Professional Holding (PFHD) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	Professional Holding Corp.
Title of 12(b) Security	Class A Common Stock
Trading Symbol	PFHD
Security Exchange Name	NASDAQ
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		13,657,108
Entity Central Index Key	0001630856
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 29,140	$ 62,305
Interest-bearing deposits	250,670	129,291
Federal funds sold	43,919	25,376
Cash and cash equivalents	323,729	216,972
Securities available for sale, at fair value - taxable	57,067	65,110
Securities available for sale, at fair value - tax exempt	22,341	22,398
Securities held to maturity (fair value March 31, 2021 – $1,528, December 31, 2020 – $1,561)	1,515	1,547
Equity securities	5,914	6,005
Loans, net of allowance of $9,656 and $16,259 as of March 31, 2021, and December 31, 2020, respectively	1,717,671	1,643,373
Loans held for sale	3,608	1,270
Federal Home Loan Bank stock, at cost	2,529	3,229
Federal Reserve Bank stock, at cost	4,944	4,762
Accrued interest receivable	6,511	6,666
Premises and equipment, net	4,033	4,370
Bank owned life insurance	37,642	37,360
Deferred tax asset	8,923	10,525
Goodwill	24,621	24,621
Core deposit intangibles	1,347	1,422
Other assets	11,163	7,640
Total assets	2,233,558	2,057,270
Deposits
Demand – non-interest bearing	589,415	475,598
Demand - interest bearing	1,067,530	947,370
Time deposits	248,759	236,575
Total deposits	1,905,704	1,659,543
Official checks	4,238	4,447
Federal Home Loan Bank advances	40,000	40,000
Other borrowings	40,678	114,573
Subordinated debt	10,108	10,153
Accrued interest and other liabilities	12,799	12,989
Total liabilities	2,013,527	1,841,705
Stockholders’ equity
Preferred stock, 10,000,000 shares authorized, none issued
Treasury stock, at cost	(10,087)	(9,209)
Additional paid-in capital	209,770	208,995
Retained earnings	19,541	14,756
Accumulated other comprehensive income (loss)	664	882
Total stockholders’ equity	220,031	215,565
Total liabilities and stockholders' equity	2,233,558	2,057,270
Class A Voting Common Stock
Stockholders’ equity
Common stock	$ 143	$ 141

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Securities, Held to Maturity	$ 1,528	$ 1,561
Loans allowances	$ 9,656	$ 16,259
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)	14,281,977	14,100,760
Common Stock, outstanding (in shares)	13,661,567	13,534,829
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)	0	0
Common Stock, outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest income
Loans, including fees	$ 19,233	$ 10,015
Investment securities - taxable	179	213
Investment securities - tax exempt	203	9
Dividend income on restricted stock	95	79
Other	62	704
Total interest income	19,772	11,020
Interest expense
Deposits	1,317	2,626
Federal Home Loan Bank advances	196	278
Subordinated debt	130
Other borrowings	250	55
Total interest expense	1,893	2,959
Net interest income	17,879	8,061
Provision for loan losses	1,038	845
Net interest income after provision for loan losses	16,841	7,216
Non-interest income
Service charges on deposit accounts	395	222
Income from Bank owned life insurance	282	129
SBA origination fees	145	30
SWAP fees	209	263
Third party loan sales	75	110
Gain on sale and call of securities	1	4
Other	12	98
Total non-interest income	1,119	856
Non-interest expense
Salaries and employee benefits	6,784	5,263
Occupancy and equipment	1,102	774
Data processing	290	176
Marketing	153	137
Professional fees	628	355
Acquisition expenses	684	1,663
Regulatory assessments	349	214
Other	1,798	904
Total non-interest expense	11,788	9,486
Income (loss) before income taxes	6,172	(1,414)
Income tax provision (benefit)	1,387	(97)
Net income (loss)	$ 4,785	$ (1,317)
Earnings per share:
Basic (in dollars per share)	$ 0.36	$ (0.14)
Diluted (in dollars per share)	$ 0.34	$ (0.14)
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale	$ (289)	$ 324
Tax effect	71	(82)
Other comprehensive gain (loss), net of tax	(218)	242
Comprehensive income (loss)	$ 4,567	$ (1,075)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2019	$ 60	$ (4,155)	$ 77,019	$ 6,451	$ (73)	$ 79,302
Balance (in Shares) at Dec. 31, 2019	5,867,446
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost	$ 36		59,771			59,807
Issuance of common stock, net of Issuance cost (in Shares)	3,575,500
Marquis Bancorp (MBI) acquisition	$ 42		64,657			64,699
Marquis Bancorp (MBI) acquisition (in shares)	4,227,816
Employee stock purchase plan			31			31
Stock based compensation			196			196
Treasury stock		(2,102)	(4)			(2,106)
Treasury stock (in shares)	(133,197)
Net income (loss)				(1,317)		(1,317)
Other comprehensive income					242	242
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
Balance at Dec. 31, 2020	$ 141	(9,209)	208,995	14,756	882	215,565
Balance (in Shares) at Dec. 31, 2020	13,534,829
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of Issuance cost	$ 1		436			437
Issuance of common stock, net of Issuance cost (in Shares)	52,845
Employee stock purchase plan			16			16
Employee stock purchase plan (in Shares)	873
Stock based compensation	$ 1		324			325
Stock based compensation (in shares)	127,499
Treasury stock		(878)	(1)			(879)
Treasury stock (in shares)	(54,479)
Net income (loss)				4,785		4,785
Other comprehensive income					(218)	(218)
Balance at Mar. 31, 2021	$ 143	$ (10,087)	$ 209,770	$ 19,541	$ 664	$ 220,031
Balance (in Shares) at Mar. 31, 2021	13,661,567

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash flows from operating activities
Net income (loss)	$ 4,785	$ (1,317)
Adjustments to reconcile net income to net cash from operating activities
Provision for loan losses	1,038	845
Deferred income tax benefit	1,387	(209)
Depreciation and amortization	384	245
Gain on sale of securities		(4)
Gain on call of securities	(1)
Equity unrealized change in market value	91	(21)
Net amortization of securities	568	(1,049)
Net amortization of deferred loan fees	(2,802)	251
Loans held for sale	(2,338)	(673)
Income from bank owned life insurance	(282)	(129)
Loss on disposal of premises and equipment	137
Employee stock purchase plan	16	31
Stock compensation	325	196
Changes in operating assets and liabilities:
Accrued interest receivable	155	(385)
Other assets	(3,523)	4,820
Official checks, accrued interest, interest payable and other liabilities	(113)	(12,982)
Net cash provided by operating activities	(173)	(10,381)
Cash flows from investing activities
Proceeds from maturities and paydowns of securities available for sale	5,733	2,768
Proceeds from calls of securities available for sale	1,514	1,000
Proceed from paydowns of securities held to maturity	29	32
Purchase of securities available for sale		(46,615)
Proceeds from sale of securities available for sale		1,759	$ 1,700
Loans originations, net of principal repayments	(71,802)	(37,716)
Purchase of Federal Reserve Bank stock	(182)	(301)
Proceeds from maturities of Federal Home Loan Bank Stock	700
Purchase of Federal Home Loan Bank Stock		(1,510)
Purchases of premises and equipment	(154)	(692)
Proceeds from acquisition		26,860
Net cash used in investing activities	(64,162)	(54,415)
Cash flows from financing activities
Net increase (decrease) in deposits	246,161	(17,698)
Proceeds from issuance of stock, net of issuance costs	437	59,807
Purchase of treasury stock	(879)	(2,106)
Proceeds from Federal Home Loan Bank advances		10,000
Repayments of Federal Home Loan advances		(20,000)
Repayment of line of credit		(9,999)
Repayments of PPPLF advances	(74,627)
Net cash provided by financing activities	171,092	20,004
Increase in cash and cash equivalents	106,757	(44,792)
Cash and cash equivalents at beginning of period	216,972	198,950	198,950
Cash and cash equivalents at end of period	323,729	154,158	$ 216,972
Supplemental cash flow information:
Cash paid during the period for interest	2,203	2,712
Supplemental noncash disclosures:
Recognition of participation loans as secured borrowings	$ 732
Lease liabilities arising from obtaining right of use assets		1,620
Total assets acquired		589,205
Total liabilities assumed		$ 539,403

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, 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, 2020. 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. Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020‑04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020, and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. 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 small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating 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	3 Months Ended
	Mar. 31, 2021
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 stockholders 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 stockholders by the weighted average number of shares of common stock outstanding plus the effect of employee stock options during the year. Three Months Ended March 31, 2021 2020 Basic earnings per share: Net income (loss) $ 4,785 $ (1,317) Total weighted average common stock outstanding 13,442,359 9,617,986 Net income (loss) per share $ 0.36 $ (0.14) Diluted earnings per share: Net income (loss) $ 4,785 $ (1,317) Total weighted average common stock outstanding 13,442,359 9,617,986 Add: Dilutive effect of employee stock options 478,915 - Total weighted average diluted stock outstanding 13,921,274 9,617,986 Net income (loss) per share $ 0.34 $ (0.14) For the three months ended March 31, 2021, there were 403 thousand stock options that were anti-dilutive and for the three months ended March 31, 2020, there were 560 thousand stock options that were anti-dilutive.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2021
SECURITIES
SECURITIES	NOTE 3 — SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized March 31, 2021 Cost Gains Losses Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 29,008 $ 46 $ (172) $ 28,882 Mortgage-backed securities 23,880 291 (97) 24,074 United States agency obligations 2,000 100 - 2,100 Corporate bonds 2,000 11 - 2,011 Total available-for-sale - taxable $ 56,888 $ 448 $ (269) $ 57,067 Available-for-sale - tax exempt Community Development District bonds $ 20,579 $ 674 $ - $ 21,253 Municipals 1,060 28 - 1,088 Total available-for-sale - tax exempt $ 21,639 $ 702 $ - $ 22,341 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 314 $ 13 $ — $ 327 United States Treasury 201 — — 201 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,515 $ 13 $ — $ 1,528 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 - 3,122 Corporate bonds 2,501 9 - 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ - $ 21,299 Municipals 1,064 35 - 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ - $ 22,398 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 As of March 31, 2021, and December 31, 2020, Corporate bonds are comprised of investments in the financial services industry. During the three months ended March 31, 2021, the net investment portfolio decreased by $8.3 million as a result of paydowns, maturities and redemptions. Proceeds from the maturity and redemption of securities during the three months ended March 31, 2021, were $1.5 million, with gross realized gains of $1 thousand. Proceeds from the sales and redemption of securities during the three months ended March 31, 2020, were $7.6 million, with gross realized gains of $4 thousand. Proceeds from the sales of securities during the year ended December 31, 2020, were $1.7 million, with gross realized gains of $4 thousand. Proceeds from redemption of securities for the year ended December 31, 2020, were $9.1 million, with gross realized gains of $33 thousand. Securities pledged for public funds as of March 31, 2021, and December 31, 2020, were $12.5 million and $12.5 million, respectively. 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. The scheduled maturities of securities as of March 31, 2021, are as follows: March 31, 2021 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 1,497 $ 1,520 Due after one year through five years 22,898 23,646 Due after five years through ten years 929 963 Due after ten years 315 323 Subtotal $ 25,639 $ 26,452 Small Business Administration loan pools $ 29,008 $ 28,882 Mortgage-backed securities 23,880 24,074 Total available-for-sale $ 78,527 $ 79,408 Held-to-maturity Due in one year or less $ 1,201 $ 1,201 Due after one year through five years — — Subtotal $ 1,201 $ 1,201 Mortgage-backed securities $ 314 $ 327 Total held-to-maturity $ 1,515 $ 1,528 At March 31, 2021, and December 31, 2020, 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 stockholders’ equity. At March 31, 2021, and December 31, 2020, the number of investment positions that are in an unrealized loss position were 35 and 36, respectively. The tables below indicate the fair value of debt securities with unrealized losses and for the period of time of which these losses were outstanding at March 31, 2021, and December 31, 2020, respectively, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 2,159 $ (42) $ 17,493 $ (130) $ 19,652 $ (172) Mortgage-backed securities 5,099 (97) — — 5,099 (97) United States agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale - taxable $ 7,258 $ (139) $ 17,493 $ (130) $ 24,751 $ (269) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Corporate bonds — — — — — — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — 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. Since SBA loan pools and mortgage-backed securities are government sponsored entities that are highly rated, the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not have any securities in an Other Than Temporary Impairment (“OTTI”) position. The Company does not intend to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be other-than-temporarily impaired at March 31, 2021. No credit losses were recognized in operations during the three months ended March 31, 2021, or during 2020.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2021
LOANS
LOANS	NOTE 4 — LOANS Loans at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Commercial real estate $ 820,465 $ 777,776 Residential real estate 369,234 380,491 Commercial 443,032 396,642 Construction and land development 93,302 99,883 Consumer and other 12,563 11,688 Total loans 1,738,596 1,666,480 Unearned loan origination (fees) costs, net (1,489) (1,323) Unearned PPP loan origination (fees) costs, net (5,708) (4,255) Allowance for loan loss (9,656) (16,259) Loans, net (1) $ 1,721,743 $ 1,644,643 (1) Does not include loan control, loan participation control or loans in process. The recorded investment in loans excludes accrued interest receivable due to immateriality. At March 31, 2021, and December 31, 2020, there were $242.2 million and $227.8 million, respectively in total loans pledged to the Federal Home Loan Bank (“FHLB”) for liquidity. Loan premiums for loans purchased are amortized over the life of the loan with acceleration upon the increase in principal paydowns or payoffs. At March 31, 2021, and December 31, 2020, loan premiums for purchased loans were $0.5 million and $0.6 million, respectively. There are no loans over 90 days past due and accruing as of March 31, 2021, or December 31, 2020. The following table presents the aging of the recorded investment in past due loans as of March 31, 2021, and December 31, 2020, by class of loans: 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total March 31, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 820,465 $ 820,465 Residential real estate 611 — — — 611 368,623 369,234 Commercial — — — 1,468 1,468 441,564 443,032 Construction and land development — — — — — 93,302 93,302 Consumer and other 97 — — 1,307 1,404 11,159 12,563 Total $ 708 $ — $ — $ 2,775 $ 3,483 $ 1,735,113 $ 1,738,596 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, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,776 $ 777,776 Residential real estate 1,303 — — — 1,303 379,188 380,491 Commercial 278 — — 9,127 9,405 387,237 396,642 Construction and land development — — — — — 99,883 99,883 Consumer and other — — — 1,307 1,307 10,381 11,688 Total $ 1,581 $ — $ — $ 10,434 $ 12,015 $ 1,654,465 $ 1,666,480 At March 31, 2021, there were six 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 both unpaid principal balance and recorded investments totaling $5.4 million. Three of these were impaired loans with a recorded investment of $2.8 million with an allowance of $0.7 million and one substandard accruing loan with a recorded investment of $2.3 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the three months ended March 31, 2021 were $0.9 million. Residential real estate loans had $2.6 thousand and $3.7 thousand interest income recognized for the three months ended March 31, 2021, and 2020, respectively, which was equal to the cash basis interest income. At December 31, 2020, there were six impaired loans with recorded investments totaling $13.1 million, of which there were three impaired loans with a recorded investment of $10.4 million on nonaccrual with an allowance of $8.3 million and one substandard accruing loan with a recorded investment of $2.4 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the year ended December 31, 2020, was $2.2 million. The residential real estate loans had $12.7 thousand of interest income recognized during the year ended December 31, 2020, which was equal to the cash basis interest income. Troubled Debt Restructurings: The principal carrying balances of loans that met the criteria for consideration as troubled debt restructurings (“TDR”) were $272 thousand and $298 thousand as of March 31, 2021, and December 31, 2020, respectively. The Company has allocated no specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2021, and December 31, 2020. 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 $1.0 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 creditworthiness 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 March 31, 2021 Commercial real estate $ 818,139 $ — $ 2,326 $ — $ 820,465 Residential real estate 369,234 — — — 369,234 Commercial 441,111 453 1,468 — 443,032 Construction and land development 93,302 — — — 93,302 Consumer 11,256 — 1,307 — 12,563 Total $ 1,733,042 $ 453 $ 5,101 $ — $ 1,738,596 December 31, 2020 Commercial real estate $ 775,420 $ — $ 2,356 $ — $ 777,776 Residential real estate 380,062 429 — — 380,491 Commercial 387,403 112 9,127 — 396,642 Construction and land development 99,883 — — — 99,883 Consumer 10,381 — 1,307 — 11,688 Total $ 1,653,149 $ 541 $ 12,790 $ — $ 1,666,480 Purchased Credit Impaired Loans: The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 Residential real estate $ 405 $ 405 Commercial 678 746 Construction and development 5,555 3,732 Carrying amount, net of total discounts $ 6,638 $ 4,883 Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the three months ended March 31, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 89 Reclassifications from nonaccretable difference — Disposals — Balance at end of period $ (541) For those purchased credit impaired loans disclosed above, no allowances for loan losses were recorded or reversed during the three months ended March 31, 2021. 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 on March 26, 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 $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans - Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans - Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638 Non-Performing Assets As of March 31, 2021, the Company had nonperforming assets of $2.8 million, or 0.12% of total assets, compared to nonperforming assets of $10.4 million, or 0.51% of total assets, at December 31, 2020. In March 2021, the Company charged off $7.6 million of the Coex Coffee International Inc. (“Coex”) loan, which amount was previously reserved during the third quarter of 2020. Based on a review of the estimated receivables collected by the assignee, the remaining book balance of $0.6 million for the Coex loan appears to be collectable by the Company, subject to final accounting by the assignee. Paycheck Protection Program The Company participated in the Paycheck Protection Program (“PPP”) and funded 2,113 small business loans representing $322.5 million in relief proceeds under all three Rounds of the PPP. During the first quarter of 2021, the Company funded 608 loans representing $96.4 million under Round Three of the PPP. Through the Company’s online PPP application and loan closing documentation process, there have been 1,062 loans submitted for forgiveness for a total of $160.4 million, or 70.9% of total PPP loan volume from Rounds One and Two as of March 31, 2021. From the total loans submitted for forgiveness, 913 loans representing $110.8 million were forgiven and removed from the balance sheet. Most of the PPP loans were initially pledged to the Federal Reserve as part of the Payroll Protection Program Liquidity Facility ("PPPLF"). The PPPLF pledged loans are non-recourse to the Company. In addition, the Company paid off approximately $74.6 million in PPPLF advances during the three months ended March 31, 2021. PPP loan fees recognized during the three months ended March 31, 2021, were $2.5 million. Net unearned PPP loan fees outstanding at March 31, 2021, and December 31, 2020, were $5.7 million and $4.3 million, respectively. Debt Service Relief Requests Related to COVID-19 As a result of the COVID-19 pandemic the Company has 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. As of March 31, 2021, the Company has approved $199.8 million in payment relief modifications that were granted under the CARES Act guidance associated with the treatment of TDRs. Since the inception of the CARES Act, one loan was downgraded to non-performing in the amount of $1.3 million, and one loan remains on payment relief with an outstanding balance of $0.4 million. These loans remain under the exemption from TDR classification as provided for in the CARES Act. All other loans that were provided payment relief have either been reinstated to their original payment terms or paid off. To manage credit risk, the Company increased oversight and analysis of loans to borrowers in vulnerable industries, such as hotels and hospitality. As of March 31, 2021, these hotels and hospitality loans have a balance of $59.2 million. As of March 31, 2021, $32.2 million of these hotels and hospitality loans were provided payment relief consistent with Section 4013 of the CARES Act and the interagency guidelines published on March 13, 2020. As of March 31, 2021, all loans in this segment have been reinstated and returned to normal payment schedules.

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2021
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 months ended March 31, 2021, and year ended December 31, 2020: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 323 11 700 16 (12) 1,038 Loans charged-off - - (7,641) - - (7,641) Recoveries - - - - - - Total ending allowance balance $ 3,482 $ 2,188 $ 3,521 $ 404 $ 61 $ 9,656 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 685 $ — $ — $ 685 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 3,482 2,188 2,836 404 61 8,971 Total ending allowance balance $ 3,482 $ 2,188 $ 3,521 $ 404 $ 61 $ 9,656 Loans: Loans individually evaluated for impairment $ 2,326 $ 272 $ 1,468 $ — $ 1,307 $ 5,373 Loans collectively evaluated for impairment 818,139 368,962 441,564 93,302 11,256 1,733,223 Total ending loans balance $ 820,465 $ 369,234 $ 443,032 $ 93,302 $ 12,563 $ 1,738,596 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,356 $ 298 $ 9,127 $ — $ 1,307 $ 13,088 Loans collectively evaluated for impairment 775,420 380,193 387,515 99,883 10,381 1,653,392 Total ending loans balance $ 777,776 $ 380,491 $ 396,642 $ 99,883 $ 11,688 $ 1,666,480

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2021
DEPOSITS.
Deposits	NOTE 6 — DEPOSITS The Company’s total deposits are comprised of the following at the dates indicated: For the Three Months Ended For the Year Ended March 31, 2021 December 31, 2020 Ending Ending (Dollars in thousands) Balance % of Total Balance % of Total NOW accounts $ 64,317 3.4 % $ 60,995 3.7 % Money market accounts 979,742 51.4 % 865,625 52.2 % Savings accounts 23,471 1.2 % 20,750 1.3 % Certificates of deposit 248,759 13.1 % 236,575 14.3 % Total interest-bearing deposits 1,316,289 69.1 % 1,183,945 71.3 % Noninterest-bearing deposits 589,415 30.9 % 475,598 28.7 % Total deposits $ 1,905,704 100.0 % $ 1,659,543 100.0 % The following table presents the maturities of our insured time deposits that meet or exceed the $250,000 FDIC insurance limit as of March 31, 2021 . Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits under $250,000 $ 13,944 $ 15,481 $ 24,613 $ 29,207 $ 83,245 Time deposits over $250,000 36,553 22,484 51,806 54,671 165,514 Total $ 50,497 $ 37,965 $ 76,419 $ 83,878 $ 248,759 The following tables present the maturities of our insured time deposits that meet or exceed the $250,000 FDIC insurance limit as of December 31, 2020 . Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits under $250,000 $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits over $250,000 40,189 35,314 42,844 40,158 158,505 Total $ 60,956 $ 48,572 $ 67,649 $ 59,398 $ 236,575 As of March 31, 2021, and December 31, 2020, the Company had time deposits that meet or exceed the $250,000 FDIC insurance limit of $165.5 million and $158.5 million, respectively. Securities, mortgage loans or other financial instruments pledged as collateral for certain deposits was $53.7 million, and $54.7 million at March 31, 2021, and December 31, 2020, respectively. The aggregate amount of demand deposits that have been re-classified as loan balances at March 31, 2021, and December 31, 2020, were $0.4 million, and $0.1 million, respectively. Deposits from principal officers, directors and their affiliates at March 31, 2021, and December 31, 2020, were $12.9 million, and $12.1 million, respectively. For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. March 31, 2021 December 31, 2020 Less than 1 year $ 164,882 $ 177,178 Over 1 through 2 years 82,460 57,034 Over 2 through 3 years 1,293 1,658 Over 3 through 4 years 124 705 Over 4 through 5 years - - Over 5 years - - Total $ 248,759 $ 236,575 Banks are required to maintain cash reserves in the form of vault cash or in an account with the Federal Reserve Bank or in noninterest-earning accounts with other qualified banks. This requirement is based on the Bank’s amount of transaction deposit accounts. Due to the amount of transaction deposit accounts, the Bank was not required to have cash reserve requirements at March 31, 2021, and December 31, 2020. Additionally, the Company had $98.8 million and $98.9 million, in Qualified Public Deposits (“QPD”) that require collateral pledged as of March 31, 2021, and December 31, 2020.

DEBT

DEBT	3 Months Ended
	Mar. 31, 2021
DEBT
DEBT	NOTE 7 — DEBT Subordinated Debt . On March 26, 2020, pursuant to terms of the acquisition, the Company assumed the subordinated notes payable of Marquis Bancorp, Inc. (“MBI”) at its fair value of $10.3 million. According to the terms of the subordinated note, the principal amount due is $10.0 million with a 7% fixed rate until October 30, 2021, and a variable rate thereafter at LIBOR plus 576 basis points. The note matures on October 30, 2026, and can be redeemed by the Company anytime on or after October 30, 2021. The subordinated debt was fair valued at a discount of $0.5 million and is being amortized over the expected life. Valley National Line of Credit . On December 19, 2019, the Company entered into a new $10.0 million secured revolving line of credit with Valley National Bank, N.A. Amounts drawn under this line of credit bears interest at the Prime Rate, as announced by The Wall Street Journal from time to time as its prime rate, and its obligations under this line of credit are secured by shares of the capital stock of the Bank, which we have pledged as security. On January 7, 2021, (the “Closing Date”) the Company and Valley National Bank entered an amendment, which among other things, extended the maturity date of the note to March 19, 2021. No other material terms of the note changed. The principal balance outstanding pursuant to the note on the Closing Date was $0 . As further described in Note 17 - Subsequent Events, after the quarter ended March 31, 2021, the Company and Valley National Bank entered into an extension agreement, which among other things, extended the maturity date of the note to March 1, 2022.

BORROWINGS

BORROWINGS	3 Months Ended
	Mar. 31, 2021
BORROWINGS
BORROWINGS	NOTE 8 — BORROWINGS The Company uses short-term and long-term borrowings to supplement deposits to fund lending and investment activities. FHLB Advances. The FHLB allows the Company to borrow up to 25% of its assets on a blanket floating lien status collateralized by certain securities and loans. As of March 31, 2021, approximately $285.1 million in loans were pledged as collateral for our FHLB borrowings. We utilize these borrowings to meet liquidity needs and to fund certain fixed rate loans in our portfolio. As of March 31, 2021, we had $40.0 million in outstanding advances and $120.6 million in additional available borrowing capacity from the FHLB based on the collateral that we have currently pledged. The following table sets forth certain information on our FHLB borrowings during the periods presented. Three Months Ended Year Ended (Dollars in thousands) March 31, 2021 December 31, 2020 Amount outstanding at period-end $ 40,000 $ 40,000 Weighted average interest rate at period-end 1.96 % 1.96 % Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 40,000 58,210 Weighted average interest rate during period 1.96 % 1.63 % Federal Reserve Bank of Atlanta . The Federal Reserve Bank of Atlanta has an available borrower in custody arrangement which allows us to borrow on a collateralized basis. No advances were outstanding under this facility as of March 31, 2021 . PPPLF Advances . The Company initially funded PPP loans with the PPPLF. Most of the PPP loans were initially pledged to the Federal Reserve as part of the PPPLF. The PPPLF pledged loans are non-recourse to the Company. In addition, we paid off approximately $74.6 million in PPPLF advances during the three months ended March 31, 2021.

COMMON STOCK AND PREFERRED STOC

COMMON STOCK AND PREFERRED STOCK	3 Months Ended
	Mar. 31, 2021
COMMON STOCK AND PREFERRED STOCK
COMMON STOCK AND PREFERRED STOCK	NOTE 9 — COMMON STOCK AND PREFERRED STOCK Class A Voting Common Stock The Company has Class A voting common stock with a par value of $0.01 per share. As of March 31, 2021, there are 50,000,000 shares authorized as Class A voting common stock of which 13,661,567 are outstanding. During the three months ended March 31, 2021, the Company issued 184,427 shares of Class A voting common stock, inclusive of 127,499 shares of restricted stock grants, 56,055 shares of options exercised, and 873 shares pursuant to the employee stock purchase program. During the three months ended March 31, 2021, the Company repurchased 54,479 shares of Class A common stock. Further, during the same three month period, upon the vesting of a portion of restricted stock, employees of the Company elected to have 3,210 shares of Class A common voting stock withheld for tax purposes. Class B Non-voting Common Stock The Company has Class B non-voting common stock with a par value of $0.01 per share. As of March 31, 2021, there are 10,000,000 shares authorized as Class B non-voting common stock, none of which are outstanding. Preferred Stock The Company has 10,000,000 shares of undesignated and unissued preferred stock.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2021
FAIR VALUE.
FAIR VALUE	NOTE 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: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Securities available for sale: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations, corporate bonds, municipal bonds and U.S. agency notes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 might include certain residual interests in securitizations and other less liquid securities. As of March 31, 2021 and December 31, 2020, all securities available for sale were Level 2. Securities held-to-maturity: Reported at fair value utilizing level 2 inputs. The estimated fair value is determined based on market quotes when available. If not available, quoted market prices of similar securities, discounted cash flow analysis, pricing models and observable market data are used in determining fair market value. Equity securities: The Company values equity securities at readily determinable market values based on the closing price at the end of each period. Changes in fair value are recognized through net income. Loans: Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type, such as commercial or residential mortgage. Each loan category is further segmented into fixed and adjustable rate interest terms as well as performing and non-performing categories. The fair value of loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations and estimated market discount rates that reflect the risks inherent to the loan. The calculation of the fair value considers market driven variables including credit related factors and reflects an exit price as defined in ASC Topic 820. Federal Home Loan Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Federal Reserve Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values. Deposits: The fair values disclosed for demand, NOW, money-market and savings deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate time deposits are estimated using a current market rates offered for remaining or similar maturities. Federal Home Loan Bank advances: Fair values are estimated using discounted cash flow analysis based on the Bank’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance-sheet instruments: Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis, are summarized below: Fair Value Measurements at March 31, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2021 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 28,882 $ — $ 28,882 $ — Mortgage-backed securities 24,074 — 24,074 — United States agency obligations 2,100 — 2,100 — Corporate bonds 2,011 — 2,011 — Total $ 57,067 $ — $ 57,067 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,253 $ — $ 21,253 $ — Municipals 1,088 — 1,088 — Total $ 22,341 $ — $ 22,341 $ — Equity Mutual funds $ 5,914 $ 5,914 $ — $ — Total $ 5,914 $ 5,914 $ — $ — Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 28,882 $ — $ 28,882 $ — Mortgage-backed securities 24,074 — 24,074 — United States agency obligations 2,100 — 2,100 — Corporate bonds 2,011 — 2,011 — Total $ 57,067 $ — $ 57,067 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,253 $ — $ 21,253 $ — Municipals 1,088 — 1,088 — Total $ 22,341 $ — $ 22,341 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ — There were no securities reclassified into or out of Level 3 during the three months ended March 31, 2021, or for the year ended December 31, 2020. Impaired loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Specifically, regarding the Coex loan, the carrying amount of the loan for impairment purposes was determined based on the note outstanding balance at March 31, 2021, less the non-recourse amount sold to our participant, yielding a carrying value of $0.6 million. The fair value of the collateral was determined based on a review of information obtained from the Assignee related to the collectability of the collateral adjusted for legal and disposition costs. When netted in the same percentage as the non-recourse portion of the loan, the net fair value of collateral was noted as $0.6 million. The net result of these calculations provides for no specific reserve within the Allowance for Loan and Lease Losses (“ALLL”) associated with the Coex loan or approximately 0% of the carrying value of the loan. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at March 31, 2021 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable March 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 783 — — 783 (685) Construction and land development — — — — — Consumer and other — — — — — Total $ 783 $ — $ — $ 783 $ (685) Fair Value Measurements at December 31, 2020 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) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309) 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 Company’s financial instruments (in thousands): March 31, 2021 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 279,810 $ 279,810 Level 1 Federal Funds Sold 43,919 43,919 Level 1 Securities, Available for Sale - taxable 57,769 65,862 Level 2 Securities, Available for Sale - tax exempt 21,639 21,646 Level 2 Securities, Held to Maturity 1,515 1,528 Level 2 Securities, Equity 5,914 5,914 Level 1 Loans, net 1,717,671 1,744,538 Level 3 Loans held for sale 3,608 3,718 Level 1 Accrued Interest Receivable 6,511 6,511 Level 1, 2 & 3 Financial Liabilities: Deposits 1,905,704 1,886,236 Level 2 Federal Home Loan Bank Advances 40,000 38,726 Level 2 Subordinated Debt 10,108 10,108 Level 2 PPPLF Advances 26,731 26,731 Level 2 Loan Participations 13,947 13,947 Level 2 Derivative SWAP 3,073 3,073 Level 2 Accrued Interest Payable 362 362 Level 2 December 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale 87,508 87,508 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,644,643 1,654,671 Level 3 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2021
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	NOTE 11 — DERIVATIVE INSTRUMENTS During the quarter ended March 31, 2021, the Company established a program whereby it originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an offsetting swap with a swap dealer. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. For the three months ended March 31, 2021, the Company recorded one swap transaction for $2.1 million and recorded $28,108 in swap fees. The fair value of these derivatives is based on a market standard discounted cash flow approach. The Company incorporates credit value adjustments on derivatives to properly reflect the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. Given that the one swap closed near the end of the quarter, the Company has determined that the fair value of these derivative contracts fall within Level 1 of the fair value hierarchy which means the fair value is the same as cost.

LOAN COMMITMENTS AND OTHER RELA

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES	3 Months Ended
	Mar. 31, 2021
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES	NOTE 12 — LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at March 31, 2021, and December 31, 2020, were as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 Unfunded lines of credit $ 372,561 $ 356,955 Commitments to extend credit 74,485 40,629 Letters of credit 11,280 13,036 Total credit extension commitments $ 458,326 $ 410,620

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	3 Months Ended
	Mar. 31, 2021
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS	NOTE 13 — REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for United States banks (Basel III rules) became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for March 31, 2021, is 2.50% and for December 31, 2020, was 2.50%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of March 31, 2021, the Bank met all capital adequacy requirements to which it was subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At March 31, 2021, and December 31, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. Actual and required capital amounts and ratios are presented below at March 31, 2021, and December 31, 2020. The required amounts for capital adequacy shown below do not include the capital conservation buffer previously discussed. Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2021 Total capital ratio Bank $ 176,109 11.6 % $ 121,626 8.0 % $ 152,032 10.0 % Company 214,223 14.1 % 121,626 8.0 % N/A N/A Tier 1 capital ratio Bank 165,392 10.9 % 91,219 6.0 % 121,626 8.0 % Company 193,399 12.7 % 91,219 6.0 % N/A N/A Tier1 leverage ratio Bank 165,392 8.2 % 80,292 4.0 % 100,365 5.0 % Company 193,399 9.6 % 80,292 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 165,392 10.9 % 68,415 4.5 % 98,821 6.5 % Company 193,399 12.7 % 68,415 4.5 % N/A N/A Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0 % $ 117,298 8.0 % $ 146,623 10.0 % Company 215,977 14.7 % 117,298 8.0 % N/A N/A Tier 1 capital ratio Bank 159,448 10.9 % 87,974 6.0 % 117,298 8.0 % Company 188,639 12.9 % 87,974 6.0 % N/A N/A Tier1 leverage ratio Bank 159,448 8.4 % 75,723 4.0 % 94,654 5.0 % Company 188,639 10.0 % 75,723 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9 % 65,980 4.5 % 95,305 6.5 % Company 188,639 12.9 % 65,980 4.5 % N/A N/A

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2021
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 14 — STOCK BASED COMPENSATION Restricted Stock An award of restricted stock involves the immediate transfer by the Company to the participant of a specific number of shares of our Class A voting common stock, which are subject to a risk of forfeiture and a restriction on transferability. This restriction will lapse following a stated period of time. The participant does not pay for the restricted stock and has all of the rights of a holder of a share of our Class A voting common stock (except for the restriction on transferability), including the right to vote and receive dividends unless otherwise determined by the Compensation Committee and set forth in the award agreement. The Company has limited the aggregate number of shares of our Class A voting common stock to be awarded under the 2019 Equity Incentive Plan as restricted stock to 300,000 shares. The Company has 224,176 shares of restricted stock outstanding, at a weighted average exercise price of $16.82, to employees and directors under the 2019 Equity Incentive Plan as of March 31, 2021, for which the Company did not receive, nor will it receive, any monetary consideration. Therefore, there were 75,824 restricted shares available to be issued at March 31, 2021. As of March 31, 2021, there was approximately $3.3 million in unrecognized compensation expense in regard to restricted stock that will be recognized over a three year period.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2021
LEASES
LEASES	NOTE 15 — 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 did not record new ROU during the three months ended March 31, 2021, and recorded $2.0 million during the year ended December 31, 2020. The total amount of ROU was $5.9 and $6.5 million at March 31, 2021, and December 31, 2020, respectively. The Company leases certain properties and equipment under operating leases that resulted in the recognition of ROU Lease Assets of $5.7 million and Lease Liabilities of $6.0 million on the Company’s Condensed Consolidated Balance Sheets as of January 1, 2019. ASC 842 was effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company chose to use the adoption date of January 1, 2019, for ASC 842. As such, all periods presented after January 1, 2019, are under ASC 842 whereas periods presented prior to January 1, 2019, are in accordance with prior lease accounting of ASC 840. Financial information was not updated and the disclosures required under ASC 842 was not provided for dates and periods before January 1, 2019. ASC 842 provides a number of optional practical expedients in transition. The Company has elected the package of practical expedients, which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the use of the hindsight, a practical expedient which permits the use of information available after lease inception to determine the lease term via the knowledge of renewal options exercised not available as of the leases inception. The practical expedient pertaining to land easements is not applicable to the Company. ASC 842 also requires certain accounting elections for ongoing application of ASC 842. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. However, since these non-lease items are subject to change, they are treated and disclosed as variable payments in the quantitative disclosures below. Consequently, ASC 842’s changed guidance on contract components will not significantly affect our financial reporting. Similarly, ASC 842’s narrowed definition of initial direct costs will not significantly affect financial reporting. Lessee Leases The majority of the Company’s lessee leases are operating leases and consist of leased real estate for branches and operations centers. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Variable payments generally consist of common area maintenance and taxes. Rent escalations are generally specified by a payment schedule or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. ASC 842 requires the use of the lease interest rate; however, this rate is typically not known. As an alternative, ASC 842 permits the use of an entity’s fully secured incremental borrowing rate. The Company is electing to utilize the Federal Home Loan Bank FHLB Atlanta Fixed Rate Advance index, as it is the most actively used institution-specific collateralized borrowing source available to the Company. Lease cost for the three months ended March 31, 2021 and 2020 consists of: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating Lease and Interest Cost $ 467 $ 311 Variable Lease Cost 117 107 Total Lease Cost $ 584 $ 418 The following table provides supplemental information related to leases for the three months ended March 31, 2021 and 2020: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 467 $ 311 Operating Lease - Operating Cash Flows (Liability Reduction) $ 625 $ 253 New ROU Assets - Operating Leases $ — $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.50 5.90 Weighted Average Discount Rate - Operating Leases 3.16 % 2.82 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of March 31, 2021 is as follows: March 31, 2021 Operating lease payments due: Within one year $ 1,343 After one but within two years 1,351 After two but within three years 1,336 After three but within four years 1,111 After four years but within five years 1,015 After five years 922 Total undiscounted cash flows 7,078 Discount on cash flows (1,202) Total operating lease liabilities $ 5,876 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 terminated 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 was amortized through the end of the lease in March 2021.

BUSINESS COMBINATION

BUSINESS COMBINATION	3 Months Ended
	Mar. 31, 2021
BUSINESS COMBINATION
BUSINESS COMBINATION	NOTE 16 — BUSINESS COMBINATION Acquisition of Marquis Bancorp, Inc. On March 26, 2020, the Company closed its acquisition of 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 stockholders 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 the Company’s 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 $0.7 and $1.7 million are included in non-interest expense in the Company’s income statement for the three months ended March 31, 2021, and 2020, 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 fair value of options included a measurement period adjustment to incorporate the fair value of options using the Black Scholes method. The acquisition of MBI was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations . Goodwill of $24.6 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 were finalized during the fourth quarter of 2020. Determining the fair values of assets and liabilities, especially the loan portfolio, core deposit intangibles, goodwill and time deposits was 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 and final fair values of the assets acquired, and liabilities assumed at the date of the MBI acquisition, net of total consideration paid: Adjusted (In thousands, except per share data) Fair Value 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 5,729 Fair value of total consideration transferred $ 70,035 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 515,304 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 1,646 Other assets 9,143 Total assets acquired 583,797 Deposits 498,110 Federal Home Loan Bank advances 25,103 Subordinated notes payable 10,285 Accrued interest payable 610 Other liabilities 4,275 Total liabilities assumed 538,383 Total identifiable net assets 45,414 Goodwill $ 24,621 Acquired loans are initially recorded at their acquisition-date fair values using Level 3 inputs. Refer to Note 10, 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 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 recorded balance, prior to fair value adjustments, of $539.9 million. 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. The fair value of purchased financial assets with credit deterioration was $4.6 million on the date of acquisition. The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $8.8 million. The Company estimated, on the date of acquisition, that $3.6 million of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected. 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 $3.5 million represented the present value of expected cash flows at market participant discount rates in accordance with ASC 310-30. The accretable discount will be recognized on a level yield basis. 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. Fair value adjustments related to loans acquired without evidence of credit deterioration are recognized as interest income over the expected life of the loans. 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 $1.6 million and is being 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 fair value adjustment of $2.8 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 fair value adjustment was $0.1 million and is being amortized over the remaining life of the advances. The fair value of subordinated debt was determined by using a discounted cash flow method using a market participant discount rate for similar instruments. The subordinated debt was fair valued at a premium of $0.5 million and is being 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 $5.4 million related to MBI’s effects of fair value adjustments resulting from applying the purchase method of accounting.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2021
SUBSEQUENT EVENTS.
SUBSEQUENT EVENTS	NOTE 17 — SUBSEQUENT EVENTS Pro Opp Fund LLC On April 8, 2021, PFHD formed a separately capitalized subsidiary, Pro Opp Fund LLC. PFHD intends to use Pro Opp Fund LLC to make direct investments into a broad range of businesses indirectly, directly, or tangentially related to its core business as permitted under the U.S. Bank Holding Company Act. Pro Opp Fund LLC has initiated its evaluation of a number of potential investments and will invest accordingly subject to its due diligence review and analysis. Valley National Line of Credit Extension On May 10, 2021, the Company and Valley National Bank, entered into an extension agreement, which, among other things, extended the maturity date of the note to March 1, 2022. No other material terms of the note changed. The principal balance outstanding pursuant to the note on May 10, 2021, was $0.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, 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, 2020.
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.
Adoption of new accounting standards	Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020‑04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020, and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. 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 small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating 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)	3 Months Ended
	Mar. 31, 2021
EARNINGS PER SHARE
Schedule of Basic and Diluted Earnings per share	Three Months Ended March 31, 2021 2020 Basic earnings per share: Net income (loss) $ 4,785 $ (1,317) Total weighted average common stock outstanding 13,442,359 9,617,986 Net income (loss) per share $ 0.36 $ (0.14) Diluted earnings per share: Net income (loss) $ 4,785 $ (1,317) Total weighted average common stock outstanding 13,442,359 9,617,986 Add: Dilutive effect of employee stock options 478,915 - Total weighted average diluted stock outstanding 13,921,274 9,617,986 Net income (loss) per share $ 0.34 $ (0.14)

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2021
SECURITIES
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity	Gross Gross Amortized Unrealized Unrealized March 31, 2021 Cost Gains Losses Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 29,008 $ 46 $ (172) $ 28,882 Mortgage-backed securities 23,880 291 (97) 24,074 United States agency obligations 2,000 100 - 2,100 Corporate bonds 2,000 11 - 2,011 Total available-for-sale - taxable $ 56,888 $ 448 $ (269) $ 57,067 Available-for-sale - tax exempt Community Development District bonds $ 20,579 $ 674 $ - $ 21,253 Municipals 1,060 28 - 1,088 Total available-for-sale - tax exempt $ 21,639 $ 702 $ - $ 22,341 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 314 $ 13 $ — $ 327 United States Treasury 201 — — 201 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,515 $ 13 $ — $ 1,528 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 - 3,122 Corporate bonds 2,501 9 - 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ - $ 21,299 Municipals 1,064 35 - 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ - $ 22,398 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561
Scheduled maturities of securities	March 31, 2021 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 1,497 $ 1,520 Due after one year through five years 22,898 23,646 Due after five years through ten years 929 963 Due after ten years 315 323 Subtotal $ 25,639 $ 26,452 Small Business Administration loan pools $ 29,008 $ 28,882 Mortgage-backed securities 23,880 24,074 Total available-for-sale $ 78,527 $ 79,408 Held-to-maturity Due in one year or less $ 1,201 $ 1,201 Due after one year through five years — — Subtotal $ 1,201 $ 1,201 Mortgage-backed securities $ 314 $ 327 Total held-to-maturity $ 1,515 $ 1,528
Summary of securities with unrealized losses by major security type and length of time in a continuous unrealized loss position	Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 2,159 $ (42) $ 17,493 $ (130) $ 19,652 $ (172) Mortgage-backed securities 5,099 (97) — — 5,099 (97) United States agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale - taxable $ 7,258 $ (139) $ 17,493 $ (130) $ 24,751 $ (269) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Corporate bonds — — — — — — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ —

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2021
LOANS
Summary of loans	Loans at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Commercial real estate $ 820,465 $ 777,776 Residential real estate 369,234 380,491 Commercial 443,032 396,642 Construction and land development 93,302 99,883 Consumer and other 12,563 11,688 Total loans 1,738,596 1,666,480 Unearned loan origination (fees) costs, net (1,489) (1,323) Unearned PPP loan origination (fees) costs, net (5,708) (4,255) Allowance for loan loss (9,656) (16,259) Loans, net (1) $ 1,721,743 $ 1,644,643 (1) Does not include loan control, loan participation control or loans in process.
Schedule of aging of the recorded investment in past due loans	The following table presents the aging of the recorded investment in past due loans as of March 31, 2021, and December 31, 2020, by class of loans: 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total March 31, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 820,465 $ 820,465 Residential real estate 611 — — — 611 368,623 369,234 Commercial — — — 1,468 1,468 441,564 443,032 Construction and land development — — — — — 93,302 93,302 Consumer and other 97 — — 1,307 1,404 11,159 12,563 Total $ 708 $ — $ — $ 2,775 $ 3,483 $ 1,735,113 $ 1,738,596 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, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,776 $ 777,776 Residential real estate 1,303 — — — 1,303 379,188 380,491 Commercial 278 — — 9,127 9,405 387,237 396,642 Construction and land development — — — — — 99,883 99,883 Consumer and other — — — 1,307 1,307 10,381 11,688 Total $ 1,581 $ — $ — $ 10,434 $ 12,015 $ 1,654,465 $ 1,666,480
Summary of analysis performed, the risk category of loans by class of loans	Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (Dollars in thousands) Pass Mention Substandard Doubtful Total March 31, 2021 Commercial real estate $ 818,139 $ — $ 2,326 $ — $ 820,465 Residential real estate 369,234 — — — 369,234 Commercial 441,111 453 1,468 — 443,032 Construction and land development 93,302 — — — 93,302 Consumer 11,256 — 1,307 — 12,563 Total $ 1,733,042 $ 453 $ 5,101 $ — $ 1,738,596 December 31, 2020 Commercial real estate $ 775,420 $ — $ 2,356 $ — $ 777,776 Residential real estate 380,062 429 — — 380,491 Commercial 387,403 112 9,127 — 396,642 Construction and land development 99,883 — — — 99,883 Consumer 10,381 — 1,307 — 11,688 Total $ 1,653,149 $ 541 $ 12,790 $ — $ 1,666,480
Schedule of Purchased Credit Impaired loans at carrying amount	The carrying amount of those loans is as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 Residential real estate $ 405 $ 405 Commercial 678 746 Construction and development 5,555 3,732 Carrying amount, net of total discounts $ 6,638 $ 4,883
Rollforward of Accretable yield, or income expected to be collected	Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the three months ended March 31, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 89 Reclassifications from nonaccretable difference — Disposals — Balance at end of period $ (541)
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 on March 26, 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 $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans - Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans - Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2021
ALLOWANCE FOR LOAN LOSSES
Schedule of allowance for loan losses by portfolio segment	for the three months ended March 31, 2021, and year ended December 31, 2020: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 323 11 700 16 (12) 1,038 Loans charged-off - - (7,641) - - (7,641) Recoveries - - - - - - Total ending allowance balance $ 3,482 $ 2,188 $ 3,521 $ 404 $ 61 $ 9,656 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259
Summary of loans by portfolio segment and impairment method	Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total March 31, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 685 $ — $ — $ 685 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 3,482 2,188 2,836 404 61 8,971 Total ending allowance balance $ 3,482 $ 2,188 $ 3,521 $ 404 $ 61 $ 9,656 Loans: Loans individually evaluated for impairment $ 2,326 $ 272 $ 1,468 $ — $ 1,307 $ 5,373 Loans collectively evaluated for impairment 818,139 368,962 441,564 93,302 11,256 1,733,223 Total ending loans balance $ 820,465 $ 369,234 $ 443,032 $ 93,302 $ 12,563 $ 1,738,596 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,356 $ 298 $ 9,127 $ — $ 1,307 $ 13,088 Loans collectively evaluated for impairment 775,420 380,193 387,515 99,883 10,381 1,653,392 Total ending loans balance $ 777,776 $ 380,491 $ 396,642 $ 99,883 $ 11,688 $ 1,666,480

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2021
DEPOSITS.
Schedule of deposits	The Company’s total deposits are comprised of the following at the dates indicated: For the Three Months Ended For the Year Ended March 31, 2021 December 31, 2020 Ending Ending (Dollars in thousands) Balance % of Total Balance % of Total NOW accounts $ 64,317 3.4 % $ 60,995 3.7 % Money market accounts 979,742 51.4 % 865,625 52.2 % Savings accounts 23,471 1.2 % 20,750 1.3 % Certificates of deposit 248,759 13.1 % 236,575 14.3 % Total interest-bearing deposits 1,316,289 69.1 % 1,183,945 71.3 % Noninterest-bearing deposits 589,415 30.9 % 475,598 28.7 % Total deposits $ 1,905,704 100.0 % $ 1,659,543 100.0 %
Schedule of maturities of our time deposits that meet or exceed the $250,000 FDIC insurance limit	The following table presents the maturities of our insured time deposits that meet or exceed the $250,000 FDIC insurance limit as of March 31, 2021 . Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits under $250,000 $ 13,944 $ 15,481 $ 24,613 $ 29,207 $ 83,245 Time deposits over $250,000 36,553 22,484 51,806 54,671 165,514 Total $ 50,497 $ 37,965 $ 76,419 $ 83,878 $ 248,759 The following tables present the maturities of our insured time deposits that meet or exceed the $250,000 FDIC insurance limit as of December 31, 2020 . Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits under $250,000 $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits over $250,000 40,189 35,314 42,844 40,158 158,505 Total $ 60,956 $ 48,572 $ 67,649 $ 59,398 $ 236,575
Scheduled maturities of time deposits	For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. March 31, 2021 December 31, 2020 Less than 1 year $ 164,882 $ 177,178 Over 1 through 2 years 82,460 57,034 Over 2 through 3 years 1,293 1,658 Over 3 through 4 years 124 705 Over 4 through 5 years - - Over 5 years - - Total $ 248,759 $ 236,575

BORROWINGS (Tables)

BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2021
BORROWINGS
Schedule of Advances from the Federal Home Loan Bank	The following table sets forth certain information on our FHLB borrowings during the periods presented. Three Months Ended Year Ended (Dollars in thousands) March 31, 2021 December 31, 2020 Amount outstanding at period-end $ 40,000 $ 40,000 Weighted average interest rate at period-end 1.96 % 1.96 % Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 40,000 58,210 Weighted average interest rate during period 1.96 % 1.63 %

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2021
FAIR VALUE.
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Fair Value Measurements at March 31, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs March 31, 2021 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 28,882 $ — $ 28,882 $ — Mortgage-backed securities 24,074 — 24,074 — United States agency obligations 2,100 — 2,100 — Corporate bonds 2,011 — 2,011 — Total $ 57,067 $ — $ 57,067 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,253 $ — $ 21,253 $ — Municipals 1,088 — 1,088 — Total $ 22,341 $ — $ 22,341 $ — Equity Mutual funds $ 5,914 $ 5,914 $ — $ — Total $ 5,914 $ 5,914 $ — $ — Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 28,882 $ — $ 28,882 $ — Mortgage-backed securities 24,074 — 24,074 — United States agency obligations 2,100 — 2,100 — Corporate bonds 2,011 — 2,011 — Total $ 57,067 $ — $ 57,067 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,253 $ — $ 21,253 $ — Municipals 1,088 — 1,088 — Total $ 22,341 $ — $ 22,341 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ —
Schedule of Assets Measured at Fair Value on a Non-recurring Basis	Fair Value Measurements at March 31, 2021 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable March 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 783 — — 783 (685) Construction and land development — — — — — Consumer and other — — — — — Total $ 783 $ — $ — $ 783 $ (685) Fair Value Measurements at December 31, 2020 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) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309)
Schedule of carrying amount and estimated fair value of the Bank’s financial instruments	March 31, 2021 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 279,810 $ 279,810 Level 1 Federal Funds Sold 43,919 43,919 Level 1 Securities, Available for Sale - taxable 57,769 65,862 Level 2 Securities, Available for Sale - tax exempt 21,639 21,646 Level 2 Securities, Held to Maturity 1,515 1,528 Level 2 Securities, Equity 5,914 5,914 Level 1 Loans, net 1,717,671 1,744,538 Level 3 Loans held for sale 3,608 3,718 Level 1 Accrued Interest Receivable 6,511 6,511 Level 1, 2 & 3 Financial Liabilities: Deposits 1,905,704 1,886,236 Level 2 Federal Home Loan Bank Advances 40,000 38,726 Level 2 Subordinated Debt 10,108 10,108 Level 2 PPPLF Advances 26,731 26,731 Level 2 Loan Participations 13,947 13,947 Level 2 Derivative SWAP 3,073 3,073 Level 2 Accrued Interest Payable 362 362 Level 2 December 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale 87,508 87,508 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,644,643 1,654,671 Level 3 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2

LOAN COMMITMENTS AND OTHER RE_2

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables)	3 Months Ended
	Mar. 31, 2021
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES
Schedule of contractual amounts of financial instruments with off-balance-sheet risk	(Dollars in thousands) March 31, 2021 December 31, 2020 Unfunded lines of credit $ 372,561 $ 356,955 Commitments to extend credit 74,485 40,629 Letters of credit 11,280 13,036 Total credit extension commitments $ 458,326 $ 410,620

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	3 Months Ended
	Mar. 31, 2021
REGULATORY CAPITAL MATTERS
Schedule of compliance with regulatory capital requirements	Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2021 Total capital ratio Bank $ 176,109 11.6 % $ 121,626 8.0 % $ 152,032 10.0 % Company 214,223 14.1 % 121,626 8.0 % N/A N/A Tier 1 capital ratio Bank 165,392 10.9 % 91,219 6.0 % 121,626 8.0 % Company 193,399 12.7 % 91,219 6.0 % N/A N/A Tier1 leverage ratio Bank 165,392 8.2 % 80,292 4.0 % 100,365 5.0 % Company 193,399 9.6 % 80,292 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 165,392 10.9 % 68,415 4.5 % 98,821 6.5 % Company 193,399 12.7 % 68,415 4.5 % N/A N/A Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0 % $ 117,298 8.0 % $ 146,623 10.0 % Company 215,977 14.7 % 117,298 8.0 % N/A N/A Tier 1 capital ratio Bank 159,448 10.9 % 87,974 6.0 % 117,298 8.0 % Company 188,639 12.9 % 87,974 6.0 % N/A N/A Tier1 leverage ratio Bank 159,448 8.4 % 75,723 4.0 % 94,654 5.0 % Company 188,639 10.0 % 75,723 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9 % 65,980 4.5 % 95,305 6.5 % Company 188,639 12.9 % 65,980 4.5 % N/A N/A

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2021
LEASES
Schedule of lease cost	Lease cost for the three months ended March 31, 2021 and 2020 consists of: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating Lease and Interest Cost $ 467 $ 311 Variable Lease Cost 117 107 Total Lease Cost $ 584 $ 418
Schedule of supplemental information related to leases	The following table provides supplemental information related to leases for the three months ended March 31, 2021 and 2020: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 467 $ 311 Operating Lease - Operating Cash Flows (Liability Reduction) $ 625 $ 253 New ROU Assets - Operating Leases $ — $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.50 5.90 Weighted Average Discount Rate - Operating Leases 3.16 % 2.82 %
Schedule of maturity analysis of operating lease liabilities	March 31, 2021 Operating lease payments due: Within one year $ 1,343 After one but within two years 1,351 After two but within three years 1,336 After three but within four years 1,111 After four years but within five years 1,015 After five years 922 Total undiscounted cash flows 7,078 Discount on cash flows (1,202) Total operating lease liabilities $ 5,876

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	3 Months Ended
	Mar. 31, 2021
BUSINESS COMBINATION
Schedule of MBI and the estimated fair values of the assets acquired	Adjusted (In thousands, except per share data) Fair Value 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 5,729 Fair value of total consideration transferred $ 70,035 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 515,304 Premises and equipment 824 Accrued interest receivable 1,525 Core deposit intangibles 1,646 Other assets 9,143 Total assets acquired 583,797 Deposits 498,110 Federal Home Loan Bank advances 25,103 Subordinated notes payable 10,285 Accrued interest payable 610 Other liabilities 4,275 Total liabilities assumed 538,383 Total identifiable net assets 45,414 Goodwill $ 24,621

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic earnings per share:
Net Income (loss)	$ 4,785	$ (1,317)
Total weighted average common stock outstanding	13,442,359	9,617,986
Net income (loss) per share	$ 0.36	$ (0.14)
Diluted earnings per share:
Net Income (loss)	$ 4,785	$ (1,317)
Total weighted average common stock outstanding	13,442,359	9,617,986
Add: Dilutive effect of employee stock options	478,915
Total weighted average diluted stock outstanding	13,921,274	9,617,986
Net income (loss) per share	$ 0.34	$ (0.14)
Stock options
Diluted earnings per share:
Anti-dilutive Stock Options	403,000	560,000

SECURITIES - Unrealized Gains A

SECURITIES - Unrealized Gains And Losses - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Held-to-Maturity
Amortized Cost, HTM	$ 1,515		$ 1,547
Gross Unrealized Gains, HTM	13		14
Fair Value, HTM	1,528		1,561
Increase (decrease) in net investment portfolio	8,300
Proceeds from sales of securities		$ 1,759	1,700
Proceeds from calls of securities available for sale	1,514	1,000
Gross realized gains			4
Securities pledged	12,500		12,500
Proceeds from the sales and redemption of held-to-maturity securities	1,500	7,600	9,100
Gross realized gains on held-to-maturity securities	1	$ 4	33
Small Business Administration loan pools
Available-for-sale
Amortized Cost, AFS, Total	29,008		30,678
Gross Unrealized Gains, AFS	46		77
Gross Unrealized Losses, AFS	(172)		(199)
Fair Value, AFS	28,882		30,556
Mortgage backed securities
Available-for-sale
Amortized Cost, AFS, Total	23,880		28,514
Gross Unrealized Gains, AFS	291		438
Gross Unrealized Losses, AFS	(97)		(30)
Fair Value, AFS	24,074		28,922
Held-to-Maturity
Amortized Cost, HTM	314		345
Gross Unrealized Gains, HTM	13		14
Fair Value, HTM	327		359
U.S. agency obligations
Available-for-sale
Amortized Cost, AFS, Total	2,000		3,000
Gross Unrealized Gains, AFS	100		122
Fair Value, AFS	2,100		3,122
Community Development District bonds
Available-for-sale
Amortized Cost, AFS, Total	20,579		20,582
Gross Unrealized Gains, AFS	674		717
Fair Value, AFS	21,253		21,299
Municipals
Available-for-sale
Amortized Cost, AFS, Total	1,060		1,064
Gross Unrealized Gains, AFS	28		35
Fair Value, AFS	1,088		1,099
US Treasury
Held-to-Maturity
Amortized Cost, HTM	201		202
Fair Value, HTM	201		202
Foreign Bonds
Held-to-Maturity
Amortized Cost, HTM	1,000		1,000
Fair Value, HTM	1,000		1,000
Corporate bonds
Available-for-sale
Amortized Cost, AFS, Total	2,000		2,501
Gross Unrealized Gains, AFS	11		9
Fair Value, AFS	2,011		2,510
Available-for-sale - taxable
Available-for-sale
Amortized Cost, AFS, Total	56,888		64,693
Gross Unrealized Gains, AFS	448		646
Gross Unrealized Losses, AFS	(269)		(229)
Fair Value, AFS	57,067		65,110
Available-for-sale - tax exempt
Available-for-sale
Amortized Cost, AFS, Total	21,639		21,646
Gross Unrealized Gains, AFS	702		752
Fair Value, AFS	$ 22,341		$ 22,398

SECURITIES - Maturities Of Secu

SECURITIES - Maturities Of Securities (Details) $ in Thousands	Mar. 31, 2021USD ($)loanitem	Dec. 31, 2020loanitem
Available for sale, Amortized cost
Due in one year or less	$ 1,497
Due after one year through five years	22,898
Due after five years through ten years	929
Due after ten years	315
Amortized Cost, AFS	25,639
Amortized Cost, AFS, One to Five Year Maturity	78,527
Available for sale, Fair value
Due in one year or less	1,520
Due after one year through five years	23,646
Due after five years through ten years	963
Due after ten years	323
Fair Value, AFS	26,452
Fair Value, AFS, One to Five Year Maturity	79,408
Held to maturity, Amortized cost
Due in one year or less	1,201
Amortized Cost, HTM	1,201
Held to maturity, Fair value
Due in one year or less	1,201
Fair Value, HTM	1,201
Amortized Cost, HTM, without single maturity date	1,515
Fair Value, HTM, without single maturity date	$ 1,528
Percentage of holding of securities of shareholder's equity	10.00%	10.00%
Number of holdings of securities of any one issuer | item	0	0
Number of investment positions that are in an unrealized loss position | loan	35	36
Small Business Administration loan pools
Available for sale, Amortized cost
Amortized Cost, AFS, One to Five Year Maturity	$ 29,008
Available for sale, Fair value
Fair Value, AFS, One to Five Year Maturity	28,882
Mortgage backed securities
Available for sale, Amortized cost
Amortized Cost, AFS, One to Five Year Maturity	23,880
Available for sale, Fair value
Fair Value, AFS, One to Five Year Maturity	24,074
Held to maturity, Fair value
Amortized Cost, HTM, without single maturity date	314
Fair Value, HTM, without single maturity date	$ 327

SECURITIES - Unrealized Losses

SECURITIES - Unrealized Losses By Security Type And Time (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Marketable Securities [Line Items]
Credit losses recognized	$ 0		$ 0
Small Business Administration loan pools
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	2,159	$ 18,849
12 Months or Longer, Fair Value	17,493	8,945
Total Fair Value	19,652	27,794
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(42)	(133)
12 Months or Longer, Unrealized Losses	(130)	(66)
Total Unrealized Losses	(172)	(199)
Mortgage backed securities
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	5,099	5,839
12 Months or Longer, Fair Value		2,510
Total Fair Value	5,099	8,349
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(97)
12 Months or Longer, Unrealized Losses		(30)
Total Unrealized Losses	(97)	(30)
U.S. agency obligations
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value		227
Total Fair Value		227
Available-for-sale - taxable
Marketable Securities [Line Items]
Less Than 12 Months, Fair Value	7,258	24,915
12 Months or Longer, Fair Value	17,493	11,455
Total Fair Value	24,751	36,370
Unrealized Losses
Less Than 12 Months, Unrealized Losses	(139)	(133)
12 Months or Longer, Unrealized Losses	(130)	(96)
Total Unrealized Losses	$ (269)	$ (229)

LOANS - Major Classifications o

LOANS - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 1,738,596	$ 1,666,480
Unearned loan origination (fees) costs, net	(1,489)	(1,323)
Unearned PPP loan origination (fees) costs, net	(5,708)	(4,255)
Allowance for loan losses	(9,656)	(16,259)	$ (16,259)	$ (6,548)
Loans, net	1,721,743	1,644,643
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	93,302	99,883
Allowance for loan losses	(404)	(388)	(388)	(272)
Consumer Portfolio Segment | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	369,234	380,491
Allowance for loan losses	(2,188)	(2,177)	(2,177)	(3,115)
Consumer Portfolio Segment | Consumer and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	12,563	11,688
Allowance for loan losses	(61)	(73)	(73)	(81)
Commercial Portfolio Segment | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	820,465	777,776
Allowance for loan losses	(3,482)	(3,159)	(3,159)	(1,845)
Commercial Portfolio Segment | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	443,032	396,642
Allowance for loan losses	$ (3,521)	$ (10,462)	$ (10,462)	$ (1,235)

LOANS - Past Due Loans (Details

LOANS - Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Non accrual	$ 2,775	$ 10,434
Total Past Due	3,483	12,015
Loans Not Past Due	1,735,113	1,654,465
Total	1,738,596	1,666,480
30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	708	1,581
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans Not Past Due	93,302	99,883
Total	93,302	99,883
Consumer Portfolio Segment | Residential real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	611	1,303
Loans Not Past Due	368,623	379,188
Total	369,234	380,491
Consumer Portfolio Segment | Residential real estate | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	611	1,303
Consumer Portfolio Segment | Consumer and Other
Financing Receivable, Past Due [Line Items]
Non accrual	1,307	1,307
Total Past Due	1,404	1,307
Loans Not Past Due	11,159	10,381
Total	12,563	11,688
Consumer Portfolio Segment | Consumer and Other | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due	97
Commercial Portfolio Segment | Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans Not Past Due	820,465	777,776
Total	820,465	777,776
Commercial Portfolio Segment | Commercial
Financing Receivable, Past Due [Line Items]
Non accrual	1,468	9,127
Total Past Due	1,468	9,405
Loans Not Past Due	441,564	387,237
Total	$ 443,032	396,642
Commercial Portfolio Segment | Commercial | 30 - 59 Days
Financing Receivable, Past Due [Line Items]
Total Past Due		$ 278

LOANS - Risk Category (Details)

LOANS - Risk Category (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 1,738,596	$ 1,666,480
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,733,042	1,653,149
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	453	541
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	5,101	12,790
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Total	93,302	99,883
Construction and land development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	93,302	99,883
Consumer Portfolio Segment | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	369,234	380,491
Consumer Portfolio Segment | Residential real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	369,234	380,062
Consumer Portfolio Segment | Residential real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		429
Consumer Portfolio Segment | Consumer and Other
Financing Receivable, Credit Quality Indicator [Line Items]
Total	12,563	11,688
Consumer Portfolio Segment | Consumer and Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	11,256	10,381
Consumer Portfolio Segment | Consumer and Other | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,307	1,307
Commercial Portfolio Segment | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	820,465	777,776
Commercial Portfolio Segment | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	818,139	775,420
Commercial Portfolio Segment | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	2,326	2,356
Commercial Portfolio Segment | Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Total	443,032	396,642
Commercial Portfolio Segment | Commercial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	441,111	387,403
Commercial Portfolio Segment | Commercial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total	453	112
Commercial Portfolio Segment | Commercial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 1,468	$ 9,127

LOANS - Narratives (Details)

LOANS - Narratives (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2021USD ($)loan	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)
Financing Receivable, Impaired [Line Items]
Total loans pledged to the Federal Home Loan Bank	$ 242,200,000		$ 227,800,000
Loan premiums on BAC purchased loans	$ 500,000		$ 600,000
Number of loans individually evaluated for impairment with an allowance recorded | loan	6		6
Non accrual	$ 2,775,000		$ 10,434,000
Number of loans past due over 90 days | loan	0
Number of impaired loans | loan	3		3
Recorded investment with no allowance	$ 5,400,000		$ 13,100,000
Recorded investment with allowance	2,800,000		10,400,000
Allowance	700,000		8,300,000
Average net investment	900,000		2,200,000
Interest income recognized	2,600	$ 3,700	12,700,000
Loans that met the criteria for consideration as a troubled debt restructuring	272,000		298,000
Specific reserve	0		0
Threshold credit value for annual review	1,000,000
Total loans	1,717,671,000		1,643,373,000
Loans allowances	$ 9,656,000	$ 16,259,000	16,259,000	$ 6,548,000
Number of loans processed | loan	2,113
Loans funded	$ 322,500,000
Repayments of PPPLF advances	$ 74,627,000
Number of loans funded | loan	608
Number of loans submitted for forgiveness | loan	1,062
Number of loans forgiven | loan	913
Percentage of loan volume of round 1 and 2 submitted for forgiveness	70.90%
Number of loans under the Paycheck Protection Program downgraded to non-performing | loan	1
Number of loans under the Paycheck Protection Program remaining on payment relief outstanding | loan	1
Amount of loans funded	$ 96,400,000
Represents the amount of loans under the Paycheck Protection Program remaining on payment relief outstanding.	400,000
Amount of loans under the Paycheck Protection Program downgraded to non-performing	1,300,000
Amount of loans forgiven	110,800,000
Amount of loans submitted for forgiveness	160,400,000
Loan fees	2,500,000
Amount of unearned paycheck protection program loan fees	5,700,000		4,300,000
Loans and Leases Receivable, Gross	1,738,596,000		1,666,480,000
Loans provided for payment relief	199,800,000
Non-Performing Assets
Financing Receivable, Impaired [Line Items]
Total loans	$ 2,800,000		$ 10,400,000
Percentage of non-performing assets to total assets	0.12%		0.51%
Credit Risk
Financing Receivable, Impaired [Line Items]
Loans with increased oversight and analysis	$ 59,200,000
Loans provided for payment relief	$ 32,200,000
Substandard
Financing Receivable, Impaired [Line Items]
Number of impaired loans | loan	1		1
Recorded investment with no allowance	$ 2,300,000		$ 2,400,000
Loans and Leases Receivable, Gross	5,101,000		$ 12,790,000
Coex Coffee International Inc.
Financing Receivable, Impaired [Line Items]
Aggregate outstanding balance collateral	600,000
Loans and Leases Receivable, Gross	$ 7,600,000

LOANS - Carrying Amount PCI Loa

LOANS - Carrying Amount PCI Loans and Accretable Yield (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 6,638
PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount		$ 4,883
Allowance for loan losses reversed	0
Accretable yield or income expected to be collected
Balance at beginning of period	(630)
Accretion of income	89
Balance at end of period	(541)
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	5,555
Construction and land development | PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount		3,732
Consumer Portfolio Segment | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	405
Consumer Portfolio Segment | Residential real estate | PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount		405
Commercial Portfolio Segment | Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount	$ 678
Commercial Portfolio Segment | Commercial | PCI loans
Financing Receivable, Credit Quality Indicator [Line Items]
Carrying amount		$ 746

LOANS - PCI Loans Deemed Uncoll

LOANS - PCI Loans Deemed Uncollectable (Details) - PCI loans - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 26, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Interest component of expected cash flows (accretable discount)	$ (541)	$ (630)
Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type			$ 8,821
Contractual cash flows not expected to be collected			(3,638)
Expected cash flows			5,183
Interest component of expected cash flows (accretable discount)			(545)
Fair value of PCI loans accounted for under ASC 310-30			4,638
Construction and land development | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type			5,614
Contractual cash flows not expected to be collected			(2,297)
Consumer Portfolio Segment | Residential real estate | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type			604
Contractual cash flows not expected to be collected			(138)
Commercial Portfolio Segment | Commercial real estate | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type			427
Contractual cash flows not expected to be collected			(80)
Commercial Portfolio Segment | Commercial | Marquis Bancorp, Inc
Financing Receivable, Credit Quality Indicator [Line Items]
Contractually required principal and interest by loan type			2,176
Contractual cash flows not expected to be collected			$ (1,123)

ALLOWANCE FOR LOAN LOSSES - Bal

ALLOWANCE FOR LOAN LOSSES - Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Allowance for loan losses
Beginning balance	$ 16,259	$ 6,548
Provision for loan losses	1,038	10,017
Loans charged-off	(7,641)	(306)
Total ending allowance balance	9,656	16,259
Construction and land development
Allowance for loan losses
Beginning balance	388	272
Provision for loan losses	16	116
Total ending allowance balance	404	388
Consumer Portfolio Segment | Residential real estate
Allowance for loan losses
Beginning balance	2,177	3,115
Provision for loan losses	11	(731)
Loans charged-off		(207)
Total ending allowance balance	2,188	2,177
Consumer Portfolio Segment | Consumer and Other
Allowance for loan losses
Beginning balance	73	81
Provision for loan losses	(12)	(8)
Total ending allowance balance	61	73
Commercial Portfolio Segment | Commercial real estate
Allowance for loan losses
Beginning balance	3,159	1,845
Provision for loan losses	323	1,314
Total ending allowance balance	3,482	3,159
Commercial Portfolio Segment | Commercial
Allowance for loan losses
Beginning balance	10,462	1,235
Provision for loan losses	700	9,326
Loans charged-off	(7,641)	(99)
Total ending allowance balance	$ 3,521	$ 10,462

ALLOWANCE FOR LOAN LOSSES - All

ALLOWANCE FOR LOAN LOSSES - Allowance for Loans Losses and Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Allowance for loan losses
Ending balance – individually evaluated for impairment	$ 685	$ 8,309
Ending balance– collectively evaluated for impairment	8,971	7,950
Total ending allowance balance	9,656	16,259	$ 16,259	$ 6,548
Loans individually evaluated for impairment	5,373	13,088
Loans collectively evaluated for impairment	1,733,223	1,653,392
Total	1,738,596	1,666,480
Construction and land development
Allowance for loan losses
Ending balance– collectively evaluated for impairment	404	388
Total ending allowance balance	404	388	388	272
Loans collectively evaluated for impairment	93,302	99,883
Total	93,302	99,883
Consumer Portfolio Segment | Residential real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment	2,188	2,177
Total ending allowance balance	2,188	2,177	2,177	3,115
Loans individually evaluated for impairment	272	298
Loans collectively evaluated for impairment	368,962	380,193
Total	369,234	380,491
Consumer Portfolio Segment | Consumer and Other
Allowance for loan losses
Ending balance– collectively evaluated for impairment	61	73
Total ending allowance balance	61	73	73	81
Loans individually evaluated for impairment	1,307	1,307
Loans collectively evaluated for impairment	11,256	10,381
Total	12,563	11,688
Commercial Portfolio Segment | Commercial real estate
Allowance for loan losses
Ending balance– collectively evaluated for impairment	3,482	3,159
Total ending allowance balance	3,482	3,159	3,159	1,845
Loans individually evaluated for impairment	2,326	2,356
Loans collectively evaluated for impairment	818,139	775,420
Total	820,465	777,776
Commercial Portfolio Segment | Commercial
Allowance for loan losses
Ending balance – individually evaluated for impairment	685	8,309
Ending balance– collectively evaluated for impairment	2,836	2,153
Total ending allowance balance	3,521	10,462	$ 10,462	$ 1,235
Loans individually evaluated for impairment	1,468	9,127
Loans collectively evaluated for impairment	441,564	387,515
Total	$ 443,032	$ 396,642

DEPOSITS - Total deposits (Deta

DEPOSITS - Total deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Ending Balance
NOW accounts	$ 64,317	$ 60,995
Money market accounts	979,742	865,625
Savings accounts	23,471	20,750
Certificates of deposit	248,759	236,575
Total interest-bearing deposits	1,316,289	1,183,945
Noninterest-bearing deposits	589,415	475,598
Total deposits	$ 1,905,704	$ 1,659,543
% of Total
NOW accounts	3.40%	3.70%
Money market accounts	51.40%	52.20%
Savings accounts	1.20%	1.30%
Certificates of deposit	13.10%	14.30%
Total interest-bearing deposits	69.10%	71.30%
Noninterest-bearing deposits	30.90%	28.70%
Deposits	100.00%	100.00%

DEPOSITS - Maturities of time d

DEPOSITS - Maturities of time deposits that meet or exceed the $250,000 FDIC insurance limit (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
$250,000 or more
Three Months or Less	$ 36,553	$ 40,189
Over Three Through Six Months	22,484	35,314
Over Six Months Through Twelve Months	51,806	42,844
Over 12 Months	54,671	40,158
$250,000 or more	165,514	158,505
Less than $250,000
Three Months or Less	13,944	20,767
Over Three Through Six Months	15,481	13,258
Over Six Months Through Twelve Months	24,613	24,805
Over 12 Months	29,207	19,240
Less than $250,000	83,245	78,070
Total
Three Months or Less	50,497	60,956
Over Three Through Six Months	37,965	48,572
Over Six Months Through Twelve Months	76,419	67,649
Over 12 Months	83,878	59,398
Total	$ 248,759	$ 236,575

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
DEPOSITS.
Deposits that meet or exceed the $250,000 FDIC insurance limit	$ 165,514	$ 158,505
Financial instruments pledged as collateral for certain deposits	53,700	54,700
Deposits that have been re-classified as loan balances	400	100
Deposits from principal officers, directors and their affiliates	12,900	12,100
Qualified Public Deposits (“QPD”) that require collateral pledged	$ 98,800	$ 98,900

DEPOSITS - Maturities of Time_2

DEPOSITS - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Maturities of time deposits
Less than 1 year	$ 164,882	$ 177,178
Over 1 through 2 years	82,460	57,034
Over 2 through 3 years	1,293	1,658
Over 3 through 4 years	124	705
Total	$ 248,759	$ 236,575

DEBT (Details)

DEBT (Details)	Mar. 26, 2020USD ($)	Mar. 31, 2021USD ($)loan	Jan. 07, 2021USD ($)	Dec. 19, 2019USD ($)
Line of Credit Facility [Line Items]
Number of loans processed | loan		2,113
Loans funded		$ 322,500,000
Marquis Bancorp, Inc
Line of Credit Facility [Line Items]
Subordinated debt fair value	$ 500,000
Valley National Bank, N. A.
Line of Credit Facility [Line Items]
Line of credit				$ 10,000,000
Principal amount			$ 0
Subordinated Debt. | Marquis Bancorp, Inc
Line of Credit Facility [Line Items]
Notes payable at fair value	10,300,000
Principal amount	$ 10,000,000
Fixed rate	7.00%
Subordinated debt fair value	$ 500,000
Subordinated Debt. | Marquis Bancorp, Inc | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable rate	576.00%

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
BORROWINGS
Amount outstanding at period-end	$ 40,000	$ 40,000
Weighted average interest rate at period-end	1.96%	1.96%
Maximum month-end balance during period	$ 40,000	$ 70,000
Average balance outstanding during period	$ 40,000	$ 58,210
Weighted average interest rate during period	1.96%	1.63%

BORROWINGS - Additional Informa

BORROWINGS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
BORROWINGS
Maximum percentage of assets allowed to borrow	25.00%
Collateral amount	$ 285,100
Amount outstanding at period-end	40,000	$ 40,000
Additional available borrowing capacity	120,600
Repayments of PPPLF advances	74,627
Loan fees	$ 2,500

COMMON STOCK AND PREFERRED ST_2

COMMON STOCK AND PREFERRED STOCK (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 26, 2020
Class of Stock [Line Items]
Undesignated and unissued preferred stock	10,000,000
Marquis Bancorp, Inc
Class of Stock [Line Items]
Common Stock, outstanding (in shares)			3,509,143
Class A Voting Common Stock
Class of Stock [Line Items]
Common Stock, Par value	$ 0.01	$ 0.01
Common Stock Authorized	50,000,000	50,000,000
Common Stock, outstanding (in shares)	13,661,567	13,534,829
Common stock issued	184,427
Number of shares repurchased	54,479
Restricted stock grants	127,499
Number of options exercised	56,055
Restricted stock, shares issued net of shares for tax withholdings	3,210
Class A Voting Common Stock | Employee Stock
Class of Stock [Line Items]
Shares issued	873
Class B Non-Voting Common stock
Class of Stock [Line Items]
Common Stock, Par value	$ 0.01	$ 0.01
Common Stock Authorized	10,000,000	10,000,000
Common Stock, outstanding (in shares)	0	0

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair Value
Securities reclassified into or out of Level 3	$ 0	$ 0
Fair Value, Recurring | Available-for-sale - taxable
Fair Value
Fair Value	57,067	57,067
Fair Value, Recurring | Available-for-sale - tax exempt
Fair Value
Fair Value	22,341	22,341
Fair Value, Recurring | Small Business Administration loan pools
Fair Value
Fair Value	28,882	28,882
Fair Value, Recurring | Mortgage backed securities
Fair Value
Fair Value	24,074	24,074
Fair Value, Recurring | U.S. agency obligations
Fair Value
Fair Value	2,100	2,100
Fair Value, Recurring | Community Development District bonds
Fair Value
Fair Value	21,253	21,253
Fair Value, Recurring | Municipals
Fair Value
Fair Value	1,088	1,088
Fair Value, Recurring | Corporate bonds
Fair Value
Fair Value	2,011	2,011
Fair Value, Recurring | Equity securities
Fair Value
Fair Value	5,914	6,005
Fair Value, Recurring | Mutual funds
Fair Value
Fair Value	5,914	6,005
Fair Value, Recurring | Level 1 | Equity securities
Fair Value
Fair Value	5,914	6,005
Fair Value, Recurring | Level 1 | Mutual funds
Fair Value
Fair Value	5,914	6,005
Fair Value, Recurring | Level 2 | Available-for-sale - taxable
Fair Value
Fair Value	57,067	57,067
Fair Value, Recurring | Level 2 | Available-for-sale - tax exempt
Fair Value
Fair Value	22,341	22,341
Fair Value, Recurring | Level 2 | Small Business Administration loan pools
Fair Value
Fair Value	28,882	28,882
Fair Value, Recurring | Level 2 | Mortgage backed securities
Fair Value
Fair Value	24,074	24,074
Fair Value, Recurring | Level 2 | U.S. agency obligations
Fair Value
Fair Value	2,100	2,100
Fair Value, Recurring | Level 2 | Community Development District bonds
Fair Value
Fair Value	21,253	21,253
Fair Value, Recurring | Level 2 | Municipals
Fair Value
Fair Value	1,088	1,088
Fair Value, Recurring | Level 2 | Corporate bonds
Fair Value
Fair Value	$ 2,011	$ 2,011

FAIR VALUE - Assets Measured at

FAIR VALUE - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair Value
Total Gains (Losses)	$ 600
Net fair value of collateral	600
Amount of specific reserve within the ALLL associated with the Coex Coffee International loan	$ 0
Percentage of specific reserve amount	0.00%
Fair Value, Nonrecurring
Fair Value
Fair Value	$ 783	$ 818
Total Gains (Losses)	(685)	(8,309)
Fair Value, Nonrecurring | Commercial
Fair Value
Fair Value	783	818
Total Gains (Losses)	(685)	(8,309)
Fair Value, Nonrecurring | Level 3
Fair Value
Fair Value	783	818
Fair Value, Nonrecurring | Level 3 | Commercial
Fair Value
Fair Value	$ 783	$ 818

FAIR VALUE - Carrying amount an

FAIR VALUE - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financial Assets:
Securities, Available for Sale - taxable	$ 57,067	$ 65,110
Securities, Available for Sale - tax exempt	22,341	22,398
Securities, Held to Maturity	1,528	1,561
Securities, Equity	5,914	6,005
Financial Liabilities:
Subordinated Debt	10,108	10,153
Level 1, 2 & 3 | Carrying Amount
Financial Assets:
Accrued Interest Receivable	6,511	6,666
Level 1, 2 & 3 | Fair Value
Financial Assets:
Accrued Interest Receivable	6,511	6,666
Level 1 | Carrying Amount
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	279,810	191,597
Federal Funds Sold	43,919	25,375
Securities, Equity	5,914	6,005
Level 1 | Fair Value
Financial Assets:
Cash & Due from Banks, including interest bearing deposits	279,810	191,597
Federal Funds Sold	43,919	25,375
Securities, Equity	5,914	6,005
Level 2 | Carrying Amount
Financial Assets:
Securities available for sale		87,508
Securities, Available for Sale - taxable	57,769
Securities, Available for Sale - tax exempt	21,639
Securities, Held to Maturity	1,515	1,547
Bank Owned Life Insurance		37,360
Financial Liabilities:
Deposits	1,905,704	1,659,543
Federal Home Loan Bank Advances	40,000	40,000
Subordinated Debt	10,108	10,153
PPPLF Advances	26,731	101,358
Loan Participations	13,947	13,215
Derivative SWAP	3,073
Accrued Interest Payable	362	546
Level 2 | Fair Value
Financial Assets:
Securities available for sale		87,508
Securities, Available for Sale - taxable	65,862
Securities, Available for Sale - tax exempt	21,646
Securities, Held to Maturity	1,528	1,561
Bank Owned Life Insurance		37,360
Financial Liabilities:
Deposits	1,886,236	1,693,331
Federal Home Loan Bank Advances	38,726	37,927
Subordinated Debt	10,108	10,153
PPPLF Advances	26,731	101,519
Loan Participations	13,947	13,215
Derivative SWAP	3,073
Accrued Interest Payable	362	546
Level 3 | Carrying Amount
Financial Assets:
Loans, net	1,717,671	1,644,643
Loans held for sale	3,608
Level 3 | Fair Value
Financial Assets:
Loans, net	1,744,538	$ 1,654,671
Loans held for sale	$ 3,718

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details)	3 Months Ended
	Mar. 31, 2021USD ($)DerivativeInstrument	Mar. 31, 2020USD ($)
Derivative [Line Items]
Swap fees	$ 209,000	$ 263,000
Swap
Derivative [Line Items]
Number of instruments held | DerivativeInstrument	1
Swap transaction	$ 2,100,000
Swap fees	$ 28,108

LOAN COMMITMENTS AND OTHER RE_3

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 458,326	$ 410,620
Unfunded Lines Of Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual amounts of financial instruments with off-balance-sheet risk	372,561	356,955
Commitments to Extend Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual amounts of financial instruments with off-balance-sheet risk	74,485	40,629
Letters Of Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 11,280	$ 13,036

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) $ in Thousands	Mar. 31, 2021USD ($)item	Dec. 31, 2020USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Conversion Buffer - 2015	0.00%
Capital Conversion Buffer - 2019	2.50%
Capital Conversion Buffer - 2020	2.50%
Capital Conversion Buffer - 2021	2.50%
Number of classifications | item	5
Bank
Total capital Amount
Total capital	$ 176,109	$ 176,633
Total capital Required for Capital Adequacy	121,626	117,298
Total capital Well Capitalized Prompt Corrective Action Regulations	$ 152,032	$ 146,623
Total Capital ratio
Total capital ratio (as percentage)	11.6	12
Total capital Required for Capital Adequacy ratio (as percentage)	8	8
Total capital Well Capitalized Prompt Corrective Action Regulations ratio (as percentage)	10	10
Tier 1 Capital Amount
Tier 1 Capital	$ 165,392	$ 159,448
Tier 1 capital Required for Capital Adequacy	91,219	87,974
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations	$ 121,626	$ 117,298
Tier 1 Capital ratio (as percentage)	10.9	10.9
Tier 1 capital ratio Required for Capital Adequacy ratio (as percentage)	6	6
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations (as percentage)	8	8
Tier 1 Leverage capital Amount
Tier 1 Leverage capital	$ 165,392	$ 159,448
Tier 1 Leverage capital Required for Capital Adequacy	80,292	75,723
Tier 1 Leverage capital Well Capitalized Prompt Corrective Action Regulations	$ 100,365	$ 94,654
Tier 1 Leverage ratio
Tier 1 Leverage ratio (as percentage)	8.2	8.4
Tier 1 Leverage ratio Required for Capital Adequacy (as percentage)	4	4
Tier 1 Leverage ratio Well Capitalized Prompt corrective Action Regulations (as percentage)	5	5
Common Equity Tier 1 Capital Amount
Common Equity Tier 1 Capital	$ 165,392	$ 159,448
Common Equity Tier 1 capital Required for Capital Adequacy	68,415	65,980
Common Equity Tier 1 capital Well Capitalized Prompt Corrective Action Regulations	$ 98,821	$ 95,305
Common Equity Tier 1 Ratio (as percentage)	10.9	10.9
Common Equity Tier 1 Ratio Required for Capital Adequacy ratio (as percentage)	4.50%	4.50%
Common Equity Tier 1 Ratio Well Capitalized Prompt corrective Action Regulations ratio (as percentage)	6.50%	6.50%
Corporation
Total capital Amount
Total capital	$ 214,223	$ 215,977
Total capital Required for Capital Adequacy	$ 121,626	117,298
Total capital Well Capitalized Prompt Corrective Action Regulations		$ 0
Total Capital ratio
Total capital ratio (as percentage)	14.1	14.7
Total capital Required for Capital Adequacy ratio (as percentage)	8	8
Total capital Well Capitalized Prompt Corrective Action Regulations ratio (as percentage)	0	0
Tier 1 Capital Amount
Tier 1 Capital	$ 193,399	$ 188,639
Tier 1 capital Required for Capital Adequacy	$ 91,219	87,974
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations		$ 0
Tier 1 Capital ratio (as percentage)	12.7	12.9
Tier 1 capital ratio Required for Capital Adequacy ratio (as percentage)	6	6
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations (as percentage)	0	0
Tier 1 Leverage capital Amount
Tier 1 Leverage capital	$ 193,399	$ 188,639
Tier 1 Leverage capital Required for Capital Adequacy	$ 80,292	75,723
Tier 1 Leverage capital Well Capitalized Prompt Corrective Action Regulations		$ 0
Tier 1 Leverage ratio
Tier 1 Leverage ratio (as percentage)	9.6	10
Tier 1 Leverage ratio Required for Capital Adequacy (as percentage)	4	4
Tier 1 Leverage ratio Well Capitalized Prompt corrective Action Regulations (as percentage)	0	0
Common Equity Tier 1 Capital Amount
Common Equity Tier 1 Capital	$ 193,399	$ 188,639
Common Equity Tier 1 capital Required for Capital Adequacy	$ 68,415	65,980
Common Equity Tier 1 capital Well Capitalized Prompt Corrective Action Regulations		$ 0
Common Equity Tier 1 Ratio (as percentage)	12.7	12.9
Common Equity Tier 1 Ratio Required for Capital Adequacy ratio (as percentage)	4.50%	4.50%
Common Equity Tier 1 Ratio Well Capitalized Prompt corrective Action Regulations ratio (as percentage)	0.00%	0.00%

STOCK BASED COMPENSATION - Rest

STOCK BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price | $ / shares	$ 16.82
Unrecognized compensation expense | $	$ 3.3
Weighted-average period in which cost is expected to be recognized	3 years
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	300,000
Number of shares granted	224,176
Available for grant	75,824

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) - USD ($)	Jun. 19, 2020	Mar. 31, 2021	Dec. 31, 2020	Jan. 01, 2019
Right-of-use assets				$ 5,700,000
Right-of-use assets, Financial position		Premises and equipment, net	Premises and equipment, net	Premises and equipment, net
Lease liabilities arising from obtaining right of use assets		$ 0	$ 2,000,000
Lease liabilities		$ 5,876,000	$ 6,500,000	$ 6,000,000
Lease liability, Financial position		Accrued interest and other liabilities	Accrued interest and other liabilities	Accrued interest and other liabilities
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
	Mar. 31, 2021	Mar. 31, 2020
Lease cost
Operating Lease and Interest Cost	$ 467	$ 311
Variable Lease Cost	117	107
Total Lease Cost	$ 584	$ 418

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
LEASES
Operating Lease - Operating Cash Flows (Fixed Payments)	$ 467	$ 311
Operating Lease - Operating Cash Flows (Liability Reduction)	$ 625	253
New ROU Assets - Operating Leases		$ 1,620
Weighted Average Lease Term (Years) - Operating Leases	5 years 6 months	5 years 10 months 24 days
Weighted Average Discount Rate - Operating Leases	3.16%	2.82%

LEASES - Maturity of lease liab

LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jan. 01, 2019
Operating lease payments due:
Within one year	$ 1,343
After one but within two years	1,351
After two but within three years	1,336
After three but within four years	1,111
After four years but within five years	1,015
After five years	922
Total undiscounted cash flows	7,078
Discount on cash flows	(1,202)
Total operating lease liabilities	$ 5,876	$ 6,500	$ 6,000

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) $ in Thousands	Mar. 26, 2020USD ($)loanshares	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Business Acquisition
Goodwill		$ 24,621		$ 24,621
PCI loans
Business Acquisition
Contractual cash flows specific	$ 3,600
Credit deterioration	8,800
Loans	$ 4,600
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		$ 700	$ 1,700
Goodwill	$ 24,621
Number of separate loan fair value adjustments | loan	3
Gross principal balance	$ 539,900
Fair value adjustment on PCI loans	3,500
Cored deposit intangibles	1,646
Unamortized discount on time deposits	2,800
FHLB advances	100
Subordinated debt fair value	500
Net deferred income tax assets	$ 5,400
Marquis Bancorp, Inc | Core deposits
Business Acquisition
Amortization period	10 years
Marquis Bancorp, Inc | Class A Voting Common Stock
Business Acquisition
Common stock issued and outstanding converted | shares	1.2048
Closing merger company issued | shares	4,227,816

BUSINESS COMBINATION - MBI and

BUSINESS COMBINATION - MBI and the estimated fair values of the assets acquired, and liabilities assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 26, 2020	Mar. 31, 2021	Dec. 31, 2020
Recognized amounts of identifiable assets acquired and liabilities assumed
Goodwill		$ 24,621	$ 24,621
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	$ 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	5,729
Fair value of total consideration transferred	70,035
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	515,304
Premises and equipment	824
Accrued interest receivable	1,525
Core deposit intangibles	1,646
Other assets	9,143
Total assets acquired	583,797
Deposits	498,110
Federal Home Loan Bank advances	25,103
Subordinated notes payable	10,285
Accrued interest payable	610
Other liabilities	4,275
Total liabilities assumed	538,383
Total identifiable net assets	45,414
Goodwill	$ 24,621

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	May 10, 2021USD ($)
Revolving line of credit | Valley National Line of Credit
Accelerated Share Repurchases [Line Items]
Amount outstanding	$ 0