Professional Holding (PFHD) 10-Q 14 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 12, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 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		13,450,393
Entity Central Index Key	0001630856
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 38,034	$ 21,408
Interest-bearing deposits	215,007	150,572
Federal funds sold	39,444	26,970
Cash and cash equivalents	292,485	198,950
Securities available for sale, at fair value	105,213	28,441
Securities held to maturity (fair value June 30, 2020 – $1,652, December 31, 2019 – $224)	1,635	214
Equity securities	995	971
Loans, net of allowance of $9,045 and $6,548 as of June 30, 2020 and December 31, 2019, respectively	1,559,861	785,167
Federal Home Loan Bank stock, at cost	4,291	2,994
Federal Reserve Bank stock, at cost	4,745	2,074
Accrued interest receivable	5,495	2,498
Premises and equipment, net	5,300	4,307
Bank owned life insurance	17,113	16,858
Goodwill	14,728
Core deposit intangibles	3,783
Other assets	16,108	10,667
Total assets	2,031,752	1,053,141
Deposits
Demand – non-interest bearing	495,086	184,211
Demand – interest bearing	763,108	599,318
Time deposits	258,249	109,344
Total deposits	1,516,443	892,873
Federal Home Loan Bank advances	65,077	55,000
Subordinated debt	9,932
Official checks	4,439	6,191
Line of credit		9,999
PPPLF advances	218,080
Accrued interest and other liabilities	15,347	9,776
Total liabilities	1,829,318	973,839
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, 10,000,000 shares authorized, none issued
Treasury stock, at cost	(9,132)	(4,155)
Additional paid-in capital	202,438	77,019
Retained earnings	8,265	6,451
Accumulated other comprehensive gain (loss)	724	(73)
Total stockholders’ equity	202,434	79,302
Total liabilities and stockholders equity	2,031,752	1,053,141
Class A Voting Common Stock
Stockholders’ equity
Common stock	132	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	Jun. 30, 2020	Dec. 31, 2019
Securities, Held to Maturity	$ 1,652	$ 224
Loans allowances	$ 9,045	$ 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)	13,252,745	5,360,262
Common Stock, outstanding (in shares)	12,692,451	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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest income
Loans, including fees	$ 17,897	$ 8,712	$ 27,912	$ 16,787
Taxable securities	438	161	660	332
Dividend income on restricted stock	131	70	210	127
Other	56	555	760	1,024
Total interest income	18,522	9,498	29,542	18,270
Interest expense
Deposits	1,617	2,398	4,243	4,411
Federal Home Loan Bank advances	287	269	565	507
Other borrowings	327		382
Total interest expense	2,231	2,667	5,190	4,918
Net interest income	16,291	6,831	24,352	13,352
Provision for loan losses	1,750	495	2,595	382
Net interest income after provision for loan losses	14,541	6,336	21,757	12,970
Non-interest income
Service charges on deposit accounts	307	281	529	357
Income from Bank owned life insurance	126	85	255	142
Gain on sale and call of securities	11	3	15	3
Other	524	554	1,025	781
Total non-interest income	968	923	1,824	1,283
Non-interest expense
Salaries and employee benefits	6,912	4,558	12,175	8,872
Occupancy and equipment	1,081	602	1,855	1,123
Data processing	421	162	597	324
Marketing	151	133	288	272
Professional fees	806	307	1,161	582
Acquisition expenses	560		2,223
Regulatory assessments	300	145	514	307
Other	1,317	630	2,221	1,567
Total non-interest expense	11,548	6,537	21,034	13,047
Income before income taxes	3,961	722	2,547	1,206
Income tax provision	830	223	733	352
Net income	$ 3,131	$ 499	$ 1,814	$ 854
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.23	$ 0.08	$ 0.16	$ 0.14
Diluted (in dollars per share)	$ 0.22	$ 0.08	$ 0.15	$ 0.14
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale	$ 743	$ 215	$ 1,068	$ 483
Tax effect	(188)	(54)	(271)	(122)
Other comprehensive gain (loss), net of tax	555	161	797	361
Comprehensive income (loss)	$ 3,686	$ 660	$ 2,611	$ 1,215

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	$ 1		385			386
Issuance of common stock, net of Issuance cost (in Shares)	39,103
Treasury stock		(435)				(435)
Treasury stock (in shares)	(25,000)
Employee stock purchase plan			57			57
Net income				854		854
Other comprehensive gain					361	361
Stock based compensation			18			18
Balance at Jun. 30, 2019	$ 60	(655)	76,612	4,969	(64)	80,922
Balance (in Shares) at Jun. 30, 2019	5,937,987
Balance at Mar. 31, 2019	$ 60	(393)	76,244	4,470	(225)	80,156
Balance (in Shares) at Mar. 31, 2019	5,916,987
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost			330			330
Issuance of common stock, net of Issuance cost (in Shares)	36,000
Treasury stock		(262)				(262)
Treasury stock (in shares)	(15,000)
Employee stock purchase plan			30			30
Net income				499		499
Other comprehensive gain					161	161
Stock based compensation			8			8
Balance at Jun. 30, 2019	$ 60	(655)	76,612	4,969	(64)	80,922
Balance (in Shares) at Jun. 30, 2019	5,937,987
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	$ 37		60,221			60,258
Issuance of common stock, net of Issuance cost (in Shares)	3,664,667
Treasury stock		(4,977)	(9)			(4,986)
Treasury stock (in shares)	(315,294)
MBI acquisition	$ 42		64,657			64,699
MBI acquisition (in shares)	4,227,816
Employee stock purchase plan			58			58
Net income				1,814		1,814
Other comprehensive gain					797	797
Stock based compensation			492			492
Balance at Jun. 30, 2020	$ 139	(9,132)	202,438	8,265	724	202,434
Balance (in Shares) at Jun. 30, 2020	13,444,635
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost	$ 1		450			451
Issuance of common stock, net of Issuance cost (in Shares)	89,167
Treasury stock		(2,875)	(5)			(2,880)
Treasury stock (in shares)	(182,097)
Employee stock purchase plan			27			27
Net income				3,131		3,131
Other comprehensive gain					555	555
Stock based compensation			296			296
Balance at Jun. 30, 2020	$ 139	$ (9,132)	$ 202,438	$ 8,265	$ 724	$ 202,434
Balance (in Shares) at Jun. 30, 2020	13,444,635

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash flows from operating activities
Net income (loss)			$ 1,814	$ 854
Adjustments to reconcile net income to net cash from operating activities
Provision for loan losses	$ 1,750	$ 495	2,595	382
Deferred income tax benefit			(499)	199
Depreciation and amortization			739	156
Gain on sale of securities			4	3
Gain on call securities			11
Equity unrealized change in market value			(24)
Net amortization of securities			(936)	(278)
Net amortization of deferred loan fees			1,118	407
Employee stock purchase plan			58
Stock compensation			492	57
Income from bank owned life insurance	(126)	(85)	(255)	(142)
Changes in operating assets and liabilities:
Accrued interest receivable			(1,472)	(466)
Other assets			1,887	(635)
Official checks, accrued interest, interest payable and other liabilities			(3,395)	7,194
Net cash provided by in operating activities			2,137	7,731
Cash flows from investing activities
Proceeds from maturities and paydowns of securities available for sale			6,256	285
Proceeds from calls of securities available for sale			4,835	2,805
Proceeds from paydowns of securities held to maturity			44	22
Purchase of securities available for sale			(60,693)	(10,308)
Sale of securities available for sale			1,739	4,504
Loans originations, net of principal repayments			(257,801)	(115,113)
Proceeds from sale of loan			110
Purchase of Federal Reserve Bank stock			(2,671)	(361)
Purchase of Federal Home Loan Bank Stock			(1,297)	(1,015)
Proceeds of Federal Home Loan Bank Stock				425
Purchase of company owned life insurance				(8,000)
Purchases of premises and equipment			(741)	(490)
Proceeds from acquisition			26,860
Net cash used in investing activities			(283,359)	(127,246)
Cash flows from financing activities
Net increase (decrease) in deposits			126,404	136,456
Proceeds from issuance of stock, net of issuance costs			60,258	404
Purchase of treasury stock			(4,986)	(435)
Proceeds from Federal Home Loan Bank advances			10,000	20,000
Repayments of Federal Home Loan advances			(25,000)	(10,000)
Repayment of line of credit			(9,999)
Proceeds from PPPLF advances			218,080
Net cash provided by financing activities			374,757	146,425
Increase in cash and cash equivalents			93,535	26,910
Cash and cash equivalents at beginning of period			198,950	86,883	$ 86,883
Cash and cash equivalents at end of period	292,485	113,793	292,485	113,793	$ 198,950
Supplemental cash flow information:
Cash paid during the period for interest			4,907	4,891
Cash paid during the period for taxes			20	389
Supplemental noncash disclosures:
Other comprehensive gain (loss) – change in unrealized gain (loss) on securities available for sale, net of tax	$ 555	$ 161	797	361
Lease liabilities arising from obtaining right of use assets			1,620	$ 5,673
Total asset acquired			589,374
Total liabilities assumed			$ 539,403

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	PROFESSIONAL HOLDING CORP. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Tables in thousands, except share data) 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 six months ended June 30, 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. Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. 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. 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 workers are furloughed, laid off, or had hours limited. Such disruptions could adversely affect our loan and deposit fee income as well as create downward pressure on the quality of our loan portfolio possibly leading to an increase in loan charge-offs. The coronavirus COVID‑19 is an unprecedented event that has created high levels of uncertainty. We are hopeful that the CARES Act and derivative programs will be a stabilizing force for the next 90 to 180 days, and we are vigilantly monitoring global events and actions being taken by various Federal and State Agencies. We have maintained interim periodic communications with our regulators and have not experienced any material deposit outflows to date and frequently communicate with our credit clients. Given the fluidity of the situation, management cannot predict the long-term impact of novel coronavirus COVID‑19 for the remainder of 2020 or beyond. 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 emerging growth 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 credit loss estimation models. 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	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share: Net Income(loss) $ 3,131 $ 499 $ 1,814 $ 854 Total weighted average common stock outstanding 13,416 5,919 11,517 5,920 Net income(loss) per share $ 0.23 $ 0.08 $ 0.16 $ 0.14 Diluted earnings per share: Net Income $ 3,131 $ 499 $ 1,814 $ 854 Total weighted average common stock outstanding 13,416 5,919 11,517 5,920 Add: Dilutive effect of employee stock options 518 204 527 214 Total weighted average diluted stock outstanding 13,934 6,123 12,044 6,134 Net income per share $ 0.22 $ 0.08 $ 0.15 $ 0.14 For the three months ended June 30, 2020 and 2019 there were 29 thousand and no stock options that were anti-dilutive, respectively. For the six months ended June 30, 2020 and 2019 there were 29 thousand and no stock options that were anti-dilutive, respectively.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2020 Cost Gains Losses Fair Value Available-for-sale Small Business Administration loan pools $ 33,340 $ 35 $ (277) $ 33,098 Mortgage-backed securities 36,201 572 (17) 36,756 U.S. agency obligations 8,015 149 (1) 8,163 Community Development District bonds 22,616 489 (8) 23,097 Municipals 1,070 25 - 1,095 Corporate bonds 3,002 3 (1) 3,004 Total available-for-sale $ 104,244 $ 1,273 $ (304) $ 105,213 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 430 $ 19 $ — $ 449 US Treasury 204 — — 204 Foreign Bonds 1,001 — (2) 999 Total Held-to-Maturity $ 1,635 $ 19 $ (2) $ 1,652 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 June 30, 2020 and December 31, 2019, Corporate bonds are comprised of investments in the financial services industry. During the six months ended June 30, 2020, the net investment portfolio increased by $78.2 million as a result of purchases and acquisitions. Proceeds from sales of securities during the three and six months ended June 30, 2020 were $0 and $1.7 million, with gross realized gains of $0 and $4 thousand, respectively. Proceeds from calls of securities during the three and six months ended June 30, 2020 were $4.8 million and $4.8 million, with gross realized gains of $11 and $11 thousand, respectively. Proceeds from sales and calls of securities for the year ended December 31, 2019 were $4.5 million and $0.5 million, respectively. Securities pledged as of June 30, 2020, and December 31, 2019 were $13.6 million and $14.9 million, respectively. The scheduled maturities of securities as of June 30, 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. June 30, 2020 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 4,013 $ 4,014 Due after one year through five years 26,880 27,463 Due after five years through ten years 3,495 3,573 Due after ten years 315 309 Subtotal $ 34,703 $ 35,359 SBA loan pools $ 33,340 $ 33,098 Mortgage-backed securities 36,201 36,756 Total available-for-sale $ 104,244 $ 105,213 Held-to-maturity Due in one year or less $ 204 $ 204 Due after one year through five years 1,001 999 Subtotal $ 1,205 $ 1,203 Mortgage-backed securities $ 430 $ 449 Total held-to-maturity $ 1,635 $ 1,652 At June 30, 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 June 30, 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 June 30, 2020 Available-for-sale Small Business Administration loan pools $ 25,008 $ (204) $ 4,278 $ (73) $ 29,286 $ (277) Mortgage-backed securities 2,970 (17) — — 2,970 (17) U.S. agency obligations 2,004 (1) — — 2,004 (1) Community Development District bonds 587 (8) — — 587 (8) Municipals — — — — — — Corporate bonds 1,000 (1) — — 1,000 (1) Total available-for-sale $ 31,569 $ (231) $ 4,278 $ (73) $ 35,847 $ (304) 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 June 30, 2020. No credit losses were recognized in operations during for the six months ended June 30, 2020 or during 2019.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2020
LOANS
LOANS	NOTE 4 — LOANS Loans at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 December 31, 2019 Commercial real estate $ 704,947 $ 270,981 Residential real estate 388,613 342,257 Commercial 393,020 129,477 Construction and development 76,684 41,465 Consumer and other loans 13,281 8,287 1,576,545 792,467 Less – Unearned loan origination (fees) costs, net (7,639) (752) Allowance for loan losses (9,045) (6,548) $ 1,559,861 $ 785,167 The recorded investment in loans excludes accrued interest receivable due to immateriality. The bank had five loans totaling $4.5 million on nonaccrual as of June 30, 2020. The bank had three loans totaling $2.3 million on nonaccrual as of December 31, 2019. There are two loans with a balance of $1.6 million at 90 days past due still accruing as of June 30, 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 June 30, 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 June 30, 2020 Commercial real estate $ — $ 2,399 $ — $ 305 $ 2,704 $ 702,243 $ 704,947 Residential real estate 641 854 300 3,150 4,945 383,668 388,613 Commercial — — — 1,069 1,069 391,951 393,020 Construction and land development — — — — — 76,684 76,684 Consumer and other — — 1,348 — 1,348 11,933 13,281 Total $ 641 $ 3,253 $ 1,648 $ 4,524 $ 10,066 $ 1,566,479 $ 1,576,545 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 June 30, 2020, there were eight impaired loans with recorded investments totaling $16.1 million, of which there was one impaired loan with a recorded investment of $1.1 million with an allowance of $625 thousand. The average net investment on the impaired residential real estate and commercial loans during the three months ended June 30, 2020 were $1.6 million. Residential real estate loans had $29 thousand and $63 thousand interest income recognized for the three and six months ended June 30, 2020, which was equal to the cash basis interest income. At December 31, 2019, there were five 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’s judgment) with recorded investments totaling $3.6 million with no allowance. At December 31, 2019, 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 $334 thousand and $367 thousand as of June 30, 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 June 30, 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 Company 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 Company 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 Company 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 Company 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 Company 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 Company’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 Company 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 June 30, 2020 Commercial real estate $ 700,637 $ 1,606 $ 2,704 $ — $ 704,947 Residential real estate 376,743 8,908 2,962 — 388,613 Commercial 382,705 391 9,924 — 393,020 Construction and land development 76,684 — — — 76,684 Consumer 13,281 — — — 13,281 Total $ 1,550,050 $ 10,905 $ 15,590 $ — $ 1,576,545 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) June 30, 2020 Commercial real estate $ 305 Residential real estate 402 Commercial 725 Construction and development 3,063 Consumer and other loans — Carrying amount $ 4,495 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 (18) Reclassifications from nonaccretable difference — Disposals — Balance at June 30 $ (436) For those purchased credit impaired loans disclosed above, no allowances for loan losses were reversed through the six months ended June 30, 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 six months ended June 30, 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 $ 415 Residential real estate 590 Commercial 2,324 Construction and development 5,639 Consumer and other loans - Total $ 8,968 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 68 Residential real estate 126 Commercial 1,519 Construction and development 2,818 Consumer and other loans - Total $ 4,531 Expected cash flows $ 4,437 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC 310-30 $ 4,019 Paycheck Protection Program (PPP) The Company has participated in the Paycheck Protection Program (PPP) offered through the U.S. Small Business Administration (SBA) by way of the Coronavirus Aid Relief and Economic Security (CARES) Act that was passed at the end of the first quarter 2020. As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. To help clients, the Company added an online PPP application form and automated the PPP loan closing documentation process. As of June 30, 2020, the Company has processed, closed and funded more than 1,400 loans representing $224.0 million in relief proceeds. The majority of these loans 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. Interest income on loans include PPP loan fees. PPP loan fees recognized during the three and six months ended June 30, 2020 were $675.0 thousand. Debt Service Relief Requests Related to COVID-19 As of June 30, 2020, we have reviewed and processed numerous debt service relief requests in accordance with Section 4013 of the CARES Act and interagency guidelines published by federal banking regulators 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. To manage credit risk, the Company increased oversight and analysis of $44.1 million of loans to borrowers in vulnerable industries such as hotels and hospitality. As of June 30, 2020, $30.7 million of these loans where provided payment relief consistent with Section 4013 of the CARES Act and the interagency guidelines published on March 13, 2020 and are performing under the terms of those modifications. The remaining loans in this group continue to perform according to their terms.

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020 and 2019: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Three months ended June 30, 2020 Allowance for loan losses: Beginning balance $ 2,661 $ 3,260 $ 963 $ 451 $ 59 $ 7,394 Provision for loan losses 131 249 1,202 26 142 1,750 Loans charged-off - - - - (99) (99) Recoveries - - - - - - Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Three months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 1,086 $ 2,544 $ 1,527 $ 344 $ 71 $ 5,572 Provision for loan losses 225 115 51 27 77 495 Loans charged-off — — — — — — Recoveries — — — — 2 2 Total ending allowance balance $ 1,311 $ 2,659 $ 1,578 $ 371 $ 150 $ 6,069 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Six months ended June 30, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,116 $ 1,235 $ 272 $ 81 $ 6,549 Provision for loan losses 947 393 930 205 120 2,595 Loans charged-off — — — — (99) (99) Recoveries — — — — — — Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 1,435 $ 1,822 $ 2,106 $ 262 $ 60 $ 5,685 Provision for loan losses (124) 837 (528) 109 88 382 Loans charged-off — — — — — — Recoveries — — — — 2 2 Total ending allowance balance $ 1,311 $ 2,659 $ 1,578 $ 371 $ 150 $ 6,069 Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 625 $ — $ — $ 625 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 2,792 3,509 1,540 477 102 8,420 Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Loans: Loans individually evaluated for impairment $ 2,704 $ 3,484 $ 9,924 $ — $ — $ 16,112 Loans collectively evaluated for impairment 702,243 385,129 383,096 76,684 13,281 1,560,433 Total ending loans balance $ 704,947 $ 388,613 $ 393,020 $ 76,684 $ 13,281 $ 1,576,545 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 3,116 609 272 81 5,923 Total ending allowance balance $ 1,845 $ 3,116 $ 1,235 $ 272 $ 81 $ 6,549 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	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale Small Business Administration loan pools $ 33,098 $ — $ 33,098 $ — Mortgage-backed securities 36,756 — 36,756 — U.S. agency obligations 8,163 — 8,163 — Community Development District bonds 23,097 — 23,097 — Municipals 1,095 — 1,095 — Corporate bonds 3,004 — 3,004 — Total $ 105,213 $ — $ 105,213 $ — Equity Mutual funds $ 995 $ — $ 995 $ — Total $ 995 $ — $ 995 $ — 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 six months ended June 30, 2020 or for the year ended December 31, 2019. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable June 30, 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 444 — — 444 (625) Construction and land development — — — — — Consumer and other — — — — — Total $ 444 $ — $ — $ 444 $ (625) 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): June 30, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 253,041 $ 253,041 Level 1 Federal Funds Sold 39,444 39,444 Level 1 Securities, Available for Sale 105,213 105,213 Level 2 Securities, Held to Maturity 1,635 1,652 Level 2 Securities, Equity 995 995 Level 2 Loans, net 1,559,861 1,583,195 Level 3 Company Owned Life Insurance 17,113 17,113 Level 2 Accrued Interest Receivable 5,495 5,495 Level 1, 2 & 3 Financial Liabilities: Deposits 1,516,443 1,547,642 Level 2 Federal Home Loan Bank Advances 65,077 62,357 Level 2 Accrued Interest Payable 541 541 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	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2020 and $6.0 million during the year ended December 31, 2019. The total amount of ROU was $7.3 and $6.4 million at June 30, 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 and six months ended June 30, 2020 and 2019 consists of: Three-month Three-month Six-month Six-month period ended period ended period ended period ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating Lease and Interest Cost $ 445 $ 255 $ 756 $ 444 Variable Lease Cost 142 82 249 177 Total Lease Cost $ 587 $ 337 $ 1,005 $ 621 The following table provides supplemental information related to leases for the three and six months ended June 30, 2020 and 2019: Three-month Three-month Six-month Six-month period ended period ended period ended period ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating Lease - Operating Cash Flows (Fixed Payments) $ 445 $ 255 $ 756 $ 444 Operating Lease - Operating Cash Flows (Liability Reduction) $ 416 $ 203 $ 669 $ 203 New ROU Assets - Operating Leases $ — $ 411 $ 1,620 $ 411 Weighted Average Lease Term (Years) - Operating Leases 6.02 7.47 Weighted Average Discount Rate - Operating Leases % % 3.02 % 3.07 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of June 30, 2020 is as follows: June 30, 2020 Operating lease payments due: Within one year $ 1,604 After one but within two years 1,223 After two but within three years 1,204 After three but within four years 1,134 After four years but within five years 944 After five years 1,587 Total undiscounted cash flows 7,696 Discount on cash flows (373) Total operating lease liabilities $ 7,323 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. Lease Termination On June 19, 2020, the Company exercised an option to early terminate a lease for a former operational office of Marquis Bank and a branch located in Coral Gables (the “Closed Offices”). The Closed Offices were located less than one mile from the Bank’s already established Coral Gables location. The cost to exercise the option on the Closed Offices was $322.8 thousand and decreased the life of the lease by approximately 15 months. As a result of exercising the option, the lease will terminate in March 2021 as opposed to June 2022. This resulted in a savings of over $400 thousand in lease payments plus expenses. The cost of the option will be amortized through the end of the lease in March 2021.

BUSINESS COMBINATION

BUSINESS COMBINATION	6 Months Ended
	Jun. 30, 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. Each share of MBI common stock issued and outstanding immediately prior to closing was converted into 1.2048 shares of the Company’s Class A common stock, with cash paid in lieu of fractional shares. The Company issued 4,227,816 shares of its Class A Common Stock as consideration in the acquisition. 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. MBI results of operations were included in the Company’s results beginning March 27, 2020. Acquisition-related costs of $0.6 and $2.2 million are included in non-interest expense in the Company’s income statement for the three and six months ended June 30, 2020 and 2019, respectively. The fair value of the Class A common shares issued as part of the consideration paid for MBI was determined on 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 $14.7 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 27,029 Securities, Held to Maturity 1,466 Loans 520,606 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 3,964 Other assets 7,100 Total asset acquired 589,374 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 49,971 Goodwill $ 14,728 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 (18,242) Fair value adjustment on PCI loans (4,116) 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 $ 8,968 Contractual cash flows not expected to be collected (nonaccretable discount, includes principal and interest) (4,531) Expected cash flows at acquisition 4,437 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC-310-30 $ 4,019 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 $4.1 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 $4.5 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 was valued at $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 be amortized into 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 Six months ended (In thousands, except per share data) June 30, 2019 June 30, 2019 Net interest income $ 8,142 $ 16,398 Net income 1,347 2,867 EPS - basic $ 0.23 $ 0.48 EPS - diluted $ 0.22 $ 0.47

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 9 — SUBSEQUENT EVENTS Coex Coffee International Inc. The Company learned on July 15, 2020 that one of its borrowers, Coex Coffee International Inc. (“Coex”), filed a Petition Commencing an Assignment for the Benefit of Creditors in the 11 th Judicial Circuit Court in Miami-Dade County, Florida. Coex is primarily in the business of purchasing and selling green coffee beans. Coex has financed its business through various credit facilities from ten financial institutions in an amount totaling $191.9 million. The Company currently has a total of thirty-one (31) advances to Coex for the purchase of coffee from growers for periods of up to 90 days with an aggregate outstanding balance of $12.4 million. However, $4.1 million has been participated out without recourse to another financial institution leaving the Company with a current balance of $8.3 million as of July 10, 2020. The loans are required to be over-collateralized. While at the time of petition, the advances were current, through court documents and legal inquiry (by the Company’s counsel), the Company is presently investigating the status of its security and collateral. The situation remains fluid and as more information is obtained by the Company, we will evaluate the status and reserve associated with this loan. As part of our evaluation of the Coex credit, the Company classified $8.9 million as performing substandard as of June 30, 2020.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of estimates	Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. 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. 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 workers are furloughed, laid off, or had hours limited. Such disruptions could adversely affect our loan and deposit fee income as well as create downward pressure on the quality of our loan portfolio possibly leading to an increase in loan charge-offs. The coronavirus COVID‑19 is an unprecedented event that has created high levels of uncertainty. We are hopeful that the CARES Act and derivative programs will be a stabilizing force for the next 90 to 180 days, and we are vigilantly monitoring global events and actions being taken by various Federal and State Agencies. We have maintained interim periodic communications with our regulators and have not experienced any material deposit outflows to date and frequently communicate with our credit clients. Given the fluidity of the situation, management cannot predict the long-term impact of novel coronavirus COVID‑19 for the remainder of 2020 or beyond.
Basis of Presentation	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 six months ended June 30, 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.
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 emerging growth 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 credit loss estimation models. 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)	6 Months Ended
	Jun. 30, 2020
EARNINGS PER SHARE
Schedule of Basic and Diluted Earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share: Net Income(loss) $ 3,131 $ 499 $ 1,814 $ 854 Total weighted average common stock outstanding 13,416 5,919 11,517 5,920 Net income(loss) per share $ 0.23 $ 0.08 $ 0.16 $ 0.14 Diluted earnings per share: Net Income $ 3,131 $ 499 $ 1,814 $ 854 Total weighted average common stock outstanding 13,416 5,919 11,517 5,920 Add: Dilutive effect of employee stock options 518 204 527 214 Total weighted average diluted stock outstanding 13,934 6,123 12,044 6,134 Net income per share $ 0.22 $ 0.08 $ 0.15 $ 0.14

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2020
SECURITIES
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity	Gross Gross Amortized Unrealized Unrealized June 30, 2020 Cost Gains Losses Fair Value Available-for-sale Small Business Administration loan pools $ 33,340 $ 35 $ (277) $ 33,098 Mortgage-backed securities 36,201 572 (17) 36,756 U.S. agency obligations 8,015 149 (1) 8,163 Community Development District bonds 22,616 489 (8) 23,097 Municipals 1,070 25 - 1,095 Corporate bonds 3,002 3 (1) 3,004 Total available-for-sale $ 104,244 $ 1,273 $ (304) $ 105,213 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 430 $ 19 $ — $ 449 US Treasury 204 — — 204 Foreign Bonds 1,001 — (2) 999 Total Held-to-Maturity $ 1,635 $ 19 $ (2) $ 1,652 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	June 30, 2020 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 4,013 $ 4,014 Due after one year through five years 26,880 27,463 Due after five years through ten years 3,495 3,573 Due after ten years 315 309 Subtotal $ 34,703 $ 35,359 SBA loan pools $ 33,340 $ 33,098 Mortgage-backed securities 36,201 36,756 Total available-for-sale $ 104,244 $ 105,213 Held-to-maturity Due in one year or less $ 204 $ 204 Due after one year through five years 1,001 999 Subtotal $ 1,205 $ 1,203 Mortgage-backed securities $ 430 $ 449 Total held-to-maturity $ 1,635 $ 1,652
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 June 30, 2020 Available-for-sale Small Business Administration loan pools $ 25,008 $ (204) $ 4,278 $ (73) $ 29,286 $ (277) Mortgage-backed securities 2,970 (17) — — 2,970 (17) U.S. agency obligations 2,004 (1) — — 2,004 (1) Community Development District bonds 587 (8) — — 587 (8) Municipals — — — — — — Corporate bonds 1,000 (1) — — 1,000 (1) Total available-for-sale $ 31,569 $ (231) $ 4,278 $ (73) $ 35,847 $ (304) 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)	6 Months Ended
	Jun. 30, 2020
LOANS
Summary of loans	Loans at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 December 31, 2019 Commercial real estate $ 704,947 $ 270,981 Residential real estate 388,613 342,257 Commercial 393,020 129,477 Construction and development 76,684 41,465 Consumer and other loans 13,281 8,287 1,576,545 792,467 Less – Unearned loan origination (fees) costs, net (7,639) (752) Allowance for loan losses (9,045) (6,548) $ 1,559,861 $ 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 June 30, 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 June 30, 2020 Commercial real estate $ — $ 2,399 $ — $ 305 $ 2,704 $ 702,243 $ 704,947 Residential real estate 641 854 300 3,150 4,945 383,668 388,613 Commercial — — — 1,069 1,069 391,951 393,020 Construction and land development — — — — — 76,684 76,684 Consumer and other — — 1,348 — 1,348 11,933 13,281 Total $ 641 $ 3,253 $ 1,648 $ 4,524 $ 10,066 $ 1,566,479 $ 1,576,545 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 June 30, 2020 Commercial real estate $ 700,637 $ 1,606 $ 2,704 $ — $ 704,947 Residential real estate 376,743 8,908 2,962 — 388,613 Commercial 382,705 391 9,924 — 393,020 Construction and land development 76,684 — — — 76,684 Consumer 13,281 — — — 13,281 Total $ 1,550,050 $ 10,905 $ 15,590 $ — $ 1,576,545 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
Schedule of Purchased Credit Impaired loans at carrying amount	The carrying amount of those loans is as follows: (Dollars in thousands) June 30, 2020 Commercial real estate $ 305 Residential real estate 402 Commercial 725 Construction and development 3,063 Consumer and other loans — Carrying amount $ 4,495
Rollforward of Accretable yield, or income expected to be collected	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 (18) Reclassifications from nonaccretable difference — Disposals — Balance at June 30 $ (436)
Schedule of purchase credit impaired loans for which it was probable at acquisition that all contractually required payments would not be collected for which it was probable at acquisition that all contractually required payments would not be collected	PCI loans purchased during the six months ended June 30, 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 $ 415 Residential real estate 590 Commercial 2,324 Construction and development 5,639 Consumer and other loans - Total $ 8,968 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 68 Residential real estate 126 Commercial 1,519 Construction and development 2,818 Consumer and other loans - Total $ 4,531 Expected cash flows $ 4,437 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC 310-30 $ 4,019

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2020
ALLOWANCE FOR LOAN LOSSES
Schedule of allowance for loan losses by portfolio segment	Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Three months ended June 30, 2020 Allowance for loan losses: Beginning balance $ 2,661 $ 3,260 $ 963 $ 451 $ 59 $ 7,394 Provision for loan losses 131 249 1,202 26 142 1,750 Loans charged-off - - - - (99) (99) Recoveries - - - - - - Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Three months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 1,086 $ 2,544 $ 1,527 $ 344 $ 71 $ 5,572 Provision for loan losses 225 115 51 27 77 495 Loans charged-off — — — — — — Recoveries — — — — 2 2 Total ending allowance balance $ 1,311 $ 2,659 $ 1,578 $ 371 $ 150 $ 6,069 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Six months ended June 30, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,116 $ 1,235 $ 272 $ 81 $ 6,549 Provision for loan losses 947 393 930 205 120 2,595 Loans charged-off — — — — (99) (99) Recoveries — — — — — — Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total Six months ended June 30, 2019 Allowance for loan losses: Beginning balance $ 1,435 $ 1,822 $ 2,106 $ 262 $ 60 $ 5,685 Provision for loan losses (124) 837 (528) 109 88 382 Loans charged-off — — — — — — Recoveries — — — — 2 2 Total ending allowance balance $ 1,311 $ 2,659 $ 1,578 $ 371 $ 150 $ 6,069
Summary of loans by portfolio segment and impairment method	Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 625 $ — $ — $ 625 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 2,792 3,509 1,540 477 102 8,420 Total ending allowance balance $ 2,792 $ 3,509 $ 2,165 $ 477 $ 102 $ 9,045 Loans: Loans individually evaluated for impairment $ 2,704 $ 3,484 $ 9,924 $ — $ — $ 16,112 Loans collectively evaluated for impairment 702,243 385,129 383,096 76,684 13,281 1,560,433 Total ending loans balance $ 704,947 $ 388,613 $ 393,020 $ 76,684 $ 13,281 $ 1,576,545 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 3,116 609 272 81 5,923 Total ending allowance balance $ 1,845 $ 3,116 $ 1,235 $ 272 $ 81 $ 6,549 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)	6 Months Ended
	Jun. 30, 2020
FAIR VALUE.
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Fair Value Measurements at June 30, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale Small Business Administration loan pools $ 33,098 $ — $ 33,098 $ — Mortgage-backed securities 36,756 — 36,756 — U.S. agency obligations 8,163 — 8,163 — Community Development District bonds 23,097 — 23,097 — Municipals 1,095 — 1,095 — Corporate bonds 3,004 — 3,004 — Total $ 105,213 $ — $ 105,213 $ — Equity Mutual funds $ 995 $ — $ 995 $ — Total $ 995 $ — $ 995 $ — 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 June 30, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable June 30, 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 444 — — 444 (625) Construction and land development — — — — — Consumer and other — — — — — Total $ 444 $ — $ — $ 444 $ (625) 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	June 30, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 253,041 $ 253,041 Level 1 Federal Funds Sold 39,444 39,444 Level 1 Securities, Available for Sale 105,213 105,213 Level 2 Securities, Held to Maturity 1,635 1,652 Level 2 Securities, Equity 995 995 Level 2 Loans, net 1,559,861 1,583,195 Level 3 Company Owned Life Insurance 17,113 17,113 Level 2 Accrued Interest Receivable 5,495 5,495 Level 1, 2 & 3 Financial Liabilities: Deposits 1,516,443 1,547,642 Level 2 Federal Home Loan Bank Advances 65,077 62,357 Level 2 Accrued Interest Payable 541 541 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)	6 Months Ended
	Jun. 30, 2020
LEASES
Schedule of lease cost	Lease cost for the three and six months ended June 30, 2020 and 2019 consists of: Three-month Three-month Six-month Six-month period ended period ended period ended period ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating Lease and Interest Cost $ 445 $ 255 $ 756 $ 444 Variable Lease Cost 142 82 249 177 Total Lease Cost $ 587 $ 337 $ 1,005 $ 621
Schedule of supplemental information related to leases	The following table provides supplemental information related to leases for the three and six months ended June 30, 2020 and 2019: Three-month Three-month Six-month Six-month period ended period ended period ended period ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating Lease - Operating Cash Flows (Fixed Payments) $ 445 $ 255 $ 756 $ 444 Operating Lease - Operating Cash Flows (Liability Reduction) $ 416 $ 203 $ 669 $ 203 New ROU Assets - Operating Leases $ — $ 411 $ 1,620 $ 411 Weighted Average Lease Term (Years) - Operating Leases 6.02 7.47 Weighted Average Discount Rate - Operating Leases % % 3.02 % 3.07 %
Schedule of maturity analysis of operating lease liabilities	June 30, 2020 Operating lease payments due: Within one year $ 1,604 After one but within two years 1,223 After two but within three years 1,204 After three but within four years 1,134 After four years but within five years 944 After five years 1,587 Total undiscounted cash flows 7,696 Discount on cash flows (373) Total operating lease liabilities $ 7,323

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	6 Months Ended
	Jun. 30, 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 27,029 Securities, Held to Maturity 1,466 Loans 520,606 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 3,964 Other assets 7,100 Total asset acquired 589,374 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 49,971 Goodwill $ 14,728
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 (18,242) Fair value adjustment on PCI loans (4,116) 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 $ 8,968 Contractual cash flows not expected to be collected (nonaccretable discount, includes principal and interest) (4,531) Expected cash flows at acquisition 4,437 Interest component of expected cash flows (accretable discount) (418) Fair value of PCI loans accounted for under ASC-310-30 $ 4,019
Schedule of pro-forma information	Three months ended Six months ended (In thousands, except per share data) June 30, 2019 June 30, 2019 Net interest income $ 8,142 $ 16,398 Net income 1,347 2,867 EPS - basic $ 0.23 $ 0.48 EPS - diluted $ 0.22 $ 0.47

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic earnings per share:
Net Income (loss)	$ 3,131	$ 499	$ 1,814	$ 854
Total weighted average common stock outstanding	13,416	5,919	11,517	5,920
Net income (loss) per share	$ 0.23	$ 0.08	$ 0.16	$ 0.14
Diluted earnings per share:
Net income	$ 3,131	$ 499	$ 1,814	$ 854
Total weighted average common stock outstanding	13,416	5,919	11,517	5,920
Add: Dilutive effect of employee stock options	518	204	527	214
Total weighted average diluted stock outstanding	13,934	6,123	12,044	6,134
Net income per share	$ 0.22	$ 0.08	$ 0.15	$ 0.14
Stock options
Diluted earnings per share:
Anti-dilutive Stock Options	29,000	0	29,000	0

SECURITIES - Unrealized Gains A

SECURITIES - Unrealized Gains And Losses - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Available-for-sale
Amortized Cost, AFS, Total	$ 104,244	$ 104,244		$ 28,540
Gross Unrealized Gains, AFS	1,273	1,273		92
Gross Unrealized Losses, AFS	(304)	(304)		(191)
Fair Value, AFS	105,213	105,213		28,441
Held-to-Maturity
Amortized Cost, HTM	1,635	1,635		214
Gross Unrealized Gains, HTM	19	19		10
Gross Unrealized Losses, HTM	(2)	(2)
Fair Value, HTM	1,652	1,652		224
Increase Decrease in Debt Securities Available for Sale, Purchases and Acquisitions		78,200
Proceeds from sales of securities	0	1,700
Proceeds from calls of securities available for sale		4,835	$ 2,805
Gross realized gains	0	4
Securities pledged	13,600	13,600		14,900
Small Business Administration loan pools
Available-for-sale
Amortized Cost, AFS, Total	33,340	33,340		17,303
Gross Unrealized Gains, AFS	35	35		19
Gross Unrealized Losses, AFS	(277)	(277)		(139)
Fair Value, AFS	33,098	33,098		17,183
Mortgage backed securities
Available-for-sale
Amortized Cost, AFS, Total	36,201	36,201		5,237
Gross Unrealized Gains, AFS	572	572
Gross Unrealized Losses, AFS	(17)	(17)		(52)
Fair Value, AFS	36,756	36,756		5,185
Held-to-Maturity
Amortized Cost, HTM	430	430		214
Gross Unrealized Gains, HTM	19	19		10
Fair Value, HTM	449	449		224
U.S. agency obligations
Available-for-sale
Amortized Cost, AFS, Total	8,015	8,015		4,000
Gross Unrealized Gains, AFS	149	149		70
Gross Unrealized Losses, AFS	(1)	(1)
Fair Value, AFS	8,163	8,163		4,070
Community Development District bonds
Available-for-sale
Amortized Cost, AFS, Total	22,616	22,616
Gross Unrealized Gains, AFS	489	489
Gross Unrealized Losses, AFS	(8)	(8)
Fair Value, AFS	23,097	23,097
Municipals
Available-for-sale
Amortized Cost, AFS, Total	1,070	1,070
Gross Unrealized Gains, AFS	25	25
Fair Value, AFS	1,095	1,095
US Treasury
Held-to-Maturity
Amortized Cost, HTM	204	204
Fair Value, HTM	204	204
Foreign Bonds
Held-to-Maturity
Amortized Cost, HTM	1,001	1,001
Gross Unrealized Losses, HTM	(2)	(2)
Fair Value, HTM	999	999
Corporate bonds
Available-for-sale
Amortized Cost, AFS, Total	3,002	3,002		2,000
Gross Unrealized Gains, AFS	3	3		3
Gross Unrealized Losses, AFS	(1)	(1)
Fair Value, AFS	3,004	3,004		2,003
Call
Held-to-Maturity
Proceeds from sales of securities				4,500
Proceeds from calls of securities available for sale	4,800	4,800		$ 500
Gross realized gains	$ 11	$ 11

SECURITIES - Maturities Of Secu

SECURITIES - Maturities Of Securities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Available for sale, Amortized cost
Due in one year or less	$ 4,013
Due after one year through five years	26,880
Due after five years through ten years	3,495
Due after ten years	315
Amortized Cost, AFS	34,703
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost	104,244
Available for sale, Fair value
Due in one year or less	4,014
Due after one year through five years	27,463
Due after five years through ten years	3,573
Due after ten years	309
Fair Value, AFS	35,359
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	105,213
Held to maturity, Amortized cost
Due in one year or less	204
Due after one year through five years	1,001
Amortized Cost, HTM	1,205
Held to maturity, Fair value
Due in one year or less	204
Due after one year through five years	999
Fair Value, HTM	1,203
Amortized Cost, HTM, without single maturity date	1,635
Fair Value, HTM, without single maturity date	$ 1,652
Percentage of holding of securities of shareholder's equity	10.00%
Small Business Administration loan pools
Available for sale, Amortized cost
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost	$ 33,340
Available for sale, Fair value
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	33,098
Mortgage backed securities
Available for sale, Amortized cost
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost	36,201
Available for sale, Fair value
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	36,756
Held to maturity, Fair value
Amortized Cost, HTM, without single maturity date	430
Fair Value, HTM, without single maturity date	$ 449

SECURITIES - Unrealized Losses

SECURITIES - Unrealized Losses By Security Type And Time (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	$ 31,569	$ 11,898
12 Months or Longer, Fair Value	4,278	6,576
Total Fair Value	35,847	18,474
Credit losses recognized	0		$ 0
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(231)	(87)
12 Months or Longer, Unrealized Losses	(73)	(104)
Total Unrealized Losses	(304)	(191)
Small Business Administration loan pools
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	25,008	9,984
12 Months or Longer, Fair Value	4,278	4,035
Total Fair Value	29,286	14,019
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(204)	(63)
12 Months or Longer, Unrealized Losses	(73)	(76)
Total Unrealized Losses	(277)	(139)
Mortgage backed securities
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	2,970	1,914
12 Months or Longer, Fair Value		2,541
Total Fair Value	2,970	4,455
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(17)	(24)
12 Months or Longer, Unrealized Losses		(28)
Total Unrealized Losses	(17)	$ (52)
U.S. agency obligations
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	2,004
Total Fair Value	2,004
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(1)
Total Unrealized Losses	(1)
Community Development District bonds
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	587
Total Fair Value	587
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(8)
Total Unrealized Losses	(8)
Corporate bonds
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	1,000
Total Fair Value	1,000
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(1)
Total Unrealized Losses	$ (1)

LOANS - Major Classifications o

LOANS - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 1,576,545		$ 792,467
Unearned loan origination fees (costs), net	(7,639)		(752)
Allowance for loan losses	(9,045)	$ (7,394)	(6,548)	$ (6,069)	$ (5,572)	$ (5,685)
Loans, net	1,559,861		785,167
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	704,947		270,981
Allowance for loan losses	(2,792)	(2,661)	(1,845)	(1,311)	(1,086)	(1,435)
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	388,613		342,257
Allowance for loan losses	(3,509)	(3,260)	(3,116)	(2,659)	(2,544)	(1,822)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	393,020		129,477
Allowance for loan losses	(2,165)	(963)	(1,235)	(1,578)	(1,527)	(2,106)
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	76,684		41,465
Allowance for loan losses	(477)	(451)	(272)	(371)	(344)	(262)
Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	13,281		8,287
Allowance for loan losses	$ (102)	$ (59)	$ (81)	$ (150)	$ (71)	$ (60)

LOANS - Past Due Loans (Details

LOANS - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Non accrual	$ 4,524	$ 2,280
Total Past Due	10,066	5,146
Loans Not Past Due	1,566,479	787,321
Total	1,576,545	792,467
30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	641	304
60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	3,253	2,562
Greater than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,648
Commercial real estate
Financing Receivable, Past Due [Line Items]
Non accrual	305
Total Past Due	2,704	2,428
Loans Not Past Due	702,243	268,553
Total	704,947	270,981
Commercial real estate | 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	2,399	2,428
Residential real estate
Financing Receivable, Past Due [Line Items]
Non accrual	3,150	483
Total Past Due	4,945	787
Loans Not Past Due	383,668	341,470
Total	388,613	342,257
Residential real estate | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	641	304
Residential real estate | 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	854
Residential real estate | Greater than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	300
Commercial
Financing Receivable, Past Due [Line Items]
Non accrual	1,069	1,797
Total Past Due	1,069	1,931
Loans Not Past Due	391,951	127,546
Total	393,020	129,477
Commercial | 60 - 89 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		134
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans Not Past Due	76,684	41,465
Total	76,684	41,465
Consumer and Other
Financing Receivable, Past Due [Line Items]
Total Past Due	1,348
Loans Not Past Due	11,933	8,287
Total	13,281	$ 8,287
Consumer and Other | Greater than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 1,348

LOANS - Risk Category (Details)

LOANS - Risk Category (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 1,576,545	$ 792,467
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,550,050	784,768
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	10,905	3,474
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	15,590	4,225
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	704,947	270,981
Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	700,637	266,346
Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,606	2,207
Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,704	2,428
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	388,613	342,257
Residential real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	376,743	341,819
Residential real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	8,908	438
Residential real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,962
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Total	393,020	129,477
Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	382,705	126,851
Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	391	829
Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	9,924	1,797
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Total	76,684	41,465
Construction and land development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	76,684	41,465
Consumer and Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	13,281	8,287
Consumer and Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 13,281	$ 8,287

LOANS - Narratives (Details)

LOANS - Narratives (Details)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Financing Receivable, Impaired [Line Items]
Number of loans individually evaluated for impairment with an allowance recorded | loan		8
Number of loans on nonaccrual | loan		5	3
Non accrual	$ 4,524,000	$ 4,524,000	$ 2,280,000
Number of loans past due over 90 days | loan		2	0
Loan balance 90 days past due	1,600,000	$ 1,600,000
Financing Receivable, Past Due	10,066,000	10,066,000	$ 5,146,000
Recorded investment with no allowance	16,100,000	16,100,000	3,600,000
Recorded investment with allowance	1,100,000	1,100,000
Allowance	625,000	625,000
Average net investment	1,600,000		846,000
Interest income recognized	29,000	63,000	17,000
Loans that met the criteria for consideration as a troubled debt restructuring		334,000	367,000
Specific reserve	0	0	0
Threshold credit value for annual review	500,000	$ 500,000
Number of loans processed | loan		1,400
Loans funded	224,000,000	$ 224,000,000
Loan fees	675,000	$ 675,000
Maximum term of modification		6 months
Loans and Leases Receivable, Gross	1,576,545,000	$ 1,576,545,000	792,467,000
Loans with increased oversight and analysis	44,100,000	44,100,000
Loans provided for payment relief	30,700,000	30,700,000
Greater than 89 Days Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Past Due	1,648,000	1,648,000
Residential real estate
Financing Receivable, Impaired [Line Items]
Non accrual	3,150,000	3,150,000	483,000
Financing Receivable, Past Due	4,945,000	4,945,000	787,000
Loans and Leases Receivable, Gross	388,613,000	388,613,000	$ 342,257,000
Residential real estate | Greater than 89 Days Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Past Due	300,000	300,000
Commercial
Financing Receivable, Impaired [Line Items]
Number of loans individually evaluated for impairment with an allowance recorded | loan			1
Non accrual	1,069,000	1,069,000	$ 1,797,000
Financing Receivable, Past Due	1,069,000	1,069,000	1,931,000
Recorded investment with allowance			1,100,000
Allowance			626,000
Loans and Leases Receivable, Gross	$ 393,020,000	$ 393,020,000	$ 129,477,000

LOANS - Carrying Amount PCI Loa

LOANS - Carrying Amount PCI Loans and Accretable Yield (Details) - PCI loans $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 4,495
Allowance for loan losses reversed	0
Accretable yield or income expected to be collected
New loans purchased	(418)
Accretion of income	18
Balance	(436)
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	305
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	402
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	725
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 3,063

LOANS - PCI Loans Deemed Uncoll

LOANS - PCI Loans Deemed Uncollectable (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 26, 2020
Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Interest component of expected cash flows (accretable discount)		$ (400)
PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Interest component of expected cash flows (accretable discount)	$ (436)
PCI loans | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		8,968
Contractual cash flows not expected to be collected (nonaccretable discount)		4,531
Expected cash flows		4,437
Interest component of expected cash flows (accretable discount)		(418)
Fair value of PCI loans accounted for under ASC 310-30		4,019
Commercial real estate | PCI loans | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		415
Contractual cash flows not expected to be collected (nonaccretable discount)		68
Residential real estate | PCI loans | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		590
Contractual cash flows not expected to be collected (nonaccretable discount)		126
Commercial | PCI loans | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		2,324
Contractual cash flows not expected to be collected (nonaccretable discount)		1,519
Construction and land development | PCI loans | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type		5,639
Contractual cash flows not expected to be collected (nonaccretable discount)		$ 2,818

ALLOWANCE FOR LOAN LOSSES - Bal

ALLOWANCE FOR LOAN LOSSES - Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Allowance for loan losses
Beginning balance	$ 7,394	$ 5,572	$ 6,548	$ 5,685
Provision for loan losses	1,750	495	2,595	382
Loans charged-off	(99)		(99)
Recoveries		2		2
Total ending allowance balance	9,045	6,069	9,045	6,069
Commercial real estate
Allowance for loan losses
Beginning balance	2,661	1,086	1,845	1,435
Provision for loan losses	131	225	947	(124)
Total ending allowance balance	2,792	1,311	2,792	1,311
Residential real estate
Allowance for loan losses
Beginning balance	3,260	2,544	3,116	1,822
Provision for loan losses	249	115	393	837
Total ending allowance balance	3,509	2,659	3,509	2,659
Commercial
Allowance for loan losses
Beginning balance	963	1,527	1,235	2,106
Provision for loan losses	1,202	51	930	(528)
Total ending allowance balance	2,165	1,578	2,165	1,578
Construction and land development
Allowance for loan losses
Beginning balance	451	344	272	262
Provision for loan losses	26	27	205	109
Total ending allowance balance	477	371	477	371
Consumer and Other
Allowance for loan losses
Beginning balance	59	71	81	60
Provision for loan losses	142	77	120	88
Loans charged-off	(99)		(99)
Recoveries		2		2
Total ending allowance balance	$ 102	$ 150	$ 102	$ 150

ALLOWANCE FOR LOAN LOSSES - All

ALLOWANCE FOR LOAN LOSSES - Allowance for Loans Losses and Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses
Ending balance – individually evaluated for impairment	$ 625		$ 626
Ending balance– collectively evaluated for impairment	8,420		5,923
Total ending allowance balance	9,045	$ 7,394	6,548	$ 6,069	$ 5,572	$ 5,685
Loans individually evaluated for impairment	16,112		4,708
Loans collectively evaluated for impairment	1,560,433		787,759
Total	1,576,545		792,467
Commercial real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment	2,792		1,845
Total ending allowance balance	2,792	2,661	1,845	1,311	1,086	1,435
Loans individually evaluated for impairment	2,704		2,428
Loans collectively evaluated for impairment	702,243		268,553
Total	704,947		270,981
Residential real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment	3,509		3,116
Total ending allowance balance	3,509	3,260	3,116	2,659	2,544	1,822
Loans individually evaluated for impairment	3,484		483
Loans collectively evaluated for impairment	385,129		341,774
Total	388,613		342,257
Commercial
Allowance for loan losses
Ending balance – individually evaluated for impairment	625		626
Ending balance– collectively evaluated for impairment	1,540		609
Total ending allowance balance	2,165	963	1,235	1,578	1,527	2,106
Loans individually evaluated for impairment	9,924		1,797
Loans collectively evaluated for impairment	383,096		127,680
Total	393,020		129,477
Construction and land development
Allowance for loan losses
Ending balance– collectively evaluated for impairment	477		272
Total ending allowance balance	477	451	272	371	344	262
Loans collectively evaluated for impairment	76,684		41,465
Total	76,684		41,465
Consumer and Other
Allowance for loan losses
Ending balance– collectively evaluated for impairment	102		81
Total ending allowance balance	102	$ 59	81	$ 150	$ 71	$ 60
Loans collectively evaluated for impairment	13,281		8,287
Total	$ 13,281		$ 8,287

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 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	105,213	28,441
Fair Value, Recurring | Small Business Administration loan pools
Fair Value
Fair Value	33,098	17,183
Fair Value, Recurring | Mortgage backed securities
Fair Value
Fair Value	36,756	5,185
Fair Value, Recurring | U.S. agency obligations
Fair Value
Fair Value	8,163	4,070
Fair Value, Recurring | Community Development District bonds
Fair Value
Fair Value	23,097
Fair Value, Recurring | Municipals
Fair Value
Fair Value	1,095
Fair Value, Recurring | Corporate bonds
Fair Value
Fair Value	3,004	2,003
Fair Value, Recurring | Equity securities
Fair Value
Fair Value	995	971
Fair Value, Recurring | Mutual funds
Fair Value
Fair Value	995	971
Fair Value, Recurring | Level 2 | Available-for-sale securities
Fair Value
Fair Value	105,213	28,441
Fair Value, Recurring | Level 2 | Small Business Administration loan pools
Fair Value
Fair Value	33,098	17,183
Fair Value, Recurring | Level 2 | Mortgage backed securities
Fair Value
Fair Value	36,756	5,185
Fair Value, Recurring | Level 2 | U.S. agency obligations
Fair Value
Fair Value	8,163	4,070
Fair Value, Recurring | Level 2 | Community Development District bonds
Fair Value
Fair Value	23,097
Fair Value, Recurring | Level 2 | Municipals
Fair Value
Fair Value	1,095
Fair Value, Recurring | Level 2 | Corporate bonds
Fair Value
Fair Value	3,004	2,003
Fair Value, Recurring | Level 2 | Equity securities
Fair Value
Fair Value	995	971
Fair Value, Recurring | Level 2 | Mutual funds
Fair Value
Fair Value	$ 995	$ 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	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value
Fair Value	$ 444	$ 442
Total Gains (Losses)	(625)	(627)
Commercial
Fair Value
Fair Value	444	442
Total Gains (Losses)	(625)	(627)
Level 3
Fair Value
Fair Value	444	442
Level 3 | Commercial
Fair Value
Fair Value	$ 444	$ 442

FAIR VALUE - Carrying amount an

FAIR VALUE - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial Assets:
Securities available for sale, at fair value	$ 105,213	$ 28,441
Securities, Held to Maturity	1,652	224
Equity Securities	995	971
Financial Liabilities:
Line of Credit		9,999
Level 1, 2 & 3 | Carrying Amount
Financial Assets:
Accrued Interest Receivable	5,495	2,498
Level 1, 2 & 3 | Fair Value
Financial Assets:
Accrued Interest Receivable	5,495	2,498
Level 1 | Carrying Amount
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	253,041	171,980
Federal Funds Sold	39,444	26,970
Financial Liabilities:
Line of Credit		9,999
Level 1 | Fair Value
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	253,041	171,980
Federal Funds Sold	39,444	26,970
Financial Liabilities:
Line of Credit		9,999
Level 2 | Carrying Amount
Financial Assets:
Securities available for sale, at fair value	105,213	28,441
Securities, Held to Maturity	1,635	214
Equity Securities	995	971
Company Owned Life Insurance	17,113	16,858
Financial Liabilities:
Deposits	1,516,443	892,873
Federal Home Loan Bank Advances	65,077	55,000
Accrued Interest Payable	541	373
Level 2 | Fair Value
Financial Assets:
Securities available for sale, at fair value	105,213	28,441
Securities, Held to Maturity	1,652	224
Equity Securities	995	971
Company Owned Life Insurance	17,113	16,858
Financial Liabilities:
Deposits	1,547,642	883,225
Federal Home Loan Bank Advances	62,357	54,649
Accrued Interest Payable	541	373
Level 3 | Carrying Amount
Financial Assets:
Loans, net	1,559,861	785,167
Level 3 | Fair Value
Financial Assets:
Loans, net	$ 1,583,195	$ 796,924

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) - USD ($)	Jun. 19, 2020	Jun. 30, 2020	Dec. 31, 2019	Jan. 01, 2019
Right-of-use assets		$ 1,600,000	$ 6,000,000	$ 5,673,000
Lease liabilities		$ 7,323,000	$ 6,400,000	$ 6,025,000
Closed offices
Cost to exercise the option of termination of lease	$ 322,800
Period of decrease of life of lease on termination of lease	15 months
Savings on termination of lease	$ 400,000

LEASES - Lease Cost (Details)

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lease cost
Operating Lease and Interest Cost	$ 445	$ 255	$ 756	$ 444
Variable Lease Cost	142	82	249	177
Total Lease Cost	$ 587	$ 337	$ 1,005	$ 621

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
LEASES
Operating Lease - Operating Cash Flows (Fixed Payments)	$ 445	$ 255	$ 756	$ 444
Operating Lease - Operating Cash Flows (Liability Reduction)	$ 416	203	669	203
New ROU Assets - Operating Leases		$ 411	$ 1,620	$ 411
Weighted Average Lease Term (Years) - Operating Leases	6 years 7 days	7 years 5 months 19 days	6 years 7 days	7 years 5 months 19 days
Weighted Average Discount Rate - Operating Leases	3.02%	3.07%	3.02%	3.07%

LEASES - Maturity of lease liab

LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jan. 01, 2019
Operating lease payments due:
Within one year	$ 1,604
After one but within two years	1,223
After two but within three years	1,204
After three but within four year	1,134
After four years but within five years	944
After five years	1,587
Total undiscounted cash flows	7,696
Discount on cash flows	(373)
Total operating lease liabilities	$ 7,323	$ 6,400	$ 6,025

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) $ in Thousands	Mar. 26, 2020USD ($)loanshares	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Business Acquisition
Total assets		$ 2,031,752		$ 2,031,752		$ 1,053,141
Total loans		1,559,861		1,559,861		785,167
Total deposits		1,516,443		1,516,443		$ 892,873
Goodwill		14,728		14,728
Marquis Bancorp, Inc
Business Acquisition
Common stock issued and outstanding converted | shares	1.2048
Closing merger company issued | shares	4,227,816
Acquisition-related costs		$ 600	$ 2,200	$ 600	$ 2,200
Goodwill	$ 14,728
Number of separate loan fair value adjustments | loan	3
Gross principal balance	$ 539,855
Interest rate fair value adjustment on performing loans	3,109
Credit fair value adjustment on performing loans	18,242
Fair value adjustment on PCI loans	4,116
Non-accretable discount	4,500
Accretable Discount	400
Cored deposit intangibles	3,964
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	Jun. 30, 2020
Recognized amounts of identifiable assets acquired and liabilities assumed
Goodwill		$ 14,728
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	27,029
Securities, Held to Maturity	1,466
Loans	520,606
Premises and equipment	824
Accrued interest receivable	1,525
Cored deposit intangibles	3,964
Other assets	7,100
Total asset Acquired	589,374
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	49,971
Goodwill	$ 14,728

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
Credit fair value adjustment on performing loans	(18,242)
Fair value adjustment on PCI loans	(4,116)
Fair value of acquired loans	$ 520,606

BUSINESS COMBINATION - Fair V_2

BUSINESS COMBINATION - Fair Value Adjustments on PCI Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 26, 2020
Marquis Bancorp, Inc
Business Acquisition
Interest component of expected cash flows (accretable discount)		$ (400)
PCI loans
Business Acquisition
Interest component of expected cash flows (accretable discount)	$ (436)
PCI loans | Marquis Bancorp, Inc
Business Acquisition
Contractually required principal and interest at		8,968
Contractual cash flows not expected to be collected		(4,531)
Expected cash flows		4,437
Interest component of expected cash flows (accretable discount)		(418)
Fair value of PCI loans accounted for under ASC 310-30		$ 4,019

BUSINESS COMBINATION - Pro-form

BUSINESS COMBINATION - Pro-forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
BUSINESS COMBINATION
Net interest income	$ 8,142	$ 16,398
Net income	$ 1,347	$ 2,867
EPS - basic	$ 0.23	$ 0.48
EPS - diluted	$ 0.22	$ 0.47

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	Jul. 15, 2020USD ($)itemloan	Jun. 30, 2020USD ($)	Jul. 14, 2020USD ($)	Dec. 31, 2019USD ($)
Subsequent Events
Proceeds from Issuance of Debt		$ 218,080
Amount classified as substandard		1,576,545		$ 792,467
Substandard
Subsequent Events
Amount classified as substandard		15,590		$ 4,225
Coex Coffee International Inc. | Substandard
Subsequent Events
Amount classified as substandard		$ 8,900
Subsequent Event | Coex Coffee International Inc.
Subsequent Events
Number Of Financial Institutions From Which Borrowings Have Been Made | item	10
Proceeds from Issuance of Debt	$ 191,900
Number Of Advances For Purchase Of Coffee | loan	31
Loan Advance Maximum Period	90 days
Amount classified as substandard			$ 12,400
Current balance	$ 8,300
Loans Participated Out Without Recourse To Another Financial Institution	$ 4,100