Bank First (BFC) 10-Q 13 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 13, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	Bank First Corp
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,106,210
Entity Central Index Key	0001746109
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Trading Symbol	BFC

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 19,204	$ 41,435
Interest-bearing deposits	89,833	21,830
Federal funds sold	16,837	44,478
Cash and cash equivalents	125,874	107,743
Securities held to maturity, at amortized cost ($40,552 and $40,477 fair value at June 30, 2019 and December 31, 2018, respectively)	39,537	40,768
Securities available for sale, at fair value	120,083	118,906
Loans, net	1,407,022	1,416,246
Premises and equipment, net	28,097	24,489
Goodwill	15,024	15,024
Other investments	4,517	4,555
Cash value of life insurance	24,488	24,178
Intangible assets, net	4,974	5,297
Other real estate owned ("OREO")	3,543	3,592
Investment in minority-owned subsidiaries	26,434	25,397
Other assets	6,874	6,970
TOTAL ASSETS	1,806,467	1,793,165
Deposits:
Interest-bearing deposits	1,093,636	1,108,402
Noninterest-bearing deposits	481,362	448,765
Total deposits	1,574,998	1,557,167
Securities sold under repurchase agreements	20,034	31,489
Subordinated notes	11,500	11,500
Other liabilities	14,487	18,686
Total liabilities	1,621,019	1,618,842
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 - 7,368,083 shares as of June 30, 2019 and December 31, 2018 Outstanding - 6,576,171 and 6,610,358 shares as of June 30, 2019 and December 31, 2018, respectively	74	74
Additional paid-in capital	27,436	27,601
Retained earnings	178,314	168,363
Treasury stock, at cost - 791,912 and 757,725 shares as of June 30, 2019 and December 31, 2018, respectively	(23,386)	(21,349)
Accumulated other comprehensive income (loss)	3,010	(366)
Total stockholders' equity	185,448	174,323
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,806,467	$ 1,793,165

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Held-to-maturity, Fair Value	$ 40,552	$ 40,477
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	7,368,083	7,368,083
Common Stock, Shares, Outstanding	6,576,171	6,610,358
Treasury Stock, Shares	791,912	757,725
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	5,000,000	5,000,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest income:
Loans, including fees	$ 18,506	$ 17,888	$ 36,732	$ 35,614
Securities:
Taxable	691	713	1,435	1,416
Tax-exempt	413	448	839	914
Other	548	323	875	737
Total interest income	20,158	19,372	39,881	38,681
Interest expense:
Deposits	4,442	2,797	8,667	5,160
Securities sold under repurchase agreements	167	131	297	224
Borrowed funds	175	675	343	1,247
Total interest expense	4,784	3,603	9,307	6,631
Net interest income	15,374	15,769	30,574	32,050
Provision for loan losses	500	900	1,125	1,385
Net interest income after provision for loan losses	14,874	14,869	29,449	30,665
Noninterest income:
Service charges	799	786	1,478	1,632
Income from Ansay and Associates, LLC ("Ansay")	543	562	1,418	1,758
Income from UFS, LLC ("UFS")	731	586	1,325	1,195
Loan servicing income	244	604	467	846
Net gain on sales of mortgage loans	154	128	241	285
Noninterest income from strategic alliances	29	21	48	44
Other	213	340	1,042	710
Total noninterest income	2,713	3,027	6,019	6,470
Noninterest expense:
Salaries, commissions, and employee benefits	5,403	5,446	10,713	10,763
Occupancy	832	532	1,681	1,882
Data processing	960	925	1,873	1,864
Postage, stationery, and supplies	192	159	315	326
Net (gain) loss on sales and valuations of OREO	(135)	(38)	(99)	98
Net (gain) loss on sales of securities	(23)	47	(23)	44
Net gain on sale of other investments	0	0	(234)	0
Advertising	53	54	127	106
Charitable contributions	141	322	272	695
Outside service fees	982	896	1,666	1,416
Amortization of intangibles	161	189	322	378
Other	1,366	1,532	2,621	2,469
Total noninterest expense	9,932	10,064	19,234	20,041
Income before provision for income taxes	7,655	7,832	16,234	17,094
Provision for income taxes	1,666	1,431	3,658	3,631
Net Income	$ 5,989	$ 6,401	$ 12,576	$ 13,463
Earnings per share - basic	$ 0.91	$ 0.96	$ 1.91	$ 2.01
Earnings per share - diluted	0.90	0.96	1.89	2.01
Dividends per share	$ 0.20	$ 0.16	$ 0.40	$ 0.32

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income
Net Income	$ 5,989	$ 6,401	$ 12,576	$ 13,463
Unrealized gains (losses) on available for sale securities:
Unrealized holding gains (losses) arising during period	1,961	(406)	4,318	(2,180)
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity	(11)	(13)	(22)	(53)
Reclassification adjustment for (gains) losses included in net income	(23)	47	(23)	44
Income tax benefit (expense)	(405)	78	(897)	543
Total other comprehensive income (loss)	1,522	(294)	3,376	(1,646)
Comprehensive income	$ 7,511	$ 6,107	$ 15,952	$ 11,817

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	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, 2017	$ 0	$ 74	$ 27,528	$ 145,879	$ (12,730)	$ 977	$ 161,728
Net income	0	0	0	7,062	0	0	7,062
Other comprehensive loss	0	0	0	0	0	(1,352)	(1,352)
Purchase of treasury stock	0	0	0	0	(5,648)	0	(5,648)
Sale of treasury stock	0	0	0	0	951	0	951
Cash dividends	0	0	0	(1,066)	0	0	(1,066)
Amortization of stock-based compensation	0	0	121	0	0	0	121
Vesting of restricted stock awards	0	0	(433)	0	433	0	0
Balance at Mar. 31, 2018	0	74	27,216	151,875	(16,994)	(375)	161,796
Balance at Dec. 31, 2017	0	74	27,528	145,879	(12,730)	977	161,728
Net income							13,463
Balance at Jun. 30, 2018	0	74	27,310	157,204	(18,719)	(669)	165,200
Balance at Mar. 31, 2018	0	74	27,216	151,875	(16,994)	(375)	161,796
Net income	0	0	0	6,401	0	0	6,401
Other comprehensive loss	0	0	0	0	0	(294)	(294)
Purchase of treasury stock	0	0	0	0	(2,171)	0	(2,171)
Sale of treasury stock	0	0	0	0	396	0	396
Cash dividends	0	0	0	(1,072)	0	0	(1,072)
Amortization of stock-based compensation	0	0	144	0	0	0	144
Vesting of restricted stock awards	0	0	(50)	0	50	0	0
Balance at Jun. 30, 2018	0	74	27,310	157,204	(18,719)	(669)	165,200
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 loss	0	0	0	0	0	1,854	1,854
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	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)	1,488	179,178
Balance at Dec. 31, 2018	0	74	27,601	168,363	(21,349)	(366)	174,323
Net income							12,576
Balance at Jun. 30, 2019	0	74	27,436	178,314	(23,386)	3,010	185,448
Balance at Mar. 31, 2019	0	74	27,305	173,644	(23,333)	1,488	179,178
Net income	0	0	0	5,989	0	0	5,989
Other comprehensive loss	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	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)	$ 3,010	$ 185,448

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Consolidated Statement of Stockholders' Equity
Dividends Payable, Amount Per Share	$ 0.20	$ 0.20	$ 0.16	$ 0.16

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 12,576	$ 13,463
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,125	1,385
Depreciation and amortization of premises and equipment	551	579
Amortization of intangibles	322	378
Net amortization of securities	186	209
Amortization of stock-based compensation	334	266
Accretion of purchase accounting valuations	(2,158)	(3,698)
Net change in deferred loan fees and costs	(136)	(131)
Change in fair value of mortgage servicing rights ("MSR")	(413)	(226)
Loss from sale and disposal of premises and equipment	23	123
(Gain) loss on sale of OREO and valuation allowance	(99)	98
Proceeds from sales of mortgage loans	21,621	17,525
Originations of mortgage loans held for sale	(21,589)	(17,864)
Gain on sales of mortgage loans	(241)	(285)
Realized (gain) loss on sale of securities available for sale and other investments	(257)	44
Undistributed income of UFS joint venture	(1,325)	(1,195)
Undistributed income of Ansay joint venture	(1,418)	(1,758)
Net earnings on life insurance	(310)	(302)
(Increase) decrease in other assets	(779)	1,113
Decrease in other liabilities	(5,803)	(5,149)
Net cash provided by operating activities	2,210	4,575
Activity in securities available for sale and held to maturity:
Sales	748	3,326
Maturities, prepayments, and calls	6,408	6,964
Purchases	(3,015)	(16,458)
Net change in loans	9,402	(34,099)
Dividends received from UFS	1,067	501
Dividends received from Ansay	639	501
Proceeds from sale of OREO	1,070	1,771
Proceeds from sales of other investments	984
Net purchases of FHLB Stock	(90)	(204)
Proceeds from sale of premises and equipment	0	149
Purchases of premises and equipment	(2,464)	(5,608)
Net cash provided by (used in) investing activities	14,749	(43,157)
Cash flows from financing activities:
Net increase (decrease) in deposits	17,902	(10,846)
Net decrease in securities sold under repurchase agreements	(11,455)	(34,135)
Proceeds from advances of borrowed funds	4,000	687,700
Repayment of borrowed funds	(4,000)	(652,200)
Dividends paid	(2,625)	(2,138)
Proceeds from sales of common stock	0	1,347
Repurchase of common stock	(2,650)	(7,819)
Net cash (used in) provided by financing activities	1,172	(18,091)
Net increase (decrease) in cash and cash equivalents	18,131	(56,673)
Cash and cash equivalents at beginning of period	107,743	101,977
Cash and cash equivalents at end of period	125,874	45,304
Cash paid during the period for:
Interest	9,117	7,453
Income taxes	3,171	2,325
Supplemental schedule of noncash activities:
Loans transferred to OREO	920	649
MSR resulting from sale of loans	209	164
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity recognized in other comprehensive income, net of tax	(17)	(40)
Change in unrealized gains and losses on investment securities available for sale, net of tax	3,375	(1,606)
Payment of deferred compensation through issuance of treasury stock	$ 114	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
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 nineteen locations located in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca and Barron counties in Wisconsin. 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, 2018 (“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 February 2016, the FASB issued ASU 2016‑02, “Leases (Topic 842).” The update required lessees to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases. The provisions of the update also include (a) defining direct costs to only include those incremental costs that would not have been incurred if the lease had not been entered into, (b) circumstances under which the transfer contract in a sale-leaseback transaction should be accounted for as the sale of an asset by the seller-lessee and the purchase of an asset by the buyer-lessor, and (c) additional disclosure requirements. The provisions of this update became effective for interim and annual periods beginning after December 15, 2018. Adoption of this guidance required the Company to record a right-of-use asset approximating $1.7 million, included in premises and equipment, and a corresponding lease liability, included in other liabilities. In March 2017, the FASB issued ASU 2017‑08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. This guidance became effective for interim and annual periods beginning after December 15, 2018. The adoption of this update did not have a material 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.” ASU 2016‑13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as, the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016‑13 amends the accounting for credit losses on available for sale and held to maturity debt securities and purchased financial assets with credit deterioration. ASU 2016‑13 will become effective for interim and annual periods beginning after December 15, 2019. 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	6 Months Ended
	Jun. 30, 2019
ACQUISITIONS
ACQUISITIONS	NOTE 2 – ACQUISITIONS On October 27, 2017, the Company completed a merger with Waupaca Bancorporation, Inc. (“Waupaca”), a bank holding company headquartered in Waupaca, Wisconsin, pursuant to the Agreement and Plan of Bank Merger, dated as of May 11, 2017 and as amended on July 20, 2017, by and among the Company, BFNC Merger Sub, LLC, a wholly-owned subsidiary of the Company, and Waupaca, whereby Waupaca merged with and into the Company, and First National Bank, Waupaca’s wholly-owned banking subsidiary, was merged with and into the Bank. Waupaca’s principal activity was the ownership and operation of First National Bank, a national banking institution that operated eight (8) branches in Wisconsin at the time of closing. The merger consideration totaled approximately $78.1 million, 70% of which was distributed in cash and 30% of which was distributed in the form of Company common stock. 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. The Company entered into an Agreement and Plan of Merger with Partnership Community Bancshares, Inc. (“Partnership”), a Wisconsin Corporation, dated as of January 22, 2019 and as amended on April 30, 2019, under which Partnership will merge with and into the Company and Partnership’s banking subsidiary, Partnership Bank, will merge with and into the Bank. The transaction closed on July 12, 2019. Merger consideration consisted of 65% common stock of the Company and 35% cash, and totalled approximately $49.6 million. We marked Partnership’s assets and liabilities to fair value based on information available at the time of acquisition. We acquired approximately $306.1 million in assets at fair value from Partnership and added four branches with approximately $272.6 million in loans and approximately $268.9 million in deposits. We expect to record goodwill of approximately $30.1 million and a core deposit intangible asset of approximately $5.4 million as a result of the merger. The Company is still finalizing the fair value estimates. The fair value results are preliminary and subject to refinement for up to one year after the closing as additional information becomes available. Additional information regarding the Partnership merger is included in Note 14, “Subsequent Events.”

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 3 – EARNINGS PER SHARE Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potential common shares using the treasury stock method. A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution, for the three and six months ended June 30, 2019 and 2018, are presented below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income from operations $ 5,989 $ 6,401 $ 12,576 $ 13,463 Weighted average common shares outstanding 6,577,016 6,672,344 6,575,696 6,692,523 Effect of dilutive potential common shares 98,778 — 66,526 — Diluted weighted average common shares outstanding 6,675,794 6,672,344 6,642,222 6,692,523 Earnings per share - basic $ 0.91 $ 0.96 $ 1.91 $ 2.01 Earnings per share - diluted $ 0.90 $ 0.96 $ 1.89 $ 2.01

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2019
SECURITIES
SECURITIES	NOTE 4 – SECURITIES The Company’s securities available for sale as of June 30, 2019 and December 31, 2018 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2019 Obligations of states and political subdivisions $ 49,030 $ 2,155 $ (4) $ 51,181 Mortgage-backed securities 50,610 1,446 (25) 52,031 Corporate notes 16,761 211 (101) 16,871 Total available for sale securities $ 116,401 $ 3,812 $ (130) $ 120,083 December 31, 2018 Obligations of states and political subdivisions $ 51,292 $ 709 $ (108) $ 51,893 Mortgage-backed securities 51,519 66 (1,016) 50,569 Corporate notes 16,708 — (264) 16,444 Total available for sale securities $ 119,519 $ 775 $ (1,388) $ 118,906 The Company’s securities held to maturity as of June 30, 2019 and December 31, 2018 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2019 U.S. Treasury securities $ 28,978 $ 1,004 $ (2) $ 29,980 Obligations of states and political subdivisions 10,559 13 — 10,572 Total held to maturity securities $ 39,537 $ 1,017 $ (2) $ 40,552 December 31, 2018 U.S. Treasury securities $ 28,975 $ 92 $ (389) $ 28,678 Obligations of states and political subdivisions 11,793 6 — 11,799 Total held to maturity securities $ 40,768 $ 98 $ (389) $ 40,477 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 June 30, 2019 - Available for Sale Obligations of states and political subdivisions $ — $ — $ 1,646 $ (4) $ 1,646 $ (4) Mortgage-backed securities — — 3,460 (25) 3,460 (25) Corporate notes — — 7,785 (101) 7,785 (101) Totals $ — $ — $ 12,891 $ (130) $ 12,891 $ (130) June 30, 2019 - Held to Maturity U.S. Treasury securities $ — $ — $ 1,494 $ (2) $ 1,494 $ (2) December 31, 2018 - Available for Sale Obligations of states and political subdivisions $ 10,024 $ (64) $ 4,132 $ (44) $ 14,156 $ (108) Mortgage-backed securities 13,352 (183) 31,718 (833) 45,070 (1,016) Corporate notes — — 12,531 (264) 12,531 (264) Totals $ 23,376 $ (247) $ 48,381 $ (1,141) $ 71,757 $ (1,388) December 31, 2018 - Held to Maturity U.S. Treasury securities $ 8,422 $ (46) $ 11,580 $ (343) $ 20,002 $ (389) As of June 30, 2019, 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 six months ended June 30, 2019 or 2018. The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of June 30, 2019. 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 $ 2,533 $ 2,573 $ 2,324 $ 2,322 Due after one year through five years 23,122 23,421 14,638 14,890 Due after five years through ten years 9,827 10,311 19,666 20,431 Due after ten years 30,309 31,747 2,909 2,909 Subtotal 65,791 68,052 39,537 40,552 Mortgage-backed securities 50,610 52,031 — — Total $ 116,401 $ 120,083 $ 39,537 $ 40,552 The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses for the six months ended June 30, 2019 and 2018: 2019 2018 Proceeds from sales of securities $ 748 $ 3,326 Gross gains on sales 23 29 Gross losses on sales — 73

LOANS, ALLOWANCE FOR LOAN LOSSE

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Commercial/industrial $ 271,838 $ 297,576 Commercial real estate - owner occupied 415,451 416,097 Commercial real estate - non-owner occupied 255,072 252,717 Construction and development 73,522 60,927 Residential 1‑4 family 370,261 368,673 Consumer 28,138 26,854 Other 5,493 6,369 Subtotals 1,419,775 1,429,213 ALL (12,170) (12,248) Loans, net of ALL 1,407,605 1,416,965 Deferred loan fees and costs (583) (719) Loans, net $ 1,407,022 $ 1,416,246 The ALL by loan type as of June 30, 2019 and 2018 is summarized as follows: Commercial Commercial Real Estate - Construction Commercial / Real Estate - Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total ALL - January 1, 2019 $ 3,021 $ 3,459 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 291 $ 12,248 Charge-offs (594) (659) (54) — (11) (11) (8) — (1,337) Recoveries 1 2 1 — 122 4 4 — 134 Provision (285) 2,631 (99) (314) (556) (2) 1 (251) 1,125 ALL - June 30, 2019 40 ALL ending balance individually evaluated for impairment — 2,285 — — — — — — 2,285 ALL ending balance collectively evaluated for impairment $ 2,143 $ 3,148 $ 1,948 $ 411 $ 2,027 $ 139 $ 29 $ 40 $ 9,885 Loans outstanding - June 30, 2019 $ 271,838 $ 415,451 $ 255,072 $ 73,522 $ 370,261 $ 28,138 $ 5,493 $ — $ 1,419,775 Loans ending balance individually evaluated for impairment — 9,992 — — 176 — — — 10,168 Loans ending balance collectively evaluated for impairment $ 271,838 $ 405,459 $ 255,072 $ 73,522 $ 370,085 $ 28,138 $ 5,493 $ — $ 1,409,607 Commercial Commercial Real Estate - Construction Commercial / Real Estate – Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total ALL - January 1, 2018 $ 2,362 $ 2,855 $ 1,987 $ 945 $ 2,728 $ 191 $ 23 $ 521 $ 11,612 Charge-offs — (17) (1) (83) (81) (3) (23) — (208) Recoveries 1 58 2 — 188 3 6 — 258 Provision 1,042 385 177 16 (33) 57 43 (302) 1,385 ALL - June 30, 2018 3,405 3,281 2,165 878 2,802 248 49 219 13,047 ALL ending balance individually evaluated for impairment — 498 — — 160 — — — 658 ALL ending balance collectively evaluated for impairment $ 3,405 $ 2,783 $ 2,165 $ 878 $ 2,642 $ 248 $ 49 $ 219 $ 12,389 Loans outstanding - June 30, 2018 $ 314,087 $ 415,097 $ 226,677 $ 67,558 $ 365,502 $ 40,226 $ 5,714 $ — $ 1,434,861 Loans ending balance individually evaluated for impairment — 652 — — 709 — — — 1,361 Loans ending balance collectively evaluated for impairment $ 314,087 $ 414,445 $ 226,677 $ 67,558 $ 364,793 $ 40,226 $ 5,714 $ — $ 1,433,500 The Company’s past due loans as of June 30, 2019 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ — $ 589 $ 665 $ 1,254 Commercial real estate - owner occupied 348 2,567 11,914 14,829 Commercial real estate - non-owner occupied — — — — Construction and development 919 — — 919 Residential 1‑4 family 744 276 1,028 2,048 Consumer 61 1 4 66 Other — — — — $ 2,072 $ 3,433 $ 13,611 $ 19,116 The Company’s past due loans as of December 31, 2018 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 76 $ — $ 8,001 $ 8,077 Commercial real estate - owner occupied 59 — 10,311 10,370 Commercial real estate - non-owner occupied — 58 233 291 Construction and development — — — — Residential 1‑4 family 275 362 1,549 2,186 Consumer 9 3 5 17 Other — — — — $ 419 $ 423 $ 20,099 $ 20,941 We utilize 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 June 30, 2019 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 255,273 $ 6,127 $ 10,438 $ — $ 271,838 Commercial real estate - owner occupied 381,034 4,237 30,180 — 415,451 Commercial real estate - non-owner occupied 253,020 1,213 839 — 255,072 Construction and development 73,522 — — — 73,522 Residential 1‑4 family 368,774 — 1,487 — 370,261 Consumer 28,135 — 3 — 28,138 Other 5,493 — — — 5,493 $ 1,365,251 $ 11,577 $ 42,947 $ — $ 1,419,775 The breakdown of loans by risk rating as of December 31, 2018 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 277,993 $ 7,309 $ 12,274 $ — $ 297,576 Commercial real estate - owner occupied 375,614 5,670 34,789 24 416,097 Commercial real estate - non-owner occupied 249,625 — 3,092 — 252,717 Construction and development 60,866 — 61 — 60,927 Residential 1‑4 family 364,289 664 3,718 2 368,673 Consumer 26,835 — 18 1 26,854 Other 6,369 — — — 6,369 $ 1,361,591 $ 13,643 $ 53,952 $ 27 $ 1,429,213 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 June 30, 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 Unallocated Total With an allowance recorded: Recorded investment $ — $ 6,695 $ — $ — $ — $ — $ — $ — $ 6,695 Unpaid principal balance — 6,695 — — — — — — 6,695 Related allowance — 2,285 — — — — — — 2,285 With no related allowance recorded: Recorded investment $ — $ 3,297 $ — $ — $ 176 $ — $ — $ — $ 3,473 Unpaid principal balance — 3,297 — — 176 — — — 3,473 Related allowance — — — — — — — — — Total: Recorded investment $ — $ 9,992 $ — $ — $ 176 $ — $ — $ — $ 10,168 Unpaid principal balance — 9,992 — — 176 — — — 10,168 Related allowance — 2,285 — — — — — — 2,285 Average recorded investment $ 2,834 $ 8,894 $ — $ — $ 439 $ — $ — $ — $ 12,167 A summary of impaired loans individually evaluated as of December 31, 2018 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 $ 5,667 $ 2,099 $ — $ — $ 523 $ — $ — $ — $ 8,289 Unpaid principal balance 5,667 2,099 — — 523 — — — 8,289 Related allowance 566 353 — — 160 — — — 1,079 With no related allowance recorded: Recorded investment $ — $ 5,697 $ — $ — $ 179 $ — $ — $ — $ 5,876 Unpaid principal balance — 5,697 — — 179 — — — 5,876 Related allowance — — — — — — — — — Total: Recorded investment $ 5,667 $ 7,796 $ — $ — $ 702 $ — $ — $ — $ 14,165 Unpaid principal balance 5,667 7,796 — — 702 — — — 14,165 Related allowance 566 353 — — 160 — — — 1,079 Average recorded investment $ 2,834 $ 4,036 $ — $ — $ 706 $ — $ — $ — $ 7,576 Interest recognized while these loans were impaired is considered immaterial to the consolidated financial statements for the six months ended June 30, 2019 and 2018. The following table presents loans acquired with deteriorated credit quality as of June 30, 2019 and December 31, 2018. 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. June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 417 $ 420 $ 555 $ 701 Commercial real estate - owner occupied 1,318 1,932 1,558 2,069 Commercial real estate - non-owner occupied — — 233 475 Construction and development 226 250 171 171 Residential 1‑4 family 1,072 1,170 1,664 1,828 Consumer — — — — Other — — — — $ 3,033 $ 3,772 $ 4,181 $ 5,244 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 periods ended June 30, 2019, and December 31, 2018: June 30, 2019 December 31, 2018 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 318 $ 745 $ 583 $ 800 Acquired balance, net — — — — Reclassifications between accretable and non-accretable 203 (203) 55 (55) Accretion to loan interest income (324) — (320) — Disposals of loans — — — — Balance at end of period $ 197 $ 542 $ 318 $ 745 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. 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, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status, generally six months. As of June 30, 2019 and December 31, 2018 the Company had specific reserves of $2.1 million and $0.4 million for TDRs, respectively, and none of them have subsequently defaulted. There were no loan modifications resulting in TDRs during the six months ended June 30, 2019 and 2018.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2019
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: Six Months Ended Year Ended June 30, 2019 December 31, 2018 Fair value at beginning of year $ 3,085 $ 2,610 Servicing asset additions 209 356 Loan payments and payoffs (246) (475) Changes in valuation inputs and assumptions used in the valuation model 37 594 Amount recognized through earnings — 475 Fair value at end of period $ 3,085 $ 3,085 Unpaid principal balance of loans serviced for others $ 319,173 $ 316,480 Mortgage servicing rights as a percent of loans serviced for others 0.97 0.97 The primary economic assumptions utilized by the Company in measuring the value of MSRs were constant prepayment speeds of 8.3 months as of June 30, 2019 and December 31, 2018, and discount rates of 10% as of both period ends.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2019
NOTES PAYABLE
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE From time to time the Company utilizes short-term Federal Home Loan Bank (“FHLB”) advances to fund liquidity. The Bank had no advances outstanding from FHLB at June 30, 2019 or December 31, 2018. The Company maintains a $5.0 million line of credit with a commercial bank. At June 30, 2019 and December 31, 2018, the Company had no outstanding balances on this note. The note requires monthly payments of interest at a variable rate, and is due in full on May 25, 2020. The Company maintains a $5.0 million line of credit with another commercial bank. There were no outstanding balances on this note at June 30, 2019 or December 31, 2018. The note requires monthly payments of interest at a variable rate, and is due in full on May 19, 2020.

SUBORDINATED NOTES

SUBORDINATED NOTES	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 and December 31, 2018. 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.

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 and December 31, 2018, 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. As of December 31, 2018, the buffer was 1.88%. 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 Minimum Capital Capitalized Under For Capital Adeqaucy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2019 Total capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Tier 1 capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Common Equity Tier 1 capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Tier 1 capital (to average assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % December 31, 2018 Total capital (to risk-weighted assets): Company $ 181,201 11.35 % NA NA NA NA NA NA Bank $ 178,668 11.21 % $ 127,497 8.00 % $ 157,459 9.88 % $ 159,372 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 157,453 9.86 % NA NA NA NA NA NA Bank $ 166,420 10.44 % $ 95,623 6.00 % $ 125,585 7.88 % $ 127,497 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 157,453 9.86 % NA NA NA NA NA NA Bank $ 166,420 10.44 % $ 71,717 4.50 % $ 101,679 6.38 % $ 103,592 6.50 % Tier 1 capital (to average assets): Company $ 157,453 9.06 % NA NA NA NA NA NA Bank $ 166,420 9.59 % $ 69,410 4.00 % $ 69,410 4.00 % $ 86,762 5.00 %

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2019
COMMITMENTS
COMMITMENTS	NOTE 10 – COMMITMENTS 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 June 30, 2019 and December 31, 2018, respectively, was approximately $0.7 million and $3.3 million. 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 June 30, 2019 December 31, 2018 Commitments to extend credit: Fixed $ 44,412 $ 57,911 Variable 251,085 268,541 Credit card arrangements 8,064 7,119 Letters of credit 23,962 25,261

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2019
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) June 30, 2019 Assets Securities available for sale Obligations of states and political subdivisions $ 51,181 $ — $ 50,781 $ 400 Mortgage-backed securities 52,031 — 52,031 — Corporate notes 16,871 — 16,871 — Mortgage servicing rights 3,085 — 3,085 — December 31, 2018 Assets Securities available for sale Obligations of states and political subdivisions $ 51,893 $ — $ 51,493 $ 400 Mortgage-backed securities 50,569 — 50,569 — Corporate notes 16,444 — 16,444 — Mortgage servicing rights 3,085 — 3,085 — Fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) are as follows: June 30, 2019 December 31, 2018 Total securities at beginning of period $ 400 $ 500 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (100) Transfer in and/or out of level 3 — — Total securities at end of period $ 400 $ 400 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) June 30, 2019 Other real estate owned $ 3,543 $ — $ — $ 3,543 Impaired Loans, net of impairment reserve 13,008 — — 13,008 $ 16,551 $ — $ — $ 16,551 December 31, 2018 Other real estate owned $ 3,592 $ — $ — $ 3,592 Impaired Loans, net of impairment reserve 20,872 — — 20,872 $ 24,464 $ — $ — $ 24,464 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 Valuation Unobservable Range of Average Technique Inputs Discounts Discount As of June 30, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 40% % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% % As of December 31, 2018 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 40% 18.6 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 9.3 % The following methods and assumptions were used by the Company to estimate fair value of financial instruments. Cash and cash equivalents — Fair value approximates the carrying amount. Securities — The fair value measurement is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data. Loans — Fair value of variable rate loans that reprice frequently are based on carrying value. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair 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 — The carrying amount reported in the consolidated balance sheets for other investments approximates the fair value of these assets. Mortgage servicing rights — Fair values were determined using the present value of future cash flows. Cash value of life insurance — The carrying amount approximates its fair value. Deposits — Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value of fixed-rate time deposits is estimated using discounted cash flows applying interest rates currently offered on similar time deposits. Securities sold under repurchase agreements — The fair value of securities sold under repurchase agreements with variable rates or due on demand is the amount payable at the reporting date. The fair value of securities sold under repurchase agreements with fixed terms is estimated using discounted cash flows with discount rates at interest rates currently offered for securities sold under repurchase agreements of similar remaining values. Subordinated notes — Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Fair value of borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made. Fair value of borrowed funds due on demand is the amount payable at the reporting date. Off-balance-sheet instruments — Fair value is based on quoted market prices of similar financial instruments where available. If a quoted market price is not available, fair value is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the company’s credit standing. Since this amount is immaterial, no amounts for fair value are presented. The carrying value and estimated fair value of financial instruments at June 30, 2019 and December 31, 2018 follows: Fair Value Carrying June 30, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 125,874 $ 125,874 $ — $ — $ 125,874 Securities held to maturity 39,537 — 40,552 — 40,552 Securities available for sale 120,083 — 119,683 400 120,083 Loans, net 1,407,022 — — 1,393,494 1,393,494 Other investments 4,517 — — 4,517 4,517 Mortgage servicing rights 3,085 — 3,085 — 3,085 Cash surrender value of life insurance 24,488 24,488 — — 24,488 Deposits $ 1,574,998 $ — $ — $ 1,560,172 $ 1,560,172 Securities sold under repurchase agreements 20,034 — 20,034 — 20,034 Subordinated notes 11,500 — 11,500 — 11,500 Fair Value Carrying December 31, 2018 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 107,743 $ 107,743 $ — $ — $ 107,743 Securities held to maturity 40,768 — 40,477 — 40,477 Securities available for sale 118,906 — 118,506 400 118,906 Loans, net 1,416,246 — — 1,400,538 1,400,538 Other investments, at cost 4,555 — — 4,555 4,555 Mortgage servicing rights 3,085 — 3,085 — 3,085 Cash surrender value of life insurance 24,178 24,178 — — 24,178 Financial liabilities: Deposits $ 1,557,167 $ — $ — $ 1,449,552 $ 1,449,552 Securities sold under repurchase agreements 31,489 — 31,489 — 31,489 Subordinated notes 11,500 — 11,500 — 11,500 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	6 Months Ended
	Jun. 30, 2019
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. 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 Plan shall not exceed, in the aggregate, 659,250. As of June 30, 2019 and December 31, 2018, 177,377 and 160,362 shares of Company stock have been awarded under the Plan, respectively. 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 six months ended June 30, 2019 and 2018, compensation expense of $0.3 million and $0.3 million, respectively, was recognized related to restricted stock awards. As of June 30, 2019, there was $1.9 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 3.15 years. The aggregate grant date fair value of restricted stock awards that vested during the six months ended June 30, 2019, was approximately $0.5 million. For the six months ended June 30, 2019 For the six months ended June 30, 2018 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of period 51,776 $ 34.27 53,619 $ 26.59 Granted 17,015 56.62 16,673 46.01 Vested (17,212) 30.54 (19,825) 24.36 Forfeited or cancelled (176) 22.90 — — Outstanding at end of period 51,403 $ 43.06 50,467 $ 33.88

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
LEASES
LEASES	NOTE 13 – LEASES In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016‑02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Subsequently, amendments ASU No. 2018‑01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018‑10, Codification Improvements to Topic 842, Leases; and ASU No. 2018‑11, Targeted Improvements were issued. ASC 842 establishes 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. The Company leases certain properties under operating leases that resulted in the recognition of ROU lease assets of approximately $1.7 million and corresponding lease liabilities of the same value on the Company’s Consolidated Balance Sheets. ASC 842 was effective on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company chose to use the effective date approach. As such, all periods presented after January 1, 2019 are under ASC 842 whereas periods presented prior to January 1, 2019 are in accordance with prior lease accounting of ASC 840. Financial information was not updated and the disclosures required under ASC 842 was not provided for dates and periods before January 1, 2019. ASC 842 provides a number of optional practical expedients in transition. The Company has elected the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the use of the hindsight, a practical expedient which permits the use of information available after lease inception to determine the lease term via the knowledge of renewal options exercised not available as of the leases inception. The practical expedient pertaining to land easements is not applicable to the Company. ASC 842 also requires certain accounting elections for ongoing application of ASC 842. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. However, since these non-lease items are subject to change, they are treated and disclosed as variable payments in the quantitative disclosures below. Consequently, ASC 842’s changed guidance on contract components will not significantly affect our financial reporting. Similarly, ASC 842’s narrowed definition of initial direct costs will not significantly affect financial reporting. Lessee Leases The 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. ASC 842 requires the use of the lease interest rate; however, this rate is typically not known. As an alternative, ASC 842 permits the use of an entity’s fully secured incremental borrowing rate. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement. Six-month period ended June 30, 2019 Amortization of ROU Assets - Operating Leases $ Interest on Lease Liabilities - Operating Leases Operating Lease Cost (Cost resulting from lease payments) New ROU Assets - Operating Leases Weighted Average Lease Term (Years) - Operating Leases Weighted Average Discount Rate - Operating Leases % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of June 30, 2019 is as follows: June 30, 2019 Operating lease payments due: Within one year $ 133 After one but within two years 139 After two but within three years 132 After three but within four years 93 After four years but within five years 85 After five years 3,453 Total undiscounted cash flows 4,035 Discount on cash flows (2,317) Total operating lease liabilities $ 1,718

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS As stated in Note 2, “Acquisitions,” effective July 12, 2019, the previously announced merger with Partnership was completed. At the effective time of the merger, each share of common stock of Partnership issued and outstanding was converted into the right to receive either 0.35 shares of Bank First common stock or cash in the amount of $17.30. The Company paid approximately $14,285,000 in cash and issued 534,659 shares of Bank First common stock for the issued and outstanding shares of Partnership common stock. The acquisition of Partnership was accounted for using the purchase method of accounting in accordance with ASC 805, Business Combinations. Assets acquired, liabilities assumed, and consideration exchanged were recorded at their respective acquisition date fair values. Determining the fair value of the assets and liabilities is a complicated process involving significant judgement regarding the methods and assumptions to be used. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values becomes available. The Company is still finalizing the fair value estimates, but the following table presents the initial estimates of the fair value of the assets acquired and liabilities assumed of Partnership as of July 12, 2019. As Recorded by Fair Value As Recorded by Partnership Adjustments the Company Cash and cash equivelants $ 4,511 $ $ 4,511 Investment securities 16,933 (512) a 16,421 Other investments 441 441 Gross loans 278,532 (5,908) b 272,624 Allowance for loan losses (2,253) 2,253 c — Net Loans 276,279 (3,655) 272,624 Premises and equipment, net 6,066 (2,940) d 3,126 Core deposit intangible — 5,400 e 5,400 Existing intangible assets 195 (195) f — Other assets 3,118 473 g 3,591 Total assets $ 307,543 $ (1,429) $ 306,114 Total deposits $ 268,653 $ 272 h $ 268,925 Subordinated debt 7,000 195 i 7,195 Other borrowings 9,800 (18) i 9,782 Other liabilities 690 16 j 706 Total liabilities 286,143 465 286,608 Net indentifiable assets acquired over liabilties assumed 21,400 (1,894) 19,506 Goodwill — 30,083 30,083 Net assets acquired over liabilities assumed $ 21,400 $ 28,189 $ 49,589 Consideration: Shares of common stock issued 534,659 Estimated value per share of Company's stock $ 66.03 Fair value of Company stock issued 35,304 Cash paid for shares and in lieu of fractional shares 14,285 Fair value of total consideration transferred $ 49,589 Explanation of fair value adjustments: a. Adjustment reflects fair value adjustments of the available-for-sale portfolio at acquisition date. b. Adjustment reflects fair value adjustments based on the Company's evaluation of the acquired loan portfolio. c. Adjustment reflects the elimination of Partnership's allowance for loan losses. d. Adjustment reflects the fair value adjustment of the acquired premises and equipment from Partnership's historical net cost basis. e. Adjustment reflects the recording of a core deposit intangible asset. f. Adjustment reflects removal of intangible assets from Partnership's balance sheet from a prior acquisition. g. Adjustment reflects write-off of prepaid assets recorded on Partnership's balance sheet that had no value to the Company and the establishment of a deferred tax asset as a result of the purchase accounting adjustments. h. Adjustment reflects the fair value adjustment to time deposits. i. Adjustment reflects the fair value adjustment to subordinated debt and other borrowings due to the current rate environment for these items compared to those in place when they were originally instituted. j. Adjustment to record an accrual for a severance agreement that was in place for Partnership prior to July 12, 2019.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE
Schedule of Earnings Per Common Share	A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution, for the three and six months ended June 30, 2019 and 2018, are presented below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income from operations $ 5,989 $ 6,401 $ 12,576 $ 13,463 Weighted average common shares outstanding 6,577,016 6,672,344 6,575,696 6,692,523 Effect of dilutive potential common shares 98,778 — 66,526 — Diluted weighted average common shares outstanding 6,675,794 6,672,344 6,642,222 6,692,523 Earnings per share - basic $ 0.91 $ 0.96 $ 1.91 $ 2.01 Earnings per share - diluted $ 0.90 $ 0.96 $ 1.89 $ 2.01

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2019
SECURITIES
Schedule of securities available for sale	The Company’s securities available for sale as of June 30, 2019 and December 31, 2018 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2019 Obligations of states and political subdivisions $ 49,030 $ 2,155 $ (4) $ 51,181 Mortgage-backed securities 50,610 1,446 (25) 52,031 Corporate notes 16,761 211 (101) 16,871 Total available for sale securities $ 116,401 $ 3,812 $ (130) $ 120,083 December 31, 2018 Obligations of states and political subdivisions $ 51,292 $ 709 $ (108) $ 51,893 Mortgage-backed securities 51,519 66 (1,016) 50,569 Corporate notes 16,708 — (264) 16,444 Total available for sale securities $ 119,519 $ 775 $ (1,388) $ 118,906
Schedule of securities held to maturity	The Company’s securities held to maturity as of June 30, 2019 and December 31, 2018 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2019 U.S. Treasury securities $ 28,978 $ 1,004 $ (2) $ 29,980 Obligations of states and political subdivisions 10,559 13 — 10,572 Total held to maturity securities $ 39,537 $ 1,017 $ (2) $ 40,552 December 31, 2018 U.S. Treasury securities $ 28,975 $ 92 $ (389) $ 28,678 Obligations of states and political subdivisions 11,793 6 — 11,799 Total held to maturity securities $ 40,768 $ 98 $ (389) $ 40,477
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 June 30, 2019 - Available for Sale Obligations of states and political subdivisions $ — $ — $ 1,646 $ (4) $ 1,646 $ (4) Mortgage-backed securities — — 3,460 (25) 3,460 (25) Corporate notes — — 7,785 (101) 7,785 (101) Totals $ — $ — $ 12,891 $ (130) $ 12,891 $ (130) June 30, 2019 - Held to Maturity U.S. Treasury securities $ — $ — $ 1,494 $ (2) $ 1,494 $ (2) December 31, 2018 - Available for Sale Obligations of states and political subdivisions $ 10,024 $ (64) $ 4,132 $ (44) $ 14,156 $ (108) Mortgage-backed securities 13,352 (183) 31,718 (833) 45,070 (1,016) Corporate notes — — 12,531 (264) 12,531 (264) Totals $ 23,376 $ (247) $ 48,381 $ (1,141) $ 71,757 $ (1,388) December 31, 2018 - Held to Maturity U.S. Treasury securities $ 8,422 $ (46) $ 11,580 $ (343) $ 20,002 $ (389)
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 June 30, 2019. 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 $ 2,533 $ 2,573 $ 2,324 $ 2,322 Due after one year through five years 23,122 23,421 14,638 14,890 Due after five years through ten years 9,827 10,311 19,666 20,431 Due after ten years 30,309 31,747 2,909 2,909 Subtotal 65,791 68,052 39,537 40,552 Mortgage-backed securities 50,610 52,031 — — Total $ 116,401 $ 120,083 $ 39,537 $ 40,552
Schedule of proceeds from sale of securities available for sale	The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses for the six months ended June 30, 2019 and 2018: 2019 2018 Proceeds from sales of securities $ 748 $ 3,326 Gross gains on sales 23 29 Gross losses on sales — 73

LOANS, ALLOWANCE FOR LOAN LOS_2

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Tables)	6 Months Ended
	Jun. 30, 2019
Financing Receivable, Recorded Investment [Line Items]
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 June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Commercial/industrial $ 271,838 $ 297,576 Commercial real estate - owner occupied 415,451 416,097 Commercial real estate - non-owner occupied 255,072 252,717 Construction and development 73,522 60,927 Residential 1‑4 family 370,261 368,673 Consumer 28,138 26,854 Other 5,493 6,369 Subtotals 1,419,775 1,429,213 ALL (12,170) (12,248) Loans, net of ALL 1,407,605 1,416,965 Deferred loan fees and costs (583) (719) Loans, net $ 1,407,022 $ 1,416,246
Schedule of ALL by loan type	The ALL by loan type as of June 30, 2019 and 2018 is summarized as follows: Commercial Commercial Real Estate - Construction Commercial / Real Estate - Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total ALL - January 1, 2019 $ 3,021 $ 3,459 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 291 $ 12,248 Charge-offs (594) (659) (54) — (11) (11) (8) — (1,337) Recoveries 1 2 1 — 122 4 4 — 134 Provision (285) 2,631 (99) (314) (556) (2) 1 (251) 1,125 ALL - June 30, 2019 40 ALL ending balance individually evaluated for impairment — 2,285 — — — — — — 2,285 ALL ending balance collectively evaluated for impairment $ 2,143 $ 3,148 $ 1,948 $ 411 $ 2,027 $ 139 $ 29 $ 40 $ 9,885 Loans outstanding - June 30, 2019 $ 271,838 $ 415,451 $ 255,072 $ 73,522 $ 370,261 $ 28,138 $ 5,493 $ — $ 1,419,775 Loans ending balance individually evaluated for impairment — 9,992 — — 176 — — — 10,168 Loans ending balance collectively evaluated for impairment $ 271,838 $ 405,459 $ 255,072 $ 73,522 $ 370,085 $ 28,138 $ 5,493 $ — $ 1,409,607 Commercial Commercial Real Estate - Construction Commercial / Real Estate – Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total ALL - January 1, 2018 $ 2,362 $ 2,855 $ 1,987 $ 945 $ 2,728 $ 191 $ 23 $ 521 $ 11,612 Charge-offs — (17) (1) (83) (81) (3) (23) — (208) Recoveries 1 58 2 — 188 3 6 — 258 Provision 1,042 385 177 16 (33) 57 43 (302) 1,385 ALL - June 30, 2018 3,405 3,281 2,165 878 2,802 248 49 219 13,047 ALL ending balance individually evaluated for impairment — 498 — — 160 — — — 658 ALL ending balance collectively evaluated for impairment $ 3,405 $ 2,783 $ 2,165 $ 878 $ 2,642 $ 248 $ 49 $ 219 $ 12,389 Loans outstanding - June 30, 2018 $ 314,087 $ 415,097 $ 226,677 $ 67,558 $ 365,502 $ 40,226 $ 5,714 $ — $ 1,434,861 Loans ending balance individually evaluated for impairment — 652 — — 709 — — — 1,361 Loans ending balance collectively evaluated for impairment $ 314,087 $ 414,445 $ 226,677 $ 67,558 $ 364,793 $ 40,226 $ 5,714 $ — $ 1,433,500
Schedule of past due loans	The Company’s past due loans as of June 30, 2019 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ — $ 589 $ 665 $ 1,254 Commercial real estate - owner occupied 348 2,567 11,914 14,829 Commercial real estate - non-owner occupied — — — — Construction and development 919 — — 919 Residential 1‑4 family 744 276 1,028 2,048 Consumer 61 1 4 66 Other — — — — $ 2,072 $ 3,433 $ 13,611 $ 19,116 The Company’s past due loans as of December 31, 2018 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 76 $ — $ 8,001 $ 8,077 Commercial real estate - owner occupied 59 — 10,311 10,370 Commercial real estate - non-owner occupied — 58 233 291 Construction and development — — — — Residential 1‑4 family 275 362 1,549 2,186 Consumer 9 3 5 17 Other — — — — $ 419 $ 423 $ 20,099 $ 20,941
Schedule of loans by risk rating	The breakdown of loans by risk rating as of June 30, 2019 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 255,273 $ 6,127 $ 10,438 $ — $ 271,838 Commercial real estate - owner occupied 381,034 4,237 30,180 — 415,451 Commercial real estate - non-owner occupied 253,020 1,213 839 — 255,072 Construction and development 73,522 — — — 73,522 Residential 1‑4 family 368,774 — 1,487 — 370,261 Consumer 28,135 — 3 — 28,138 Other 5,493 — — — 5,493 $ 1,365,251 $ 11,577 $ 42,947 $ — $ 1,419,775 The breakdown of loans by risk rating as of December 31, 2018 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 277,993 $ 7,309 $ 12,274 $ — $ 297,576 Commercial real estate - owner occupied 375,614 5,670 34,789 24 416,097 Commercial real estate - non-owner occupied 249,625 — 3,092 — 252,717 Construction and development 60,866 — 61 — 60,927 Residential 1‑4 family 364,289 664 3,718 2 368,673 Consumer 26,835 — 18 1 26,854 Other 6,369 — — — 6,369 $ 1,361,591 $ 13,643 $ 53,952 $ 27 $ 1,429,213
Schedule of impaired loans individually	A summary of impaired loans individually evaluated as of June 30, 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 Unallocated Total With an allowance recorded: Recorded investment $ — $ 6,695 $ — $ — $ — $ — $ — $ — $ 6,695 Unpaid principal balance — 6,695 — — — — — — 6,695 Related allowance — 2,285 — — — — — — 2,285 With no related allowance recorded: Recorded investment $ — $ 3,297 $ — $ — $ 176 $ — $ — $ — $ 3,473 Unpaid principal balance — 3,297 — — 176 — — — 3,473 Related allowance — — — — — — — — — Total: Recorded investment $ — $ 9,992 $ — $ — $ 176 $ — $ — $ — $ 10,168 Unpaid principal balance — 9,992 — — 176 — — — 10,168 Related allowance — 2,285 — — — — — — 2,285 Average recorded investment $ 2,834 $ 8,894 $ — $ — $ 439 $ — $ — $ — $ 12,167 A summary of impaired loans individually evaluated as of December 31, 2018 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 $ 5,667 $ 2,099 $ — $ — $ 523 $ — $ — $ — $ 8,289 Unpaid principal balance 5,667 2,099 — — 523 — — — 8,289 Related allowance 566 353 — — 160 — — — 1,079 With no related allowance recorded: Recorded investment $ — $ 5,697 $ — $ — $ 179 $ — $ — $ — $ 5,876 Unpaid principal balance — 5,697 — — 179 — — — 5,876 Related allowance — — — — — — — — — Total: Recorded investment $ 5,667 $ 7,796 $ — $ — $ 702 $ — $ — $ — $ 14,165 Unpaid principal balance 5,667 7,796 — — 702 — — — 14,165 Related allowance 566 353 — — 160 — — — 1,079 Average recorded investment $ 2,834 $ 4,036 $ — $ — $ 706 $ — $ — $ — $ 7,576
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 periods ended June 30, 2019, and December 31, 2018: June 30, 2019 December 31, 2018 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 318 $ 745 $ 583 $ 800 Acquired balance, net — — — — Reclassifications between accretable and non-accretable 203 (203) 55 (55) Accretion to loan interest income (324) — (320) — Disposals of loans — — — — Balance at end of period $ 197 $ 542 $ 318 $ 745
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Recorded Investment [Line Items]
Schedule of impaired loans individually	The following table presents loans acquired with deteriorated credit quality as of June 30, 2019 and December 31, 2018. 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. June 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 417 $ 420 $ 555 $ 701 Commercial real estate - owner occupied 1,318 1,932 1,558 2,069 Commercial real estate - non-owner occupied — — 233 475 Construction and development 226 250 171 171 Residential 1‑4 family 1,072 1,170 1,664 1,828 Consumer — — — — Other — — — — $ 3,033 $ 3,772 $ 4,181 $ 5,244

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2019
MORTGAGE SERVICING RIGHTS
Schedule of analysis of activity in the MSR asset	Following is an analysis of activity in the MSR asset: Six Months Ended Year Ended June 30, 2019 December 31, 2018 Fair value at beginning of year $ 3,085 $ 2,610 Servicing asset additions 209 356 Loan payments and payoffs (246) (475) Changes in valuation inputs and assumptions used in the valuation model 37 594 Amount recognized through earnings — 475 Fair value at end of period $ 3,085 $ 3,085 Unpaid principal balance of loans serviced for others $ 319,173 $ 316,480 Mortgage servicing rights as a percent of loans serviced for others 0.97 0.97

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2019
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 Minimum Capital Capitalized Under For Capital Adeqaucy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2019 Total capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Tier 1 capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Common Equity Tier 1 capital (to risk-weighted assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % Tier 1 capital (to average assets): Company $ % NA NA NA NA NA NA Bank $ % $ % $ % $ % December 31, 2018 Total capital (to risk-weighted assets): Company $ 181,201 11.35 % NA NA NA NA NA NA Bank $ 178,668 11.21 % $ 127,497 8.00 % $ 157,459 9.88 % $ 159,372 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 157,453 9.86 % NA NA NA NA NA NA Bank $ 166,420 10.44 % $ 95,623 6.00 % $ 125,585 7.88 % $ 127,497 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 157,453 9.86 % NA NA NA NA NA NA Bank $ 166,420 10.44 % $ 71,717 4.50 % $ 101,679 6.38 % $ 103,592 6.50 % Tier 1 capital (to average assets): Company $ 157,453 9.06 % NA NA NA NA NA NA Bank $ 166,420 9.59 % $ 69,410 4.00 % $ 69,410 4.00 % $ 86,762 5.00 %

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2019
COMMITMENTS
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]	The following commitments were outstanding: Notional Amount June 30, 2019 December 31, 2018 Commitments to extend credit: Fixed $ 44,412 $ 57,911 Variable 251,085 268,541 Credit card arrangements 8,064 7,119 Letters of credit 23,962 25,261

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
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) June 30, 2019 Assets Securities available for sale Obligations of states and political subdivisions $ 51,181 $ — $ 50,781 $ 400 Mortgage-backed securities 52,031 — 52,031 — Corporate notes 16,871 — 16,871 — Mortgage servicing rights 3,085 — 3,085 — December 31, 2018 Assets Securities available for sale Obligations of states and political subdivisions $ 51,893 $ — $ 51,493 $ 400 Mortgage-backed securities 50,569 — 50,569 — Corporate notes 16,444 — 16,444 — Mortgage servicing rights 3,085 — 3,085 —
Schedule of fair value of assets measured on a recurring basis using significant unobservable inputs	Fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) are as follows: June 30, 2019 December 31, 2018 Total securities at beginning of period $ 400 $ 500 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (100) Transfer in and/or out of level 3 — — Total securities at end of period $ 400 $ 400
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) June 30, 2019 Other real estate owned $ 3,543 $ — $ — $ 3,543 Impaired Loans, net of impairment reserve 13,008 — — 13,008 $ 16,551 $ — $ — $ 16,551 December 31, 2018 Other real estate owned $ 3,592 $ — $ — $ 3,592 Impaired Loans, net of impairment reserve 20,872 — — 20,872 $ 24,464 $ — $ — $ 24,464
Schedule of fair value measurement on inputs and valuation techniques	The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Valuation Unobservable Range of Average Technique Inputs Discounts Discount As of June 30, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 40% % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% % As of December 31, 2018 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 40% 18.6 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 9.3 %
Schedule of carrying value and estimated fair value of financial instruments	The carrying value and estimated fair value of financial instruments at June 30, 2019 and December 31, 2018 follows: Fair Value Carrying June 30, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 125,874 $ 125,874 $ — $ — $ 125,874 Securities held to maturity 39,537 — 40,552 — 40,552 Securities available for sale 120,083 — 119,683 400 120,083 Loans, net 1,407,022 — — 1,393,494 1,393,494 Other investments 4,517 — — 4,517 4,517 Mortgage servicing rights 3,085 — 3,085 — 3,085 Cash surrender value of life insurance 24,488 24,488 — — 24,488 Deposits $ 1,574,998 $ — $ — $ 1,560,172 $ 1,560,172 Securities sold under repurchase agreements 20,034 — 20,034 — 20,034 Subordinated notes 11,500 — 11,500 — 11,500 Fair Value Carrying December 31, 2018 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 107,743 $ 107,743 $ — $ — $ 107,743 Securities held to maturity 40,768 — 40,477 — 40,477 Securities available for sale 118,906 — 118,506 400 118,906 Loans, net 1,416,246 — — 1,400,538 1,400,538 Other investments, at cost 4,555 — — 4,555 4,555 Mortgage servicing rights 3,085 — 3,085 — 3,085 Cash surrender value of life insurance 24,178 24,178 — — 24,178 Financial liabilities: Deposits $ 1,557,167 $ — $ — $ 1,449,552 $ 1,449,552 Securities sold under repurchase agreements 31,489 — 31,489 — 31,489 Subordinated notes 11,500 — 11,500 — 11,500

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2019
STOCK BASED COMPENSATION
Schedule of share-based compensation, restricted stock and restricted stock units activity	For the six months ended June 30, 2019 For the six months ended June 30, 2018 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of period 51,776 $ 34.27 53,619 $ 26.59 Granted 17,015 56.62 16,673 46.01 Vested (17,212) 30.54 (19,825) 24.36 Forfeited or cancelled (176) 22.90 — — Outstanding at end of period 51,403 $ 43.06 50,467 $ 33.88

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
LEASES
Schedule of lease cost and other information related to leases	Six-month period ended June 30, 2019 Amortization of ROU Assets - Operating Leases $ Interest on Lease Liabilities - Operating Leases Operating Lease Cost (Cost resulting from lease payments) New ROU Assets - Operating Leases Weighted Average Lease Term (Years) - Operating Leases Weighted Average Discount Rate - Operating Leases %
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 June 30, 2019 is as follows: June 30, 2019 Operating lease payments due: Within one year $ 133 After one but within two years 139 After two but within three years 132 After three but within four years 93 After four years but within five years 85 After five years 3,453 Total undiscounted cash flows 4,035 Discount on cash flows (2,317) Total operating lease liabilities $ 1,718

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	6 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENTS
Summary of initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred	As Recorded by Fair Value As Recorded by Partnership Adjustments the Company Cash and cash equivelants $ 4,511 $ $ 4,511 Investment securities 16,933 (512) a 16,421 Other investments 441 441 Gross loans 278,532 (5,908) b 272,624 Allowance for loan losses (2,253) 2,253 c — Net Loans 276,279 (3,655) 272,624 Premises and equipment, net 6,066 (2,940) d 3,126 Core deposit intangible — 5,400 e 5,400 Existing intangible assets 195 (195) f — Other assets 3,118 473 g 3,591 Total assets $ 307,543 $ (1,429) $ 306,114 Total deposits $ 268,653 $ 272 h $ 268,925 Subordinated debt 7,000 195 i 7,195 Other borrowings 9,800 (18) i 9,782 Other liabilities 690 16 j 706 Total liabilities 286,143 465 286,608 Net indentifiable assets acquired over liabilties assumed 21,400 (1,894) 19,506 Goodwill — 30,083 30,083 Net assets acquired over liabilities assumed $ 21,400 $ 28,189 $ 49,589
Summary of fair value of total consideration transferred	Consideration: Shares of common stock issued 534,659 Estimated value per share of Company's stock $ 66.03 Fair value of Company stock issued 35,304 Cash paid for shares and in lieu of fractional shares 14,285 Fair value of total consideration transferred $ 49,589

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	Jun. 30, 2019USD ($)
BASIS OF PRESENTATION
Operating Lease, Right-of-Use Asset	$ 1,744
Operating Lease, Liability	$ 1,718

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands	1 Months Ended
	Jan. 22, 2019USD ($)item	Oct. 27, 2017USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Business Combination, Consideration Transferred		$ 78,100
Business Combination Consideration Transferred In Cash Percentage		70.00%
Business Combination Consideration Transferred Common Stock Percentage		30.00%
Assets			$ 1,806,467	$ 1,793,165
Loans and Leases Receivable, Net Amount			1,407,022	1,416,246
Deposits			1,574,998	1,557,167
Goodwill			$ 15,024	$ 15,024
Partnership Community Bancshares
Business Combination Contingent Consideration Percentage Of Equity Issued	65.00%
Business Combination Contingent Consideration Percentage Of Cash	35.00%
Business Combination, Contingent Consideration, Liability	$ 49,600
Assets acquired at fair value	$ 306,100
Number of branches added | item	4
Loans acquired	$ 272,600
Deposits	268,900
Goodwill	30,100
Partnership Community Bancshares | Core Deposits
Intangible assets	$ 5,400

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
EARNINGS PER SHARE
Net income from operations	$ 5,989	$ 6,587	$ 6,401	$ 7,062	$ 12,576	$ 13,463
Weighted average common shares outstanding	6,577,016		6,672,344		6,575,696	6,692,523
Effect of dilutive potential common shares	98,778		0		66,526	0
Diluted weighted average common shares outstanding	6,675,794		6,672,344		6,642,222	6,692,523
Earnings per share - basic	$ 0.91		$ 0.96		$ 1.91	$ 2.01
Earnings per share - diluted	$ 0.90		$ 0.96		$ 1.89	$ 2.01

SECURITIES - Securities availab

SECURITIES - Securities available for sale (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	$ 116,401	$ 119,519
Available for sale securities, Gross Unrealized Gains	3,812	775
Available for sale securities, Gross Unrealized Losses	(130)	(1,388)
Available for sale securities, Estimated Fair Value	120,083	118,906
Corporate notes [Member]
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	16,761	16,708
Available for sale securities, Gross Unrealized Gains	211	0
Available for sale securities, Gross Unrealized Losses	(101)	(264)
Available for sale securities, Estimated Fair Value	16,871	16,444
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	49,030	51,292
Available for sale securities, Gross Unrealized Gains	2,155	709
Available for sale securities, Gross Unrealized Losses	(4)	(108)
Available for sale securities, Estimated Fair Value	51,181	51,893
Mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available for sale securities, Amortized Cost	50,610	51,519
Available for sale securities, Gross Unrealized Gains	1,446	66
Available for sale securities, Gross Unrealized Losses	(25)	(1,016)
Available for sale securities, Estimated Fair Value	$ 52,031	$ 50,569

SECURITIES - Securities held to

SECURITIES - Securities held to maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost	$ 39,537	$ 40,768
Held to maturity securities, Gross Unrealized Gains	1,017	98
Held to maturity securities, Gross Unrealized Losses	(2)	(389)
Held to Maturity Total, Estimated Fair Value	40,552	40,477
U.S. Treasury securities [Member]
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost	28,978	28,975
Held to maturity securities, Gross Unrealized Gains	1,004	92
Held to maturity securities, Gross Unrealized Losses	(2)	(389)
Held to Maturity Total, Estimated Fair Value	29,980	28,678
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Held to maturity securities, Amortized Cost	10,559	11,793
Held to maturity securities, Gross Unrealized Gains	13	6
Held to maturity securities, Gross Unrealized Losses	0	0
Held to Maturity Total, Estimated Fair Value	$ 10,572	$ 11,799

SECURITIES - Fair value and gro

SECURITIES - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Available for Sale, Less Than 12 Months Fair Value	$ 0	$ 23,376
Available for Sale, Greater Than 12 Months Fair Value	12,891	48,381
Available for Sale, Total Fair Value	12,891
Held to Maturity, Total Fair Value		71,757
Available for Sale, Total Unrealized Losses	(130)
Held to Maturity, Less Than 12 Months Unrealized Losses	0	(247)
Held to Maturity, Greater Than 12 Months Unrealized Losses	(130)	(1,141)
Held to Maturity, Total Unrealized Losses		(1,388)
Corporate notes [Member]
Marketable Securities [Line Items]
Available for Sale, Less Than 12 Months Fair Value	0	0
Available for Sale, Greater Than 12 Months Fair Value	7,785	12,531
Available for Sale, Total Fair Value	7,785	12,531
Available for Sale, Less Than 12 Months Unrealized Losses	0	0
Available for Sale, Greater Than 12 Months Unrealized Losses	(101)	(264)
Available for Sale, Total Unrealized Losses	(101)	(264)
U.S. Treasury securities [Member]
Marketable Securities [Line Items]
Held to Maturity, Less Than 12 Months Fair Value	0	8,422
Held to Maturity, Greater Than 12 Months Fair Value	1,494	11,580
Held to Maturity, Total Fair Value	1,494	20,002
Held to Maturity, Less Than 12 Months Unrealized Losses	0	(46)
Held to Maturity, Greater Than 12 Months Unrealized Losses	(2)	(343)
Held to Maturity, Total Unrealized Losses	(2)	(389)
Obligations of states and political subdivisions [Member]
Marketable Securities [Line Items]
Available for Sale, Less Than 12 Months Fair Value	0	10,024
Available for Sale, Greater Than 12 Months Fair Value	1,646	4,132
Available for Sale, Total Fair Value	1,646
Held to Maturity, Total Fair Value		14,156
Available for Sale, Less Than 12 Months Unrealized Losses	0	(64)
Available for Sale, Greater Than 12 Months Unrealized Losses	(4)	(44)
Available for Sale, Total Unrealized Losses	(4)
Held to Maturity, Total Unrealized Losses		(108)
Mortgage-backed securities [Member]
Marketable Securities [Line Items]
Available for Sale, Less Than 12 Months Fair Value	0	13,352
Available for Sale, Greater Than 12 Months Fair Value	3,460	31,718
Available for Sale, Total Fair Value	3,460	45,070
Available for Sale, Less Than 12 Months Unrealized Losses	0	(183)
Available for Sale, Greater Than 12 Months Unrealized Losses	(25)	(833)
Available for Sale, Total Unrealized Losses	$ (25)	$ (1,016)

SECURITIES - Summary of amortiz

SECURITIES - Summary of amortized cost and estimated fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
SECURITIES
Available for Sale Due in one year or less, Amortized Cost	$ 2,533
Available for Sale Due after one year through five years, Amortized Cost	23,122
Available for Sale Due after five years through ten years, Amortized Cost	9,827
Available for Sale Due after ten years, Amortized Cost	30,309
Available for Sale Subtotal, Amortized Cost	65,791
Available for Sale Mortgage-backed securities, Amortized Cost	50,610
Available for sale securities, Amortized Cost	116,401	$ 119,519
Available for Sale Due in one year or less, Estimated Fair Value	2,573
Available for Sale Due after one year through five years, Estimated Fair Value	23,421
Available for Sale Due after five years through ten years, Estimated Fair Value	10,311
Available for Sale Due after ten years, Estimated Fair Value	31,747
Available for Sale Subtotal, Estimated Fair Value	68,052
Available for Sale Mortgage-backed securities, Estimated Fair Value	52,031
Available for sale securities, Estimated Fair Value	120,083	118,906
Held to Maturity Due in one year or less, Amortized Cost	2,324
Held to Maturity Due after one year through five years, Amortized Cost	14,638
Held to Maturity Due after five years through ten years, Amortized Cost	19,666
Held to Maturity Due after ten years, Amortized Cost	2,909
Held to Maturity Subtotal, Amortized Cost	39,537
Held to Maturity Mortgage-backed securities, Amortized Cost	0
Held to maturity securities, Amortized Cost	39,537	40,768
Held to Maturity Due in one year or less, Estimated Fair Value	2,322
Held to Maturity Due after one year through five years, Estimated Fair Value	14,890
Held to Maturity Due after five years through ten years, Estimated Fair Value	20,431
Held to Maturity Due after ten years, Estimated Fair Value	2,909
Held to Maturity Subtotal, Estimated Fair Value	40,552
Held to Maturity Mortgage-backed securities, Estimated Fair Value	0
Held to Maturity Total, Estimated Fair Value	$ 40,552	$ 40,477

SECURITIES - Summary of proceed

SECURITIES - Summary of proceeds from sales securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
SECURITIES
Proceeds from sales of securities	$ 748	$ 3,326
Gross gains on sales	23	29
Gross losses on sales	$ 0	$ 73

LOANS, ALLOWANCE FOR LOAN LOS_3

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans and Leases Receivable, Gross	$ 1,419,775	$ 1,429,213	$ 1,434,861
ALL	(12,170)	(12,248)	(13,047)	$ (11,612)
Loans, net of ALL	1,407,605	1,416,965
Deferred loan fees and costs	(583)	(719)
Loans, net	1,407,022	1,416,246
Other
Loans and Leases Receivable, Gross	5,493	6,369	5,714
ALL	(29)	(32)	(49)	(23)
Construction and development
Loans and Leases Receivable, Gross	73,522	60,927	67,558
ALL	(411)	(725)	(878)	(945)
Commercial/Industrial
Loans and Leases Receivable, Gross	271,838	297,576	314,087
ALL	(2,143)	(3,021)	(3,405)	(2,362)
Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	415,451	416,097	415,097
ALL	(5,433)	(3,459)	(3,281)	(2,855)
Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	255,072	252,717	226,677
ALL	(1,948)	(2,100)	(2,165)	(1,987)
Residential 1-4 family
Loans and Leases Receivable, Gross	370,261	368,673	365,502
ALL	(2,027)	(2,472)	(2,802)	(2,728)
Consumer
Loans and Leases Receivable, Gross	28,138	26,854	40,226
ALL	$ (139)	$ (148)	$ (248)	$ (191)

LOANS, ALLOWANCE FOR LOAN LOS_4

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Allowance for Credit Losses on Financial Receivables (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
ALL - January 1, 2019	$ 12,248	$ 11,612
Charge-offs	(1,337)	(208)
Recoveries	134	258
Provision	1,125	1,385
ALL - June 30, 2019	12,170	13,047
ALL ending balance individually evaluated for impairment	2,285	658
ALL ending balance collectively evaluated for impairment	9,885	12,389
Loans outstanding - March 31, 2019	1,419,775	1,434,861	$ 1,429,213
Loans ending balance individually evaluated for impairment	10,168	1,361
Loans ending balance collectively evaluated for impairment	1,409,607	1,433,500
Other
ALL - January 1, 2019	32	23
Charge-offs	(8)	(23)
Recoveries	4	6
Provision	1	43
ALL - June 30, 2019	29	49
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	29	49
Loans outstanding - March 31, 2019	5,493	5,714	6,369
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	5,493	5,714
Construction and development
ALL - January 1, 2019	725	945
Charge-offs	0	(83)
Recoveries	0	0
Provision	(314)	16
ALL - June 30, 2019	411	878
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	411	878
Loans outstanding - March 31, 2019	73,522	67,558	60,927
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	73,522	67,558
Commercial/Industrial
ALL - January 1, 2019	3,021	2,362
Charge-offs	(594)	0
Recoveries	1	1
Provision	(285)	1,042
ALL - June 30, 2019	2,143	3,405
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	2,143	3,405
Loans outstanding - March 31, 2019	271,838	314,087	297,576
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	271,838	314,087
Commercial Real Estate-Owner Occupied
ALL - January 1, 2019	3,459	2,855
Charge-offs	(659)	(17)
Recoveries	2	58
Provision	2,631	385
ALL - June 30, 2019	5,433	3,281
ALL ending balance individually evaluated for impairment	2,285	498
ALL ending balance collectively evaluated for impairment	3,148	2,783
Loans outstanding - March 31, 2019	415,451	415,097	416,097
Loans ending balance individually evaluated for impairment	9,992	652
Loans ending balance collectively evaluated for impairment	405,459	414,445
Commercial Real Estate-Non-Owner Occupied
ALL - January 1, 2019	2,100	1,987
Charge-offs	(54)	(1)
Recoveries	1	2
Provision	(99)	177
ALL - June 30, 2019	1,948	2,165
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	1,948	2,165
Loans outstanding - March 31, 2019	255,072	226,677	252,717
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	255,072	226,677
Residential 1-4 family
ALL - January 1, 2019	2,472	2,728
Charge-offs	(11)	(81)
Recoveries	122	188
Provision	(556)	(33)
ALL - June 30, 2019	2,027	2,802
ALL ending balance individually evaluated for impairment	0	160
ALL ending balance collectively evaluated for impairment	2,027	2,642
Loans outstanding - March 31, 2019	370,261	365,502	368,673
Loans ending balance individually evaluated for impairment	176	709
Loans ending balance collectively evaluated for impairment	370,085	364,793
Consumer
ALL - January 1, 2019	148	191
Charge-offs	(11)	(3)
Recoveries	4	3
Provision	(2)	57
ALL - June 30, 2019	139	248
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	139	248
Loans outstanding - March 31, 2019	28,138	40,226	$ 26,854
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	28,138	40,226
Unallocated
ALL - January 1, 2019	291	521
Charge-offs	0	0
Recoveries	0	0
Provision	(251)	(302)
ALL - June 30, 2019	40	219
ALL ending balance individually evaluated for impairment	0	0
ALL ending balance collectively evaluated for impairment	40	219
Loans outstanding - March 31, 2019	0	0
Loans ending balance individually evaluated for impairment	0	0
Loans ending balance collectively evaluated for impairment	$ 0	$ 0

LOANS, ALLOWANCE FOR LOAN LOS_5

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Past Due Financial Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 19,116	$ 20,941
Financing Receivable, Recorded Investment, Nonaccrual Status	13,611	20,099
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	919	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,254	8,077
Financing Receivable, Recorded Investment, Nonaccrual Status	665	8,001
Commercial Real Estate-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	14,829	10,370
Financing Receivable, Recorded Investment, Nonaccrual Status	11,914	10,311
Commercial Real Estate-Non-Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	291
Financing Receivable, Recorded Investment, Nonaccrual Status	0	233
Residential 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	2,048	2,186
Financing Receivable, Recorded Investment, Nonaccrual Status	1,028	1,549
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	66	17
Financing Receivable, Recorded Investment, Nonaccrual Status	4	5
30-89 Days Past Due Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	2,072	419
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	919	0
30-89 Days Past Due Accruing | Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	76
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	348	59
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 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	744	275
30-89 Days Past Due Accruing | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	61	9
90 Days Past Due Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,433	423
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	0
90 Days Past Due Accruing | Commercial/Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	589	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	2,567	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	58
90 Days Past Due Accruing | Residential 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	276	362
90 Days Past Due Accruing | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 1	$ 3

LOANS, ALLOWANCE FOR LOAN LOS_6

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Loans and Leases Receivable, Gross	$ 1,419,775	$ 1,429,213	$ 1,434,861
Other
Loans and Leases Receivable, Gross	5,493	6,369	5,714
Construction and development
Loans and Leases Receivable, Gross	73,522	60,927	67,558
Commercial/Industrial
Loans and Leases Receivable, Gross	271,838	297,576	314,087
Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	415,451	416,097	415,097
Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	255,072	252,717	226,677
Residential 1-4 family
Loans and Leases Receivable, Gross	370,261	368,673	365,502
Consumer
Loans and Leases Receivable, Gross	28,138	26,854	$ 40,226
Pass (1-5)
Loans and Leases Receivable, Gross	1,365,251	1,361,591
Pass (1-5) | Other
Loans and Leases Receivable, Gross	5,493	6,369
Pass (1-5) | Construction and development
Loans and Leases Receivable, Gross	73,522	60,866
Pass (1-5) | Commercial/Industrial
Loans and Leases Receivable, Gross	255,273	277,993
Pass (1-5) | Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	381,034	375,614
Pass (1-5) | Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	253,020	249,625
Pass (1-5) | Residential 1-4 family
Loans and Leases Receivable, Gross	368,774	364,289
Pass (1-5) | Consumer
Loans and Leases Receivable, Gross	28,135	26,835
Pass 6
Loans and Leases Receivable, Gross	11,577	13,643
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	6,127	7,309
Pass 6 | Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	4,237	5,670
Pass 6 | Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	1,213	0
Pass 6 | Residential 1-4 family
Loans and Leases Receivable, Gross	0	664
Pass 6 | Consumer
Loans and Leases Receivable, Gross	0	0
Pass 7
Loans and Leases Receivable, Gross	42,947	53,952
Pass 7 | Other
Loans and Leases Receivable, Gross	0	0
Pass 7 | Construction and development
Loans and Leases Receivable, Gross	0	61
Pass 7 | Commercial/Industrial
Loans and Leases Receivable, Gross	10,438	12,274
Pass 7 | Commercial Real Estate-Owner Occupied
Loans and Leases Receivable, Gross	30,180	34,789
Pass 7 | Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	839	3,092
Pass 7 | Residential 1-4 family
Loans and Leases Receivable, Gross	1,487	3,718
Pass 7 | Consumer
Loans and Leases Receivable, Gross	3	18
Pass 8
Loans and Leases Receivable, Gross	0	27
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	24
Pass 8 | Commercial Real Estate-Non-Owner Occupied
Loans and Leases Receivable, Gross	0	0
Pass 8 | Residential 1-4 family
Loans and Leases Receivable, Gross	0	2
Pass 8 | Consumer
Loans and Leases Receivable, Gross	$ 0	$ 1

LOANS, ALLOWANCE FOR LOAN LOS_7

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Impaired Financial Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
With an allowance recorded:
Recorded investment	$ 6,695	$ 8,289
Unpaid principal balance	6,695	8,289
Related allowance	2,285	1,079
With no related allowance recorded:
Recorded investment	3,473	5,876
Unpaid principal balance	3,473	5,876
Related allowance	0	0
Total:
Recorded investment	10,168	14,165
Unpaid principal balance	10,168	14,165
Related allowance	2,285	1,079
Average recorded investment	12,167	7,576
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	0	5,667
Unpaid principal balance	0	5,667
Related allowance	0	566
With no related allowance recorded:
Recorded investment	0	0
Unpaid principal balance	0	0
Related allowance	0	0
Total:
Recorded investment	0	5,667
Unpaid principal balance	0	5,667
Related allowance	0	566
Average recorded investment	2,834	2,834
Commercial Real Estate-Owner Occupied
With an allowance recorded:
Recorded investment	6,695	2,099
Unpaid principal balance	6,695	2,099
Related allowance	2,285	353
With no related allowance recorded:
Recorded investment	3,297	5,697
Unpaid principal balance	3,297	5,697
Related allowance		0
Total:
Recorded investment	9,992	7,796
Unpaid principal balance	9,992	7,796
Related allowance	2,285	353
Average recorded investment	8,894	4,036
Commercial Real Estate-Non-Owner Occupied
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
Residential 1-4 family
With an allowance recorded:
Recorded investment	0	523
Unpaid principal balance	0	523
Related allowance	0	160
With no related allowance recorded:
Recorded investment	176	179
Unpaid principal balance	176	179
Related allowance	0	0
Total:
Recorded investment	176	702
Unpaid principal balance	176	702
Related allowance	0	160
Average recorded investment	439	706
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	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

LOANS, ALLOWANCE FOR LOAN LOS_8

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Accretable and non-accretable components (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Impaired Financing Receivable, Recorded Investment	$ 10,168	$ 14,165
Impaired Financing Receivable, Unpaid Principal Balance	10,168	14,165
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	0	5,667
Impaired Financing Receivable, Unpaid Principal Balance	0	5,667
Commercial Real Estate-Owner Occupied
Impaired Financing Receivable, Recorded Investment	9,992	7,796
Impaired Financing Receivable, Unpaid Principal Balance	9,992	7,796
Commercial Real Estate-Non-Owner Occupied
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Residential 1-4 family
Impaired Financing Receivable, Recorded Investment	176	702
Impaired Financing Receivable, Unpaid Principal Balance	176	702
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	3,033	4,181
Impaired Financing Receivable, Unpaid Principal Balance	3,772	5,244
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	226	171
Impaired Financing Receivable, Unpaid Principal Balance	250	171
Financial Asset Acquired with Credit Deterioration [Member] | Commercial/Industrial
Impaired Financing Receivable, Recorded Investment	417	555
Impaired Financing Receivable, Unpaid Principal Balance	420	701
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate-Owner Occupied
Impaired Financing Receivable, Recorded Investment	1,318	1,558
Impaired Financing Receivable, Unpaid Principal Balance	1,932	2,069
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate-Non-Owner Occupied
Impaired Financing Receivable, Recorded Investment	0	233
Impaired Financing Receivable, Unpaid Principal Balance	0	475
Financial Asset Acquired with Credit Deterioration [Member] | Residential 1-4 family
Impaired Financing Receivable, Recorded Investment	1,072	1,664
Impaired Financing Receivable, Unpaid Principal Balance	1,170	1,828
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 - Credit Deterioration (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2018	Jun. 30, 2019
Accretable Discount [Member]
Balance at beginning of period	$ 583	$ 318
Acquired balance, net	0	0
Reclassifications between accretable and non-accretable	55	203
Accretion to loan interest income	(320)	(324)
Disposals of loans	0	0
Balance at end of period	318	197
Non Accretable Discount [Member]
Balance at beginning of period	800	745
Acquired balance, net	0	0
Reclassifications between accretable and non-accretable	(55)	(203)
Accretion to loan interest income	0	0
Disposals of loans	0	0
Balance at end of period	$ 745	$ 542

LOANS, ALLOWANCE FOR LOAN LO_10

LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans and Leases Receivable, Allowance	$ 12,170	$ 12,248	$ 13,047	$ 11,612
Troubled Debt Restructuring Reserve	2,100	$ 400
Minimum [Member] | Non-homogenous loans [Member]
Loans and Leases Receivable, Allowance	$ 250,000

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair value at beginning of year	$ 3,085	$ 2,610
Servicing asset additions	209	356
Loan payments and payoffs	(246)	(475)
Changes in valuation inputs and assumptions used in the valuation model	37	594
Amount recognized through earnings	0	475
Fair value at end of period	3,085	3,085
Unpaid principal balance of loans serviced for others	10,168	14,165
Other
Unpaid principal balance of loans serviced for others	$ 0	$ 0
Mortgage servicing rights as a percent of loans serviced for others	0.97%	0.97%
Other | Mortgage Servicing Rights [Member]
Unpaid principal balance of loans serviced for others	$ 319,173	$ 316,480

MORTGAGE SERVICING RIGHTS - Add

MORTGAGE SERVICING RIGHTS - Additional Information (Details)	Jun. 30, 2019	Dec. 31, 2018
Measurement Input, Discount Rate [Member]
Mortgage Servicing Rights Discount Rate	10.00%	10.00%
Measurement Input, Prepayment Rate [Member]
Servicing Asset, Measurement Input	8.3	8.3

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 0	$ 0
Commercial Bank One [Member]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000
Long-term Line of Credit	0	$ 0
Commercial Bank Two [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000

SUBORDINATED NOTES (Details)

SUBORDINATED NOTES (Details) - Subordinated Debt [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Subordinated Borrowing [Line Items]
Subordinated Debt	$ 11.5	$ 11.5
Debt Instrument, Term	10 years

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total capital (to risk-weighted assets):
Capital	$ 187,186	$ 178,668
Capital to Risk Weighted Assets	11.88%	11.21%
Capital Required for Capital Adequacy	$ 126,048	$ 127,497
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Excess Capital	$ 165,437	$ 157,459
Excess Capital to Risk Weighted Assets	10.50%	9.88%
Capital Required to be Well Capitalized	$ 157,560	$ 159,372
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier One Risk Based Capital [Abstract]
Tier One Risk Based Capital	$ 175,016	$ 166,420
Tier One Risk Based Capital to Risk Weighted Assets	11.11%	10.44%
Tier One Risk Based Capital Required for Capital Adequacy	$ 94,536	$ 95,623
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Excess Tier One Risk Based Capital	$ 133,926	$ 125,585
Excess Tier One Risk Based Capital to Risk Weighted Assets	8.50%	7.88%
Tier One Risk Based Capital Required to be Well Capitalized	$ 126,048	$ 127,497
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Common Equity Tier One Capital [Abstract]
Common Equity Tier One Capital	$ 175,016	$ 166,420
Common Equity Tier One Capital Ratio	11.11%	10.44%
Common Equity Tier One Capital Required for Capital Adequacy	$ 70,902	$ 71,717
Common Equity Tier One Capital Required for Capital Adequacy To Risk Weighted Assets	4.50%	4.50%
Excess Common Equity Tier One Capital	$ 110,292	$ 101,679
Excess Common Equity Tier One Capital to Risk Weighted Assets	7.00%	6.38%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 102,414	$ 103,592
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	$ 175,016	$ 166,420
Tier One Leverage Capital to Average Assets	9.85%	9.59%
Tier One Leverage Capital Required for Capital Adequacy	$ 71,105	$ 69,410
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Excess Tier One Leverage Capital	$ 71,105	$ 69,410
Excess Tier One Leverage Capital to Average Assets	4.00%	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 88,881	$ 86,762
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Company [Member]
Total capital (to risk-weighted assets):
Capital	$ 189,194	$ 181,201
Capital to Risk Weighted Assets	11.99%	11.35%
Tier One Risk Based Capital [Abstract]
Tier One Risk Based Capital	$ 165,524	$ 157,453
Tier One Risk Based Capital to Risk Weighted Assets	10.49%	9.86%
Common Equity Tier One Capital [Abstract]
Common Equity Tier One Capital	$ 165,524	$ 157,453
Common Equity Tier One Capital Ratio	10.49%	9.86%
Tier One Leverage Capital [Abstract]
Tier One Leverage Capital	$ 165,524	$ 157,453
Tier One Leverage Capital to Average Assets	9.27%	9.06%

REGULATORY MATTERS - Additional

REGULATORY MATTERS - Additional Information (Details) - USD ($) $ in Billions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
REGULATORY MATTERS
Capital Conservative Buffer		2.50%	1.88%
Threshold Amount Subject To Federal Reserve	$ 3

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
COMMITMENTS
Fixed	$ 44,412	$ 57,911
Variable	251,085	268,541
Credit card arrangements	8,064	7,119
Letters of credit	$ 23,962	$ 25,261

COMMITMENTS - Additional Inform

COMMITMENTS - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Interest Rate Lock Commitments [Member]
Derivative, Notional Amount	$ 0.7	$ 3.3

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities available for sale
Mortgage servicing rights	$ 3,085	$ 3,085	$ 2,610
Markets for Identical Assets (Level 1)
Securities available for sale
Mortgage servicing rights	0	0
Other investments	0	0
Other Observable Inputs (Level 2)
Securities available for sale
Mortgage servicing rights	3,085	3,085
Other investments	0	0
Significant Unobservable Inputs (Level 3)
Securities available for sale
Mortgage servicing rights	0	0
Other investments	4,517	4,555
Corporate notes [Member]
Securities available for sale
Instruments Measured At Fair Value	16,871	16,444
Corporate notes [Member] | Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Corporate notes [Member] | Other Observable Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	16,871	16,444
Corporate notes [Member] | 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	51,181	51,893
Obligations of states and political subdivisions [Member] | Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Obligations of states and political subdivisions [Member] | Other Observable Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	50,781	51,493
Obligations of states and political subdivisions [Member] | Significant Unobservable Inputs (Level 3)
Securities available for sale
Instruments Measured At Fair Value	400	400
Mortgage-backed securities [Member]
Securities available for sale
Instruments Measured At Fair Value	52,031	50,569
Mortgage-backed securities [Member] | Markets for Identical Assets (Level 1)
Securities available for sale
Instruments Measured At Fair Value	0	0
Mortgage-backed securities [Member] | Other Observable Inputs (Level 2)
Securities available for sale
Instruments Measured At Fair Value	52,031	50,569
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	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Total securities at beginning of year	$ 400	$ 500
Included in earnings	0	0
Included in other comprehensive income	0	0
Purchases, issuance, and settlements	0	(100)
Transfer in and/or out of level 3	0	0
Total securities at end of period	$ 400	$ 400

FAIR VALUE MEASUREMENTS - Fai_2

FAIR VALUE MEASUREMENTS - Fair value of assets measured on a non-recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other real estate owned	$ 3,543	$ 3,592
Impaired Loans, net of impairment reserve	13,008	20,872
Assets, Fair Value Disclosure	16,551	24,464
Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned	3,543	3,592
Impaired Loans, net of impairment reserve	13,008	20,872
Assets, Fair Value Disclosure	16,551	24,464
Markets for Identical Assets (Level 1)
Impaired Loans, net of impairment reserve	0	0
Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned	0	0
Impaired Loans, net of impairment reserve	0	0
Assets, Fair Value Disclosure	0	0
Other Observable Inputs (Level 2)
Impaired Loans, net of impairment reserve	0	0
Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned	0	0
Impaired Loans, net of impairment reserve	0	0
Assets, Fair Value Disclosure	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Fai_3

FAIR VALUE MEASUREMENTS - Fair value measurement on inputs and valuation techniques (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
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	40	40
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	21.3	18.6
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	4.6	9.3

FAIR VALUE MEASUREMENTS - Carry

FAIR VALUE MEASUREMENTS - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Financial assets:
Securities held to maturity	$ 40,552	$ 40,477
Securities available for sale	120,083	118,906
Loans, net	13,008	20,872
Mortgage servicing rights	3,085	3,085	$ 2,610
Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	125,874	107,743
Securities held to maturity	0	0
Securities available 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	24,488	24,178
Financial liabilities:
Deposits	0	0
Securities sold under repurchase agreements	0	0
Subordinated notes	0	0
Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	0	0
Securities held to maturity	40,552	40,477
Securities available for sale	119,683	118,506
Loans, net	0	0
Other investments, at cost	0	0
Mortgage servicing rights	3,085	3,085
Cash surrender value of life insurance	0	0
Financial liabilities:
Deposits	0	0
Securities sold under repurchase agreements	20,034	31,489
Subordinated notes	11,500	11,500
Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Securities available for sale	400	400
Loans, net	1,393,494	1,400,538
Other investments, at cost	4,517	4,555
Mortgage servicing rights	0	0
Cash surrender value of life insurance	0	0
Financial liabilities:
Deposits	1,560,172	1,449,552
Securities sold under repurchase agreements	0	0
Subordinated notes	0	0
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	125,874	107,743
Securities held to maturity	39,537	40,768
Securities available for sale	120,083	118,906
Loans, net	1,407,022	1,416,246
Other investments, at cost	4,517	4,555
Mortgage servicing rights	3,085	3,085
Cash surrender value of life insurance	24,488	24,178
Financial liabilities:
Deposits	1,574,998	1,557,167
Securities sold under repurchase agreements	20,034	31,489
Subordinated notes	11,500	11,500
Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	125,874	107,743
Securities held to maturity	40,552	40,477
Securities available for sale	120,083	118,906
Loans, net	1,393,494	1,400,538
Other investments, at cost	4,517	4,555
Mortgage servicing rights	3,085	3,085
Cash surrender value of life insurance	24,488	24,178
Financial liabilities:
Deposits	1,560,172	1,449,552
Securities sold under repurchase agreements	20,034	31,489
Subordinated notes	$ 11,500	$ 11,500

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
STOCK BASED COMPENSATION
Restricted Stock, Shares Outstanding at beginning of period	51,776	53,619
Restricted Stock, Shares Granted	17,015	16,673
Restricted Stock, Shares Vested	(17,212)	(19,825)
Restricted Stock, Shares Forfeited or cancelled	(176)	0
Restricted Stock, Shares Outstanding at end of period	51,403	50,467
Weighted-Average Grant-Date Fair Value, Outstanding at beginning of period	$ 34.27	$ 26.59
Weighted-Average Grant-Date Fair Value, Granted	56.62	46.01
Weighted-Average Grant-Date Fair Value, Vested	30.54	24.36
Weighted-Average Grant-Date Fair Value, Forfeited or cancelled	22.90	0
Weighted-Average Grant-Date Fair Value, Outstanding at end of period	$ 43.06	$ 33.88

STOCK BASED COMPENSATION - Addi

STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 1.9
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 1 month 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0.5
Restricted Stock or Unit Expense	$ 0.3	$ 0.3
2011 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	659,250
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	177,377	160,362

LEASES (Details)

LEASES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
LEASES
Amortization of ROU Assets - Finance Leases	$ 26
Interest on Lease Liabilities - Finance Leases	39
Operating Lease Cost (Cost resulting from lease payments)	65
New ROU Assets - Operating Leases	$ 1,744
Weighted Average Lease Term (Years) - Operating Leases	31 years 7 months 17 days
Weighted Average Discount Rate - Operating Leases	5.50%

LEASES - Operating Lease (Detai

LEASES - Operating Lease (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating lease payments due:
Within one year	$ 133
After one but within two years	139
After two but within three years	132
After three but within four years	93
After four years but within five years	85
After five years	3,453
Total undiscounted cash flows	4,035
Discount on cash flows	(2,317)
Total operating lease liabilities	$ 1,718

LEASES - Additional Information

LEASES - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Operating Lease, Right-of-Use Asset	$ 1,744
Operating Lease, Liability	$ 1,718
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		$ 1,700
Operating Lease, Liability		$ 1,700

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Partnership Community Bancshares - Subsequent Events	Jul. 12, 2019USD ($)$ / sharesshares
Subsequent Events
Shares of common stock issued per share	$ 0.35
Cash paid as consideration per share	$ 17.30
Cash paid as consideration | $	$ 14,285,000
Number of shares issued as part of consideration | shares	534,659

SUBSEQUENT EVENTS - Initial Est

SUBSEQUENT EVENTS - Initial Estimate of fair value of assets and liabilities (Details) - USD ($) $ in Thousands	Jul. 12, 2019	Jun. 30, 2019	Jan. 22, 2019	Dec. 31, 2018
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Goodwill		$ 15,024		$ 15,024
Partnership Community Bancshares
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Net Loans			$ 272,600
Total assets			306,100
Total deposits			268,900
Goodwill			30,100
Partnership Community Bancshares | Core Deposits
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Intangible assets			$ 5,400
Partnership Community Bancshares | Subsequent Events
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Cash and cash equivalents	$ 4,511
Investment securities	16,421
Other investments	441
Gross Loans	272,624
Net Loans	272,624
Premises and equipment, net	3,126
Other assets	3,591
Total assets	306,114
Total deposits	268,925
Subordinated debt	7,195
Other borrowings	9,782
Other liabilities	706
Total liabilities	286,608
Net identifiable assets acquired over liabilities assumed	19,506
Goodwill	30,083
Net assets acquired over liabilities assumed	49,589
Partnership Community Bancshares | Subsequent Events | Core Deposits
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Intangible assets	5,400
Partnership Community Bancshares | Subsequent Events | As recorded by Partnership
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Cash and cash equivalents	4,511
Investment securities	16,933
Other investments	441
Gross Loans	278,532
Allowance for loan losses	(2,253)
Net Loans	276,279
Premises and equipment, net	6,066
Other assets	3,118
Total assets	307,543
Total deposits	268,653
Subordinated debt	7,000
Other borrowings	9,800
Other liabilities	690
Total liabilities	286,143
Net identifiable assets acquired over liabilities assumed	21,400
Net assets acquired over liabilities assumed	21,400
Partnership Community Bancshares | Subsequent Events | As recorded by Partnership | Existing intangible assets
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Intangible assets	195
Partnership Community Bancshares | Subsequent Events | Fair Value Adjustments
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Investment securities	(512)
Gross Loans	(5,908)
Allowance for loan losses	2,253
Net Loans	(3,655)
Premises and equipment, net	(2,940)
Other assets	473
Total assets	(1,429)
Total deposits	272
Subordinated debt	195
Other borrowings	(18)
Other liabilities	16
Total liabilities	465
Net identifiable assets acquired over liabilities assumed	(1,894)
Goodwill	30,083
Net assets acquired over liabilities assumed	28,189
Partnership Community Bancshares | Subsequent Events | Fair Value Adjustments | Core Deposits
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Intangible assets	5,400
Partnership Community Bancshares | Subsequent Events | Fair Value Adjustments | Existing intangible assets
Initial estimate of fair value of assets acquired and liabilities assumed and fair value of total consideration transferred
Intangible assets	$ (195)

SUBSEQUENT EVENTS - Total consi

SUBSEQUENT EVENTS - Total consideration (Details) - USD ($)	Jul. 12, 2019	Oct. 27, 2017
Consideration
Fair value of total consideration transferred		$ 78,100,000
Partnership Community Bancshares | Subsequent Events
Consideration
Shares of common stock issued	534,659
Estimated value per share of company's stock	$ 66.03
Fair value of Company stock issued	$ 35,304,000
Cash paid for shares and in lieu of fractional shares	14,285,000
Fair value of total consideration transferred	$ 49,589,000