,148 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 — 34,002 — 34,002 FNMA — 3,870 — 3,870 Securities issued by US. Government sponsored entities and agencies — 4,302 4,302 Corporate CMO and MBS — 1,271 — 1,271 Total securities available-for-sale $ 250 $ 43,445 $ — $ 43,695 Equity securities $ 693 $ — $ — $ 693 Interest rate lock and forward delivery commitments $ — $ 890 $ — $ 890
Summary of assets measured at fair value on nonrecurring basis	The following presents assets measured on a nonrecurring basis as of September 30, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported September 30, 2019 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 342 $ 342 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 impaired loans: Commercial and industrial $ — $ — $ 795 $ 795
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 September 30, 2019 and December 31, 2018 (in thousands): Carrying Fair Value Measurements Using: September 30, 2019 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 146,176 $ 146,176 $ — $ — Securities available-for-sale 61,491 255 61,236 — Loans, net 918,911 — — 899,750 Mortgage loans held for sale 69,231 — 69,231 — Accrued interest receivable 2,968 — 2,968 — Other assets 718 718 — — Liabilities: Deposits 1,108,904 — 1,111,853 — Borrowings: FHLB Topeka Borrowings – fixed rate 10,000 — 9,983 — 2016 Subordinated notes – fixed-to-floating rate 6,560 — — 6,110 Accrued interest payable 356 — 356 — 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 43,695 250 43,445 — 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 —

ASSETS AND LIABILITIES CLASSI_2

ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2019
ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
Schedule of assets and liabilities in disposal groups held for sale	Assets and liabilities in disposal groups held for sale are as follows at the dates noted (in thousands): September 30, December 31, 2019 2018 ASSETS Goodwill $ 3,553 $ — Assets in disposal groups held for sale $ 3,553 $ — LIABILITIES Other liabilities $ 111 $ — Liabilities in disposal groups held for sale $ 111 $ —

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
Schedule of segment data	Three Months Ended September 30, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,473 $ — $ — $ 11,473 Total interest expense 3,533 — — 3,533 Provision for loan losses 100 — — 100 Net interest income 7,840 — — 7,840 Non-interest income 4,714 776 3,298 8,788 Total income 12,554 776 3,298 16,628 Depreciation and amortization expense 274 22 55 351 All other non-interest expense 10,434 701 1,956 13,091 Income before income tax $ 1,846 $ 53 $ 1,287 $ 3,186 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Assets held for sale — 3,553 — 3,553 Total assets $ 1,195,340 $ 8,528 $ 68,057 $ 1,271,925 Three Months Ended September 30, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 9,940 $ — $ — $ 9,940 Total interest expense 2,152 — — 2,152 Provision for loan losses 18 — — 18 Net interest income 7,770 — — 7,770 Non-interest income 4,613 850 1,175 6,638 Total income 12,383 850 1,175 14,408 Depreciation and amortization expense 323 130 104 557 All other non-interest expense 9,675 606 1,338 11,619 Income (loss) before income tax $ 2,385 $ 114 $ (267) $ 2,232 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,022,436 $ 9,853 $ 19,238 $ 1,051,527 Nine Months Ended September 30, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 33,698 $ - $ - $ 33,698 Total interest expense 9,827 - - 9,827 Provision for loan losses 216 - - 216 Net-interest income 23,655 - - 23,655 Non-interest income 13,956 2,339 8,053 24,348 Total income 37,611 2,339 8,053 48,003 Depreciation and amortization expense 902 248 197 1,347 All other non-interest expense 30,935 3,709 (1) 4,710 39,354 Income (loss) before income tax $ 5,774 $ (1,618) $ 3,146 $ 7,302 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Assets held for sale — 3,553 — 3,553 Total assets $ 1,195,340 $ 8,528 $ 68,057 $ 1,271,925 _______________________________________________ (1) Includes goodwill impairment charge of $1.6 million. Nine Months Ended September 30, 2018 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 28,451 $ — $ — $ 28,451 Total interest expense 5,726 — — 5,726 Recovery of loan losses (169) — — (169) Net-interest income 22,894 — — 22,894 Non-interest income 14,457 2,556 3,809 20,822 Total income 37,351 2,556 3,809 43,716 Depreciation and amortization expense 963 393 351 1,707 All other non-interest expense 29,839 2,882 4,118 36,839 Income (loss) before income tax $ 6,549 $ (719) $ (660) $ 5,170 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,022,436 $ 9,853 $ 19,238 $ 1,051,527

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	9 Months Ended
	Sep. 30, 2019
REGULATORY CAPITAL MATTERS
Schedule of actual and required capital ratios	The following presents the actual and required capital amounts and ratios as of September 30, 2019 and December 31, 2018 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1(CET1) to risk-weighted assets Bank $ 96,495 10.98 % $ 39,547 4.5 % $ 57,123 6.5 % Consolidated 103,458 11.73 N/A N/A N/A N/A Tier 1 capital to risk-weighted assets Bank 96,495 10.98 52,729 6.0 70,305 8.0 Consolidated 103,458 11.73 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 104,323 11.87 70,305 8.0 87,882 10.0 Consolidated 117,846 13.36 N/A N/A N/A N/A Tier 1 capital to average assets Bank 96,495 8.19 47,101 4.0 58,876 5.0 Consolidated 103,458 8.76 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, 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

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Customer concentration | Loan portfolio
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	71.50%	73.60%

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 61,155	$ 45,723
Gross Unrealized Gains	481	11
Gross Unrealized Losses	(145)	(2,039)
Fair Value	61,491	43,695
U.S. Treasury debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	250	250
Gross Unrealized Gains	5
Fair Value	255	250
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	45,439	35,591
Gross Unrealized Gains	389	8
Gross Unrealized Losses	(93)	(1,597)
Fair Value	45,735	34,002
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,326	4,076
Gross Unrealized Gains	10	2
Gross Unrealized Losses	(27)	(208)
Fair Value	3,309	3,870
Securities issued by U.S. government sponsored entities and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		4,525
Gross Unrealized Losses		(223)
Fair Value		4,302
Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12,140	1,281
Gross Unrealized Gains	77	1
Gross Unrealized Losses	(25)	(11)
Fair Value	$ 12,192	$ 1,271

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 61,155	$ 45,723
Fair Value	61,491	43,695
Debt available for sale securities pledged as collateral	$ 5,900	$ 5,400
Threshold Percentage Of Shareholders Equity Amount Held As Securities By One Issuer	10.00%	10.00%
Unrealized loss	$ 145	$ 2,039
Number of securities in continuous unrealized loss position for more than twelve months | security	3
Available for sale securities, excluding SBIC
Debt Securities, Available-for-sale [Line Items]
Due within one year through five years amortized cost	$ 250
Due within one year through five years fair value	255
Mortgage-related securities, amortized cost	60,905
Mortgage-related securities, fair value	61,236
Amortized Cost	61,155
Fair Value	$ 61,491
Number of securities in unrealized loss position | security	10	33

INVESTMENT SECURITIES - Securit

INVESTMENT SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 9,434		$ 9,434		$ 1,782
Less than 12 months, Unrealized Losses	(30)		(30)		(12)
More than 12 months, Fair Value	7,321		7,321		40,276
More than 12 months, Unrealized Losses	(115)		(115)		(2,027)
Total Fair Value	16,755		16,755		42,058
Total Unrealized Losses	(145)		(145)		(2,039)
Sales	7,500	$ 0	7,500	$ 0
Realized gains	100		100
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	1,439		1,439		201
Less than 12 months, Unrealized Losses	(5)		(5)
More than 12 months, Fair Value	4,584		4,584		32,696
More than 12 months, Unrealized Losses	(88)		(88)		(1,597)
Total Fair Value	6,023		6,023		32,897
Total Unrealized Losses	(93)		(93)		(1,597)
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value					436
Less than 12 months, Unrealized Losses					(3)
More than 12 months, Fair Value	2,737		2,737		3,215
More than 12 months, Unrealized Losses	(27)		(27)		(205)
Total Fair Value	2,737		2,737		3,651
Total Unrealized Losses	(27)		(27)		(208)
Securities issued by U.S. government sponsored entities and agencies
Debt Securities, Available-for-sale [Line Items]
More than 12 months, Fair Value					4,302
More than 12 months, Unrealized Losses					(223)
Total Fair Value					4,302
Total Unrealized Losses					(223)
Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”)
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	7,995		7,995		1,145
Less than 12 months, Unrealized Losses	(25)		(25)		(9)
More than 12 months, Fair Value					63
More than 12 months, Unrealized Losses					(2)
Total Fair Value	7,995		7,995		1,208
Total Unrealized Losses	$ (25)		$ (25)		$ (11)

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 924,356	$ 892,795
Deferred costs, net	2,230	1,171
Allowance for loan losses	(7,675)	(7,451)
Net loans	918,911	886,515
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	146,622	114,165
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	42,059	31,897
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	366,238	350,852
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	138,753	173,741
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	119,497	108,480
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 111,187	$ 113,660

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	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 7,053	$ 15,102
Total current	917,303	877,693
Total Recorded Investment	924,356	892,795
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,840	898
90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,213	14,204
Cash, Securities and Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	339	11,583
Total current	146,283	102,582
Total Recorded Investment	146,622	114,165
Cash, Securities and Other | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	339	331
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	42,059	31,897
Total Recorded Investment	42,059	31,897
1-4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,213	1,217
Total current	365,025	349,635
Total Recorded Investment	366,238	350,852
1-4 Family Residential | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,213	1,217
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	902	567
Total current	137,851	173,174
Total Recorded Investment	138,753	173,741
Non-Owner Occupied CRE | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	902	567
Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	119,497	108,480
Total Recorded Investment	119,497	108,480
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,599	1,735
Total current	106,588	111,925
Total Recorded Investment	111,187	113,660
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 4,599
Commercial and Industrial | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		$ 1,735

LOANS AND THE ALLOWANCE FOR L_5

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in non-accrual loans by class (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 6,299	$ 12,987
Recorded investments	6,100	13,000
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	5,264	11,252
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 1,035	$ 1,735

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 ($)loan	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 17,835	$ 13,980
Allowance for loan associated with TDR	(940)	(940)
Net recorded investment	$ 16,895	11,827	$ 795
Additional funds to loans classified as TDRs		1,000
Cash collateral received		1,500
Number of contracts modified | loan	2
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 11,252	5,264
Allowance for loan associated with TDR		(247)
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment		1,213
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	6,583	7,503
Allowance for loan associated with TDR	(940)	(693)	(1,040)
Accrual Loans | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs		6,468
Total Recorded Investment	4,848
Loans on nonaccrual status | Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs		5,017
Total Recorded Investment	11,252
Loans on nonaccrual status | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as TDRs		$ 1,035
Total Recorded Investment	$ 1,735		$ 1,835

LOANS AND THE ALLOWANCE FOR L_7

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in impaired loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance	$ 1,282		$ 1,282		$ 1,735
Total Recorded Investment With No Allowance	12,698		12,698		16,100
Impaired Financing Receivable, Recorded Investment, Total	13,980		13,980		17,835
Unpaid Contractual Principal Balance with a valuation Allowance	1,282		1,282		1,735
Unpaid Contractual Principal Balance with no related valuation Allowance	12,698		12,698		16,100
Impaired Financing Receivable, Unpaid Principal Balance, Total	13,980		13,980		17,835
Allowance for Loan Losses	940		940		940
Average Recorded Investment with Allowance	1,220	$ 1,835	1,495	$ 1,835
Average Recorded Investment with No Allowance	12,233	11,277	14,764	11,388
Average Recorded Investment	13,453	13,112	16,259	13,223
Interest Income Recognized with No Allowance	164		403
Interest Income Recognized	164		403
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance	1,035		1,035		1,735
Total Recorded Investment With No Allowance	6,468		6,468		4,848
Impaired Financing Receivable, Recorded Investment, Total	7,503		7,503		6,583
Unpaid Contractual Principal Balance with a valuation Allowance	1,035		1,035		1,735
Unpaid Contractual Principal Balance with no related valuation Allowance	6,468		6,468		4,848
Impaired Financing Receivable, Unpaid Principal Balance, Total	7,503		7,503		6,583
Allowance for Loan Losses	693	1,040	693	1,040	940
Average Recorded Investment with Allowance	1,035	1,835	1,310	1,835
Average Recorded Investment with No Allowance	5,958		5,463
Average Recorded Investment	6,993	1,835	6,773	1,835
Interest Income Recognized with No Allowance	138		326
Interest Income Recognized	138		326
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance	247		247
Total Recorded Investment With No Allowance	5,017		5,017		11,252
Impaired Financing Receivable, Recorded Investment, Total	5,264		5,264		11,252
Unpaid Contractual Principal Balance with a valuation Allowance	247		247
Unpaid Contractual Principal Balance with no related valuation Allowance	5,017		5,017		11,252
Impaired Financing Receivable, Unpaid Principal Balance, Total	5,264		5,264		$ 11,252
Allowance for Loan Losses	247		247
Average Recorded Investment with Allowance	185		185
Average Recorded Investment with No Allowance	5,062	11,277	8,088	11,388
Average Recorded Investment	5,247	$ 11,277	8,273	$ 11,388
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	1,213		1,213
Impaired Financing Receivable, Recorded Investment, Total	1,213		1,213
Unpaid Contractual Principal Balance with no related valuation Allowance	1,213		1,213
Impaired Financing Receivable, Unpaid Principal Balance, Total	1,213		1,213
Average Recorded Investment with No Allowance	1,213		1,213
Average Recorded Investment	1,213		1,213
Interest Income Recognized with No Allowance	26		77
Interest Income Recognized	$ 26		$ 77

LOANS AND THE ALLOWANCE FOR L_8

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 7,575	$ 7,100	$ 7,451	$ 7,287
Provision for (recovery of) credit losses	100	18	216	(169)
Recoveries			8
Ending balance	7,675	7,118	7,675	7,118
Individually evaluated	940		940		$ 6,511
Collectively evaluated	6,735		6,735		940
Loans individually evaluated	13,980		13,980		17,835
Loans collectively evaluated	910,376		910,376		874,960
Total Recorded Investment	924,356		924,356		892,795
Cash, Securities and Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,049	934	764	1,066
Provision for (recovery of) credit losses	258	(94)	535	(226)
Recoveries			8
Ending balance	1,307	840	1,307	840
Individually evaluated	247		247		764
Collectively evaluated	1,060		1,060
Loans individually evaluated	5,264		5,264		11,252
Loans collectively evaluated	141,358		141,358		102,913
Total Recorded Investment	146,622		146,622		114,165
Construction and Development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	290	227	232	202
Provision for (recovery of) credit losses	18	12	76	37
Ending balance	308	239	308	239
Individually evaluated					232
Collectively evaluated	308		308
Loans collectively evaluated	42,059		42,059		31,897
Total Recorded Investment	42,059		42,059		31,897
1-4 Family Residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,650	1,957	2,552	2,283
Provision for (recovery of) credit losses	27	132	125	(194)
Ending balance	2,677	2,089	2,677	2,089
Individually evaluated					2,552
Collectively evaluated	2,677		2,677
Loans individually evaluated	1,213		1,213
Loans collectively evaluated	365,025		365,025		350,852
Total Recorded Investment	366,238		366,238		350,852
Non-Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,086	1,199	1,264	1,433
Provision for (recovery of) credit losses	(68)	11	(246)	(223)
Ending balance	1,018	1,210	1,018	1,210
Individually evaluated					1,264
Collectively evaluated	1,018		1,018
Loans collectively evaluated	138,753		138,753		173,741
Total Recorded Investment	138,753		138,753		173,741
Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	800	626	789	751
Provision for (recovery of) credit losses	76	(22)	87	(147)
Ending balance	876	604	876	604
Individually evaluated					789
Collectively evaluated	876		876
Loans collectively evaluated	119,497		119,497		108,480
Total Recorded Investment	119,497		119,497		108,480
Commercial and Industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,700	2,157	1,850	1,552
Provision for (recovery of) credit losses	(211)	(21)	(361)	584
Ending balance	1,489	$ 2,136	1,489	$ 2,136
Individually evaluated	693		693		910
Collectively evaluated	796		796		940
Loans individually evaluated	7,503		7,503		6,583
Loans collectively evaluated	103,684		103,684		107,077
Total Recorded Investment	$ 111,187		$ 111,187		$ 113,660

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in company's loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 924,356	$ 892,795
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	894,897	859,018
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,171	8,117
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	28,288	25,660
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Cash, Securities and Other
Financing Receivable, Recorded Investment [Line Items]
Total loans	146,622	114,165
Cash, Securities and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	141,358	102,913
Cash, Securities and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,264	11,252
Construction and Development
Financing Receivable, Recorded Investment [Line Items]
Total loans	42,059	31,897
Construction and Development | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	42,059	31,897
1-4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total loans	366,238	350,852
1-4 Family Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	359,030	349,635
1-4 Family Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,208	1,217
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	138,753	173,741
Non-Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	137,582	165,164
Non-Owner Occupied CRE | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,171	8,117
Non-Owner Occupied CRE | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans		460
Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	119,497	108,480
Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	119,497	108,480
Commercial and Industrial
Financing Receivable, Recorded Investment [Line Items]
Total loans	111,187	113,660
Commercial and Industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	95,371	100,929
Commercial and Industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 15,816	$ 12,731

GOODWILL - Changes in the carry

GOODWILL - Changes in the carrying amount of goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 24,811
Impairment	(1,572)
Reclass of goodwill held for sale	(3,553)
Balance at end of period	19,686
Wealth Management
Goodwill [Roll Forward]
Balance at beginning of period	15,994
Balance at end of period	15,994
Capital Management
Goodwill [Roll Forward]
Balance at beginning of period	8,817
Impairment	(1,572)
Reclass of goodwill held for sale	(3,553)
Balance at end of period	$ 3,692

LEASES - Leases Balance Sheets

LEASES - Leases Balance Sheets Location (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
LEASES
Operating lease right-of-use asset	$ 10,959	$ 12,900
Financial position	us-gaap:OtherAssets
Operating lease liability	$ 14,284	$ 16,600
Financial position	us-gaap:OtherLiabilities
Weighted-Average Remaining Lease Term - Operating leases	5 years 29 days
Weighted-Average Discount Rate - Operating leases	3.70%

LEASES - Leases Costs (Details)

LEASES - Leases Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
LEASES
Operating lease cost	$ 810	$ 2,382
Variable lease cost	395	1,168
Sublease income	(99)	(298)
Lease costs, net	$ 1,106	$ 3,252

LEASES - Lease Maturity (Detail

LEASES - Lease Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
LEASES
September 30, 2020	$ 3,601
September 30, 2021	2,941
September 30, 2022	2,683
September 30, 2023	2,462
September 30, 2024	2,241
Thereafter	1,768
Total future minimum lease payments	15,696
Less: Imputed interest	(1,412)
Present value of net future minimum lease payments	$ 14,284	$ 16,600

LEASES - Payments Due Maturitie

LEASES - Payments Due Maturities (Details) $ in Thousands	Dec. 31, 2018USD ($)
Future minimum lease payments
2019	$ 3,570
2020	3,374
2021	2,815
2022	2,675
2023	2,358
Thereafter	3,446
Operating Leases, Future Minimum Payments Due, Total	$ 18,238

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
DEPOSITS
Money market deposit accounts	$ 620,434	$ 489,506
Time deposits	170,457	178,743
Negotiable order of withdrawal accounts	83,022	64,853
Savings accounts	3,456	1,800
Total interest bearing deposits	877,369	734,902
Aggregate time deposits of $250,000 or greater	68,328	83,550
Overdrafts balances classified As loans	$ 300	$ 300

BORROWINGS (Details)

BORROWINGS (Details)	9 Months Ended
	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
BORROWINGS
Number of unsecured federal funds lines of credit	3
Federal Funds Lines of Credit One
BORROWINGS
Maximum borrowing capacity	$ 10,000,000
Amount outstanding	0	$ 0
Federal Funds Lines of Credit Two
BORROWINGS
Maximum borrowing capacity	19,000,000
Amount outstanding	0	0
Federal Funds Line of Credit Three
BORROWINGS
Maximum borrowing capacity	25,000,000
Amount outstanding	0	0
FHLB Topeka
BORROWINGS
Amount of collateral pledged	536,900,000	475,400,000
Available balance	366,200,000
Borrowings from FHLB	$ 10,000,000	15,000,000
August 2, 2019
BORROWINGS
Interest rate	2.65%
Borrowings from FHLB		5,000,000
August 26, 2020
BORROWINGS
Interest rate	1.94%
Borrowings from FHLB	$ 10,000,000	$ 10,000,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Unused lines of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 35,724	$ 33,571
Standby letters of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	65	40
Commitments to make loans to sell-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	81,158	17,207
Unused lines of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	245,642	271,580
Standby letters of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	23,499	$ 23,508
Commitments to make loans-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 10,000

SHAREHOLDERS EQUITY - Common St

SHAREHOLDERS EQUITY - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 14, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Class of Stock [Line Items]
Common stock par value		$ 0		$ 0		$ 0
Issuance of common stock, net of issuance costs			$ 32,541		$ 34,450
Common stock issuance costs					$ 4,411
Common Stock
Class of Stock [Line Items]
Common stock par value		$ 0		$ 0
Authorized share repurchase	300,000
Number of votes per each share				one
Effective term of program	1 year
Issuance of common stock (in shares)				0
Number of shares repurchased		582
Repurchase price		$ 14		$ 14
Balance t be repurchased		299,418		299,418
Common Stock | Time Vesting Units
Class of Stock [Line Items]
Issuance of common stock (in shares)			16,969		16,969
Common Stock | Private Placement
Class of Stock [Line Items]
Issuance of common stock (in shares)					67,242
Issuance of common stock, net of issuance costs					$ 1,900
Common stock issuance costs					$ 100

SHAREHOLDERS EQUITY - Stock bas

SHAREHOLDERS EQUITY - Stock based compensation - Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value (in dollars per share)	$ 28.50		$ 28.50
Recognized compensation expense	$ 0.5	$ 0.1	$ 0.7	$ 0.2
Unrecognized compensation expense	$ 1.9		$ 1.9
Number of stock awards vested	33,070		33,070
Unrecognized compensation expense recognition period (in years)			3 years

SHAREHOLDERS EQUITY - Stock b_2

SHAREHOLDERS EQUITY - Stock based compensation - Stock Options (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited or expired (in shares)			(42,750)
Stock-based compensation expense	$ 0.1	$ 0.1	$ 0.2	$ 0.4
Unrecognized stock-based compensation expense	$ 0.3		$ 0.3
Cost is expected to be recognized over a weighted-average period			9 months 18 days
Plan 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance	648,414		648,414
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of year (in shares)	465,947
Forfeited or expired (in shares)	(42,750)
Outstanding at end of period (in shares)	423,197
Options fully vested / exercisable at end of period (in shares)	380,216	402,872
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	$ 28.84
Forfeited or expired (in dollars per share)	27.72
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	28.95
Options fully vested / exercisable at September 30, 2019	$ 29.34
Weighted Average Remaining Contractual Term
Outstanding at end of year	3 years 9 months 18 days
Options fully vested / exercisable at September 30, 2019	3 years 6 months
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) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Stock surrendered (in shares)	7,835	6,313
Stock surrendered to cover employee withholding taxes	$ 0.1	$ 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	184,369
Granted (in shares)	71,127
Vested (in shares)	(23,281)
Forfeited (in shares)	(22,824)
Outstanding at end of year	209,391
Stock issued (in shares)	15,446	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	15,932
Granted (in shares)	59,536
Forfeited (in shares)	(6,597)
Outstanding at end of year	68,871
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	17,258
Forfeited (in shares)	(1,933)
Outstanding at end of year	15,325

SHAREHOLDERS EQUITY - Stock b_5

SHAREHOLDERS EQUITY - Stock based compensation - Time Vesting Units (Details) - Time Vesting Units - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)			5 years
Weighted average grant date fair value			$ 13.80
Granted (in shares)			71,127
Stock-based compensation expense	$ 0.3	$ 0.1	$ 0.7	$ 0.7
Unrecognized compensation expense	$ 3.7		$ 3.7
Unrecognized compensation expense recognition period (in years)			2 years 1 month 6 days
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)			3,779
Anniversary of grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Percentage			20.00%
Granted (in shares)			67,348

SHAREHOLDERS EQUITY - Stock b_6

SHAREHOLDERS EQUITY - Stock based compensation - Financial Performance Units (Details) - USD ($) $ in Millions	May 01, 2019	Sep. 30, 2019	Sep. 30, 2019
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			59,536
Financial Performance Units Granted Prior to 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)			2 years
Percent of awards accruing at maximum threshold			50.00%
Remainder threshold awards		50.00%	50.00%
Maximum percentage of shares can be issued			150.00%
Maximum number of shares can be issued		20,800	20,800
Unrecognized compensation expense		$ 0.2	$ 0.2
Unrecognized compensation expense recognition period (in years)			2 years 3 months 18 days
Financial Performance Units Granted Prior to 2019 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage			150.00%
Financial Performance Units Granted Prior to 2019 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage			0.00%
Financial Performance Units Granted in 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	2 years
Granted (in shares)	59,536
Maximum percentage of shares can be issued			150.00%
Maximum number of shares can be issued		82,500	82,500
Stock-based compensation expense		$ 0.1
Unrecognized compensation expense		$ 0.7	$ 0.7
Unrecognized compensation expense recognition period (in years)			4 years 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
Financial Performance Units Granted in 2019 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial performance threshold percentage	150.00%
Financial Performance Units Granted in 2019 | 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) - Market Performance Units $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0.4
Unrecognized compensation expense recognition period (in years)	2 years 9 months

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income	$ 2,406	$ 1,689	$ 5,437	$ 3,923
Dividends on preferred stock		(255)		(1,378)
Net income available for common shareholders	$ 2,406	$ 1,434	$ 5,437	$ 2,545
Denominator:
Basic weighted average shares	7,890,794	7,373,770	7,882,221	6,321,511
Earnings per common share - basic	$ 0.30	$ 0.19	$ 0.69	$ 0.40
Numerator:
Net income	$ 2,406	$ 1,689	$ 5,437	$ 3,923
Dividends on preferred stock		(255)		(1,378)
Net income available for common shareholders	$ 2,406	$ 1,434	$ 5,437	$ 2,545
Denominator:
Basic weighted average shares	7,890,794	7,373,770	7,882,221	6,321,511
Diluted effect of common stock equivalents:
Total diluted effect of common stock equivalents	24,000	15,075	18,340	50,740
Diluted weighted average shares	7,914,794	7,388,845	7,900,561	6,372,251
Earnings per common share - diluted	$ 0.30	$ 0.19	$ 0.69	$ 0.40
Stock Options
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents				20,860
Time Vesting Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	10,702		4,942	14,841
Financial Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	123		41	6,505
Market Performance Units
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents	13,175	15,075	13,357	5,025
Restricted Stock Awards
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents				3,509

EARNINGS PER COMMON SHARE - Ant

EARNINGS PER COMMON SHARE - Anti-dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	670,714	697,084	732,226	474,461
Stock Options
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	423,197	467,947	438,364	296,949
Time Vesting Units
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	130,821	168,962	163,141	157,454
Financial Performance Units
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	55,028	16,345	47,008	5,448
Restricted Stock Awards
EARNINGS (LOSS) PER COMMON SHARE
Total potentially dilutive securities	61,668	43,830	83,713	14,610

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES
Income tax provision	$ 780	$ 543	$ 1,865	$ 1,247
Effective income tax rate	24.50%	24.30%	25.50%	24.10%

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Summary of related party loan activity
Balance, beginning of period	$ 2,659	$ 14,077	$ 14,077
Funded loans	8,295		1,466
Payments collected	(6,146)		(9,386)
Changes in related parties			(3,498)
Balance, end of period	4,808		2,659
Deposits from related parties	27,600		$ 36,700
Office lease expense	$ 100	$ 100

FAIR VALUE - General (Details)

FAIR VALUE - General (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
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	Sep. 30, 2019	Dec. 31, 2018
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 61,491	$ 43,695
U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	255	250
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
Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	61,491	43,695
Equity securities not available-for-sale	718	693
Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	255	250
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
Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	12,192	1,271
Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	2,148	890
Recurring | GNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	45,735	34,002
Recurring | FNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	3,309	3,870
Level 1 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	255	250
Equity securities not available-for-sale	718	693
Level 1 | Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	255	250
Level 2 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	61,236	43,445
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
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	12,192	1,271
Level 2 | Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	2,148	890
Level 2 | Recurring | GNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	45,735	34,002
Level 2 | Recurring | FNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 3,309	$ 3,870

FAIR VALUE - Summary of asset_2

FAIR VALUE - Summary of assets measured at fair value on Non recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	$ 658	$ 658
Impaired loans	11,827	16,895	$ 795
Other real estate owned, gross		2,400
Other real estate owned valuation allowance		1,700
Impaired loans carrying value	1,282	1,735
Allowance for loans	7,675	7,451
Level 3
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans carrying value	1,300	1,700
Allowance for loans	900	900
Commercial properties | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658	658
Commercial properties | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658	658
Commercial and Industrial | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	342	795
Commercial and Industrial | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	$ 342	$ 795

FAIR VALUE - Summary of carryin

FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	$ 146,176	$ 73,357	$ 70,418	$ 9,502
Securities available-for-sale	61,491	43,695
Loans, net	918,911	886,515
Mortgage loans held for sale	69,231	14,832
Accrued interest receivable	2,968	2,844
Other assets	17,549	3,724
Deposits	1,108,904	937,758
FHLB Topeka Borrowings – fixed rate	10,000	15,000
Subordinated notes	6,560	6,560
Accrued interest payable	356	231
Carrying Amount
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	146,176	73,357
Securities available-for-sale	61,491	43,695
Loans, net	918,911	886,515
Mortgage loans held for sale	69,231	14,832
Accrued interest receivable	2,968	2,844
Other assets	718	693
Deposits	1,108,904	937,758
FHLB Topeka Borrowings – fixed rate	10,000	15,000
Accrued interest payable	356	231
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
Level 1 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Cash and cash equivalents	146,176	73,357
Securities available-for-sale	255	250
Other assets	718	693
Level 2 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Securities available-for-sale	61,236	43,445
Mortgage loans held for sale	69,231	14,832
Accrued interest receivable	2,968	2,844
Deposits	1,111,853	940,039
FHLB Topeka Borrowings – fixed rate	9,983	14,833
Accrued interest payable	356	231
Level 3 | Estimated Fair Value
Summary of carrying amounts and estimated fair values for financial instruments
Loans, net	899,750	868,828
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	$ 6,110	$ 6,434

ASSETS AND LIABILITIES CLASSI_3

ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
ASSETS
Assets in disposal groups held for sale	$ 3,553
LIABILITIES
Liabilities in disposal groups held for sale	111
Goodwill impairment	1,572
Disposal Group, Held-for-sale, Not Discontinued Operations
ASSETS
Goodwill	3,553
Assets in disposal groups held for sale	3,553
LIABILITIES
Other liabilities	111
Liabilities in disposal groups held for sale	111
Capital Management
ASSETS
Assets in disposal groups held for sale	3,553
LIABILITIES
Goodwill impairment	$ 1,572

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Income Statement
Total interest income	$ 11,473	$ 9,940	$ 33,698	$ 28,451
Total interest expense	3,533	2,152	9,827	5,726
Provision for (recovery of) credit losses	100	18	216	(169)
Net-interest income	7,840	7,770	23,655	22,894
Non-interest income	8,788	6,638	24,348	20,822
Total income	16,628	14,408	48,003	43,716
Depreciation and amortization expense	351	557	1,347	1,707
All other non-interest expense	13,091	11,619	39,354	36,839
Income (loss) before income tax	3,186	2,232	7,302	5,170
Segment reporting
Goodwill	19,686	24,811	19,686	24,811	$ 24,811
Assets held for sale	3,553		3,553
Total assets	1,271,925	1,051,527	1,271,925	1,051,527	1,084,324
Goodwill impairment			1,572
Wealth Management
Income Statement
Total interest income	11,473	9,940	33,698	28,451
Total interest expense	3,533	2,152	9,827	5,726
Provision for (recovery of) credit losses	100	18	216	(169)
Net-interest income	7,840	7,770	23,655	22,894
Non-interest income	4,714	4,613	13,956	14,457
Total income	12,554	12,383	37,611	37,351
Depreciation and amortization expense	274	323	902	963
All other non-interest expense	10,434	9,675	30,935	29,839
Income (loss) before income tax	1,846	2,385	5,774	6,549
Segment reporting
Goodwill	15,994	15,994	15,994	15,994	15,994
Total assets	1,195,340	1,022,436	1,195,340	1,022,436
Capital Management
Income Statement
Non-interest income	776	850	2,339	2,556
Total income	776	850	2,339	2,556
Depreciation and amortization expense	22	130	248	393
All other non-interest expense	701	606	3,709	2,882
Income (loss) before income tax	53	114	(1,618)	(719)
Segment reporting
Goodwill	3,692	8,817	3,692	8,817	$ 8,817
Assets held for sale	3,553		3,553
Total assets	8,528	9,853	8,528	9,853
Goodwill impairment			1,572
Mortgage
Income Statement
Non-interest income	3,298	1,175	8,053	3,809
Total income	3,298	1,175	8,053	3,809
Depreciation and amortization expense	55	104	197	351
All other non-interest expense	1,956	1,338	4,710	4,118
Income (loss) before income tax	1,287	(267)	3,146	(660)
Segment reporting
Total assets	$ 68,057	$ 19,238	$ 68,057	$ 19,238

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)item	Dec. 31, 2019	Dec. 31, 2018USD ($)
REGULATORY CAPITAL MATTERS
Capital conservation buffer	0.625%
Common Equity Tier 1 capital ratio including capital conservation buffer (as a percent)	7.00%
Tier 1 capital ratio including capital conservation buffer (as a percent)	8.50%
Total capital ratio including capital conservation buffer (as a percent0	10.50%
Number of conditions or events to be performed | item	0
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 103,458		$ 94,335
Actual Ratio (as a percent)	11.73%		11.35%
Tier 1 capital to risk-weighted assets
Actual Amount	$ 103,458		$ 94,335
Actual Ratio (as a percent)	11.73%		11.35%
Total capital to risk-weighted assets
Actual Amount	$ 117,846		$ 108,510
Actual Ratio (as a percent)	13.36%		13.06%
Tier 1 capital to average assets
Actual Amount	$ 103,458		$ 94,335
Actual Ratio (as a percent)	8.76%		9.28%
Bank
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 96,495		$ 87,291
Actual Ratio (as a percent)	10.98%		10.55%
Required for Capital Adequacy Purposes Amount	$ 39,547		$ 37,240
Required for Capital Adequacy Purposes Ratio (as a percent)	4.50%		4.50%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 57,123		$ 53,791
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	$ 96,495		$ 87,291
Actual Ratio (as a percent)	10.98%		10.55%
Required for Capital Adequacy Purposes Amount	$ 52,729		$ 49,653
Required for Capital Adequacy Purposes Amount (as a percent)	6.00%		6.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 70,305		$ 66,204
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	$ 104,323		$ 94,906
Actual Ratio (as a percent)	11.87%		11.47%
Required for Capital Adequacy Purposes Amount	$ 70,305		$ 66,204
Required for Capital Adequacy Purposes Ratio (as a percent)	8.00%		8.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 87,882		$ 82,755
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	$ 96,495		$ 87,291
Actual Ratio (as a percent)	8.19%		8.63%
Required for Capital Adequacy Purposes Amount	$ 47,101		$ 40,459
Required for Capital Adequacy Purposes Ratio (as a percent)	4.00%		4.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 58,876		$ 50,574
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%