Professional Holding (PFHD) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 12, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Professional Holding Corp.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		13,393,255
Entity Central Index Key	0001630856
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
ASSETS
Cash and due from banks	$ 37,694	$ 21,408
Interest-bearing deposits	85,931	150,572
Federal funds sold	30,533	26,970
Cash and cash equivalents	154,158	198,950
Securities available for sale, at fair value	97,630	28,441
Securities held to maturity (fair value March 31, 2020 – $1,686, December 31, 2019 – $224)	1,661	214
Equity securities	992	971
Loans, net of allowance of $7,393 and $6,548 as of March 31, 2020 and December 31, 2019, respectively	1,343,066	785,167
Federal Home Loan Bank stock, at cost	4,504	2,994
Federal Reserve Bank stock, at cost	2,375	2,074
Accrued interest receivable	4,408	2,498
Premises and equipment, net	5,578	4,307
Bank owned life insurance	16,987	16,858
Deferred tax asset	6,923	1,859
Goodwill	14,897
Core deposit intangibles	3,964
Other assets	14,939	8,808
Total assets	1,672,082	1,053,141
Deposits
Demand – non-interest bearing	351,095	184,211
Demand – interest bearing	735,109	599,318
Time deposits	286,137	109,344
Total deposits	1,372,341	892,873
Federal Home Loan Bank advances	70,103	55,000
Subordinated debt	9,920
Official checks	4,228	6,191
Line of credit		9,999
Accrued interest and other liabilities	14,636	9,776
Total liabilities	1,471,228	973,839
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, 10,000,000 shares authorized, none issued
Treasury stock, at cost	(6,257)	(4,155)
Additional paid-in capital	201,670	77,019
Retained earnings	5,134	6,451
Accumulated other comprehensive gain (loss)	169	(73)
Total stockholders’ equity	200,854	79,302
Total liabilities and stockholders equity	1,672,082	1,053,141
Class A Voting Common Stock
Stockholders’ equity
Common stock	131	53
Class B Non-Voting Common stock
Stockholders’ equity
Common stock	$ 7	$ 7

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities, Held to Maturity	$ 1,686	$ 224
Loans allowances	$ 7,393	$ 6,548
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Class A Voting Common Stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock Authorized	50,000,000	50,000,000
Common Stock, issued (in shares)	13,915,762	5,360,262
Common Stock, outstanding (in shares)	13,537,565	5,115,262
Class B Non-Voting Common stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock Authorized	10,000,000	10,000,000
Common Stock, issued (in shares)	752,184	752,184
Common Stock, outstanding (in shares)	752,184	752,184

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income
Loans, including fees	$ 10,015	$ 8,075
Taxable securities	222	171
Dividend income on restricted stock	79	57
Other	704	469
Total interest income	11,020	8,772
Interest expense
Deposits	2,626	2,013
Federal Home Loan Bank advances	278	238
Other borrowings	55
Total interest expense	2,959	2,251
Net interest income	8,061	6,521
Provision for loan losses	845	(113)
Net interest income after provision for loan losses	7,216	6,634
Non-interest income
Service charges on deposit accounts	222	76
Income from Bank owned life insurance	129	57
Gain on sale of securities	4
Other	501	227
Total non-interest income	856	360
Non-interest expense
Salaries and employee benefits	5,263	4,314
Occupancy and equipment	774	521
Data processing	176	162
Marketing	137	139
Professional fees	355	275
Acquisition expenses	1,663
Regulatory assessments	214	162
Other	904	937
Total non-interest expense	9,486	6,510
Income (loss) before income taxes	(1,414)	484
Income tax provision (benefit)	(97)	129
Net income (loss)	$ (1,317)	$ 355
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.14)	$ 0.06
Diluted (in dollars per share)	$ (0.14)	$ 0.06
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale	$ 324	$ 268
Tax effect	(82)	(68)
Other comprehensive gain (loss), net of tax	242	200
Comprehensive income (loss)	$ (1,075)	$ 555

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2018	$ 59	$ (220)	$ 76,152	$ 4,115	$ (425)	$ 79,681
Balance (in Shares) at Dec. 31, 2018	5,923,884
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost			55			55
Issuance of common stock, net of Issuance cost (in Shares)	3,103
Treasury stock		(173)				(173)
Treasury stock (in shares)	(10,000)
Employee stock purchase plan			29			29
Net income (loss)				355		355
Other comprehensive gain					200	200
Stock based compensation			8			8
Balance at Mar. 31, 2019	$ 59	(393)	76,244	4,470	(225)	80,155
Balance (in Shares) at Mar. 31, 2019	5,916,987
Balance at Dec. 31, 2019	$ 60	(4,155)	77,019	6,451	(73)	79,302
Balance (in Shares) at Dec. 31, 2019	5,867,446
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost	$ 36		59,771			59,807
Issuance of common stock, net of Issuance cost (in Shares)	3,575,500
Treasury stock		(2,102)	(4)			(2,106)
Treasury stock (in shares)	(133,197)
MBI acquisition	$ 42		64,657			64,699
MBI acquisition (in shares)	4,227,816
Employee stock purchase plan			31			31
Net income (loss)				(1,317)		(1,317)
Other comprehensive gain					242	242
Stock based compensation			196			196
Balance at Mar. 31, 2020	$ 138	$ (6,257)	$ 201,670	$ 5,134	$ 169	$ 200,854
Balance (in Shares) at Mar. 31, 2020	13,537,565

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income (loss)	$ (1,317)	$ 355
Adjustments to reconcile net income to net cash from operating activities
Provision for loan losses	845	(113)
Deferred income tax benefit	(209)	(8)
Depreciation and amortization	245	131
Gain on sale of securities	(4)
Equity unrealized change in market value	(21)	(12)
Net amortization of securities	(1,049)	(156)
Net amortization of deferred loan fees	251	48
Employee stock purchase plan	31	29
Stock compensation	196	8
Income from bank owned life insurance	(129)	(57)
Changes in operating assets and liabilities:
Accrued interest receivable	(385)	(287)
Other assets	4,820	(241)
Official checks, accrued interest, interest payable and other liabilities	(12,982)	(2,403)
Net cash used in operating activities	(9,708)	(2,706)
Cash flows from investing activities
Proceeds from maturities and paydowns of securities available for sale	3,768	1,370
Proceeds from paydowns of securities held to maturity	32	10
Purchase of securities available for sale	(46,615)	(10,309)
Sale of securities available for sale	1,759
Loans originations, net of principal repayments	(38,389)	(43,710)
Purchase of Federal Reserve Bank stock	(301)
Purchase of Federal Home Loan Bank Stock	(1,510)	(165)
Purchases of premises and equipment	(692)	(474)
Proceeds from acquisition	26,860
Net cash used in investing activities	(55,088)	(53,278)
Cash flows from financing activities
Net increase (decrease) in deposits	(17,698)	99,057
Proceeds from issuance of stock, net of issuance costs	59,807	55
Purchase of treasury stock	(2,106)	(173)
Proceeds from Federal Home Loan Bank advances	10,000	10,000
Repayments of Federal Home Loan advances	(20,000)	(10,000)
Repayment of line of credit	(9,999)
Net cash provided by financing activities	20,004	98,939
Increase in cash and cash equivalents	(44,792)	42,955
Cash and cash equivalents at beginning of year	198,950	86,883
Cash and cash equivalents at end of year	154,158	129,838
Supplemental cash flow information:
Cash paid during the year for interest		2,183
Cash refunded during the year for interest	2,712
Cash paid during the year for taxes		291
Supplemental noncash disclosures:
Other comprehensive gain (loss) – change in unrealized gain (loss) on securities available for sale, net of tax	242	200
Lease liabilities arising from obtaining right of use assets	1,620	$ 5,673
Total asset acquired	589,205
Total liabilities assumed	$ 539,403

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace 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 financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered smaller reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company’s management is in the process of evaluating and implementing changes to credit loss estimation models and related processes. Updates to business processes and the documentation of accounting policy decisions are ongoing. The Company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company’s consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 2 — EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding plus the effect of employee stock options during the year. Three Months Ended March 31, 2020 2019 Basic earnings per share: Net Income(loss) $ (1,317) $ 355 Total weighted average common stock outstanding 9,618 5,922 Net income(loss) per share $ (0.14) $ 0.06 Diluted earnings per share: Net Income $ (1,317) $ 355.00 Total weighted average common stock outstanding 9,618 5,922 Add: Dilutive effect of employee stock options — 195 Total weighted average diluted stock outstanding 9,618 6,117 Net income per share $ (0.14) $ 0.06 For the three months ended March 31, 2020, there were 560 stock options that were anti-dilutive and for the three months ended March 31, 2019, there were no stock options that were anti-dilutive.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
SECURITIES
SECURITIES	NOTE 3 — SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized March 31, 2020 Cost Gains Losses Fair Value Available-for-sale Small Business Administration loan pools $ 34,416 $ 26 $ (227) $ 34,215 Mortgage-backed securities 38,499 396 (52) 38,843 U.S. agency obligations 11,063 153 (11) 11,205 Community Development District bonds 9,350 38 (29) 9,359 Municipals 1,073 1 (6) 1,068 Corporate bonds 3,004 1 (65) 2,940 Total available-for-sale $ 97,405 $ 615 $ (390) $ 97,630 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 461 $ 19 $ — $ 480 US Treasury 200 4 — 204 Foreign Bonds 1,000 2 — 1,002 Total Held-to-Maturity $ 1,661 $ 25 $ — $ 1,686 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale Small Business Administration loan pools $ 17,303 $ 19 $ (139) $ 17,183 Mortgage-backed securities 5,237 — (52) 5,185 U.S. agency obligations 4,000 70 — 4,070 Corporate bonds 2,000 3 — 2,003 Total available-for-sale $ 28,540 $ 92 $ (191) $ 28,441 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 214 $ 10 $ — $ 224 Total Held-to-Maturity $ 214 $ 10 $ — $ 224 As of March 31, 2020, and December 31, 2019, Corporate bonds are comprised of investments in the financial services industry. During the three months ended March 31, 2020 the net investment portfolio increased by $70.7 million as a result of purchases and acquisitions. Proceeds from the sales and calls of securities during the three months ended March 31, 2020 were $7.7 million, with gross realized gains of $4 thousand. There were no sales and calls of securities during the three months ended March 31, 2019. The scheduled maturities of securities as of March 31, 2020 are as follows. The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers 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. March 31, 2020 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 3,523 $ 3,521 Due after one year through five years 18,972 19,079 Due after five years through ten years 1,995 1,972 Due after ten years — — Total $ 24,490 $ 24,572 SBA loan pools $ 34,416 $ 34,215 Mortgage-backed securities 38,499 38,843 Total $ 72,915 $ 73,058 Held-to-maturity Due after one year through five years $ 1,201 $ 1,206 Total $ 1,201 $ 1,206 Mortgage-backed securities $ 460 $ 480 Total $ 1,661 $ 1,686 At March 31, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The tables below indicate the fair value of debt securities with unrealized losses and for the period of time of which these losses were outstanding at March 31, 2020 and December 31, 2019, respectively, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 Available-for-sale Small Business Administration loan pools $ 23,213 $ (159) $ 4,451 $ (68) $ 27,664 $ (227) Mortgage-backed securities 6,939 (52) — — 6,939 (52) U.S. agency obligations 7,047 (11) — — 7,047 (11) Community Development District bonds 3,548 (29) — — 3,548 (29) Municipals 530 (6) — — 530 (6) Corporate bonds 2,940 (65) — — 2,940 (65) Total available-for-sale $ 44,217 $ (322) $ 4,451 $ (68) $ 48,668 $ (390) December 31, 2019 Available-for-sale SBA loan pools $ 9,984 $ (63) $ 4,035 $ (76) $ 14,019 $ (139) Mortgage-backed 1,914 (24) 2,541 (28) 4,455 (52) U.S. agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale $ 11,898 $ (87) $ 6,576 $ (104) $ 18,474 $ (191) The unrealized holding losses within the investment portfolio are considered to be temporary and are mainly due to changes in the interest rate cycle. The unrealized loss positions may fluctuate positively or negatively with changes in interest rates or spreads. Because the decline in fair value is attributable to changes in interest rates and not credit quality, since we do not have any securities in an OTTI position, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2020. No credit losses were recognized in operations during the three months ended March 31, 2020 or during 2019.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2020
LOANS
LOANS	NOTE 4 — LOANS Loans at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Commercial real estate $ 699,657 $ 270,981 Residential real estate 373,129 342,257 Commercial 197,659 129,477 Construction and development 66,915 41,465 Consumer and other loans 13,870 8,287 1,351,230 792,467 Less – Unearned loan origination fees (costs), net (771) (752) Allowance for loan losses (7,393) (6,548) $ 1,343,066 $ 785,167 The recorded investment in loans excludes accrued interest receivable due to immateriality. The bank had three loans totaling $1.6 million on nonaccrual as of March 31, 2020. One of the loans has a balance of $110 thousand and a specific fair value adjustment for the full amount. The bank had three loans totaling $2.3 million in nonaccrual as of December 31, 2019. There is one loan with a balance of $2.5 million at 90 days past due still accruing as of March 31, 2020 and no loans over 90 days past due and accruing as of December 31, 2019. The following table presents the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019 by class of loans: 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total March 31, 2020 Commercial real estate $ 889 $ 2,717 $ — $ — $ 3,606 $ 696,051 $ 699,657 Residential real estate 2,598 — 2,479 483 5,560 367,569 373,129 Commercial 1,235 — — 1,069 2,304 195,355 197,659 Construction and land development — — — — — 66,915 66,915 Consumer and other — — — — — 13,870 13,870 Total $ 4,722 $ 2,717 $ 2,479 $ 1,552 $ 11,470 $ 1,339,760 $ 1,351,230 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total December 31, 2019 Commercial real estate $ — $ 2,428 $ — $ — $ 2,428 $ 268,553 $ 270,981 Residential real estate 304 — — 483 787 341,470 342,257 Commercial — 134 — 1,797 1,931 127,546 129,477 Construction and land development — — — — — 41,465 41,465 Consumer and other — — — — — 8,287 8,287 Total $ 304 $ 2,562 $ — $ 2,280 $ 5,146 $ 787,321 $ 792,467 At March 31, 2020, there were six impaired loans with recorded investments totaling $4.4 million. One of these loans has a recorded investment of $110 thousand with a specific fair value adjustment of the same amount. There was another impaired loan with a recorded investment of $1.1 million with an allowance of $624 thousand. At December 31, 2019, there were three residential real estate and two commercial impaired loans (consisting of nonaccrual loans, troubled debt restructured loans, loans past due 90 days or more and still accruing interest and other loans based on management’ judgment) with recorded investments totaling $4.0 million with no allowance. There was one commercial loan impaired with a recorded investment of $1.1 million with a $626 thousand allowance. The average net investment on the impaired residential real estate and commercial loans during 2019 was $846 thousand. The residential real estate loans had $17 thousand interest income recognized which was equal to cash basis interest income. Troubled Debt Restructurings: The principal carrying balances of loans that met the criteria for consideration as troubled debt restructurings were $338 thousand and $367 thousand as of March 31, 2020 and December 31, 2019, respectively. The Company has allocated no specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2020 and December 31, 2019. The Company has not committed any additional amounts to customers whose loans are classified as a troubled debt restructuring. Credit Quality Indicators: The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Generally, all credits greater than $0.5 million are reviewed at least annually to monitor and adjust, if necessary, the credit risk profile. Loans classified as substandard or special mention are reviewed quarterly by the Corporation for further evaluation to determine if they are appropriately classified and whether there is any impairment. Beyond the annual review, all loans are graded upon initial issuance. In addition, during the renewal process of any loan, as well as if a loan becomes past due, the Corporation will determine the appropriate loan grade. Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of deterioration in the credit-worthiness of the borrower; or (c) the customer contacts the Corporation for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard, doubtful, or even charged-off. The Corporation uses the following definitions for risk ratings: Pass: A Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. The pass category includes the following: Riskless: Loans that are fully secured by liquid, properly margined collateral (listed stock, bonds, or other securities; savings accounts; certificates of deposit; loans or that portion thereof which are guaranteed by the U.S. Government or agencies backed by the “full faith and credit” thereof; loans secured by properly executed letters of credit from prime financial institutions). High Quality Risk: Loans to recognized national companies and well-seasoned companies that enjoy ready access to major capital markets or to a range of financing alternatives. Borrower’s public debt offerings are accorded highest ratings by recognized rating agencies, e.g., Moody’s or Standard & Poor’s. Companies display sound financial conditions and consistent superior income performance. The borrower’s trends and those of the industry to which it belongs are positive. Satisfactory Risk: Loans to borrowers, reasonably well established, that display satisfactory financial conditions, operating results and excellent future potential. Capacity to service debt is amply demonstrated. Current financial strength, while financially adequate, may be deficient in a number of respects. Normal comfort levels are achieved through a closely monitored collateral position and/or the strength of outside guarantors. Moderate Risk: Loans to borrowers who are in non-compliance with periodic reporting requirements of the loan agreement, and any other credit file documentation deficiencies, which do not otherwise affect the borrower’s credit risk profile. This may include borrowers who fail to supply updated financial information that supports the adequacy of the primary source of repayment to service the Bank’s debt and prevents bank management to evaluate the borrower’s current debt service capacity. Existing loans will include those with consistent track record of timely loan payments, no material adverse changes to underlying collateral, and no material adverse change to guarantor(s) financial capacity, evidenced by public record searches. Special mention: A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Corporation’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard: A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Doubtful: A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss: A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (Dollars in thousands) Pass Mention Substandard Doubtful Total March 31, 2020 Commercial real estate $ 695,111 $ 2,133 $ 2,413 $ — $ 699,657 Residential real estate 372,211 435 483 — 373,129 Commercial 196,182 408 1,069 — 197,659 Construction and land development 66,915 — — — 66,915 Consumer 13,870 — — — 13,870 Total $ 1,344,289 $ 2,976 $ 3,965 $ — $ 1,351,230 December 31, 2019 Commercial real estate $ 266,346 $ 2,207 $ 2,428 $ — $ 270,981 Residential real estate 341,819 438 — — 342,257 Commercial 126,851 829 1,797 — 129,477 Construction and land development 41,465 — — — 41,465 Consumer 8,287 — — — 8,287 Total $ 784,768 $ 3,474 $ 4,225 $ — $ 792,467 Purchased Credit Impaired Loans: The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows: (Dollars in thousands) March 31, 2020 Commercial real estate $ 714 Residential real estate — Commercial 783 Construction and development 2,549 Consumer and other loans — Carrying amount $ 4,046 Accretable yield, or income expected to be collected, is as follows: (Dollars in thousands) 2020 Balance at January 1 $ — New loans purchased (418) Accretion of income — Reclassifications from nonaccretable difference — Disposals — Balance at March 31 $ (418) For those purchased credit impaired loans disclosed above, no allowances for loan losses were reversed through the three months ended March 31, 2020. The credit fair value adjustment on purchased credit impairment (“PCI”) loans represents the portion of the loan balances that have been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan. PCI loans purchased during the first quarter of 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (Dollars in thousands) March 26, 2020 Contractually required principal and interest by loan type Commercial real estate $ 432 Residential real estate 618 Commercial 2,436 Construction and development 5,851 Consumer and other loans - Total $ 9,337 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 85 Residential real estate 153 Commercial 1,622 Construction and development 3,013 Consumer and other loans - Total $ 4,873 Expected cash flows $ 4,464 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC 310-30 $ 4,046

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2020
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES	NOTE 5 — ALLOWANCE FOR LOAN LOSSES The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method for the three month period ended March 31, 2020 and 2019: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 816 144 (272) 179 (22) 845 Loans charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 2,661 $ 3,259 $ 963 $ 451 $ 59 $ 7,393 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2019 Allowance for loan losses: Beginning balance $ 1,435 $ 1,822 $ 2,106 $ 262 $ 60 $ 5,685 Provision for loan losses (349) 722 (579) 82 11 (113) Loans charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 1,086 $ 2,544 $ 1,527 $ 344 $ 71 $ 5,572 Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 624 $ — $ — $ 624 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 2,661 3,259 339 451 59 6,769 Total ending allowance balance $ 2,661 $ 3,259 $ 963 $ 451 $ 59 $ 7,393 Loans: Loans individually evaluated for impairment $ 2,413 $ 483 $ 1,069 $ — $ — $ 3,965 Loans collectively evaluated for impairment 697,244 372,646 196,590 66,915 13,870 1,347,265 Total ending loans balance $ 699,657 $ 373,129 $ 197,659 $ 66,915 $ 13,870 $ 1,351,230 December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 626 $ — $ — $ 626 Collectively evaluated for impairment 1,845 3,115 609 272 81 5,922 Total ending allowance balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Loans: Loans individually evaluated for impairment $ 2,428 $ 483 $ 1,797 $ — $ — $ 4,708 Loans collectively evaluated for impairment 268,553 341,774 127,680 41,465 8,287 787,759 Total ending loans balance $ 270,981 $ 342,257 $ 129,477 $ 41,465 $ 8,287 $ 792,467

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2020
FAIR VALUE.
FAIR VALUE	NOTE 6 — 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. The Company used the following methods and significant assumptions to estimate fair value: Securities available for sale: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations, corporate bonds, municipal bonds and U.S. agency notes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 might include certain residual interests in securitizations and other less liquid securities. As of March 31, 2020 and December 31, 2019, all securities available for sale were Level 2. Equity securities: The Company values equity securities at readily determinable market value at the end of each period. Changes in fair value are recognized through net income. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis, are summarized below: Fair Value Measurements at March 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale Small Business Administration loan pools $ 34,215 $ — $ 34,215 $ — Mortgage-backed securities 38,843 — 38,843 — U.S. agency obligations 11,205 — 11,205 — Community Development District bonds 9,359 — 9,359 — Municipals 1,068 — 1,068 — Corporate bonds 2,940 — 2,940 — Total $ 97,630 $ — $ 97,630 $ — Equity Mutual funds $ 992 $ — $ 992 $ — Total $ 992 $ — $ 992 $ — Fair Value Measurements at December 31, 2019 Using: Significant Quoted Prices in Other significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2019 Value (Level 1) (Level 2) (Level 3) Available-for-sale SBA loans pools $ 17,183 $ — $ 17,183 $ — Mortgage backed securities 5,185 — 5,185 — U.S. agency obligations 4,070 — 4,070 — Corporate bonds 2,003 — 2,003 — Total $ 28,441 $ — $ 28,441 $ — Equity Mutual funds $ 971 $ — $ 971 $ — Total $ 971 $ — $ 971 $ — There were no securities reclassified into or out of Level 3 during the year through March 31, 2020 or the year ended December 31, 2019. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable March 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 445 — — 445 — Construction and land development — — — — — Consumer and other — — — — — Total $ 445 $ — $ — $ 445 $ — Fair Value Measurements at December 31, 2019 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 442 — — 442 (627) Construction and land development — — — — — Consumer and other — — — — — Total $ 442 $ — $ — $ 442 $ (627) As shown above our impaired loans consist solely of commercial loans considered to be Level 3. These Level 3 loans have significant unobservable inputs such as appraisal adjustments for local market conditions and economic factors that may result in changes in value of an assets over time. The table below presents the approximate carrying amount and estimated fair value of the Bank’s financial instruments (in thousands): March 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 123,625 $ 123,625 Level 1 Federal Funds Sold 30,533 30,533 Level 1 Securities, Available for Sale 97,405 97,630 Level 2 Securities, Held to Maturity 1,661 1,686 Level 2 Securities, Equity 992 992 Level 2 Loans, net 1,343,066 1,404,295 Level 3 Company Owned Life Insurance 16,987 16,987 Level 2 Accrued Interest Receivable 4,408 4,408 Level 1, 2 & 3 Financial Liabilities: Deposits 1,372,341 1,405,917 Level 2 Federal Home Loan Bank Advances 70,103 67,711 Level 2 Accrued Interest Payable 592 592 Level 2 December 31, 2019 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 171,980 $ 171,980 Level 1 Federal Funds Sold 26,970 26,970 Level 1 Securities, Available for Sale 28,441 28,441 Level 2 Securities, Held to Maturity 214 224 Level 2 Securities, Equity 971 971 Level 2 Loans, net 785,167 796,924 Level 3 Company Owned Life Insurance 16,858 16,858 Level 2 Accrued Interest Receivable 2,498 2,498 Level 1, 2 & 3 Financial Liabilities: Deposits 892,873 883,225 Level 2 Federal Home Loan Bank Advances 55,000 54,649 Level 2 Line of Credit 9,999 9,999 Level 1 Accrued Interest Payable 373 373 Level 2

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
LEASES
LEASES	NOTE 7 — LEASES ASC 842 establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company’s ROU assets are classified under premises and equipment on the Balance Sheet. The ROU liabilities are classified under other liabilities. The Company recorded $1.6 million during the three months ended March 31, 2020 and none during the three months ended December 31, 2019. The total amount of ROU was $7.8 and $6.4 million at March 31, 2020 and December 31, 2019, respectively. The Company leases certain properties and equipment under operating leases that resulted in the recognition of ROU Lease Assets of $5,673 and Lease Liabilities of $6,025 on the Company’s Condensed Consolidated Balance Sheets as of January 1, 2019. ASC 842 was effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company chose to use the adoption date of January 1, 2019 for ASC 842. As such, all periods presented after January 1, 2019 are under ASC 842 whereas periods presented prior to January 1, 2019 are in accordance with prior lease accounting of ASC 840. Financial information was not updated and the disclosures required under ASC 842 was not provided for dates and periods before January 1, 2019. ASC 842 provides a number of optional practical expedients in transition. The Company has elected the package of practical expedients, which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the use of the hindsight, a practical expedient which permits the use of information available after lease inception to determine the lease term via the knowledge of renewal options exercised not available as of the leases inception. The practical expedient pertaining to land easements is not applicable to the Company. ASC 842 also requires certain accounting elections for ongoing application of ASC 842. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. However, since these non-lease items are subject to change, they are treated and disclosed as variable payments in the quantitative disclosures below. Consequently, ASC 842’s changed guidance on contract components will not significantly affect our financial reporting. Similarly, ASC 842’s narrowed definition of initial direct costs will not significantly affect financial reporting. Lessee Leases The majority of the Company’s lessee leases are operating leases and consist of leased real estate for branches and operations centers. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Variable payments generally consist of common area maintenance and taxes. Rent escalations are generally specified by a payment schedule or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. ASC 842 requires the use of the lease interest rate; however, this rate is typically not known. As an alternative, ASC 842 permits the use of an entity’s fully secured incremental borrowing rate. The Company is electing to utilize the Federal Home Loan Bank (“FHLB”) Atlanta Fixed Rate Advance index, as it is the most actively used institution-specific collateralized borrowing source available to the Company. Lease cost for the three months ended March 31, 2020 consists of: Three-month period ended March 31, 2020 Operating Lease and Interest Cost $ 311 Variable Lease Cost 107 Total Lease Cost $ 418 The following table provides supplemental information related to leases for the three months ended March 31, 2020: Three-month period ended March 31, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 311 Operating Lease - Operating Cash Flows (Liability Reduction) $ 253 New ROU Assets - Operating Leases $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.90 Weighted Average Discount Rate - Operating Leases 2.82 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of March 31, 2020 is as follows: March 31, 2020 Operating lease payments due: Within one year $ 1,742 After one but within two years 1,749 After two but within three years 1,292 After three but within four years 1,181 After four years but within five years 963 After five years 1,824 Total undiscounted cash flows 8,751 Discount on cash flows (1,012) Total operating lease liabilities $ 7,739 Lessor Leases ASC 842 also impacted lessor accounting. Currently the Company does not have any lessor leases (formerly known as capital leases) to report on its financials.

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2020
BUSINESS COMBINATION
BUSINESS COMBINATION	NOTE 8 — BUSINESS COMBINATION Acquisition of Marquis Bancorp, Inc. On March 26, 2020, we closed our acquisition with Marquis Bancorp. (MBI) and its wholly owned subsidiary, Marquis Bank, headquartered in Coral Gables, Florida. On March 26, 2020, 100% of the MBI stock was converted into Professional Holding Corp. stock. Each share of MBI common stock issued and outstanding immediately prior to closing was converted into 1.2048 shares of Professional Holding Corp. Class A common stock, with cash paid in lieu of fractional shares. At the closing of the acquisition, the Company issued 4,227,816 shares of its Class A Common Stock. No MBI shareholders exercised appraisal rights. In addition, all stock options of MBI granted and outstanding on the closing date of the acquisition were converted into an option to purchase shares of our Class A Common Stock based on the exchange ratio. As of March 31, 2020, the combined institution had $1.7 billion in total assets, net loans of $1.3 billion and total deposits of $1.4 billion. MBI results of operations were included in the Company’s results beginning March 27, 2020. Acquisition-related costs of $1.7 million are included in non-interest expense in the Company’s income statement for the three months ended March 31, 2020. The fair value of the Class A common shares issued as part of the consideration paid for MBI was determined in the basis of the closing price of the Company’s common shares on the acquisition date. The acquisition of MBI was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations . Goodwill of $14.9 million arising from the acquisition consisted of operational efficiencies and potential cost savings through consolidating and integrating MBI’s operations into the Company’s existing operations. The fair values initially assigned to assets acquired and liabilities assumed are preliminary and could change for up to one year after the closing date of the acquisition of MBI as new information and circumstances relative to closing date fair values are known. Determining the fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, and goodwill, is a complicated process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. The following table summarizes the consideration paid for MBI and the estimated fair values of the assets acquired, and liabilities assumed at the date of the MBI acquisition, net of total consideration paid: Estimated Fair Value at (In thousands, except per share data) March 26, 2020 Number of MBI common shares outstanding 3,509,143 Per share exchange ratio 1.2048 Number of shares of common stock issued 4,227,816 Multiplied by common stock price per share on March 26, 2020 $ 15.21 Value of common stock issued 64,305 Cash paid in lieu of fractional shares 1 Fair value of MBI stock options converted to PFHD options 393 Fair value of total consideration transferred $ 64,699 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 26,860 Securities, Available for Sale 26,811 Securities, Held to Maturity 1,458 Loans 520,606 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 3,964 Other assets 7,157 Total asset Acquired 589,205 Deposits 497,166 Federal Home Loan Bank advances 25,103 Subordinated notes payable 9,920 Accrued interest payable 610 Other Liabilities 6,604 Total liabilities assumed 539,403 Total identifiable net assets 49,802 Goodwill $ 14,897 Acquired loans are initially recorded at their acquisition-date fair values using Level 3 inputs. Refer to Note 6, Fair Value, for a discussion of the fair value hierarchy. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected lifetime losses, environmental factors, discount rates, expected payments and expected prepayments. Specifically, the Company has prepared three separate loan fair value adjustments that it believes a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three separate fair valuation methodologies employed are: (i) an interest rate loan fair value adjustment, (ii) a general credit fair value adjustment, and (iii) a specific credit fair value adjustment for purchased credit impaired (“PCI”) loans subject to ASC 310-30 provisions. The acquired loans were recorded at fair value at the acquisition date without carryover of MBI’s previously established allowance for loan losses. The fair value of the financial assets acquired included loans receivable with a book balance, prior to fair value adjustments, of $539.9 million. The table below illustrates the fair value adjustments made to the amortized cost basis to present the fair value of the loans acquired. March 26, 2020 Gross principal balance $ 539,855 Interest rate fair value adjustment on performing loans 3,109 Credit fair value adjustment on performing loans (18,312) Fair value adjustment on PCI loans (4,046) Fair value of acquired loans $ 520,606 The credit fair value adjustment on PCI loans represents the portion of the loan balances that have been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan. March 26, 2020 Contractually required principal and interest at acquisition $ 9,337 Contractual cash flows not expected to be collected (nonaccretable discount, includes principal and interest) (4,873) Expected cash flows at acquisition 4,464 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC-310-30 $ 4,046 For loans acquired without evidence of credit deterioration, the Company prepared interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various internal and external data sources and reviewed for reasonableness. A present value approach was utilized to calculate the interest rate fair value premium of $3.1 million. Additionally, for loans acquired without credit deterioration, a credit fair value adjustment was calculated using a two-part credit fair value analysis: (i) expected lifetime credit migration losses, and (ii) estimated fair value adjustment for certain qualitative factors. A credit fair value discount of $18.2 million was determined. Both the interest rate and credit fair value adjustments related to loans acquired without evidence of credit deterioration will be recognized as interest income over the expected life of the loans. For PCI loans, acquired with evidence of credit deterioration, the Company prepared a specific credit risk fair value adjustment in accordance with ASC 310-30. The fair value adjustment of $5.3 million represents the present value of expected cash flows at market participant discount rates in accordance with ASC 310-30. This fair value adjustment was segregated into 2 pieces: (i) non-accretable discount which represents the portion of the loan balances that has been deemed uncollectible of $4.9 million, and (ii) accretable discount of $0.4 million which would represent an adjustment for the expected future cash flows discounted at a market participant discount rate. The accretable discount will be recognized on a level yield basis. The fair value of the core deposit intangible was determined based on a discounted cash flow method using a discount rate commensurate with market participants. To calculate cash flows, the sum of deposit account servicing costs (net of deposit fee income) and interest expense on deposits was compared to the cost of alternative funding sources available to the Company. The expected cash flows of the deposit base included estimated attrition rates. The core deposit intangible asset was valued at $4.0 million and will be amortized over ten years using the sum-of-the years digit method. The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $1.8 million is being amortized into income on a level yield amortization method over the contractual life of the deposits. The fair value adjustment of FHLB advances was determined based upon an estimated fair value received from the FHLB Atlanta. The FHLB advances was valued at $0.1 million and will amortized over the remaining life of the Advances. The fair value of subordinated debt was determined by using a discounted cash flow method using a market participant discount rate for similar instruments. The subordinated debt was fair valued at a discount of $80 thousand and will be amortized over the expected life of the debt. In connection with the acquisition of MBI, the Company recorded a net deferred income tax asset of $3.4 million related to MBI’s effects of fair value adjustments resulting from applying the purchase method of accounting. The following table presents supplemental pro-forma information as if the acquisition had occurred at the beginning of 2019. The pro-forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on January 1, 2019. Three Months Ended (In thousands, except per share data) March 31, 2019 Net interest income $ 8,257 Net income 1,520 EPS - basic $ 0.26 EPS - diluted $ 0.25

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 9 — SUBSEQUENT EVENTS The outbreak of the novel coronavirus COVID‑19, which was declared a pandemic by the World Health Organization on March 11, 2020, has led to adverse impacts on the global economy and created uncertainty in world financial markets. In response to the coronavirus COVID‑19 we have: · Participated in the SBA Paycheck Protection Program. As of April 30, 2020, we have processed, closed and funded over 1,300 loans representing over $215 million in relief proceeds. These loans as of April 30, 2020 have been pledged to the Federal Reserve as part of the Paycheck Protection Program Liquidity Facility (PPPLF). The PPPLF pledged loans are non-recourse to the Bank. · As of April 30, 2020, we have reviewed and processed 125 debt service relief requests in accordance with Interagency guidelines published on March 13, 2020. As currently interpreted by the agencies, the guidelines assert that short-term modifications made on good faith for reasons related to the COVID-19 pandemic to borrowers who were current prior to such relief are not considered TDRs. These modifications include deferrals of principal and interest, modification to interest only, and deferrals to escrow requirements. The modifications have varying terms up to six months. Of the 125 loans that were reviewed and processed 96 were payment deferments. At April 30, 2020, residential loans represented 63 of the processed requests with balances totaling $45.8 million. At April 30, 2020, debt service relief approvals represented approximately 11% of the total loan portfolio. · To manage credit risk, the Company increased oversight and analysis of $15.4 million of loans to borrowers in vulnerable industries such as hotels and hospitality. To date, these loans continue to perform according to their terms The economic effects of the coronavirus COVID‑19 pandemic have significantly impacted business and economic activity in the U.S. and around the world. There have been full and partial business closures, increases in unemployment as worker are furloughed, laid off, or had hours limited. This high level of uncertainty around COVID-19 could potentially negatively impact our borrowers. As such, it is possible that our ALLL and other estimates could change in future quarters. Given the fluidity of the situation, management cannot predict the impact of novel coronavirus COVID‑19 for the remainder of 2020 or beyond.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Adoption of new accounting pronouncements	New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace 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 financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered smaller reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company’s management is in the process of evaluating and implementing changes to credit loss estimation models and related processes. Updates to business processes and the documentation of accounting policy decisions are ongoing. The Company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company’s consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
EARNINGS PER SHARE
Schedule of Basic and Diluted Earnings per share	Three Months Ended March 31, 2020 2019 Basic earnings per share: Net Income(loss) $ (1,317) $ 355 Total weighted average common stock outstanding 9,618 5,922 Net income(loss) per share $ (0.14) $ 0.06 Diluted earnings per share: Net Income $ (1,317) $ 355.00 Total weighted average common stock outstanding 9,618 5,922 Add: Dilutive effect of employee stock options — 195 Total weighted average diluted stock outstanding 9,618 6,117 Net income per share $ (0.14) $ 0.06

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
SECURITIES
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity	Gross Gross Amortized Unrealized Unrealized March 31, 2020 Cost Gains Losses Fair Value Available-for-sale Small Business Administration loan pools $ 34,416 $ 26 $ (227) $ 34,215 Mortgage-backed securities 38,499 396 (52) 38,843 U.S. agency obligations 11,063 153 (11) 11,205 Community Development District bonds 9,350 38 (29) 9,359 Municipals 1,073 1 (6) 1,068 Corporate bonds 3,004 1 (65) 2,940 Total available-for-sale $ 97,405 $ 615 $ (390) $ 97,630 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 461 $ 19 $ — $ 480 US Treasury 200 4 — 204 Foreign Bonds 1,000 2 — 1,002 Total Held-to-Maturity $ 1,661 $ 25 $ — $ 1,686 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale Small Business Administration loan pools $ 17,303 $ 19 $ (139) $ 17,183 Mortgage-backed securities 5,237 — (52) 5,185 U.S. agency obligations 4,000 70 — 4,070 Corporate bonds 2,000 3 — 2,003 Total available-for-sale $ 28,540 $ 92 $ (191) $ 28,441 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 214 $ 10 $ — $ 224 Total Held-to-Maturity $ 214 $ 10 $ — $ 224
Scheduled maturities of securities	March 31, 2020 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 3,523 $ 3,521 Due after one year through five years 18,972 19,079 Due after five years through ten years 1,995 1,972 Due after ten years — — Total $ 24,490 $ 24,572 SBA loan pools $ 34,416 $ 34,215 Mortgage-backed securities 38,499 38,843 Total $ 72,915 $ 73,058 Held-to-maturity Due after one year through five years $ 1,201 $ 1,206 Total $ 1,201 $ 1,206 Mortgage-backed securities $ 460 $ 480 Total $ 1,661 $ 1,686
Summary of securities with unrealized losses by major security type and length of time in a continuous unrealized loss position	Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 Available-for-sale Small Business Administration loan pools $ 23,213 $ (159) $ 4,451 $ (68) $ 27,664 $ (227) Mortgage-backed securities 6,939 (52) — — 6,939 (52) U.S. agency obligations 7,047 (11) — — 7,047 (11) Community Development District bonds 3,548 (29) — — 3,548 (29) Municipals 530 (6) — — 530 (6) Corporate bonds 2,940 (65) — — 2,940 (65) Total available-for-sale $ 44,217 $ (322) $ 4,451 $ (68) $ 48,668 $ (390) December 31, 2019 Available-for-sale SBA loan pools $ 9,984 $ (63) $ 4,035 $ (76) $ 14,019 $ (139) Mortgage-backed 1,914 (24) 2,541 (28) 4,455 (52) U.S. agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale $ 11,898 $ (87) $ 6,576 $ (104) $ 18,474 $ (191)

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2020
LOANS
Summary of loans	Loans at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Commercial real estate $ 699,657 $ 270,981 Residential real estate 373,129 342,257 Commercial 197,659 129,477 Construction and development 66,915 41,465 Consumer and other loans 13,870 8,287 1,351,230 792,467 Less – Unearned loan origination fees (costs), net (771) (752) Allowance for loan losses (7,393) (6,548) $ 1,343,066 $ 785,167
Schedule of aging of the recorded investment in past due loans	The following table presents the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019 by class of loans: 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total March 31, 2020 Commercial real estate $ 889 $ 2,717 $ — $ — $ 3,606 $ 696,051 $ 699,657 Residential real estate 2,598 — 2,479 483 5,560 367,569 373,129 Commercial 1,235 — — 1,069 2,304 195,355 197,659 Construction and land development — — — — — 66,915 66,915 Consumer and other — — — — — 13,870 13,870 Total $ 4,722 $ 2,717 $ 2,479 $ 1,552 $ 11,470 $ 1,339,760 $ 1,351,230 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total December 31, 2019 Commercial real estate $ — $ 2,428 $ — $ — $ 2,428 $ 268,553 $ 270,981 Residential real estate 304 — — 483 787 341,470 342,257 Commercial — 134 — 1,797 1,931 127,546 129,477 Construction and land development — — — — — 41,465 41,465 Consumer and other — — — — — 8,287 8,287 Total $ 304 $ 2,562 $ — $ 2,280 $ 5,146 $ 787,321 $ 792,467
Summary of analysis performed, the risk category of loans by class of loans	Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (Dollars in thousands) Pass Mention Substandard Doubtful Total March 31, 2020 Commercial real estate $ 695,111 $ 2,133 $ 2,413 $ — $ 699,657 Residential real estate 372,211 435 483 — 373,129 Commercial 196,182 408 1,069 — 197,659 Construction and land development 66,915 — — — 66,915 Consumer 13,870 — — — 13,870 Total $ 1,344,289 $ 2,976 $ 3,965 $ — $ 1,351,230 December 31, 2019 Commercial real estate $ 266,346 $ 2,207 $ 2,428 $ — $ 270,981 Residential real estate 341,819 438 — — 342,257 Commercial 126,851 829 1,797 — 129,477 Construction and land development 41,465 — — — 41,465 Consumer 8,287 — — — 8,287 Total $ 784,768 $ 3,474 $ 4,225 $ — $ 792,467

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
ALLOWANCE FOR LOAN LOSSES
Schedule of allowance for loan losses by portfolio segment	The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method for the three month period ended March 31, 2020 and 2019: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 816 144 (272) 179 (22) 845 Loans charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 2,661 $ 3,259 $ 963 $ 451 $ 59 $ 7,393 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2019 Allowance for loan losses: Beginning balance $ 1,435 $ 1,822 $ 2,106 $ 262 $ 60 $ 5,685 Provision for loan losses (349) 722 (579) 82 11 (113) Loans charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 1,086 $ 2,544 $ 1,527 $ 344 $ 71 $ 5,572
Summary of loans by portfolio segment and impairment method	Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 624 $ — $ — $ 624 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 2,661 3,259 339 451 59 6,769 Total ending allowance balance $ 2,661 $ 3,259 $ 963 $ 451 $ 59 $ 7,393 Loans: Loans individually evaluated for impairment $ 2,413 $ 483 $ 1,069 $ — $ — $ 3,965 Loans collectively evaluated for impairment 697,244 372,646 196,590 66,915 13,870 1,347,265 Total ending loans balance $ 699,657 $ 373,129 $ 197,659 $ 66,915 $ 13,870 $ 1,351,230 December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 626 $ — $ — $ 626 Collectively evaluated for impairment 1,845 3,115 609 272 81 5,922 Total ending allowance balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Loans: Loans individually evaluated for impairment $ 2,428 $ 483 $ 1,797 $ — $ — $ 4,708 Loans collectively evaluated for impairment 268,553 341,774 127,680 41,465 8,287 787,759 Total ending loans balance $ 270,981 $ 342,257 $ 129,477 $ 41,465 $ 8,287 $ 792,467

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2020
FAIR VALUE.
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Fair Value Measurements at March 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale Small Business Administration loan pools $ 34,215 $ — $ 34,215 $ — Mortgage-backed securities 38,843 — 38,843 — U.S. agency obligations 11,205 — 11,205 — Community Development District bonds 9,359 — 9,359 — Municipals 1,068 — 1,068 — Corporate bonds 2,940 — 2,940 — Total $ 97,630 $ — $ 97,630 $ — Equity Mutual funds $ 992 $ — $ 992 $ — Total $ 992 $ — $ 992 $ — Fair Value Measurements at December 31, 2019 Using: Significant Quoted Prices in Other significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2019 Value (Level 1) (Level 2) (Level 3) Available-for-sale SBA loans pools $ 17,183 $ — $ 17,183 $ — Mortgage backed securities 5,185 — 5,185 — U.S. agency obligations 4,070 — 4,070 — Corporate bonds 2,003 — 2,003 — Total $ 28,441 $ — $ 28,441 $ — Equity Mutual funds $ 971 $ — $ 971 $ — Total $ 971 $ — $ 971 $ —
Schedule of Assets Measured at Fair Value on a Non-recurring Basis	Fair Value Measurements at March 31, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable March 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 445 — — 445 — Construction and land development — — — — — Consumer and other — — — — — Total $ 445 $ — $ — $ 445 $ — Fair Value Measurements at December 31, 2019 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 442 — — 442 (627) Construction and land development — — — — — Consumer and other — — — — — Total $ 442 $ — $ — $ 442 $ (627)
Schedule of carrying amount and estimated fair value of the Bank’s financial instruments	March 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 123,625 $ 123,625 Level 1 Federal Funds Sold 30,533 30,533 Level 1 Securities, Available for Sale 97,405 97,630 Level 2 Securities, Held to Maturity 1,661 1,686 Level 2 Securities, Equity 992 992 Level 2 Loans, net 1,343,066 1,404,295 Level 3 Company Owned Life Insurance 16,987 16,987 Level 2 Accrued Interest Receivable 4,408 4,408 Level 1, 2 & 3 Financial Liabilities: Deposits 1,372,341 1,405,917 Level 2 Federal Home Loan Bank Advances 70,103 67,711 Level 2 Accrued Interest Payable 592 592 Level 2 December 31, 2019 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 171,980 $ 171,980 Level 1 Federal Funds Sold 26,970 26,970 Level 1 Securities, Available for Sale 28,441 28,441 Level 2 Securities, Held to Maturity 214 224 Level 2 Securities, Equity 971 971 Level 2 Loans, net 785,167 796,924 Level 3 Company Owned Life Insurance 16,858 16,858 Level 2 Accrued Interest Receivable 2,498 2,498 Level 1, 2 & 3 Financial Liabilities: Deposits 892,873 883,225 Level 2 Federal Home Loan Bank Advances 55,000 54,649 Level 2 Line of Credit 9,999 9,999 Level 1 Accrued Interest Payable 373 373 Level 2

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
LEASES
Schedule of lease cost	Three-month period ended March 31, 2020 Operating Lease and Interest Cost $ 311 Variable Lease Cost 107 Total Lease Cost $ 418
Schedule of supplemental information related to leases	Three-month period ended March 31, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 311 Operating Lease - Operating Cash Flows (Liability Reduction) $ 253 New ROU Assets - Operating Leases $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.90 Weighted Average Discount Rate - Operating Leases 2.82 %
Schedule of maturity analysis of operating lease liabilities	March 31, 2020 Operating lease payments due: Within one year $ 1,742 After one but within two years 1,749 After two but within three years 1,292 After three but within four years 1,181 After four years but within five years 963 After five years 1,824 Total undiscounted cash flows 8,751 Discount on cash flows (1,012) Total operating lease liabilities $ 7,739

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
	Mar. 31, 2020
BUSINESS COMBINATION
Schedule of MBI and the estimated fair values of the assets acquired	Estimated Fair Value at (In thousands, except per share data) March 26, 2020 Number of MBI common shares outstanding 3,509,143 Per share exchange ratio 1.2048 Number of shares of common stock issued 4,227,816 Multiplied by common stock price per share on March 26, 2020 $ 15.21 Value of common stock issued 64,305 Cash paid in lieu of fractional shares 1 Fair value of MBI stock options converted to PFHD options 393 Fair value of total consideration transferred $ 64,699 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 26,860 Securities, Available for Sale 26,811 Securities, Held to Maturity 1,458 Loans 520,606 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 3,964 Other assets 7,157 Total asset Acquired 589,205 Deposits 497,166 Federal Home Loan Bank advances 25,103 Subordinated notes payable 9,920 Accrued interest payable 610 Other Liabilities 6,604 Total liabilities assumed 539,403 Total identifiable net assets 49,802 Goodwill $ 14,897
Schedule of fair value adjustments	March 26, 2020 Gross principal balance $ 539,855 Interest rate fair value adjustment on performing loans 3,109 Credit fair value adjustment on performing loans (18,312) Fair value adjustment on PCI loans (4,046) Fair value of acquired loans $ 520,606
Schedule of credit fair value adjustments on PCI loans	March 26, 2020 Contractually required principal and interest at acquisition $ 9,337 Contractual cash flows not expected to be collected (nonaccretable discount, includes principal and interest) (4,873) Expected cash flows at acquisition 4,464 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC-310-30 $ 4,046
Schedule of pro-forma information	Three Months Ended (In thousands, except per share data) March 31, 2019 Net interest income $ 8,257 Net income 1,520 EPS - basic $ 0.26 EPS - diluted $ 0.25

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2019
RECENTLY ISSUED ACCOUNTING STANDARDS, NOT ADOPTED AT DECEMBER 31, 2018
Right-of-use assets		$ 5,673
Lease liabilities	$ 7,739	$ 6,025

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic earnings per share:
Net Income(loss)	$ (1,317)	$ 355
Total weighted average common stock outstanding	9,618	5,922
Net income(loss) per share	$ (0.14)	$ 0.06
Diluted earnings per share:
Net income (loss)	$ (1,317)	$ 355
Total weighted average common stock outstanding	9,618	5,922
Add: Dilutive effect of employee stock options		195
Total weighted average diluted stock outstanding	9,618	6,117
Net income per share	$ (0.14)	$ 0.06
Anti-dilutive Stock Options	560
Stock options
Diluted earnings per share:
Anti-dilutive Stock Options	0	0

SECURITIES - Unrealized Gains A

SECURITIES - Unrealized Gains And Losses - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale
Amortized Cost, AFS, Total	$ 97,405	$ 28,540
Gross Unrealized Gains, AFS	615	92
Gross Unrealized Losses, AFS	(390)	(191)
Fair Value, AFS	97,630	28,441
Held-to-Maturity
Amortized Cost, HTM	1,661	214
Gross Unrealized Gains, HTM	25	10
Fair Value, HTM	1,686	224
Increase Decrease in Debt Securities Available for Sale, Purchases and Acquisitions	70,700
Proceeds from the sales and calls of securities	7,700
Gross realized gains	4
Small Business Administration loan pools
Available-for-sale
Amortized Cost, AFS, Total	34,416	17,303
Gross Unrealized Gains, AFS	26	19
Gross Unrealized Losses, AFS	(227)	(139)
Fair Value, AFS	34,215	17,183
Mortgage backed securities
Available-for-sale
Amortized Cost, AFS, Total	38,499	5,237
Gross Unrealized Gains, AFS	396
Gross Unrealized Losses, AFS	(52)	(52)
Fair Value, AFS	38,843	5,185
Held-to-Maturity
Amortized Cost, HTM	461	214
Gross Unrealized Gains, HTM	19	10
Fair Value, HTM	480	224
U.S. agency obligations
Available-for-sale
Amortized Cost, AFS, Total	11,063	4,000
Gross Unrealized Gains, AFS	153	70
Gross Unrealized Losses, AFS	(11)
Fair Value, AFS	11,205	4,070
Community Development District bonds
Available-for-sale
Amortized Cost, AFS, Total	9,350
Gross Unrealized Gains, AFS	38
Gross Unrealized Losses, AFS	(29)
Fair Value, AFS	9,359
Municipals
Available-for-sale
Amortized Cost, AFS, Total	1,073
Gross Unrealized Gains, AFS	1
Gross Unrealized Losses, AFS	(6)
Fair Value, AFS	1,068
US Treasury
Held-to-Maturity
Amortized Cost, HTM	200
Gross Unrealized Gains, HTM	4
Fair Value, HTM	204
Foreign Bonds
Held-to-Maturity
Amortized Cost, HTM	1,000
Gross Unrealized Gains, HTM	2
Fair Value, HTM	1,002
Corporate bonds
Available-for-sale
Amortized Cost, AFS, Total	3,004	2,000
Gross Unrealized Gains, AFS	1	3
Gross Unrealized Losses, AFS	(65)
Fair Value, AFS	$ 2,940	$ 2,003

SECURITIES - Maturities Of Secu

SECURITIES - Maturities Of Securities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Amortized cost and fair value of AFS debt securities by contractual maturity
Due in one year or less	$ 3,523
Due after one year through five years	18,972
Due after five years through ten years	1,995
Amortized Cost, AFS	24,490
Amortized cost and fair value of HTM debt securities by contractual maturity
Due in one year or less	3,521
Due after one year through five years	19,079
Due after five years through ten years	1,972
Fair Value, AFS	24,572
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	1,201
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value	1,201
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	1,206
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost	1,206
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Amortized Cost	1,661
Amortized Cost, HTM	1,206
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Fair Value	1,686
Fair Value, HTM	$ 1,201
Percentage of holding of securities of shareholder's equity	10.00%
Small Business Administration loan pools
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value	$ 34,215
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost	34,416
Amortized Cost, HTM	34,416
Fair Value, HTM	34,215
Mortgage backed securities
Amortized cost and fair value of AFS debt securities by contractual maturity
Amortized Cost, AFS	72,915
Amortized cost and fair value of HTM debt securities by contractual maturity
Fair Value, AFS	73,058
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value	38,843
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost	38,499
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Amortized Cost	460
Amortized Cost, HTM	38,499
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Fair Value	480
Fair Value, HTM	$ 38,843

SECURITIES - Unrealized Losses

SECURITIES - Unrealized Losses By Security Type And Time (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	$ 44,217	$ 11,898
12 Months or Longer, Fair Value	4,451	6,576
Total Fair Value	48,668	18,474
Credit losses recognized	0	0
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(322)	(87)
12 Months or Longer, Unrealized Losses	(68)	(104)
Total Unrealized Losses	(390)	(191)
Small Business Administration loan pools
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	23,213	9,984
12 Months or Longer, Fair Value	4,451	4,035
Total Fair Value	27,664	14,019
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(159)	(63)
12 Months or Longer, Unrealized Losses	(68)	(76)
Total Unrealized Losses	(227)	(139)
Mortgage backed securities
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	6,939	1,914
12 Months or Longer, Fair Value		2,541
Total Fair Value	6,939	4,455
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(52)	(24)
12 Months or Longer, Unrealized Losses		(28)
Total Unrealized Losses	(52)	$ (52)
U.S. agency obligations
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	7,047
Total Fair Value	7,047
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(11)
Total Unrealized Losses	(11)
Community Development District bonds
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	3,548
Total Fair Value	3,548
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(29)
Total Unrealized Losses	(29)
Municipals
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	530
Total Fair Value	530
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(6)
Total Unrealized Losses	(6)
Corporate bonds
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	2,940
Total Fair Value	2,940
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Less Than 12 Months, Unrealized Losses	(65)
Total Unrealized Losses	$ (65)

LOANS - Major Classifications o

LOANS - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total		$ 1,351,230	$ 792,467
Unearned loan origination fees (costs), net		(771)	(752)
Allowance for loan losses		(7,393)	(6,548)	$ (5,572)	$ (5,685)
Loans, net		1,343,066	785,167
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total		699,657	270,981
Allowance for loan losses		(2,661)	(1,845)	(1,086)	(1,435)
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 45,800	373,129	342,257
Allowance for loan losses		(3,259)	(3,115)	(2,544)	(1,822)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total		197,659	129,477
Allowance for loan losses		(963)	(1,235)	(1,527)	(2,106)
Construction and development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total		66,915	41,465
Allowance for loan losses		(451)	(272)	(344)	(262)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total		13,870	8,287
Allowance for loan losses		$ (59)	$ (81)	$ (71)	$ (60)

LOANS - Past Due Loans (Details

LOANS - Past Due Loans (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Non accrual		$ 1,552	$ 2,280
Total Past Due		11,470	5,146
Loans Not Past Due		1,339,760	787,321
Total		1,351,230	792,467
30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		4,722	304
60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		2,717	2,562
Greater than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		2,479
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total Past Due		3,606	2,428
Loans Not Past Due		696,051	268,553
Total		699,657	270,981
Commercial real estate | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		889
Commercial real estate | 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		2,717	2,428
Residential real estate
Financing Receivable, Past Due [Line Items]
Non accrual		483	483
Total Past Due		5,560	787
Loans Not Past Due		367,569	341,470
Total	$ 45,800	373,129	342,257
Residential real estate | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		2,598	304
Residential real estate | Greater than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		2,479
Commercial
Financing Receivable, Past Due [Line Items]
Non accrual		1,069	1,797
Total Past Due		2,304	1,931
Loans Not Past Due		195,355	127,546
Total		197,659	129,477
Commercial | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		1,235
Commercial | 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due			134
Construction and development
Financing Receivable, Past Due [Line Items]
Loans Not Past Due		66,915	41,465
Total		66,915	41,465
Consumer
Financing Receivable, Past Due [Line Items]
Loans Not Past Due		13,870	8,287
Total		$ 13,870	$ 8,287

LOANS - Risk Category (Details)

LOANS - Risk Category (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total		$ 1,351,230	$ 792,467
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		1,344,289	784,768
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		2,976	3,474
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total		3,965	4,225
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total		699,657	270,981
Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		695,111	266,346
Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		2,133	2,207
Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total		2,413	2,428
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 45,800	373,129	342,257
Residential real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		372,211	341,819
Residential real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		435	438
Residential real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total		483
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Total		197,659	129,477
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		196,182	126,851
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		408	829
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total		1,069	1,797
Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Total		66,915	41,465
Construction and development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		66,915	41,465
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total		13,870	8,287
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		$ 13,870	$ 8,287

LOANS - Narratives (Details)

LOANS - Narratives (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Financing Receivable, Impaired [Line Items]
Number of loans individually evaluated for impairment with an allowance recorded | loan	6
Number of loans on nonaccrual | loan	3	3
Non accrual	$ 1,552	$ 2,280
Fair value adjustment	$ 110
Number of loans past due over 90 days | loan	1	0
Loan balance 90 days past due	$ 2,500
Financing Receivable, Past Due	11,470	$ 5,146
Recorded investment with no allowance	4,400	4,000
Recorded investment with a specific fair value adjustment	110
Recorded investment with allowance	1,100
Allowance	624
Average net investment		846
Interest income recognized		17
Loans that met the criteria for consideration as a troubled debt restructuring	338	367
Specific reserve	0	0
Threshold credit value for annual review	500
Greater than 89 Days Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Past Due	2,479
Residential real estate
Financing Receivable, Impaired [Line Items]
Non accrual	483	483
Financing Receivable, Past Due	5,560	$ 787
Number of impaired loans | loan		3
Residential real estate | Greater than 89 Days Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Past Due	2,479
Commercial
Financing Receivable, Impaired [Line Items]
Number of loans individually evaluated for impairment with an allowance recorded | loan		1
Non accrual	1,069	$ 1,797
Financing Receivable, Past Due	$ 2,304	$ 1,931
Number of impaired loans | loan		2
Recorded investment with allowance		$ 1,100
Allowance		$ 626

LOANS - Carrying Amount PCI Loa

LOANS - Carrying Amount PCI Loans and Accretable Yield (Details) - PCI loans $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 4,046
Allowance for loan losses reversed	0
Accretable yield or income expected to be collected
New loans purchased	(418)
Balance	(418)
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	714
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	783
Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 2,549

LOANS - PCI Loans Deemed Uncoll

LOANS - PCI Loans Deemed Uncollectable (Details) - PCI loans - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 26, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Interest component of expected cash flows (accretable discount)	$ (418)
Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		$ 9,337
Contractual cash flows not expected to be collected (nonaccretable discount)		4,873
Expected cash flows		4,464
Interest component of expected cash flows (accretable discount)		(418)
Fair value of PCI loans accounted for under ASC 310-30		4,046
Commercial real estate | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		432
Contractual cash flows not expected to be collected (nonaccretable discount)		85
Residential real estate | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		618
Contractual cash flows not expected to be collected (nonaccretable discount)		153
Commercial | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		2,436
Contractual cash flows not expected to be collected (nonaccretable discount)		1,622
Construction and development | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		5,851
Contractual cash flows not expected to be collected (nonaccretable discount)		$ 3,013

LOANS - Income Unrecognized on

LOANS - Income Unrecognized on PCI loans (Details) $ in Thousands	Mar. 31, 2020USD ($)
PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans	$ 4,046

ALLOWANCE FOR LOAN LOSSES - Bal

ALLOWANCE FOR LOAN LOSSES - Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for loan losses
Beginning balance	$ 6,548	$ 5,685
Provision for loan losses	845	(113)
Total ending allowance balance	7,393	5,572
Commercial real estate
Allowance for loan losses
Beginning balance	1,845	1,435
Provision for loan losses	816	(349)
Total ending allowance balance	2,661	1,086
Residential real estate
Allowance for loan losses
Beginning balance	3,115	1,822
Provision for loan losses	144	722
Total ending allowance balance	3,259	2,544
Commercial
Allowance for loan losses
Beginning balance	1,235	2,106
Provision for loan losses	(272)	(579)
Total ending allowance balance	963	1,527
Construction and development
Allowance for loan losses
Beginning balance	272	262
Provision for loan losses	179	82
Total ending allowance balance	451	344
Consumer
Allowance for loan losses
Beginning balance	81	60
Provision for loan losses	(22)	11
Total ending allowance balance	$ 59	$ 71

ALLOWANCE FOR LOAN LOSSES - All

ALLOWANCE FOR LOAN LOSSES - Allowance for Loans Losses and Loans (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses
Ending balance – individually evaluated for impairment		$ 624	$ 626
Ending balance– collectively evaluated for impairment		6,769	5,922
Total ending allowance balance		7,393	6,548	$ 5,572	$ 5,685
Loans individually evaluated for impairment		3,965	4,708
Loans collectively evaluated for impairment		1,347,265	787,759
Total		1,351,230	792,467
Commercial real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment		2,661	1,845
Total ending allowance balance		2,661	1,845	1,086	1,435
Loans individually evaluated for impairment		2,413	2,428
Loans collectively evaluated for impairment		697,244	268,553
Total		699,657	270,981
Residential real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment		3,259	3,115
Total ending allowance balance		3,259	3,115	2,544	1,822
Loans individually evaluated for impairment		483	483
Loans collectively evaluated for impairment		372,646	341,774
Total	$ 45,800	373,129	342,257
Commercial
Allowance for loan losses
Ending balance – individually evaluated for impairment		624	626
Ending balance– collectively evaluated for impairment		339	609
Total ending allowance balance		963	1,235	1,527	2,106
Loans individually evaluated for impairment		1,069	1,797
Loans collectively evaluated for impairment		196,590	127,680
Total		197,659	129,477
Construction and development
Allowance for loan losses
Ending balance– collectively evaluated for impairment		451	272
Total ending allowance balance		451	272	344	262
Loans collectively evaluated for impairment		66,915	41,465
Total		66,915	41,465
Consumer
Allowance for loan losses
Ending balance– collectively evaluated for impairment		59	81
Total ending allowance balance		59	81	$ 71	$ 60
Loans collectively evaluated for impairment		13,870	8,287
Total		$ 13,870	$ 8,287

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value
Securities reclassified into or out of Level 3	$ 0	$ 0
Fair Value, Recurring | Available-for-sale securities
Fair Value
Fair Value	97,630	28,441
Fair Value, Recurring | Small Business Administration loan pools
Fair Value
Fair Value	34,215	17,183
Fair Value, Recurring | Mortgage backed securities
Fair Value
Fair Value	38,843	5,185
Fair Value, Recurring | U.S. agency obligations
Fair Value
Fair Value	11,205	4,070
Fair Value, Recurring | Community Development District bonds
Fair Value
Fair Value	9,359
Fair Value, Recurring | Municipals
Fair Value
Fair Value	1,068
Fair Value, Recurring | Corporate bonds
Fair Value
Fair Value	2,940	2,003
Fair Value, Recurring | Equity securities
Fair Value
Fair Value	992	971
Fair Value, Recurring | Mutual funds
Fair Value
Fair Value	992	971
Fair Value, Recurring | Level 2 | Available-for-sale securities
Fair Value
Fair Value	97,630	28,441
Fair Value, Recurring | Level 2 | Small Business Administration loan pools
Fair Value
Fair Value	34,215	17,183
Fair Value, Recurring | Level 2 | Mortgage backed securities
Fair Value
Fair Value	38,843	5,185
Fair Value, Recurring | Level 2 | U.S. agency obligations
Fair Value
Fair Value	11,205	4,070
Fair Value, Recurring | Level 2 | Community Development District bonds
Fair Value
Fair Value	9,359
Fair Value, Recurring | Level 2 | Municipals
Fair Value
Fair Value	1,068
Fair Value, Recurring | Level 2 | Corporate bonds
Fair Value
Fair Value	2,940	2,003
Fair Value, Recurring | Level 2 | Equity securities
Fair Value
Fair Value	992	971
Fair Value, Recurring | Level 2 | Mutual funds
Fair Value
Fair Value	$ 992	$ 971

FAIR VALUE - Assets Measured at

FAIR VALUE - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020
Fair Value
Fair Value	$ 442	$ 445
Total Gains (Losses)	(627)
Commercial
Fair Value
Fair Value	442	445
Total Gains (Losses)	(627)
Level 3
Fair Value
Fair Value	442	445
Level 3 | Commercial
Fair Value
Fair Value	$ 442	$ 445

FAIR VALUE - Carrying amount an

FAIR VALUE - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial Assets:
Securities available for sale, at fair value	$ 97,630	$ 28,441
Securities, Held to Maturity	1,686	224
Equity Securities	992	971
Financial Liabilities:
Line of Credit		9,999
Level 1, 2 & 3 | Carrying Amount
Financial Assets:
Accrued Interest Receivable	4,408	2,498
Level 1, 2 & 3 | Fair Value
Financial Assets:
Accrued Interest Receivable	4,408	2,498
Level 1 | Carrying Amount
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	123,625	171,980
Federal Funds Sold	30,533	26,970
Financial Liabilities:
Line of Credit		9,999
Level 1 | Fair Value
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	123,625	171,980
Federal Funds Sold	30,533	26,970
Financial Liabilities:
Line of Credit		9,999
Level 2 | Carrying Amount
Financial Assets:
Securities available for sale, at fair value	97,405	28,441
Securities, Held to Maturity	1,661	214
Equity Securities	992	971
Company Owned Life Insurance	16,987	16,858
Financial Liabilities:
Deposits	1,372,341	892,873
Federal Home Loan Bank Advances	70,103	55,000
Accrued Interest Payable	592	373
Level 2 | Fair Value
Financial Assets:
Securities available for sale, at fair value	97,630	28,441
Securities, Held to Maturity	1,686	224
Equity Securities	992	971
Company Owned Life Insurance	16,987	16,858
Financial Liabilities:
Deposits	1,405,917	883,225
Federal Home Loan Bank Advances	67,711	54,649
Accrued Interest Payable	592	373
Level 3 | Carrying Amount
Financial Assets:
Loans, net	1,343,066	785,167
Level 3 | Fair Value
Financial Assets:
Loans, net	$ 1,404,295	$ 796,924

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2019
LEASES
Right-of-use assets		$ 5,673
Lease liabilities	$ 7,739	$ 6,025

LEASES - Lease Cost (Details)

LEASES - Lease Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Lease cost
Operating Lease and Interest Cost	$ 311
Variable Lease Cost	107
Total Lease Cost	$ 418

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
LEASES
Operating Lease - Operating Cash Flows (Fixed Payments)	$ 311
Operating Lease - Operating Cash Flows (Liability Reduction)	253
New ROU Assets - Operating Leases	$ 1,620
Weighted Average Lease Term (Years) - Operating Leases	5 years 10 months 24 days
Weighted Average Discount Rate - Operating Leases	2.82%

LEASES - Maturity of lease liab

LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2019
Operating lease payments due:
Within one year	$ 1,742
After one but within two years	1,749
After two but within three years	1,292
After three but within four year	1,181
After four years but within five years	963
After five years	1,824
Total undiscounted cash flows	8,751
Discount on cash flows	(1,012)
Total operating lease liabilities	$ 7,739	$ 6,025

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) $ in Thousands	Mar. 27, 2020USD ($)	Mar. 26, 2020USD ($)loanshares	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Business Acquisition
Total assets			$ 1,672,082	$ 1,053,141
Total loans			1,343,066	785,167
Total deposits			1,372,341	$ 892,873
Goodwill			$ 14,897
Marquis Bancorp, Inc
Business Acquisition
Percentage of stock acquired		100.00%
Common stock issued and outstanding converted | shares		1.2048
Closing merger company issued | shares		4,227,816
Acquisition-related costs	$ 1,700
Goodwill		$ 14,897
Number of separate loan fair value adjustments | loan		3
Interest rate fair value adjustment on performing loans		$ 3,109
Fair value adjustment on PCI loans		4,046
Unamortized discount on time deposits		1,800
FHLB advances		100
Subordinated debt fair value		80
Net deferred income tax assets		$ 3,400
Marquis Bancorp, Inc | Core deposits
Business Acquisition
Amortization period		10 years
Marquis Bancorp, Inc | Class A Voting Common Stock
Business Acquisition
Common stock issued and outstanding converted | shares		1.2048
Closing merger company issued | shares		4,227,816

BUSINESS COMBINATION - MBI and

BUSINESS COMBINATION - MBI and the estimated fair values of the assets acquired, and liabilities assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 26, 2020	Mar. 31, 2020
Recognized amounts of identifiable assets acquired and liabilities assumed
Goodwill		$ 14,897
Marquis Bancorp, Inc
Business Acquisition
Number of MBI common shares outstanding	3,509,143
Per share exchange ratio	1.2048
Number of shares of common stock issued	4,227,816
Multiplied by common stock price per share on March 26, 2020	$ 15.21
Value of common stock issued	$ 64,305
Cash paid in lieu of fractional shares	1
Fair value of MBI stock options converted to PFHD options	393
Fair value of total consideration transferred	64,699
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents	26,860
Securities, Available for Sale	26,811
Securities, Held to Maturity	1,458
Loans	520,606
Premises and equipment	824
Accrued interest receivable	1,525
Cored deposit intangibles	3,964
Other assets	7,157
Total asset Acquired	589,205
Deposits	497,166
Federal Home Loan Bank advances	25,103
Subordinated notes payable	9,920
Accrued interest payable	610
Other Liabilities	6,604
Total liabilities assumed	539,403
Total identifiable net assets	49,802
Goodwill	$ 14,897

BUSINESS COMBINATION - Fair Val

BUSINESS COMBINATION - Fair Value Adjustments to Amortized Cost Basis (Details) - Marquis Bancorp, Inc $ in Thousands	Mar. 26, 2020USD ($)
Business Acquisition
Gross principal balance	$ 539,855
Interest rate fair value adjustment on performing loans	3,109
Fair value adjustment on PCI loans	(4,046)
Fair value of acquired loans	$ 520,606

BUSINESS COMBINATION - Fair V_2

BUSINESS COMBINATION - Fair Value Adjustments on PCI Loans (Details) - PCI loans - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 26, 2020
Business Acquisition
Interest component of expected cash flows (accretable discount)	$ (418)
Marquis Bancorp, Inc
Business Acquisition
Contractually required principal and interest at		$ 9,337
Contractual cash flows not expected to be collected		(4,873)
Expected cash flows		4,464
Interest component of expected cash flows (accretable discount)		(418)
Fair value of PCI loans accounted for under ASC 310-30		$ 4,046

BUSINESS COMBINATION - Pro-form

BUSINESS COMBINATION - Pro-forma Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)$ / shares
BUSINESS COMBINATION
Net interest income | $	$ 8,257
Net income | $	$ 1,520
EPS - basic | $ / shares	$ 0.26
EPS - diluted | $ / shares	$ 0.25

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	Apr. 30, 2020USD ($)item	Mar. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)
Subsequent Events
Number of loans processed | loan		1,300
Loans funded		$ 215,000
Number of debt service relief requests | item	125
Number of payment deferments | item	96
Percentage Of Debt Service Releif Approvals	11.00%
Loans and Leases Receivable, Gross		1,351,230	$ 792,467
At Risk
Subsequent Events
Loans and Leases Receivable, Gross	$ 15,400
Residential real estate
Subsequent Events
Number of debt service relief requests | item	63
Loans and Leases Receivable, Gross	$ 45,800	$ 373,129	$ 342,257