Bank First (BFC) 10-Q6 Nov 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 06, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-38676
Entity Registrant Name	Bank First Corp
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1435359
Entity Address, Address Line One	402 North 8th Street
Entity Address, City or Town	Manitowoc
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	54220
City Area Code	920
Local Phone Number	652-3100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BFC
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		7,730,071
Entity Central Index Key	0001746109
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 32,485	$ 33,817
Interest-bearing deposits	1,854	19,242
Federal funds sold	46,413	33,393
Cash and cash equivalents	80,752	86,452
Securities held to maturity, at amortized cost ($6,691 and $44,803 fair value at September 30, 2020 and December 31, 2019, respectively)	6,670	43,734
Securities available for sale, at fair value	173,334	181,506
Loans held for sale	659	587
Loans, net	2,176,910	1,724,947
Premises and equipment, net	41,186	35,286
Goodwill	55,022	43,456
Other investments	8,896	4,933
Cash value of life insurance	31,197	24,945
Identifiable intangible assets, net	10,088	9,666
Other real estate owned ("OREO")	3,264	6,888
Investment in minority-owned subsidiaries	42,436	40,287
Other assets	8,833	7,481
TOTAL ASSETS	2,639,247	2,210,168
Deposits:
Interest-bearing deposits	1,582,831	1,366,846
Noninterest-bearing deposits	688,209	476,465
Total deposits	2,271,040	1,843,311
Securities sold under repurchase agreements	23,894	45,865
Notes payable	25,145	49,790
Subordinated notes		18,622
Other liabilities	12,552	22,369
Total liabilities	2,353,143	1,979,957
Stockholders' equity:
Serial preferred stock - $0.01 par value Authorized - 5,000,000 shares	0	0
Common stock - $0.01 par value Authorized - 20,000,000 shares Issued - 8,478,383 and 7,902,742 shares as of September 30, 2020 and December 31, 2019, respectively Outstanding - 7,729,762 and 7,084,728 shares as of September 30, 2020 and December 31, 2019, respectively	85	79
Additional paid-in capital	92,560	63,085
Retained earnings	211,486	189,494
Treasury stock, at cost - 748,621 and 818,014 shares as of September 30, 2020 and December 31, 2019, respectively	(23,963)	(24,941)
Accumulated other comprehensive income	5,936	2,494
Total stockholders' equity	286,104	230,211
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,639,247	$ 2,210,168

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Held-to-maturity, Fair Value	$ 6,691	$ 44,803
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	8,478,383	7,902,742
Common Stock, Shares, Outstanding	7,729,762	7,084,728
Treasury Stock, Shares	748,621	818,014
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income:
Loans, including fees	$ 24,719	$ 23,897	$ 69,648	$ 60,629
Securities:
Taxable	688	865	2,393	2,300
Tax-exempt	493	413	1,403	1,253
Other	28	314	162	1,188
Total interest income	25,928	25,489	73,606	65,370
Interest expense:
Deposits	2,721	4,735	10,043	13,402
Securities sold under repurchase agreements	4	85	110	383
Borrowed funds	278	356	1,089	698
Total interest expense	3,003	5,176	11,242	14,483
Net interest income	22,925	20,313	62,364	50,887
Provision for loan losses	1,350	3,000	5,475	4,125
Net interest income after provision for loan losses	21,575	17,313	56,889	46,762
Noninterest income:
Service charges	1,343	918	3,417	2,396
Income from Ansay and Associates, LLC ("Ansay")	970	319	2,571	1,737
Income from UFS, LLC ("UFS")	720	768	2,467	2,093
Loan servicing income	538	374	1,226	841
Net gain on sales of mortgage loans	1,304	533	3,096	774
Net gain on sales of securities			3,233	23
Net gain on sale of other investments				234
Noninterest income from strategic alliances	16	26	49	74
Other	224	207	717	1,249
Total noninterest income	5,115	3,145	16,776	9,421
Noninterest expense:
Salaries, commissions, and employee benefits	6,609	6,272	19,669	16,985
Occupancy	1,171	1,076	3,367	2,757
Data processing	1,463	1,158	3,996	3,031
Postage, stationery, and supplies	219	135	668	450
Net (gain) loss on sales and valuations of OREO	(32)	(10)	1,411	(109)
Advertising	41	53	165	180
Charitable contributions	110	225	360	497
Outside service fees	888	1,171	3,083	2,837
Amortization of intangibles	418	374	1,114	696
Penalty for early extinguishment of debt			1,323
Other	1,315	1,633	4,225	4,254
Total noninterest expense	12,202	12,087	39,381	31,578
Income before provision for income taxes	14,488	8,371	34,284	24,605
Provision for income taxes	3,534	1,712	7,768	5,370
Net Income	$ 10,954	$ 6,659	$ 26,516	$ 19,235
Earnings per share - basic	$ 1.42	$ 0.95	$ 3.57	$ 2.86
Earnings per share - diluted	1.42	0.93	3.56	2.83
Dividends per share	$ 0.20	$ 0.20	$ 0.60	$ 0.60

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Net Income	$ 10,954	$ 6,659	$ 26,516	$ 19,235
Unrealized gains (losses) on available for sale securities:
Unrealized holding gains arising during period	593	925	8,230	5,244
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity		(11)	(102)	(34)
Reclassification adjustment for gains included in net income			(3,233)	(23)
Income tax expense	(160)	(192)	(1,453)	(1,089)
Total other comprehensive income	433	722	3,442	4,098
Comprehensive income	$ 11,387	$ 7,381	$ 29,958	$ 23,333

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Partnership Community Bancshares, Inc. [Member]Serial Preferred Stock [Member]	Partnership Community Bancshares, Inc. [Member]Common Stock [Member]	Partnership Community Bancshares, Inc. [Member]Additional Paid-in Capital [Member]	Partnership Community Bancshares, Inc. [Member]Retained Earnings [Member]	Partnership Community Bancshares, Inc. [Member]Treasury Stock [Member]	Partnership Community Bancshares, Inc. [Member]Accumulated Other Comprehensive Income (Loss) [Member]	Partnership Community Bancshares, Inc. [Member]	Tomah Bancshares Inc [Member]Serial Preferred Stock [Member]	Tomah Bancshares Inc [Member]Common Stock [Member]	Tomah Bancshares Inc [Member]Additional Paid-in Capital [Member]	Tomah Bancshares Inc [Member]Retained Earnings [Member]	Tomah Bancshares Inc [Member]Treasury Stock [Member]	Tomah Bancshares Inc [Member]Accumulated Other Comprehensive Income (Loss) [Member]	Tomah Bancshares Inc [Member]	Serial Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2018															$ 0	$ 74	$ 27,601	$ 168,363	$ (21,349)	$ (366)	$ 174,323
Net income															0	0	0	6,587	0	0	6,587
Other comprehensive income															0	0	0	0	0	1,853	1,853
Purchase of treasury stock															0	0	0	0	(2,489)	0	(2,489)
Issuance of treasury stock as deferred compensation payout															0	0	14	0	43	0	57
Cash dividends ($0.20 per share)															0	0	0	(1,306)	0	0	(1,306)
Amortization of stock-based compensation															0	0	152	0	0	0	152
Vesting of restricted stock awards															0	0	(462)	0	462	0	0
Balance at Mar. 31, 2019															0	74	27,305	173,644	(23,333)	1,487	179,177
Balance at Dec. 31, 2018															0	74	27,601	168,363	(21,349)	(366)	174,323
Net income																					19,235
Balance at Sep. 30, 2019															0	79	62,911	183,551	(24,941)	3,731	225,331
Balance at Mar. 31, 2019															0	74	27,305	173,644	(23,333)	1,487	179,177
Net income															0	0	0	5,989	0	0	5,989
Other comprehensive income															0	0	0	0	0	1,522	1,522
Purchase of treasury stock															0	0	0	0	(161)	0	(161)
Issuance of treasury stock as deferred compensation payout															0	0	12	0	45	0	57
Cash dividends ($0.20 per share)															0	0	0	(1,319)	0	0	(1,319)
Amortization of stock-based compensation															0	0	182	0	0	0	182
Vesting of restricted stock awards															0	0	(63)	0	63	0	0
Balance at Jun. 30, 2019															0	74	27,436	178,314	(23,386)	3,009	185,447
Net income															0	0	0	6,659	0	0	6,659
Other comprehensive income															0	0	0	0	0	722	722
Purchase of treasury stock															0	0	0	0	(1,555)	0	(1,555)
Cash dividends ($0.20 per share)															0	0	0	(1,422)	0	0	(1,422)
Amortization of stock-based compensation															0	0	177	0	0	0	177
Shares issued in the acquisition	$ 0	$ 5	$ 35,298	$ 0	$ 0	$ 0	$ 35,303
Balance at Sep. 30, 2019															0	79	62,911	183,551	(24,941)	3,731	225,331
Balance at Dec. 31, 2019															0	79	63,085	189,494	(24,941)	2,494	230,211
Net income															0	0	0	7,266	0	0	7,266
Other comprehensive income															0	0	0	0	0	1,021	1,021
Purchase of treasury stock															0	0	0	0	(2,968)	0	(2,968)
Issuance of treasury stock as deferred compensation payout															0	0	0	0	3,368	0	3,368
Cash dividends ($0.20 per share)															0	0	0	(1,431)	0	0	(1,431)
Amortization of stock-based compensation															0	0	215	0	0	0	215
Vesting of restricted stock awards															0	0	(628)	0	628	0	0
Balance at Mar. 31, 2020															0	79	62,672	195,329	(23,913)	3,515	237,682
Balance at Dec. 31, 2019															0	79	63,085	189,494	(24,941)	2,494	230,211
Net income																					26,516
Balance at Sep. 30, 2020															0	85	92,560	211,486	(23,963)	5,936	286,104
Balance at Mar. 31, 2020															0	79	62,672	195,329	(23,913)	3,515	237,682
Net income															0	0	0	8,296	0	0	8,296
Other comprehensive income															0	0	0	0	0	1,988	1,988
Cash dividends ($0.20 per share)															0	0	0	(1,543)	0	0	(1,543)
Amortization of stock-based compensation															0	0	296	0	0	0	296
Vesting of restricted stock awards															0	0	(66)	0	66	0	0
Shares issued in the acquisition								$ 0	$ 6	$ 29,375	$ 0	$ 0	$ 0	$ 29,381
Balance at Jun. 30, 2020															0	85	92,277	202,082	(23,847)	5,503	276,100
Net income															0	0	0	10,954	0	0	10,954
Other comprehensive income															0	0	0	0	0	433	433
Purchase of treasury stock															0	0	0	0	(116)	0	(116)
Cash dividends ($0.20 per share)															0	0	0	(1,550)	0	0	(1,550)
Amortization of stock-based compensation															0	0	283	0	0	0	283
Balance at Sep. 30, 2020															$ 0	$ 85	$ 92,560	$ 211,486	$ (23,963)	$ 5,936	$ 286,104

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Dividends Payable, Amount Per Share	$ 0.20	$ 0.20	$ 0.20	$ 0.20	$ 0.20	$ 0.20
Partnership Community Bancshares, Inc. [Member]
Stock Issued During Period, Shares, Acquisitions		534,659
Tomah Bancshares Inc [Member]
Stock Issued During Period, Shares, Acquisitions	575,641

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 26,516	$ 19,235
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	5,475	4,125
Depreciation and amortization of premises and equipment	1,116	842
Amortization of intangibles	1,114	696
Net amortization of securities	505	286
Amortization of stock-based compensation	794	511
Accretion of purchase accounting valuations	(4,338)	(5,303)
Net change in deferred loan fees and costs	5,258	(197)
Change in fair value of mortgage servicing rights ("MSR") and other investments	1,468	(179)
Loss from sale and disposal of premises and equipment	0	23
Loss (gain) on sale of OREO and valuation allowance	1,411	(109)
Proceeds from sales of mortgage loans	149,229	45,951
Originations of mortgage loans held for sale	(147,185)	(47,661)
Gain on sales of mortgage loans	(3,096)	(774)
Realized gain on sale of securities	(3,233)	(23)
Realized gain on sale of other investments	0	(234)
Undistributed income of UFS joint venture	(2,467)	(2,093)
Undistributed income of Ansay joint venture	(2,571)	(1,737)
Net earnings on life insurance	(544)	(467)
Increase in other assets	(1,715)	(2,085)
Decrease in other liabilities	(5,416)	(1,667)
Net cash provided by operating activities	22,321	9,140
Activity in securities available for sale and held to maturity:
Sales	59,697	748
Maturities, prepayments, and calls	65,655	9,742
Purchases	(28,764)	(8,823)
Net increase in loans	(348,814)	(15,876)
Dividends received from UFS	1,797	1,366
Dividends received from Ansay	1,119	958
Proceeds from sale of OREO	4,085	1,092
Proceeds from sale of other investments	0	984
Net purchases of Federal Home Loan Bank ("FHLB") stock	(640)	(65)
Net purchases of Federal Reserve Bank ("FRB") stock	(2,760)	0
Proceeds from sale of premises and equipment	25	0
Purchases of premises and equipment	(5,518)	(3,847)
Net cash received in business combination	35,296
Net cash used in business combination		(9,771)
Net cash used in investing activities	(218,822)	(23,492)
Cash flows from financing activities, net of effects of business combination:
Net increase in deposits	256,947	12,550
Net decrease in securities sold under repurchase agreements	(22,788)	(19,288)
Proceeds from advances of notes payable	87,000	44,000
Repayment of notes payable	(124,750)	(4,000)
Proceeds from issuance of subordinated debt	2,000	0
Dividends paid	(4,524)	(4,047)
Repurchase of common stock	(3,084)	(4,205)
Net cash provided by financing activities	190,801	25,010
Net (decrease) increase in cash and cash equivalents	(5,700)	10,658
Cash and cash equivalents at beginning of period	86,452	107,743
Cash and cash equivalents at end of period	80,752	118,401
Cash paid during the period for:
Interest	11,712	14,177
Income taxes	5,050	5,177
Supplemental schedule of noncash activities:
Loans transferred to OREO	1,892	4,260
MSR resulting from sale of loans	980	443
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity recognized in other comprehensive income, net of tax	(81)	(27)
Change in unrealized gains and losses on investment securities available for sale, net of tax	3,523	4,125
Payment of deferred compensation through issuance of treasury stock	3,368	114
Acquisitions:
Fair value of assets acquired	209,918	307,768
Fair value of liabilities assumed	191,701	286,612
Net assets acquired	$ 18,217	$ 21,156
Common stock issued in acquisition	29,381	35,304

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2020
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION Bank First Corporation (the “Company”) provides a variety of financial services to individual and corporate customers through its wholly-owned subsidiary, Bank First, N.A. (the “Bank”). The Bank operates as a full-service financial institution with a primary market area including, but not limited to, the counties in which the Bank’s branches are located. The Bank has twenty-four locations located in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe, Jefferson and Barron counties in Wisconsin. On September 18, 2020, the Company announced its intention to sell its branch in Chetek, Wisconsin, in a transaction expected to close during the fourth quarter of 2020. This event will reduce the Bank's branch count by one and will remove Barron County from the list of counties in which the Bank has a presence. The Company and Bank are subject to the regulations of certain federal agencies and undergo periodic examinations by those regulatory authorities. These interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures required by GAAP have been omitted or abbreviated. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“Annual Report”). The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses (“ALL”), valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the ALL, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as previously disclosed in the Company’s Annual Report. Recent Accounting Developments Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance did not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for testing performed after January 1, 2017. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. Recently Issued Not Yet Effective Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Certain aspects of this ASU were updated in November 2018 by the issuance of ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. The main objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. During 2019 FASB issued ASU 2019-10 which delayed the effective date of ASU 2016-13 for smaller, publicly traded companies, until interim and annual periods beginning after December 15, 2022. This delay applies to the Company as it was classified as a “Smaller reporting company” as defined in Rule 12b-2 of the Exchange Act as of the date ASU 2019-10 was enacted. Management is currently evaluating the potential impact of this update, although the general expectation in the banking industry is that the implementation of this standard will result in higher required balances in the ALL.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
ACQUISITIONS	Sep. 30, 2020
ACQUISITIONS
ACQUISITIONS	NOTE 2 – ACQUISITIONS On July 12, 2019, the Company completed a merger with Partnership Community Bancshares, Inc. (“Partnership”), a bank holding company headquartered in Cedarburg, Wisconsin, pursuant to the Agreement and Plan of Bank Merger (“Merger Agreement”), dated as of January 22, 2019 and as amended on April 30, 2019, by and among the Company and Partnership, whereby Partnership merged with and into the Company, and Partnership Bank, Partnership’s wholly-owned banking subsidiary, merged with and into the Bank. Partnership’s principal activity was the ownership and operation of Partnership Bank, a state-chartered banking institution that operated four (4) branches in Wisconsin at the time of closing. The merger consideration totaled approximately $49.6 million. Pursuant to the terms of the Merger Agreement, Partnership shareholders had the option to receive either 0.34879 shares of the Company’s common stock or $17.3001 in cash for each outstanding share of Partnership common stock, and cash in lieu of any remaining fractional share. The stock versus cash elections by the Partnership shareholders were subject to final consideration being made up of approximately $14.3 million in cash and 534,659 shares of Company common stock, valued at approximately $35.3 million (based on a value of $66.03 per share on the closing date). For more information concerning this acquisition, see “Note 2 – Acquisition” in the Company’s audited consolidated financial statements included in the Company’s Annual Report. On May 15, 2020, the Company completed a merger with Tomah Bancshares, Inc. (“Timberwood”), a bank holding company headquartered in Tomah, Wisconsin, pursuant to the Agreement and Plan of Bank Merger, dated as of November 20, 2019, by and among the Company and Timberwood, whereby Timberwood merged with and into the Company, and Timberwood Bank, Timberwood’s wholly-owned banking subsidiary, merged with and into the Bank. Timberwood’s principal activity was the ownership and operation of Timberwood Bank, a state-chartered banking institution that operated one (1) branch in Wisconsin at the time of closing. The merger consideration totaled approximately $29.8 million. Pursuant to the terms of the Merger Agreement, Timberwood shareholders received 5.1445 shares of the Company’s common stock for each outstanding share of Timberwood common stock, and cash in lieu of any remaining fractional share. Company stock issued totaled 575,641 shares valued at approximately $29.4 million, with cash of $0.4 million comprising the remainder of merger consideration. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of Timberwood prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of core deposit intangibles, securities, premises and equipment, loans, other assets and liabilities, deposits and borrowings with the assistance of third party valuations, appraisals, and third party advisors. The estimated fair values will be subject to refinement for up to one year after deal consummation as additional information becomes available relative to the closing date fair values. The fair value of the assets acquired and liabilities assumed on May 15, 2020 was as follows: As Recorded by Fair Value As Recorded by Timberwood Adjustments the Company Cash, cash equivelants and securities $ 79,614 $ (656) $ 78,958 Other investments 533 533 Loans 117,343 1,068 118,411 Premises and equipment, net 2,538 (1,006) 1,532 Core deposit intangible — 1,697 1,697 Other assets 11,392 (2,605) 8,787 Total assets acquired $ 211,420 $ (1,502) $ 209,918 Deposits $ 170,362 $ 742 $ 171,104 Subordinated debt 6,500 6,500 Other borrowings 12,938 210 13,148 Other liabilities 1,923 (974) 949 Total liabilities assumed $ 191,723 $ (22) $ 191,701 Excess of assets acquired over liabilties assumed $ 19,697 $ (1,480) $ 18,217 Less: purchase price 29,812 Goodwill (originally recorded) 11,595 Refinement to fair value estimates (29) Goodwill (after refinement) $ 11,566

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 3 – EARNINGS PER SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. There were no anti-dilutive stock options for the three and nine months ended September 30, 2020 or 2019. The following table presents the factors used in the earnings per share computations for the period indicated. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Net income available to common shareholders $ 10,954 $ 6,659 $ 26,516 $ 19,235 Less: Earnings allocated to participating securities (82) (48) (202) (148) Net income allocated to common shareholders $ 10,872 $ 6,611 $ 26,314 $ 19,087 Weighted average common shares outstanding including participating securities 7,731,670 7,036,807 7,424,257 6,731,089 Less: Participating securities (1) (58,098) (51,040) (56,464) (51,608) Average shares 7,673,572 6,985,767 7,367,793 6,679,481 Basic earnings per common shares $ 1.42 $ 0.95 $ 3.57 $ 2.86 Diluted Net income available to common shareholders $ 10,954 $ 6,659 $ 26,516 $ 19,235 Weighted average common shares outstanding for basic earnings per common share 7,673,572 6,985,767 7,367,793 6,679,481 Add: Dilutive effects of stock based compensation awards 17,754 121,988 44,880 99,564 Average shares and dilutive potential common shares 7,691,326 7,107,755 7,412,673 6,779,045 Diluted earnings per common share $ 1.42 $ 0.93 $ 3.56 $ 2.83 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested.

SECURITIES

SECURITIES	9 Months Ended
SECURITIES	Sep. 30, 2020
SECURITIES
SECURITIES	NOTE 4 – SECURITIES The Company’s securities available for sale as of September 30, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value September 30, 2020 Obligations of U.S. Government sponsored agencies $ 18,283 $ 595 $ (59) $ 18,819 Obligations of states and political subdivisions 69,414 4,104 (1) 73,517 Mortgage-backed securities 47,864 2,940 — 50,804 Corporate notes 27,325 507 — 27,832 Certificates of deposit 2,320 42 — 2,362 Total available for sale securities $ 165,206 $ 8,188 $ (60) $ 173,334 December 31, 2019 Obligations of U.S. Government sponsored agencies $ 12,218 $ — $ (158) $ 12,060 Obligations of states and political subdivisions 52,594 2,197 (20) 54,771 Mortgage-backed securities 50,770 988 (38) 51,720 Corporate notes 62,794 172 (11) 62,955 Total available for sale securities $ 178,376 $ 3,357 $ (227) $ 181,506 The Company’s securities held to maturity as of September 30, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value September 30, 2020 Obligations of states and political subdivisions $ 6,670 $ 21 $ — $ 6,691 December 31, 2019 U.S. Treasury securities $ 33,527 $ 1,076 $ (22) $ 34,581 Obligations of states and political subdivisions 10,207 15 — 10,222 Total held to maturity securities $ 43,734 $ 1,091 $ (22) $ 44,803 The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020 - Available for Sale Obligations of U.S. Government sponsored agencies $ 5,639 $ (59) $ — $ — $ 5,639 $ (59) Obligations of states and political subdivisions 354 (1) — — 354 (1) Totals $ 5,993 $ (60) $ — $ — $ 5,993 $ (60) December 31, 2019 - Available for Sale Obligations of U.S. Government sponsored agencies $ 12,059 $ (158) $ — $ — $ 12,059 $ (158) Obligations of states and political subdivisions 5,636 (19) 999 (1) 6,635 (20) Mortgage-backed securities 4,038 (26) 2,187 (12) 6,225 (38) Corporate notes 3,925 (11) — — 3,925 (11) Totals $ 25,658 $ (214) $ 3,186 $ (13) $ 28,844 $ (227) December 31, 2019 - Held to Maturity U.S. Treasury securities $ 2,958 $ (22) $ — $ — $ 2,958 $ (22) As of September 30, 2020, the Company does not consider its securities with unrealized losses to be other-than-temporarily impaired, as the unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The Company has the intent and ability to hold its securities to maturity or until par is recovered. There were no other-than-temporary impairments charged to earnings during the nine months ended September 30, 2020 or 2019. The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of September 30, 2020. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 12,735 $ 12,834 $ 751 $ 751 Due after one year through 5 years 12,500 13,308 3,524 3,545 Due after 5 years through ten years 11,014 11,569 2,395 2,395 Due after 10 years 81,093 84,819 — — Subtotal 117,342 122,530 6,670 6,691 Mortgage-backed securities 47,864 50,804 — — Total $ 165,206 $ 173,334 $ 6,670 $ 6,691 The following is a summary of the proceeds from sales of securities available for sale and held to maturity, as well as gross gains and losses for the nine months ended September 30, 2020 and 2019. Nine months eneded September 30, 2020 2019 Proceeds from sales of securities $ 59,697 $ 748 Gross gains on sales 3,284 23 Gross losses on sales (51) —

LOANS, ALLOWANCE FOR LOAN LOSSE

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY	9 Months Ended
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY	Sep. 30, 2020
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY	NOTE 5 – LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY The following table presents total loans by portfolio segment and class of loan as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Commercial/industrial $ 547,750 $ 302,538 Commercial real estate - owner occupied 530,476 459,782 Commercial real estate - non-owner occupied 426,463 353,723 Construction and development 150,139 132,296 Residential 1‑4 family 488,925 448,605 Consumer 29,684 29,462 Other 25,552 10,440 Subtotals 2,198,989 1,736,846 ALL (16,318) (11,396) Loans, net of ALL 2,182,671 1,725,450 Deferred loan fees and costs (5,761) (503) Loans, net $ 2,176,910 $ 1,724,947 The ALL by loan type as of September 30, 2020 and 2019 is summarized as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2020 $ 2,320 $ 4,587 $ 1,578 $ 548 $ 2,169 $ 141 $ 53 $ 11,396 Charge-offs (631) (773) — — (63) (33) (19) (1,519) Recoveries 2 873 40 — 40 — 11 966 Provision 138 995 2,276 474 1,259 86 247 5,475 ALL - September 30, 2020 1,829 5,682 3,894 1,022 3,405 194 292 16,318 ALL ending balance individually evaluated for impairment 14 483 1,098 — — — — 1,595 ALL ending balance collectively evaluated for impairment $ 1,815 $ 5,199 $ 2,796 $ 1,022 $ 3,405 $ 194 $ 292 $ 14,723 Loans outstanding - September 30, 2020 $ 547,750 $ 530,476 $ 426,463 $ 150,139 $ 488,925 $ 29,684 $ 25,552 $ 2,198,989 Loans ending balance individually evaluated for impairment 533 7,334 7,904 — — — — 15,771 Loans ending balance collectively evaluated for impairment $ 547,217 $ 523,142 $ 418,559 $ 150,139 $ 488,925 $ 29,684 $ 25,552 $ 2,183,218 Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2019 $ 3,021 $ 3,750 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 12,248 Charge-offs (1,229) (4,974) (55) — (83) (75) (29) (6,445) Recoveries 3 4 60 — 126 4 6 203 Provision 507 4,360 (186) (221) (423) 70 18 4,125 ALL - September 30, 2019 2,302 3,140 1,919 504 2,092 147 27 10,131 ALL ending balance individually evaluated for impairment — — — — — — — — ALL ending balance collectively evaluated for impairment $ 2,302 $ 3,140 $ 1,919 $ 504 $ 2,092 $ 147 $ 27 $ 10,131 Loans outstanding - September 30, 2019 $ 310,536 $ 467,030 $ 337,558 $ 118,055 $ 443,906 $ 31,665 $ 5,985 $ 1,714,735 Loans ending balance individually evaluated for impairment — — — — — — — — Loans ending balance collectively evaluated for impairment $ 310,536 $ 467,030 $ 337,558 $ 118,055 $ 443,906 $ 31,665 $ 5,985 $ 1,714,735 The Company’s past due loans as of September 30, 2020 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 4 $ — $ 599 $ 603 Commercial real estate - owner occupied 121 — 8,690 8,811 Commercial real estate - non-owner occupied — — 7,427 7,427 Construction and development 29 — — 29 Residential 1‑4 family 318 72 1,092 1,482 Consumer 34 3 — 37 Other — — — — $ 506 $ 75 $ 17,808 $ 18,389 The Company’s past due loans as of December 31, 2019 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 235 $ — $ 1,923 $ 2,158 Commercial real estate - owner occupied 1,124 — 2,513 3,637 Commercial real estate - non-owner occupied — — 75 75 Construction and development 768 11 — 779 Residential 1‑4 family 805 307 550 1,662 Consumer 70 36 32 138 Other — — — — $ 3,002 $ 354 $ 5,093 $ 8,449 The Company utilizes a numerical risk rating system for commercial relationships. All other types of relationships (ex: residential, consumer, other) are assigned a “Pass” rating, unless they have fallen 90 days past due or more, at which time they receive a rating of 7. The Company uses split ratings for government guaranties on loans. The portion of a loan that is supported by a government guaranty is included with other Pass credits. The determination of a commercial loan risk rating begins with completion of a matrix, which assigns scores based on the strength of the borrower’s debt service coverage, collateral coverage, balance sheet leverage, industry outlook, and customer concentration. A weighted average is taken of these individual scores to arrive at the overall rating. This rating is subject to adjustment by the loan officer based on facts and circumstances pertaining to the borrower. Risk ratings are subject to independent review. Commercial borrowers with ratings between 1 and 5 are considered Pass credits, with 1 being most acceptable and 5 being just above the minimum level of acceptance. Commercial borrowers rated 6 have potential weaknesses which may jeopardize repayment ability. Borrowers rated 7 have a well-defined weakness or weaknesses such as the inability to demonstrate significant cash flow for debt service based on analysis of the company’s financial information. These loans remain on accrual status provided full collection of principal and interest is reasonably expected. Otherwise they are deemed impaired and placed on nonaccrual status. Borrowers rated 8 are the same as 7 rated credits with one exception: collection or liquidation in full is not probable. The breakdown of loans by risk rating as of September 30, 2020 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 543,008 $ 668 $ 4,074 $ — $ 547,750 Commercial real estate - owner occupied 496,026 4,467 29,983 — 530,476 Commercial real estate - non-owner occupied 415,970 — 10,493 — 426,463 Construction and development 149,999 — 140 — 150,139 Residential 1‑4 family 486,462 604 1,859 — 488,925 Consumer 29,684 — — — 29,684 Other 25,552 — — — 25,552 $ 2,146,701 $ 5,739 $ 46,549 $ — $ 2,198,989 The breakdown of loans by risk rating as of December 31, 2019 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 290,180 $ 5,329 $ 7,029 $ — $ 302,538 Commercial real estate - owner occupied 422,336 5,603 31,843 — 459,782 Commercial real estate - non-owner occupied 344,278 8,774 671 — 353,723 Construction and development 132,266 — 30 — 132,296 Residential 1‑4 family 447,630 256 719 — 448,605 Consumer 29,430 — 32 — 29,462 Other 10,440 — — — 10,440 $ 1,676,560 $ 19,962 $ 40,324 $ — $ 1,736,846 The ALL represents management’s estimate of probable and inherent credit losses in the loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset on the consolidated balance sheets. Loan losses are charged off against the ALL, while recoveries of amounts previously charged off are credited to the ALL. A provision for loan losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. The ALL consists of specific reserves for certain individually evaluated impaired loans and general reserves for collectively evaluated non-impaired loans. Specific reserves reflect estimated losses on impaired loans from management’s analyses developed through specific credit allocations. The specific reserves are based on regular analyses of impaired, non-homogenous loans greater than $250,000. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. The general reserve is based in part on the Bank’s historical loss experience which is updated quarterly. The general reserve portion of the ALL also includes consideration of certain qualitative factors such as 1) changes in lending policies and/or underwriting practices, 2) national and local economic conditions, 3) changes in portfolio volume and nature, 4) experience, ability and depth of lending management and other relevant staff, 5) levels of and trends in past-due and nonaccrual loans and quality, 6) changes in loan review and oversight, 7) impact and effects of concentrations and 8) other issues deemed relevant. There are many factors affecting ALL; some are quantitative while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which might possibly result in credit losses) includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. A summary of impaired loans individually evaluated as of September 30, 2020 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 595 $ 3,625 $ 7,892 $ — $ — $ — $ — $ — $ 12,112 Unpaid principal balance 595 3,625 7,892 — — — — — 12,112 Related allowance 14 483 1,098 — — — — — 1,595 With no related allowance recorded: Recorded investment $ — $ 4,045 $ — $ — $ — $ — $ — $ — $ 4,045 Unpaid principal balance — 4,052 — — — — — — 4,052 Related allowance — — — — — — — — — Total: Recorded investment $ 595 $ 7,670 $ 7,892 $ — $ — $ — $ — $ — $ 16,157 Unpaid principal balance 595 7,677 7,892 — — — — — 16,164 Related allowance 14 483 1,098 — — — — — 1,595 Average recorded investment $ 1,237 $ 5,784 $ $ — $ — $ — $ — $ — $ 10,967 A summary of impaired loans individually evaluated as of December 31, 2019 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 1,878 $ 960 $ — $ — $ — $ — $ — $ 2,838 Unpaid principal balance 1,878 960 — — — — — 2,838 Related allowance 760 80 — — — — — 840 With no related allowance recorded: Recorded investment $ — $ 2,938 $ — $ — $ — $ — $ — $ 2,938 Unpaid principal balance — 2,938 — — — — — 2,938 Related allowance — — — — — — — — Total: Recorded investment $ 1,878 $ 3,898 $ — $ — $ — $ — $ — $ 5,776 Unpaid principal balance 1,878 3,898 — — — — — 5,776 Related allowance 760 80 — — — — — 840 Average recorded investment $ 3,773 $ 5,847 $ — $ — $ 351 $ — $ — $ 9,971 Interest recognized while these loans were impaired is considered immaterial to the consolidated financial statements for the nine months ended September 30, 2020 and 2019. The following table presents loans acquired with deteriorated credit quality as of September 30, 2020 and December 31, 2019. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. September 30, 2020 December 31, 2019 Recorded Unpaid Principal Recorded Unpaid Principal Investment Balance Investment Balance Commercial & Industrial $ 1,191 $ 1,365 $ 191 $ 212 Commercial real estate - owner occupied 3,986 4,847 518 785 Commercial real estate - non-owner occupied 1,241 1,405 — — Construction and development 95 106 213 237 Residential 1‑4 family 881 1,182 901 1,031 Consumer — — — — Other — — — — $ 7,394 $ 8,905 $ 1,823 $ 2,265 Due to the nature of these loan relationships, prepayment expectations have not been considered in the determination of future cash flows. Management regularly monitors these loan relationships, and if information becomes available that indicates expected cash flows will differ from initial expectations, it may necessitate reclassification between accretable and non-accretable components of the original discount calculation. The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the nine months ended September 30, 2020, and year ended December 31, 2019: September 30, 2020 December 31, 2019 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 222 $ 220 $ 318 $ 745 Acquired balance, net 1,064 727 44 333 Reclassifications between accretable and non-accretable 696 (696) 858 (858) Accretion to loan interest income (722) — (998) — Balance at end of period $ 1,260 $ 251 $ 222 $ 220 A troubled debt restructuring (“TDR”) includes a loan modification where a borrower is experiencing financial difficulty and we grant a concession to that borrower that we would not otherwise consider except for the borrower’s financial difficulties. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Company by increasing the ultimate probability of collection. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, which could occur based on the same criteria as non-TDR loans, it remains there until a sufficient period of performance under the restructured terms has occurred at which it returned to accrual status, generally 6 months. As of September 30, 2020 and December 31, 2019 the Company had specific reserves of $0 and $80,000 for TDRs, respectively, and none of them have subsequently defaulted. During the first nine months of 2020 the Bank has experienced an increase in customer requests for loan modifications and payment deferrals as a result of impacts of the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) act, signed into law on March 27, 2020, allowed financial institutions the option to exempt loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR from consideration for TDR treatment. Modifications in the scope of the exemption include forbearance agreements, interest-rate modifications, repayment plan changes and any other similar arrangements that would delay payments of principal or interest. This relief is allowable on modifications on loans which were not more than 30 days past due as of December 31, 2019, and that occur after March 1, 2020, and before the earlier of 60 days after the date on which the national emergency related to the COVID-19 outbreak is terminated. The following table presents the TDRs during the nine months ended September 30, 2020. There were no TDRs during the same period in 2019. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commerical Real Estate 1 $ 115 $ 115

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	9 Months Ended
MORTGAGE SERVICING RIGHTS	Sep. 30, 2020
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS	NOTE 6 – MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the accompanying consolidated balance sheets. MSRs are recognized as separate assets when loans sold in the secondary market are sold with servicing retained. The Company utilizes a third-party consulting firm to determine an accurate assessment of the MSRs fair value. The third-party firm collects relevant data points from numerous sources. Some of these data points relate directly to the pricing level or relative value of the mortgage servicing while other data points relate to the assumptions used to derive fair value. In addition, the valuation evaluates specific collateral types, and current and historical performance of the collateral in question. The valuation process focuses on the non-distressed secondary servicing market, common industry practices and current regulatory standards. The primary determinants of the fair value of MSRs are servicing fee percentage, ancillary income, expected loan life or prepayment speeds, discount rates, costs to service, delinquency rates, foreclosure losses and recourse obligations. The valuation data also contains interest rate shock analyses for monitoring fair value changes in differing interest rate environments. Following is an analysis of activity in the MSR asset: Nine Months Ended Year Ended September 30, 2020 December 31, 2019 Fair value at beginning of year $ 4,287 $ 3,085 MSR asset acquired 384 1,859 Servicing asset additions 980 740 Loan payments and payoffs (1,132) (821) Changes in valuation inputs and assumptions used in the valuation model (393) (576) Amount recognized through earnings (545) (657) Fair value at end of period $ 4,126 $ 4,287 Unpaid principal balance of loans serviced for others $ 628,204 $ 554,374 MSR as a percent of loans serviced for others 0.66 0.77 The primary economic assumptions utilized by the Company in measuring the value of MSRs were constant prepayment speeds of 17.5 and 12.1 months as of September 30, 2020 and December 31, 2019, respectively, and discount rates of 10.1% and 10.0% as of each period end.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
NOTES PAYABLE	Sep. 30, 2020
NOTES PAYABLE
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE From time to time the Company utilizes FHLB advances to fund liquidity. At September 30, 2020 and December, 31, 2019, the Company had outstanding balances borrowed from the FHLB of $25.0 million and $39.8 million, respectively. The advances, rate, and maturities of FHLB advances were as follows: September 30, December 31, Maturity Rate 2020 2019 (dollars in thousands) Fixed rate, fixed term 01/27/2020 1.42 % $ — $ 1,000 Fixed rate, fixed term 11/02/2020 1.28 % 400 400 Fixed rate, fixed term 11/02/2020 2.83 % 500 — Fixed rate, fixed term 12/08/2020 2.76 % 500 — Fixed rate, fixed term 12/28/2020 2.07 % 250 — Fixed rate, fixed term 01/22/2021 1.67 % 2,000 2,000 Fixed rate, fixed term 01/25/2021 2.37 % 5,000 5,000 Fixed rate, fixed term 01/27/2021 1.60 % 1,000 1,000 Fixed rate, fixed term 03/29/2021 0.00 % 2,377 — Fixed rate, fixed term 05/03/2021 2.87 % 500 — Fixed rate, fixed term 05/03/2021 0.00 % 4,000 — Fixed rate, fixed term 05/03/2021 0.00 % 4,000 — Fixed rate, fixed term 06/28/2021 2.00 % 250 — Fixed rate, fixed term 11/03/2021 1.46 % 400 400 Fixed rate, fixed term 12/08/2021 2.87 % 500 — Fixed rate, fixed term 12/27/2021 1.99 % 250 — Fixed rate, fixed term 01/24/2022 2.51 % 250 — Fixed rate, fixed term 05/02/2022 2.98 % 500 — Fixed rate, fixed term 06/08/2022 2.92 % 500 — Fixed rate, fixed term 08/08/2022 1.76 % — 10,000 Fixed rate, fixed term 11/21/2022 3.02 % 600 — Fixed rate, fixed term 08/08/2023 1.74 % — 10,000 Fixed rate, fixed term 11/21/2023 3.06 % 600 — Fixed rate, fixed term 08/08/2024 1.75 % — 10,000 Fixed rate, fixed term 01/04/2027 0.00 % 103 — Fixed rate, fixed term 04/22/2030 0.00 % 508 — 24,988 39,800 Adjustment due to purchase accounting 157 (10) $ 25,145 $ 39,790 Future maturities of borrowings were as follows: September 30, December 31, 2020 2019 1 year or less $ 20,777 $ 1,400 1 to 2 years 2,400 8,400 2 to 3 years 600 10,000 3 to 4 years 600 10,000 4 to 5 years — 10,000 Over 5 years 611 — $ 24,988 $ 39,800 The Company maintained a $5.0 million line of credit with a commercial bank. At December 31, 2019 the Company had outstanding balances on this note of $5.0 million. The note required monthly payments of interest at a variable rate, and was due in full on May 25, 2021. This agreement was terminated on July 22, 2020. The Company maintained a $5.0 million line of credit with another commercial bank. At December 31, 2019 the Company had outstanding balances on this note of $5.0 million. This note was not renewed when it matured on May 19, 2020. The Company maintains a $7.5 million line of credit with another commercial bank, which was entered into on May 15, 2020. There were no outstanding balances on this note at September 30, 2020. Any future borrowings will require monthly payments of interest at a variable rate, and will be due in full on May 15, 2021.

SUBORDINATED NOTES

SUBORDINATED NOTES	9 Months Ended
SUBORDINATED NOTES	Sep. 30, 2020
SUBORDINATED NOTES
SUBORDINATED NOTES	NOTE 8 – SUBORDINATED NOTES During September 2017, the Company entered into subordinated note agreements with three separate commercial banks. The Company had outstanding balances of $11.5 million under these agreements as of September 30, 2020 and December 31, 2019. These notes were all issued with 10 -year maturities, carry interest at a variable rate payable quarterly, are callable on or after the sixth anniversary of the issuance dates, and qualify for Tier 2 capital for regulatory purposes. As a part of the Partnership acquisition, further detailed in Note 2, the Company assumed a subordinated note agreement with outstanding balance of $7.0 million, and an initial fair market value adjustment of $0.2 million ($12,000 and $122,000 as of September 30, 2020 and December 31, 2019, respectively). The total amount outstanding was $7.0 million and $7.1 million at September 30, 2020 and December 31, 2019, respectively. The note was set to mature on October 1, 2025, required quarterly interest-only payments at a rate of 7.1% prior to maturity, and could be prepaid without penalty on or after October 1, 2020, and qualified for Tier 2 capital for regulatory purposes. This note was prepaid in full on October 1, 2020. On July 22, 2020, the Company entered into subordinated note agreements with two separate commercial banks. The Company has through December 31, 2020, to borrow funds up to a maximum availability of $6.0 million under each agreement, or $12.0 million total. These notes were issued with 10 -year maturities, carry interest at a fixed rate of 5.0% through June 30, 2025, and at a variable rate thereafter, payable quarterly. These notes are callable on or after January 1, 2026 and qualify for Tier 2 capital for regulatory purposes. The Company had outstanding balances of $2.0 million under these agreements at September 30, 2020.

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
REGULATORY MATTERS	Sep. 30, 2020
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 9 – REGULATORY MATTERS Banks and certain bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law in May 2018 raised the threshold for those bank holding companies subject to the Federal Reserve’s Small Bank Holding Company Policy Statement to $3 billion. As a result, as of the effective date of that change in 2018, the Company was no longer required to comply with the risk-based capital rules applicable to the Bank. The Federal Reserve may, however, require smaller bank holding companies to maintain certain minimum capital levels, depending upon general economic conditions and a bank holding company’s particular condition, risk profile and growth plans. Under regulatory guidance for non-advanced approaches institutions, the Bank is required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2020 and December 31, 2019, the Bank met all capital adequacy requirements to which they are subject. Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer was fully phased in January 1, 2019 at 2.50%. Actual and required capital amounts and ratios are presented below at period-end: To Be Well For Capital Minimum Capital Capitalized Under Adequacy Adeqaucy with Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total capital (to risk-weighted assets): Corporation $ 255,984 11.89 % NA NA NA NA NA NA Bank $ 252,284 11.72 % $ 172,179 8.00 % $ 225,985 10.50 % $ 215,224 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 219,154 10.18 % NA NA NA NA NA NA Bank $ 235,966 10.96 % $ 129,135 6.00 % $ 182,941 8.50 % $ 172,179 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 219,154 10.18 % NA NA NA NA NA NA Bank $ 235,966 10.96 % $ 96,851 4.50 % $ 150,657 7.00 % $ 139,896 6.50 % Tier 1 capital (to average assets): Corporation $ 219,154 8.54 % NA NA NA NA NA NA Bank $ 235,966 9.25 % $ 102,019 4.00 % $ 102,019 4.00 % $ 127,524 5.00 % December 31, 2019 Total capital (to risk-weighted assets): Corporation $ 208,900 10.35 % NA NA NA NA NA NA Bank $ 215,347 10.69 % $ 161,163 8.00 % $ 211,527 10.50 % $ 201,454 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 120,872 6.00 % $ 171,236 8.50 % $ 161,163 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 90,654 4.50 % $ 141,018 7.00 % $ 130,945 6.50 % Tier 1 capital (to average assets): Corporation $ 178,882 8.46 % NA NA NA NA NA NA Bank $ 203,951 9.67 % $ 84,390 4.00 % 84,390 4.00 % $ 105,487 5.00 %

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed rate commitments also considers the difference between current levels of interest rates and committed rates. The notional amount of rate-lock commitments at September 30, 2020 and December 31, 2019 was approximately $73.0 million and $14.8 million, respectively. The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual or notional amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding: Notional Amount September 30, 2020 December 31, 2019 Commitments to extend credit: Fixed $ 68,438 $ 49,741 Variable 380,615 333,468 Credit card arrangements 9,973 11,148 Letters of credit 7,794 17,121

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Sep. 30, 2020
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 11 – FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Assets Securities available for sale Obligations of U.S.Government sponsored agencies $ 18,819 $ — $ 18,819 $ — Obligations of states and political subdivisions 73,517 — 73,517 — Mortgage-backed securities 50,804 — 50,804 — Corporate notes 27,832 — 27,832 — Certificates of deposit 2,362 — 2,362 — Mortgage servicing rights 4,126 — 4,126 — December 31, 2019 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 12,060 $ — $ 12,060 $ — Obligations of states and political subdivisions 54,771 — 54,771 — Mortgage-backed securities 51,720 — 51,720 — Corporate notes 62,955 — 62,955 — Mortgage servicing rights 4,287 — 4,287 — There were no assets measured on a recurring basis using significant unobservable inputs (Level 3). September 30, 2020 December 31, 2019 Total securities at beginning of period $ — $ 400 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (400) Transfer in and/or out of level 3 — — Total securities at end of period $ — $ — Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 OREO $ 3,264 $ — $ — $ 3,264 Impaired Loans, net of impairment reserve 24,984 — — 24,984 $ 28,248 $ — $ — $ 28,248 December 31, 2019 OREO $ 6,888 $ — $ — $ 6,888 Impaired Loans, net of impairment reserve 6,847 — — 6,847 $ 13,735 $ — $ — $ 13,735 The following is a description of the valuation methodologies used by the Company for the items noted in the table above, including the general classification of such instruments in the fair value hierarchy. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of September 30, 2020 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 100 % 37.1 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 5.7 % As of December 31, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 61 % 33.5 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 6.1 % The following methods and assumptions were used by the Company to estimate fair value of financial instruments. Cash and cash equivalents Securities Loans held for sale Loans value of impaired and other nonperforming loans are estimated using discounted expected future cash flows or the fair value of the underlying collateral, if applicable. Other investments Mortgage servicing rights Cash value of life insurance Deposits Securities sold under repurchase agreements Notes payable and subordinated notes Off-balance-sheet instruments The carrying value and estimated fair value of financial instruments at September 30, 2020 and December 31, 2019 follows: Fair Value Carrying September 30, 2020 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 80,752 $ 80,752 $ — $ — $ 80,752 Securities held to maturity 6,670 — 6,691 — 6,691 Securities available for sale 173,334 — 173,334 — 173,334 Loans held for sale 659 — — 659 659 Loans, net 2,176,910 — — 2,161,367 2,161,367 Other investments, at cost 8,896 — — 8,896 8,896 Mortgage servicing rights 4,126 — 4,126 — 4,126 Cash surrender value of life insurance 31,197 31,197 — — 31,197 Deposits $ 2,271,040 $ — $ — $ 2,255,945 $ 2,255,945 Securities sold under repurchase agreements 23,894 — 23,894 — 23,894 Notes payable 25,145 — 25,145 — 25,145 Subordinated notes 20,512 — 20,512 — 20,512 Fair Value Carrying December 31, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 86,452 $ 86,452 $ — $ — $ 86,452 Securities held to maturity 43,734 — 44,803 — 44,803 Securities available for sale 181,506 — 181,506 — 181,506 Loans held for sale 587 — — 587 587 Loans, net 1,724,947 — — 1,723,542 1,723,542 Other investments, at cost 4,933 — — 4,933 4,933 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 24,945 24,945 — — 24,945 Financial liabilities: Deposits $ 1,843,311 $ — $ — $ 1,783,638 $ 1,783,638 Securities sold under repurchase agreements 45,865 — 45,865 — 45,865 Notes payable 49,790 — 49,790 — 49,790 Subordinated notes 18,622 — 18,622 — 18,622 The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the consolidated balance sheet. Significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
STOCK BASED COMPENSATION	Sep. 30, 2020
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 12 – STOCK BASED COMPENSATION The Company has made restricted share grants pursuant to the Bank First Corporation 2011 Equity Plan and the Bank First Corporation 2020 Equity Plan, which replaced the 2011 Plan. The purpose of the Plan is to provide financial incentives for selected employees and for the non-employee Directors of the Company, thereby promoting the long-term growth and financial success of the Company. The Company stock to be offered under the Plan pursuant to Stock Appreciation Rights, performance unit awards, and restricted stock and unrestricted Company stock awards must be Company stock previously issued and outstanding and reacquired by the Company. The number of shares of Company stock that may be issued pursuant to awards under the 2020 Plan shall not exceed, in the aggregate, 700,000. As of September 30, 2020, 399 shares of Company stock have been awarded under the 2020 Plan. Compensation expense for restricted stock is based on the fair value of the awards of Bank First Corporation common stock at the time of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting periods. For the nine months ended September 30, 2020 and 2019, compensation expense of $0.8 million and $0.5 million, respectively, was recognized related to restricted stock awards. As of September 30, 2020, there was $2.3 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted average period of 2.84 years. The aggregate grant date fair value of restricted stock awards that vested during the nine months ended September 30, 2020, was approximately $0.7 million. For the nine months ended September 30, For the nine months ended September 30, 2020 2019 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 50,676 $ 43.03 51,776 $ 34.27 Granted 27,466 60.76 17,015 56.62 Vested (18,623) 37.28 (17,212) 30.54 Forfeited or cancelled (2,344) 51.27 (903) 41.01 Outstanding at end of year 57,175 $ 53.08 50,676 $ 43.03

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2020
LEASES
LEASES	NOTE 13 – LEASES Accounting standards require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements, establishing a right-of-use (“ROU”) model that requires a lessee to recognize a ROU lease asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessee Leases The Company’s lessee leases are operating leases, and consist of leased real estate for branches. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Rent escalations are generally specified by a payment schedule, or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. Accounting standards require the use of the lease interest rate; however, this rate is typically not known. As an alternative, the use of an entity’s fully secured incremental borrowing rate is permitted. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement. Nine-month period ended September 30, 2020 September 30, 2019 Amortization of ROU Assets - Operating Leases $ 31 $ 35 Interest on Lease Liabilities - Operating Leases 69 63 Operating Lease Cost (Cost resulting from lease payments) 100 98 ROU Assets - Operating Leases at beginning of period 1,699 — New ROU Assets - Operating Leases — 1,744 ROU Assets - Operating Leases at September 30, 1,668 1,708 Weighted Average Lease Term (Years) - Operating Leases 31.51 31.60 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of September 30, 2020 is as follows: September 30, 2020 Operating lease payments due: Within one year $ 141 After one but within two years 124 After two but within three years 86 After three but within four years 86 After four years but within five years 86 After five years 3,346 Total undiscounted cash flows 3,869 Discount on cash flows (2,201) Total operating lease liabilities $ 1,668

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
ACQUISITIONS (Tables)	Sep. 30, 2020
ACQUISITIONS
Schedule of Fair Vlue of Assets And Liabilities	As Recorded by Fair Value As Recorded by Timberwood Adjustments the Company Cash, cash equivelants and securities $ 79,614 $ (656) $ 78,958 Other investments 533 533 Loans 117,343 1,068 118,411 Premises and equipment, net 2,538 (1,006) 1,532 Core deposit intangible — 1,697 1,697 Other assets 11,392 (2,605) 8,787 Total assets acquired $ 211,420 $ (1,502) $ 209,918 Deposits $ 170,362 $ 742 $ 171,104 Subordinated debt 6,500 6,500 Other borrowings 12,938 210 13,148 Other liabilities 1,923 (974) 949 Total liabilities assumed $ 191,723 $ (22) $ 191,701 Excess of assets acquired over liabilties assumed $ 19,697 $ (1,480) $ 18,217 Less: purchase price 29,812 Goodwill (originally recorded) 11,595 Refinement to fair value estimates (29) Goodwill (after refinement) $ 11,566

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2020
EARNINGS PER SHARE
Schedule of Earnings Per Common Share	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Net income available to common shareholders $ 10,954 $ 6,659 $ 26,516 $ 19,235 Less: Earnings allocated to participating securities (82) (48) (202) (148) Net income allocated to common shareholders $ 10,872 $ 6,611 $ 26,314 $ 19,087 Weighted average common shares outstanding including participating securities 7,731,670 7,036,807 7,424,257 6,731,089 Less: Participating securities (1) (58,098) (51,040) (56,464) (51,608) Average shares 7,673,572 6,985,767 7,367,793 6,679,481 Basic earnings per common shares $ 1.42 $ 0.95 $ 3.57 $ 2.86 Diluted Net income available to common shareholders $ 10,954 $ 6,659 $ 26,516 $ 19,235 Weighted average common shares outstanding for basic earnings per common share 7,673,572 6,985,767 7,367,793 6,679,481 Add: Dilutive effects of stock based compensation awards 17,754 121,988 44,880 99,564 Average shares and dilutive potential common shares 7,691,326 7,107,755 7,412,673 6,779,045 Diluted earnings per common share $ 1.42 $ 0.93 $ 3.56 $ 2.83 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
SECURITIES (Tables)	Sep. 30, 2020
SECURITIES
Schedule of securities available for sale	The Company’s securities available for sale as of September 30, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value September 30, 2020 Obligations of U.S. Government sponsored agencies $ 18,283 $ 595 $ (59) $ 18,819 Obligations of states and political subdivisions 69,414 4,104 (1) 73,517 Mortgage-backed securities 47,864 2,940 — 50,804 Corporate notes 27,325 507 — 27,832 Certificates of deposit 2,320 42 — 2,362 Total available for sale securities $ 165,206 $ 8,188 $ (60) $ 173,334 December 31, 2019 Obligations of U.S. Government sponsored agencies $ 12,218 $ — $ (158) $ 12,060 Obligations of states and political subdivisions 52,594 2,197 (20) 54,771 Mortgage-backed securities 50,770 988 (38) 51,720 Corporate notes 62,794 172 (11) 62,955 Total available for sale securities $ 178,376 $ 3,357 $ (227) $ 181,506
Schedule of securities held to maturity	The Company’s securities held to maturity as of September 30, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value September 30, 2020 Obligations of states and political subdivisions $ 6,670 $ 21 $ — $ 6,691 December 31, 2019 U.S. Treasury securities $ 33,527 $ 1,076 $ (22) $ 34,581 Obligations of states and political subdivisions 10,207 15 — 10,222 Total held to maturity securities $ 43,734 $ 1,091 $ (22) $ 44,803
Schedule of fair value and gross unrealized lossess of securities	The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020 - Available for Sale Obligations of U.S. Government sponsored agencies $ 5,639 $ (59) $ — $ — $ 5,639 $ (59) Obligations of states and political subdivisions 354 (1) — — 354 (1) Totals $ 5,993 $ (60) $ — $ — $ 5,993 $ (60) December 31, 2019 - Available for Sale Obligations of U.S. Government sponsored agencies $ 12,059 $ (158) $ — $ — $ 12,059 $ (158) Obligations of states and political subdivisions 5,636 (19) 999 (1) 6,635 (20) Mortgage-backed securities 4,038 (26) 2,187 (12) 6,225 (38) Corporate notes 3,925 (11) — — 3,925 (11) Totals $ 25,658 $ (214) $ 3,186 $ (13) $ 28,844 $ (227) December 31, 2019 - Held to Maturity U.S. Treasury securities $ 2,958 $ (22) $ — $ — $ 2,958 $ (22)
Schedule of amortized cost and estimated fair value of securities	The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of September 30, 2020. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 12,735 $ 12,834 $ 751 $ 751 Due after one year through 5 years 12,500 13,308 3,524 3,545 Due after 5 years through ten years 11,014 11,569 2,395 2,395 Due after 10 years 81,093 84,819 — — Subtotal 117,342 122,530 6,670 6,691 Mortgage-backed securities 47,864 50,804 — — Total $ 165,206 $ 173,334 $ 6,670 $ 6,691
Schedule of proceeds from sale of securities available for sale and held to maturity	The following is a summary of the proceeds from sales of securities available for sale and held to maturity, as well as gross gains and losses for the nine months ended September 30, 2020 and 2019. Nine months eneded September 30, 2020 2019 Proceeds from sales of securities $ 59,697 $ 748 Gross gains on sales 3,284 23 Gross losses on sales (51) —

LOANS, ALLOWANCE FOR LOAN LOS_2

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Tables)	9 Months Ended
	Sep. 30, 2020
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY
Schedule of total loans by portfolio segment and class of loan	The following table presents total loans by portfolio segment and class of loan as of September 30, 2020 and December 31, 2019: September 30, December 31, 2020 2019 Commercial/industrial $ 547,750 $ 302,538 Commercial real estate - owner occupied 530,476 459,782 Commercial real estate - non-owner occupied 426,463 353,723 Construction and development 150,139 132,296 Residential 1‑4 family 488,925 448,605 Consumer 29,684 29,462 Other 25,552 10,440 Subtotals 2,198,989 1,736,846 ALL (16,318) (11,396) Loans, net of ALL 2,182,671 1,725,450 Deferred loan fees and costs (5,761) (503) Loans, net $ 2,176,910 $ 1,724,947
Schedule of ALL by loan type	The ALL by loan type as of September 30, 2020 and 2019 is summarized as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2020 $ 2,320 $ 4,587 $ 1,578 $ 548 $ 2,169 $ 141 $ 53 $ 11,396 Charge-offs (631) (773) — — (63) (33) (19) (1,519) Recoveries 2 873 40 — 40 — 11 966 Provision 138 995 2,276 474 1,259 86 247 5,475 ALL - September 30, 2020 1,829 5,682 3,894 1,022 3,405 194 292 16,318 ALL ending balance individually evaluated for impairment 14 483 1,098 — — — — 1,595 ALL ending balance collectively evaluated for impairment $ 1,815 $ 5,199 $ 2,796 $ 1,022 $ 3,405 $ 194 $ 292 $ 14,723 Loans outstanding - September 30, 2020 $ 547,750 $ 530,476 $ 426,463 $ 150,139 $ 488,925 $ 29,684 $ 25,552 $ 2,198,989 Loans ending balance individually evaluated for impairment 533 7,334 7,904 — — — — 15,771 Loans ending balance collectively evaluated for impairment $ 547,217 $ 523,142 $ 418,559 $ 150,139 $ 488,925 $ 29,684 $ 25,552 $ 2,183,218 Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Total ALL - January 1, 2019 $ 3,021 $ 3,750 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 12,248 Charge-offs (1,229) (4,974) (55) — (83) (75) (29) (6,445) Recoveries 3 4 60 — 126 4 6 203 Provision 507 4,360 (186) (221) (423) 70 18 4,125 ALL - September 30, 2019 2,302 3,140 1,919 504 2,092 147 27 10,131 ALL ending balance individually evaluated for impairment — — — — — — — — ALL ending balance collectively evaluated for impairment $ 2,302 $ 3,140 $ 1,919 $ 504 $ 2,092 $ 147 $ 27 $ 10,131 Loans outstanding - September 30, 2019 $ 310,536 $ 467,030 $ 337,558 $ 118,055 $ 443,906 $ 31,665 $ 5,985 $ 1,714,735 Loans ending balance individually evaluated for impairment — — — — — — — — Loans ending balance collectively evaluated for impairment $ 310,536 $ 467,030 $ 337,558 $ 118,055 $ 443,906 $ 31,665 $ 5,985 $ 1,714,735
Schedule of past due loans	The Company’s past due loans as of September 30, 2020 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 4 $ — $ 599 $ 603 Commercial real estate - owner occupied 121 — 8,690 8,811 Commercial real estate - non-owner occupied — — 7,427 7,427 Construction and development 29 — — 29 Residential 1‑4 family 318 72 1,092 1,482 Consumer 34 3 — 37 Other — — — — $ 506 $ 75 $ 17,808 $ 18,389 The Company’s past due loans as of December 31, 2019 is summarized as follows: 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 235 $ — $ 1,923 $ 2,158 Commercial real estate - owner occupied 1,124 — 2,513 3,637 Commercial real estate - non-owner occupied — — 75 75 Construction and development 768 11 — 779 Residential 1‑4 family 805 307 550 1,662 Consumer 70 36 32 138 Other — — — — $ 3,002 $ 354 $ 5,093 $ 8,449
Schedule of loans by risk rating	The breakdown of loans by risk rating as of September 30, 2020 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 543,008 $ 668 $ 4,074 $ — $ 547,750 Commercial real estate - owner occupied 496,026 4,467 29,983 — 530,476 Commercial real estate - non-owner occupied 415,970 — 10,493 — 426,463 Construction and development 149,999 — 140 — 150,139 Residential 1‑4 family 486,462 604 1,859 — 488,925 Consumer 29,684 — — — 29,684 Other 25,552 — — — 25,552 $ 2,146,701 $ 5,739 $ 46,549 $ — $ 2,198,989 The breakdown of loans by risk rating as of December 31, 2019 is as follows: Pass (1-5) 6 7 8 Total Commercial/industrial $ 290,180 $ 5,329 $ 7,029 $ — $ 302,538 Commercial real estate - owner occupied 422,336 5,603 31,843 — 459,782 Commercial real estate - non-owner occupied 344,278 8,774 671 — 353,723 Construction and development 132,266 — 30 — 132,296 Residential 1‑4 family 447,630 256 719 — 448,605 Consumer 29,430 — 32 — 29,462 Other 10,440 — — — 10,440 $ 1,676,560 $ 19,962 $ 40,324 $ — $ 1,736,846
Schedule of impaired loans individually	A summary of impaired loans individually evaluated as of September 30, 2020 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 595 $ 3,625 $ 7,892 $ — $ — $ — $ — $ — $ 12,112 Unpaid principal balance 595 3,625 7,892 — — — — — 12,112 Related allowance 14 483 1,098 — — — — — 1,595 With no related allowance recorded: Recorded investment $ — $ 4,045 $ — $ — $ — $ — $ — $ — $ 4,045 Unpaid principal balance — 4,052 — — — — — — 4,052 Related allowance — — — — — — — — — Total: Recorded investment $ 595 $ 7,670 $ 7,892 $ — $ — $ — $ — $ — $ 16,157 Unpaid principal balance 595 7,677 7,892 — — — — — 16,164 Related allowance 14 483 1,098 — — — — — 1,595 Average recorded investment $ 1,237 $ 5,784 $ $ — $ — $ — $ — $ — $ 10,967 A summary of impaired loans individually evaluated as of December 31, 2019 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner and Residential Industrial Occupied Occupied Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ 1,878 $ 960 $ — $ — $ — $ — $ — $ 2,838 Unpaid principal balance 1,878 960 — — — — — 2,838 Related allowance 760 80 — — — — — 840 With no related allowance recorded: Recorded investment $ — $ 2,938 $ — $ — $ — $ — $ — $ 2,938 Unpaid principal balance — 2,938 — — — — — 2,938 Related allowance — — — — — — — — Total: Recorded investment $ 1,878 $ 3,898 $ — $ — $ — $ — $ — $ 5,776 Unpaid principal balance 1,878 3,898 — — — — — 5,776 Related allowance 760 80 — — — — — 840 Average recorded investment $ 3,773 $ 5,847 $ — $ — $ 351 $ — $ — $ 9,971
Schedule of Change in the accretable and non accretable Components of Discounts on Loans	The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the nine months ended September 30, 2020, and year ended December 31, 2019: September 30, 2020 December 31, 2019 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 222 $ 220 $ 318 $ 745 Acquired balance, net 1,064 727 44 333 Reclassifications between accretable and non-accretable 696 (696) 858 (858) Accretion to loan interest income (722) — (998) — Balance at end of period $ 1,260 $ 251 $ 222 $ 220
Schedule of troubled debt restructurings	The following table presents the TDRs during the nine months ended September 30, 2020. There were no TDRs during the same period in 2019. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commerical Real Estate 1 $ 115 $ 115
Financial Asset Acquired with Credit Deterioration [Member]
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY
Schedule of impaired loans individually	The following table presents loans acquired with deteriorated credit quality as of September 30, 2020 and December 31, 2019. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. September 30, 2020 December 31, 2019 Recorded Unpaid Principal Recorded Unpaid Principal Investment Balance Investment Balance Commercial & Industrial $ 1,191 $ 1,365 $ 191 $ 212 Commercial real estate - owner occupied 3,986 4,847 518 785 Commercial real estate - non-owner occupied 1,241 1,405 — — Construction and development 95 106 213 237 Residential 1‑4 family 881 1,182 901 1,031 Consumer — — — — Other — — — — $ 7,394 $ 8,905 $ 1,823 $ 2,265

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
MORTGAGE SERVICING RIGHTS (Tables)	Sep. 30, 2020
MORTGAGE SERVICING RIGHTS
Schedule of analysis of activity in the MSR asset	Following is an analysis of activity in the MSR asset: Nine Months Ended Year Ended September 30, 2020 December 31, 2019 Fair value at beginning of year $ 4,287 $ 3,085 MSR asset acquired 384 1,859 Servicing asset additions 980 740 Loan payments and payoffs (1,132) (821) Changes in valuation inputs and assumptions used in the valuation model (393) (576) Amount recognized through earnings (545) (657) Fair value at end of period $ 4,126 $ 4,287 Unpaid principal balance of loans serviced for others $ 628,204 $ 554,374 MSR as a percent of loans serviced for others 0.66 0.77

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
NOTES PAYABLE (Tables)	Sep. 30, 2020
NOTES PAYABLE
Schedule of advance rate and maturities	September 30, December 31, Maturity Rate 2020 2019 (dollars in thousands) Fixed rate, fixed term 01/27/2020 1.42 % $ — $ 1,000 Fixed rate, fixed term 11/02/2020 1.28 % 400 400 Fixed rate, fixed term 11/02/2020 2.83 % 500 — Fixed rate, fixed term 12/08/2020 2.76 % 500 — Fixed rate, fixed term 12/28/2020 2.07 % 250 — Fixed rate, fixed term 01/22/2021 1.67 % 2,000 2,000 Fixed rate, fixed term 01/25/2021 2.37 % 5,000 5,000 Fixed rate, fixed term 01/27/2021 1.60 % 1,000 1,000 Fixed rate, fixed term 03/29/2021 0.00 % 2,377 — Fixed rate, fixed term 05/03/2021 2.87 % 500 — Fixed rate, fixed term 05/03/2021 0.00 % 4,000 — Fixed rate, fixed term 05/03/2021 0.00 % 4,000 — Fixed rate, fixed term 06/28/2021 2.00 % 250 — Fixed rate, fixed term 11/03/2021 1.46 % 400 400 Fixed rate, fixed term 12/08/2021 2.87 % 500 — Fixed rate, fixed term 12/27/2021 1.99 % 250 — Fixed rate, fixed term 01/24/2022 2.51 % 250 — Fixed rate, fixed term 05/02/2022 2.98 % 500 — Fixed rate, fixed term 06/08/2022 2.92 % 500 — Fixed rate, fixed term 08/08/2022 1.76 % — 10,000 Fixed rate, fixed term 11/21/2022 3.02 % 600 — Fixed rate, fixed term 08/08/2023 1.74 % — 10,000 Fixed rate, fixed term 11/21/2023 3.06 % 600 — Fixed rate, fixed term 08/08/2024 1.75 % — 10,000 Fixed rate, fixed term 01/04/2027 0.00 % 103 — Fixed rate, fixed term 04/22/2030 0.00 % 508 — 24,988 39,800 Adjustment due to purchase accounting 157 (10) $ 25,145 $ 39,790
Schedule of Future maturities of borrowings	September 30, December 31, 2020 2019 1 year or less $ 20,777 $ 1,400 1 to 2 years 2,400 8,400 2 to 3 years 600 10,000 3 to 4 years 600 10,000 4 to 5 years — 10,000 Over 5 years 611 — $ 24,988 $ 39,800

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
REGULATORY MATTERS (Tables)	Sep. 30, 2020
REGULATORY MATTERS
Schedule of Actual and required capital amounts and ratios	Actual and required capital amounts and ratios are presented below at period-end: To Be Well For Capital Minimum Capital Capitalized Under Adequacy Adeqaucy with Prompt Corrective Actual Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total capital (to risk-weighted assets): Corporation $ 255,984 11.89 % NA NA NA NA NA NA Bank $ 252,284 11.72 % $ 172,179 8.00 % $ 225,985 10.50 % $ 215,224 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 219,154 10.18 % NA NA NA NA NA NA Bank $ 235,966 10.96 % $ 129,135 6.00 % $ 182,941 8.50 % $ 172,179 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 219,154 10.18 % NA NA NA NA NA NA Bank $ 235,966 10.96 % $ 96,851 4.50 % $ 150,657 7.00 % $ 139,896 6.50 % Tier 1 capital (to average assets): Corporation $ 219,154 8.54 % NA NA NA NA NA NA Bank $ 235,966 9.25 % $ 102,019 4.00 % $ 102,019 4.00 % $ 127,524 5.00 % December 31, 2019 Total capital (to risk-weighted assets): Corporation $ 208,900 10.35 % NA NA NA NA NA NA Bank $ 215,347 10.69 % $ 161,163 8.00 % $ 211,527 10.50 % $ 201,454 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 120,872 6.00 % $ 171,236 8.50 % $ 161,163 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 90,654 4.50 % $ 141,018 7.00 % $ 130,945 6.50 % Tier 1 capital (to average assets): Corporation $ 178,882 8.46 % NA NA NA NA NA NA Bank $ 203,951 9.67 % $ 84,390 4.00 % 84,390 4.00 % $ 105,487 5.00 %

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
Schedule of Commitments and contingencies outstanding	The following commitments were outstanding: Notional Amount September 30, 2020 December 31, 2019 Commitments to extend credit: Fixed $ 68,438 $ 49,741 Variable 380,615 333,468 Credit card arrangements 9,973 11,148 Letters of credit 7,794 17,121

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Sep. 30, 2020
FAIR VALUE MEASUREMENTS
Schedule of fair value of assets measured at fair value on a recurring basis	Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 Assets Securities available for sale Obligations of U.S.Government sponsored agencies $ 18,819 $ — $ 18,819 $ — Obligations of states and political subdivisions 73,517 — 73,517 — Mortgage-backed securities 50,804 — 50,804 — Corporate notes 27,832 — 27,832 — Certificates of deposit 2,362 — 2,362 — Mortgage servicing rights 4,126 — 4,126 — December 31, 2019 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 12,060 $ — $ 12,060 $ — Obligations of states and political subdivisions 54,771 — 54,771 — Mortgage-backed securities 51,720 — 51,720 — Corporate notes 62,955 — 62,955 — Mortgage servicing rights 4,287 — 4,287 —
Schedule of fair value of assets measured on a recurring basis using significant unobservable inputs	There were no assets measured on a recurring basis using significant unobservable inputs (Level 3). September 30, 2020 December 31, 2019 Total securities at beginning of period $ — $ 400 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (400) Transfer in and/or out of level 3 — — Total securities at end of period $ — $ —
Schedule of fair value of assets measured on a non-recurring basis	Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) September 30, 2020 OREO $ 3,264 $ — $ — $ 3,264 Impaired Loans, net of impairment reserve 24,984 — — 24,984 $ 28,248 $ — $ — $ 28,248 December 31, 2019 OREO $ 6,888 $ — $ — $ 6,888 Impaired Loans, net of impairment reserve 6,847 — — 6,847 $ 13,735 $ — $ — $ 13,735
Schedule of fair value measurement on inputs and valuation techniques	Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of September 30, 2020 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 100 % 37.1 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 5.7 % As of December 31, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 61 % 33.5 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100 % 6.1 %
Schedule of carrying value and estimated fair value of financial instruments	The carrying value and estimated fair value of financial instruments at September 30, 2020 and December 31, 2019 follows: Fair Value Carrying September 30, 2020 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 80,752 $ 80,752 $ — $ — $ 80,752 Securities held to maturity 6,670 — 6,691 — 6,691 Securities available for sale 173,334 — 173,334 — 173,334 Loans held for sale 659 — — 659 659 Loans, net 2,176,910 — — 2,161,367 2,161,367 Other investments, at cost 8,896 — — 8,896 8,896 Mortgage servicing rights 4,126 — 4,126 — 4,126 Cash surrender value of life insurance 31,197 31,197 — — 31,197 Deposits $ 2,271,040 $ — $ — $ 2,255,945 $ 2,255,945 Securities sold under repurchase agreements 23,894 — 23,894 — 23,894 Notes payable 25,145 — 25,145 — 25,145 Subordinated notes 20,512 — 20,512 — 20,512 Fair Value Carrying December 31, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 86,452 $ 86,452 $ — $ — $ 86,452 Securities held to maturity 43,734 — 44,803 — 44,803 Securities available for sale 181,506 — 181,506 — 181,506 Loans held for sale 587 — — 587 587 Loans, net 1,724,947 — — 1,723,542 1,723,542 Other investments, at cost 4,933 — — 4,933 4,933 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 24,945 24,945 — — 24,945 Financial liabilities: Deposits $ 1,843,311 $ — $ — $ 1,783,638 $ 1,783,638 Securities sold under repurchase agreements 45,865 — 45,865 — 45,865 Notes payable 49,790 — 49,790 — 49,790 Subordinated notes 18,622 — 18,622 — 18,622

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
STOCK BASED COMPENSATION (Tables)	Sep. 30, 2020
STOCK BASED COMPENSATION
Schedule of share-based compensation, restricted stock and restricted stock units activity	For the nine months ended September 30, For the nine months ended September 30, 2020 2019 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 50,676 $ 43.03 51,776 $ 34.27 Granted 27,466 60.76 17,015 56.62 Vested (18,623) 37.28 (17,212) 30.54 Forfeited or cancelled (2,344) 51.27 (903) 41.01 Outstanding at end of year 57,175 $ 53.08 50,676 $ 43.03

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Sep. 30, 2020
LEASES
Schedule of lease cost and other information related to leases	Nine-month period ended September 30, 2020 September 30, 2019 Amortization of ROU Assets - Operating Leases $ 31 $ 35 Interest on Lease Liabilities - Operating Leases 69 63 Operating Lease Cost (Cost resulting from lease payments) 100 98 ROU Assets - Operating Leases at beginning of period 1,699 — New ROU Assets - Operating Leases — 1,744 ROU Assets - Operating Leases at September 30, 1,668 1,708 Weighted Average Lease Term (Years) - Operating Leases 31.51 31.60 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 %
Schedule of maturity analysis of operating lease liabilities	A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of September 30, 2020 is as follows: September 30, 2020 Operating lease payments due: Within one year $ 141 After one but within two years 124 After two but within three years 86 After three but within four years 86 After four years but within five years 86 After five years 3,346 Total undiscounted cash flows 3,869 Discount on cash flows (2,201) Total operating lease liabilities $ 1,668

ACQUISITIONS - Fair value of as

ACQUISITIONS - Fair value of assets and liabilities (Details) - USD ($)	May 15, 2020	Sep. 30, 2020	Dec. 31, 2019
Cash, cash equivelants and securities	$ 78,958,000
Other investments	533,000
Loans	118,411,000
Premises and equipment, net	1,532,000
Core deposit intangible	1,697,000
Other assets	8,787,000
Total assets acquired	209,918,000
Deposits	171,104,000
Subordinated debt	6,500,000	$ 12,000	$ 122,000
Other borrowings	13,148,000
Other liabilities	949,000
Total liabilities assumed	191,701,000
Excess of assets acquired over liabilities assumed	18,217,000
Less: purchase price	29,812,000
Goodwill	11,595,000	$ 55,022,000	$ 43,456,000
Refinement to fair value estimates during 2018	(29,000)
Goodwill (after refinement)	11,566,000
Timberwood [Member]
Cash, cash equivelants and securities	79,614,000
Other investments	533,000
Loans	117,343,000
Premises and equipment, net	2,538,000
Other assets	11,392,000
Total assets acquired	211,420,000
Deposits	170,362,000
Subordinated debt	6,500,000
Other borrowings	12,938,000
Other liabilities	1,923,000
Total liabilities assumed	191,723,000
Excess of assets acquired over liabilities assumed	19,697,000
Fair Value Adjustments [Member]
Cash, cash equivelants and securities	(656,000)
Loans	1,068,000
Premises and equipment, net	(1,006,000)
Core deposit intangible	1,697,000
Other assets	(2,605,000)
Total assets acquired	(1,502,000)
Deposits	742,000
Other borrowings	210,000
Other liabilities	(974,000)
Total liabilities assumed	(22,000)
Excess of assets acquired over liabilities assumed	$ (1,480,000)

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($)	May 15, 2020	Jul. 12, 2019	Jan. 22, 2019
Business Combination, Consideration Transferred	$ 29,812,000
Payments to Acquire Businesses, Gross	$ 400,000	$ 14,300,000
Business Combination Consideration Transferred Number of Shares Issuable	5.1445	0.34879
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 17.3001
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	575,641	534,659
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned	$ 29,400,000	$ 35,300,000
Business Acquisition, Share Price		$ 66.03
Partnership Community Bancshares [Member]
Business Combination, Contingent Consideration, Liability			$ 49,600,000
Tomah Bancshares [Member]
Business Combination, Contingent Consideration, Liability	$ 29,800,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic
Net income available to common shareholders	$ 10,954	$ 8,296	$ 7,266	$ 6,659	$ 5,989	$ 6,587	$ 26,516	$ 19,235
Less: Earnings allocated to participating securities	(82)			(48)			(202)	(148)
Net income allocated to common shareholders	$ 10,872			$ 6,611			$ 26,314	$ 19,087
Weighted average common shares outstanding including participating securities	7,731,670			7,036,807			7,424,257	6,731,089
Less: Participating securities (1)	(58,098)			(51,040)			(56,464)	(51,608)
Average shares	7,673,572			6,985,767			7,367,793	6,679,481
Basic earnings per common shares	$ 1.42			$ 0.95			$ 3.57	$ 2.86
Diluted
Net income available to common shareholders	$ 10,954	$ 8,296	$ 7,266	$ 6,659	$ 5,989	$ 6,587	$ 26,516	$ 19,235
Weighted average common shares outstanding for basic earnings per common share	7,673,572			6,985,767			7,367,793	6,679,481
Add: Dilutive effects of stock based compensation awards	17,754			121,988			44,880	99,564
Average shares and dilutive potential common shares	7,691,326			7,107,755			7,412,673	6,779,045
Diluted earnings per common share	$ 1.42			$ 0.93			$ 3.56	$ 2.83

SECURITIES - Securities availab

SECURITIES - Securities available for sale (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	$ 165,206	$ 178,376
Available for sale securities, Gross Unrealized Gains	8,188	3,357
Available for sale securities, Gross Unrealized Losses	(60)	(227)
Available for sale securities, Estimated Fair Value	173,334	181,506
Corporate notes
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	27,325	62,794
Available for sale securities, Gross Unrealized Gains	507	172
Available for sale securities, Gross Unrealized Losses		(11)
Available for sale securities, Estimated Fair Value	27,832	62,955
Certificates of deposit
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	2,320
Available for sale securities, Gross Unrealized Gains	42
Available for sale securities, Estimated Fair Value	2,362
Obligations of U.S. Government sponsored agencies
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	18,283	12,218
Available for sale securities, Gross Unrealized Gains	595
Available for sale securities, Gross Unrealized Losses	(59)	(158)
Available for sale securities, Estimated Fair Value	18,819	12,060
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	69,414	52,594
Available for sale securities, Gross Unrealized Gains	4,104	2,197
Available for sale securities, Gross Unrealized Losses	(1)	(20)
Available for sale securities, Estimated Fair Value	73,517	54,771
Mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	47,864	50,770
Available for sale securities, Gross Unrealized Gains	2,940	988
Available for sale securities, Gross Unrealized Losses		(38)
Available for sale securities, Estimated Fair Value	$ 50,804	$ 51,720

SECURITIES - Securities held to

SECURITIES - Securities held to maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost	$ 6,670	$ 43,734
Held to maturity securities, Gross Unrealized Gains		1,091
Held to maturity securities, Gross Unrealized Losses		(22)
Held to Maturity Total, Estimated Fair Value	6,691	44,803
U.S. Treasury securities [Member]
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost		33,527
Held to maturity securities, Gross Unrealized Gains		1,076
Held to maturity securities, Gross Unrealized Losses		(22)
Held to Maturity Total, Estimated Fair Value		34,581
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost	6,670	10,207
Held to maturity securities, Gross Unrealized Gains	21	15
Held to maturity securities, Gross Unrealized Losses		0
Held to Maturity Total, Estimated Fair Value	$ 6,691	$ 10,222

SECURITIES - Fair value and gro

SECURITIES - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 0	$ 3,186
Available for Sale, Greater Than 12 Months Unrealized Losses	0	(13)
Available for Sale, Less Than 12 Months Fair Value	5,993	25,658
Available for Sale, Total Fair Value	5,993	28,844
Available for Sale, Less Than 12 Months Unrealized Losses	(60)	(214)
Available for Sale, Total Unrealized Losses	(60)	(227)
Corporate notes
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		0
Available for Sale, Greater Than 12 Months Unrealized Losses		0
Available for Sale, Less Than 12 Months Fair Value		3,925
Available for Sale, Total Fair Value		3,925
Available for Sale, Less Than 12 Months Unrealized Losses		(11)
Available for Sale, Total Unrealized Losses		(11)
Obligations of U.S. Government sponsored agencies
Marketable Securities [Line Items]
Available for Sale, Greater Than 12 Months Unrealized Losses	0	0
Available for Sale, Less Than 12 Months Fair Value	5,639	12,059
Available for Sale, Greater Than 12 Months Fair Value	0	0
Available for Sale, Total Fair Value	5,639	12,059
Available for Sale, Less Than 12 Months Unrealized Losses	(59)	(158)
Available for Sale, Total Unrealized Losses	(59)	(158)
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	999
Available for Sale, Greater Than 12 Months Unrealized Losses	0	(1)
Available for Sale, Less Than 12 Months Fair Value	354	5,636
Available for Sale, Total Fair Value	354	6,635
Available for Sale, Less Than 12 Months Unrealized Losses	(1)	(19)
Available for Sale, Total Unrealized Losses	$ (1)	(20)
Mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		2,187
Available for Sale, Greater Than 12 Months Unrealized Losses		(12)
Available for Sale, Less Than 12 Months Fair Value		4,038
Available for Sale, Total Fair Value		6,225
Available for Sale, Less Than 12 Months Unrealized Losses		(26)
Available for Sale, Total Unrealized Losses		(38)
U.S. Treasury securities [Member]
Marketable Securities [Line Items]
Held to Maturity, Less Than 12 Months Fair Value		2,958
Held to Maturity, Greater Than 12 Months Fair Value		0
Held to Maturity, Total Fair Value		2,958
Held to Maturity, Less Than 12 Months Unrealized Losses		(22)
Held to Maturity, Greater Than 12 Months Unrealized Losses		0
Held to Maturity, Total Unrealized Losses		$ (22)

SECURITIES - Summary of amortiz

SECURITIES - Summary of amortized cost and estimated fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
SECURITIES
Available for Sale Due in one year or less, Amortized Cost	$ 12,735
Available for Sale Due after one year through five years, Amortized Cost	12,500
Available for Sale Due after five years through ten years, Amortized Cost	11,014
Available for Sale Due after ten years, Amortized Cost	81,093
Available for Sale Subtotal, Amortized Cost	117,342
Available for Sale Mortgage-backed securities, Amortized Cost	47,864
Available for sale securities, Amortized Cost	165,206	$ 178,376
Available for Sale Due in one year or less, Estimated Fair Value	12,834
Available for Sale Due after one year through five years, Estimated Fair Value	13,308
Available for Sale Due after five years through ten years, Estimated Fair Value	11,569
Available for Sale Due after ten years, Estimated Fair Value	84,819
Available for Sale Subtotal, Estimated Fair Value	122,530
Available for Sale Mortgage-backed securities, Estimated Fair Value	50,804
Available for sale securities, Estimated Fair Value	173,334	181,506
Held to Maturity Due in one year or less, Amortized Cost	751
Held to Maturity Due after one year through five years, Amortized Cost	3,524
Held to Maturity Due after five years through ten years, Amortized Cost	2,395
Held to Maturity Subtotal, Amortized Cost	6,670
Held to maturity securities, Amortized Cost	6,670	43,734
Held to Maturity Due in one year or less, Estimated Fair Value	751
Held to Maturity Due after one year through five years, Estimated Fair Value	3,545
Held to Maturity Due after five years through ten years, Estimated Fair Value	2,395
Held to Maturity Subtotal, Estimated Fair Value	6,691
Held to Maturity Total, Estimated Fair Value	$ 6,691	$ 44,803

SECURITIES - Summary of proceed

SECURITIES - Summary of proceeds from sales securities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
SECURITIES
Proceeds from sales of securities	$ 59,697	$ 748
Gross gains on sales	3,284	$ 23
Gross losses on sales	$ (51)

LOANS, ALLOWANCE FOR LOAN LOS_3

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable, Gross	$ 2,198,989	$ 1,736,846	$ 1,714,735
ALL	(16,318)	(11,396)	(10,131)	$ (12,248)
Loans, net of ALL	2,182,671	1,725,450
Deferred loan fees and costs	(5,761)	(503)
Loans, net	2,176,910	1,724,947
Other
Loans and Leases Receivable, Gross	25,552	10,440	5,985
ALL	(292)	(53)	(27)	(32)
Construction and Development
Loans and Leases Receivable, Gross	150,139	132,296	118,055
ALL	(1,022)	(548)	(504)	(725)
Commercial/Industrial
Loans and Leases Receivable, Gross	547,750	302,538	310,536
ALL	(1,829)	(2,320)	(2,302)	(3,021)
Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	530,476	459,782	467,030
ALL	(5,682)	(4,587)	(3,140)	(3,750)
Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	426,463	353,723	337,558
ALL	(3,894)	(1,578)	(1,919)	(2,100)
Residential 14 Family
Loans and Leases Receivable, Gross	488,925	448,605	443,906
ALL	(3,405)	(2,169)	(2,092)	(2,472)
Consumer
Loans and Leases Receivable, Gross	29,684	29,462	31,665
ALL	$ (194)	$ (141)	$ (147)	$ (148)

LOANS, ALLOWANCE FOR LOAN LOS_4

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - ALL by loan type (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
ALL - Beginning Balance	$ 11,396	$ 12,248
Charge-offs	(1,519)	(6,445)
Recoveries	966	203
Provision	5,475	4,125
ALL - Ending Balance	16,318	10,131
ALL ending balance individually evaluated for impairment	1,595	0
ALL ending balance collectively evaluated for impairment	14,723	10,131
Loans outstanding - Ending Balance	2,198,989	1,714,735	$ 1,736,846
Loans ending balance individually evaluated for impairment	15,771	0
Loans ending balance collectively evaluated for impairment	2,183,218	1,714,735
Other
ALL - Beginning Balance	53	32
Charge-offs	(19)	(29)
Recoveries	11	6
Provision	247	18
ALL - Ending Balance	292	27
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	292	27
Loans outstanding - Ending Balance	25,552	5,985	10,440
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	25,552	5,985
Construction and Development
ALL - Beginning Balance	548	725
Charge-offs	0	0
Recoveries	0	0
Provision	474	(221)
ALL - Ending Balance	1,022	504
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	1,022	504
Loans outstanding - Ending Balance	150,139	118,055	132,296
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	150,139	118,055
Commercial/Industrial
ALL - Beginning Balance	2,320	3,021
Charge-offs	(631)	(1,229)
Recoveries	2	3
Provision	138	507
ALL - Ending Balance	1,829	2,302
ALL ending balance individually evaluated for impairment	14	0
ALL ending balance collectively evaluated for impairment	1,815	2,302
Loans outstanding - Ending Balance	547,750	310,536	302,538
Loans ending balance individually evaluated for impairment	533	0
Loans ending balance collectively evaluated for impairment	547,217	310,536
Commercial Real Estate-Owner Occupied
ALL - Beginning Balance	4,587	3,750
Charge-offs	(773)	(4,974)
Recoveries	873	4
Provision	995	4,360
ALL - Ending Balance	5,682	3,140
ALL ending balance individually evaluated for impairment	483	0
ALL ending balance collectively evaluated for impairment	5,199	3,140
Loans outstanding - Ending Balance	530,476	467,030	459,782
Loans ending balance individually evaluated for impairment	7,334	0
Loans ending balance collectively evaluated for impairment	523,142	467,030
Commercial Real Estate-Non-Owner Occupied
ALL - Beginning Balance	1,578	2,100
Charge-offs	0	(55)
Recoveries	40	60
Provision	2,276	(186)
ALL - Ending Balance	3,894	1,919
ALL ending balance individually evaluated for impairment	1,098	0
ALL ending balance collectively evaluated for impairment	2,796	1,919
Loans outstanding - Ending Balance	426,463	337,558	353,723
Loans ending balance individually evaluated for impairment	7,904	0
Loans ending balance collectively evaluated for impairment	418,559	337,558
Residential 14 Family
ALL - Beginning Balance	2,169	2,472
Charge-offs	(63)	(83)
Recoveries	40	126
Provision	1,259	(423)
ALL - Ending Balance	3,405	2,092
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	3,405	2,092
Loans outstanding - Ending Balance	488,925	443,906	448,605
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	488,925	443,906
Consumer
ALL - Beginning Balance	141	148
Charge-offs	(33)	(75)
Recoveries	0	4
Provision	86	70
ALL - Ending Balance	194	147
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	194	147
Loans outstanding - Ending Balance	29,684	31,665	$ 29,462
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	$ 29,684	$ 31,665

LOANS, ALLOWANCE FOR LOAN LOS_5

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Past due loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 17,808	$ 5,093
Financing Receivable, Recorded Investment, Nonaccrual Status	18,389	8,449
Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Construction and Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	29	779
Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	599	1,923
Financing Receivable, Recorded Investment, Nonaccrual Status	603	2,158
Commercial Real Estate-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	8,690	2,513
Financing Receivable, Recorded Investment, Nonaccrual Status	8,811	3,637
Commercial Real Estate-Non-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	7,427	75
Financing Receivable, Recorded Investment, Nonaccrual Status	7,427	75
Residential 14 Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,092	550
Financing Receivable, Recorded Investment, Nonaccrual Status	1,482	1,662
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	32
Financing Receivable, Recorded Investment, Nonaccrual Status	37	138
30-89 Days Past Due Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	506	3,002
30-89 Days Past Due Accruing \| Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
30-89 Days Past Due Accruing \| Construction and Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	29	768
30-89 Days Past Due Accruing \| Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	4	235
30-89 Days Past Due Accruing \| Commercial Real Estate-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	121	1,124
30-89 Days Past Due Accruing \| Commercial Real Estate-Non-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
30-89 Days Past Due Accruing \| Residential 14 Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	318	805
30-89 Days Past Due Accruing \| Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	34	70
90 Days Past Due Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	75	354
90 Days Past Due Accruing \| Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
90 Days Past Due Accruing \| Construction and Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	11
90 Days Past Due Accruing \| Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
90 Days Past Due Accruing \| Commercial Real Estate-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
90 Days Past Due Accruing \| Commercial Real Estate-Non-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
90 Days Past Due Accruing \| Residential 14 Family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	72	307
90 Days Past Due Accruing \| Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 3	$ 36

LOANS, ALLOWANCE FOR LOAN LOS_6

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY- Breakdown of loans by risk rating (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Loans and Leases Receivable, Gross	$ 2,198,989	$ 1,736,846	$ 1,714,735
Other
Loans and Leases Receivable, Gross	25,552	10,440	5,985
Construction and Development
Loans and Leases Receivable, Gross	150,139	132,296	118,055
Commercial/Industrial
Loans and Leases Receivable, Gross	547,750	302,538	310,536
Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	530,476	459,782	467,030
Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	426,463	353,723	337,558
Residential 14 Family
Loans and Leases Receivable, Gross	488,925	448,605	443,906
Consumer
Loans and Leases Receivable, Gross	29,684	29,462	$ 31,665
Pass (1-5)
Loans and Leases Receivable, Gross	2,146,701	1,676,560
Pass (1-5) \| Other
Loans and Leases Receivable, Gross	25,552	10,440
Pass (1-5) \| Construction and Development
Loans and Leases Receivable, Gross	149,999	132,266
Pass (1-5) \| Commercial/Industrial
Loans and Leases Receivable, Gross	543,008	290,180
Pass (1-5) \| Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	496,026	422,336
Pass (1-5) \| Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	415,970	344,278
Pass (1-5) \| Residential 14 Family
Loans and Leases Receivable, Gross	486,462	447,630
Pass (1-5) \| Consumer
Loans and Leases Receivable, Gross	29,684	29,430
Pass 6
Loans and Leases Receivable, Gross	5,739	19,962
Pass 6 \| Other
Loans and Leases Receivable, Gross	0	0
Pass 6 \| Construction and Development
Loans and Leases Receivable, Gross	0	0
Pass 6 \| Commercial/Industrial
Loans and Leases Receivable, Gross	668	5,329
Pass 6 \| Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	4,467	5,603
Pass 6 \| Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	0	8,774
Pass 6 \| Residential 14 Family
Loans and Leases Receivable, Gross	604	256
Pass 6 \| Consumer
Loans and Leases Receivable, Gross	0	0
Pass 7
Loans and Leases Receivable, Gross	46,549	40,324
Pass 7 \| Other
Loans and Leases Receivable, Gross	0	0
Pass 7 \| Construction and Development
Loans and Leases Receivable, Gross	140	30
Pass 7 \| Commercial/Industrial
Loans and Leases Receivable, Gross	4,074	7,029
Pass 7 \| Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	29,983	31,843
Pass 7 \| Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	10,493	671
Pass 7 \| Residential 14 Family
Loans and Leases Receivable, Gross	1,859	719
Pass 7 \| Consumer
Loans and Leases Receivable, Gross	0	32
Pass 8
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Other
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Construction and Development
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Commercial/Industrial
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Residential 14 Family
Loans and Leases Receivable, Gross	0	0
Pass 8 \| Consumer
Loans and Leases Receivable, Gross	$ 0	$ 0

LOANS, ALLOWANCE FOR LOAN LOS_7

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY -Summary of impaired loans individually (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
With an allowance recorded:
Recorded investment	$ 12,112	$ 2,838
Unpaid principal balance	12,112	2,838
Related allowance	1,595	840
With no related allowance recorded:
Recorded investment	4,045	2,938
Unpaid principal balance	4,052	2,938
Related allowance	0	0
Total:
Recorded investment	16,157	5,776
Unpaid principal balance	16,164	5,776
Related allowance	1,595	840
Average recorded investment	10,967	9,971
Other
With an allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Average recorded investment	0	0
Construction and Development
With an allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Average recorded investment	0	0
Commercial/Industrial
With an allowance recorded:
Recorded investment	595	1,878
Unpaid principal balance	595	1,878
Related allowance	14	760
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	595	1,878
Unpaid principal balance	595	1,878
Related allowance	14	760
Average recorded investment	1,237	3,773
Commercial Real Estate-Owner Occupied
With an allowance recorded:
Recorded investment	3,625	960
Unpaid principal balance	3,625	960
Related allowance	483	80
With no related allowance recorded:
Recorded investment	4,045	2,938
Unpaid principal balance	4,052	2,938
Related allowance	0	0
Total:
Recorded investment	7,670	3,898
Unpaid principal balance	7,677	3,898
Related allowance	483	80
Average recorded investment	5,784	5,847
Commercial Real Estate-Non-Owner Occupied
With an allowance recorded:
Recorded investment	7,892	0
Unpaid principal balance	7,892	0
Related allowance	1,098	0
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	7,892	0
Unpaid principal balance	7,892	0
Related allowance	1,098	0
Average recorded investment		0
Residential 14 Family
With an allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Average recorded investment	0	351
Consumer
With an allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Average recorded investment	0	$ 0
Unallocated
With an allowance recorded:
Recorded investment	0
Unpaid principal balance	0
Related allowance	0
With no related allowance recorded:
Recorded investment	0
Unpaid principal balance	0
Related allowance	0
Total:
Recorded investment	0
Unpaid principal balance	0
Related allowance	0
Average recorded investment	$ 0

LOANS, ALLOWANCE FOR LOAN LOS_8

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Credit Deterioration (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Impaired Financing Receivable, Recorded Investment	$ 16,157	$ 5,776
Impaired Financing Receivable, Unpaid Principal Balance	16,164	5,776
Other
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Construction and Development
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Commercial/Industrial
Impaired Financing Receivable, Recorded Investment	595	1,878
Impaired Financing Receivable, Unpaid Principal Balance	595	1,878
Commercial Real Estate-Owner Occupied
Impaired Financing Receivable, Recorded Investment	7,670	3,898
Impaired Financing Receivable, Unpaid Principal Balance	7,677	3,898
Commercial Real Estate-Non-Owner Occupied
Impaired Financing Receivable, Recorded Investment	7,892	0
Impaired Financing Receivable, Unpaid Principal Balance	7,892	0
Residential 14 Family
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Consumer
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Financial Asset Acquired with Credit Deterioration [Member]
Impaired Financing Receivable, Recorded Investment	7,394	1,823
Impaired Financing Receivable, Unpaid Principal Balance	8,905	2,265
Financial Asset Acquired with Credit Deterioration [Member] \| Other
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Financial Asset Acquired with Credit Deterioration [Member] \| Construction and Development
Impaired Financing Receivable, Recorded Investment	95	213
Impaired Financing Receivable, Unpaid Principal Balance	106	237
Financial Asset Acquired with Credit Deterioration [Member] \| Commercial/Industrial
Impaired Financing Receivable, Recorded Investment	1,191	191
Impaired Financing Receivable, Unpaid Principal Balance	1,365	212
Financial Asset Acquired with Credit Deterioration [Member] \| Commercial Real Estate-Owner Occupied
Impaired Financing Receivable, Recorded Investment	3,986	518
Impaired Financing Receivable, Unpaid Principal Balance	4,847	785
Financial Asset Acquired with Credit Deterioration [Member] \| Commercial Real Estate-Non-Owner Occupied
Impaired Financing Receivable, Recorded Investment	1,241	0
Impaired Financing Receivable, Unpaid Principal Balance	1,405	0
Financial Asset Acquired with Credit Deterioration [Member] \| Residential 14 Family
Impaired Financing Receivable, Recorded Investment	881	901
Impaired Financing Receivable, Unpaid Principal Balance	1,182	1,031
Financial Asset Acquired with Credit Deterioration [Member] \| Consumer
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	$ 0	$ 0

LOANS, ALLOWANCE FOR LOAN LOS_9

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Change in the accretable and non accretable Components of Discounts on Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Accretable Discount [Member]
Balance at beginning of period	$ 222	$ 318
Acquired balance, net	1,064	44
Reclassifications between accretable and non-accretable	696	858
Accretion to loan interest income	(722)	(998)
Balance at end of period	1,260	222
Non Accretable Discount [Member]
Balance at beginning of period	220	745
Acquired balance, net	727	333
Reclassifications between accretable and non-accretable	(696)	(858)
Accretion to loan interest income	0	0
Balance at end of period	$ 251	$ 220

LOANS, ALLOWANCE FOR LOAN LO_10

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Schedule of troubled debt restructurings (Details) - Commercial Real Estate $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)contract
Number of Contracts \| contract	1
Pre-Modification Outstanding Recorded Investment	$ 115
Post-Modification Outstanding Recorded Investment	$ 115

LOANS, ALLOWANCE FOR LOAN LO_11

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Additional Information (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable, Allowance	$ 16,318,000	$ 11,396,000	$ 10,131,000	$ 12,248,000
Troubled Debt Restructuring Reserve	0	$ 80,000
Minimum [Member]
Loans and Leases Receivable, Allowance	$ 250,000,000

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair value at beginning of period	$ 4,287	$ 3,085
MSR asset acquired	384	1,859
Servicing asset additions	980	740
Loan payments and payoffs	(1,132)	(821)
Changes in valuation inputs and assumptions used in the valuation model	(393)	(576)
Amount recognized through earnings	(545)	(657)
Fair value at end of period	4,126	4,287
Unpaid principal balance of loans serviced for others	16,164	5,776
Other
Unpaid principal balance of loans serviced for others	$ 0	$ 0
Mortgage servicing rights as a percent of loans serviced for others	0.66%	0.77%
Other \| Mortgage Servicing Rights [Member]
Unpaid principal balance of loans serviced for others	$ 628,204	$ 554,374

MORTGAGE SERVICING RIGHTS - Add

MORTGAGE SERVICING RIGHTS - Additional Information (Details) - M	Sep. 30, 2020	Dec. 31, 2019
Measurement Input, Discount Rate [Member]
Mortgage Servicing Rights Discount Rate	10.10%	10.00%
Measurement Input, Prepayment Rate [Member]
Servicing Asset, Measurement Input	17.5	12.1

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	9 Months Ended
NOTES PAYABLE (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 25,145,000	$ 39,790,000
FHLB advances, before adjustment due to purchase accounting	24,988,000	39,800,000
Adjustment due to purchase accounting	157,000	(10,000)
Long-term Debt	$ 24,988,000	39,800,000
Maturity of Fixed Term one Member
Long-term Debt		1,000,000
Debt Instrument, Basis Spread on Variable Rate	1.42%
Maturity of Fixed Term Two Member
Long-term Debt	$ 400,000	400,000
Debt Instrument, Basis Spread on Variable Rate	1.28%
Maturity of Fixed Term Three Member
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.83%
Maturity of Fixed Term Four Member
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.76%
Maturity of Fixed Term Five Member
Long-term Debt	$ 250,000
Debt Instrument, Basis Spread on Variable Rate	2.07%
Maturity of Fixed Term Six Member
Long-term Debt	$ 2,000,000	2,000,000
Debt Instrument, Basis Spread on Variable Rate	1.67%
Maturity of Fixed Term Seven Member
Long-term Debt	$ 5,000,000	5,000,000
Debt Instrument, Basis Spread on Variable Rate	2.37%
Maturity of Fixed Term Eight Member
Long-term Debt	$ 1,000,000	1,000,000
Debt Instrument, Basis Spread on Variable Rate	1.60%
Maturity of Fixed Term Nine Member
Long-term Debt	$ 2,377,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Maturity Of Fixed Term Ten Member
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.87%
Maturity Of Fixed Term Eleven Member
Long-term Debt	$ 4,000,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Maturity Of Fixed Term Twelve Member
Long-term Debt	$ 4,000,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Maturity Of Fixed Term Thirteen [Member]
Long-term Debt	$ 250,000
Debt Instrument, Basis Spread on Variable Rate	2.00%
Maturity Of Fixed Term Fourteen [Member]
Long-term Debt	$ 400,000	400,000
Debt Instrument, Basis Spread on Variable Rate	1.46%
Maturity Of Fixed Term Fifteen [Member]
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.87%
Maturity Of Fixed Term Sixteen [Member]
Long-term Debt	$ 250,000
Debt Instrument, Basis Spread on Variable Rate	1.99%
Maturity Of Fixed Term Seventeen [Member]
Long-term Debt	$ 250,000
Debt Instrument, Basis Spread on Variable Rate	2.51%
Maturity Of Fixed Term Eighteen [Member]
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.98%
Maturity Of Fixed Term Nineteen [Member]
Long-term Debt	$ 500,000
Debt Instrument, Basis Spread on Variable Rate	2.92%
Maturity Of Fixed Term Twenty [Member]
Long-term Debt		10,000,000
Debt Instrument, Basis Spread on Variable Rate	1.76%
Maturity Of Fixed Term Twenty One [Member]
Long-term Debt	$ 600,000
Debt Instrument, Basis Spread on Variable Rate	3.02%
Maturity Of Fixed Term Twenty Two [Member]
Long-term Debt		10,000,000
Debt Instrument, Basis Spread on Variable Rate	1.74%
Maturity Of Fixed Term Twenty Three [Member]
Long-term Debt	$ 600,000
Debt Instrument, Basis Spread on Variable Rate	3.06%
Maturity Of Fixed Term Twenty Four [Member]
Long-term Debt		10,000,000
Debt Instrument, Basis Spread on Variable Rate	1.75%
Maturity Of Fixed Term Twenty Five [Member]
Long-term Debt	$ 103,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Maturity Of Fixed Term Twenty Six [Member]
Long-term Debt	$ 508,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Commercial Bank One [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000
Line of credit with bank	5,000,000
Long-term Line of Credit		5,000,000
Commercial Bank Two [Member]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000
Line of credit with bank	5,000,000
Long-term Line of Credit		$ 5,000,000
Commercial Bank Three Member
Line of Credit Facility, Maximum Borrowing Capacity	7,500,000
Line of credit with bank	7,500,000
Long-term Line of Credit	$ 0

NOTES PAYABLE - Future maturiti

NOTES PAYABLE - Future maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
NOTES PAYABLE
1 year or less	$ 20,777	$ 1,400
1 to 2 years	2,400	8,400
2 to 3 years	600	10,000
3 to 4 years	600	10,000
4 to 5 years		10,000
Over 5 years	611
Long-term Debt, Total	$ 24,988	$ 39,800

SUBORDINATED NOTES (Details)

SUBORDINATED NOTES (Details) - USD ($)	Jul. 22, 2020	Sep. 30, 2020	May 15, 2020	Dec. 31, 2019
Subordinated Borrowing [Line Items]
Subordinated Debt				$ 18,622,000
Subordinated debt acquired		$ 12,000	$ 6,500,000	122,000
Commercial Bank One [Member]
Subordinated Borrowing [Line Items]
Maximum borrowing capacity		5,000,000
Commercial Bank Two [Member]
Subordinated Borrowing [Line Items]
Maximum borrowing capacity		5,000,000
Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Subordinated Debt		11,500,000		11,500,000
Long-term Debt, Gross		7,000,000		$ 7,100,000
Liabilities, Fair Value Adjustment		$ 200,000
Debt Instrument, Interest Rate During Period		7.10%
Maximum borrowing capacity	$ 12,000,000
Maturity term	10 years	10 years
Interest at fixed rate (as a percent)	5.00%
Subordinated Debt [Member] \| Commercial Bank One [Member]
Subordinated Borrowing [Line Items]
Maximum borrowing capacity	$ 6,000,000

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Total capital (to risk-weighted assets):
Capital	$ 252,284	$ 215,347
Capital to Risk Weighted Assets	11.72	10.69
Capital Required for Capital Adequacy	$ 172,179	$ 161,163
Capital Required for Capital Adequacy to Risk Weighted Assets	8	8
Excess Capital	$ 225,985	$ 211,527
Excess Capital to Risk Weighted Assets	10.50	10.50
Capital Required to be Well Capitalized	$ 215,224	$ 201,454
Capital Required to be Well Capitalized to Risk Weighted Assets	10	10
Tier One Risk Based Capital [Abstract]
Tier One Risk Based Capital	$ 235,966	$ 203,951
Tier One Risk Based Capital to Risk Weighted Assets	10.96	10.12
Tier One Risk Based Capital Required for Capital Adequacy	$ 129,135	$ 120,872
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6	6
Excess Tier One Risk Based Capital	$ 182,941	$ 171,236
Excess Tier One Risk Based Capital to Risk Weighted Assets	8.50	8.50
Tier One Risk Based Capital Required to be Well Capitalized	$ 172,179	$ 161,163
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8	8
Common Equity Tier One Capital [Abstract]
Common Equity Tier One Capital	$ 235,966	$ 203,951
Common Equity Tier One Capital Ratio	10.96	10.12
Common Equity Tier One Capital Required for Capital Adequacy	$ 96,851	$ 90,654
Common Equity Tier One Capital Required for Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Excess Common Equity Tier One Capital	$ 150,657	$ 141,018
Excess Common Equity Tier One Capital to Risk Weighted Assets	7.00%	7.00%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 139,896	$ 130,945
Common Equity Tier One Capital Required To Be Well Capitalized To Risk Weighted Assets	6.50%	6.50%
Tier One Leverage Capital [Abstract]
Tier One Leverage Capital	$ 235,966	$ 203,951
Tier One Leverage Capital to Average Assets	9.25	9.67
Tier One Leverage Capital Required for Capital Adequacy	$ 102,019	$ 84,390
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4	4
Excess Tier One Leverage Capital	$ 102,019	$ 84,390
Excess Tier One Leverage Capital to Average Assets	4	4
Tier One Leverage Capital Required to be Well Capitalized	$ 127,524	$ 105,487
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5	5
Company [Member]
Total capital (to risk-weighted assets):
Capital	$ 255,984	$ 208,900
Capital to Risk Weighted Assets	11.89	10.35
Tier One Risk Based Capital [Abstract]
Tier One Risk Based Capital	$ 219,154	$ 178,882
Tier One Risk Based Capital to Risk Weighted Assets	10.18	8.86
Common Equity Tier One Capital [Abstract]
Common Equity Tier One Capital	$ 219,154	$ 178,882
Common Equity Tier One Capital Ratio	10.18	8.86
Tier One Leverage Capital [Abstract]
Tier One Leverage Capital	$ 219,154	$ 178,882
Tier One Leverage Capital to Average Assets	8.54	8.46

REGULATORY MATTERS - Additional

REGULATORY MATTERS - Additional Information (Details) - USD ($) $ in Billions	Sep. 30, 2020	Jan. 01, 2019
REGULATORY MATTERS
Capital Conservative Buffer		2.50%
Threshold Amount Subject To Federal Reserve	$ 3

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Fixed	$ 68,438	$ 49,741
Variable	380,615	333,468
Credit card arrangements	9,973	11,148
Letters of credit	$ 7,794	$ 17,121

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Interest Rate Lock Commitments [Member]
Derivative, Notional Amount	$ 73	$ 14.8

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Securities available for sale
Mortgage servicing rights	$ 4,126	$ 4,287	$ 3,085
Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Mortgage servicing rights	0	0
Significant Other Other Inputs (Level 2)
Securities available for sale
Mortgage servicing rights	4,126	4,287
Significant Unobservable Inputs (Level 3)
Securities available for sale
Mortgage servicing rights	0	0
Corporate notes
Securities available for sale
Instruments Measured At Fair Value	27,832	62,955
Corporate notes \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Corporate notes \| Significant Other Other Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	27,832	62,955
Corporate notes \| Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	0	0
Certificates of deposit
Securities available for sale
Instruments Measured At Fair Value	2,362
Certificates of deposit \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0
Certificates of deposit \| Significant Other Other Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	2,362
Certificates of deposit \| Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	0
Obligations of U.S. Government sponsored agencies
Securities available for sale
Instruments Measured At Fair Value	18,819	12,060
Obligations of U.S. Government sponsored agencies \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Obligations of U.S. Government sponsored agencies \| Significant Other Other Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	18,819	12,060
Obligations of U.S. Government sponsored agencies \| Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	0	0
Obligations of states and political subdivisions [Member]
Securities available for sale
Instruments Measured At Fair Value	73,517	54,771
Obligations of states and political subdivisions [Member] \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Obligations of states and political subdivisions [Member] \| Significant Other Other Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	73,517	54,771
Obligations of states and political subdivisions [Member] \| Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	0	0
Mortgage-backed securities [Member]
Securities available for sale
Instruments Measured At Fair Value	50,804	51,720
Mortgage-backed securities [Member] \| Quoted Prices In Active Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Mortgage-backed securities [Member] \| Significant Other Other Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	50,804	51,720
Mortgage-backed securities [Member] \| Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair value of assets measured on a recurring basis (Details) - Obligations of states and political subdivisions [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Total securities at beginning of period	$ 0	$ 400
Included in earnings	0	0
Included in other comprehensive income	0	0
Purchases, issuance, and settlements	0	(400)
Transfer in and/or out of level 3	0	0
Total securities at end of period	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Fai_2

FAIR VALUE MEASUREMENTS - Fair value of assets measured on a non-recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
OREO	$ 3,264	$ 6,888
Impaired Loans, net of impairment reserve	24,984	6,847
Assets, Fair Value Disclosure	28,248	13,735
Quoted Prices In Active Markets for Identical Assets (Level 1)
Impaired Loans, net of impairment reserve	0	0
Quoted Prices In Active Markets for Identical Assets (Level 1) \| Fair Value, Measurements, Nonrecurring [Member]
OREO	0	0
Impaired Loans, net of impairment reserve	0	0
Assets, Fair Value Disclosure	0	0
Significant Other Other Inputs (Level 2)
Impaired Loans, net of impairment reserve	0	0
Significant Other Other Inputs (Level 2) \| Fair Value, Measurements, Nonrecurring [Member]
OREO	0	0
Impaired Loans, net of impairment reserve	0	0
Assets, Fair Value Disclosure	0	0
Significant Unobservable Inputs (Level 3)
Impaired Loans, net of impairment reserve	2,161,367	1,723,542
Significant Unobservable Inputs (Level 3) \| Fair Value, Measurements, Nonrecurring [Member]
OREO	3,264	6,888
Impaired Loans, net of impairment reserve	24,984	6,847
Assets, Fair Value Disclosure	$ 28,248	$ 13,735

FAIR VALUE MEASUREMENTS - Fai_3

FAIR VALUE MEASUREMENTS - Fair value measurement on inputs and valuation techniques (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Third party appraisals, sales contracts or brokered price options
Other real estate owned	Collateral discounts and estimated costs to sell	Collateral discounts and estimated costs to sell
Third party appraisals, sales contracts or brokered price options \| Maximum [Member] \| Measurement Input, Discount Rate [Member]
Other real estate owned	100	61
Third party appraisals, sales contracts or brokered price options \| Minimum [Member] \| Measurement Input, Discount Rate [Member]
Other real estate owned	0	0
Third party appraisals, sales contracts or brokered price options \| Weighted Average [Member] \| Measurement Input, Discount Rate [Member]
Other real estate owned	37.1	33.5
Third party appraisals and discounted cash flows
Impaired Loans, Unobservable Inputs	Collateral discounts and discount rates	Collateral discounts and discount rates
Third party appraisals and discounted cash flows \| Maximum [Member] \| Measurement Input, Discount Rate [Member]
Loans Held-for-sale, Measurement Input	100	100
Third party appraisals and discounted cash flows \| Minimum [Member] \| Measurement Input, Discount Rate [Member]
Loans Held-for-sale, Measurement Input	0	0
Third party appraisals and discounted cash flows \| Weighted Average [Member] \| Measurement Input, Discount Rate [Member]
Loans Held-for-sale, Measurement Input	5.7	6.1

FAIR VALUE MEASUREMENTS - Carry

FAIR VALUE MEASUREMENTS - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Securities held to maturity	$ 6,691	$ 44,803
Securities available for sale	173,334	181,506
Loans, net	24,984	6,847
Mortgage servicing rights	4,126	4,287	$ 3,085
Quoted Prices In Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	80,752	86,452
Securities held to maturity	0	0
Securities available for sale	0	0
Loans held for sale	0	0
Loans, net	0	0
Other investments, at cost	0	0
Mortgage servicing rights	0	0
Cash surrender value of life insurance	31,197	24,945
Financial liabilities:
Deposits	0	0
Securities sold under repurchase agreements	0	0
Notes Payable	0	0
Subordinated notes	0	0
Significant Other Other Inputs (Level 2)
Financial assets:
Cash and cash equivalents	0	0
Securities held to maturity	6,691	44,803
Securities available for sale	173,334	181,506
Loans held for sale	0	0
Loans, net	0	0
Other investments, at cost	0	0
Mortgage servicing rights	4,126	4,287
Cash surrender value of life insurance	0	0
Financial liabilities:
Deposits	0	0
Securities sold under repurchase agreements	23,894	45,865
Notes Payable	25,145	49,790
Subordinated notes	20,512	18,622
Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Securities available for sale	0	0
Loans held for sale	659	587
Loans, net	2,161,367	1,723,542
Other investments, at cost	8,896	4,933
Mortgage servicing rights	0	0
Cash surrender value of life insurance	0	0
Financial liabilities:
Deposits	2,255,945	1,783,638
Securities sold under repurchase agreements	0	0
Notes Payable	0	0
Subordinated notes	0	0
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	80,752	86,452
Securities held to maturity	6,670	43,734
Securities available for sale	173,334	181,506
Loans held for sale	659	587
Loans, net	2,176,910	1,724,947
Other investments, at cost	8,896	4,933
Mortgage servicing rights	4,126	4,287
Cash surrender value of life insurance	31,197	24,945
Financial liabilities:
Deposits	2,271,040	1,843,311
Securities sold under repurchase agreements	23,894	45,865
Notes Payable	25,145	49,790
Subordinated notes	20,512	18,622
Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	80,752	86,452
Securities held to maturity	6,691	44,803
Securities available for sale	173,334	181,506
Loans held for sale	659	587
Loans, net	2,161,367	1,723,542
Other investments, at cost	8,896	4,933
Mortgage servicing rights	4,126	4,287
Cash surrender value of life insurance	31,197	24,945
Financial liabilities:
Deposits	2,255,945	1,783,638
Securities sold under repurchase agreements	23,894	45,865
Notes Payable	25,145	49,790
Subordinated notes	$ 20,512	$ 18,622

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - $ / shares	9 Months Ended
STOCK BASED COMPENSATION (Details) - $ / shares	Sep. 30, 2020	Sep. 30, 2019
STOCK BASED COMPENSATION
Restricted Stock, Shares Outstanding at beginning of period	50,676	51,776
Restricted Stock, Shares Granted	27,466	17,015
Restricted Stock, Shares Vested	(18,623)	(17,212)
Restricted Stock, Shares Forfeited or cancelled	(2,344)	(903)
Restricted Stock, Shares Outstanding at end of period	57,175	50,676
Weighted-Average Grant-Date Fair Value, Outstanding at beginning of period	$ 43.03	$ 34.27
Weighted-Average Grant-Date Fair Value, Granted	60.76	56.62
Weighted-Average Grant-Date Fair Value, Vested	37.28	30.54
Weighted-Average Grant-Date Fair Value, Forfeited or cancelled	51.27	41.01
Weighted-Average Grant-Date Fair Value, Outstanding at end of period	$ 53.08	$ 43.03

STOCK BASED COMPENSATION - Addi

STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 2.3
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 10 months 2 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0.7
Restricted Stock or Unit Expense	$ 0.8	$ 0.5
2020 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	700,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	399

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	9 Months Ended
LEASES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
LEASES
Amortization of ROU Assets - Operating Leases	$ 31	$ 35
Interest on Lease Liabilities - Operating Leases	69	63
Operating Lease Cost (Cost resulting from lease payments)	100	98
ROU Assets - Operating Leases at beginning of period	1,699
New ROU Assets - Operating Leases		1,744
ROU Assets - Operating Leases at June 30,	$ 1,668	$ 1,708
Weighted Average Lease Term (Years) - Operating Leases	31 years 6 months 3 days	31 years 7 months 6 days
Weighted Average Discount Rate - Operating Leases	5.50%	5.50%

LEASES - Operating Lease (Detai

LEASES - Operating Lease (Details) $ in Thousands	Sep. 30, 2020USD ($)
Operating lease payments due:
Within one year	$ 141
After one but within two years	124
After two but within three years	86
After three but within four years	86
After four years but within five years	86
After five years	3,346
Total undiscounted cash flows	3,869
Discount on cash flows	(2,201)
Total operating lease liabilities	$ 1,668