BayFirst Financial (BAFN) 10-Q 13 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-41068
Entity Registrant Name	BAYFIRST FINANCIAL CORP.
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3665079
Entity Address, Address Line One	700 Central Avenue
Entity Address, City or Town	St. Petersburg
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33701
City Area Code	727
Local Phone Number	440-6848
Title of 12(b) Security	Common stock
Trading Symbol	BAFN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,132,986
Entity Central Index Key	0001649739
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	[1]
ASSETS
Cash and due from banks	$ 4,708	$ 4,099
Interest-bearing deposits in banks	59,675	54,286
Cash and cash equivalents	64,383	58,385
Time deposits in banks	2,264	4,646
Investment securities available for sale, at fair value (amortized cost: $41,104 and $43,597 at September 30, 2024 and December 31, 2023, respectively)	37,984	39,575
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $13 and $17 (fair value: $2,321 and $2,263 at September 30, 2024 and December 31, 2023, respectively)	2,487	2,484
Nonmarketable equity securities	4,997	4,770
Loans HFI, at amortized cost	956,004	824,218
Allowance for credit losses on loans	(14,186)	(13,497)
Net loans HFI, at amortized cost	941,818	810,721
Accrued interest receivable	8,537	7,130
Premises and equipment, net	38,736	38,874
Loan servicing rights	15,966	14,959
Right-of-use operating lease assets	2,018	2,416
Bank owned life insurance	26,330	25,800
Other assets	12,543	16,150
Assets from discontinued operations	0	348
Total assets	1,245,099	1,117,766
Liabilities:
Noninterest-bearing deposits	95,995	93,708
Interest-bearing transaction accounts	247,923	259,422
Savings and money market deposits	455,297	373,000
Time deposits	312,981	259,008
Total deposits	1,112,196	985,138
FHLB borrowings	10,000	10,000
Subordinated debentures	5,954	5,949
Notes payable	2,048	2,389
Accrued interest payable	1,114	882
Operating lease liabilities	2,271	2,619
Deferred income tax liabilities	1,488	482
Accrued expenses and other liabilities	7,735	8,980
Liabilities from discontinued operations	0	620
Total liabilities	1,142,806	1,017,059
Shareholders’ equity:
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,059 and 4,110,470 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	54,780	54,521
Accumulated other comprehensive loss, net	(2,312)	(2,981)
Unearned compensation	(978)	(958)
Retained earnings	35,073	34,395
Total shareholders’ equity	102,293	100,707
Total liabilities and shareholders’ equity	1,245,099	1,117,766
Preferred Stock, Series A
Shareholders’ equity:
Preferred stock	6,161	6,161
Preferred Stock, Series B
Shareholders’ equity:
Preferred stock	3,123	3,123
Preferred Stock, Series C
Shareholders’ equity:
Preferred stock	6,446	6,446
Government guaranteed loans held for sale
ASSETS
Government guaranteed loans held for sale	595	0
Government guaranteed loans HFI, at fair value
ASSETS
Government guaranteed loans HFI, at fair value	$ 86,441	$ 91,508
[1]Derived from audited consolidated financial statements

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Amortized cost	$ 41,104	$ 43,597
Allowance for credit loss for HTM securities	13	17
Fair Value	$ 2,321	$ 2,263
Shareholders’ equity:
Common stock and additional paid-in capital, shares authorized (in shares)	15,000,000	15,000,000
Common stock and additional paid-in capital, shares issued (in shares)	4,134,059	4,110,470
Common stock and additional paid-in capital, shares outstanding (in shares)	4,134,059	4,110,470
Preferred Stock, Series A
Shareholders’ equity:
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	6,395	6,395
Preferred stock, shares outstanding (in shares)	6,395	6,395
Preferred stock, aggregate liquidation preference	$ 6,395	$ 6,395
Preferred Stock, Series B
Shareholders’ equity:
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	3,210	3,210
Preferred stock, shares outstanding (in shares)	3,210	3,210
Preferred stock, aggregate liquidation preference	$ 3,210	$ 3,210
Preferred Stock, Series C
Shareholders’ equity:
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	6,446	6,446
Preferred stock, shares outstanding (in shares)	6,446	6,446
Preferred stock, aggregate liquidation preference	$ 6,446	$ 6,446

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans, including fees	$ 20,442	$ 16,032	$ 58,084	$ 45,475
Interest-bearing deposits in banks and other	1,000	1,588	2,972	4,188
Total interest income	21,442	17,620	61,056	49,663
Interest expense:
Deposits	11,609	9,055	32,272	21,076
Borrowings	384	172	1,411	1,033
Total interest expense	11,993	9,227	33,683	22,109
Net interest income	9,449	8,393	27,373	27,554
Provision for credit losses	3,122	3,001	10,180	7,708
Net interest income after provision for credit losses	6,327	5,392	17,193	19,846
Noninterest income:
Loan servicing income, net	918	760	2,518	2,149
Gain on sale of government guaranteed loans, net	6,143	7,139	19,827	17,576
Service charges and fees	447	408	1,343	1,166
Government guaranteed loans fair value gain	3,416	4,543	9,923	11,021
Government guaranteed loan packaging fees	903	1,158	3,332	2,076
Other noninterest income	445	671	1,250	1,076
Total noninterest income	12,272	14,679	38,193	35,064
Noninterest expense:
Salaries and benefits	7,878	7,912	23,712	23,527
Bonus, commissions, and incentives	1,141	1,406	3,371	3,515
Occupancy and equipment	1,248	1,262	3,631	3,608
Data processing	1,789	1,526	4,996	4,189
Marketing and business development	532	929	1,660	2,696
Professional services	853	816	3,079	2,587
Loan origination and collection	1,956	1,981	5,633	4,697
Employee recruiting and development	595	543	1,741	1,667
Regulatory assessments	309	284	870	615
Other noninterest expense	763	768	2,754	2,140
Total noninterest expense	17,064	17,427	51,447	49,241
Income from continuing operations before income taxes	1,535	2,644	3,939	5,669
Income tax expense from continuing operations	398	674	1,043	1,415
Net income from continuing operations	1,137	1,970	2,896	4,254
Loss from discontinued operations before income taxes	0	(62)	(92)	(275)
Income tax benefit from discontinued operations	0	(15)	(23)	(68)
Net loss from discontinued operations	0	(47)	(69)	(207)
Net income	1,137	1,923	2,827	4,047
Preferred stock dividends	385	208	1,156	624
Net income available to common shareholders	$ 752	$ 1,715	$ 1,671	$ 3,423
Basic earnings (loss) per common share:
Continuing operations (in dollars per share)	$ 0.18	$ 0.43	$ 0.42	$ 0.89
Discontinued operations (in dollars per share)	0	(0.01)	(0.02)	(0.05)
Total basic earnings per common share (in dollars per share)	0.18	0.42	0.40	0.84
Diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	0.18	0.42	0.42	0.88
Discontinued operations (in dollars per share)	0	(0.01)	(0.02)	(0.05)
Total diluted earnings per common share (in dollars per share)	$ 0.18	$ 0.41	$ 0.40	$ 0.83

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 1,137	$ 1,923	$ 2,827	$ 4,047
Net unrealized gains (losses) on investment securities available for sale	1,074	(516)	902	139
Deferred income tax (expense) benefit	(273)	134	(233)	(36)
Other comprehensive income (loss), net	801	(382)	669	103
Comprehensive income	$ 1,938	$ 1,541	$ 3,496	$ 4,150

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total		Impact of adopting ASC 326	Preferred Stock Preferred Stock, Series A	Preferred Stock Preferred Stock, Series B	Preferred Stock Preferred Stock, Series C	Common Stock, Additional Paid-in Capital, and Unearned Compensation	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained Earnings Impact of adopting ASC 326
Beginning balance at Dec. 31, 2022	$ 91,884		$ (2,508)	$ 6,161	$ 3,123	$ 0	$ 52,845	$ (3,724)	$ 33,479	$ (2,508)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,047								4,047
Issuance of common stock under:
Non-qualified stock purchase plan	206						206
Dividend reinvestment plan	159						159
Issuance of preferred stock, net	1,835					1,835
Repurchase of common stock	(13)						(13)
Exercise of stock options, net	(49)						(49)
Unearned ESOP shares allocation	(329)						(329)
Stock-based awards - common stock:
Restricted stock expense, net of tax impact	356						356
Stock option expense	83						83
Other comprehensive income (loss), net	103							103
Dividends declared on:
Preferred stock	(624)								(624)
Common stock	(985)								(985)
Ending balance at Sep. 30, 2023	94,165			6,161	3,123	1,835	53,258	(3,621)	33,409
Beginning balance at Jun. 30, 2023	91,065			6,161	3,123	0	52,998	(3,239)	32,022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,923								1,923
Issuance of common stock under:
Non-qualified stock purchase plan	21						21
Dividend reinvestment plan	75						75
Issuance of preferred stock, net	1,835					1,835
Repurchase of common stock	(3)						(3)
Exercise of stock options, net	(49)						(49)
Stock-based awards - common stock:
Restricted stock expense, net of tax impact	191						191
Stock option expense	25						25
Other comprehensive income (loss), net	(382)							(382)
Dividends declared on:
Preferred stock	(208)								(208)
Common stock	(328)								(328)
Ending balance at Sep. 30, 2023	94,165			6,161	3,123	1,835	53,258	(3,621)	33,409
Beginning balance at Dec. 31, 2023	100,707	[1]		6,161	3,123	6,446	53,563	(2,981)	34,395
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,827								2,827
Issuance of common stock under:
Unearned ESOP shares allocation	(44)						(44)
Stock-based awards - common stock:
Restricted stock expense, net of tax impact	252						252
Stock option expense	31						31
Other comprehensive income (loss), net	669							669
Dividends declared on:
Preferred stock	(1,156)								(1,156)
Common stock	(993)								(993)
Ending balance at Sep. 30, 2024	102,293			6,161	3,123	6,446	53,802	(2,312)	35,073
Beginning balance at Jun. 30, 2024	100,962			6,161	3,123	6,446	53,692	(3,113)	34,653
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,137								1,137
Stock-based awards - common stock:
Restricted stock expense, net of tax impact	101						101
Stock option expense	9						9
Other comprehensive income (loss), net	801							801
Dividends declared on:
Preferred stock	(385)								(385)
Common stock	(332)								(332)
Ending balance at Sep. 30, 2024	$ 102,293			$ 6,161	$ 3,123	$ 6,446	$ 53,802	$ (2,312)	$ 35,073
[1]Derived from audited consolidated financial statements

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Accounting Standards Update [Extensible Enumeration]					Accounting Standards Update 2016-13 [Member]
Dividend declared on common stock (in dollars per share)	$ 0.08	$ 0.08	$ 0.24	$ 0.24

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income from continuing operations	$ 2,896	$ 4,254
Net loss from discontinued operations	(69)	(207)
Net income	2,827	4,047
Adjustments to reconcile net income to net cash from operating activities:
Depreciation of fixed assets	1,847	1,744
Net securities premium amortization	89	69
Amortization of debt issuance costs	5	5
Amortization of premium on loans purchased, net	596	182
Provision for credit losses	10,180	7,708
Accretion of discount on unguaranteed loans	(2,207)	(2,302)
Deferred tax expense	772	1,361
Origination of government guaranteed loans held for sale	(2,821)	(4,276)
Proceeds from sales of government guaranteed loans held for sale	306,139	350,521
Net gains on sales of government guaranteed loans	(19,827)	(17,576)
Change in fair value of government guaranteed loans HFI, at fair value	(9,923)	(11,021)
Amortization of loan servicing rights	4,389	3,080
Net gain on sale of other real estate owned	0	(355)
Non-qualified stock purchase plan expense	18	20
Stock based compensation expense	283	439
Income from bank owned life insurance	(530)	(471)
Changes in:
Accrued interest receivable	(1,407)	(2,455)
Other assets	4,100	883
Accrued interest payable	232	(72)
Other liabilities	(1,418)	(3,856)
Net cash provided by operating activities of continuing operations	293,413	327,882
Net cash used in operating activities of discontinued operations	(341)	(337)
Net cash provided by operating activities	293,072	327,545
Cash flows from investing activities:
Purchase of investment securities available for sale	(4,458)	0
Principal payments on investment securities available for sale	6,862	2,736
Principal payments on investment securities held to maturity	1	1
Call of investment securities held to maturity	0	2,500
Net purchase of nonmarketable equity securities	(227)	(213)
Purchase of time deposits in banks	(14)	0
Maturity of time deposits in banks	2,396	250
Purchase of government guaranteed and consumer loans	(812)	(106,413)
Loan originations, net	(414,023)	(373,529)
Purchase related to other real estate owned	(1,229)	0
Purchase of premises and equipment	(1,709)	(6,199)
Proceeds on sales of other real estate owned	1,633	2,314
Net cash used in investing activities	(411,580)	(478,553)
Cash flows from financing activities:
Net change in deposits	127,058	222,726
Net increase in short-term borrowings	0	(25,000)
Payments on notes payable	(341)	(341)
Proceeds from issuance of preferred stock, net	0	1,835
Repayment of subordinated debt	0	(50)
Proceeds from issuance of common stock for benefit plans, net	(18)	296
Common share buyback - redeemed stock	0	(13)
Unearned ESOP shares	(44)	(329)
Dividends paid on common stock	(993)	(985)
Dividends paid on preferred stock	(1,156)	(624)
Net cash provided by financing activities	124,506	197,515
Net change in cash and cash equivalents	5,998	46,507
Cash and cash equivalents, beginning of period	58,385	66,046
Cash and cash equivalents, end of period	64,383	112,553
Supplemental cash flow information
Interest paid	33,451	22,181
Income taxes paid	8	2
Supplemental noncash disclosures
Impact to retained earnings from adoption of ASC 326, net of tax	0	2,508
Net change in unrealized holding gains (losses) on investment securities available for sale, net of tax effect	669	103
Transfer of government guaranteed loans HFI to loans HFS	289,482	336,914
Transfer of loans HFI to OREO	404	0
Transfer of loans HFI to repossessed assets	94	0
Transfer of premises and equipment to OREO	0	(1,903)
Recognition of right of use asset and operating lease liability	$ 263	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include BayFirst Financial Corp. and its wholly owned subsidiary, BayFirst National Bank, together referred to as “the Company”. These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles followed within the financial services industry for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. The consolidated balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements of BayFirst Financial Corp. for that date. The Company currently operates one business segment. In the third quarter of 2022, the Company discontinued the Bank’s nationwide residential mortgage loan segment. The operations of this segment are reported as discontinued operations. In the opinion of management, all adjustments, consisting of normal and recurring items, considered necessary for a fair presentation of the consolidated financial statements for the interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods have been reclassified to conform to current year presentation. These reclassifications did not have a material effect on previously reported net income, shareholders’ equity, or cash flows. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023. The Company’s significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2023 in the Company’s Annual Report filed on Form 10-K. For interim reporting purposes, the Company follows the same basic accounting policies and considers each interim period as an integral part of an annual period. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The most significant estimates relate to the ACL, government guaranteed loan servicing rights, and fair value of government guaranteed loans HFI. Emerging Growth Company Status: The Company is expected to remain an "emerging growth company," as defined in the JOBS Act, through December 31, 2026. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period when complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period, which means these financial statements, as well as financial statements they file in the future for as long as the Company remains an emerging growth company, will be subject to all new or revised accounting standards generally applicable to private companies. Contingencies : Due to the nature of their activities, the Company is at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of September 30, 2024. Although the ultimate outcome of all claims and lawsuits outstanding as of September 30, 2024 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition. New Accounting Standards Not Yet Adopted : In October 2023, the FASB issued ASU No. 2023-06 “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company does not believe this standard will have a material impact on its Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The Company does not expect it to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures ("ASU 2023-09"). This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Retrospective application in all prior periods is permitted. The amendments in this standard will be effective for the Company on January 1, 2025. The Company is currently assessing the impact of this standard and does not expect it to have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Disaggregation of Income Statement Expenses Disclosure (“ASU 2024-03”). This ASU was issued to improve the disclosures about public business entity’s expenses and address investor’s requests for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2027 and subsequent interim periods. The amendments should be applied either prospectively to the financial statements issued for reporting periods after the effective date of this update or retrospectively to any and all prior periods presented in the financial statements. We are currently evaluating the impact these changes may have on the Company’s consolidated financial statements.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS During the third quarter of 2022, the Company discontinued the Bank’s nationwide residential mortgage loan production operations. The decision was based on a number of strategic priorities and other factors, including the precipitous decline in mortgage volumes and the uncertain outlook for mortgage lending over future periods. As a result of these actions, the Company classified the operations of the residential mortgage lending division as discontinued under ASC 205-20. The Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows present discontinued operations for the current periods and retrospectively for prior periods. The following is a summary of the assets and liabilities of the discontinued operations of the residential mortgage lending division at September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Assets Right-of-use operating lease asset $ — $ 348 Total assets $ — $ 348 Liabilities Operating lease liability $ — $ 620 Total liabilities $ — $ 620 The following presents operating results of the discontinued operations of the residential mortgage lending division for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest income $ — $ — $ — $ 1 Noninterest income — — 51 (2) Total net revenue — — 51 (1) Noninterest expense — 62 143 274 Loss from discontinued operations before income taxes — (62) (92) (275) Income tax benefit — (15) (23) (68) Net loss from discontinued operations $ — $ (47) $ (69) $ (207)

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at September 30, 2024 and December 31, 2023 as well as the ACL for investment securities held to maturity at September 30, 2024 and December 31, 2023 are summarized as follows: September 30, 2024 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 5,378 $ — $ (51) $ 5,327 Mortgage-backed securities: U.S. Government-sponsored enterprises 7,855 107 (484) 7,478 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,039 — (2,752) 16,287 Corporate bonds 8,832 60 — 8,892 Total investment securities available for sale $ 41,104 $ 167 $ (3,287) $ 37,984 September 30, 2024 Amortized Gross Gross Fair ACL Investment securities held to maturity: Corporate bonds $ 2,500 $ — $ (179) $ 2,321 $ 13 Total investment securities held to maturity $ 2,500 $ — $ (179) $ 2,321 $ 13 December 31, 2023 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 8,041 $ 6 $ (114) $ 7,933 Mortgage-backed securities: U.S. Government-sponsored enterprises 3,842 — (606) 3,236 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 20,382 — (3,284) 17,098 Corporate bonds 11,332 — (24) 11,308 Total investment securities available for sale $ 43,597 $ 6 $ (4,028) $ 39,575 December 31, 2023 Amortized Gross Gross Fair ACL Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 1 $ — $ — $ 1 $ — Corporate bonds 2,500 — (238) 2,262 17 Total investment securities held to maturity $ 2,501 $ — $ (238) $ 2,263 $ 17 ` The amortized cost and fair value of investment securities as of September 30, 2024 are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair One to five years $ 8,832 $ 8,892 $ 1,500 $ 1,479 Five to ten years 6,512 6,600 1,000 842 Beyond ten years 25,760 22,492 — — Total $ 41,104 $ 37,984 $ 2,500 $ 2,321 No ACL for investment securities AFS was needed at September 30, 2024 or December 31, 2023. Declines in the fair value of the AFS investment portfolio are believed by management to be unrelated to credit losses. When evaluating an investment for credit loss, management considers, among other things, the financial condition of the issuer through the review of credit ratings and, if necessary, corporate financial statements; adverse conditions specifically related to the security such as past due principal or interest; underlying assets that collateralize the debt security; other economic conditions and demographics; and the intent and ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for the investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. At September 30, 2024 , the Company did not intend to sell and believed it was not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery. As of September 30, 2024, there were no past due principal and interest payments associated with the HTM securities. The Company monitors the credit quality of debt securities held to maturity quarterly through the use of credit ratings. However, the corporate bonds that are held to maturity have no credit rating and the corporate bonds in an unrealized loss position at September 30, 2024 are not material to the financial statements. There was an ACL of $13 and $17 on corporate bonds HTM at September 30, 2024 and December 31, 2023, respectively, which was calculated based on applying the long-term historical credit loss rate for similarly rated securities. The following table presents the activity in the ACL for investment securities HTM by major security type for the three and nine months ended September 30, 2024 and September 30, 2023: For the Three Months Ended For the Nine Months Ended For the Three Months Ended For the Nine Months Ended Corporate Bonds September 30, 2024 September 30, 2023 Balance at beginning of period $ 14 $ 17 $ 19 $ — Impact of adopting ASC 326 — — — 18 Provision for credit losses on HTM investment securities (1) (4) — 1 Investment securities charge-offs — — — — Investment securities recoveries — — — — Balance at end of period $ 13 $ 13 $ 19 $ 19 The following table summarizes investment securities with unrealized losses at September 30, 2024 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total September 30, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ 1,575 $ (3) $ 3,752 $ (48) $ 5,327 $ (51) 3 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 2,909 (484) 2,909 (484) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 16,287 (2,752) 16,287 (2,752) 7 Total investment securities available for sale $ 1,575 $ (3) $ 22,948 $ (3,284) $ 24,523 $ (3,287) 12 Investment securities held to maturity: Corporate bonds $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 Total investment securities held to maturity $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 The following table summarizes investment securities with unrealized losses at December 31, 2023 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ — $ — $ 5,967 $ (114) $ 5,967 $ (114) 2 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 3,236 (606) 3,236 (606) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 17,098 (3,284) 17,098 (3,284) 7 Corporate bonds 11,308 (24) — — 11,308 (24) 5 Total investment securities available for sale $ 11,308 $ (24) $ 26,301 $ (4,004) $ 37,609 $ (4,028) 16 Investment securities held to maturity: Corporate bonds $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3 Total investment securities held to maturity $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3 No investment securities were pledged as of September 30, 2024 or December 31, 2023, and there were no sales of investment securities during the three or nine months ended September 30, 2024 and the year ended December 31, 2023.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
LOANS	LOANS Loans HFI, at amortized cost, at September 30, 2024 and December 31, 2023 were as follows: September 30, December 31, Real estate: Residential $ 321,740 $ 264,126 Commercial 292,026 293,595 Construction and land 33,784 26,272 Commercial and industrial 200,212 177,566 Commercial and industrial - PPP 1,656 3,202 Consumer and other 92,546 47,287 Loans HFI, at amortized cost, gross 941,964 812,048 Deferred loan costs, net 18,060 14,707 Discount on government guaranteed loans sold (1) (7,880) (7,040) Premium on loans purchased, net 3,860 4,503 Allowance for credit losses (14,186) (13,497) Net loans HFI, at amortized cost $ 941,818 $ 810,721 (1) The Company allocates the retained portion of loans sold based on relative fair value of the retained portion and the sold portion, which results in a discount on the retained portion.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
ALLOWANCE FOR CREDIT LOSSES	ALLOWANCE FOR CREDIT LOSSES The following schedules present the activity in the ACL by loan segment for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Real Estate - Residential Real Estate - Commercial Real Estate - Construction and Land Commercial and Industrial Consumer and Other Total September 30, 2024 Beginning Balance $ 1,234 $ 1,864 $ 555 $ 7,714 $ 2,476 $ 13,843 Charge-offs (20) — — (2,375) (550) (2,945) Recoveries — 2 — 111 75 188 Provision (41) (3) (41) 2,855 330 3,100 Ending Balance $ 1,173 $ 1,863 $ 514 $ 8,305 $ 2,331 $ 14,186 September 30, 2023 Beginning Balance $ 2,542 $ 1,889 $ 359 $ 7,011 $ 797 $ 12,598 Charge-offs — (108) — (1,542) (875) (2,525) Recoveries 8 75 — 114 93 290 Provision 131 (298) 121 1,861 1,187 3,002 Ending Balance $ 2,681 $ 1,558 $ 480 $ 7,444 $ 1,202 $ 13,365 Real Estate - Residential Real Estate - Commercial Real Estate - Construction and Land Commercial and Industrial Consumer and Other Unallocated Total Nine Months Ended September 30, 2024 Beginning Balance $ 1,987 $ 1,818 $ 519 $ 6,579 $ 2,594 $ — $ 13,497 Charge-offs (20) (60) — (7,898) (2,299) — (10,277) Recoveries — 6 — 352 249 — 607 Provision (794) 99 (5) 9,272 1,787 — 10,359 Ending Balance $ 1,173 $ 1,863 $ 514 $ 8,305 $ 2,331 $ — $ 14,186 September 30, 2023 Beginning Balance $ 731 $ 956 $ 28 $ 6,182 $ 1,090 $ 59 $ 9,046 Impact of adopting ASC 326 1,479 613 281 1,116 (323) (59) 3,107 Charge-offs — (108) — (4,660) (2,214) — (6,982) Recoveries 8 77 — 303 219 — 607 Provision 463 20 171 4,503 2,430 — 7,587 Ending Balance $ 2,681 $ 1,558 $ 480 $ 7,444 $ 1,202 $ — $ 13,365 The ACL represents management’s best estimate of future lifetime expected losses on its HFI loan portfolio. The Company calculates its ACL by estimating expected credit losses on a collective basis for loans that share similar risk characteristics. Loans that do not share similar risk characteristics with other loans are evaluated for credit losses on an individual basis. The Company uses a combination of modeled and non-modeled approaches that incorporates current and future economic conditions to estimate lifetime expected losses on a collective basis. Individually evaluated loans are evaluated for impairment and a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the rate implicit in the original loan agreement or at the fair value of collateral adjusted for selling costs as appropriate if repayment is expected solely from the collateral. The Company uses reasonable and supportable forecasts that are developed with internal and external data. These are updated quarterly by management and utilize data from the FOMC’s median forecasts of change in national GDP and of national unemployment. The FOMC’s forecast of GDP and unemployment for the next calendar year is used in conjunction with the most recent 4 quarters of historical data from FRED (Federal Reserve Economic Data) to determine changes in certain qualitative factors used in calculating loss rates. See Note 1 and Note 5 of the Notes to Consolidated Financial Statements for further discussion of the Company’s ACL methodology in the December 31, 2023 Form 10-K. The Company maintains a separate ACL for its off-balance sheet unfunded loan commitments. The ACL on unfunded loan commitments is based on estimates of probability that these commitments will be drawn upon according to historical utilization experience, expected loss severity and loss rates as determined for pooled funded loans. As of September 30, 2024 and December 31, 2023, the ACL for unfunded commitments recorded in other liabilities was $664 and $839, respectively. The following table presents the activity in the ACL for unfunded commitments for the three and nine months ended September 30, 2024 and September 30, 2023: For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Balance at beginning of period $ 641 $ 844 $ 839 $ 511 Impact of adopting ASC 326 — — — 213 Provision for credit losses on unfunded commitments 23 — (175) 120 Unfunded commitments charge-offs — — — — Unfunded commitments recoveries — — — — Balance at end of period $ 664 $ 844 $ 664 $ 844 The following tables present the principal balance of nonaccrual loans and loans past due over 89 days still on accrual by loan segment at September 30, 2024 and December 31, 2023. In the following tables, the principal balance does not include the government guaranteed balance or loans measured at fair value. September 30, 2024 Nonaccrual with no ACL (1) Nonaccrual with ACL (1) Loans Past Due Over 89 Days Still Accruing (1) Real estate - residential $ — $ 4,838 $ 233 Real estate - commercial — 4,207 — Commercial and industrial — 1,429 3 Consumer and other — — 282 Total $ — $ 10,474 $ 518 December 31, 2023 Nonaccrual with no ACL (1) Nonaccrual with ACL (1) Loans Past Due Over 89 Days Still Accruing (1) Real estate - residential $ — $ 4,654 $ 583 Real estate - commercial — 1,159 — Commercial and industrial — 1,587 — Consumer and other — — 282 Total $ — $ 7,400 $ 865 (1) Excludes loans measured at fair value. See Note 6. Fair Value for additional information . A financial asset is considered collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraised value. As of September 30, 2024 there were no loans individually evaluated. The following table presents the principal balance of individually analyzed collateral dependent loans by loan portfolio segment as of December 31, 2023: December 31, 2023 Type of Collateral ACL Business Assets Commercial and industrial $ 390 $ 255 The following table presents the aging of the principal balance of past due loans HFI at amortized cost at September 30, 2024 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 1,926 $ 5,070 $ 6,996 $ 314,744 $ 321,740 Real estate - commercial 499 4,108 4,607 287,419 292,026 Real estate - construction and land — — — 33,784 33,784 Commercial and industrial 3,332 1,228 4,560 195,652 200,212 Commercial and industrial - PPP — — — 1,656 1,656 Consumer and other 747 282 1,029 91,517 92,546 Total $ 6,504 $ 10,688 $ 17,192 $ 924,772 $ 941,964 (1) $1,733 of balances 30-89 days past due and $4,252 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guarantee. Of those loans, $1,228 of commercial and industrial PPP loans were delinquent as of September 30, 2024. The following table presents the aging of the principal balance of past due loans HFI at amortized cost at December 31, 2023 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 1,840 $ 5,184 $ 7,024 $ 257,102 $ 264,126 Real estate - commercial 2,870 791 3,661 289,934 293,595 Real estate - construction and land — — — 26,272 26,272 Commercial and industrial 3,970 603 4,573 172,993 177,566 Commercial and industrial - PPP — — — 3,202 3,202 Consumer and other 1,221 282 1,503 45,784 47,287 Total $ 9,901 $ 6,860 $ 16,761 $ 795,287 $ 812,048 (1) $1,469 of balances 30-89 days past due and $638 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guarantee. Of those loans, $261 of commercial and industrial PPP loans were delinquent as of December 31, 2023. Modifications to Borrowers Experiencing Financial Difficulty For the three and nine months ended September 30, 2024 and the year ended December 31, 2023 , there were no loan modifications to borrowers experiencing financial difficulty and no loan modifications that subsequently defaulted during the period. Credit Quality Indicators Internal risk-rating grades are assigned to loans by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other statistics and factors such as delinquency, to track the migration performance of the portfolio balances. This analysis is performed at least annually. The Bank uses the following definitions for its risk ratings: Pass – Loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk. Special Mention – These credits have potential weaknesses that may, if not checked or corrected, weaken the asset, or inadequately protect the Company’s position at some future date. These assets pose elevated risk, but their weakness does not yet justify a “Substandard” classification. Substandard – These loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful – These loans have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The table below sets forth principal balance for the commercial loan portfolio disaggregated by loan segment based on internally assigned risk ratings at September 30, 2024 and gross write offs for the nine months ended September 30, 2024: Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Real estate - commercial Risk Rating Pass $ 40,742 $ 67,755 $ 71,376 $ 47,918 $ 53,626 $ 2,528 $ — $ 283,945 Special mention 154 814 2,368 117 410 10 — 3,873 Substandard — 2,971 291 99 847 — — 4,208 Doubtful — — — — — — — — Total real estate - commercial loans, at amortized cost, gross 40,896 71,540 74,035 48,134 54,883 2,538 — 292,026 Gross write offs — — 60 — — — — 60 Real estate - construction and land Risk Rating Pass 1,951 19,747 9,245 2,841 — — — 33,784 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total real estate - construction and land loans, at amortized cost, gross 1,951 19,747 9,245 2,841 — — — 33,784 Gross write offs — — — — — — — — Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass 51,316 42,657 35,791 11,170 39,896 9,057 — 189,887 Special mention 215 1,994 2,268 626 3,739 — — 8,842 Substandard — 42 459 11 971 — — 1,483 Doubtful — — — — — — — — Total commercial and industrial loans, at amortized cost, gross 51,531 44,693 38,518 11,807 44,606 9,057 — 200,212 Gross write offs — 2,533 2,572 317 2,476 — — 7,898 Commercial and industrial - PPP Risk Rating Pass — — — 223 434 — — 657 Special mention — — — — 999 — — 999 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial and industrial - PPP loans, at amortized cost, gross — — — 223 1,433 — — 1,656 Gross write offs — — — — — — — — The table below sets forth principal balance for the commercial loan portfolio disaggregated by loan segment based on internally assigned risk ratings at December 31, 2023 and gross write offs for the year ended December 31, 2023 : Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - commercial Risk Rating Pass $ 94,092 $ 79,712 $ 50,985 $ 64,648 $ 2,439 $ — $ 291,876 Special mention — 482 78 — — — 560 Substandard — 195 31 933 — — 1,159 Doubtful — — — — — — — Total real estate - commercial loans, at amortized cost, gross 94,092 80,389 51,094 65,581 2,439 — 293,595 Gross write offs — 101 — 7 — — 108 Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - construction and land Risk Rating Pass 11,366 12,755 2,151 — — — 26,272 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total real estate - construction and land loans, at amortized cost, gross 11,366 12,755 2,151 — — — 26,272 Gross write offs — — — — — — — Commercial and industrial Risk Rating Pass 51,212 45,325 13,807 54,003 10,750 — 175,097 Special mention — 150 43 671 — — 864 Substandard — 1,004 14 587 — — 1,605 Doubtful — — — — — — — Total commercial and industrial loans, at amortized cost, gross 51,212 46,479 13,864 55,261 10,750 — 177,566 Gross write offs 325 1,543 259 4,113 — — 6,240 Commercial and industrial - PPP Risk Rating Pass — — 135 3,067 — — 3,202 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total commercial and industrial - PPP loans, at amortized cost, gross — — 135 3,067 — — 3,202 Gross write offs — — — 223 — — 223 The Company considers the performance of the loan portfolio to determine its impact on the ACL. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan by payment activity. The following table presents the principal balance at September 30, 2024 in residential and consumer loans based on payment activity as well as gross write offs for the nine months ended September 30, 2024. Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Real estate - residential Payment Performance Performing $ 31,743 $ 28,410 $ 84,265 $ 23,020 $ 17,892 $ 131,339 $ — $ 316,669 Nonperforming — — 814 132 2,949 1,176 — 5,071 Total real estate - residential loans, at amortized cost, gross 31,743 28,410 85,079 23,152 20,841 132,515 — 321,740 Gross write offs — — — — 20 — — 20 Consumer and other Payment Performance Performing 56,112 22,437 11,635 701 156 1,223 — 92,264 Nonperforming 32 16 234 — — — — 282 Total consumer and other loans, at amortized cost, gross 56,144 22,453 11,869 701 156 1,223 — 92,546 Gross write offs — 228 1,888 33 150 — — 2,299 The following table presents the principal balance at December 31, 2023 in residential and consumer loans based on payment activity as well as gross write offs for the year ended December 31, 2023. Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - residential Payment Performance Performing $ 31,377 $ 83,951 $ 24,524 $ 19,709 $ 99,328 $ — $ 258,889 Nonperforming — 1,197 286 2,951 803 — 5,237 Total real estate - residential loans, at amortized cost, gross 31,377 85,148 24,810 22,660 100,131 — 264,126 Gross write offs — — — — — — — Consumer and other Payment Performance Performing 25,491 19,390 930 204 990 — 47,005 Nonperforming — 258 24 — — — 282 Total consumer and other loans, at amortized cost, gross 25,491 19,648 954 204 990 — 47,287 Gross write offs 79 3,182 11 8 — — 3,280

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at 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, and 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. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Available for Sale : The fair values of investment securities available for sale are determined by matrix pricing, which is a mathematical technique used to value debt securities without relying exclusively on quoted prices for the specific investment securities, but rather by relying on the investment securities’ relationship to other benchmark quoted investment securities (Level 2). Management obtains the fair values of investment securities available for sale on a monthly basis from a third party pricing service. Government Guaranteed Loans HFI, at Fair Value : The Company has elected to account for certain government guaranteed loans HFI at fair value. Fair value is calculated based on the present value of estimated future payments (Level 3). The valuation model uses interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future payments. Whenever available, the present value is validated against available market data. Individually Evaluated Loans : Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the ACL. Loans are considered collateral dependent when the Company has determined that foreclosure of the collateral is probable or when a borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of collateral. A collateral dependent loan’s ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan’s collateral is determined by appraisals, independent valuation, or management’s estimation of fair value which is then adjusted for the cost related to liquidation of the collateral. Collateral dependent loans are generally classified as Level 3 based on management’s judgment and estimation. Other Real Estate Owned : Other real estate owned assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate owned and, subsequently, continue to be measured and carried at the lower of cost or fair value. The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management compares the best-efforts price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraised value to arrive at fair value. Repossessed Assets : Repossessed assets are recorded at the lower of cost or fair value upon the transfer of a loan to repossessed assets . The fair value of a repossessed asset, upon initial recognition, is estimated using a market approach or based on observable market data, such as a current appraisal, recent sale price of similar assets, or assumptions specific to the individual property or equipment, such as management applied discounts used to further reduce values to a net realizable value when observable inputs become stale. Government Guaranteed Loan Servicing Rights : The fair value of government guaranteed loan servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. There were no government guaranteed loan servicing rights carried at fair value at September 30, 2024 and December 31, 2023. On a quarterly basis, government guaranteed loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the cost. If the carrying amount exceeds fair value, impairment is recorded. Assets measured at fair value on a recurring basis at September 30, 2024 are summarized below. There were no liabilities carried at fair value on a recurring basis at September 30, 2024. Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 37,984 $ — $ 37,984 Government guaranteed loans HFI, at fair value — — 86,441 86,441 Assets measured at fair value on a recurring basis at December 31, 2023 are summarized below. There were no liabilities carried at fair value on a recurring basis at December 31, 2023. Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 39,575 $ — $ 39,575 Government guaranteed loans HFI, at fair value — — 91,508 91,508 There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during the reported periods. Financial Instruments Recorded Using Fair Value Option The Company also elected the fair value option for certain of its government guaranteed loans HFI as the Company believed that fair value was the best indicator of the resolution of those loans at that time. Depending on market conditions and liquidity needs of the Company, management determines whether it is advantageous to hold or sell government guaranteed loans on a loan-by-loan basis. The portion of these loans guaranteed by the government are generally readily marketable in the secondary market and the portion of the loans that are not guaranteed may be sold periodically to other third party financial institutions. Interest income on these loans is recorded based on the contractual term of the loan and in accordance with the Company’s policy on other loans HFI. The following tables provide more information about the fair value carrying amount and the unpaid principal outstanding of HFI government guaranteed loans measured at fair value at September 30, 2024 and December 31, 2023. September 30, 2024 Total Loans Nonaccrual (1) 90 Days or More Past Due (1) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Real estate - commercial $ 16,424 $ 16,476 $ (52) $ — $ — $ — $ — $ — $ — Commercial and industrial 70,017 68,494 1,523 1,559 1,992 (433) — — — Total loans HFI, at fair value $ 86,441 $ 84,970 $ 1,471 $ 1,559 $ 1,992 $ (433) $ — $ — $ — December 31, 2023 Total Loans Nonaccrual (1) 90 Days or More Past Due (1) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Real estate - commercial $ 19,219 $ 19,156 $ 63 $ — $ — $ — $ — $ — $ — Commercial and industrial 72,289 68,777 3,512 485 585 (100) 162 182 (20) Total loans HFI, at fair value $ 91,508 $ 87,933 $ 3,575 $ 485 $ 585 $ (100) $ 162 $ 182 $ (20) (1) The nonaccrual and 90 days or more past due loan balances do not include the portion of government guaranteed loan balances. The total amount of net gains and losses from changes in fair value and interest income included in earnings for the nine months ended September 30, 2024 and September 30, 2023 for government guaranteed loans HFI, at fair value, were as follows: Nine Months Ended September 30, 2024 2023 Interest income $ 5,978 $ 3,151 Change in fair value 9,923 11,021 Total gain, net $ 15,901 $ 14,172 Changes in fair value for government guaranteed loans HFI, at fair value, were included in Government guaranteed loans fair value gain on the Consolidated Statements of Income. The table below presents a reconciliation of government guaranteed loans HFI, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the nine months ended September 30, 2024 and September 30, 2023: Nine Months Ended September 30, 2024 2023 Balance of government guaranteed loans HFI at fair value, beginning of period $ 91,508 $ 27,078 New government guaranteed originations at fair value 105,754 143,535 Loans sold (116,977) (90,120) Principal payments (3,767) (7,336) Charge-offs — — Total fair value gains during the period 9,923 11,021 Balance of government guaranteed loans HFI at fair value, end of period $ 86,441 $ 84,178 The Company’s valuation of government guaranteed loans HFI, at fair value, was supported by an analysis prepared by an independent third party and approved by management. The approach to determine fair value involved several steps: 1) identifying each loan’s unique characteristics, including balance, payment type, term, coupon, age, and principal and interest payment; 2) projecting these loan level characteristics for the life of each loan; and 3) performing discounted cash flow modeling. The following table provides information about the valuation techniques and unobservable inputs used in the valuation of government guaranteed loans HFI that fall within Level 3 of the fair value hierarchy at September 30, 2024 and December 31, 2023: Fair Value Valuation Unobservable Inputs Range (Weighted Average) September 30, 2024 Government guaranteed loans HFI, at fair value $ 86,441 Discounted Discount rate 6.56%-9.94% (8.51%) cash flow Conditional prepayment rate 10.87%-12.63% (12.09%) December 31, 2023 Government guaranteed loans HFI, at fair value $ 91,508 Discounted Discount rate 7.36%-10.86% (8.74%) cash flow Conditional prepayment rate 10.38%-15.69% (13.91%) The significant unobservable inputs impacting the fair value measurement of government guaranteed loans HFI, at fair value, include discount rates and conditional prepayment rates. Increases in discount rates or prepayment rates would result in a lower fair value measurement. Although the prepayment rate and discount rate are not directly interrelated, they generally move in opposite directions. The discount rates and conditional prepayment rates were weighted by the relative principal balance outstanding of these loans. Assets measured at fair value on a nonrecurring basis (Level 3) at September 30, 2024 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Amount Repossessed assets $ 94 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Assets measured at fair value on a nonrecurring basis (Level 3) at December 31, 2023 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Amount Individually evaluated loans $ 135 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Fair Value of Financial Instruments The carrying values and estimated fair values of financial instruments not carried at fair value, at September 30, 2024 and December 31, 2023 are as follows: September 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 1 $ 64,383 $ 64,383 $ 58,385 $ 58,385 Time deposits in banks 2 2,264 2,228 4,646 4,561 Investment securities held to maturity 2 2,487 2,321 2,484 2,263 Nonmarketable equity securities, at cost 2 4,997 4,997 4,770 4,770 Government guaranteed loans held for sale 2 595 667 — — Loans HFI, at amortized cost 3 941,818 937,576 810,721 786,350 Accrued interest receivable 2 8,537 8,537 7,130 7,130 Government guaranteed loan servicing rights 3 15,966 18,596 14,959 16,318 Liabilities: Noninterest-bearing deposits 2 $ 95,995 $ 95,995 $ 93,708 $ 93,708 Interest-bearing transaction accounts 2 247,923 247,923 259,422 259,422 Savings and money market deposits 2 455,297 455,297 373,000 373,000 Time deposits 2 312,981 313,339 259,008 255,372 FHLB borrowings 2 10,000 10,000 10,000 10,000 Subordinated debentures 2 5,954 5,485 5,949 5,215 Notes payable 2 2,048 2,031 2,389 2,369 Accrued interest payable 2 1,114 1,114 882 882

GOVERNMENT GUARANTEED LOAN SERV

GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES	9 Months Ended
	Sep. 30, 2024
Transfers and Servicing [Abstract]
GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES	GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES At September 30, 2024 and December 31, 2023, the principal balance of government guaranteed loans, excluding PPP loans, retained by the Company was $395,155 and $395,877, respectively, of which $155,345 and $181,459 represented the guaranteed portion of the loans. Loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of government guaranteed loans serviced for others requiring recognition of a servicing asset were $1,009,797 and $855,756 at September 30, 2024 and December 31, 2023, respectively. Activity for government guaranteed loan servicing rights for the three and nine months ended September 30, 2024 and September 30, 2023 follows: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Beginning of period $ 15,770 $ 12,820 $ 14,959 $ 10,906 Additions 1,704 2,543 5,396 6,390 Amortization (1,508) (1,147) (4,389) (3,080) End of period $ 15,966 $ 14,216 $ 15,966 $ 14,216 The fair value of government guaranteed loan servicing rights was $18,596 and $16,318 at September 30, 2024 and December 31, 2023, respectively. Fair value was determined using a weighted average discount rate of 13.75% and a weighted average prepayment speed of 13.16% at September 30, 2024. Fair value was determined using a weighted average discount rate of 14.50% and a weighted average prepayment speed of 11.42% at December 31, 2023. The government guaranteed loan servicing rights are amortized over the life of a loan on a loan-by-loan basis. The following table presents the components of net gain on sale of government guaranteed loans for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Gain on sale of guaranteed portion of government guaranteed loans $ 4,439 $ 4,596 $ 14,431 $ 11,998 Loss on sale of unguaranteed portion of government guaranteed loans — — — (797) Costs recognized on sale of government guaranteed loans — — — (15) Fair value of loan servicing rights created 1,704 2,543 5,396 6,390 Gain on sale of government guaranteed loans, net $ 6,143 $ 7,139 $ 19,827 $ 17,576

LEASES

LEASES	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
LEASES	LEASES For the three and nine months ended September 30, 2024 and September 30, 2023, the components of total lease cost and supplemental information related to operating leases were as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Operating lease cost $ 202 $ 509 $ 699 $ 1,097 Short-term lease cost 30 (224) 102 (204) Total lease cost, net (1) $ 232 $ 285 $ 801 $ 893 (1) Includes lease costs reported as discontinued operations of $0 and $44 for the three months ended September 30, 2024 and September 30, 2023, respectively, and $131 for the nine months ended September 30, 2024 and September 30, 2023. Three Months Ended Nine Months Ended 2024 2023 2024 2023 Cash flows related to operating lease liabilities $ 151 $ 281 $ 600 $ 965 Right-of-use assets obtained in exchange for new operating lease liabilities — — 263 — At September 30, 2024, the weighted average discount rate of operating leases was 2.93% and the weighted average remaining life of operating leases was 2.70 years. The future minimum lease payments for operating leases, subsequent to September 30, 2024, as recorded on the balance sheet, are summarized as follows: 2024 $ 157 2025 896 2026 857 2027 440 2028 — Thereafter — Total undiscounted lease payments $ 2,350 Less: imputed interest (79) Net lease liabilities $ 2,271

OTHER BORROWINGS

OTHER BORROWINGS	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
OTHER BORROWINGS	OTHER BORROWINGS At September 30, 2024, the Company had $10,000 of borrowings at 5.07% from the FHLB and no borrowings from the FRB. There were $10,000 of borrowings at 5.57% from the FHLB and no borrowings from the FRB at December 31, 2023. The Bank is a member of the FHLB of Atlanta, which provides short- and long-term funding collateralized by mortgage-related assets to its members. FHLB short-term borrowings be ar interest at variable rates set by the FHLB. Any a dvances that the bank were to obtain would be secured by a blanket lien on $331,918 of real estate-related loans as of September 30, 2024. Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to $170,668 from the FHLB at September 30, 2024. In addition, the Bank has a secured line of credit with the Federal Reserve Bank of Atlanta which was secured by $60,831 of commercial loans as of September 30, 2024. FRB short-term borrowings bear interest at variable rates based on the FOMC's target range for the federal funds rate. Based on this collateral, the Company was eligible to borrow up to $42,955 from the FRB at September 30, 2024. The Company has $6,000 of Subordinated Debentures (the “Debentures”) that mature June 30, 2031 and are redeemable after 5 years which is June 30, 2026. The Debentures carry interest at a fixed rate of 4.50% per annum for the initial 5 years of term and carry interest at a floating rate for the final 5 years of term after June 30, 2026. Under the debt agreements, the floating rates are based on a SOFR benchmark plus 3.78% per annum. The balance of Subordinated Debentures outstanding at the Company, net of offering costs, amounted to $5,954 and $5,949 at September 30, 2024 and December 31, 2023, respectively. The Company has a term note with quarterly principal and interest payments with interest at Prime (8.50% at September 30, 2024). The note matures on March 10, 2029 and the balance of the note was $2,048 and $2,389 at September 30, 2024 and December 31, 2023, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Equity Plan governs the Company’s restricted stock grants and stock options. Total compensation cost charged against income related to the Equity Plan was $109 and $167 for the three months ended September 30, 2024 and September 30, 2023, respectively, and $281 and $486 for the nine months ended September 30, 2024 and September 30, 2023, respectively. Restricted Stock The Company awarded shares of restricted common stock to certain employees and non-employee directors for which compensation expense is recognized ratably over the vesting period of the awards based on the fair value of the stock at issue date. A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2024 and September 30, 2023 follows: Shares Weighted-Average Nonvested at January 1, 2024 52,195 $ 18.75 Granted 30,650 11.70 Vested (29,835) (18.24) Forfeited (1,125) (16.05) Nonvested at September 30, 2024 51,885 $ 14.93 Shares Weighted-Average Nonvested at January 1, 2023 22,000 $ 21.52 Granted 46,175 18.30 Vested (13,935) (20.01) Forfeited (1,865) (19.38) Nonvested at September 30, 2023 52,375 $ 18.75 At September 30, 2024, there was $456 of total unrecognized compensation cost related to nonvested restricted shares granted under the Equity Plan that is expected to be recognized over a weighted average period of 3.0 years. The total fair value of shares vested during the nine months ended September 30, 2024 and September 30, 2023 was $359 and $252, respectively. Stock Options The Equity Plan permits the grant of stock options to the Company’s employees and non-employee directors for up to 15% of the total number of shares of Company common stock issued and outstanding, up to 1,500,000 shares. Option awards are granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. The market price of the Company’s common stock is the closing sales price of the Common Stock on Nasdaq on the date of the grant. Those option awards generally have a vesting period of 5 years for employees and 3 years for non-employee directors and have 10-year contractual terms. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatility is based on an average of historical volatility of peer financial institutions. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of the activity in the Equity Plan for the nine months ended September 30, 2024 and September 30, 2023 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2024 367,033 $ 15.68 Forfeited (2,970) (15.56) Outstanding at September 30, 2024 364,063 $ 15.57 4.92 $ — Vested and exercisable at September 30, 2024 349,385 $ 15.71 4.88 $ — Shares Weighted Weighted Aggregate Outstanding at January 1, 2023 405,688 $ 15.67 Exercised (30,375) (15.71) Forfeited (7,980) (15.51) Outstanding at September 30, 2023 367,333 $ 15.67 5.93 $ — Vested and exercisable at September 30, 2023 323,022 $ 15.79 5.78 $ — There were no options granted during the three and nine months ended September 30, 2024 or September 30, 2023. Total unrecognized compensation cost related to nonvested stock options granted under the Equity Plan was $23 at September 30, 2024. This cost is expected to be recognized over a weighted average period of 1.2 years.

OTHER BENEFIT PLANS

OTHER BENEFIT PLANS	9 Months Ended
	Sep. 30, 2024
Postemployment Benefits [Abstract]
OTHER BENEFIT PLANS	OTHER BENEFIT PLANS The Company has established a stock dividend reinvestment and stock purchase plan. Under the DRIP, eligible shareholders can voluntarily purchase stock with their dividend or can make additional stock purchases. During the nine months ended September 30, 2024, there were no shares issued. During the nine months ended September 30, 2023, 10,589 shares were issued at an average of $14.98 per share. All employees and Directors are eligible to participate in the NSPP. Expense recognized in relation to the NSPP for the nine months ended September 30, 2024 and September 30, 2023 was $18 and $20, respectively. The Company has a Salary Continuation Agreement (the “Agreement”) with the Company’s retired CEO. In accordance with the Agreement, the executive will receive an annual benefit of $25 for twenty years following separation of service. The liability recorded for the Agreement was $324 and $351 at September 30, 2024 and December 31, 2023, respectively, and the related benefit for the nine months ended September 30, 2024 was $3 and the related expense for the nine months ended September 30, 2023 was $11. Payments began in July 2024 as a result of the retirement of the CEO on December 31, 2023. The Company has a 401(k) plan that covers all employees subject to certain age and service requirements. The Company contributes 3% of each employee’s salary each pay period as a safe harbor contribution. The Company may also match employee contributions each year at the discretion of the Board of Directors. There was no match of contributions in 2023. Expense recognized in relation to the 401(k) plan was $749 and $678 for the nine months ended September 30, 2024 and September 30, 2023, respectively. The Company has an ESOP for eligible employees. Each year, the Company’s Board of Directors may approve a discretionary percentage of employees’ salaries to be contributed to the ESOP for eligible employees. In 2021, the ESOP trust acquired 14,154 shares of the Company’s stock. As this is a leveraged plan, unallocated shares are distributed to employees annually. There were 8,493 unallocated shares with a fair value of $112 and 11,323 unallocated shares with a fair value of $127 remaining as of September 30, 2024 and September 30, 2023, respectively . The ESOP trust’s outstanding loan, which is secured by the unallocated shares, bears a fixed interest rate equal to the Prime Rate as of the note date, which was 3.25%. The note requires an annual payment of principal and interest through December 2026. The Company’s ESOP, which is internally leveraged, does not report the loan receivable extended to the ESOP as an asset and does not report the ESOP debt due to the Company. The discontinuation of the nationwide residential lending division during 2022 triggered a partial plan termination and all affected employees were 100% vested in the Company’s contributions into the ESOP. As a result of the exit of affected participants from the plan, the plan acquired 23,383 shares of the Company’s stock. As this is a leveraged plan, unallocated shares are distributed to employees annually. There were 18,706 unallocated shares with a fair value of $246 and 23,383 unallocated shares with a fair value of $263 remaining as of September 30, 2024 and September 30, 2023, respectively . The ESOP trust was issued a five year loan bearing an interest rate equal to the Prime Rate as of the note date, which was 8.25% and adjusts annually as of the first day of each succeeding calendar year to reflect the Prime Rate as of the first business day of the calendar year. The note requires an annual payment of principal and interest through December 2027. The Company’s ESOP, which is internally leveraged, does not report the loan receivable extended to the ESOP as an asset and does not report the ESOP debt due to the Company.

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
	Sep. 30, 2024
Banking And Thrift Disclsoure [Abstract]
REGULATORY MATTERS	REGULATORY 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. Management believes that the Bank met all capital adequacy requirements to which it was subject at September 30, 2024 and December 31, 2023. 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 September 30, 2024 and December 31, 2023, 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 classification. In February 2019, the federal bank regulatory agencies issued a final rule that revised certain capital regulations under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and included a transition option that allows banking organizations to phase in, over a three year period, the day one adverse effects of adoption on their regulatory capital ratios (three year transition option). In connection with the adoption of ASC 326 on January 1, 2023, the Company recognized an after-tax cumulative effect reduction to retained earnings. The Company elected to adopt the three year transition option and the deferral has been applied in capital ratios presented below. Actual and required capital amounts and ratios for the Bank are presented below at September 30, 2024: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 115,123 11.39 % $ 80,848 8.00 % $ 101,059 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 102,479 10.14 % $ 60,636 6.00 % $ 80,848 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 102,479 10.14 % $ 45,477 4.50 % $ 65,689 6.50 % Tier 1 Capital (to Average Assets) $ 102,479 8.41 % $ 48,768 4.00 % $ 60,960 5.00 % Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2023: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 114,256 13.03 % $ 70,169 8.00 % $ 87,711 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 103,274 11.77 % $ 52,627 6.00 % $ 70,169 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 103,274 11.77 % $ 39,470 4.50 % $ 57,012 6.50 % Tier 1 Capital (to Average Assets) $ 103,274 9.38 % $ 44,024 4.00 % $ 55,030 5.00 % Dividend Restrictions

LOAN COMMITMENTS AND OTHER RELA

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES	LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, and letters of credit, 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 that are used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance sheet risk at September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Unfunded loan commitments $ 79,412 $ 7,392 Unused lines of credit 200,109 178,440 Standby letters of credit 211 186 All unused lines of credit at September 30, 2024 and December 31, 2023 were variable rate lines of credit and the majority of unfunded loan commitments at September 30, 2024 and December 31, 2023 were commitments to fund variable rate loans. Unfunded loan commitments are generally entered into for periods of 90 days or less. The Company maintains an ACL for its off-balance sheet loan commitments which is calculated by loan type using estimated line utilization rates based on historical usage. Loss rates for outstanding loans is applied to the estimated utilization rates to calculate the ACL for off-balance sheet loan commitments. At September 30, 2024 and December 31, 2023, ACL for off-balance sheet loan commitments totaled $664 and $839 ,

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic: Income from continuing operations $ 1,137 $ 1,970 $ 2,896 $ 4,254 Loss from discontinued operations — (47) (69) (207) Net income 1,137 1,923 2,827 4,047 Less: Preferred stock dividends 385 208 1,156 624 Net income available to common shareholders $ 752 $ 1,715 $ 1,671 $ 3,423 Weighted average common shares outstanding 4,134,169 4,105,014 4,133,082 4,096,584 Basic earnings (loss) per common share: Continuing operations $ 0.18 $ 0.43 $ 0.42 $ 0.89 Discontinued operations — (0.01) (0.02) (0.05) Total $ 0.18 $ 0.42 $ 0.40 $ 0.84 Diluted: Income from continuing operations $ 1,137 $ 1,970 $ 2,896 $ 4,254 Loss from discontinued operations — (47) (69) (207) Net income 1,137 1,923 2,827 4,047 Less: Preferred stock dividends 385 208 1,156 624 Add: Series B preferred stock and preferred C stock dividends — 64 — 193 Net income available to common shareholders $ 752 $ 1,779 $ 1,671 $ 3,616 Weighted average common shares outstanding for basic earnings per common share 4,134,169 4,105,014 4,133,082 4,096,584 Add: Dilutive effects of conversion of Series B preferred stock and Preferred C to common stock — 250,690 — 253,626 Add: Dilutive effects of assumed exercises of stock options and warrants — — — 4,098 Average shares and dilutive potential common shares 4,134,169 4,355,704 4,133,082 4,354,308 Diluted earnings (loss) per common share: Continuing operations $ 0.18 $ 0.42 $ 0.42 $ 0.88 Discontinued operations — (0.01) (0.02) (0.05) Total $ 0.18 $ 0.41 $ 0.40 $ 0.83 The following securities outstanding at September 30, 2024 and September 30, 2023 have been excluded from the calculation of weighted average shares outstanding as their effect on the calculation of earnings (loss) per share are antidilutive: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Common stock options 364,576 367,461 365,680 374,802 Convertible Series B preferred stock 3,210 0 3,210 0 Convertible Series C preferred stock 6,446 0 6,446 0

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements include BayFirst Financial Corp. and its wholly owned subsidiary, BayFirst National Bank, together referred to as “the Company”. These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles followed within the financial services industry for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. The consolidated balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements of BayFirst Financial Corp. for that date.
Segment Reporting	The Company currently operates one business segment. In the third quarter of 2022, the Company discontinued the Bank’s nationwide residential mortgage loan segment. The operations of this segment are reported as discontinued operations.
Use of Estimates	Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The most significant estimates relate to the ACL, government guaranteed loan servicing rights, and fair value of government guaranteed loans HFI.
Contingencies	Contingencies :
New Accounting Standards Not Yet Adopted	New Accounting Standards Not Yet Adopted : In October 2023, the FASB issued ASU No. 2023-06 “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company does not believe this standard will have a material impact on its Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The Company does not expect it to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures ("ASU 2023-09"). This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Retrospective application in all prior periods is permitted. The amendments in this standard will be effective for the Company on January 1, 2025. The Company is currently assessing the impact of this standard and does not expect it to have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Disaggregation of Income Statement Expenses Disclosure (“ASU 2024-03”). This ASU was issued to improve the disclosures about public business entity’s expenses and address investor’s requests for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2027 and subsequent interim periods. The amendments should be applied either prospectively to the financial statements issued for reporting periods after the effective date of this update or retrospectively to any and all prior periods presented in the financial statements. We are currently evaluating the impact these changes may have on the Company’s consolidated financial statements.
Fair Value	Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at 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, and 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. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Available for Sale : The fair values of investment securities available for sale are determined by matrix pricing, which is a mathematical technique used to value debt securities without relying exclusively on quoted prices for the specific investment securities, but rather by relying on the investment securities’ relationship to other benchmark quoted investment securities (Level 2). Management obtains the fair values of investment securities available for sale on a monthly basis from a third party pricing service. Government Guaranteed Loans HFI, at Fair Value : The Company has elected to account for certain government guaranteed loans HFI at fair value. Fair value is calculated based on the present value of estimated future payments (Level 3). The valuation model uses interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future payments. Whenever available, the present value is validated against available market data. Individually Evaluated Loans : Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the ACL. Loans are considered collateral dependent when the Company has determined that foreclosure of the collateral is probable or when a borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of collateral. A collateral dependent loan’s ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan’s collateral is determined by appraisals, independent valuation, or management’s estimation of fair value which is then adjusted for the cost related to liquidation of the collateral. Collateral dependent loans are generally classified as Level 3 based on management’s judgment and estimation. Other Real Estate Owned : Other real estate owned assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate owned and, subsequently, continue to be measured and carried at the lower of cost or fair value. The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management compares the best-efforts price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraised value to arrive at fair value. Repossessed Assets : Repossessed assets are recorded at the lower of cost or fair value upon the transfer of a loan to repossessed assets . The fair value of a repossessed asset, upon initial recognition, is estimated using a market approach or based on observable market data, such as a current appraisal, recent sale price of similar assets, or assumptions specific to the individual property or equipment, such as management applied discounts used to further reduce values to a net realizable value when observable inputs become stale. Government Guaranteed Loan Servicing Rights

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations of the Residential Mortgage Lending Division	The following is a summary of the assets and liabilities of the discontinued operations of the residential mortgage lending division at September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Assets Right-of-use operating lease asset $ — $ 348 Total assets $ — $ 348 Liabilities Operating lease liability $ — $ 620 Total liabilities $ — $ 620 The following presents operating results of the discontinued operations of the residential mortgage lending division for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest income $ — $ — $ — $ 1 Noninterest income — — 51 (2) Total net revenue — — 51 (1) Noninterest expense — 62 143 274 Loss from discontinued operations before income taxes — (62) (92) (275) Income tax benefit — (15) (23) (68) Net loss from discontinued operations $ — $ (47) $ (69) $ (207)

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Securities Available for Sale	The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at September 30, 2024 and December 31, 2023 as well as the ACL for investment securities held to maturity at September 30, 2024 and December 31, 2023 are summarized as follows: September 30, 2024 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 5,378 $ — $ (51) $ 5,327 Mortgage-backed securities: U.S. Government-sponsored enterprises 7,855 107 (484) 7,478 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,039 — (2,752) 16,287 Corporate bonds 8,832 60 — 8,892 Total investment securities available for sale $ 41,104 $ 167 $ (3,287) $ 37,984 September 30, 2024 Amortized Gross Gross Fair ACL Investment securities held to maturity: Corporate bonds $ 2,500 $ — $ (179) $ 2,321 $ 13 Total investment securities held to maturity $ 2,500 $ — $ (179) $ 2,321 $ 13 December 31, 2023 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 8,041 $ 6 $ (114) $ 7,933 Mortgage-backed securities: U.S. Government-sponsored enterprises 3,842 — (606) 3,236 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 20,382 — (3,284) 17,098 Corporate bonds 11,332 — (24) 11,308 Total investment securities available for sale $ 43,597 $ 6 $ (4,028) $ 39,575 December 31, 2023 Amortized Gross Gross Fair ACL Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 1 $ — $ — $ 1 $ — Corporate bonds 2,500 — (238) 2,262 17 Total investment securities held to maturity $ 2,501 $ — $ (238) $ 2,263 $ 17 `
Schedule of Securities Held to Maturity	The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at September 30, 2024 and December 31, 2023 as well as the ACL for investment securities held to maturity at September 30, 2024 and December 31, 2023 are summarized as follows: September 30, 2024 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 5,378 $ — $ (51) $ 5,327 Mortgage-backed securities: U.S. Government-sponsored enterprises 7,855 107 (484) 7,478 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,039 — (2,752) 16,287 Corporate bonds 8,832 60 — 8,892 Total investment securities available for sale $ 41,104 $ 167 $ (3,287) $ 37,984 September 30, 2024 Amortized Gross Gross Fair ACL Investment securities held to maturity: Corporate bonds $ 2,500 $ — $ (179) $ 2,321 $ 13 Total investment securities held to maturity $ 2,500 $ — $ (179) $ 2,321 $ 13 December 31, 2023 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 8,041 $ 6 $ (114) $ 7,933 Mortgage-backed securities: U.S. Government-sponsored enterprises 3,842 — (606) 3,236 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 20,382 — (3,284) 17,098 Corporate bonds 11,332 — (24) 11,308 Total investment securities available for sale $ 43,597 $ 6 $ (4,028) $ 39,575 December 31, 2023 Amortized Gross Gross Fair ACL Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 1 $ — $ — $ 1 $ — Corporate bonds 2,500 — (238) 2,262 17 Total investment securities held to maturity $ 2,501 $ — $ (238) $ 2,263 $ 17 ` The following table summarizes investment securities with unrealized losses at September 30, 2024 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total September 30, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ 1,575 $ (3) $ 3,752 $ (48) $ 5,327 $ (51) 3 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 2,909 (484) 2,909 (484) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 16,287 (2,752) 16,287 (2,752) 7 Total investment securities available for sale $ 1,575 $ (3) $ 22,948 $ (3,284) $ 24,523 $ (3,287) 12 Investment securities held to maturity: Corporate bonds $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 Total investment securities held to maturity $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 The following table summarizes investment securities with unrealized losses at December 31, 2023 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ — $ — $ 5,967 $ (114) $ 5,967 $ (114) 2 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 3,236 (606) 3,236 (606) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 17,098 (3,284) 17,098 (3,284) 7 Corporate bonds 11,308 (24) — — 11,308 (24) 5 Total investment securities available for sale $ 11,308 $ (24) $ 26,301 $ (4,004) $ 37,609 $ (4,028) 16 Investment securities held to maturity: Corporate bonds $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3 Total investment securities held to maturity $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3
Schedule of Investments Classified by Contractual Maturity	The amortized cost and fair value of investment securities as of September 30, 2024 are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair One to five years $ 8,832 $ 8,892 $ 1,500 $ 1,479 Five to ten years 6,512 6,600 1,000 842 Beyond ten years 25,760 22,492 — — Total $ 41,104 $ 37,984 $ 2,500 $ 2,321
Schedule of Allowance for Credit Losses for Investment Securities	The following table presents the activity in the ACL for investment securities HTM by major security type for the three and nine months ended September 30, 2024 and September 30, 2023: For the Three Months Ended For the Nine Months Ended For the Three Months Ended For the Nine Months Ended Corporate Bonds September 30, 2024 September 30, 2023 Balance at beginning of period $ 14 $ 17 $ 19 $ — Impact of adopting ASC 326 — — — 18 Provision for credit losses on HTM investment securities (1) (4) — 1 Investment securities charge-offs — — — — Investment securities recoveries — — — — Balance at end of period $ 13 $ 13 $ 19 $ 19
Schedule of Investment Securities With Unrealized Losses	The following table summarizes investment securities with unrealized losses at September 30, 2024 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total September 30, 2024 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ 1,575 $ (3) $ 3,752 $ (48) $ 5,327 $ (51) 3 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 2,909 (484) 2,909 (484) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 16,287 (2,752) 16,287 (2,752) 7 Total investment securities available for sale $ 1,575 $ (3) $ 22,948 $ (3,284) $ 24,523 $ (3,287) 12 Investment securities held to maturity: Corporate bonds $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 Total investment securities held to maturity $ 417 $ (83) $ 1,904 $ (96) $ 2,321 $ (179) 3 The following table summarizes investment securities with unrealized losses at December 31, 2023 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total December 31, 2023 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities Investment securities available for sale: Asset-backed securities $ — $ — $ 5,967 $ (114) $ 5,967 $ (114) 2 Mortgage-backed securities: U.S. Government-sponsored enterprises — — 3,236 (606) 3,236 (606) 2 Collateralized mortgage obligations: U.S. Government-sponsored enterprises — — 17,098 (3,284) 17,098 (3,284) 7 Corporate bonds 11,308 (24) — — 11,308 (24) 5 Total investment securities available for sale $ 11,308 $ (24) $ 26,301 $ (4,004) $ 37,609 $ (4,028) 16 Investment securities held to maturity: Corporate bonds $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3 Total investment securities held to maturity $ — $ — $ 2,262 $ (238) $ 2,262 $ (238) 3

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Loans HFI at Amortized Cost	Loans HFI, at amortized cost, at September 30, 2024 and December 31, 2023 were as follows: September 30, December 31, Real estate: Residential $ 321,740 $ 264,126 Commercial 292,026 293,595 Construction and land 33,784 26,272 Commercial and industrial 200,212 177,566 Commercial and industrial - PPP 1,656 3,202 Consumer and other 92,546 47,287 Loans HFI, at amortized cost, gross 941,964 812,048 Deferred loan costs, net 18,060 14,707 Discount on government guaranteed loans sold (1) (7,880) (7,040) Premium on loans purchased, net 3,860 4,503 Allowance for credit losses (14,186) (13,497) Net loans HFI, at amortized cost $ 941,818 $ 810,721 (1) The Company allocates the retained portion of loans sold based on relative fair value of the retained portion and the sold portion, which results in a discount on the retained portion.

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Allowance for Credit Losses by Loan Segment, for Unfunded Commitments and Recorded Investment in Loans by Loan Segment	The following schedules present the activity in the ACL by loan segment for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Real Estate - Residential Real Estate - Commercial Real Estate - Construction and Land Commercial and Industrial Consumer and Other Total September 30, 2024 Beginning Balance $ 1,234 $ 1,864 $ 555 $ 7,714 $ 2,476 $ 13,843 Charge-offs (20) — — (2,375) (550) (2,945) Recoveries — 2 — 111 75 188 Provision (41) (3) (41) 2,855 330 3,100 Ending Balance $ 1,173 $ 1,863 $ 514 $ 8,305 $ 2,331 $ 14,186 September 30, 2023 Beginning Balance $ 2,542 $ 1,889 $ 359 $ 7,011 $ 797 $ 12,598 Charge-offs — (108) — (1,542) (875) (2,525) Recoveries 8 75 — 114 93 290 Provision 131 (298) 121 1,861 1,187 3,002 Ending Balance $ 2,681 $ 1,558 $ 480 $ 7,444 $ 1,202 $ 13,365 Real Estate - Residential Real Estate - Commercial Real Estate - Construction and Land Commercial and Industrial Consumer and Other Unallocated Total Nine Months Ended September 30, 2024 Beginning Balance $ 1,987 $ 1,818 $ 519 $ 6,579 $ 2,594 $ — $ 13,497 Charge-offs (20) (60) — (7,898) (2,299) — (10,277) Recoveries — 6 — 352 249 — 607 Provision (794) 99 (5) 9,272 1,787 — 10,359 Ending Balance $ 1,173 $ 1,863 $ 514 $ 8,305 $ 2,331 $ — $ 14,186 September 30, 2023 Beginning Balance $ 731 $ 956 $ 28 $ 6,182 $ 1,090 $ 59 $ 9,046 Impact of adopting ASC 326 1,479 613 281 1,116 (323) (59) 3,107 Charge-offs — (108) — (4,660) (2,214) — (6,982) Recoveries 8 77 — 303 219 — 607 Provision 463 20 171 4,503 2,430 — 7,587 Ending Balance $ 2,681 $ 1,558 $ 480 $ 7,444 $ 1,202 $ — $ 13,365
Schedule of Allowance for Credit Loss on Unfunded Commitments	The following table presents the activity in the ACL for unfunded commitments for the three and nine months ended September 30, 2024 and September 30, 2023: For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Balance at beginning of period $ 641 $ 844 $ 839 $ 511 Impact of adopting ASC 326 — — — 213 Provision for credit losses on unfunded commitments 23 — (175) 120 Unfunded commitments charge-offs — — — — Unfunded commitments recoveries — — — — Balance at end of period $ 664 $ 844 $ 664 $ 844
Schedule of Recorded Investment in Nonaccrual and Loans Past Due over 89 Days Still on Accrual by Loan Segment	The following tables present the principal balance of nonaccrual loans and loans past due over 89 days still on accrual by loan segment at September 30, 2024 and December 31, 2023. In the following tables, the principal balance does not include the government guaranteed balance or loans measured at fair value. September 30, 2024 Nonaccrual with no ACL (1) Nonaccrual with ACL (1) Loans Past Due Over 89 Days Still Accruing (1) Real estate - residential $ — $ 4,838 $ 233 Real estate - commercial — 4,207 — Commercial and industrial — 1,429 3 Consumer and other — — 282 Total $ — $ 10,474 $ 518 December 31, 2023 Nonaccrual with no ACL (1) Nonaccrual with ACL (1) Loans Past Due Over 89 Days Still Accruing (1) Real estate - residential $ — $ 4,654 $ 583 Real estate - commercial — 1,159 — Commercial and industrial — 1,587 — Consumer and other — — 282 Total $ — $ 7,400 $ 865 (1) Excludes loans measured at fair value. See Note 6. Fair Value for additional information .
Schedule of Credit Exposure for the Loan Portfolio Disaggregated by Loan Segment	The following table presents the principal balance of individually analyzed collateral dependent loans by loan portfolio segment as of December 31, 2023: December 31, 2023 Type of Collateral ACL Business Assets Commercial and industrial $ 390 $ 255 The table below sets forth principal balance for the commercial loan portfolio disaggregated by loan segment based on internally assigned risk ratings at September 30, 2024 and gross write offs for the nine months ended September 30, 2024: Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Real estate - commercial Risk Rating Pass $ 40,742 $ 67,755 $ 71,376 $ 47,918 $ 53,626 $ 2,528 $ — $ 283,945 Special mention 154 814 2,368 117 410 10 — 3,873 Substandard — 2,971 291 99 847 — — 4,208 Doubtful — — — — — — — — Total real estate - commercial loans, at amortized cost, gross 40,896 71,540 74,035 48,134 54,883 2,538 — 292,026 Gross write offs — — 60 — — — — 60 Real estate - construction and land Risk Rating Pass 1,951 19,747 9,245 2,841 — — — 33,784 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total real estate - construction and land loans, at amortized cost, gross 1,951 19,747 9,245 2,841 — — — 33,784 Gross write offs — — — — — — — — Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Commercial and industrial Risk Rating Pass 51,316 42,657 35,791 11,170 39,896 9,057 — 189,887 Special mention 215 1,994 2,268 626 3,739 — — 8,842 Substandard — 42 459 11 971 — — 1,483 Doubtful — — — — — — — — Total commercial and industrial loans, at amortized cost, gross 51,531 44,693 38,518 11,807 44,606 9,057 — 200,212 Gross write offs — 2,533 2,572 317 2,476 — — 7,898 Commercial and industrial - PPP Risk Rating Pass — — — 223 434 — — 657 Special mention — — — — 999 — — 999 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial and industrial - PPP loans, at amortized cost, gross — — — 223 1,433 — — 1,656 Gross write offs — — — — — — — — The table below sets forth principal balance for the commercial loan portfolio disaggregated by loan segment based on internally assigned risk ratings at December 31, 2023 and gross write offs for the year ended December 31, 2023 : Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - commercial Risk Rating Pass $ 94,092 $ 79,712 $ 50,985 $ 64,648 $ 2,439 $ — $ 291,876 Special mention — 482 78 — — — 560 Substandard — 195 31 933 — — 1,159 Doubtful — — — — — — — Total real estate - commercial loans, at amortized cost, gross 94,092 80,389 51,094 65,581 2,439 — 293,595 Gross write offs — 101 — 7 — — 108 Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - construction and land Risk Rating Pass 11,366 12,755 2,151 — — — 26,272 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total real estate - construction and land loans, at amortized cost, gross 11,366 12,755 2,151 — — — 26,272 Gross write offs — — — — — — — Commercial and industrial Risk Rating Pass 51,212 45,325 13,807 54,003 10,750 — 175,097 Special mention — 150 43 671 — — 864 Substandard — 1,004 14 587 — — 1,605 Doubtful — — — — — — — Total commercial and industrial loans, at amortized cost, gross 51,212 46,479 13,864 55,261 10,750 — 177,566 Gross write offs 325 1,543 259 4,113 — — 6,240 Commercial and industrial - PPP Risk Rating Pass — — 135 3,067 — — 3,202 Special mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total commercial and industrial - PPP loans, at amortized cost, gross — — 135 3,067 — — 3,202 Gross write offs — — — 223 — — 223 Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2024 2023 2022 2021 Prior Cost Basis to Term Total Real estate - residential Payment Performance Performing $ 31,743 $ 28,410 $ 84,265 $ 23,020 $ 17,892 $ 131,339 $ — $ 316,669 Nonperforming — — 814 132 2,949 1,176 — 5,071 Total real estate - residential loans, at amortized cost, gross 31,743 28,410 85,079 23,152 20,841 132,515 — 321,740 Gross write offs — — — — 20 — — 20 Consumer and other Payment Performance Performing 56,112 22,437 11,635 701 156 1,223 — 92,264 Nonperforming 32 16 234 — — — — 282 Total consumer and other loans, at amortized cost, gross 56,144 22,453 11,869 701 156 1,223 — 92,546 Gross write offs — 228 1,888 33 150 — — 2,299 The following table presents the principal balance at December 31, 2023 in residential and consumer loans based on payment activity as well as gross write offs for the year ended December 31, 2023. Revolving Revolving Loans Loans Term Loans Amortized Cost Basis by Origination Year Amortized Converted 2023 2022 2021 Prior Cost Basis to Term Total Real estate - residential Payment Performance Performing $ 31,377 $ 83,951 $ 24,524 $ 19,709 $ 99,328 $ — $ 258,889 Nonperforming — 1,197 286 2,951 803 — 5,237 Total real estate - residential loans, at amortized cost, gross 31,377 85,148 24,810 22,660 100,131 — 264,126 Gross write offs — — — — — — — Consumer and other Payment Performance Performing 25,491 19,390 930 204 990 — 47,005 Nonperforming — 258 24 — — — 282 Total consumer and other loans, at amortized cost, gross 25,491 19,648 954 204 990 — 47,287 Gross write offs 79 3,182 11 8 — — 3,280
Schedule of Aging of Recorded Investment in Past Due Gross Loans at Amortized Cost	The following table presents the aging of the principal balance of past due loans HFI at amortized cost at September 30, 2024 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 1,926 $ 5,070 $ 6,996 $ 314,744 $ 321,740 Real estate - commercial 499 4,108 4,607 287,419 292,026 Real estate - construction and land — — — 33,784 33,784 Commercial and industrial 3,332 1,228 4,560 195,652 200,212 Commercial and industrial - PPP — — — 1,656 1,656 Consumer and other 747 282 1,029 91,517 92,546 Total $ 6,504 $ 10,688 $ 17,192 $ 924,772 $ 941,964 (1) $1,733 of balances 30-89 days past due and $4,252 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guarantee. Of those loans, $1,228 of commercial and industrial PPP loans were delinquent as of September 30, 2024. The following table presents the aging of the principal balance of past due loans HFI at amortized cost at December 31, 2023 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 1,840 $ 5,184 $ 7,024 $ 257,102 $ 264,126 Real estate - commercial 2,870 791 3,661 289,934 293,595 Real estate - construction and land — — — 26,272 26,272 Commercial and industrial 3,970 603 4,573 172,993 177,566 Commercial and industrial - PPP — — — 3,202 3,202 Consumer and other 1,221 282 1,503 45,784 47,287 Total $ 9,901 $ 6,860 $ 16,761 $ 795,287 $ 812,048 (1) $1,469 of balances 30-89 days past due and $638 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guarantee. Of those loans, $261 of commercial and industrial PPP loans were delinquent as of December 31, 2023.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets measured at fair value on a recurring basis at September 30, 2024 are summarized below. There were no liabilities carried at fair value on a recurring basis at September 30, 2024. Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 37,984 $ — $ 37,984 Government guaranteed loans HFI, at fair value — — 86,441 86,441 Assets measured at fair value on a recurring basis at December 31, 2023 are summarized below. There were no liabilities carried at fair value on a recurring basis at December 31, 2023. Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 39,575 $ — $ 39,575 Government guaranteed loans HFI, at fair value — — 91,508 91,508
Schedule of Fair Value for Loans	The following tables provide more information about the fair value carrying amount and the unpaid principal outstanding of HFI government guaranteed loans measured at fair value at September 30, 2024 and December 31, 2023. September 30, 2024 Total Loans Nonaccrual (1) 90 Days or More Past Due (1) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Real estate - commercial $ 16,424 $ 16,476 $ (52) $ — $ — $ — $ — $ — $ — Commercial and industrial 70,017 68,494 1,523 1,559 1,992 (433) — — — Total loans HFI, at fair value $ 86,441 $ 84,970 $ 1,471 $ 1,559 $ 1,992 $ (433) $ — $ — $ — December 31, 2023 Total Loans Nonaccrual (1) 90 Days or More Past Due (1) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Fair Value Carrying Amount Unpaid Principal Balance Fair Value Gain (Loss) Real estate - commercial $ 19,219 $ 19,156 $ 63 $ — $ — $ — $ — $ — $ — Commercial and industrial 72,289 68,777 3,512 485 585 (100) 162 182 (20) Total loans HFI, at fair value $ 91,508 $ 87,933 $ 3,575 $ 485 $ 585 $ (100) $ 162 $ 182 $ (20) (1) The nonaccrual and 90 days or more past due loan balances do not include the portion of government guaranteed loan balances. The total amount of net gains and losses from changes in fair value and interest income included in earnings for the nine months ended September 30, 2024 and September 30, 2023 for government guaranteed loans HFI, at fair value, were as follows: Nine Months Ended September 30, 2024 2023 Interest income $ 5,978 $ 3,151 Change in fair value 9,923 11,021 Total gain, net $ 15,901 $ 14,172
Schedule of Valuation Technique and Unobservable Inputs Used in the Valuation of Government Guaranteed Loans HFI, at Fair Value	The table below presents a reconciliation of government guaranteed loans HFI, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the nine months ended September 30, 2024 and September 30, 2023: Nine Months Ended September 30, 2024 2023 Balance of government guaranteed loans HFI at fair value, beginning of period $ 91,508 $ 27,078 New government guaranteed originations at fair value 105,754 143,535 Loans sold (116,977) (90,120) Principal payments (3,767) (7,336) Charge-offs — — Total fair value gains during the period 9,923 11,021 Balance of government guaranteed loans HFI at fair value, end of period $ 86,441 $ 84,178 The following table provides information about the valuation techniques and unobservable inputs used in the valuation of government guaranteed loans HFI that fall within Level 3 of the fair value hierarchy at September 30, 2024 and December 31, 2023: Fair Value Valuation Unobservable Inputs Range (Weighted Average) September 30, 2024 Government guaranteed loans HFI, at fair value $ 86,441 Discounted Discount rate 6.56%-9.94% (8.51%) cash flow Conditional prepayment rate 10.87%-12.63% (12.09%) December 31, 2023 Government guaranteed loans HFI, at fair value $ 91,508 Discounted Discount rate 7.36%-10.86% (8.74%) cash flow Conditional prepayment rate 10.38%-15.69% (13.91%)
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis	Assets measured at fair value on a nonrecurring basis (Level 3) at September 30, 2024 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Amount Repossessed assets $ 94 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Assets measured at fair value on a nonrecurring basis (Level 3) at December 31, 2023 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Amount Individually evaluated loans $ 135 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10%
Schedule of the Carrying Values and Estimated Values of Financial Instruments Not Carried at Fair Value	The carrying values and estimated fair values of financial instruments not carried at fair value, at September 30, 2024 and December 31, 2023 are as follows: September 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 1 $ 64,383 $ 64,383 $ 58,385 $ 58,385 Time deposits in banks 2 2,264 2,228 4,646 4,561 Investment securities held to maturity 2 2,487 2,321 2,484 2,263 Nonmarketable equity securities, at cost 2 4,997 4,997 4,770 4,770 Government guaranteed loans held for sale 2 595 667 — — Loans HFI, at amortized cost 3 941,818 937,576 810,721 786,350 Accrued interest receivable 2 8,537 8,537 7,130 7,130 Government guaranteed loan servicing rights 3 15,966 18,596 14,959 16,318 Liabilities: Noninterest-bearing deposits 2 $ 95,995 $ 95,995 $ 93,708 $ 93,708 Interest-bearing transaction accounts 2 247,923 247,923 259,422 259,422 Savings and money market deposits 2 455,297 455,297 373,000 373,000 Time deposits 2 312,981 313,339 259,008 255,372 FHLB borrowings 2 10,000 10,000 10,000 10,000 Subordinated debentures 2 5,954 5,485 5,949 5,215 Notes payable 2 2,048 2,031 2,389 2,369 Accrued interest payable 2 1,114 1,114 882 882

GOVERNMENT GUARANTEED LOAN SE_2

GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Transfers and Servicing [Abstract]
Schedule of Activity for Government Guaranteed Loan Servicing Rights	Activity for government guaranteed loan servicing rights for the three and nine months ended September 30, 2024 and September 30, 2023 follows: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Beginning of period $ 15,770 $ 12,820 $ 14,959 $ 10,906 Additions 1,704 2,543 5,396 6,390 Amortization (1,508) (1,147) (4,389) (3,080) End of period $ 15,966 $ 14,216 $ 15,966 $ 14,216
Schedule of Net Gain on Sale of Government Guaranteed Loans	The following table presents the components of net gain on sale of government guaranteed loans for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Gain on sale of guaranteed portion of government guaranteed loans $ 4,439 $ 4,596 $ 14,431 $ 11,998 Loss on sale of unguaranteed portion of government guaranteed loans — — — (797) Costs recognized on sale of government guaranteed loans — — — (15) Fair value of loan servicing rights created 1,704 2,543 5,396 6,390 Gain on sale of government guaranteed loans, net $ 6,143 $ 7,139 $ 19,827 $ 17,576

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Schedule of Total Lease Cost and Supplemental Information	For the three and nine months ended September 30, 2024 and September 30, 2023, the components of total lease cost and supplemental information related to operating leases were as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Operating lease cost $ 202 $ 509 $ 699 $ 1,097 Short-term lease cost 30 (224) 102 (204) Total lease cost, net (1) $ 232 $ 285 $ 801 $ 893 (1) Includes lease costs reported as discontinued operations of $0 and $44 for the three months ended September 30, 2024 and September 30, 2023, respectively, and $131 for the nine months ended September 30, 2024 and September 30, 2023. Three Months Ended Nine Months Ended 2024 2023 2024 2023 Cash flows related to operating lease liabilities $ 151 $ 281 $ 600 $ 965 Right-of-use assets obtained in exchange for new operating lease liabilities — — 263 —
Schedule of Future Minimum Lease Payments	The future minimum lease payments for operating leases, subsequent to September 30, 2024, as recorded on the balance sheet, are summarized as follows: 2024 $ 157 2025 896 2026 857 2027 440 2028 — Thereafter — Total undiscounted lease payments $ 2,350 Less: imputed interest (79) Net lease liabilities $ 2,271

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Nonvested Restricted Shares	A summary of changes in the Company’s nonvested restricted shares for the nine months ended September 30, 2024 and September 30, 2023 follows: Shares Weighted-Average Nonvested at January 1, 2024 52,195 $ 18.75 Granted 30,650 11.70 Vested (29,835) (18.24) Forfeited (1,125) (16.05) Nonvested at September 30, 2024 51,885 $ 14.93 Shares Weighted-Average Nonvested at January 1, 2023 22,000 $ 21.52 Granted 46,175 18.30 Vested (13,935) (20.01) Forfeited (1,865) (19.38) Nonvested at September 30, 2023 52,375 $ 18.75
Schedule of Activity in the Equity Plan	A summary of the activity in the Equity Plan for the nine months ended September 30, 2024 and September 30, 2023 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2024 367,033 $ 15.68 Forfeited (2,970) (15.56) Outstanding at September 30, 2024 364,063 $ 15.57 4.92 $ — Vested and exercisable at September 30, 2024 349,385 $ 15.71 4.88 $ — Shares Weighted Weighted Aggregate Outstanding at January 1, 2023 405,688 $ 15.67 Exercised (30,375) (15.71) Forfeited (7,980) (15.51) Outstanding at September 30, 2023 367,333 $ 15.67 5.93 $ — Vested and exercisable at September 30, 2023 323,022 $ 15.79 5.78 $ —

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
	Sep. 30, 2024
Banking And Thrift Disclsoure [Abstract]
Schedule of Actual and Required Capital Amounts and Ratios for the Bank	Actual and required capital amounts and ratios for the Bank are presented below at September 30, 2024: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 115,123 11.39 % $ 80,848 8.00 % $ 101,059 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 102,479 10.14 % $ 60,636 6.00 % $ 80,848 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 102,479 10.14 % $ 45,477 4.50 % $ 65,689 6.50 % Tier 1 Capital (to Average Assets) $ 102,479 8.41 % $ 48,768 4.00 % $ 60,960 5.00 % Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2023: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 114,256 13.03 % $ 70,169 8.00 % $ 87,711 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 103,274 11.77 % $ 52,627 6.00 % $ 70,169 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 103,274 11.77 % $ 39,470 4.50 % $ 57,012 6.50 % Tier 1 Capital (to Average Assets) $ 103,274 9.38 % $ 44,024 4.00 % $ 55,030 5.00 %

LOAN COMMITMENTS AND OTHER RE_2

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Financial Instruments With Off-Balance Sheet Risk	The contractual amounts of financial instruments with off-balance sheet risk at September 30, 2024 and December 31, 2023 were as follows: September 30, 2024 December 31, 2023 Unfunded loan commitments $ 79,412 $ 7,392 Unused lines of credit 200,109 178,440 Standby letters of credit 211 186

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2024 and September 30, 2023: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic: Income from continuing operations $ 1,137 $ 1,970 $ 2,896 $ 4,254 Loss from discontinued operations — (47) (69) (207) Net income 1,137 1,923 2,827 4,047 Less: Preferred stock dividends 385 208 1,156 624 Net income available to common shareholders $ 752 $ 1,715 $ 1,671 $ 3,423 Weighted average common shares outstanding 4,134,169 4,105,014 4,133,082 4,096,584 Basic earnings (loss) per common share: Continuing operations $ 0.18 $ 0.43 $ 0.42 $ 0.89 Discontinued operations — (0.01) (0.02) (0.05) Total $ 0.18 $ 0.42 $ 0.40 $ 0.84 Diluted: Income from continuing operations $ 1,137 $ 1,970 $ 2,896 $ 4,254 Loss from discontinued operations — (47) (69) (207) Net income 1,137 1,923 2,827 4,047 Less: Preferred stock dividends 385 208 1,156 624 Add: Series B preferred stock and preferred C stock dividends — 64 — 193 Net income available to common shareholders $ 752 $ 1,779 $ 1,671 $ 3,616 Weighted average common shares outstanding for basic earnings per common share 4,134,169 4,105,014 4,133,082 4,096,584 Add: Dilutive effects of conversion of Series B preferred stock and Preferred C to common stock — 250,690 — 253,626 Add: Dilutive effects of assumed exercises of stock options and warrants — — — 4,098 Average shares and dilutive potential common shares 4,134,169 4,355,704 4,133,082 4,354,308 Diluted earnings (loss) per common share: Continuing operations $ 0.18 $ 0.42 $ 0.42 $ 0.88 Discontinued operations — (0.01) (0.02) (0.05) Total $ 0.18 $ 0.41 $ 0.40 $ 0.83
Schedule of Antidilutive Securities Excluded from Calculation of Weighted Average Shares Outstanding	The following securities outstanding at September 30, 2024 and September 30, 2023 have been excluded from the calculation of weighted average shares outstanding as their effect on the calculation of earnings (loss) per share are antidilutive: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Common stock options 364,576 367,461 365,680 374,802 Convertible Series B preferred stock 3,210 0 3,210 0 Convertible Series C preferred stock 6,446 0 6,446 0

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	9 Months Ended
	Sep. 30, 2024 segment
Accounting Policies [Abstract]
Number of business segments	1

DISCONTINUED OPERATIONS - Asset

DISCONTINUED OPERATIONS - Assets and Liabilities of the Residential Mortgage Lending Division (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Total assets	$ 0	$ 348	[1]
Liabilities
Total liabilities	0	620	[1]
Discontinued Operations, Held-for-sale | Nationwide Residential Mortgage Loan Production Operations
Assets
Right-of-use operating lease asset	0	348
Total assets	0	348
Liabilities
Operating lease liability	0	620
Total liabilities	$ 0	$ 620
[1]Derived from audited consolidated financial statements

DISCONTINUED OPERATIONS - Opera

DISCONTINUED OPERATIONS - Operating Results of the Residential Mortgage Lending Division (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations before income taxes	$ 0	$ (62)	$ (92)	$ (275)
Income tax benefit	0	(15)	(23)	(68)
Net loss from discontinued operations	0	(47)	(69)	(207)
Discontinued Operations, Held-for-sale | Nationwide Residential Mortgage Loan Production Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest income	0	0	0	1
Noninterest income	0	0	51	(2)
Total net revenue	0	0	51	(1)
Noninterest expense	0	62	143	274
Loss from discontinued operations before income taxes	0	(62)	(92)	(275)
Income tax benefit	0	(15)	(23)	(68)
Net loss from discontinued operations	$ 0	$ (47)	$ (69)	$ (207)

INVESTMENT SECURITIES - Debt Se

INVESTMENT SECURITIES - Debt Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023		Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 41,104		$ 43,597
Gross Unrealized Gains	167		6
Gross Unrealized Losses	(3,287)		(4,028)
Fair Value	37,984		39,575	[1]
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	2,500		2,501
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(179)		(238)
Fair Value	2,321		2,263
ACL	13	$ 14	17		$ 19	$ 19	$ 0
Asset-backed securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	5,378		8,041
Gross Unrealized Gains	0		6
Gross Unrealized Losses	(51)		(114)
Fair Value	5,327		7,933
Mortgage-backed securities: U.S. Government-sponsored enterprises
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	7,855		3,842
Gross Unrealized Gains	107		0
Gross Unrealized Losses	(484)		(606)
Fair Value	7,478		3,236
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost			1
Gross Unrealized Gains			0
Gross Unrealized Losses			0
Fair Value			1
ACL			0
Collateralized mortgage obligations: U.S. Government-sponsored enterprises
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	19,039		20,382
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(2,752)		(3,284)
Fair Value	16,287		17,098
Corporate bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	8,832		11,332
Gross Unrealized Gains	60		0
Gross Unrealized Losses	0		(24)
Fair Value	8,892		11,308
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	2,500		2,500
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(179)		(238)
Fair Value	2,321		2,262
ACL	$ 13		$ 17
[1]Derived from audited consolidated financial statements

INVESTMENT SECURITIES - Investm

INVESTMENT SECURITIES - Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
One to five years	$ 8,832
Five to ten years	6,512
Beyond ten years	25,760
Amortized Cost	41,104	$ 43,597
Fair Value
One to five years	8,892
Five to ten years	6,600
Beyond ten years	22,492
Total	37,984	39,575	[1]
Amortized Cost
One to five years	1,500
Five to ten years	1,000
Beyond ten years	0
Amortized Cost	2,500	2,501
Fair Value
One to five years	1,479
Five to ten years	842
Beyond ten years	0
Total	$ 2,321	$ 2,263
[1]Derived from audited consolidated financial statements

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Allowance for credit loss for HTM securities	$ 13	$ 14	$ 17	$ 19	$ 19	$ 0

INVESTMENT SECURITIES - Allowan

INVESTMENT SECURITIES - Allowance for Credit Losses for Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 14	$ 19	$ 17	$ 0
Provision for credit losses on HTM investment securities	(1)	0	(4)	1
Investment securities charge-offs	0	0	0	0
Investment securities recoveries	0	0	0	0
Ending Balance	13	19	13	19
Impact of adopting ASC 326
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0	$ 0	$ 0	$ 18

INVESTMENT SECURITIES - Inves_2

INVESTMENT SECURITIES - Investment Securities With Unrealized Losses (Details) $ in Thousands	Sep. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Investment securities available for sale:
Less than 12 months, Fair Value	$ 1,575	$ 11,308
Less than 12 months, Unrealized Losses	(3)	(24)
12 months or longer, Fair Value	22,948	26,301
12 months or longer, Unrealized Losses	(3,284)	(4,004)
Total Fair Value	24,523	37,609
Total Unrealized Losses	$ (3,287)	$ (4,028)
Number of Securities | security	12	16
Investment securities held to maturity:
Less than 12 months, Fair Value	$ 417	$ 0
Less than 12 months, Unrealized Losses	(83)	0
12 months or longer, Fair Value	1,904	2,262
12 months or longer, Unrealized Losses	(96)	(238)
Total Fair Value	2,321	2,262
Total Unrealized Losses	$ (179)	$ (238)
Number of Securities | security	3	3
Asset-backed securities
Investment securities available for sale:
Less than 12 months, Fair Value	$ 1,575	$ 0
Less than 12 months, Unrealized Losses	(3)	0
12 months or longer, Fair Value	3,752	5,967
12 months or longer, Unrealized Losses	(48)	(114)
Total Fair Value	5,327	5,967
Total Unrealized Losses	$ (51)	$ (114)
Number of Securities | security	3	2
Mortgage-backed securities: U.S. Government-sponsored enterprises
Investment securities available for sale:
Less than 12 months, Fair Value	$ 0	$ 0
Less than 12 months, Unrealized Losses	0	0
12 months or longer, Fair Value	2,909	3,236
12 months or longer, Unrealized Losses	(484)	(606)
Total Fair Value	2,909	3,236
Total Unrealized Losses	$ (484)	$ (606)
Number of Securities | security	2	2
Collateralized mortgage obligations: U.S. Government-sponsored enterprises
Investment securities available for sale:
Less than 12 months, Fair Value	$ 0	$ 0
Less than 12 months, Unrealized Losses	0	0
12 months or longer, Fair Value	16,287	17,098
12 months or longer, Unrealized Losses	(2,752)	(3,284)
Total Fair Value	16,287	17,098
Total Unrealized Losses	$ (2,752)	$ (3,284)
Number of Securities | security	7	7
Corporate bonds
Investment securities available for sale:
Less than 12 months, Fair Value		$ 11,308
Less than 12 months, Unrealized Losses		(24)
12 months or longer, Fair Value		0
12 months or longer, Unrealized Losses		0
Total Fair Value		11,308
Total Unrealized Losses		$ (24)
Number of Securities | security		5
Investment securities held to maturity:
Less than 12 months, Fair Value	$ 417	$ 0
Less than 12 months, Unrealized Losses	(83)	0
12 months or longer, Fair Value	1,904	2,262
12 months or longer, Unrealized Losses	(96)	(238)
Total Fair Value	2,321	2,262
Total Unrealized Losses	$ (179)	$ (238)
Number of Securities | security	3	3

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023		Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	$ 941,964		$ 812,048
Deferred loan costs, net	18,060		14,707
Discount on government guaranteed loans sold	(7,880)		(7,040)
Premium on loans purchased, net	3,860		4,503
Allowance for credit losses	(14,186)	$ (13,843)	(13,497)	[1]	$ (13,365)	$ (12,598)	$ (9,046)
Net loans HFI, at amortized cost	941,818		810,721	[1]
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	321,740		264,126
Allowance for credit losses	(1,173)	(1,234)	(1,987)		(2,681)	(2,542)	(731)
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	292,026		293,595
Allowance for credit losses	(1,863)	(1,864)	(1,818)		(1,558)	(1,889)	(956)
Construction and land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	33,784		26,272
Allowance for credit losses	(514)	(555)	(519)		(480)	(359)	(28)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	200,212		177,566
Allowance for credit losses	(8,305)	(7,714)	(6,579)		(7,444)	(7,011)	(6,182)
Commercial and industrial - PPP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	1,656		3,202
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans HFI, at amortized cost, gross	92,546		47,287
Allowance for credit losses	$ (2,331)	$ (2,476)	$ (2,594)		$ (1,202)	$ (797)	$ (1,090)
[1]Derived from audited consolidated financial statements

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses by Loan Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024		Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 13,843	$ 12,598	$ 13,497	[1]	$ 9,046
Charge-offs	(2,945)	(2,525)	(10,277)		(6,982)
Recoveries	188	290	607		607
Provision	3,100	3,002	10,359		7,587
Ending balance	14,186	13,365	14,186		13,365
Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					3,107
Real Estate - Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,234	2,542	1,987		731
Charge-offs	(20)	0	(20)		0
Recoveries	0	8	0		8
Provision	(41)	131	(794)		463
Ending balance	1,173	2,681	1,173		2,681
Real Estate - Residential | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					1,479
Real Estate - Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,864	1,889	1,818		956
Charge-offs	0	(108)	(60)		(108)
Recoveries	2	75	6		77
Provision	(3)	(298)	99		20
Ending balance	1,863	1,558	1,863		1,558
Real Estate - Commercial | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					613
Real Estate - Construction and Land
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	555	359	519		28
Charge-offs	0	0	0		0
Recoveries	0	0	0		0
Provision	(41)	121	(5)		171
Ending balance	514	480	514		480
Real Estate - Construction and Land | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					281
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	7,714	7,011	6,579		6,182
Charge-offs	(2,375)	(1,542)	(7,898)		(4,660)
Recoveries	111	114	352		303
Provision	2,855	1,861	9,272		4,503
Ending balance	8,305	7,444	8,305		7,444
Commercial and Industrial | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					1,116
Consumer and Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,476	797	2,594		1,090
Charge-offs	(550)	(875)	(2,299)		(2,214)
Recoveries	75	93	249		219
Provision	330	1,187	1,787		2,430
Ending balance	2,331	1,202	2,331		1,202
Consumer and Other | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					(323)
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			0		59
Charge-offs			0		0
Recoveries			0		0
Provision			0		0
Ending balance	$ 0	$ 0	$ 0		0
Unallocated | Impact of adopting ASC 326
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance					$ (59)
[1]Derived from audited consolidated financial statements

ALLOWANCE FOR CREDIT LOSSES - N

ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Allowance for credit loss for unfunded commitments	$ 664	$ 641	$ 839	$ 844	$ 844	$ 511

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses for Unfunded Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Balance at beginning of period	$ 641	$ 844	$ 839	$ 511
Provision for credit losses on unfunded commitments	23	0	(175)	120
Unfunded commitments charge-offs	0	0	0	0
Unfunded commitments recoveries	0	0	0	0
Balance at end of period	664	844	664	844
Impact of adopting ASC 326
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Balance at beginning of period	$ 0	$ 0	$ 0	$ 213

ALLOWANCE FOR CREDIT LOSSES - R

ALLOWANCE FOR CREDIT LOSSES - Recorded Investment in Nonaccrual and Loans Past Due over 89 Days Still on Accrual by Loan Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL	$ 0	$ 0
Nonaccrual with ACL	10,474	7,400
Loans Past Due Over 89 Days Still Accruing	518	865
Real estate - residential
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL	0	0
Nonaccrual with ACL	4,838	4,654
Loans Past Due Over 89 Days Still Accruing	233	583
Real Estate - Commercial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL	0	0
Nonaccrual with ACL	4,207	1,159
Loans Past Due Over 89 Days Still Accruing	0	0
Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL	0	0
Nonaccrual with ACL	1,429	1,587
Loans Past Due Over 89 Days Still Accruing	3	0
Consumer and other
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no ACL	0	0
Nonaccrual with ACL	0	0
Loans Past Due Over 89 Days Still Accruing	$ 282	$ 282

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Individually Analyzed Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023		Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans HFI, at amortized cost, gross	$ 956,004		$ 824,218	[1]
Allowance for credit loss	$ 14,186	$ 13,843	13,497	[1]	$ 13,365	$ 12,598	$ 9,046
Commercial and industrial | Business Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans HFI, at amortized cost, gross			390
Allowance for credit loss			$ 255
[1]Derived from audited consolidated financial statements

ALLOWANCE FOR CREDIT LOSSES -_4

ALLOWANCE FOR CREDIT LOSSES - Aging of Recorded Investment in Past Due Gross Loans at Amortized Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	$ 941,964	$ 812,048
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	17,192	16,761
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	6,504	9,901
Government guaranteed loan balance	1,733	1,469
Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	10,688	6,860
Government guaranteed loan balance	4,252	638
Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	924,772	795,287
Real estate - residential
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	321,740	264,126
Real estate - residential | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	6,996	7,024
Real estate - residential | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	1,926	1,840
Real estate - residential | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	5,070	5,184
Real estate - residential | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	314,744	257,102
Real estate - commercial
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	292,026	293,595
Real estate - commercial | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	4,607	3,661
Real estate - commercial | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	499	2,870
Real estate - commercial | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	4,108	791
Real estate - commercial | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	287,419	289,934
Real estate - construction and land
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	33,784	26,272
Real estate - construction and land | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Real estate - construction and land | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Real estate - construction and land | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Real estate - construction and land | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	33,784	26,272
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	200,212	177,566
Commercial and industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	4,560	4,573
Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	3,332	3,970
Commercial and industrial | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	1,228	603
Commercial and industrial | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	195,652	172,993
Commercial and industrial - PPP
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	1,656	3,202
Commercial and industrial - PPP | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Commercial and industrial - PPP | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Commercial and industrial - PPP | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	0	0
Commercial and industrial - PPP | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	1,656	3,202
Consumer and other
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	92,546	47,287
Consumer and other | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	1,029	1,503
Consumer and other | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	747	1,221
Consumer and other | Greater Than 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	282	282
Consumer and other | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Loans HFI, at amortized cost, gross	91,517	45,784
PPP Loan Delinquencies
Financing Receivable, Past Due [Line Items]
Delinquent loans	$ 1,228	$ 261

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Credit Exposure for the Loan Portfolio Disaggregated by Loan Segment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Risk Rating
Total	$ 956,004	$ 824,218	[1]
Real estate - commercial
Risk Rating
Year one	40,896	94,092
Year two	71,540	80,389
Year three	74,035	51,094
Year four	48,134	65,581
Prior	54,883
Revolving Loans Amortized Cost Basis	2,538	2,439
Revolving Loans Converted to Term	0	0
Total	292,026	293,595
Gross write offs
Year one	0	0
Year two	0	101
Year three	60	0
Year four	0
Prior	0
Prior		7
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	60	108
Real estate - commercial | Pass
Risk Rating
Year one	40,742	94,092
Year two	67,755	79,712
Year three	71,376	50,985
Year four	47,918	64,648
Prior	53,626
Revolving Loans Amortized Cost Basis	2,528	2,439
Revolving Loans Converted to Term	0	0
Total	283,945	291,876
Real estate - commercial | Special mention
Risk Rating
Year one	154	0
Year two	814	482
Year three	2,368	78
Year four	117	0
Prior	410
Revolving Loans Amortized Cost Basis	10	0
Revolving Loans Converted to Term	0	0
Total	3,873	560
Real estate - commercial | Substandard
Risk Rating
Year one	0	0
Year two	2,971	195
Year three	291	31
Year four	99	933
Prior	847
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	4,208	1,159
Real estate - commercial | Doubtful
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Real estate - construction and land
Risk Rating
Year one	1,951	11,366
Year two	19,747	12,755
Year three	9,245	2,151
Year four	2,841	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	33,784	26,272
Gross write offs
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0
Prior	0
Prior		0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Real estate - construction and land | Pass
Risk Rating
Year one	1,951	11,366
Year two	19,747	12,755
Year three	9,245	2,151
Year four	2,841	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	33,784	26,272
Real estate - construction and land | Special mention
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Real estate - construction and land | Substandard
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Real estate - construction and land | Doubtful
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Commercial and industrial
Risk Rating
Year one	51,531	51,212
Year two	44,693	46,479
Year three	38,518	13,864
Year four	11,807	55,261
Prior	44,606
Revolving Loans Amortized Cost Basis	9,057	10,750
Revolving Loans Converted to Term	0	0
Total	200,212	177,566
Gross write offs
Year one	0	325
Year two	2,533	1,543
Year three	2,572	259
Year four	317
Prior	2,476
Prior		4,113
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	7,898	6,240
Commercial and industrial | Pass
Risk Rating
Year one	51,316	51,212
Year two	42,657	45,325
Year three	35,791	13,807
Year four	11,170	54,003
Prior	39,896
Revolving Loans Amortized Cost Basis	9,057	10,750
Revolving Loans Converted to Term	0	0
Total	189,887	175,097
Commercial and industrial | Special mention
Risk Rating
Year one	215	0
Year two	1,994	150
Year three	2,268	43
Year four	626	671
Prior	3,739
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	8,842	864
Commercial and industrial | Substandard
Risk Rating
Year one	0	0
Year two	42	1,004
Year three	459	14
Year four	11	587
Prior	971
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,483	1,605
Commercial and industrial | Doubtful
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Commercial and industrial - PPP
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	135
Year four	223	3,067
Prior	1,433
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,656	3,202
Gross write offs
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0
Prior	0
Prior		223
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	223
Commercial and industrial - PPP | Pass
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	135
Year four	223	3,067
Prior	434
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	657	3,202
Commercial and industrial - PPP | Special mention
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	999
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	999	0
Commercial and industrial - PPP | Substandard
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Commercial and industrial - PPP | Doubtful
Risk Rating
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	0	0
Real Estate - Residential
Risk Rating
Year one	31,743	31,377
Year two	28,410	85,148
Year three	85,079	24,810
Year four	23,152	22,660
Prior	20,841
Revolving Loans Amortized Cost Basis	132,515	100,131
Revolving Loans Converted to Term	0	0
Total	321,740	264,126
Gross write offs
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0
Prior	20
Prior		0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	20	0
Real Estate - Residential | Pass
Risk Rating
Year one	31,743	31,377
Year two	28,410	83,951
Year three	84,265	24,524
Year four	23,020	19,709
Prior	17,892
Revolving Loans Amortized Cost Basis	131,339	99,328
Revolving Loans Converted to Term	0	0
Total	316,669	258,889
Real Estate - Residential | Doubtful
Risk Rating
Year one	0	0
Year two	0	1,197
Year three	814	286
Year four	132	2,951
Prior	2,949
Revolving Loans Amortized Cost Basis	1,176	803
Revolving Loans Converted to Term	0	0
Total	5,071	5,237
Consumer and Other
Risk Rating
Year one	56,144	25,491
Year two	22,453	19,648
Year three	11,869	954
Year four	701	204
Prior	156
Revolving Loans Amortized Cost Basis	1,223	990
Revolving Loans Converted to Term	0	0
Total	92,546	47,287
Gross write offs
Year one	0	79
Year two	228	3,182
Year three	1,888	11
Year four	33
Prior	150
Prior		8
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	2,299	3,280
Consumer and Other | Pass
Risk Rating
Year one	56,112	25,491
Year two	22,437	19,390
Year three	11,635	930
Year four	701	204
Prior	156
Revolving Loans Amortized Cost Basis	1,223	990
Revolving Loans Converted to Term	0	0
Total	92,264	47,005
Consumer and Other | Doubtful
Risk Rating
Year one	32	0
Year two	16	258
Year three	234	24
Year four	0	0
Prior	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	$ 282	$ 282
[1]Derived from audited consolidated financial statements

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets
Investment securities available for sale	$ 37,984	$ 39,575
Government guaranteed loans HFI, at fair value	86,441	91,508
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets
Investment securities available for sale	0	0
Government guaranteed loans HFI, at fair value	0	0
Significant Other Observable Inputs (Level 2)
Financial assets
Investment securities available for sale	37,984	39,575
Government guaranteed loans HFI, at fair value	0	0
Significant Unobservable Inputs (Level 3)
Financial assets
Investment securities available for sale	0	0
Government guaranteed loans HFI, at fair value	$ 86,441	$ 91,508

FAIR VALUE - Fair Value Carryin

FAIR VALUE - Fair Value Carrying Amount and the Unpaid Principal Outstanding of HFI Government Guaranteed Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Total Loans, Fair Value Carrying Amount	$ 86,441	$ 91,508
Total Loans, Unpaid Principal Balance	84,970	87,933
Total Loans, Fair Value Gain (Loss)	1,471	3,575
Nonaccrual, Fair Value Carrying Amount	1,559	485
Nonaccrual, Unpaid Principal Balance	1,992	585
Nonaccrual, Fair Value Gain (Loss)	(433)	(100)
90 Days or More Past Due, Fair Value Carrying Amount	0	162
90 Days or More Past Due, Unpaid Principal Balance	0	182
90 Days or More Past Due, Fair Value Gain (Loss)	0	(20)
Real Estate - Commercial
Fair Value, Option, Quantitative Disclosures [Line Items]
Total Loans, Fair Value Carrying Amount	16,424	19,219
Total Loans, Unpaid Principal Balance	16,476	19,156
Total Loans, Fair Value Gain (Loss)	(52)	63
Nonaccrual, Fair Value Carrying Amount	0	0
Nonaccrual, Unpaid Principal Balance	0	0
Nonaccrual, Fair Value Gain (Loss)	0	0
90 Days or More Past Due, Fair Value Carrying Amount	0	0
90 Days or More Past Due, Unpaid Principal Balance	0	0
90 Days or More Past Due, Fair Value Gain (Loss)	0	0
Commercial and Industrial
Fair Value, Option, Quantitative Disclosures [Line Items]
Total Loans, Fair Value Carrying Amount	70,017	72,289
Total Loans, Unpaid Principal Balance	68,494	68,777
Total Loans, Fair Value Gain (Loss)	1,523	3,512
Nonaccrual, Fair Value Carrying Amount	1,559	485
Nonaccrual, Unpaid Principal Balance	1,992	585
Nonaccrual, Fair Value Gain (Loss)	(433)	(100)
90 Days or More Past Due, Fair Value Carrying Amount	0	162
90 Days or More Past Due, Unpaid Principal Balance	0	182
90 Days or More Past Due, Fair Value Gain (Loss)	$ 0	$ (20)

FAIR VALUE - Gains and Losses f

FAIR VALUE - Gains and Losses from Changes in Fair Value and Interest Income Included in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Change in fair value	$ 3,416	$ 4,543	$ 9,923	$ 11,021
Government guaranteed loan servicing rights
Fair Value, Option, Quantitative Disclosures [Line Items]
Interest income			5,978	3,151
Change in fair value			9,923	11,021
Total gain, net			$ 15,901	$ 14,172

FAIR VALUE - Government Guarant

FAIR VALUE - Government Guaranteed Loans HFI, at Fair Value, Which Were Valued on a Recurring Basis and Used Significant Unobservable Inputs (Details) - Loans Receivable - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance of government guaranteed loans HFI at fair value, beginning of period	$ 91,508	$ 27,078
New government guaranteed originations at fair value	105,754	143,535
Loans sold	(116,977)	(90,120)
Principal payments	(3,767)	(7,336)
Charge-offs	0	0
Total fair value gains during the period	9,923	11,021
Balance of government guaranteed loans HFI at fair value, end of period	$ 86,441	$ 84,178

FAIR VALUE - Valuation Techniqu

FAIR VALUE - Valuation Technique and Unobservable Inputs Used in the Valuation of Government Guaranteed HFI, at Fair Value (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Government guaranteed loans HFI, at fair value	$ 86,441	$ 91,508	[1]
Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Government guaranteed loans HFI, at fair value	86,441	91,508
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Government guaranteed loans HFI, at fair value	86,441	91,508
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Government guaranteed loans HFI, at fair value	$ 86,441	$ 91,508
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Discount rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.0656	0.0736
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Conditional prepayment rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.1087	0.1038
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Discount rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.0994	0.1086
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Conditional prepayment rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.1263	0.1569
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Discount rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.0851	0.0874
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Conditional prepayment rate | Government guaranteed loans HFI, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable, measurement input (as a percent)	0.1209	0.1391
[1]Derived from audited consolidated financial statements

FAIR VALUE - Assets Measured at

FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Nonrecurring [Line Items]
Repossessed assets, fair value disclosure	$ 94
Loans receivable, fair value disclosure, individually evaluated		$ 135
Discount rate
Fair Value, Nonrecurring [Line Items]
Repossessed assets, measurement input (as a percent)	0.10
Loans receivable, individually evaluated, measurement input (as a percent)		10%

FAIR VALUE - Assets and Liabi_2

FAIR VALUE - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Investment securities held to maturity	$ 2,321	$ 2,263
1 | Carrying Value | Cash and cash equivalents
Assets:
Cash and cash equivalents	64,383	58,385
1 | Fair Value | Cash and cash equivalents
Assets:
Cash and cash equivalents	64,383	58,385
2 | Carrying Value
Assets:
Investment securities held to maturity	2,487	2,484
Nonmarketable equity securities, at cost	4,997	4,770
Government guaranteed loans held for sale	595	0
Accrued interest receivable	8,537	7,130
Liabilities:
FHLB borrowings	10,000	10,000
Subordinated debentures	5,954	5,949
Notes payable	2,048	2,389
Accrued interest payable	1,114	882
2 | Carrying Value | Time deposits in banks
Assets:
Cash and cash equivalents	2,264	4,646
Liabilities:
Deposits, liabilities	312,981	259,008
2 | Carrying Value | Noninterest-bearing deposits
Liabilities:
Deposits, liabilities	95,995	93,708
2 | Carrying Value | Interest-bearing transaction accounts
Liabilities:
Deposits, liabilities	247,923	259,422
2 | Carrying Value | Savings and money market deposits
Liabilities:
Deposits, liabilities	455,297	373,000
2 | Fair Value
Assets:
Investment securities held to maturity	2,321	2,263
Nonmarketable equity securities, at cost	4,997	4,770
Government guaranteed loans held for sale	667	0
Accrued interest receivable	8,537	7,130
Liabilities:
FHLB borrowings	10,000	10,000
Subordinated debentures	5,485	5,215
Notes payable	2,031	2,369
Accrued interest payable	1,114	882
2 | Fair Value | Time deposits in banks
Assets:
Cash and cash equivalents	2,228	4,561
Liabilities:
Deposits, liabilities	313,339	255,372
2 | Fair Value | Noninterest-bearing deposits
Liabilities:
Deposits, liabilities	95,995	93,708
2 | Fair Value | Interest-bearing transaction accounts
Liabilities:
Deposits, liabilities	247,923	259,422
2 | Fair Value | Savings and money market deposits
Liabilities:
Deposits, liabilities	455,297	373,000
3 | Carrying Value
Assets:
Loans HFI, at amortized cost	941,818	810,721
3 | Carrying Value | Government guaranteed loan servicing rights
Assets:
Government guaranteed loan servicing rights	15,966	14,959
3 | Fair Value
Assets:
Loans HFI, at amortized cost	937,576	786,350
3 | Fair Value | Government guaranteed loan servicing rights
Assets:
Government guaranteed loan servicing rights	$ 18,596	$ 16,318

GOVERNMENT GUARANTEED LOAN SE_3

GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Servicing Asset at Amortized Cost [Line Items]
Principal balance of government guaranteed loans, excluding PPP loans	$ 395,155	$ 395,877
Principal balance of government guaranteed loans, excluding PPP loans, guaranteed portion	155,345	181,459
Unpaid principal balances of government guaranteed loans serviced for others	$ 1,009,797	$ 855,756
Servicing assets, weighted average discount rate	13.75%	14.50%
Servicing assets, weighted average prepayment speed (as a percent)	13.16%	11.42%
Government guaranteed loan servicing rights | Significant Unobservable Inputs (Level 3) | Fair Value
Servicing Asset at Amortized Cost [Line Items]
Servicing asset rights at fair value	$ 18,596	$ 16,318

GOVERNMENT GUARANTEED LOAN SE_4

GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES - Activity for Government Guaranteed Loan Servicing Rights (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning of period	[1]			$ 14,959
End of period		$ 15,966		15,966
Government guaranteed loan servicing rights
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning of period		15,770	$ 12,820	14,959	$ 10,906
Additions		1,704	2,543	5,396	6,390
Amortization		(1,508)	(1,147)	(4,389)	(3,080)
End of period		$ 15,966	$ 14,216	$ 15,966	$ 14,216
[1]Derived from audited consolidated financial statements

GOVERNMENT GUARANTEED LOAN SE_5

GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES - Net Gain on Sale of Government Guaranteed Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Servicing Asset at Amortized Cost [Line Items]
Gain on sale of government guaranteed loans, net	$ 6,143	$ 7,139	$ 19,827	$ 17,576
Government guaranteed loan servicing rights
Servicing Asset at Amortized Cost [Line Items]
Gain on sale of guaranteed portion of government guaranteed loans	4,439	4,596	14,431	11,998
Loss on sale of unguaranteed portion of government guaranteed loans	0	0	0	(797)
Costs recognized on sale of government guaranteed loans	0	0	0	(15)
Fair value of loan servicing rights created	1,704	2,543	5,396	6,390
Gain on sale of government guaranteed loans, net	$ 6,143	$ 7,139	$ 19,827	$ 17,576

LEASES - Total Lease Cost and S

LEASES - Total Lease Cost and Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 202	$ 509	$ 699	$ 1,097
Short-term lease cost	30	(224)	102	(204)
Total lease cost, net	232	285	801	893
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease cost	232	285	801	893
Cash flows related to operating lease liabilities	151	281	600	965
Right-of-use assets obtained in exchange for new operating lease liabilities	0	0	263	0
Discontinued Operations, Held-for-sale | Nationwide Residential Mortgage Loan Production Operations
Leases [Abstract]
Total lease cost, net	0	44	131	131
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease cost	$ 0	$ 44	$ 131	$ 131

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Sep. 30, 2024
Leases [Abstract]
Weighted average discount rate	2.93%
Weighted average remaining life	2 years 8 months 12 days

LEASES - Future Minimum Lease P

LEASES - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Leases [Abstract]
2024	$ 157
2025	896
2026	857
2027	440
2028	0
Thereafter	0
Total undiscounted lease payments	2,350
Less: imputed interest	(79)
Net lease liabilities	$ 2,271
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Operating lease liabilities, Liabilities from discontinued operations

OTHER BORROWINGS (Details)

OTHER BORROWINGS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Blanket lien	$ 331,918,000
Additional FHLB borrowings	170,668,000
Subordinated debentures	5,954,000	$ 5,949,000	[1]
Notes payable	2,048,000	2,389,000	[1]
Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Short term borrowings	$ 10,000,000	$ 10,000,000
Debt instrument, fixed interest rate	5.07%	5.57%
Federal Reserve Bank Advances
Debt Instrument [Line Items]
Short term borrowings	$ 0	$ 0
Federal Reserve Bank Advances | Secured Debt
Debt Instrument [Line Items]
Line of credit, capacity	42,955,000
Federal Reserve Bank Advances | Secured Debt | SBA Loan
Debt Instrument [Line Items]
Line of credit, capacity	$ 60,831,000
Subordinated Debt | June 2021 Subordinated Debentures
Debt Instrument [Line Items]
Debt instrument, fixed interest rate	4.50%
Debt instrument, face amount	$ 6,000,000
Debt instrument, redemption period	5 years
Debt instrument, initial term	5 years
Subordinated Debt | June 2021 Subordinated Debentures | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt Instrument, final term	5 years
Debt instrument, floating rate	3.78%
Notes Payable, Other Payables | Amortizing Note Payable
Debt Instrument [Line Items]
Debt instrument, collateral, percentage of bank's stock	100%
Notes Payable, Other Payables | Amortizing Note Payable | Prime Rate
Debt Instrument [Line Items]
Debt instrument, floating rate	8.50%
[1]Derived from audited consolidated financial statements

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0	0	0
Unrecognized compensation cost related to nonvested stock options granted	$ 23		$ 23
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	456		$ 456
Expected period for recognition			3 years
Fair value of shares vested			$ 359	$ 252
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected period for recognition			1 year 2 months 12 days
Maximum percentage of stock granted			15%
Maximum number of shares issued and outstanding (in shares)			1,500,000
Contractual term			10 years
Common stock options | Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			5 years
Common stock options | Share-based Payment Arrangement, Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost charged against income	$ 109	$ 167	$ 281	$ 486

STOCK-BASED COMPENSATION - Nonv

STOCK-BASED COMPENSATION - Nonvested Restricted Shares (Details) - Restricted Stock - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Shares
Nonvested beginning balance (in shares)	52,195	22,000
Granted (in shares)	30,650	46,175
Vested (in shares)	(29,835)	(13,935)
Forfeited (in shares)	(1,125)	(1,865)
Nonvested ending balance (in shares)	51,885	52,375
Weighted-Average Grant-Date Fair Value, per share
Nonvested beginning balance (in dollars per share)	$ 18.75	$ 21.52
Granted (in dollars per share)	11.70	18.30
Vested (in dollars per share)	(18.24)	(20.01)
Forfeited (in dollars per share)	(16.05)	(19.38)
Nonvested ending balance (in dollars per share)	$ 14.93	$ 18.75

STOCK-BASED COMPENSATION - Acti

STOCK-BASED COMPENSATION - Activity in the Equity Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Shares
Outstanding beginning balance (in shares)	367,033	405,688
Exercised (in shares)		(30,375)
Forfeited (in shares)	(2,970)	(7,980)
Outstanding ending balance (in shares)	364,063	367,333
Vested at ending balance (in shares)	349,385	323,022
Exercisable at ending balance (in shares)	349,385	323,022
Weighted Average Exercise Price
Outstanding beginning balance (in dollars per share)	$ 15.68	$ 15.67
Exercised (in dollars per share)		(15.71)
Forfeited (in dollars per share)	(15.56)	(15.51)
Outstanding ending balance (in dollars per share)	15.57	15.67
Vested at ending balance (in dollars per share)	15.71	15.79
Exercisable at ending balance (in dollars per share)	$ 15.71	$ 15.79
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term, Outstanding	4 years 11 months 1 day	5 years 11 months 4 days
Weighted Average Remaining Contractual Term, Vested	4 years 10 months 17 days	5 years 9 months 10 days
Weighted Average Remaining Contractual Term, Exercisable	4 years 10 months 17 days	5 years 9 months 10 days
Aggregate Intrinsic Value, Outstanding	$ 0	$ 0
Aggregate Intrinsic Value, Vested	0	0
Aggregate Intrinsic Value, Exercisable	$ 0	$ 0

OTHER BENEFIT PLANS (Details)

OTHER BENEFIT PLANS (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock purchased in DRIP (in shares)	0	10,589
Issue of common stock under dividend reinvestment plan, price per share (in dollars per share)		$ 14.98
Salary continuation agreement, annual benefit	$ 25,000
Salary continuation agreement, annual benefit, duration	20 years
Salary continuation agreement, liability	$ 324,000				$ 351,000
Postemployment benefits, period expense, net	$ 3,000
Post employment benefits, period expense		$ 11,000
Employer contribution over employees' gross pay	3%
Expense recognized in relation of plan, amount	$ 749,000	$ 678,000
Employee stock ownership plan (in shares)				14,154
ESOP, number of unallocated shares (in shares)	8,493	11,323
Fair value of unallocated shares	$ 112,000	$ 127,000
ESOP, fixed interest rate	3.25%
ESOP, vesting percentage in contribution of employees laid off			100%
Stock based compensation expense	$ 149,000	$ 0
Employee Stock Ownership Plan Termination
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock ownership plan (in shares)			23,383
ESOP, number of unallocated shares (in shares)	18,706	23,383
Fair value of unallocated shares	$ 246,000	$ 263,000
ESOP, fixed interest rate			8.25%
Term of loan			5 years
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense recognized in relation to the non-qualified stock purchase plan	$ 18,000	$ 20,000

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Total Capital
Total Capital, Actual	$ 115,123	$ 114,256
Total Capital, Actual, Ratio	0.1139	0.1303
Total Capital, Required for Capital Adequacy Purposes	$ 80,848	$ 70,169
Total Capital, Required for Capital Adequacy Purposes, Ratio	0.0800	0.0800
Total Capital, To be Well Capitalized Under Prompt Corrective Action Regulations	$ 101,059	$ 87,711
Total Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.1000	0.1000
Tier 1 Capital
Tier One Risk-Based Capital, Actual	$ 102,479	$ 103,274
Tier One Risk-Based Capital, Actual, Ratio	0.1014	0.1177
Tier One Risk-Based Capital, Required for Capital Adequacy Purposes	$ 60,636	$ 52,627
Tier One Risk-Based Capital, Required for Capital Adequacy Purposes, Ratio	0.0600	0.0600
Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations	$ 80,848	$ 70,169
Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.0800	0.0800
Common Equity Tier 1 Capital
Common Equity Tier One Risk-Based Capital, Actual	$ 102,479	$ 103,274
Common Equity Tier One Risk-Based Capital, Actual, Ratio	0.1014	0.1177
Common Equity Tier One Risk-Based Capital, Required for Capital Adequacy Purposes	$ 45,477	$ 39,470
Common Equity Tier One Risk-Based Capital, Required for Capital Adequacy Purposes, Ratio	0.0450	0.0450
Common Equity Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations	$ 65,689	$ 57,012
Common Equity Tier One Risk-Based Capital To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.0650	0.0650
Tier 1 Capital
Tier One Leverage Capital, Actual	$ 102,479	$ 103,274
Tier One Leverage Capital, Actual, Ratio	0.0841	0.0938
Tier One Leverage Capital, Required for Capital Adequacy Purposes	$ 48,768	$ 44,024
Tier One Leverage Capital, Required for Capital Adequacy Purposes, Ratio	0.0400	0.0400
Tier One Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Regulations	$ 60,960	$ 55,030
Tier One Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	0.0500	0.0500

LOAN COMMITMENTS AND OTHER RE_3

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES - Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Unfunded loan commitments
Other Commitments [Line Items]
Financial commitments, contractual amount	$ 79,412	$ 7,392
Unused lines of credit
Other Commitments [Line Items]
Financial commitments, contractual amount	200,109	178,440
Standby letters of credit
Other Commitments [Line Items]
Financial commitments, contractual amount	$ 211	$ 186

LOAN COMMITMENTS AND OTHER RE_4

LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Total ACL for off-balance sheet loan commitments	$ 664	$ 839	$ 641	$ 844	$ 844	$ 511
Unfunded loan commitments
Other Commitments [Line Items]
Total ACL for off-balance sheet loan commitments	$ 664	$ 839
Unfunded loan commitments
Other Commitments [Line Items]
Unfunded loan commitment period	90 days	90 days

EARNINGS PER COMMON SHARE - Bas

EARNINGS PER COMMON SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic:
Income from continuing operations	$ 1,137	$ 1,970	$ 2,896	$ 4,254
Loss from discontinued operations	0	(47)	(69)	(207)
Net income	1,137	1,923	2,827	4,047
Less: Preferred stock dividends	385	208	1,156	624
Net income available to common shareholders	$ 752	$ 1,715	$ 1,671	$ 3,423
Weighted average common shares outstanding (in shares)	4,134,169	4,105,014	4,133,082	4,096,584
Basic earnings (loss) per common share, Continuing operations (in dollars per share)	$ 0.18	$ 0.43	$ 0.42	$ 0.89
Basic earnings (loss) per common share, Discontinued operations (in dollars per share)	0	(0.01)	(0.02)	(0.05)
Total basic earnings per common share (in dollars per share)	$ 0.18	$ 0.42	$ 0.40	$ 0.84
Diluted:
Income from continuing operations	$ 1,137	$ 1,970	$ 2,896	$ 4,254
Loss from discontinued operations	0	(47)	(69)	(207)
Net income	1,137	1,923	2,827	4,047
Less: Preferred stock dividends	385	208	1,156	624
Add: Series B preferred stock and preferred C stock dividends	0	64	0	193
Net income available to common shareholders	$ 752	$ 1,779	$ 1,671	$ 3,616
Weighted average common shares outstanding for basic earnings per common share (in shares)	4,134,169	4,105,014	4,133,082	4,096,584
Add: Dilutive effects of conversion of Series B preferred stock and Preferred C to common stock (in shares)	0	250,690	0	253,626
Add: Dilutive effects of assumed exercises of stock options and warrants (in shares)	0	0	0	4,098
Average shares and dilutive potential common shares (in shares)	4,134,169	4,355,704	4,133,082	4,354,308
Diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	$ 0.18	$ 0.42	$ 0.42	$ 0.88
Discontinued operations (in dollars per share)	0	(0.01)	(0.02)	(0.05)
Total diluted earnings per common share (in dollars per share)	$ 0.18	$ 0.41	$ 0.40	$ 0.83

EARNINGS PER COMMON SHARE - Ant

EARNINGS PER COMMON SHARE - Antidilutive Securities Excluded from Calculation of Weighted Average Shares Outstanding (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of weighted average shares outstanding (in shares)	364,576	367,461	365,680	374,802
Convertible Series B preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of weighted average shares outstanding (in shares)	3,210	0	3,210	0
Convertible Series C preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of weighted average shares outstanding (in shares)	6,446	0	6,446	0