First Western Financial (MYFW) 10-Q 30 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 27, 2020
Document And Entity Information Abstract
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	First Western Financial Inc
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	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		7,917,489
Entity Central Index Key	0001327607
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Cash and cash equivalents:
Cash and due from banks	$ 4,076	$ 4,180
Interest-bearing deposits in other financial institutions	114,438	74,458
Total cash and cash equivalents	118,514	78,638
Total securities available-for-sale	52,500	58,903
Correspondent bank stock, at cost	1,158	585
Mortgage loans held for sale	64,120	48,312
Loans, net of allowance of $8,242 and $7,875	1,035,709	990,132
Premises and equipment, net	5,148	5,218
Accrued interest receivable	3,107	3,048
Accounts receivable	4,669	5,238
Other receivables	1,058	1,006
Other real estate owned, net	658	658
Goodwill	19,686	19,686
Other intangible assets, net	26	28
Deferred tax assets, net	5,036	5,047
Company-owned life insurance	15,177	15,086
Other assets	24,297	16,544
Intangibles held for sale	3,000	3,553
Total assets	1,353,863	1,251,682
Deposits:
Noninterest-bearing	270,604	240,068
Interest-bearing	907,846	846,716
Total deposits	1,178,450	1,086,784
Borrowings:
Federal Home Loan Bank Topeka borrowings	10,000	10,000
Subordinated notes	14,459	6,560
Accrued interest payable	417	299
Other liabilities	21,708	20,244
Liabilities held for sale	126	117
Total liabilities	1,225,160	1,124,004
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preferred stock - no par value; 10,000,000 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; 90,000,000 shares authorized; 7,917,489 and 7,940,168 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
Additional paid-in capital	143,081	142,797
Accumulated deficit	(13,621)	(14,955)
Accumulated other comprehensive loss	(757)	(164)
Total shareholders’ equity	128,703	127,678
Total liabilities and shareholders’ equity	$ 1,353,863	$ 1,251,682

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for loans	$ 8,242	$ 7,875
Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Preferred Stock, shares authorized	10,000,000	10,000,000
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	90,000,000	90,000,000
Common Stock, shares issued	7,917,489	7,940,168
Common Stock, shares outstanding	7,917,489	7,940,168
Convertible Preferred Stock
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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / shares
Interest and dividend income:
Loans, including fees	$ 11,002
Investment securities	295
Federal funds sold and other	215
Total interest and dividend income	11,512
Interest expense:
Deposits	2,393
Other borrowed funds	188
Total interest expense	2,581
Net interest income	8,931
Less: provision for loan losses	367
Net interest income, after provision for loan losses	8,564
Non-interest income:
Trust and investment management fees	4,731
Net gain on mortgage loans	2,481
Bank fees	368
Risk management and insurance fees	96
Income on company-owned life insurance	91
Total non-interest income	7,767
Total income before non-interest expense	16,331
Non-interest expense:
Salaries and employee benefits	8,482
Occupancy and equipment	1,440
Professional services	1,023
Technology and information systems	969
Data processing	847
Marketing	415
Amortization of other intangible assets	2
Net loss on intangibles held for sale	553
Other	916
Total non-interest expense	14,647
Income (loss) before income tax	1,684
Income tax expense	350
Net income	1,334
Net income available to common shareholders	$ 1,334
Earnings per common share:
Basic | $ / shares	$ 0.17
Diluted | $ / shares	$ 0.17

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 1,334	$ 1,627
Other comprehensive income (loss) items:
Net change in unrealized (losses) gains on available-for-sale securities	$ (597)	$ 1,062

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)	Total
Balance at Beginning at Dec. 31, 2018		$ 141,359,000	$ (23,199,000)	$ (1,285,000)	$ 116,875,000
Balance at Beginning (in shares) at Dec. 31, 2018	7,968,420
Increase (Decrease) in Stockholders' Equity
Net income			1,627,000		1,627,000
Adoption of ASU 2018-02			235,000	(235,000)	235,000
Other comprehensive income (loss), net of tax				787,000	787,000
Stock-based compensation		379,000			379,000
Preferred stock dividends
Balance at Ending at Mar. 31, 2019		141,738,000	(21,337,000)	(733,000)	119,668,000
Balance at Ending (in shares) at Mar. 31, 2019	7,968,420
Balance at Beginning at Dec. 31, 2018		141,359,000	(23,199,000)	(1,285,000)	116,875,000
Balance at Beginning (in shares) at Dec. 31, 2018	7,968,420
Balance at Ending at Dec. 31, 2019		142,797,000	(14,955,000)	(164,000)	127,678,000
Balance at Ending (in shares) at Dec. 31, 2019	7,940,168
Increase (Decrease) in Stockholders' Equity
Net income			1,334,000		1,334,000
Stock repurchases		(370,000)			(370,000)
Stock repurchases (in shares)	(22,679)
Other comprehensive income (loss), net of tax				(593,000)	(593,000)
Stock-based compensation		654,000			654,000
Balance at Ending at Mar. 31, 2020	$ 7,917,489	$ 143,081,000	$ (13,621,000)	$ (757,000)	$ 128,703,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income	$ 1,334	$ 1,627
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	276	544
Deferred income tax expense (benefit)	347	173
Stock-based compensation	654	379
Provision for loan losses	367	194
Net amortization of investment securities	107	34
Stock dividends received on correspondent bank stock	(5)	(6)
Increase in cash surrender value of company-owned life insurance	(91)	(94)
Net gain on mortgage loans sold	(2,481)	(1,456)
Origination of mortgage loans held for sale	(196,873)	(72,819)
Proceeds from mortgage loans sold	179,207	69,694
Net loss on intangibles held for sale	553
Net changes in operating assets and liabilities:
Accounts receivable	646	(61)
Accrued interest receivable and other assets	(376)	(2,447)
Accrued interest payable and other liabilities	(2,065)	(1,403)
Net cash provided by (used in) operating activities	(18,400)	(5,641)
Activity in available-for-sale securities:
Maturities, prepayments, and calls	5,703	2,528
Purchases		(10,390)
Purchases of correspondent bank stock	(568)	(362)
Redemption of correspondent bank stock		1,863
Purchases of premises and equipment	(204)	(86)
Loan and note receivable originations and principal collections, net	(45,850)	(37,207)
Net cash used in investing activities	(40,919)	(43,654)
Cash flows from financing activities
Net change in deposits	91,666	40,343
Proceeds from subordinated notes	8,000
Payments on subordinated notes	(101)
Repurchase of common stock	(370)
Payments to Federal Home Loan Bank Topeka borrowings	(17,000)	(5,000)
Proceeds from Federal Home Loan Bank Topeka borrowings	17,000	10,361
Net cash provided by financing activities	99,195	45,704
Net change in cash and cash equivalents	39,876	(3,591)
Cash and cash equivalents, beginning of year	78,638	73,357
Cash and cash equivalents, end of period	118,514	69,766
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	2,463	2,981
Income tax refunds received		(70)
Cash paid for amounts included in the measurement of lease liabilities	1,475	1,299
Supplemental noncash disclosures:
Available-for-sale reclass of equity securities		(1,300)
Adoption of ASU 2018-02 - Reclassification of stranded tax effects		235
Change in unrealized gain/(loss)	$ (597)	1,062
Lease right-of-use-asset obtained in exchange for lease liabilities		$ 16,580

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
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 clients 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, 2019 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2019. 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 months ended March 31, 2020 are not necessarily indicative of results that may be expected for the full year ending December 31, 2020. 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, 2019 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. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19-related changes, and changes in the financial condition of borrowers. The Company could experience a material adverse effect on its business as a result of the impact of the COVID-19 pandemic, and the resulting governmental actions to curtail its spread. It is at least reasonably possible that information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time. Concentration of Risk : Most of the Company’s lending activity is to clients 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 client. At March 31, 2020 and December 31, 2019, 71.5%, and 71.7%, 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 clients. 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 months ended March 31, 2020 and the year ended December 31, 2019 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 months ended March 31, 2020 are considered in scope of Topic 606. Transition of LIBOR to an Alternative Reference Rate : In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced that after 2021 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee to identify a set of alternative reference interest rates for possible use as market benchmarks. This committee has proposed the Secured Overnight Financing Rate (“SOFR”) as its recommended alternative to U.S. dollar LIBOR, and the Federal Reserve Bank of New York began publishing SOFR rates in the second quarter of 2018. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. Certain of the Company’s assets and liabilities are indexed to LIBOR, with exposure extending past December 31, 2021. The Company is currently evaluating and planning for the eventual replacement of the LIBOR benchmark interest rate, including the possibility of SOFR as the dominant replacement. In general, the transition away from LIBOR may result in increased market risk, credit risk, operational risk and business risk for the Company. The Company has developed a LIBOR transition plan, which addresses governance, risk management, legal, operational, systems and operations, fallback language, and other aspects of planning. COVID-19 and CARES Act : On March 11, 2020 the World Health Organization declared the outbreak of COVID-19 a global pandemic, which continues to spread throughout the United States and the around the world. In response to the COVID-19 pandemic, the President signed the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) into law on March 27, 2020. The objective of the CARES Act is to prevent a severe economic downturn using various measures, including economic stimulus to significantly impacted industry sectors. We continue to monitor the impact of COVID-19 closely, as well as any effects that may result from the CARES Act and other government actions. However, the extent to which the COVID-19 pandemic will impact our operations and financial results is highly uncertain. Reclassifications : Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income or total shareholders’ equity. Recently adopted accounting pronouncements : There were no recent accounting pronouncements that were adopted by the Company since the end of the Company’s fiscal year ended December 31, 2019. Recently issued accounting pronouncements, not yet adopted : The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2019. 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 was set to be effective for most public companies on January 1, 2020. However, at the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for smaller reporting companies (“SRCs”) to January 1, 2023. During the three months ended March 31, 2020, 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, client 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. The Company has started the process of selecting the methodologies to be used for each segment of its loan portfolio and started preliminarily testing to determine the impact of each methodology. 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. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge of the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company on January 1, 2021, with earlier adoption permitted and is not expected to have a significant impact on the financial statements and disclosures.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 8 $ — $ 258 Government National Mortgage Association ("GNMA") mortgage-backed securities – residential 41,173 87 (389) 40,871 Federal National Mortgage Association ("FNMA") mortgage-backed securities – residential 2,666 69 — 2,735 Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS") 9,205 — (569) 8,636 Total securities available-for-sale $ 53,294 $ 164 $ (958) $ 52,500 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 4 $ — $ 254 GNMA mortgage-backed securities – residential 45,490 157 (335) 45,312 FNMA mortgage-backed securities – residential 2,935 11 (29) 2,917 Corporate CMO and MBS 10,425 40 (45) 10,420 Total securities available-for-sale $ 59,100 $ 212 $ (409) $ 58,903 At March 31, 2020, 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 March 31, 2020 Cost Value Due after one year through five years $ 250 $ 258 Securities (agency and CMO) 53,044 52,242 Total $ 53,294 $ 52,500 At March 31, 2020 and December 31, 2019, securities with carrying values totaling $5.1 million and $5.5 million, respectively, were pledged to secure various public deposits and credit facilities of the Company. At March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, thirty-three securities and twenty-six securities, respectively were in an unrealized loss position, with unrealized losses totaling $1.0 million and $0.4 million, respectively. Two of the securities in an unrealized loss position at March 31, 2020 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 March 31, 2020. The following table summarizes securities with unrealized losses at March 31, 2020 and December 31, 2019, 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 March 31, 2020 Value Losses Value Losses Value Losses GNMA $ 29,866 $ (270) $ 3,889 $ (119) $ 33,755 $ (389) FNMA — — — — — — Corporate CMO and MBS 8,637 (569) — — 8,637 (569) Total $ 38,503 $ (839) $ 3,889 $ (119) $ 42,392 $ (958) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses GNMA $ 28,203 $ (193) $ 4,450 $ (142) $ 32,653 $ (335) FNMA — — 2,347 (29) 2,347 (29) Corporate CMO and MBS 7,780 (45) — — 7,780 (45) Total $ 35,983 $ (238) $ 6,797 $ (171) $ 42,780 $ (409) The Company did not sell any securities during the three months ended March 31, 2020 or March 31, 2019.

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2020
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): March 31, December 31, 2020 2019 Cash, Securities and Other $ 147,157 $ 146,701 Construction and Development 25,461 28,120 1-4 Family Residential 412,306 400,134 Non-Owner Occupied CRE 192,350 165,179 Owner Occupied CRE 121,138 127,968 Commercial and Industrial 144,066 128,457 Total loans 1,042,478 996,559 Deferred costs, net 1,473 1,448 Allowance for loan losses (8,242) (7,875) Loans, net $ 1,035,709 $ 990,132 The CARES Act created the Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”). The PPP is intended to provide loans to small businesses to pay their employees, rent, mortgage interest and utilities. The loans may be forgiven conditioned upon the client providing payroll documentation evidencing their compliant use of funds and otherwise complying with the terms of the program. The Bank is an approved SBA lender and began accepting and processing applications for loans under the PPP on April 3, 2020. As a result of the COVID-19 pandemic, a loan modification program was designed and implemented to assist our clients experiencing financial stress resulting from the economic impacts caused by the global pandemic. The Company has offered loan extensions, temporary payment moratoriums, and financial covenant waivers for commercial and consumer borrowers impacted by the pandemic who have a pass risk rating and have not been delinquent over 30 days on payments in the last two years. No clients utilized this program during the first quarter of 2020. Recent interagency guidance from Federal Reserve and the Federal Deposit Insurance Corporation confirmed with the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. We believe our loan modification program meets that definition. 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 March 31, 2020 and December 31, 2019 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded March 31, 2020 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ — $ 31 $ 1,493 $ 1,524 $ 145,633 $ 147,157 Construction and Development — — — — 25,461 25,461 1-4 Family Residential 3,162 202 — 3,364 408,942 412,306 Non-Owner Occupied CRE — — — — 192,350 192,350 Owner Occupied CRE — — — — 121,138 121,138 Commercial and Industrial 984 — 4,138 5,122 138,944 144,066 Total $ 4,146 $ 233 $ 5,631 $ 10,010 $ 1,032,468 $ 1,042,478 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2019 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 525 $ — $ — $ 525 $ 146,176 $ 146,701 Construction and Development — — — — 28,120 28,120 1-4 Family Residential 5,688 — — 5,688 394,446 400,134 Non-Owner Occupied CRE — — — — 165,179 165,179 Owner Occupied CRE — — — — 127,968 127,968 Commercial and Industrial — 3,110 907 4,017 124,440 128,457 Total $ 6,213 $ 3,110 $ 907 $ 10,230 $ 986,329 $ 996,559 At March 31, 2020 and December 31, 2019, the Company did not have any loans which were 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): March 31, December 31, 2020 2019 Cash, Securities and Other $ 1,493 $ 2,803 Construction and Development — — 1-4 Family Residential — — Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 4,138 4,412 Total $ 5,631 $ 7,215 Non-accrual loans classified as TDR accounted for $5.6 million of the recorded investment at March 31, 2020 and $7.2 million at December 31, 2019, 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): March 31, December 31, 2020 2019 Accruing Commercial and Industrial $ 4,820 $ 5,055 Non-accrual Cash, Securities, and Other 1,493 2,803 Commercial and Industrial 4,138 4,412 Allowance for loan associated with TDR (683) (833) Net recorded investment $ 9,768 $ 11,437 At March 31, 2020, the Company had not committed any additional funds to a borrower with a loan classified as a TDR. At December 31, 2019, the Company had extended an additional $0.2 million to a Commercial and Industrial borrower with a loan classified as a TDR for operational needs as allowed under the commitment. This additional extension was no longer outstanding at March 31, 2020. The majority owner for this borrower provided $1.5 million of pledged cash as collateral in exchange for this additional funding. The Company did not modify any loans into a TDR for the three months ended March 31, 2020 and 2019. The Company modified one borrower relationship with two loans into a TDR for the year ended December 31, 2019. The borrower, who has loans that are classified as Commercial and Industrial, was not making payments in accordance with the original contract terms. The modification of one loan included an extension of the maturity date that the Company would not have otherwise considered as a result of the Borrower’s difficulties. The extension of maturity was for a period of approximately nine months. 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): March 31, 2020 December 31, 2019 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 $ 4,138 $ 4,138 $ 683 $ 4,412 $ 4,412 $ 833 Total $ 4,138 $ 4,138 $ 683 $ 4,412 $ 4,412 $ 833 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 1,493 $ 1,493 $ — $ 2,803 $ 2,803 $ — Commercial and Industrial 4,820 4,820 — 5,055 5,055 — Total $ 6,313 $ 6,313 $ — $ 7,858 $ 7,858 $ — Total impaired loans: Cash, Securities, and Other $ 1,493 $ 1,493 $ — $ 2,803 $ 2,803 $ — Commercial and Industrial 8,958 8,958 683 9,467 9,467 833 Total $ 10,451 $ 10,451 $ 683 $ 12,270 $ 12,270 $ 833 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 March 31, 2020 and 2019 are included in the table below (in thousands): The three months ended March 31, 2020 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 4,275 $ — $ 1,585 $ — Total $ 4,275 $ — $ 1,585 $ — Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 2,148 $ — $ 11,114 $ — Commercial and Industrial 4,937 81 4,968 120 Total $ 7,085 $ 81 $ 16,082 $ 120 Total impaired loans: Cash, Securities, and Other $ 2,148 $ — $ 11,114 $ — Commercial and Industrial 9,212 81 6,553 120 Total $ 11,360 $ 81 $ 17,667 $ 120 Allowance for Loan Losses The provision for loan losses for the three months ended March 31, 2020 was $0.4 million compared to $0.2 million for the same period in 2019, primarily reflecting the strong growth in the loan portfolio and assumptions related to the impact of the COVID-19 pandemic. An analysis was performed by the credit department during the first quarter 2020 to determine clients who could be more highly effected by the recent COVID-19 pandemic. The analysis reviewed the borrowers in industries we believe may be more impacted by the pandemic and that there may be a greater than 50% probability of a downgrade, covenant violation or 20% reduction in collateral position. Caution is exercised by the Bank in lending practices to ensure safe and sound credits and portfolio diversification. Management believes the diversity of the loan portfolio is prudent and remains consistent with the credit culture and goals of the Bank. 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 March 31, 2020 Beginning balance $ 1,058 $ 200 $ 2,850 $ 1,176 $ 911 $ 1,680 $ 7,875 Provision for (recovery of) loan losses 34 (14) 158 227 (27) (11) 367 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 1,092 $ 186 $ 3,008 $ 1,403 $ 884 $ 1,669 $ 8,242 Allowance for loan losses at March 31, 2020 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 683 $ 683 Collectively 1,092 186 3,008 1,403 884 986 7,559 Ending balance $ 1,092 $ 186 $ 3,008 $ 1,403 $ 884 $ 1,669 $ 8,242 Loans at March 31, 2020, evaluated for impairment: Individually $ 1,493 $ — $ — $ — $ — $ 8,958 $ 10,451 Collectively 145,664 25,461 412,306 192,350 121,138 135,108 1,032,027 Ending balance $ 147,157 $ 25,461 $ 412,306 $ 192,350 $ 121,138 $ 144,066 $ 1,042,478 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 March 31, 2019 Beginning balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Provision for (recovery of) loan losses 113 34 36 (29) (9) 49 194 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 877 $ 266 $ 2,588 $ 1,235 $ 780 $ 1,899 $ 7,645 Allowance for loan losses at December 31, 2019 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 833 $ 833 Collectively 1,058 200 2,850 1,176 911 847 7,042 Ending balance $ 1,058 $ 200 $ 2,850 $ 1,176 $ 911 $ 1,680 $ 7,875 Loans at December 31, 2019, evaluated for impairment: Individually $ 2,803 $ — $ — $ — $ — $ 9,467 $ 12,270 Collectively 143,898 28,120 400,134 165,179 127,968 118,990 984,289 Ending balance $ 146,701 $ 28,120 $ 400,134 $ 165,179 $ 127,968 $ 128,457 $ 996,559 The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness or borrowing relationships that require more than the usual amount of management attention. Adverse industry conditions, deteriorating financial conditions, declining trends, management problems, documentation deficiencies or other similar weaknesses may be evident. Ability to meet current payment schedules may be questionable, even though interest and principal are still being paid as agreed. The asset has potential weaknesses that may result in deteriorating repayment prospects if left uncorrected. Loans in this risk grade are not considered adversely classified. Substandard—Substandard loans are considered “classified” and are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans in this category may be placed on non‑accrual status and may individually be evaluated for impairment if indicators of impairment exist. Doubtful—Loans graded doubtful are considered “classified” and have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, the amount of certainty of eventual loss is not known because of specific pending factors. Loans not meeting any of the three criteria above are considered to be pass‑rated loans. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of March 31, 2020 and December 31, 2019 (in thousands): Special March 31, 2020 Pass Mention Substandard Total Cash, Securities and Other $ 145,444 $ — $ 1,713 $ 147,157 Construction and Development 25,461 — — 25,461 1-4 Family Residential 406,450 — 5,856 412,306 Non-Owner Occupied CRE 191,205 1,145 — 192,350 Owner Occupied CRE 121,138 — — 121,138 Commercial and Industrial 130,377 — 13,689 144,066 Total $ 1,020,075 $ 1,145 $ 21,258 $ 1,042,478 Special December 31, 2019 Pass Mention Substandard Total Cash, Securities and Other $ 143,898 $ — $ 2,803 $ 146,701 Construction and Development 28,120 — — 28,120 1-4 Family Residential 395,224 — 4,910 400,134 Non-Owner Occupied CRE 164,021 1,158 — 165,179 Owner Occupied CRE 127,968 — — 127,968 Commercial and Industrial 114,241 — 14,216 128,457 Total $ 973,472 $ 1,158 $ 21,929 $ 996,559 The Company had no loans graded doubtful as of March 31, 2020 and December 31, 2019 .

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2020
Goodwill.
Goodwill	NOTE 4 - GOODWILL Changes in the carrying amount of goodwill were as follows (in thousands): Wealth Management Capital Management Consolidated 2020 2019 2020 2019 2020 2019 Beginning balance $ 15,994 $ 15,994 $ 3,692 $ 8,817 $ 19,686 $ 24,811 Impairment — — — (1,572) — (1,572) Reclass of goodwill held for sale — — — (3,553) — (3,553) Ending balance $ 15,994 $ 15,994 $ 3,692 $ 3,692 $ 19,686 $ 19,686 Goodwill is tested annually for impairment on October 31 or earlier upon the occurrence of certain events. The Company performed a qualitative assessment of significant events and circumstances as of March 31, 2020 including reporting units historical and current results, assumptions regarding future performance, overall economic factors, including COVID-19, and macroeconomic developments, to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of reporting units are less than their carrying value. If indicators of impairment are identified a quantitative impairment test is performed. Based on the operating results for the three months ended March 31, 2020 and other considerations, the Company believes that it is more likely than not that the value for each of its reporting units is still greater than their carrying values. During 2019, the Company received an unsolicited offer to purchase its Los Angeles-based fixed income team, a portion of the Capital Management segment. This resulted in performing an interim goodwill analysis and we recorded a goodwill impairment loss of $1.6 million in the Capital Management segment during 2019. Additionally, 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 intangibles held for sale in 2019. As of March 31, 2020, the remaining value of goodwill in the Capital Management segment was $3.7 million. As of the three months ended March 31, 2020, no changes have been made to the balance of goodwill. For changes related to the portion of goodwill reclassified to intangibles held for sale, see Note 14 – Intangible Assets and Other Liabilities Classified as Held for Sale.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
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, on the adoption date. 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, (in thousands). March 31, 2020 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 9,650 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 12,666 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. March 31, 2020 Weighted-Average Remaining Lease Term Operating leases 4.74 years Weighted-Average Discount Rate Operating leases 3.72 % 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, (in thousands): Three Months Ended March 31, 2020 2019 Lease Costs Operating lease cost $ 801 $ 783 Variable lease cost 461 388 Sublease income (99) (99) Lease costs, net $ 1,163 $ 1,072 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 March 31, 2020 (in thousands): Twelve Months Ended Operating Leases March 31, 2021 $ 3,273 March 31, 2022 2,756 March 31, 2023 2,666 March 31, 2024 2,254 March 31, 2025 2,139 Thereafter 743 Total future minimum lease payments $ 13,831 Less: Imputed interest (1,165) Present value of net future minimum lease payments $ 12,666

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2020
DEPOSITS
DEPOSITS	NOTE 6 - DEPOSITS The following presents the Company’s interest-bearing deposits at the dates noted (in thousands): March 31, December 31, 2020 2019 Money market deposit accounts $ 671,641 $ 615,575 Time deposits 150,190 134,913 Negotiable order of withdrawal accounts 82,092 91,921 Savings accounts 3,923 4,307 Total interest bearing deposits $ 907,846 $ 846,716 Aggregate time deposits of $250,000 or greater $ 63,354 $ 61,596 Overdraft balances classified as loans totaled $1.4 million and an immaterial amount at March 31, 2020 and December 31, 2019, respectively.

BORROWINGS

BORROWINGS	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 amounted to $568.3 million and $515.5 million, respectively. Based on this collateral and the Company’s holdings of FHLB Topeka stock, the Company was eligible to borrow an additional $378.7 million at March 31, 2020. Each advance is payable at its maturity date. The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): March 31, December 31, Maturity Date Rate % 2020 2019 August 26, 2020 1.94 10,000 10,000 Total $ 10,000 $ 10,000 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 March 31, 2020 and December 31, 2019, there were no amounts outstanding on any of the federal funds lines. On March 17, 2020, the Company completed the issuance and sale of subordinated notes (the "2020 Sub Notes") to one investor totaling $8.0 million in aggregate principal amount. The 2020 Sub Notes accrue interest at a rate of 5.125% per annum until March 31, 2025, at which time the rate will adjust each quarter to the then current three-month LIBOR, or an alternative rate determined in accordance with the terms of the 2020 Sub Notes, plus 450 basis points; mature on March 31, 2030; are redeemable at the option of the Company on or after March 31, 2025; and pay interest quarterly. 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 March 31, 2020 and December 31, 2019, the Company was in compliance with the covenant requirements. On June 30, 2019, the Company entered into a Restated Revolving Credit Note (the "Credit Note") with a correspondent lending partner. The Credit Note is secured by stock of the Bank and bears interest at the 30 day LIBOR plus 3.5%. As of March 31, 2020 and December 31, 2019, there were no amounts outstanding on the Credit Note and the borrowing capacity associated with this facility was $5.0 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2020
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 clients. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the condensed consolidated balance sheets. Commitments may expire without being utilized. The Bank’s exposure to loan 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): March 31, 2020 December 31, 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 31,690 $ 274,056 $ 32,896 $ 290,653 Standby letters of credit 1,734 24,099 1,759 24,197 Commitments to make loans to sell $ 236,198 $ — $ 47,354 $ — Unused lines of credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Several of the commitments may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Bank, is based on management’s credit evaluation of the client. Unused lines of credit under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing clients. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Bank is committed. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a clients to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Substantially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The 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 client, provided there is no violation of any condition within the contract with either party. Commitments to make loans to sell have fixed interest rates. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. Commitments to make loans are agreements to lend to a client, provided there is no violation of any condition within the contract. Commitments to make loans generally have fixed expiration dates or other termination clauses. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. As of March 31, 2020 and December 31, 2019, there were no commitments to make loans. Litigation, Claims and Settlements The Company is, from time to time, involved in various legal actions arising in the normal course of business. While the ultimate outcome of any such proceedings cannot be predicted with certainty, it is the opinion of management, based on advice from legal counsel, that no proceedings exist, either individually or in the aggregate, which, if determined adversely to the Company, would have a material effect on the Company’s condensed consolidated financial statements.

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	3 Months Ended
	Mar. 31, 2020
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 year ended December 31, 2019, the Company repurchased 43,698 shares at an average price of $16.51. During the three months ended March 31, 2020, the Company repurchased 22,679 shares at an average price of $16.50 and as of March 31, 2020, 233,623 shares may yet be purchased under the program. In response to the COVID-19 pandemic, the Company does not currently anticipate continuing to repurchase shares and instead, intends to use its capital to support its clients and communities through the duration of the COVID-19 pandemic. Restricted Stock Awards In 2017, the Company issued 105,264 shares of common stock ( " Restricted Stock Awards " ) with a value of $3.0 million to the sole member of EMC Holdings, LLC ( " EMC " ), subject to forfeiture based on his continued employment with the Company. Half of the Restricted Stock Awards ($1.5 million or 52,632 shares) vests ratably over five-years. The remaining $1.5 million, or 52,632 shares, may be earned based on performance of the mortgage division of the Company. During the three months ended March 31, 2020, the Company recognized compensation expense of $0.2 million, representing 14,114 shares, related to the performance based awards. During the year ended December 31, 2019, the Company recognized compensation expense of $0.6 million, representing 38,518 shares, related to the performance-based awards. As of March 31, 2020, the Restricted Stock Awards have a weighted-average grant date fair value of $28.50 per share. During the three months ended March 31, 2020 and 2019, the Company has recognized compensation expense of $0.2 and $0.1 million for the Restricted Stock Awards, respectively. As of March 31, 2020, the Company has $ 1.2 million of unrecognized stock-based compensation expense related to the shares issued. As of March 31, 2020, the unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 1.0 years. No Restricted Stock Awards vested during the three months ended March 31, 2020 or 2019. Stock‑Based Compensation Plans As of March 31, 2020, there were a total of 648,635 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 three months ended March 31, 2020 and 2019. The Company recognized compensation expense of $0.1 million for each of the three months ended March 31, 2020 and 2019, respectively, associated with stock options. As of March 31, 2020, the Company has $0.2 million of unrecognized stock‑based compensation expense related to stock options which are unvested. As of March 31, 2020, the unrecognized cost is expected to be recognized over a weighted‑average period of less than one year. The following summarizes activity for nonqualified stock options for the three months ended March 31, 2020: : Weighted Weighted Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at December 31, 2019 419,197 $ 29.02 Granted - - Exercised - - Forfeited or expired - - Outstanding at March 31, 2020 419,197 29.02 3.4 (a) Options fully vested / exercisable at March 31, 2020 396,916 $ 29.20 3.2 (a) ________________________________________ (a) Nonqualified stock options outstanding at the end of the period and those fully vested / exercisable had immaterial aggregate intrinsic values. As of March 31, 2020 and December 31, 2019, there were 396,916 and 394,020 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 three months ended March 31, 2020, 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 three months ended March 31, 2020: Time Financial Market Vesting Performance Performance Units Units Units Outstanding at December 31, 2019 209,444 69,426 14,862 Granted 2,072 1,866 - Vested - - - Forfeited (304) - - Outstanding at March 31, 2020 During the three months ended March 31, 2020 and 20 19 , no Time Vesting Units vested. As a result, the Company did not issue shares of common stock upon the settlement of Time Vesting Units. 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 2,072 Time Vesting Units with a five year service period in the three months ended March 31, 2020, 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 2020 have a weighted‑average grant‑date fair value of $14.43 per unit. During the three months ended March 31, 2020 and 2019, the Company recognized compensation expense of $0.3 million and $0.2 million, respectively, for Time Vesting Units. As of March 31, 2020, there was $3.2 million of unrecognized compensation expense related to Time Vesting Units. As of March 31, 2020, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of approximately 1.6 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 March 31, 2020, the Company is accruing at the target threshold for 50% of the awards and at 50% for the remainder. The maximum shares that can be issued at the current thresholds as of March 31, 2020 was approximately 10,000 shares. During the three months ended March 31, 2020 and 2019, the Company recognized an immaterial amount of compensation expense for the Financial Performance Units. As of March 31, 2020, there was $0.1 million of unrecognized compensation expense related to the Financial Performance Units. As of March 31, 2020, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of 1.8 years. Financial Performance Units Granted in 2019 The Company granted 1,866 Financial Performance Units during the three months ended March 31, 2020. In 2019, the Company granted an additional 62,569 Financial Performance Units to officers and other key employees. All Financial Performance Units granted on or after 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 March 31, 2020, the Company is accruing at the target threshold for the awards. The maximum shares that can be issued at 100% as of March 31, 2020 was approximately 58,000 shares. During the three months ended March 31, 2020, the Company recognized an immaterial amount of compensation expense for the Financial Performance Units. As of March 31, 2020, there was $0.7 million of unrecognized compensation expense related to the Financial Performance Units. As of March 31, 2020, the unrecognized stock-based compensation expense is expected to be recognized over a weighted‑average period of 3.8 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 months ended March 31, 2020 and 2019 the Company recognized an immaterial amount of compensation expense for the Market Performance Units. As of March 31, 2020, 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 2.3 years.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Earnings per common share - Basic Numerator: Net income $ 1,334 $ 1,627 Dividends on preferred stock — — Net income available for common shareholders $ 1,334 $ 1,627 Denominator: Basic weighted average shares 7,863,564 7,873,718 Earnings per common share - basic $ 0.17 $ 0.21 Earnings per common share - Diluted Numerator: Net income $ 1,334 $ 1,627 Dividends on preferred stock — — Net income available for common shareholders $ 1,334 $ 1,627 Denominator: Basic weighted average shares 7,863,564 7,873,718 Diluted effect of common stock equivalents: Stock options — — Time Vesting Units 28,632 2,080 Financial Performance Units 25,049 — Market Performance Units 13,366 13,846 Restricted Stock Awards — — Total diluted effect of common stock equivalents 67,047 15,926 Diluted weighted average shares 7,930,611 7,889,644 Earnings per common share - diluted $ 0.17 $ 0.21 Diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been anti‑dilutive. As of March 31, 2020 and 2019, potentially dilutive securities excluded from the diluted earnings per share calculation are as follows: For the Three Months Ended 2020 2019 Stock options 419,197 449,797 Time Vesting Units 86,923 159,991 Financial Performance Units — 15,130 Restricted Stock Awards 61,668 94,736 Total potentially dilutive securities 567,788 719,654

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 11 - INCOME TAXES During the three months ended March 31, 2020 and 2019, the Company recorded an income tax provision of $0.4 million and $0.5 million, respectively, reflecting an effective tax rate of 20.8% and 24.4%, respectively.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2020
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 12 - RELATED‑PARTY TRANSACTIONS The Bank extends credit under Regulation O to certain covered parties including Company directors, executive officers and their affiliates. At March 31, 2020 and December 31, 2019, there were no delinquent or non‑performing loans to any executive officer or director of the Company. These covered parties, along with principal owners, management, immediate family of management or principal owners, a parent company and its subsidiaries, trusts for the benefits of employees, and other parties, may be considered related parties. The following presents a summary of related‑party loan activity as of the dates noted (in thousands): March 31, 2020 December 31, 2019 Balance, beginning of year $ 3,198 $ 2,659 Funded loans 768 9,118 Payments collected (3,598) (8,579) Balance, end of year $ 368 $ 3,198 Deposits from related parties held by the Bank at March 31, 2020 and December 31, 2019 totaled $30.5 million and $28.5 million, respectively. The Company leases office spaces from entities controlled by one of the Company’s board members. During the three months ended March 31, 2020 and 2019, the Company incurred an immaterial amount of expense related to this lease.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2020
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 2020 and 2019. 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. 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 March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported March 31, 2020 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 258 $ — $ — $ 258 GNMA — 40,871 — 40,871 FNMA — 2,735 — 2,735 Corporate CMO and MBS — 8,636 — 8,636 Total securities available-for-sale $ 258 $ 52,242 $ — $ 52,500 Equity securities $ 726 $ — $ — $ 726 Interest rate lock and forward delivery commitments $ — $ 4,025 $ — $ 4,025 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2019 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 254 $ — $ — $ 254 GNMA — 45,312 — 45,312 FNMA — 2,917 — 2,917 Corporate CMO and MBS — 10,420 — 10,420 Total securities available-for-sale $ 254 $ 58,649 $ — $ 58,903 Equity securities $ 713 $ — $ — $ 713 Interest rate lock and forward delivery commitments $ — $ 1,184 $ — $ 1,184 Mutual funds and U.S. Treasury debt are reported at fair value utilizing Level 1 inputs. The remaining portfolio of securities are reported at fair value with Level 2 inputs provided by a pricing service. As of March 31, 2020 and December 31, 2019, the majority of the securities had credit support provided by the Federal Home Loan Mortgage Corporation, GNMA, and FNMA. Factors used to value the securities by the pricing service include: benchmark yields, reported trades, interest spreads, prepayments, and other market research. In addition, ratings and collateral quality are considered. As of March 31, 2020, 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 annually for additional impairment and adjusted accordingly. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. Impaired loans are evaluated monthly for additional impairment and adjusted accordingly. Appraisals for both collateral‑dependent impaired loans and 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 March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported March 31, 2020 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 3,455 $ 3,455 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2019 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 3,579 $ 3,579 The sales comparison approach was utilized for estimating the fair value of non‑recurring assets. At March 31, 2020, other real estate owned remained unchanged from December 31, 2019 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 March 31, 2020, total impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had carrying values of $4.1 million with valuation allowances of $0.7 million and were classified as Level 3. As of December 31, 2019, impaired loans measured for impairment using the fair value of the collateral for collateral dependent loans had carrying values of $4.4 million with valuation allowances of $0.8 million and were classified as Level 3. Impaired loans accounted for specific reserves of $0.7 million at March 31, 2020 and $0.8 million at December 31, 2019. During the three months ended March 31, 2020, no charge offs occurred affecting the provision. The Bank charged off $0.2 million during the three months ended December 31, 2019 from the specific reserve. The following presents carrying amounts and estimated fair values for financial instruments as of March 31, 2020 and December 31, 2019 (in thousands): Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 118,514 $ 118,514 $ — $ — Securities available-for-sale 52,500 258 52,242 — Loans, net 1,035,709 — — 1,024,928 Mortgage loans held for sale 64,120 — 64,120 — Accrued interest receivable 3,107 — 3,107 — Other assets 726 726 — — Liabilities: Deposits 1,178,450 — 1,180,755 — Borrowings: FHLB Topeka borrowings – fixed rate 10,000 — 10,060 — Subordinated notes – fixed-to-floating rate 14,459 — — 13,800 Accrued interest payable $ 417 $ — $ 417 $ — Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 78,638 $ 78,638 $ — $ — Securities available-for-sale 58,903 254 58,649 — Loans, net 990,132 — — 974,142 Mortgage loans held for sale 48,312 — 48,312 — Accrued interest receivable 3,048 — 3,048 — Other assets 713 713 — — Liabilities: Deposits 1,086,784 — 1,089,261 — Borrowings: FHLB Topeka borrowings – fixed rate 10,000 — 10,003 — Subordinated notes – fixed-to-floating rate 6,560 — — 6,004 Accrued interest payable $ 299 $ — $ 299 $ — 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.

INTANGIBLE ASSETS AND OTHER LIA

INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE	3 Months Ended
	Mar. 31, 2020
INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE
INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE	NOTE 14 – INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE For the period ended March 31, 2020 and December 31, 2019, the Company was actively seeking to sell its Los Angeles-based fixed income portfolio management team and certain advisory and sub-advisory arrangements. Negotiations with several interested parties have taken place during the period. Management will continue to evaluate opportunities to divest the Los Angeles-based fixed income portfolio management team and therefore these assets and liabilities are classified as a disposal group held for sale and are presented separately in the consolidated balance sheet. During the three months ended March 31, 2020, the Company performed a review of the fair value of intangibles held for sale and determined that a write down of the asset was necessary based on current facts. The Company recorded a loss on the intangibles held for sale of $0.6 million during the period ending March 31, 2020. Intangible assets and other liabilities in disposal groups held for sale, all of which are included in the Capital Management segment, are as follows at the dates noted (in thousands): March 31, December 31, 2020 2019 ASSETS Goodwill $ 3,000 $ 3,553 Assets in disposal groups held for sale $ 3,000 $ 3,553 LIABILITIES Other liabilities $ 126 $ 117 Liabilities in disposal groups held for sale $ 126 $ 117

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2020
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 acting as the advisor of three owned, managed, and rated mutual funds. Capital Management products and services are financial in nature for which revenues are generally 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 ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,512 $ — $ — $ 11,512 Total interest expense 2,581 — — 2,581 Provision for loan losses 367 — — 367 Net interest income 8,564 — — 8,564 Non-interest income 4,459 804 2,504 7,767 Total income 13,023 804 2,504 16,331 Depreciation and amortization expense 234 22 20 276 All other non-interest expense 11,171 1,430 (1) 1,770 14,371 Income (loss) before income tax $ 1,618 $ (648) $ 714 $ 1,684 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Intangibles held for sale - 3,000 — 3,000 Total assets $ 1,281,563 $ 8,199 $ 64,101 $ 1,353,863 ______________________________________ (1) Includes loss on intangibles held for sale of $0.6 million. Three Months Ended March 31, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,050 $ — $ — $ 11,050 Total interest expense 3,079 — — 3,079 Provision for loan losses 194 — — 194 Net interest income 7,777 — — 7,777 Non-interest income 4,732 765 1,479 6,976 Total income 12,509 765 1,479 14,753 Depreciation and amortization expense 348 131 65 544 All other non-interest expense 10,050 695 1,313 12,058 Income (loss) before income tax $ 2,111 $ (61) $ 101 $ 2,151 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,114,800 $ 10,110 $ 19,778 $ 1,144,688

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, 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, set forth in the following table. These ratios are common equity Tier 1 capital (“CET 1”), Tier 1 capital and total capital (as defined in the regulations) to risk‑weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). Actual capital ratios of the Bank, along with the applicable regulatory capital requirements as of March 31, 2020, 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 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 capital conservation buffer requirement began phasing in, in January 2016 at 0.625% of risk‑weighted assets and increased each year until it was fully implemented in January 2019. Banks are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such activities. At March 31, 2020, 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 March 31, 2020 and December 31, 2019, the most recent filings with the Federal Deposit Insurance Corporation (“FDIC”) categorized the Bank as well capitalized under the regulatory guidelines. To be categorized as well capitalized, an institution must maintain minimum CET 1 risk‑based, Tier 1 risk‑based, total risk‑based, and Tier 1 leverage ratios as set forth in the following table. Management believes there are no conditions or events since March 31, 2020, that have changed the categorization of the Bank as well capitalized. Management believes the Bank met all capital adequacy requirements to which it was subject as of March 31, 2020 and December 31, 2019. The following presents the actual and required capital amounts and ratios as of March 31, 2020 and December 31, 2019 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations March 31, 2020 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 102,022 10.35 % $ 59,125 6.0 % $ 78,834 8.0 % Consolidated 108,395 10.96 N/A N/A N/A N/A CET 1 to risk-weighted assets Bank 102,022 10.35 44,344 4.5 64,053 6.5 Consolidated 108,395 10.96 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 110,652 11.23 78,834 8.0 98,542 10.0 Consolidated 131,586 13.31 N/A N/A N/A N/A Tier 1 capital to average assets Bank 102,022 8.33 48,985 4.0 61,231 5.0 Consolidated $ 108,395 8.81 % $ 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, 2019 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 99,461 10.67 % $ 55,954 6.0 % $ 74,606 8.0 % Consolidated 105,821 11.31 N/A N/A N/A N/A CET 1 to risk-weighted assets Bank 99,461 10.67 41,966 4.5 60,617 6.5 Consolidated 105,821 11.31 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 107,509 11.53 74,606 8.0 93,257 10.0 Consolidated 120,429 12.87 N/A N/A N/A N/A Tier 1 capital to average assets Bank 99,461 8.09 49,166 4.0 61,458 5.0 Consolidated $ 105,821 8.58 % $ N/A N/A % $ N/A N/A %

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS None.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
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 clients 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, 2019 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2019. 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 months ended March 31, 2020 are not necessarily indicative of results that may be expected for the full year ending December 31, 2020. 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, 2019 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.
Use of Estimates	Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19-related changes, and changes in the financial condition of borrowers. The Company could experience a material adverse effect on its business as a result of the impact of the COVID-19 pandemic, and the resulting governmental actions to curtail its spread. It is at least reasonably possible that information which was available at the date of the financial statements will change in the near term due to the COVID-19 pandemic and that the effect of the change would be material to the financial statements. The extent to which the COVID-19 pandemic will impact our estimates and assumptions is highly uncertain and we are unable to make an estimate, at this time.
Concentration of Credit Risk	Concentration of Risk : Most of the Company’s lending activity is to clients 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 client. At March 31, 2020 and December 31, 2019, 71.5%, and 71.7%, 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	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 clients. 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 months ended March 31, 2020 and the year ended December 31, 2019 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 months ended March 31, 2020 are considered in scope of Topic 606.
Transition of LIBOR to an Alternative Reference Rate	Transition of LIBOR to an Alternative Reference Rate : In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced that after 2021 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee to identify a set of alternative reference interest rates for possible use as market benchmarks. This committee has proposed the Secured Overnight Financing Rate (“SOFR”) as its recommended alternative to U.S. dollar LIBOR, and the Federal Reserve Bank of New York began publishing SOFR rates in the second quarter of 2018. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. Certain of the Company’s assets and liabilities are indexed to LIBOR, with exposure extending past December 31, 2021. The Company is currently evaluating and planning for the eventual replacement of the LIBOR benchmark interest rate, including the possibility of SOFR as the dominant replacement. In general, the transition away from LIBOR may result in increased market risk, credit risk, operational risk and business risk for the Company. The Company has developed a LIBOR transition plan, which addresses governance, risk management, legal, operational, systems and operations, fallback language, and other aspects of planning.
COVID-19 and CARES Act	COVID-19 and CARES Act : On March 11, 2020 the World Health Organization declared the outbreak of COVID-19 a global pandemic, which continues to spread throughout the United States and the around the world. In response to the COVID-19 pandemic, the President signed the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) into law on March 27, 2020. The objective of the CARES Act is to prevent a severe economic downturn using various measures, including economic stimulus to significantly impacted industry sectors. We continue to monitor the impact of COVID-19 closely, as well as any effects that may result from the CARES Act and other government actions. However, the extent to which the COVID-19 pandemic will impact our operations and financial results is highly uncertain.
Reclassifications	Reclassifications : Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income or total shareholders’ equity.
Recently adopted accounting pronouncements and Recently issued accounting pronouncements, not yet adopted	Recently adopted accounting pronouncements : There were no recent accounting pronouncements that were adopted by the Company since the end of the Company’s fiscal year ended December 31, 2019. Recently issued accounting pronouncements, not yet adopted : The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2019. 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 was set to be effective for most public companies on January 1, 2020. However, at the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for smaller reporting companies (“SRCs”) to January 1, 2023. During the three months ended March 31, 2020, 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, client 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. The Company has started the process of selecting the methodologies to be used for each segment of its loan portfolio and started preliminarily testing to determine the impact of each methodology. 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. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which amended existing guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge of the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company on January 1, 2021, with earlier adoption permitted and is not expected to have a significant impact on the financial statements and disclosures.

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 (in thousands): Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 8 $ — $ 258 Government National Mortgage Association ("GNMA") mortgage-backed securities – residential 41,173 87 (389) 40,871 Federal National Mortgage Association ("FNMA") mortgage-backed securities – residential 2,666 69 — 2,735 Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS") 9,205 — (569) 8,636 Total securities available-for-sale $ 53,294 $ 164 $ (958) $ 52,500 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Investment securities available-for-sale: U.S. Treasury debt $ 250 $ 4 $ — $ 254 GNMA mortgage-backed securities – residential 45,490 157 (335) 45,312 FNMA mortgage-backed securities – residential 2,935 11 (29) 2,917 Corporate CMO and MBS 10,425 40 (45) 10,420 Total securities available-for-sale $ 59,100 $ 212 $ (409) $ 58,903
Summary of the amortized cost and estimated fair value of available for sale securities, excluding SBIC with contractual maturity dates	Amortized Fair March 31, 2020 Cost Value Due after one year through five years $ 250 $ 258 Securities (agency and CMO) 53,044 52,242 Total $ 53,294 $ 52,500
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 March 31, 2020 and December 31, 2019, 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 March 31, 2020 Value Losses Value Losses Value Losses GNMA $ 29,866 $ (270) $ 3,889 $ (119) $ 33,755 $ (389) FNMA — — — — — — Corporate CMO and MBS 8,637 (569) — — 8,637 (569) Total $ 38,503 $ (839) $ 3,889 $ (119) $ 42,392 $ (958) Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses GNMA $ 28,203 $ (193) $ 4,450 $ (142) $ 32,653 $ (335) FNMA — — 2,347 (29) 2,347 (29) Corporate CMO and MBS 7,780 (45) — — 7,780 (45) Total $ 35,983 $ (238) $ 6,797 $ (171) $ 42,780 $ (409)

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
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): March 31, December 31, 2020 2019 Cash, Securities and Other $ 147,157 $ 146,701 Construction and Development 25,461 28,120 1-4 Family Residential 412,306 400,134 Non-Owner Occupied CRE 192,350 165,179 Owner Occupied CRE 121,138 127,968 Commercial and Industrial 144,066 128,457 Total loans 1,042,478 996,559 Deferred costs, net 1,473 1,448 Allowance for loan losses (8,242) (7,875) Loans, net $ 1,035,709 $ 990,132
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 March 31, 2020 and December 31, 2019 (in thousands): 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded March 31, 2020 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ — $ 31 $ 1,493 $ 1,524 $ 145,633 $ 147,157 Construction and Development — — — — 25,461 25,461 1-4 Family Residential 3,162 202 — 3,364 408,942 412,306 Non-Owner Occupied CRE — — — — 192,350 192,350 Owner Occupied CRE — — — — 121,138 121,138 Commercial and Industrial 984 — 4,138 5,122 138,944 144,066 Total $ 4,146 $ 233 $ 5,631 $ 10,010 $ 1,032,468 $ 1,042,478 30-59 60-89 90 or Total Total Days Days More Days Loans Recorded December 31, 2019 Past Due Past Due Past Due Past Due Current Investment Cash, Securities and Other $ 525 $ — $ — $ 525 $ 146,176 $ 146,701 Construction and Development — — — — 28,120 28,120 1-4 Family Residential 5,688 — — 5,688 394,446 400,134 Non-Owner Occupied CRE — — — — 165,179 165,179 Owner Occupied CRE — — — — 127,968 127,968 Commercial and Industrial — 3,110 907 4,017 124,440 128,457 Total $ 6,213 $ 3,110 $ 907 $ 10,230 $ 986,329 $ 996,559
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): March 31, December 31, 2020 2019 Cash, Securities and Other $ 1,493 $ 2,803 Construction and Development — — 1-4 Family Residential — — Non-Owner Occupied CRE — — Owner Occupied CRE — — Commercial and Industrial 4,138 4,412 Total $ 5,631 $ 7,215
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): March 31, December 31, 2020 2019 Accruing Commercial and Industrial $ 4,820 $ 5,055 Non-accrual Cash, Securities, and Other 1,493 2,803 Commercial and Industrial 4,138 4,412 Allowance for loan associated with TDR (683) (833) Net recorded investment $ 9,768 $ 11,437
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): March 31, 2020 December 31, 2019 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 $ 4,138 $ 4,138 $ 683 $ 4,412 $ 4,412 $ 833 Total $ 4,138 $ 4,138 $ 683 $ 4,412 $ 4,412 $ 833 Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 1,493 $ 1,493 $ — $ 2,803 $ 2,803 $ — Commercial and Industrial 4,820 4,820 — 5,055 5,055 — Total $ 6,313 $ 6,313 $ — $ 7,858 $ 7,858 $ — Total impaired loans: Cash, Securities, and Other $ 1,493 $ 1,493 $ — $ 2,803 $ 2,803 $ — Commercial and Industrial 8,958 8,958 683 9,467 9,467 833 Total $ 10,451 $ 10,451 $ 683 $ 12,270 $ 12,270 $ 833 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 March 31, 2020 and 2019 are included in the table below (in thousands): The three months ended March 31, 2020 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans with a valuation allowance: Commercial and Industrial $ 4,275 $ — $ 1,585 $ — Total $ 4,275 $ — $ 1,585 $ — Impaired loans with no related valuation allowance: Cash, Securities, and Other $ 2,148 $ — $ 11,114 $ — Commercial and Industrial 4,937 81 4,968 120 Total $ 7,085 $ 81 $ 16,082 $ 120 Total impaired loans: Cash, Securities, and Other $ 2,148 $ — $ 11,114 $ — Commercial and Industrial 9,212 81 6,553 120 Total $ 11,360 $ 81 $ 17,667 $ 120
Schedule of activity in the Company’s allowance for loan losses by portfolio class	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 March 31, 2020 Beginning balance $ 1,058 $ 200 $ 2,850 $ 1,176 $ 911 $ 1,680 $ 7,875 Provision for (recovery of) loan losses 34 (14) 158 227 (27) (11) 367 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 1,092 $ 186 $ 3,008 $ 1,403 $ 884 $ 1,669 $ 8,242 Allowance for loan losses at March 31, 2020 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 683 $ 683 Collectively 1,092 186 3,008 1,403 884 986 7,559 Ending balance $ 1,092 $ 186 $ 3,008 $ 1,403 $ 884 $ 1,669 $ 8,242 Loans at March 31, 2020, evaluated for impairment: Individually $ 1,493 $ — $ — $ — $ — $ 8,958 $ 10,451 Collectively 145,664 25,461 412,306 192,350 121,138 135,108 1,032,027 Ending balance $ 147,157 $ 25,461 $ 412,306 $ 192,350 $ 121,138 $ 144,066 $ 1,042,478 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 March 31, 2019 Beginning balance $ 764 $ 232 $ 2,552 $ 1,264 $ 789 $ 1,850 $ 7,451 Provision for (recovery of) loan losses 113 34 36 (29) (9) 49 194 Charge-offs — — — — — — — Recoveries — — — — — — — Ending balance $ 877 $ 266 $ 2,588 $ 1,235 $ 780 $ 1,899 $ 7,645 Allowance for loan losses at December 31, 2019 allocated to loans evaluated for impairment: Individually $ — $ — $ — $ — $ — $ 833 $ 833 Collectively 1,058 200 2,850 1,176 911 847 7,042 Ending balance $ 1,058 $ 200 $ 2,850 $ 1,176 $ 911 $ 1,680 $ 7,875 Loans at December 31, 2019, evaluated for impairment: Individually $ 2,803 $ — $ — $ — $ — $ 9,467 $ 12,270 Collectively 143,898 28,120 400,134 165,179 127,968 118,990 984,289 Ending balance $ 146,701 $ 28,120 $ 400,134 $ 165,179 $ 127,968 $ 128,457 $ 996,559
Summary of recorded investment in the Company’s loans by class and by credit quality indicator	Special March 31, 2020 Pass Mention Substandard Total Cash, Securities and Other $ 145,444 $ — $ 1,713 $ 147,157 Construction and Development 25,461 — — 25,461 1-4 Family Residential 406,450 — 5,856 412,306 Non-Owner Occupied CRE 191,205 1,145 — 192,350 Owner Occupied CRE 121,138 — — 121,138 Commercial and Industrial 130,377 — 13,689 144,066 Total $ 1,020,075 $ 1,145 $ 21,258 $ 1,042,478 Special December 31, 2019 Pass Mention Substandard Total Cash, Securities and Other $ 143,898 $ — $ 2,803 $ 146,701 Construction and Development 28,120 — — 28,120 1-4 Family Residential 395,224 — 4,910 400,134 Non-Owner Occupied CRE 164,021 1,158 — 165,179 Owner Occupied CRE 127,968 — — 127,968 Commercial and Industrial 114,241 — 14,216 128,457 Total $ 973,472 $ 1,158 $ 21,929 $ 996,559

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill.
Schedule of changes in carrying amount of goodwill	Wealth Management Capital Management Consolidated 2020 2019 2020 2019 2020 2019 Beginning balance $ 15,994 $ 15,994 $ 3,692 $ 8,817 $ 19,686 $ 24,811 Impairment — — — (1,572) — (1,572) Reclass of goodwill held for sale — — — (3,553) — (3,553) Ending balance $ 15,994 $ 15,994 $ 3,692 $ 3,692 $ 19,686 $ 19,686

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
LEASES
Lease Balance Sheet Location	The Company elected to not include short-term leases with initial terms of twelve months or less, on the condensed consolidated balance sheet, (in thousands). March 31, 2020 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 9,650 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 12,666 March 31, 2020 Weighted-Average Remaining Lease Term Operating leases 4.74 years Weighted-Average Discount Rate Operating leases 3.72 %
Lease Costs	The following table represents the Company’s net lease costs, (in thousands): Three Months Ended March 31, 2020 2019 Lease Costs Operating lease cost $ 801 $ 783 Variable lease cost 461 388 Sublease income (99) (99) Lease costs, net $ 1,163 $ 1,072
Schedule of Minimum Lease Payments Due	Twelve Months Ended Operating Leases March 31, 2021 $ 3,273 March 31, 2022 2,756 March 31, 2023 2,666 March 31, 2024 2,254 March 31, 2025 2,139 Thereafter 743 Total future minimum lease payments $ 13,831 Less: Imputed interest (1,165) Present value of net future minimum lease payments $ 12,666

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2020
DEPOSITS
Schedule of interest bearing deposits	The following presents the Company’s interest-bearing deposits at the dates noted (in thousands): March 31, December 31, 2020 2019 Money market deposit accounts $ 671,641 $ 615,575 Time deposits 150,190 134,913 Negotiable order of withdrawal accounts 82,092 91,921 Savings accounts 3,923 4,307 Total interest bearing deposits $ 907,846 $ 846,716 Aggregate time deposits of $250,000 or greater $ 63,354 $ 61,596

BORROWINGS (Tables)

BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2020
BORROWINGS
Schedule of borrowings from FHLB Topeka	The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands): March 31, December 31, Maturity Date Rate % 2020 2019 August 26, 2020 1.94 10,000 10,000 Total $ 10,000 $ 10,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2020
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): March 31, 2020 December 31, 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 31,690 $ 274,056 $ 32,896 $ 290,653 Standby letters of credit 1,734 24,099 1,759 24,197 Commitments to make loans to sell $ 236,198 $ — $ 47,354 $ —

SHAREHOLDERS EQUITY (Tables)

SHAREHOLDERS EQUITY (Tables)	3 Months Ended
	Mar. 31, 2020
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 December 31, 2019 419,197 $ 29.02 Granted - - Exercised - - Forfeited or expired - - Outstanding at March 31, 2020 419,197 29.02 3.4 (a) Options fully vested / exercisable at March 31, 2020 396,916 $ 29.20 3.2 (a) ________________________________________ (a) Nonqualified stock options outstanding at the end of the period and those fully vested / exercisable had immaterial aggregate intrinsic values.
Schedule of summarizes the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units	Time Financial Market Vesting Performance Performance Units Units Units Outstanding at December 31, 2019 209,444 69,426 14,862 Granted 2,072 1,866 - Vested - - - Forfeited (304) - - Outstanding at March 31, 2020

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Earnings per common share - Basic Numerator: Net income $ 1,334 $ 1,627 Dividends on preferred stock — — Net income available for common shareholders $ 1,334 $ 1,627 Denominator: Basic weighted average shares 7,863,564 7,873,718 Earnings per common share - basic $ 0.17 $ 0.21 Earnings per common share - Diluted Numerator: Net income $ 1,334 $ 1,627 Dividends on preferred stock — — Net income available for common shareholders $ 1,334 $ 1,627 Denominator: Basic weighted average shares 7,863,564 7,873,718 Diluted effect of common stock equivalents: Stock options — — Time Vesting Units 28,632 2,080 Financial Performance Units 25,049 — Market Performance Units 13,366 13,846 Restricted Stock Awards — — Total diluted effect of common stock equivalents 67,047 15,926 Diluted weighted average shares 7,930,611 7,889,644 Earnings per common share - diluted $ 0.17 $ 0.21
Schedule of Antidilutive securities	For the Three Months Ended 2020 2019 Stock options 419,197 449,797 Time Vesting Units 86,923 159,991 Financial Performance Units — 15,130 Restricted Stock Awards 61,668 94,736 Total potentially dilutive securities 567,788 719,654

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2020
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): March 31, 2020 December 31, 2019 Balance, beginning of year $ 3,198 $ 2,659 Funded loans 768 9,118 Payments collected (3,598) (8,579) Balance, end of year $ 368 $ 3,198

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2020
FAIR VALUE
Summary of assets measured at fair value on recurring basis	The following presents assets measured on a recurring basis at March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported March 31, 2020 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 258 $ — $ — $ 258 GNMA — 40,871 — 40,871 FNMA — 2,735 — 2,735 Corporate CMO and MBS — 8,636 — 8,636 Total securities available-for-sale $ 258 $ 52,242 $ — $ 52,500 Equity securities $ 726 $ — $ — $ 726 Interest rate lock and forward delivery commitments $ — $ 4,025 $ — $ 4,025 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2019 (Level 1) (Level 2) (Level 3) Balance Investment securities available-for-sale: U.S. Treasury debt $ 254 $ — $ — $ 254 GNMA — 45,312 — 45,312 FNMA — 2,917 — 2,917 Corporate CMO and MBS — 10,420 — 10,420 Total securities available-for-sale $ 254 $ 58,649 $ — $ 58,903 Equity securities $ 713 $ — $ — $ 713 Interest rate lock and forward delivery commitments $ — $ 1,184 $ — $ 1,184 Mutual funds
Summary of assets measured at fair value on nonrecurring basis	The following presents assets measured on a nonrecurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported March 31, 2020 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 3,455 $ 3,455 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Reported December 31, 2019 (Level 1) (Level 2) (Level 3) Balance Other real estate owned: Commercial properties $ — $ — $ 658 $ 658 Total impaired loans: Commercial and industrial $ — $ — $ 3,579 $ 3,579
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 March 31, 2020 and December 31, 2019 (in thousands): Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 118,514 $ 118,514 $ — $ — Securities available-for-sale 52,500 258 52,242 — Loans, net 1,035,709 — — 1,024,928 Mortgage loans held for sale 64,120 — 64,120 — Accrued interest receivable 3,107 — 3,107 — Other assets 726 726 — — Liabilities: Deposits 1,178,450 — 1,180,755 — Borrowings: FHLB Topeka borrowings – fixed rate 10,000 — 10,060 — Subordinated notes – fixed-to-floating rate 14,459 — — 13,800 Accrued interest payable $ 417 $ — $ 417 $ — Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 78,638 $ 78,638 $ — $ — Securities available-for-sale 58,903 254 58,649 — Loans, net 990,132 — — 974,142 Mortgage loans held for sale 48,312 — 48,312 — Accrued interest receivable 3,048 — 3,048 — Other assets 713 713 — — Liabilities: Deposits 1,086,784 — 1,089,261 — Borrowings: FHLB Topeka borrowings – fixed rate 10,000 — 10,003 — Subordinated notes – fixed-to-floating rate 6,560 — — 6,004 Accrued interest payable $ 299 $ — $ 299 $ —

INTANGIBLE ASSETS AND OTHER L_2

INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE (Tables)	3 Months Ended
	Mar. 31, 2020
INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE
Schedule of assets and liabilities in disposal groups held for sale	Intangible assets and other liabilities in disposal groups held for sale, all of which are included in the Capital Management segment, are as follows at the dates noted (in thousands): March 31, December 31, 2020 2019 ASSETS Goodwill $ 3,000 $ 3,553 Assets in disposal groups held for sale $ 3,000 $ 3,553 LIABILITIES Other liabilities $ 126 $ 117 Liabilities in disposal groups held for sale $ 126 $ 117

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2020
SEGMENT REPORTING
Schedule of segment data	Three Months Ended March 31, 2020 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,512 $ — $ — $ 11,512 Total interest expense 2,581 — — 2,581 Provision for loan losses 367 — — 367 Net interest income 8,564 — — 8,564 Non-interest income 4,459 804 2,504 7,767 Total income 13,023 804 2,504 16,331 Depreciation and amortization expense 234 22 20 276 All other non-interest expense 11,171 1,430 (1) 1,770 14,371 Income (loss) before income tax $ 1,618 $ (648) $ 714 $ 1,684 Goodwill $ 15,994 $ 3,692 $ — $ 19,686 Intangibles held for sale - 3,000 — 3,000 Total assets $ 1,281,563 $ 8,199 $ 64,101 $ 1,353,863 ______________________________________ (1) Includes loss on intangibles held for sale of $0.6 million. Three Months Ended March 31, 2019 Wealth Capital Mortgage Consolidated Income Statement Total interest income $ 11,050 $ — $ — $ 11,050 Total interest expense 3,079 — — 3,079 Provision for loan losses 194 — — 194 Net interest income 7,777 — — 7,777 Non-interest income 4,732 765 1,479 6,976 Total income 12,509 765 1,479 14,753 Depreciation and amortization expense 348 131 65 544 All other non-interest expense 10,050 695 1,313 12,058 Income (loss) before income tax $ 2,111 $ (61) $ 101 $ 2,151 Goodwill $ 15,994 $ 8,817 $ — $ 24,811 Total assets $ 1,114,800 $ 10,110 $ 19,778 $ 1,144,688

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	3 Months Ended
	Mar. 31, 2020
REGULATORY CAPITAL MATTERS
Schedule of actual and required capital ratios	The following presents the actual and required capital amounts and ratios as of March 31, 2020 and December 31, 2019 (in thousands): To be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Regulations March 31, 2020 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 102,022 10.35 % $ 59,125 6.0 % $ 78,834 8.0 % Consolidated 108,395 10.96 N/A N/A N/A N/A CET 1 to risk-weighted assets Bank 102,022 10.35 44,344 4.5 64,053 6.5 Consolidated 108,395 10.96 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 110,652 11.23 78,834 8.0 98,542 10.0 Consolidated 131,586 13.31 N/A N/A N/A N/A Tier 1 capital to average assets Bank 102,022 8.33 48,985 4.0 61,231 5.0 Consolidated $ 108,395 8.81 % $ 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, 2019 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 99,461 10.67 % $ 55,954 6.0 % $ 74,606 8.0 % Consolidated 105,821 11.31 N/A N/A N/A N/A CET 1 to risk-weighted assets Bank 99,461 10.67 41,966 4.5 60,617 6.5 Consolidated 105,821 11.31 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 107,509 11.53 74,606 8.0 93,257 10.0 Consolidated 120,429 12.87 N/A N/A N/A N/A Tier 1 capital to average assets Bank 99,461 8.09 49,166 4.0 61,458 5.0 Consolidated $ 105,821 8.58 % $ 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)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Customer concentration | Loan portfolio
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	71.50%	71.70%

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized cost and fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 53,294	$ 59,100
Gross Unrealized Gains	164	212
Gross Unrealized Losses	(958)	(409)
Fair Value	52,500	58,903
U.S. Treasury debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	250	250
Gross Unrealized Gains	8	4
Fair Value	258	254
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	41,173	45,490
Gross Unrealized Gains	87	157
Gross Unrealized Losses	(389)	(335)
Fair Value	40,871	45,312
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,666	2,935
Gross Unrealized Gains	69	11
Gross Unrealized Losses		(29)
Fair Value	2,735	2,917
Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,205	10,425
Gross Unrealized Gains		40
Gross Unrealized Losses	(569)	(45)
Fair Value	$ 8,636	$ 10,420

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)security	Dec. 31, 2019USD ($)security
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 53,294	$ 59,100
Fair Value	52,500	58,903
Debt available for sale securities pledged as collateral	$ 5,100	$ 5,500
Threshold Percentage Of Shareholders Equity Amount Held As Securities By One Issuer	10.00%	10.00%
Unrealized loss	$ 958	$ 409
Number of securities in continuous unrealized loss position for more than twelve months | security	2
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	258
Mortgage-related securities, amortized cost	53,044
Mortgage-related securities, fair value	52,242
Amortized Cost	53,294
Fair Value	$ 52,500
Number of securities in unrealized loss position | security	33	26

INVESTMENT SECURITIES - Securit

INVESTMENT SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	$ 38,503	$ 35,983
Less than 12 months, Unrealized Losses	(839)	(238)
More than 12 months, Fair Value	3,889	6,797
More than 12 months, Unrealized Losses	(119)	(171)
Total Fair Value	42,392	42,780
Total Unrealized Losses	(958)	(409)
Sales	0	0
Association (“GNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	29,866	28,203
Less than 12 months, Unrealized Losses	(270)	(193)
More than 12 months, Fair Value	3,889	4,450
More than 12 months, Unrealized Losses	(119)	(142)
Total Fair Value	33,755	32,653
Total Unrealized Losses	(389)	(335)
Federal National Mortgage Association (“FNMA”) mortgage-backed securities – residential
Debt Securities, Available-for-sale [Line Items]
More than 12 months, Fair Value		2,347
More than 12 months, Unrealized Losses		(29)
Total Fair Value		2,347
Total Unrealized Losses		(29)
Corporate collateralized mortgage obligations (”CMO”) and mortgage-backed securities (”MBS”)
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, Fair Value	8,637	7,780
Less than 12 months, Unrealized Losses	(569)	(45)
Total Fair Value	8,637	7,780
Total Unrealized Losses	$ (569)	$ (45)

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary of loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,042,478	$ 996,559
Deferred costs, net	1,473	1,448
Allowance for loan losses	(8,242)	(7,875)
Net loans	1,035,709	990,132
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	147,157	146,701
Construction and Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	25,461	28,120
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	412,306	400,134
Non-Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	192,350	165,179
Owner Occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	121,138	127,968
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 144,066	$ 128,457

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	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 10,010	$ 10,230
Total current	1,032,468	986,329
Total Recorded Investment	1,042,478	996,559
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,146	6,213
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	233	3,110
90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,631	907
Cash, Securities and Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,524	525
Total current	145,633	146,176
Total Recorded Investment	147,157	146,701
Cash, Securities and Other | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		525
Cash, Securities and Other | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	31
Cash, Securities and Other | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,493
Construction and Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	25,461	28,120
Total Recorded Investment	25,461	28,120
1-4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,364	5,688
Total current	408,942	394,446
Total Recorded Investment	412,306	400,134
1-4 Family Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,162	5,688
1-4 Family Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	202
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	192,350	165,179
Total Recorded Investment	192,350	165,179
Owner Occupied CRE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current	121,138	127,968
Total Recorded Investment	121,138	127,968
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,122	4,017
Total current	138,944	124,440
Total Recorded Investment	144,066	128,457
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	984
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		3,110
Commercial and Industrial | 90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 4,138	$ 907

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	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 5,631	$ 7,215
Recorded investments	5,600	7,200
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	1,493	2,803
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 4,138	$ 4,412

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, 2019USD ($)loan	Mar. 31, 2020USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 12,270	$ 10,451
Allowance for loan associated with TDR	(833)	(683)
Net recorded investment	$ 11,437	9,768
Additional funds to loans classified as TDRs		200
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	$ 2,803	1,493
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	9,467	8,958
Allowance for loan associated with TDR	(833)	(683)
Accrual Loans | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	5,055	4,820
Loans on nonaccrual status | Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	2,803	1,493
Loans on nonaccrual status | Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 4,412	$ 4,138

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
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance	$ 4,138		$ 4,412
Total Recorded Investment With No Allowance	6,313		7,858
Total Recorded Investment	10,451		12,270
Unpaid Contractual Principal Balance with a valuation Allowance	4,138		4,412
Unpaid Contractual Principal Balance with no related valuation Allowance	6,313		7,858
Unpaid Contractual Principal Balance	10,451		12,270
Allowance for Loan Losses	683		833
Average Recorded Investment with Allowance	4,275	$ 1,585
Average Recorded Investment with No Allowance	7,085	16,082
Average Recorded Investment	11,360	17,667
Interest Income Recognized with No Allowance	81	120
Interest Income Recognized	81	120
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With Allowance	4,138		4,412
Total Recorded Investment With No Allowance	4,820		5,055
Total Recorded Investment	8,958		9,467
Unpaid Contractual Principal Balance with a valuation Allowance	4,138		4,412
Unpaid Contractual Principal Balance with no related valuation Allowance	4,820		5,055
Unpaid Contractual Principal Balance	8,958		9,467
Allowance for Loan Losses	683		833
Average Recorded Investment with Allowance	4,275	1,585
Average Recorded Investment with No Allowance	4,937	4,968
Average Recorded Investment	9,212	6,553
Interest Income Recognized with No Allowance	81	120
Interest Income Recognized	81	120
Cash, Securities and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment With No Allowance	1,493		2,803
Total Recorded Investment	1,493		2,803
Unpaid Contractual Principal Balance with no related valuation Allowance	1,493		2,803
Unpaid Contractual Principal Balance	1,493		$ 2,803
Average Recorded Investment with No Allowance	2,148	11,114
Average Recorded Investment	$ 2,148	$ 11,114

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		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 7,875	$ 7,451	$ 7,451
Provision for (recovery of) credit losses	367	194
Ending balance	8,242	7,645	7,875
Individually evaluated	683		833
Collectively evaluated	7,559		7,042
Loans individually evaluated	10,451		12,270
Loans collectively evaluated	1,032,027		984,289
Total Recorded Investment	1,042,478		996,559
Provision for loan losses	400	200
Cash, Securities and Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,058	764	764
Provision for (recovery of) credit losses	34	113
Ending balance	1,092	877	1,058
Collectively evaluated	1,092		1,058
Loans individually evaluated	1,493		2,803
Loans collectively evaluated	145,664		143,898
Total Recorded Investment	147,157		146,701
Construction and Development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	200	232	232
Provision for (recovery of) credit losses	(14)	34
Ending balance	186	266	200
Collectively evaluated	186		200
Loans collectively evaluated	25,461		28,120
Total Recorded Investment	25,461		28,120
1-4 Family Residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,850	2,552	2,552
Provision for (recovery of) credit losses	158	36
Ending balance	3,008	2,588	2,850
Collectively evaluated	3,008		2,850
Loans collectively evaluated	412,306		400,134
Total Recorded Investment	412,306		400,134
Non-Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,176	1,264	1,264
Provision for (recovery of) credit losses	227	(29)
Ending balance	1,403	1,235	1,176
Collectively evaluated	1,403		1,176
Loans collectively evaluated	192,350		165,179
Total Recorded Investment	192,350		165,179
Owner Occupied CRE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	911	789	789
Provision for (recovery of) credit losses	(27)	(9)
Ending balance	884	780	911
Collectively evaluated	884		911
Loans collectively evaluated	121,138		127,968
Total Recorded Investment	121,138		127,968
Commercial and Industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	1,680	1,850	1,850
Provision for (recovery of) credit losses	(11)	49
Ending balance	1,669	$ 1,899	1,680
Individually evaluated	683		833
Collectively evaluated	986		847
Loans individually evaluated	8,958		9,467
Loans collectively evaluated	135,108		118,990
Total Recorded Investment	$ 144,066		$ 128,457

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investment in company's loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,042,478	$ 996,559
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,020,075	973,472
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,145	1,158
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	21,258	21,929
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Cash, Securities and Other
Financing Receivable, Recorded Investment [Line Items]
Total loans	147,157	146,701
Cash, Securities and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	145,444	143,898
Cash, Securities and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,713	2,803
Construction and Development
Financing Receivable, Recorded Investment [Line Items]
Total loans	25,461	28,120
Construction and Development | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	25,461	28,120
1-4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total loans	412,306	400,134
1-4 Family Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	406,450	395,224
1-4 Family Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,856	4,910
Non-Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	192,350	165,179
Non-Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	191,205	164,021
Non-Owner Occupied CRE | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,145	1,158
Owner Occupied CRE
Financing Receivable, Recorded Investment [Line Items]
Total loans	121,138	127,968
Owner Occupied CRE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	121,138	127,968
Commercial and Industrial
Financing Receivable, Recorded Investment [Line Items]
Total loans	144,066	128,457
Commercial and Industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans	130,377	114,241
Commercial and Industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 13,689	$ 14,216

GOODWILL (Details)

GOODWILL (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Balance at beginning of period	$ 19,686,000	$ 24,811,000
Impairment		(1,572,000)
Reclass of goodwill held for sale		(3,553,000)
Balance at end of period	19,686,000	19,686,000
Change in goodwill	0
Wealth Management
Goodwill [Roll Forward]
Balance at beginning of period	15,994,000	15,994,000
Balance at end of period	15,994,000	15,994,000
Capital Management
Goodwill [Roll Forward]
Balance at beginning of period	3,692,000	8,817,000
Impairment		(1,572,000)
Reclass of goodwill held for sale		(3,553,000)
Balance at end of period	$ 3,692,000	$ 3,692,000

LEASES - Leases Balance Sheets

LEASES - Leases Balance Sheets Location (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2019
Operating lease right-of-use asset	$ 9,650
Financial position	us-gaap:OtherAssets
Operating lease liability	$ 12,666
Financial position	us-gaap:OtherLiabilities
Weighted-Average Remaining Lease Term - Operating leases	4 years 8 months 27 days
Weighted-Average Discount Rate - Operating leases	3.72%
ASU 2016-02
Operating lease right-of-use asset		$ 12,900
Operating lease liability		$ 16,600

LEASES - Leases Costs (Details)

LEASES - Leases Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
LEASES
Operating lease cost	$ 801	$ 783
Variable lease cost	461	388
Sublease income	(99)	(99)
Lease costs, net	$ 1,163	$ 1,072

LEASES - Lease Maturity (Detail

LEASES - Lease Maturity (Details) $ in Thousands	Mar. 31, 2020USD ($)
LEASES
March 31, 2021	$ 3,273
March 31, 2022	2,756
March 31, 2023	2,666
March 31, 2024	2,254
March 31, 2025	2,139
Thereafter	743
Total future minimum lease payments	13,831
Less: Imputed interest	(1,165)
Present value of net future minimum lease payments	$ 12,666

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
DEPOSITS
Money market deposit accounts	$ 671,641	$ 615,575
Time deposits	150,190	134,913
Negotiable order of withdrawal accounts	82,092	91,921
Savings accounts	3,923	4,307
Total interest bearing deposits	907,846	846,716
Aggregate time deposits of $250,000 or greater	63,354	61,596
Overdrafts balances classified As loans	$ 1,400	$ 1,400

BORROWINGS (Details)

BORROWINGS (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 17, 2020USD ($)
BORROWINGS
Number of unsecured federal funds lines of credit	3	3
90 Day London Interbank Offered Rate [Member]
BORROWINGS
Basis spread (as a percent)	450.00%
Federal Funds Lines of Credit One
BORROWINGS
Maximum borrowing capacity	$ 10,000,000	$ 10,000,000
Amount outstanding	0	0
Federal Funds Lines of Credit Two
BORROWINGS
Maximum borrowing capacity	19,000,000	19,000,000
Amount outstanding	0	0
Federal Funds Line of Credit Three
BORROWINGS
Maximum borrowing capacity	25,000,000	25,000,000
Amount outstanding	$ 0	0
Subordinated Notes 2020
BORROWINGS
Face amount			$ 8,000,000
interest rate (as a percent)	5.125%
Promissory and Credit Note [Member]
BORROWINGS
Maximum borrowing capacity	$ 5,000,000	5,000,000
Amount outstanding	$ 0	0
Credit Note [Member] | London 30 Day Interbank Offered Rate [Member]
BORROWINGS
Basis spread (as a percent)	3.50%
FHLB Topeka
BORROWINGS
Amount of collateral pledged	$ 568,300,000	515,500,000
Available balance	378,700,000
Borrowings from FHLB	$ 10,000,000	10,000,000
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	Mar. 31, 2020	Dec. 31, 2019
Unused lines of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 31,690	$ 32,896
Standby letters of credit-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	1,734	1,759
Commitments to make loans to sell-Fixed
COMMITMENTS AND CONTINGENCIES
Other commitment	236,198	47,354
Unused lines of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	274,056	290,653
Standby letters of credit-Variable
COMMITMENTS AND CONTINGENCIES
Other commitment	$ 24,099	$ 24,197

SHAREHOLDERS EQUITY - Common St

SHAREHOLDERS EQUITY - Common Stock (Details) - $ / shares	Jun. 14, 2019	Mar. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common stock par value		$ 0	$ 0
Common Stock
Class of Stock [Line Items]
Common stock par value		$ 0
Authorized share repurchase	300,000
Number of votes per each share		one
Effective term of program	1 year
Number of shares repurchased		22,679	43,698
Shares repurchased average price per share		$ 16.50	$ 16.51
Balance to be repurchased		233,623

SHAREHOLDERS EQUITY - Stock bas

SHAREHOLDERS EQUITY - Stock based compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2017
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued				105,264
Value of shares issued				$ 3
Weighted-average grant date fair value (in dollars per share)	$ 28.50
Recognized compensation expense	$ 0.2	$ 0.1
Unrecognized compensation expense	$ 1.2
Unrecognized compensation expense recognition period (in years)	1 year
Number of stock awards vested	0	0
Employee service period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued				52,632
Value of shares issued				$ 1.5
Vesting period (in years)				5 years
Performance of mortgage division
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued				52,632
Value of shares issued				$ 1.5
Recognized compensation expense	$ 0.2		$ 0.6
Shares non-vested	14,114		38,518

SHAREHOLDERS EQUITY - Stock b_2

SHAREHOLDERS EQUITY - Stock based compensation - Stock Options (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)shares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0.1
Unrecognized stock-based compensation expense	$ 0.2
Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense recognition period (in years)	1 year
Plan 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance | shares	648,635
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	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of year (in shares)	419,197
Granted (in shares)		0
Outstanding at end of period (in shares)	419,197
Options fully vested / exercisable at end of period (in shares)	396,916		394,020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 29.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	29.02
Options fully vested / exercisable at December 31, 2019	$ 29.20
Weighted Average Remaining Contractual Term
Outstanding at end of year	3 years 4 months 24 days
Options fully vested / exercisable at December 31, 2019	3 years 2 months 12 days
Aggregate Intrinsic Value
Exercise price low range	$ 20
Exercise price high range	$ 40
Expiry period	10 years

SHAREHOLDERS EQUITY - Stock b_4

SHAREHOLDERS EQUITY - Stock based compensation - Share Awards (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
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	209,444
Granted (in shares)	2,072
Vested (in shares)	0	0
Forfeited (in shares)	(304)
Outstanding at end of year	211,212
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	69,426
Granted (in shares)	1,866
Outstanding at end of year	71,292
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	14,862
Outstanding at end of year	14,862
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Vested (in shares)	0	0

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
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period (in years)	5 years
Weighted average grant date fair value	$ 14.43
Granted (in shares)	2,072
Stock-based compensation expense	$ 0.3	$ 0.2
Unrecognized compensation expense	$ 3.2
Unrecognized compensation expense recognition period (in years)	1 year 7 months 6 days
Anniversary of grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Percentage	20.00%
Granted (in shares)	2,072

SHAREHOLDERS EQUITY - Stock b_6

SHAREHOLDERS EQUITY - Stock based compensation - Financial Performance Units (Details) - USD ($) $ in Millions	May 01, 2019	Mar. 31, 2020
Financial Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		1,866
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%
Maximum number of shares can be issued		10,000
Unrecognized compensation expense		$ 0.1
Unrecognized compensation expense recognition period (in years)		1 year 9 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)	62,569	1,866
Maximum percentage of shares can be issued		100.00%
Maximum number of shares can be issued		58,000
Unrecognized compensation expense		$ 0.7
Unrecognized compensation expense recognition period (in years)		3 years 9 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	3 Months Ended
	Mar. 31, 2020USD ($)
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 3 months 18 days

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income	$ 1,334	$ 1,627
Dividends on preferred stock
Net income available for common shareholders	$ 1,334
Denominator:
Earnings per common share - basic	$ 0.17
Numerator:
Net income	$ 1,334	1,627
Dividends on preferred stock
Diluted effect of common stock equivalents:
Earnings per common share - diluted	$ 0.17
Stock options
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents
Restricted Stock Awards
Diluted effect of common stock equivalents:
Diluted effect of common stock equivalents

EARNINGS PER COMMON SHARE - Ant

EARNINGS PER COMMON SHARE - Anti-dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	567,788	719,654
Stock options
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	419,197	449,797
Time Vesting Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	86,923	159,991
Financial Performance Units
EARNINGS PER COMMON SHARE
Total potentially dilutive securities		15,130
Restricted Stock Awards
EARNINGS PER COMMON SHARE
Total potentially dilutive securities	61,668	94,736

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INCOME TAXES
Income tax provision	$ 350
Effective income tax rate	20.80%	24.40%

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Summary of related party loan activity
Balance, beginning of year	$ 3,198	$ 2,659
Funded loans	768	9,118
Payments collected	(3,598)	(8,579)
Balance, end of year	368	3,198
Deposits from related parties	30,500	$ 28,500
Trust and investment management fees	$ 4,731

FAIR VALUE - General (Details)

FAIR VALUE - General (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
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	Mar. 31, 2020	Dec. 31, 2019
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 52,500	$ 58,903
U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	258	254
Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	52,500	58,903
Equity securities	726	713
Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	258	254
Recurring | Corporate collateralized mortgage obligations and mortgage-backed securities
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	8,636	10,420
Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	4,025	1,184
Recurring | GNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	40,871	45,312
Recurring | FNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	2,735	2,917
Level 1 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	258	254
Equity securities	726	713
Level 1 | Recurring | U.S. Treasury debt
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	258	254
Level 2 | Recurring
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	52,242	58,649
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	8,636	10,420
Level 2 | Recurring | Interest rate lock and forward delivery commitments
Summary of assets measured on a recurring and nonrecurring basis
Derivative asset, Fair value	4,025	1,184
Level 2 | Recurring | GNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	40,871	45,312
Level 2 | Recurring | FNMA
Summary of assets measured on a recurring and nonrecurring basis
Total securities available-for-sale	$ 2,735	$ 2,917

FAIR VALUE - Summary of asset_2

FAIR VALUE - Summary of assets measured at fair value on Non recurring basis (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	$ 658,000		$ 658,000
Impaired loans	9,768,000		11,437,000
Other real estate owned, gross			2,400,000
Other real estate owned valuation allowance			1,700,000
Impaired loans carrying value	4,138,000		4,412,000
Allowance for loans	8,242,000		7,875,000
Provision for loan losses	400,000	$ 200,000
Bank charged off	0		200,000
Level 3
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans carrying value	4,100,000		4,400,000
Allowance for loans	700,000		800,000
Provision for loan losses	700,000		800,000
Commercial properties
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	700,000
Commercial properties | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000		658,000
Commercial properties | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Other real estate owned	658,000		658,000
Commercial and Industrial | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	3,455,000		3,579,000
Commercial and Industrial | Level 3 | Nonrecurring
Summary of assets measured on a recurring and nonrecurring basis
Impaired loans	$ 3,455,000		$ 3,579,000

FAIR VALUE - Summary of carryin

FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 118,514	$ 78,638	$ 69,766	$ 73,357
Fair Value	52,500	58,903
Loans, net	1,035,709	990,132
Mortgage loans held for sale	64,120	48,312
Accrued interest receivable	3,107	3,048
Other assets	24,297	16,544
Liabilities
Deposits	1,178,450	1,086,784
FHLB Topeka Borrowings – fixed rate	10,000	10,000
Subordinated notes	14,459	6,560
Accrued interest payable	417	299
Carrying Amount
Assets
Cash and cash equivalents	118,514	78,638
Fair Value	52,500	58,903
Loans, net	1,035,709	990,132
Mortgage loans held for sale	64,120	48,312
Accrued interest receivable	3,107	3,048
Other assets	726	713
Liabilities
Deposits	1,178,450	1,086,784
FHLB Topeka Borrowings – fixed rate	10,000	10,000
Accrued interest payable	417	299
Subordinated notes – fixed-to-floating rate | Carrying Amount
Liabilities
Subordinated notes	14,459	6,560
Level 1 | Estimated Fair Value
Assets
Cash and cash equivalents	118,514	78,638
Fair Value	258	254
Other assets	726	713
Level 2 | Estimated Fair Value
Assets
Fair Value	52,242	58,649
Mortgage loans held for sale	64,120	48,312
Accrued interest receivable	3,107	3,048
Liabilities
Deposits	1,180,755	1,089,261
FHLB Topeka Borrowings – fixed rate	10,060	10,003
Accrued interest payable	417	299
Level 3 | Estimated Fair Value
Assets
Loans, net	1,024,928	974,142
Level 3 | Subordinated notes – fixed-to-floating rate | Estimated Fair Value
Liabilities
Subordinated notes	$ 13,800	$ 6,004

INTANGIBLE ASSETS AND OTHER L_3

INTANGIBLE ASSETS AND OTHER LIABILITIES CLASSIFIED AS HELD FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Assets in disposal groups held for sale	$ 3,000	$ 3,553
LIABILITIES
Liabilities in disposal groups held for sale	126	117
Loss on intangibles held for sale	(553)
Disposal Group, Held-for-sale, Not Discontinued Operations
ASSETS
Goodwill	3,000	3,553
Assets in disposal groups held for sale	3,000	3,553
LIABILITIES
Other liabilities	126	117
Liabilities in disposal groups held for sale	126	$ 117
Loss on intangibles held for sale	$ 600

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Statement
Total interest income	$ 11,512	$ 11,050
Total interest expense	2,581	3,079
Provision for loan losses	367	194
Net-interest income	8,564	7,777
Non-interest income	7,767	6,976
Total income	16,331	14,753
Depreciation and amortization expense	276	544
All other non-interest expense	14,371	12,058
Income (loss) before income tax	1,684	2,151
Segment reporting
Goodwill	19,686	24,811	$ 19,686	$ 24,811
Intangibles held for sale	3,000		3,553
Total assets	1,353,863	1,144,688	1,251,682
Goodwill impairment			1,572
Loss on intangibles held for sale	(553)
Wealth Management
Income Statement
Total interest income	11,512	11,050
Total interest expense	2,581	3,079
Provision for loan losses	367	194
Net-interest income	8,564	7,777
Non-interest income	4,459	4,732
Total income	13,023	12,509
Depreciation and amortization expense	234	348
All other non-interest expense	11,171	10,050
Income (loss) before income tax	1,618	2,111
Segment reporting
Goodwill	15,994	15,994	15,994	15,994
Total assets	1,281,563	1,114,800
Capital Management
Income Statement
Non-interest income	804	765
Total income	804	765
Depreciation and amortization expense	22	131
All other non-interest expense	1,430	695
Income (loss) before income tax	(648)	(61)
Segment reporting
Goodwill	3,692	8,817	3,692	$ 8,817
Intangibles held for sale	3,000
Total assets	8,199	10,110
Goodwill impairment			$ 1,572
Loss on intangibles held for sale	600
Mortgage
Income Statement
Non-interest income	2,504	1,479
Total income	2,504	1,479
Depreciation and amortization expense	20	65
All other non-interest expense	1,770	1,313
Income (loss) before income tax	714	101
Segment reporting
Total assets	$ 64,101	$ 19,778

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2016	Mar. 31, 2020USD ($)item	Dec. 31, 2019USD ($)
REGULATORY CAPITAL MATTERS
Capital conservation buffer	0.625%	7.00%
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		$ 108,395	$ 105,821
Actual Ratio (as a percent)		10.96%	11.31%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 108,395	$ 105,821
Actual Ratio (as a percent)		10.96%	11.31%
Required for Capital Adequacy Purposes Amount (as a percent)		8.50%
Total capital to risk-weighted assets
Actual Amount		$ 131,586	$ 120,429
Actual Ratio (as a percent)		13.31%	12.87%
Required for Capital Adequacy Purposes Ratio (as a percent)		10.50%
Tier 1 capital to average assets
Actual Amount		$ 108,395	$ 105,821
Actual Ratio (as a percent)		8.81%	8.58%
Bank
Common Equity Tier 1 (CET 1) to risk-weighted assets
Actual Amount		$ 102,022	$ 99,461
Actual Ratio (as a percent)		10.35%	10.67%
Required for Capital Adequacy Purposes Amount		$ 44,344	$ 41,966
Required for Capital Adequacy Purposes Ratio (as a percent)		4.50%	4.50%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 64,053	$ 60,617
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		$ 102,022	$ 99,461
Actual Ratio (as a percent)		10.35%	10.67%
Required for Capital Adequacy Purposes Amount		$ 59,125	$ 55,954
Required for Capital Adequacy Purposes Amount (as a percent)		6.00%	6.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 78,834	$ 74,606
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		$ 110,652	$ 107,509
Actual Ratio (as a percent)		11.23%	11.53%
Required for Capital Adequacy Purposes Amount		$ 78,834	$ 74,606
Required for Capital Adequacy Purposes Ratio (as a percent)		8.00%	8.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 98,542	$ 93,257
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		$ 102,022	$ 99,461
Actual Ratio (as a percent)		8.33%	8.09%
Required for Capital Adequacy Purposes Amount		$ 48,985	$ 49,166
Required for Capital Adequacy Purposes Ratio (as a percent)		4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Regulations Amount		$ 61,231	$ 61,458
Tier One Leverage Capital Required to be Well Capitalized to Average Assets		5.00%	5.00%