Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-38895 | |
Entity Registrant Name | South Plains Financial, Inc. | |
Entity Central Index Key | 0001163668 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-2453320 | |
Entity Address, Address Line One | 5219 City Bank Parkway | |
Entity Address, City or Town | Lubbock | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79407 | |
City Area Code | 806 | |
Local Phone Number | 792-7101 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | SPFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,954,313 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 67,915 | $ 76,146 |
Interest-bearing deposits in banks | 316,034 | 224,161 |
Cash and cash equivalents | 383,949 | 300,307 |
Securities available for sale | 777,613 | 803,087 |
Loans held for sale | 79,938 | 111,477 |
Loans held for investment | 2,303,462 | 2,221,583 |
Allowance for loan losses | (42,963) | (45,553) |
Accrued interest receivable | 11,981 | 15,233 |
Premises and equipment, net | 59,127 | 60,331 |
Bank-owned life insurance | 71,361 | 70,731 |
Goodwill | 19,508 | 19,508 |
Intangible assets, net | 6,718 | 7,562 |
Mortgage servicing rights | 15,977 | 9,049 |
Deferred tax asset, net | 1,675 | 2,461 |
Other assets | 24,569 | 23,384 |
Total assets | 3,712,915 | 3,599,160 |
Deposits: | ||
Noninterest-bearing | 998,941 | 917,322 |
Interest-bearing | 2,159,554 | 2,057,029 |
Total deposits | 3,158,495 | 2,974,351 |
Short-term borrowings | 3,890 | 26,550 |
Accrued expenses and other liabilities | 35,640 | 31,229 |
Notes payable & other borrowings | 0 | 75,000 |
Subordinated debt securities | 75,682 | 75,589 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Total liabilities | 3,320,100 | 3,229,112 |
Stockholders' equity: | ||
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 18,014,398 and 18,076,364 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 18,014 | 18,076 |
Additional paid-in capital | 140,212 | 141,112 |
Retained earnings | 216,164 | 189,521 |
Accumulated other comprehensive income | 18,425 | 21,339 |
Total stockholders' equity | 392,815 | 370,048 |
Total liabilities and stockholders' equity | $ 3,712,915 | $ 3,599,160 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 18,014,398 | 18,076,364 |
Common stock, shares outstanding (in shares) | 18,014,398 | 18,076,364 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Loans, including fees | $ 29,360 | $ 29,861 | $ 58,640 | $ 60,876 |
Securities: | ||||
Taxable | 2,413 | 3,170 | 4,873 | 6,950 |
Non taxable | 1,157 | 942 | 2,327 | 1,338 |
Federal funds sold and interest-bearing deposits in banks | 86 | 34 | 158 | 580 |
Total interest income | 33,016 | 34,007 | 65,998 | 69,744 |
Interest expense: | ||||
Deposits | 2,186 | 2,760 | 4,343 | 7,043 |
Notes payable & other borrowings | 4 | 102 | 43 | 552 |
Subordinated debt securities | 1,012 | 403 | 2,031 | 807 |
Junior subordinated deferrable interest debentures | 221 | 294 | 444 | 695 |
Total interest expense | 3,423 | 3,559 | 6,861 | 9,097 |
Net interest income | 29,593 | 30,448 | 59,137 | 60,647 |
Provision for loan losses | (2,007) | 13,133 | (1,918) | 19,367 |
Net interest income, after provision for loan losses | 31,600 | 17,315 | 61,055 | 41,280 |
Noninterest income: | ||||
Service charges on deposit accounts | 1,599 | 1,439 | 3,172 | 3,422 |
Income from insurance activities | 1,240 | 1,022 | 2,352 | 2,181 |
Net gain on sales of loans | 12,317 | 17,797 | 28,260 | 26,337 |
Bank card services and interchange fees | 3,073 | 2,344 | 5,715 | 4,582 |
Realized gain on sale of securities | 0 | 0 | 0 | 2,318 |
Investment commissions | 530 | 365 | 960 | 820 |
Fiduciary fees | 842 | 776 | 1,678 | 1,605 |
Other | 2,649 | 1,153 | 6,613 | 2,506 |
Total noninterest income | 22,250 | 24,896 | 48,750 | 43,771 |
Noninterest expense: | ||||
Salaries and employee benefits | 23,377 | 21,621 | 47,695 | 42,431 |
Occupancy and equipment, net | 3,499 | 3,586 | 7,064 | 7,186 |
Professional services | 1,522 | 1,961 | 3,095 | 3,533 |
Marketing and development | 812 | 806 | 1,380 | 1,574 |
IT and data services | 907 | 1,079 | 1,961 | 1,926 |
Bank card expenses | 1,252 | 1,017 | 2,301 | 2,069 |
Appraisal expenses | 879 | 638 | 1,560 | 1,093 |
Other | 4,530 | 4,499 | 8,779 | 9,406 |
Total noninterest expense | 36,778 | 35,207 | 73,835 | 69,218 |
Income before income taxes | 17,072 | 7,004 | 35,970 | 15,833 |
Income tax expense | 3,422 | 1,389 | 7,160 | 3,135 |
Net income | $ 13,650 | $ 5,615 | $ 28,810 | $ 12,698 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.76 | $ 0.31 | $ 1.60 | $ 0.70 |
Diluted (in dollars per share) | $ 0.74 | $ 0.31 | $ 1.55 | $ 0.69 |
Net income | $ 13,650 | $ 5,615 | $ 28,810 | $ 12,698 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain (loss) on securities available for sale | 10,620 | 6,813 | (7,872) | 28,002 |
Change in net gain (loss) on cash flow hedges | (2,750) | (931) | 4,183 | (2,158) |
Reclassification adjustment for (gain) loss included in net income | 0 | 0 | 0 | (2,318) |
Tax effect | (1,653) | (1,235) | 775 | (4,940) |
Other comprehensive income (loss) | 6,217 | 4,647 | (2,914) | 18,586 |
Comprehensive income | $ 19,867 | $ 10,262 | $ 25,896 | $ 31,284 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2019 | $ 18,036 | $ 140,492 | $ 146,696 | $ 958 | $ 306,182 |
Balance (in shares) at Dec. 31, 2019 | 18,036,115 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net | $ 0 | 0 | 0 | 0 | 0 |
Issuance of common stock, net (in shares) | 0 | ||||
Net income | $ 0 | 0 | 12,698 | 0 | 12,698 |
Cash dividends, common | 0 | 0 | (1,083) | 0 | (1,083) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 18,586 | 18,586 |
Exercise of employee stock options and vesting of restricted stock units | $ 28 | (157) | 0 | 0 | (129) |
Exercise of employee stock options and vesting of restricted stock units (in shares) | 27,759 | ||||
Repurchases of common stock | $ (5) | (56) | 0 | 0 | (61) |
Repurchases of common stock (in shares) | (4,700) | ||||
Stock based compensation | $ 0 | 341 | 0 | 0 | 341 |
Balance at Jun. 30, 2020 | $ 18,059 | 140,620 | 158,311 | 19,544 | 336,534 |
Balance (in shares) at Jun. 30, 2020 | 18,059,174 | ||||
Balance at Mar. 31, 2020 | $ 18,056 | 140,699 | 153,238 | 14,897 | 326,890 |
Balance (in shares) at Mar. 31, 2020 | 18,056,014 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net | $ 0 | 0 | 0 | 0 | 0 |
Issuance of common stock, net (in shares) | 0 | ||||
Net income | $ 0 | 0 | 5,615 | 0 | 5,615 |
Cash dividends, common | 0 | 0 | (542) | 0 | (542) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4,647 | 4,647 |
Exercise of employee stock options and vesting of restricted stock units | $ 8 | (54) | 0 | 0 | (46) |
Exercise of employee stock options and vesting of restricted stock units (in shares) | 7,860 | ||||
Repurchases of common stock | $ (5) | (56) | 0 | 0 | (61) |
Repurchases of common stock (in shares) | (4,700) | ||||
Stock based compensation | $ 0 | 31 | 0 | 0 | 31 |
Balance at Jun. 30, 2020 | $ 18,059 | 140,620 | 158,311 | 19,544 | 336,534 |
Balance (in shares) at Jun. 30, 2020 | 18,059,174 | ||||
Balance at Dec. 31, 2020 | $ 18,076 | 141,112 | 189,521 | 21,339 | $ 370,048 |
Balance (in shares) at Dec. 31, 2020 | 18,076,364 | 18,076,364 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 28,810 | 0 | $ 28,810 |
Cash dividends, common | 0 | 0 | (2,167) | 0 | (2,167) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,914) | (2,914) |
Exercise of employee stock options and vesting of restricted stock units | $ 21 | (127) | 0 | 0 | (106) |
Exercise of employee stock options and vesting of restricted stock units (in shares) | 20,552 | ||||
Repurchases of common stock | $ (83) | (1,595) | 0 | 0 | (1,678) |
Repurchases of common stock (in shares) | (82,518) | ||||
Stock based compensation | $ 0 | 822 | 0 | 0 | 822 |
Balance at Jun. 30, 2021 | $ 18,014 | 140,212 | 216,164 | 18,425 | $ 392,815 |
Balance (in shares) at Jun. 30, 2021 | 18,014,398 | 18,014,398 | |||
Balance at Mar. 31, 2021 | $ 18,053 | 140,633 | 203,777 | 12,208 | $ 374,671 |
Balance (in shares) at Mar. 31, 2021 | 18,053,229 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 13,650 | 0 | 13,650 |
Cash dividends, common | 0 | 0 | (1,263) | 0 | (1,263) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 6,217 | 6,217 |
Exercise of employee stock options and vesting of restricted stock units | $ 1 | (1) | 0 | 0 | 0 |
Exercise of employee stock options and vesting of restricted stock units (in shares) | 503 | ||||
Repurchases of common stock | $ (40) | (852) | 0 | 0 | (892) |
Repurchases of common stock (in shares) | (39,334) | ||||
Stock based compensation | $ 0 | 432 | 0 | 0 | 432 |
Balance at Jun. 30, 2021 | $ 18,014 | $ 140,212 | $ 216,164 | $ 18,425 | $ 392,815 |
Balance (in shares) at Jun. 30, 2021 | 18,014,398 | 18,014,398 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||||
Cash dividends, common (in dollars per share) | $ 0.07 | $ 0.03 | $ 0.12 | $ 0.06 |
Exercise of employee stock options, shares for cashless exercise (in shares) | 1,806 | 16,518 | 2,906 | 17,178 |
Exercise of employee stock options, shares for taxes (in shares) | 2,622 | 5,013 | 7,608 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 28,810 | $ 12,698 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | (1,918) | 19,367 |
Depreciation and amortization | 3,223 | 3,257 |
Accretion and amortization | 2,281 | 1,130 |
Other gains, net | (8) | (2,441) |
Net gain on sales of loans | (28,260) | (26,337) |
Proceeds from sales of loans held for sale | 869,253 | 567,294 |
Loans originated for sale | (815,446) | (584,696) |
Earnings on bank-owned life insurance | (630) | (674) |
Stock based compensation | 822 | 341 |
Change in valuation of mortgage servicing rights | (936) | 0 |
Net change in: | ||
Accrued interest receivable and other assets | 4,299 | (16,859) |
Accrued expenses and other liabilities | 7,716 | 18,340 |
Net cash from operating activities | 69,206 | (8,580) |
Activity in securities available for sale: | ||
Purchases | (56,565) | (121,254) |
Sales | 0 | 94,514 |
Maturities, prepayments, and calls | 71,979 | 30,588 |
Loan originations and principal collections, net | (83,035) | (193,060) |
Cash paid for acquisition | 0 | (687) |
Purchases of premises and equipment, net | (1,191) | (2,402) |
Proceeds from sales of premises and equipment | 22 | 87 |
Proceeds from sales of foreclosed assets | 693 | 1,689 |
Net cash from investing activities | (68,097) | (190,525) |
Cash flows from financing activities: | ||
Net change in deposits | 184,144 | 250,980 |
Net change in short-term borrowings | (22,660) | (27,600) |
Proceeds from notes payable & other borrowings | 0 | 75,000 |
Payments to tax authorities for stock-based compensation | (106) | (129) |
Payments made on notes payable and other borrowings | (75,000) | 0 |
Cash dividends on common stock | (2,167) | (1,083) |
Payments to repurchase common stock | (1,678) | (61) |
Net cash from financing activities | 82,533 | 297,107 |
Net change in cash and cash equivalents | 83,642 | 98,002 |
Beginning cash and cash equivalents | 300,307 | 158,099 |
Ending cash and cash equivalents | 383,949 | 256,101 |
Supplemental disclosures of cash flow information: | ||
Interest paid on deposits and borrowed funds | 6,623 | 9,623 |
Supplemental schedule of noncash activities: | ||
Loans transferred to foreclosed assets | 484 | 1,088 |
Measurement period acquisition adjustment | 0 | 0 |
Additions to mortgage servicing rights | $ 5,992 | $ 3,048 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Wholly Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries Basis of Presentation and Consolidation The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates Loans Loans are placed on nonaccrual status when, in management’s opinion, collection of interest is unlikely, which typically occurs when principal or interest payments are more than ninety days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s review of the collectability of the loans in the Company’s loan portfolio in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. Loans originated by the bank subsidiary are generally secured by specific items of collateral including real property, crops, livestock, consumer assets, and other business assets. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on various factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the bank subsidiary to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. All loans rated substandard or worse and greater than $250 thousand are specifically reviewed to determine if they are impaired. Factors considered by management in determining whether a loan is impaired include payment status and the sources, amounts, and probabilities of estimated cash flow available to service debt in relation to amounts due according to contractual terms. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans that are determined to be impaired are then evaluated to determine estimated impairment, if any. GAAP allows impairment to be measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Loans that are not individually determined to be impaired or are not subject to the specific review of impaired status are subject to the general valuation allowance portion of the allowance for loan loss. The Company may modify its loan agreement with a borrower. The modification will be considered a troubled debt restructuring (“TDR”) if the following criteria are met: (1) the borrower is experiencing a financial difficulty and (2) the Company makes a concession that it would not otherwise make. Concessions may include debt forgiveness, interest rate change, or maturity extension. Each of these loans is impaired and is evaluated for impairment, with a specific reserve recorded as necessary based on probable losses related to collateral and cash flow. A loan will no longer be required to be reported as restructured in calendar years following the restructure if the interest rate at the time of restructure is greater than or equal to the rate the Company was willing to accept for a new extension of credit with similar risk and the loan is in compliance with its modified terms. Acquired Loans The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan Loans acquired through business combinations that meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, the Company then establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Goodwill and Other Intangible Assets Core deposit intangible (“CDI”) is a measure of the value of checking and savings deposit relationships acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed 10 years. Significantly all CDI is amortized using the sum of the years’ digits method. The remaining other intangible assets consist of customer relationship and employment agreement intangible assets and are amortized over their estimated useful lives of 5 years. Stock-Based Compensation Company sponsors an equity incentive plan under which options to acquire shares of the Company’s common stock may be granted periodically to all full-time employees and directors of the Company or its affiliates at a specific exercise price. Shares are issued out of authorized and unissued common shares that have been reserved for issuance under such plan. Compensation cost is measured based on the estimated fair value of the award at the grant date and is recognized in earnings on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the date of grant using a closed form option valuation (“Black-Scholes”) option pricing model. This model requires assumptions as to the expected stock volatility, dividends, terms and risk-free rates. The expected volatility is based on the combination of the Company’s historical volatility and the volatility of comparable peer banks. The expected term represents the period of time that options are expected to be outstanding from the grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the appropriate life of each stock option Recent Accounting Pronouncements FASB ASC constitutes GAAP for nongovernmental entities. Updates to ASC are prescribed in Accounting Standards Updates (“ASU”), which are not authoritative until incorporated into ASC ASU 2021-01, Reference Rate Reform (Topic 848) ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU No. 2020-04 and it provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the Company’s consolidated financial statements. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). In December 2019, the FASB issued ASU 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material effect on the Company’s financial statements. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This ASU simplifies the accounting for goodwill impairment for all entities by eliminating Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company elected to early adopt ASU 2017-04 on January 1, 2020, and it did not have a material impact on its financial statements. ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity securities, and debt securities. ASU 2016-13 is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact adoption of ASU 2016-13 and the CECL methodology for estimating the allowance for credit losses will have on its consolidated operating results and financial condition. ASU 2016-02 Leases (Topic 842). The FASB amended existing guidance that requires that lessees recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company is in the process of determining the effect of the standard on its consolidated operating results and financial condition. These amendments are effective for the Company for annual periods beginning after December 15, 2021 and interim periods beginning after December 15, 2022. Subsequent Events |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES [Abstract] | |
SECURITIES | 2. SECURITIES The amortized cost and fair value of securities, with gross unrealized gains and losses, at period-end follow: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30 , 2021 Available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal 267,615 11,327 (127 ) 278,815 Mortgage-backed securities 342,490 8,291 (3,206 ) 347,575 Collateralized mortgage obligations 106,976 944 — 107,920 Asset-backed and other amortizing securities 29,316 1,575 — 30,891 Other securities 12,000 412 — 12,412 $ 758,397 $ 22,549 $ (3,333 ) $ 777,613 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2020 Available for sale: U.S. government and agencies $ 4,750 $ 3 $ — $ 4,753 State and municipal 261,023 11,704 (120 ) 272,607 Mortgage-backed securities 359,542 14,014 (194 ) 373,362 Collateralized mortgage obligations 107,175 — (460 ) 106,715 Asset-backed and other amortizing securities 31,509 2,063 — 33,572 Other securities 12,000 91 (13 ) 12,078 $ 775,999 $ 27,875 $ (787 ) $ 803,087 The amortized cost and fair value of securities at June 30, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date. Available for Sale Amortized Cost Fair Value Within 1 year $ 1,130 $ 1,137 After 1 year through 5 years 5,325 5,646 After 5 years through 10 years 25,944 27,024 After 10 years 247,216 257,420 Other 478,782 486,386 $ 758,397 $ 777,613 At both June 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. Securities with a carrying value of approximately $331.4 million and $292.2 million at June 30, 2021 and December 31, 2020, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law. The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position: Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30 , 2021 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal 23,074 127 — — 23,074 127 Mortgage-backed securities 116,659 3,206 — — 116,659 3,206 Collateralized mortgage obligations — — — — — — Asset-backed and other amortizing securities — — — — — — Other securities — — — — — — $ 139,733 $ 3,333 $ — $ — $ 139,733 $ 3,333 December 31 , 2020 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal — 120 — — — 120 Mortgage-backed securities 93,482 194 — — 93,482 194 Collateralized mortgage obligations 106,715 460 — — 106,715 460 Asset-backed and other amortizing securities — — — — — — Other securities 3,486 13 — — 3,486 13 $ 203,683 $ 787 $ — $ — $ 203,683 $ 787 There were 18 securities with an unrealized loss at June 30, 2021. Management does not believe that these losses are other than temporary as there is no intent to sell any of these securities before recovery and it is not probable that we will be required to sell any of these securities before recovery, and credit loss, if any, is not material. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of June 30, 2021, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company’s consolidated financial statements. |
LOANS HELD FOR INVESTMENT
LOANS HELD FOR INVESTMENT | 6 Months Ended |
Jun. 30, 2021 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS HELD FOR INVESTMENT | 3. LOANS HELD FOR INVESTMENT Loans held for investment are summarized by category as of the periods presented below: June 30, 2021 December 31, 2020 Commercial real estate $ 682,017 $ 663,344 Commercial - specialized 323,576 311,686 Commercial - general 492,314 518,309 Consumer: 1-4 family residential 375,302 360,315 Auto loans 230,570 205,840 Other consumer 68,098 67,595 Construction 131,585 94,494 2,303,462 2,221,583 Allowance for loan losses (42,963 ) (45,553 ) Loans, net $ 2,260,499 $ 2,176,030 The Company has certain lending policies, underwriting standards, and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies, underwriting standards, and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. Commercial – General and Specialized Commercial Real Estate Construction Consumer The allowance for loan losses was $43.0 million at June 30, 2021, compared to $45.6 million at December 31, 2020. The allowance for loan losses to loans held for investment was 1.87% at June 30, 2021 and 2.05% at December 31, 2020. The decrease in the allowance for loan losses at June 30, 2021 compared to December 31, 2020 was the result of the Company recording a negative provision for loan losses in the second quarter of 2021 of $ million. The negative provision was primarily due to the general improvement in the economy, a decline in the amount of loans that are actively under a modification, and a decrease in nonperforming loans. The following table details the activity in the allowance for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2021 Commercial real estate $ 19,020 $ (1,732 ) $ — $ — $ 17,288 Commercial - specialized 5,458 (653 ) (5 ) 23 4,823 Commercial - general 8,979 (83 ) (34 ) 86 8,948 Consumer: 1-4 family residential 4,890 172 — 2 5,064 Auto loans 3,891 13 (139 ) 50 3,815 Other consumer 1,480 (12 ) (119 ) 85 1,434 Construction 1,301 288 — 2 1,591 Total $ 45,019 $ (2,007 ) $ (297 ) $ 248 $ 42,963 For the three months ended June 30 , 2020 Commercial real estate $ 7,192 $ 7,856 $ — $ 108 $ 15,156 Commercial - specialized 4,555 2,872 (836 ) 23 6,614 Commercial - general 7,980 1,773 (532 ) 72 9,293 Consumer: 1-4 family residential 2,744 181 — 1 2,926 Auto loans 4,312 (168 ) (262 ) 57 3,939 Other consumer 1,639 205 (383 ) 179 1,640 Construction 652 414 — 1 1,067 Total $ 29,074 $ 13,133 $ (2,013 ) $ 441 $ 40,635 Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2021 Commercial real estate $ 18,962 $ (1,674 ) $ — $ — $ 17,288 Commercial - specialized 5,760 (1,032 ) (5 ) 100 4,823 Commercial - general 9,227 (32 ) (377 ) 130 8,948 Consumer: 1-4 family residential 4,646 467 (52 ) 3 5,064 Auto loans 4,226 (167 ) (327 ) 83 3,815 Other consumer 1,671 (6 ) (377 ) 146 1,434 Construction 1,061 526 — 4 1,591 Total $ 45,553 $ (1,918 ) $ (1,138 ) $ 466 $ 42,963 For the six months ended June 30 , 2020 Commercial real estate $ 5,049 $ 9,892 $ — $ 215 $ 15,156 Commercial - specialized 2,287 5,090 (850 ) 87 6,614 Commercial - general 9,609 975 (1,380 ) 89 9,293 Consumer: 1-4 family residential 2,093 832 — 1 2,926 Auto loans 3,385 1,149 (704 ) 109 3,939 Other consumer 1,341 796 (749 ) 252 1,640 Construction 433 633 — 1 1,067 Total $ 24,197 $ 19,367 $ (3,683 ) $ 754 $ 40,635 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment: Recorded Investment Allowance for Loan Losses Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated June 30 , 2021 Commercial real estate $ 2,529 $ 679,488 $ — $ 17,288 Commercial - specialized — 323,576 — 4,823 Commercial - general 5,709 486,605 640 8,308 Consumer: 1-4 family residential 2,297 373,005 120 4,944 Auto loans — 230,570 — 3,815 Other consumer — 68,098 — 1,434 Construction — 131,585 — 1,591 Total $ 10,535 $ 2,292,927 $ 760 $ 42,203 December 31 , 2020 Commercial real estate $ 6,273 $ 657,071 $ 580 $ 18,382 Commercial - specialized — 311,686 — 5,760 Commercial - general 4,626 513,683 515 8,712 Consumer: 1-4 family residential 2,122 358,193 — 4,646 Auto loans — 205,840 — 4,226 Other consumer — 67,595 — 1,671 Construction — 94,494 — 1,061 Total $ 13,021 $ 2,208,562 $ 1,095 $ 44,458 Impaired loan information follows: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment June 30 , 2021 Commercial real estate $ 2,529 $ 2,529 $ — $ 2,529 $ — $ 4,401 Commercial - specialized — — — — — — Commercial - general 5,709 1,567 4,142 5,709 640 5,168 Consumer: 1-4 family residential 2,716 1,508 789 2,297 120 2,210 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 10,954 $ 5,604 $ 4,931 $ 10,535 $ 760 $ 11,779 December 31 , 2020 Commercial real estate $ 6,273 $ 3,673 $ 2,600 $ 6,273 $ 580 $ 3,666 Commercial - specialized — — — — — 673 Commercial - general 4,626 3,364 1,262 4,626 515 3,400 Consumer: 1-4 family residential 2,541 2,122 — 2,122 — 2,155 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 13,440 $ 9,159 $ 3,862 $ 13,021 $ 1,095 $ 9,894 All impaired loans $250 thousand and greater were specifically evaluated for impairment. Interest income recognized using a cash-basis method on impaired loans for the six-month period ended June 30, 2021 and the year ended December 31, 2020 was not significant. Additional funds committed to be advanced on impaired loans are not significant. The table below provides an age analysis on accruing past-due loans and nonaccrual loans: 30-89 Days Past Due 90 Days or More Past Due Nonaccrual June 30 , 2021 Commercial real estate $ 5,561 $ 44 $ 2,559 Commercial - specialized 230 — 169 Commercial - general 1,027 93 6,008 Consumer: 1-4 family residential 590 1,156 2,154 Auto loans 325 29 40 Other consumer 432 72 48 Construction 460 — 166 Total $ 8,625 $ 1,394 $ 11,144 December 31 , 2020 Commercial real estate $ 914 $ 34 $ 6,311 Commercial - specialized 241 — 272 Commercial - general 1,891 149 5,489 Consumer: 1-4 family residential 2,089 906 1,595 Auto loans 738 38 — Other consumer 481 119 51 Construction 206 — — Total $ 6,560 $ 1,246 $ 13,718 The Company grades its loans on a thirteen-point grading scale. These grades fit in one of the following categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful, or (v) loss. Loans categorized as loss are charged-off immediately. The grading of loans reflect a judgment by the Company about the risks of default associated with the loan. The Company reviews the grades on loans as part of our on-going monitoring of the credit quality of our loan portfolio. Pass loans have financial factors or nature of collateral that are considered reasonable credit risks in the normal course of lending and encompass several grades that are assigned based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loans at some future date. Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize collection and present the distinct possibility that some loss will be sustained if the deficiencies are not corrected. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Substandard loans can be accruing or can be nonaccrual depending on the circumstances of the individual loans. Doubtful loans have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. All doubtful loans are on nonaccrual. The following table summarizes the internal classifications of loans: Pass Special Mention Substandard Doubtful Total June 30 , 2021 Commercial real estate $ 626,495 $ — $ 55,522 $ — $ 682,017 Commercial - specialized 317,696 — 5,880 — 323,576 Commercial - general 482,631 1,685 7,998 — 492,314 Consumer: 1-4 family residential 367,631 — 7,671 — 375,302 Auto loans 229,175 — 1,395 — 230,570 Other consumer 67,802 — 296 — 68,098 Construction 131,207 — 378 — 131,585 Total $ 2,222,637 $ 1,685 $ 79,140 $ — $ 2,303,462 December 31 , 2020 Commercial real estate $ 602,250 $ — $ 61,094 $ — $ 663,344 Commercial - specialized 303,831 — 7,855 — 311,686 Commercial - general 510,543 — 7,766 — 518,309 Consumer: 1-4 family residential 352,930 — 7,385 — 360,315 Auto loans 204,301 — 1,539 — 205,840 Other consumer 67,216 — 379 — 67,595 Construction 94,494 — — — 94,494 Total $ 2,135,565 $ — $ 86,018 $ — $ 2,221,583 Under section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), banks may elect to deem that loan modifications do not result in a classification as a TDR if they are (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency or (B) December 31, 2020. Under section 540 of the Consolidated Appropriations Act, 2021 (the “Act”), section 4013 of the CARES Act was amended. The period for loan modifications was extended to the earlier of (1) January 1, 2022, or (2) 60 days after the date of termination of the national emergency. The Company elected to adopt the provisions of the CARES Act and the Act. Additionally, other short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not TDRs under ASC Subtopic 310-40 and the interagency statement released by the federal banking regulators on April 7, 2020 in response to the COVID-19 pandemic (the “Joint Interagency Regulatory Guidance”). This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In response to the COVID-19 pandemic, the Company implemented a short-term deferral modification program that complies with ASC Subtopic 310-40 and the Joint Interagency Regulatory Guidance. As of June 30, 2021, the Company had remaining loans under an active modification that comply with ASC Subtopic 310-40 and the Joint Interagency Regulatory Guidance Beginning in April 2020, the Company began offering additional COVID-19 related deferral and modification of principal and/or interest payments to selected borrowers on a case-by-case basis that were outside the scope of the short-term deferral modification program. These additional modifications comply with the provisions of section 4013 of the CARES Act, as amended by the Act. As of June 30, 2021, There were no loans modified as a TDR during the six-month period ended June 30, 2021 and the year ended December 31, 2020. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 6 Months Ended |
Jun. 30, 2021 | |
GOODWILL AND INTANGIBLES [Abstract] | |
GOODWILL AND INTANGIBLES | 4. GOODWILL AND INTANGIBLES Goodwill and other intangible assets are summarized below: June 30, 2021 December 31, 2020 Beginning goodwill $ 19,508 $ 18,757 Arising from business combinations — — Measurement period acquisition adjustment — 751 Ending goodwill $ 19,508 $ 19,508 Amortized intangible assets Customer relationship intangibles $ 6,679 $ 6,679 Less: Accumulated amortization (1,943 ) (1,396 ) 4,736 5,283 Other intangibles 2,972 2,309 Arising from business combinations — 663 Less: Accumulated amortization (990 ) (693 ) 1,982 2,279 Other intangible assets, net $ 6,718 $ 7,562 |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
BORROWING ARRANGEMENTS [Abstract] | |
BORROWING ARRANGEMENTS | 5. BORROWING ARRANGEMENTS Subordinated Debt Securities In December 2018, the Company issued $26.5 million in subordinated debt securities. $12.4 million of the securities have a maturity date of December 2028 December 2030 Wall Street Journal On September 29, 2020, the Company issued $50.0 million in subordinated debt securities. Proceeds were reduced by approximately $926 thousand in debt issuance costs. The securities have a maturity date of September 2030 As of June 30, 2021, the total amount of subordinated debt securities outstanding was $76.5 million less approximately $790 thousand of remaining debt issuance costs for a total balance of $75.7 million. Notes Payable and Other Borrowings At December 31, 2020, City Bank had three advances from the Federal Home Loan Bank of Dallas (“FHLB”) totaling $75.0 million. Advances are collateralized through the line of credit with FHLB with interest payable monthly and principal due at maturity. In March 2021, City Bank repaid two of the advances for a total of $50 million and then repaid the remaining advance of $ million in April 2021. As of June 30, 2021, City Bank had outstanding advances from the FHLB |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION Equity Incentive Plan The 2019 Equity Incentive Plan (“Plan”) was approved by the Company’s Board of Directors on January 16, 2019 and by its shareholders on March 6, 2019. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of substantial responsibility, (ii) provide additional incentive to employees, directors and consultants, and (iii) promote the success of the Company’s business. This Plan permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The initial maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the Plan is 2,300,000. The maximum aggregate number of shares that may be issued under the Plan may be increased annually by up to 3% of the total issued and outstanding common shares of the Company at the beginning of each fiscal year. The fair value of each option award under the Plan is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer company averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant. Forfeitures of options are recognized as they occur. Options A summary of activity in the Plan is presented in the table below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Six Months Ended June 30 , 2021 Outstanding at beginning of year: 1,554,894 $ 14.77 $ 12,997 Granted 214,452 19.46 787 Exercised (3,666 ) 17.94 (19 ) Forfeited — — — Expired — — — Balance, June 30 2021 1,765,680 $ 15.33 5.98 $ 13,765 Exercisable at end of period 1,114,890 $ 13.15 5.17 $ 11,121 Vested at end of period 1,114,890 $ 13.15 5.17 $ 11,121 A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below: Six June 30 2021 2020 Expected volatility 41.20% to 41.32% 27.46 % Expected dividend yield 1.00 % 0.70 % Expected term (years) 6.1 6.2 6.0 to 6.2 years Risk-free interest rate 0.52% to 0.83% 1.44 % Weighted average grant date fair value $ 7.07 $ 5.68 The total intrinsic value of options exercised during the six months ended June 30, 2021 and June 30, 2020 was $17 thousand and $185 thousand, respectively. Restricted Stock Units A summary of activity in the Plan is presented in the table below: Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2021 Outstanding at beginning of year: 62,476 $ 19.47 Granted 6,370 19.62 Vested (24,805 ) 19.70 Forfeited (1,274 ) 19.62 Balance, June 30 2021 42,767 $ 19.36 Restricted stock units granted under the Plan typically vest over four years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The total unrecognized compensation cost for the awards outstanding under the Plan at June 30, 2021 was $3.5 million and will be recognized over a weighted average remaining period of 1.65 years. The total fair value of restricted stock units vested during each of the six months ended June 30, 2021 and June 30, 2020 was $489 thousand. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Financial instruments with off-balance-sheet risk Financial instruments whose contract amounts represent credit risk outstanding follow: June 30, 2021 December 31, 2020 Commitments to grant loans and unfunded commitments under lines of credit $ 585,233 $ 417,798 Standby letters of credit 9,432 10,481 Commitments to grant loans and extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company requires collateral supporting those commitments if deemed necessary. Litigation FHLB Letters of Credit |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2021 | |
CAPITAL AND REGULATORY MATTERS [Abstract] | |
CAPITAL AND REGULATORY MATTERS | 8. CAPITAL AND REGULATORY MATTERS The Company and its bank subsidiary are subject to various regulatory capital requirements administered by its banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and its bank subsidiary’s financial statements. Under capital guidelines and the regulatory framework for prompt corrective action, the Company and its bank subsidiary must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. In July 2013, the Board of Governors of the Federal Reserve System published final rules for the adoption of the Basel III regulatory capital framework (“Basel III”). Basel III, among other things, (i) introduced a new capital measure called Common Equity Tier 1 (“CET1”), (ii) specified that Tier 1 capital consists of CET1 and Additional Tier 1 Capital instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Basel III became effective for the Company and its bank subsidiary on January 1, 2016 with certain transition provisions fully phased-in on January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1 and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of June 30, 2021 and December 31, 2020, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject. As of June 30, 2021, the bank subsidiary was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since June 30, 2021 that management believes have changed the bank subsidiary’s category. The Company and its bank subsidiary’s actual capital amounts and ratios follow: Actual Minimum Required Under BASEL III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30 , 2021 Total Capital to Risk Weighted Assets: Consolidated $ 502,095 18.95 % $ 278,637 10.50 % N/A N/A City Bank 413,791 15.59 % 281,942 10.50 % $ 268,516 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 393,164 14.84 % 225,563 8.50 % N/A N/A City Bank 380,498 14.34 % 228,239 8.50 % 214,813 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 348,164 13.14 % 185,758 7.00 % N/A N/A City Bank 380,498 14.34 % 187,961 7.00 % 174,536 6.50 % Tier I Capital to Average Assets: Consolidated 393,164 10.54 % 150,322 4.00 % N/A N/A City Bank 380,498 10.20 % 150,240 4.00 % 186,489 5.00 % December 31 , 2020 Total Capital to Risk Weighted Assets: Consolidated $ 473,425 19.08 % $ 260,531 10.50 % N/A N/A City Bank 404,138 16.29 % 260,481 10.50 % $ 248,077 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 366,639 14.78 % 210,906 8.50 % N/A N/A City Bank 372,947 15.03 % 210,866 8.50 % 198,462 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 321,639 12.96 % 173,688 7.00 % N/A N/A City Bank 372,947 15.03 % 173,654 7.00 % 161,250 6.50 % Tier I Capital to Average Assets: Consolidated 366,639 10.24 % 144,347 4.00 % N/A N/A City Bank 372,947 10.42 % 144,282 4.00 % 178,999 5.00 % State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Company’s bank subsidiary to the Company, as sole shareholder of the bank subsidiary, would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 9. DERIVATIVES The Company utilizes interest rate and cash flow swap agreements as part of its asset-liability management strategy to help manage its interest rate and cash flow risk position. The notional amount of the interest rate and cash flow swaps do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amounts and the other terms of the individual interest rate and cash flow swap agreements. The following table reflects the fair value hedges included in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 10,011 $ 644 $ 10,178 $ 927 Included in other assets: Interest rate swaps related to fixed rate loans $ — $ — $ — $ — The following table reflects the cash flow hedges included in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Cash flow swaps related to state and municipal securities $ — $ — $ 68,485 $ 1,643 Included in other assets: Cash flow swaps related to state and municipal securities $ 123,760 $ 4,084 $ 55,275 $ 1,618 Mortgage banking derivatives The following table reflects the amount and fair value of mortgage banking derivatives in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Forward contracts related to mortgage loans held for sale $ — $ — $ — $ — Interest rate lock commitments 161,493 2,967 210,716 5,115 Total included in other assets $ 161,493 $ 2,967 $ 210,716 $ 5,115 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 149,144 $ 646 $ 203,669 $ 1,787 Interest rate lock commitments — — — — Total included in other liabilities $ 149,144 $ 646 $ 203,669 $ 1,787 The Company had received cash collateral of $3.9 million to offset asset derivative positions on its securities cash flow hedges at June 30, 2021. This amount is reported in other liabilities in the consolidated balance sheets. The Company had advanced $1.1 million to offset liability positions on its interest rate swaps at June 30, 2021. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at June 30, 2021. The advanced cash collateral amounts are reported in cash and due from banks in the consolidated balance sheets. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE The factors used in the earnings per share computation follow: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 13,650 $ 5,615 $ 28,810 $ 12,698 Weighted average common shares outstanding - basic 18,039,553 18,061,705 18,054,288 18,052,405 Effect of dilutive securities: Stock-based compensation awards 513,497 162,925 484,881 290,871 Weighted average common shares outstanding - diluted 18,553,050 18,224,630 18,539,169 18,343,276 Basic earnings per share $ 0.76 $ 0.31 $ 1.60 $ 0.70 Diluted earnings per share $ 0.74 $ 0.31 $ 1.55 $ 0.69 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION Financial results by reportable segment are detailed below: Three Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 29,593 $ — $ 29,593 Provision for loan loss 2,007 — 2,007 Noninterest income 21,076 1,174 22,250 Noninterest expense (35,665 ) (1,113 ) (36,778 ) Income before income taxes 17,011 61 17,072 Income tax (expense) benefit (3,409 ) (13 ) (3,422 ) Net income $ 13,602 $ 48 $ 13,650 Three Months Ended June 30 , 2020 Banking Insurance Consolidated Net interest income $ 30,448 $ — $ 30,448 Provision for loan loss (13,133 ) — (13,133 ) Noninterest income 23,896 1,000 24,896 Noninterest expense (34,061 ) (1,146 ) (35,207 ) Income before income taxes 7,150 (146 ) 7,004 Income tax (expense) benefit (1,358 ) (31 ) (1,389 ) Net income $ 5,792 $ (177 ) $ 5,615 Financial results by reportable segment are detailed below: Six Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 59,137 $ — $ 59,137 Provision for loan loss 1,918 — 1,918 Noninterest income 46,493 2,257 48,750 Noninterest expense (71,620 ) (2,215 ) (73,835 ) Income before income taxes 35,928 42 35,970 Income tax (expense) benefit (7,150 ) (10 ) (7,160 ) Net income $ 28,778 $ 32 $ 28,810 Six Months Ended June 30 , 2020 Banking Insurance Consolidated Net interest income $ 60,647 $ — $ 60,647 Provision for loan loss (19,367 ) — (19,367 ) Noninterest income 41,657 2,114 43,771 Noninterest expense (66,892 ) (2,326 ) (69,218 ) Income before income taxes 16,045 (212 ) 15,833 Income tax (expense) benefit (3,117 ) (18 ) (3,135 ) Net income $ 12,928 $ (230 ) $ 12,698 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE DISCLOSURES | 12. FAIR VALUE DISCLOSURES Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Valuation techniques that are consistent with the market approach, the income approach and/or the cost approach are required by GAAP. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy for valuation inputs gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 Inputs ● Level 2 Inputs ● Level 3 Inputs The following table summarizes fair value measurements: Level 1 Level 2 Level 3 Total June 30 , 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal — 278,815 — 278,815 Mortgage-backed securities — 347,575 — 347,575 Collateralized mortgage obligations — 107,920 — 107,920 Asset-backed and other amortizing securities — 30,891 — 30,891 Other securities — 12,412 — 12,412 Loans held for sale (mandatory) — 51,486 — 51,486 Mortgage servicing rights — — 15,977 15,977 Asset derivatives — 7,051 — 7,051 Liability derivatives — (1,290 ) — (1,290 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 9,775 9,775 Other real estate owned — — 1,146 1,146 December 31, 2020 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ 4,753 $ — $ 4,753 State and municipal — 272,607 — 272,607 Mortgage-backed securities — 373,362 — 373,362 Collateralized mortgage obligations — 106,715 — 106,715 Asset-backed and other amortizing securities — 33,572 — 33,572 Other securities — 12,078 — 12,078 Loans held for sale (mandatory) — 80,174 — 80,174 Mortgage servicing rights — — 9,049 9,049 Asset derivatives — 6,734 — 6,734 Liability derivatives — (4,357 ) — (4,357 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 11,926 11,926 Other real estate owned — — 1,353 1,353 Securities Loans held for sale (mandatory) Mortgage servicing rights Derivatives Impaired loans Foreclosed assets Loans held for sale (best efforts) The following table presents quantitative information about non-recurring Level 3 fair value measurements: Fair Value Valuation Techniques Unobservable Inputs Range of Discounts June 30 , 2021 12 12 Impaired loans $ 9,775 Third party appraisals or inspections Collateral discounts and selling costs 0%-100 % Other real estate owned 1,146 Third party appraisals or inspections Collateral discounts and selling costs 15%-66 % Mortgage servicing rights 15,977 Discounted cash flows Conditional prepayment rate 5.69 % Discount rate 9.15 % December 31, 2020 Impaired loans $ 11,926 Third party appraisals or inspections Collateral discounts and selling costs 0%-100 % Other real estate owned 1,353 Third party appraisals or inspections Collateral discounts and selling costs 15%-66 % Mortgage servicing rights 9,049 Discounted cash flows Conditional prepayment rate 4.48 % Discount rate 9.72 % The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows: Carrying Amount Level 1 Level 2 Level 3 Total Fair Value June 30 , 2021 Financial assets: Cash and cash equivalents $ 383,949 $ 383,949 $ — $ — $ 383,949 Loans, net 2,260,499 — — 2,305,203 2,305,203 Accrued interest receivable 11,981 — 11,981 — 11,981 Bank-owned life insurance 71,631 — 71,361 — 71,361 Financial liabilities: Deposits $ 3,158,495 $ 2,931,301 $ 229,785 $ — $ 3,161,086 Accrued interest payable 1,951 — 1,951 — 1,951 Notes payable & other borrowings — — — — — Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,682 — 77,846 — 77,846 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2020 Financial assets: Cash and cash equivalents $ 300,307 $ 300,307 $ — $ — $ 300,307 Loans, net 2,176,030 — — 2,179,573 2,179,573 Accrued interest receivable 15,233 — 15,233 — 15,233 Bank-owned life insurance 70,731 — 70,731 — 70,731 Financial liabilities: Deposits $ 2,974,351 $ 2,649,830 $ 329,609 $ — $ 2,979,439 Accrued interest payable 2,113 — 2,113 — 2,113 Notes payable & other borrowings 75,000 — 75,000 — 75,000 Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,589 — 76,889 — 76,889 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2021 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 13. BUSINESS COMBINATIONS In June 2020, Windmark acquired the operating assets of a crop insurance agency in Nebraska for $687 thousand. Fair value of the assets acquired in this transaction as of the closing date are as follows: Cash paid $ 687 Assets acquired: Premises and equipment, net $ 24 Customer list 512 Other intangible assets 151 Total assets acquired $ 687 The Company evaluated the fair values of other assets and other liabilities, with additional adjustments to be recorded during the measurement period, but no later than one year from the closing date of the transaction. The Company did not record any measurement period adjustments |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of Operations | Nature of Operations Wholly Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries |
Consolidation | Basis of Presentation and Consolidation |
Basis of Presentation | The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Use of Estimates | Use of Estimates |
Loans | Loans Loans are placed on nonaccrual status when, in management’s opinion, collection of interest is unlikely, which typically occurs when principal or interest payments are more than ninety days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s review of the collectability of the loans in the Company’s loan portfolio in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. Loans originated by the bank subsidiary are generally secured by specific items of collateral including real property, crops, livestock, consumer assets, and other business assets. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on various factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the bank subsidiary to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. All loans rated substandard or worse and greater than $250 thousand are specifically reviewed to determine if they are impaired. Factors considered by management in determining whether a loan is impaired include payment status and the sources, amounts, and probabilities of estimated cash flow available to service debt in relation to amounts due according to contractual terms. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans that are determined to be impaired are then evaluated to determine estimated impairment, if any. GAAP allows impairment to be measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Loans that are not individually determined to be impaired or are not subject to the specific review of impaired status are subject to the general valuation allowance portion of the allowance for loan loss. The Company may modify its loan agreement with a borrower. The modification will be considered a troubled debt restructuring (“TDR”) if the following criteria are met: (1) the borrower is experiencing a financial difficulty and (2) the Company makes a concession that it would not otherwise make. Concessions may include debt forgiveness, interest rate change, or maturity extension. Each of these loans is impaired and is evaluated for impairment, with a specific reserve recorded as necessary based on probable losses related to collateral and cash flow. A loan will no longer be required to be reported as restructured in calendar years following the restructure if the interest rate at the time of restructure is greater than or equal to the rate the Company was willing to accept for a new extension of credit with similar risk and the loan is in compliance with its modified terms. |
Acquired Loans | Acquired Loans The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan Loans acquired through business combinations that meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, the Company then establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Core deposit intangible (“CDI”) is a measure of the value of checking and savings deposit relationships acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed 10 years. Significantly all CDI is amortized using the sum of the years’ digits method. The remaining other intangible assets consist of customer relationship and employment agreement intangible assets and are amortized over their estimated useful lives of 5 years. |
Stock-Based Compensation | Stock-Based Compensation Company sponsors an equity incentive plan under which options to acquire shares of the Company’s common stock may be granted periodically to all full-time employees and directors of the Company or its affiliates at a specific exercise price. Shares are issued out of authorized and unissued common shares that have been reserved for issuance under such plan. Compensation cost is measured based on the estimated fair value of the award at the grant date and is recognized in earnings on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the date of grant using a closed form option valuation (“Black-Scholes”) option pricing model. This model requires assumptions as to the expected stock volatility, dividends, terms and risk-free rates. The expected volatility is based on the combination of the Company’s historical volatility and the volatility of comparable peer banks. The expected term represents the period of time that options are expected to be outstanding from the grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the appropriate life of each stock option |
Recent Accounting Pronouncements | Recent Accounting Pronouncements FASB ASC constitutes GAAP for nongovernmental entities. Updates to ASC are prescribed in Accounting Standards Updates (“ASU”), which are not authoritative until incorporated into ASC ASU 2021-01, Reference Rate Reform (Topic 848) ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU No. 2020-04 and it provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the Company’s consolidated financial statements. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). In December 2019, the FASB issued ASU 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material effect on the Company’s financial statements. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This ASU simplifies the accounting for goodwill impairment for all entities by eliminating Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company elected to early adopt ASU 2017-04 on January 1, 2020, and it did not have a material impact on its financial statements. ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity securities, and debt securities. ASU 2016-13 is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact adoption of ASU 2016-13 and the CECL methodology for estimating the allowance for credit losses will have on its consolidated operating results and financial condition. ASU 2016-02 Leases (Topic 842). The FASB amended existing guidance that requires that lessees recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company is in the process of determining the effect of the standard on its consolidated operating results and financial condition. These amendments are effective for the Company for annual periods beginning after December 15, 2021 and interim periods beginning after December 15, 2022. |
Subsequent Events | Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Subsidiaries Information | Nature of Operations Wholly Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES [Abstract] | |
Amortized Cost and Fair Value of Securities, with Gross Unrealized Gains and Losses | The amortized cost and fair value of securities, with gross unrealized gains and losses, at period-end follow: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30 , 2021 Available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal 267,615 11,327 (127 ) 278,815 Mortgage-backed securities 342,490 8,291 (3,206 ) 347,575 Collateralized mortgage obligations 106,976 944 — 107,920 Asset-backed and other amortizing securities 29,316 1,575 — 30,891 Other securities 12,000 412 — 12,412 $ 758,397 $ 22,549 $ (3,333 ) $ 777,613 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2020 Available for sale: U.S. government and agencies $ 4,750 $ 3 $ — $ 4,753 State and municipal 261,023 11,704 (120 ) 272,607 Mortgage-backed securities 359,542 14,014 (194 ) 373,362 Collateralized mortgage obligations 107,175 — (460 ) 106,715 Asset-backed and other amortizing securities 31,509 2,063 — 33,572 Other securities 12,000 91 (13 ) 12,078 $ 775,999 $ 27,875 $ (787 ) $ 803,087 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities at June 30, 2021 are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date. Available for Sale Amortized Cost Fair Value Within 1 year $ 1,130 $ 1,137 After 1 year through 5 years 5,325 5,646 After 5 years through 10 years 25,944 27,024 After 10 years 247,216 257,420 Other 478,782 486,386 $ 758,397 $ 777,613 |
Securities with Unrealized Losses Segregated by the Period in a Loss Position | The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position: Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30 , 2021 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal 23,074 127 — — 23,074 127 Mortgage-backed securities 116,659 3,206 — — 116,659 3,206 Collateralized mortgage obligations — — — — — — Asset-backed and other amortizing securities — — — — — — Other securities — — — — — — $ 139,733 $ 3,333 $ — $ — $ 139,733 $ 3,333 December 31 , 2020 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal — 120 — — — 120 Mortgage-backed securities 93,482 194 — — 93,482 194 Collateralized mortgage obligations 106,715 460 — — 106,715 460 Asset-backed and other amortizing securities — — — — — — Other securities 3,486 13 — — 3,486 13 $ 203,683 $ 787 $ — $ — $ 203,683 $ 787 |
LOANS HELD FOR INVESTMENT (Tabl
LOANS HELD FOR INVESTMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of Loans by Category | Loans held for investment are summarized by category as of the periods presented below: June 30, 2021 December 31, 2020 Commercial real estate $ 682,017 $ 663,344 Commercial - specialized 323,576 311,686 Commercial - general 492,314 518,309 Consumer: 1-4 family residential 375,302 360,315 Auto loans 230,570 205,840 Other consumer 68,098 67,595 Construction 131,585 94,494 2,303,462 2,221,583 Allowance for loan losses (42,963 ) (45,553 ) Loans, net $ 2,260,499 $ 2,176,030 |
Activity in Allowance for Loan Losses and Investment in Loans Disaggregated Based on Method of Evaluating Impairment | The following table details the activity in the allowance for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2021 Commercial real estate $ 19,020 $ (1,732 ) $ — $ — $ 17,288 Commercial - specialized 5,458 (653 ) (5 ) 23 4,823 Commercial - general 8,979 (83 ) (34 ) 86 8,948 Consumer: 1-4 family residential 4,890 172 — 2 5,064 Auto loans 3,891 13 (139 ) 50 3,815 Other consumer 1,480 (12 ) (119 ) 85 1,434 Construction 1,301 288 — 2 1,591 Total $ 45,019 $ (2,007 ) $ (297 ) $ 248 $ 42,963 For the three months ended June 30 , 2020 Commercial real estate $ 7,192 $ 7,856 $ — $ 108 $ 15,156 Commercial - specialized 4,555 2,872 (836 ) 23 6,614 Commercial - general 7,980 1,773 (532 ) 72 9,293 Consumer: 1-4 family residential 2,744 181 — 1 2,926 Auto loans 4,312 (168 ) (262 ) 57 3,939 Other consumer 1,639 205 (383 ) 179 1,640 Construction 652 414 — 1 1,067 Total $ 29,074 $ 13,133 $ (2,013 ) $ 441 $ 40,635 Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2021 Commercial real estate $ 18,962 $ (1,674 ) $ — $ — $ 17,288 Commercial - specialized 5,760 (1,032 ) (5 ) 100 4,823 Commercial - general 9,227 (32 ) (377 ) 130 8,948 Consumer: 1-4 family residential 4,646 467 (52 ) 3 5,064 Auto loans 4,226 (167 ) (327 ) 83 3,815 Other consumer 1,671 (6 ) (377 ) 146 1,434 Construction 1,061 526 — 4 1,591 Total $ 45,553 $ (1,918 ) $ (1,138 ) $ 466 $ 42,963 For the six months ended June 30 , 2020 Commercial real estate $ 5,049 $ 9,892 $ — $ 215 $ 15,156 Commercial - specialized 2,287 5,090 (850 ) 87 6,614 Commercial - general 9,609 975 (1,380 ) 89 9,293 Consumer: 1-4 family residential 2,093 832 — 1 2,926 Auto loans 3,385 1,149 (704 ) 109 3,939 Other consumer 1,341 796 (749 ) 252 1,640 Construction 433 633 — 1 1,067 Total $ 24,197 $ 19,367 $ (3,683 ) $ 754 $ 40,635 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment: Recorded Investment Allowance for Loan Losses Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated June 30 , 2021 Commercial real estate $ 2,529 $ 679,488 $ — $ 17,288 Commercial - specialized — 323,576 — 4,823 Commercial - general 5,709 486,605 640 8,308 Consumer: 1-4 family residential 2,297 373,005 120 4,944 Auto loans — 230,570 — 3,815 Other consumer — 68,098 — 1,434 Construction — 131,585 — 1,591 Total $ 10,535 $ 2,292,927 $ 760 $ 42,203 December 31 , 2020 Commercial real estate $ 6,273 $ 657,071 $ 580 $ 18,382 Commercial - specialized — 311,686 — 5,760 Commercial - general 4,626 513,683 515 8,712 Consumer: 1-4 family residential 2,122 358,193 — 4,646 Auto loans — 205,840 — 4,226 Other consumer — 67,595 — 1,671 Construction — 94,494 — 1,061 Total $ 13,021 $ 2,208,562 $ 1,095 $ 44,458 |
Impaired Loan Information | Impaired loan information follows: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment June 30 , 2021 Commercial real estate $ 2,529 $ 2,529 $ — $ 2,529 $ — $ 4,401 Commercial - specialized — — — — — — Commercial - general 5,709 1,567 4,142 5,709 640 5,168 Consumer: 1-4 family residential 2,716 1,508 789 2,297 120 2,210 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 10,954 $ 5,604 $ 4,931 $ 10,535 $ 760 $ 11,779 December 31 , 2020 Commercial real estate $ 6,273 $ 3,673 $ 2,600 $ 6,273 $ 580 $ 3,666 Commercial - specialized — — — — — 673 Commercial - general 4,626 3,364 1,262 4,626 515 3,400 Consumer: 1-4 family residential 2,541 2,122 — 2,122 — 2,155 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 13,440 $ 9,159 $ 3,862 $ 13,021 $ 1,095 $ 9,894 |
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans | The table below provides an age analysis on accruing past-due loans and nonaccrual loans: 30-89 Days Past Due 90 Days or More Past Due Nonaccrual June 30 , 2021 Commercial real estate $ 5,561 $ 44 $ 2,559 Commercial - specialized 230 — 169 Commercial - general 1,027 93 6,008 Consumer: 1-4 family residential 590 1,156 2,154 Auto loans 325 29 40 Other consumer 432 72 48 Construction 460 — 166 Total $ 8,625 $ 1,394 $ 11,144 December 31 , 2020 Commercial real estate $ 914 $ 34 $ 6,311 Commercial - specialized 241 — 272 Commercial - general 1,891 149 5,489 Consumer: 1-4 family residential 2,089 906 1,595 Auto loans 738 38 — Other consumer 481 119 51 Construction 206 — — Total $ 6,560 $ 1,246 $ 13,718 |
Summary of Internal Classifications of Loans | The following table summarizes the internal classifications of loans: Pass Special Mention Substandard Doubtful Total June 30 , 2021 Commercial real estate $ 626,495 $ — $ 55,522 $ — $ 682,017 Commercial - specialized 317,696 — 5,880 — 323,576 Commercial - general 482,631 1,685 7,998 — 492,314 Consumer: 1-4 family residential 367,631 — 7,671 — 375,302 Auto loans 229,175 — 1,395 — 230,570 Other consumer 67,802 — 296 — 68,098 Construction 131,207 — 378 — 131,585 Total $ 2,222,637 $ 1,685 $ 79,140 $ — $ 2,303,462 December 31 , 2020 Commercial real estate $ 602,250 $ — $ 61,094 $ — $ 663,344 Commercial - specialized 303,831 — 7,855 — 311,686 Commercial - general 510,543 — 7,766 — 518,309 Consumer: 1-4 family residential 352,930 — 7,385 — 360,315 Auto loans 204,301 — 1,539 — 205,840 Other consumer 67,216 — 379 — 67,595 Construction 94,494 — — — 94,494 Total $ 2,135,565 $ — $ 86,018 $ — $ 2,221,583 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
GOODWILL AND INTANGIBLES [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets are summarized below: June 30, 2021 December 31, 2020 Beginning goodwill $ 19,508 $ 18,757 Arising from business combinations — — Measurement period acquisition adjustment — 751 Ending goodwill $ 19,508 $ 19,508 Amortized intangible assets Customer relationship intangibles $ 6,679 $ 6,679 Less: Accumulated amortization (1,943 ) (1,396 ) 4,736 5,283 Other intangibles 2,972 2,309 Arising from business combinations — 663 Less: Accumulated amortization (990 ) (693 ) 1,982 2,279 Other intangible assets, net $ 6,718 $ 7,562 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock Option Activity | A summary of activity in the Plan is presented in the table below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Six Months Ended June 30 , 2021 Outstanding at beginning of year: 1,554,894 $ 14.77 $ 12,997 Granted 214,452 19.46 787 Exercised (3,666 ) 17.94 (19 ) Forfeited — — — Expired — — — Balance, June 30 2021 1,765,680 $ 15.33 5.98 $ 13,765 Exercisable at end of period 1,114,890 $ 13.15 5.17 $ 11,121 Vested at end of period 1,114,890 $ 13.15 5.17 $ 11,121 |
Summary of Assumptions Used to Calculate Fair Value of Awards | A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below: Six June 30 2021 2020 Expected volatility 41.20% to 41.32% 27.46 % Expected dividend yield 1.00 % 0.70 % Expected term (years) 6.1 6.2 6.0 to 6.2 years Risk-free interest rate 0.52% to 0.83% 1.44 % Weighted average grant date fair value $ 7.07 $ 5.68 |
Summary of Activity of Restricted Stock Units | A summary of activity in the Plan is presented in the table below: Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2021 Outstanding at beginning of year: 62,476 $ 19.47 Granted 6,370 19.62 Vested (24,805 ) 19.70 Forfeited (1,274 ) 19.62 Balance, June 30 2021 42,767 $ 19.36 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Financial Instrument Whose Contract Amounts Represent Credit Risk Outstanding | Financial instruments whose contract amounts represent credit risk outstanding follow: June 30, 2021 December 31, 2020 Commitments to grant loans and unfunded commitments under lines of credit $ 585,233 $ 417,798 Standby letters of credit 9,432 10,481 |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
CAPITAL AND REGULATORY MATTERS [Abstract] | |
Actual Capital Amounts and Ratios | The Company and its bank subsidiary’s actual capital amounts and ratios follow: Actual Minimum Required Under BASEL III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30 , 2021 Total Capital to Risk Weighted Assets: Consolidated $ 502,095 18.95 % $ 278,637 10.50 % N/A N/A City Bank 413,791 15.59 % 281,942 10.50 % $ 268,516 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 393,164 14.84 % 225,563 8.50 % N/A N/A City Bank 380,498 14.34 % 228,239 8.50 % 214,813 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 348,164 13.14 % 185,758 7.00 % N/A N/A City Bank 380,498 14.34 % 187,961 7.00 % 174,536 6.50 % Tier I Capital to Average Assets: Consolidated 393,164 10.54 % 150,322 4.00 % N/A N/A City Bank 380,498 10.20 % 150,240 4.00 % 186,489 5.00 % December 31 , 2020 Total Capital to Risk Weighted Assets: Consolidated $ 473,425 19.08 % $ 260,531 10.50 % N/A N/A City Bank 404,138 16.29 % 260,481 10.50 % $ 248,077 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 366,639 14.78 % 210,906 8.50 % N/A N/A City Bank 372,947 15.03 % 210,866 8.50 % 198,462 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 321,639 12.96 % 173,688 7.00 % N/A N/A City Bank 372,947 15.03 % 173,654 7.00 % 161,250 6.50 % Tier I Capital to Average Assets: Consolidated 366,639 10.24 % 144,347 4.00 % N/A N/A City Bank 372,947 10.42 % 144,282 4.00 % 178,999 5.00 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVES [Abstract] | |
Fair Value Hedges | The following table reflects the fair value hedges included in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 10,011 $ 644 $ 10,178 $ 927 Included in other assets: Interest rate swaps related to fixed rate loans $ — $ — $ — $ — The following table reflects the cash flow hedges included in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Cash flow swaps related to state and municipal securities $ — $ — $ 68,485 $ 1,643 Included in other assets: Cash flow swaps related to state and municipal securities $ 123,760 $ 4,084 $ 55,275 $ 1,618 |
Fair Value of Derivatives in Consolidated Balance Sheets | The following table reflects the amount and fair value of mortgage banking derivatives in the consolidated balance sheets: June 30, 2021 December 31, 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Forward contracts related to mortgage loans held for sale $ — $ — $ — $ — Interest rate lock commitments 161,493 2,967 210,716 5,115 Total included in other assets $ 161,493 $ 2,967 $ 210,716 $ 5,115 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 149,144 $ 646 $ 203,669 $ 1,787 Interest rate lock commitments — — — — Total included in other liabilities $ 149,144 $ 646 $ 203,669 $ 1,787 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Factors Used in Earnings Per Share Computation | The factors used in the earnings per share computation follow: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 13,650 $ 5,615 $ 28,810 $ 12,698 Weighted average common shares outstanding - basic 18,039,553 18,061,705 18,054,288 18,052,405 Effect of dilutive securities: Stock-based compensation awards 513,497 162,925 484,881 290,871 Weighted average common shares outstanding - diluted 18,553,050 18,224,630 18,539,169 18,343,276 Basic earnings per share $ 0.76 $ 0.31 $ 1.60 $ 0.70 Diluted earnings per share $ 0.74 $ 0.31 $ 1.55 $ 0.69 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION [Abstract] | |
Financial Results by Reportable Segment | Financial results by reportable segment are detailed below: Three Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 29,593 $ — $ 29,593 Provision for loan loss 2,007 — 2,007 Noninterest income 21,076 1,174 22,250 Noninterest expense (35,665 ) (1,113 ) (36,778 ) Income before income taxes 17,011 61 17,072 Income tax (expense) benefit (3,409 ) (13 ) (3,422 ) Net income $ 13,602 $ 48 $ 13,650 Three Months Ended June 30 , 2020 Banking Insurance Consolidated Net interest income $ 30,448 $ — $ 30,448 Provision for loan loss (13,133 ) — (13,133 ) Noninterest income 23,896 1,000 24,896 Noninterest expense (34,061 ) (1,146 ) (35,207 ) Income before income taxes 7,150 (146 ) 7,004 Income tax (expense) benefit (1,358 ) (31 ) (1,389 ) Net income $ 5,792 $ (177 ) $ 5,615 Financial results by reportable segment are detailed below: Six Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 59,137 $ — $ 59,137 Provision for loan loss 1,918 — 1,918 Noninterest income 46,493 2,257 48,750 Noninterest expense (71,620 ) (2,215 ) (73,835 ) Income before income taxes 35,928 42 35,970 Income tax (expense) benefit (7,150 ) (10 ) (7,160 ) Net income $ 28,778 $ 32 $ 28,810 Six Months Ended June 30 , 2020 Banking Insurance Consolidated Net interest income $ 60,647 $ — $ 60,647 Provision for loan loss (19,367 ) — (19,367 ) Noninterest income 41,657 2,114 43,771 Noninterest expense (66,892 ) (2,326 ) (69,218 ) Income before income taxes 16,045 (212 ) 15,833 Income tax (expense) benefit (3,117 ) (18 ) (3,135 ) Net income $ 12,928 $ (230 ) $ 12,698 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE DISCLOSURES [Abstract] | |
Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis | The following table summarizes fair value measurements: Level 1 Level 2 Level 3 Total June 30 , 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal — 278,815 — 278,815 Mortgage-backed securities — 347,575 — 347,575 Collateralized mortgage obligations — 107,920 — 107,920 Asset-backed and other amortizing securities — 30,891 — 30,891 Other securities — 12,412 — 12,412 Loans held for sale (mandatory) — 51,486 — 51,486 Mortgage servicing rights — — 15,977 15,977 Asset derivatives — 7,051 — 7,051 Liability derivatives — (1,290 ) — (1,290 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 9,775 9,775 Other real estate owned — — 1,146 1,146 December 31, 2020 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ 4,753 $ — $ 4,753 State and municipal — 272,607 — 272,607 Mortgage-backed securities — 373,362 — 373,362 Collateralized mortgage obligations — 106,715 — 106,715 Asset-backed and other amortizing securities — 33,572 — 33,572 Other securities — 12,078 — 12,078 Loans held for sale (mandatory) — 80,174 — 80,174 Mortgage servicing rights — — 9,049 9,049 Asset derivatives — 6,734 — 6,734 Liability derivatives — (4,357 ) — (4,357 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 11,926 11,926 Other real estate owned — — 1,353 1,353 |
Quantitative Information about Non-Recurring Level 3 Fair Value Measurements | The following table presents quantitative information about non-recurring Level 3 fair value measurements: Fair Value Valuation Techniques Unobservable Inputs Range of Discounts June 30 , 2021 12 12 Impaired loans $ 9,775 Third party appraisals or inspections Collateral discounts and selling costs 0%-100 % Other real estate owned 1,146 Third party appraisals or inspections Collateral discounts and selling costs 15%-66 % Mortgage servicing rights 15,977 Discounted cash flows Conditional prepayment rate 5.69 % Discount rate 9.15 % December 31, 2020 Impaired loans $ 11,926 Third party appraisals or inspections Collateral discounts and selling costs 0%-100 % Other real estate owned 1,353 Third party appraisals or inspections Collateral discounts and selling costs 15%-66 % Mortgage servicing rights 9,049 Discounted cash flows Conditional prepayment rate 4.48 % Discount rate 9.72 % |
Estimated Fair Values, and Related Carrying Amounts of Financial Instruments | The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows: Carrying Amount Level 1 Level 2 Level 3 Total Fair Value June 30 , 2021 Financial assets: Cash and cash equivalents $ 383,949 $ 383,949 $ — $ — $ 383,949 Loans, net 2,260,499 — — 2,305,203 2,305,203 Accrued interest receivable 11,981 — 11,981 — 11,981 Bank-owned life insurance 71,631 — 71,361 — 71,361 Financial liabilities: Deposits $ 3,158,495 $ 2,931,301 $ 229,785 $ — $ 3,161,086 Accrued interest payable 1,951 — 1,951 — 1,951 Notes payable & other borrowings — — — — — Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,682 — 77,846 — 77,846 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2020 Financial assets: Cash and cash equivalents $ 300,307 $ 300,307 $ — $ — $ 300,307 Loans, net 2,176,030 — — 2,179,573 2,179,573 Accrued interest receivable 15,233 — 15,233 — 15,233 Bank-owned life insurance 70,731 — 70,731 — 70,731 Financial liabilities: Deposits $ 2,974,351 $ 2,649,830 $ 329,609 $ — $ 2,979,439 Accrued interest payable 2,113 — 2,113 — 2,113 Notes payable & other borrowings 75,000 — 75,000 — 75,000 Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,589 — 76,889 — 76,889 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BUSINESS COMBINATIONS [Abstract] | |
Fair Value of the Assets Acquired and Liabilities Assumed | In June 2020, Windmark acquired the operating assets of a crop insurance agency in Nebraska for $687 thousand. Fair value of the assets acquired in this transaction as of the closing date are as follows: Cash paid $ 687 Assets acquired: Premises and equipment, net $ 24 Customer list 512 Other intangible assets 151 Total assets acquired $ 687 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans [Abstract] | ||
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status | 90 days | |
Goodwill and Other Intangible Assets [Abstract] | ||
Impairment loss | $ 0 | $ 0 |
Minimum [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Threshold balance of loan to be specifically reviewed for impairment | $ 250 | |
City Bank [Member] | Bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | City Bank | |
Windmark Insurance Agency, Inc. ("Windmark") [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | Windmark Insurance Agency, Inc. (“Windmark”) | |
Ruidoso Retail, Inc. [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | Ruidoso Retail, Inc. | |
CB Provence, LLC [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | CB Provence, LLC | |
CBT Brushy Creek, LLC [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | CBT Brushy Creek, LLC | |
CBT Properties, LLC [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Consolidated Subsidiaries | CBT Properties, LLC | |
South Plains Financial Capital Trusts (SPFCT) III-V [Member] | Non-bank Subsidiary [Member] | ||
Subsidiaries Information [Abstract] | ||
Wholly Owned, Equity Method Subsidiaries | South Plains Financial Capital Trusts (SPFCT) III-V | |
Substandard or Worse [Member] | Minimum [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Threshold balance of loan to be specifically reviewed for impairment | $ 250 | |
Customer Relationships [Member] | ||
Goodwill and Other Intangible Assets [Abstract] | ||
Estimated useful lives | 5 years | |
Employment Agreements [Member] | ||
Goodwill and Other Intangible Assets [Abstract] | ||
Estimated useful lives | 5 years | |
Core Deposits Intangible [Member] | Maximum [Member] | ||
Goodwill and Other Intangible Assets [Abstract] | ||
Estimated useful lives | 10 years |
SECURITIES, Available for Sale
SECURITIES, Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for sale [Abstract] | ||
Amortized cost | $ 758,397 | $ 775,999 |
Gross unrealized gains | 22,549 | 27,875 |
Gross unrealized losses | (3,333) | (787) |
Fair value | 777,613 | 803,087 |
U.S. Government and Agencies [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 0 | 4,750 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | 0 | 0 |
Fair value | 0 | 4,753 |
State and Municipal [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 267,615 | 261,023 |
Gross unrealized gains | 11,327 | 11,704 |
Gross unrealized losses | (127) | (120) |
Fair value | 278,815 | 272,607 |
Mortgage-backed Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 342,490 | 359,542 |
Gross unrealized gains | 8,291 | 14,014 |
Gross unrealized losses | (3,206) | (194) |
Fair value | 347,575 | 373,362 |
Collateralized Mortgage Obligations [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 106,976 | 107,175 |
Gross unrealized gains | 944 | 0 |
Gross unrealized losses | 0 | (460) |
Fair value | 107,920 | 106,715 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 29,316 | 31,509 |
Gross unrealized gains | 1,575 | 2,063 |
Gross unrealized losses | 0 | 0 |
Fair value | 30,891 | 33,572 |
Other Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 12,000 | 12,000 |
Gross unrealized gains | 412 | 91 |
Gross unrealized losses | 0 | (13) |
Fair value | $ 12,412 | $ 12,078 |
SECURITIES, Amortized Cost and
SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for Sale, Amortized Cost [Abstract] | ||
Within 1 year | $ 1,130 | |
After 1 year through 5 years | 5,325 | |
After 5 years through 10 years | 25,944 | |
After 10 years | 247,216 | |
Other | 478,782 | |
Amortized cost | 758,397 | $ 775,999 |
Available for Sale, Fair Value [Abstract] | ||
Within 1 year | 1,137 | |
After 1 year through 5 years | 5,646 | |
After 5 years through 10 years | 27,024 | |
After 10 years | 257,420 | |
Other | 486,386 | |
Fair value | $ 777,613 | $ 803,087 |
SECURITIES, Securities Transfer
SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)Security | Dec. 31, 2020USD ($)Security | |
SECURITIES [Abstract] | ||
Holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity | Security | 0 | 0 |
Carrying value of securities pledged to collateralize public deposits and for other purposes | $ | $ 331.4 | $ 292.2 |
SECURITIES, Securities with Unr
SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands | Jun. 30, 2021USD ($)Security | Dec. 31, 2020USD ($) |
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | $ 139,733 | $ 203,683 |
12 months or more | 0 | 0 |
Total | 139,733 | 203,683 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 3,333 | 787 |
12 months or more | 0 | 0 |
Total | $ 3,333 | 787 |
Number of securities with an unrealized loss | Security | 18 | |
U.S. Government and Agencies [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
State and Municipal [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 23,074 | 0 |
12 months or more | 0 | 0 |
Total | 23,074 | 0 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 127 | 120 |
12 months or more | 0 | 0 |
Total | 127 | 120 |
Mortgage-backed Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 116,659 | 93,482 |
12 months or more | 0 | 0 |
Total | 116,659 | 93,482 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 3,206 | 194 |
12 months or more | 0 | 0 |
Total | 3,206 | 194 |
Collateralized Mortgage Obligations [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 106,715 |
12 months or more | 0 | 0 |
Total | 0 | 106,715 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 460 |
12 months or more | 0 | 0 |
Total | 0 | 460 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Other Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 3,486 |
12 months or more | 0 | 0 |
Total | 0 | 3,486 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 13 |
12 months or more | 0 | 0 |
Total | $ 0 | $ 13 |
LOANS HELD FOR INVESTMENT, Summ
LOANS HELD FOR INVESTMENT, Summary of Loans by Category (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2021USD ($)Category | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | $ 2,303,462 | $ 2,221,583 | ||||
Allowance for loan losses | (42,963) | $ (45,019) | (45,553) | $ (40,635) | $ (29,074) | $ (24,197) |
Loans, net | 2,260,499 | 2,176,030 | ||||
Commercial Real Estate [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 682,017 | 663,344 | ||||
Allowance for loan losses | $ (17,288) | (19,020) | (18,962) | (15,156) | (7,192) | (5,049) |
Commercial [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Number of sub-categories of loans | Category | 2 | |||||
Commercial [Member] | Specialized [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | $ 323,576 | 311,686 | ||||
Allowance for loan losses | (4,823) | (5,458) | (5,760) | (6,614) | (4,555) | (2,287) |
Commercial [Member] | General [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 492,314 | 518,309 | ||||
Allowance for loan losses | (8,948) | (8,979) | (9,227) | (9,293) | (7,980) | (9,609) |
Consumer [Member] | 1-4 Family Residential [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 375,302 | 360,315 | ||||
Allowance for loan losses | (5,064) | (4,890) | (4,646) | (2,926) | (2,744) | (2,093) |
Consumer [Member] | Auto Loans [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 230,570 | 205,840 | ||||
Allowance for loan losses | (3,815) | (3,891) | (4,226) | (3,939) | (4,312) | (3,385) |
Consumer [Member] | Other Consumer [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 68,098 | 67,595 | ||||
Allowance for loan losses | (1,434) | (1,480) | (1,671) | (1,640) | (1,639) | (1,341) |
Construction [Member] | ||||||
Summary of Loans by Category [Abstract] | ||||||
Loans, gross | 131,585 | 94,494 | ||||
Allowance for loan losses | $ (1,591) | $ (1,301) | $ (1,061) | $ (1,067) | $ (652) | $ (433) |
LOANS HELD FOR INVESTMENT, Acti
LOANS HELD FOR INVESTMENT, Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
LOANS HELD FOR INVESTMENT [Abstract] | |||||
Percentage of allowance for loan losses to loans held for investment | 1.87% | 1.87% | 2.05% | ||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | $ 45,019 | $ 29,074 | $ 45,553 | $ 24,197 | |
Provision for loan losses | (2,007) | 13,133 | (1,918) | 19,367 | |
Charge-offs | (297) | (2,013) | (1,138) | (3,683) | |
Recoveries | 248 | 441 | 466 | 754 | |
Ending Balance | 42,963 | 40,635 | 42,963 | 40,635 | |
Commercial Real Estate [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 19,020 | 7,192 | 18,962 | 5,049 | |
Provision for loan losses | (1,732) | 7,856 | (1,674) | 9,892 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 108 | 0 | 215 | |
Ending Balance | 17,288 | 15,156 | 17,288 | 15,156 | |
Commercial [Member] | Specialized [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 5,458 | 4,555 | 5,760 | 2,287 | |
Provision for loan losses | (653) | 2,872 | (1,032) | 5,090 | |
Charge-offs | (5) | (836) | (5) | (850) | |
Recoveries | 23 | 23 | 100 | 87 | |
Ending Balance | 4,823 | 6,614 | 4,823 | 6,614 | |
Commercial [Member] | General [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 8,979 | 7,980 | 9,227 | 9,609 | |
Provision for loan losses | (83) | 1,773 | (32) | 975 | |
Charge-offs | (34) | (532) | (377) | (1,380) | |
Recoveries | 86 | 72 | 130 | 89 | |
Ending Balance | 8,948 | 9,293 | 8,948 | 9,293 | |
Consumer [Member] | 1-4 Family Residential [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 4,890 | 2,744 | 4,646 | 2,093 | |
Provision for loan losses | 172 | 181 | 467 | 832 | |
Charge-offs | 0 | 0 | (52) | 0 | |
Recoveries | 2 | 1 | 3 | 1 | |
Ending Balance | 5,064 | 2,926 | 5,064 | 2,926 | |
Consumer [Member] | Auto Loans [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 3,891 | 4,312 | 4,226 | 3,385 | |
Provision for loan losses | 13 | (168) | (167) | 1,149 | |
Charge-offs | (139) | (262) | (327) | (704) | |
Recoveries | 50 | 57 | 83 | 109 | |
Ending Balance | 3,815 | 3,939 | 3,815 | 3,939 | |
Consumer [Member] | Other Consumer [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 1,480 | 1,639 | 1,671 | 1,341 | |
Provision for loan losses | (12) | 205 | (6) | 796 | |
Charge-offs | (119) | (383) | (377) | (749) | |
Recoveries | 85 | 179 | 146 | 252 | |
Ending Balance | 1,434 | 1,640 | 1,434 | 1,640 | |
Construction [Member] | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Beginning Balance | 1,301 | 652 | 1,061 | 433 | |
Provision for loan losses | 288 | 414 | 526 | 633 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 1 | 4 | 1 | |
Ending Balance | $ 1,591 | $ 1,067 | $ 1,591 | $ 1,067 |
LOANS HELD FOR INVESTMENT, Inve
LOANS HELD FOR INVESTMENT, Investment in loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Recorded Investment [Abstract] | ||
Individually Evaluated | $ 10,535 | $ 13,021 |
Collectively Evaluated | 2,292,927 | 2,208,562 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 760 | 1,095 |
Collectively Evaluated | 42,203 | 44,458 |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 2,529 | 6,273 |
Collectively Evaluated | 679,488 | 657,071 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 580 |
Collectively Evaluated | 17,288 | 18,382 |
Commercial [Member] | Specialized [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 323,576 | 311,686 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 4,823 | 5,760 |
Commercial [Member] | General [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 5,709 | 4,626 |
Collectively Evaluated | 486,605 | 513,683 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 640 | 515 |
Collectively Evaluated | 8,308 | 8,712 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 2,297 | 2,122 |
Collectively Evaluated | 373,005 | 358,193 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 120 | 0 |
Collectively Evaluated | 4,944 | 4,646 |
Consumer [Member] | Auto Loans [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 230,570 | 205,840 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 3,815 | 4,226 |
Consumer [Member] | Other Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 68,098 | 67,595 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 1,434 | 1,671 |
Construction [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 131,585 | 94,494 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | $ 1,591 | $ 1,061 |
LOANS HELD FOR INVESTMENT, Impa
LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | $ 10,954 | $ 13,440 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 5,604 | 9,159 |
Recorded Investment With Allowance | 4,931 | 3,862 |
Total Recorded Investment | 10,535 | 13,021 |
Related Allowance | 760 | 1,095 |
Average Recorded Investment | 11,779 | 9,894 |
Minimum [Member] | ||
Recorded Investment [Abstract] | ||
Threshold balance of loan to be specifically reviewed for impairment | 250 | |
Commercial Real Estate [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 2,529 | 6,273 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 2,529 | 3,673 |
Recorded Investment With Allowance | 0 | 2,600 |
Total Recorded Investment | 2,529 | 6,273 |
Related Allowance | 0 | 580 |
Average Recorded Investment | 4,401 | 3,666 |
Commercial [Member] | Specialized [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 673 |
Commercial [Member] | General [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 5,709 | 4,626 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 1,567 | 3,364 |
Recorded Investment With Allowance | 4,142 | 1,262 |
Total Recorded Investment | 5,709 | 4,626 |
Related Allowance | 640 | 515 |
Average Recorded Investment | 5,168 | 3,400 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 2,716 | 2,541 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 1,508 | 2,122 |
Recorded Investment With Allowance | 789 | 0 |
Total Recorded Investment | 2,297 | 2,122 |
Related Allowance | 120 | 0 |
Average Recorded Investment | 2,210 | 2,155 |
Consumer [Member] | Auto Loans [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Construction [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Age
LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)Point | Dec. 31, 2020USD ($) | |
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | $ 2,303,462 | $ 2,221,583 |
Nonaccrual | $ 11,144 | 13,718 |
Number of points on a grading scale for loans | Point | 13 | |
30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | $ 8,625 | 6,560 |
90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 1,394 | 1,246 |
Commercial Real Estate [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 682,017 | 663,344 |
Nonaccrual | 2,559 | 6,311 |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 5,561 | 914 |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 44 | 34 |
Commercial [Member] | Specialized [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 323,576 | 311,686 |
Nonaccrual | 169 | 272 |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 230 | 241 |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 0 | 0 |
Commercial [Member] | General [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 492,314 | 518,309 |
Nonaccrual | 6,008 | 5,489 |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 1,027 | 1,891 |
Commercial [Member] | General [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 93 | 149 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 375,302 | 360,315 |
Nonaccrual | 2,154 | 1,595 |
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 590 | 2,089 |
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 1,156 | 906 |
Consumer [Member] | Auto Loans [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 230,570 | 205,840 |
Nonaccrual | 40 | 0 |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 325 | 738 |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 29 | 38 |
Consumer [Member] | Other Consumer [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 68,098 | 67,595 |
Nonaccrual | 48 | 51 |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 432 | 481 |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 72 | 119 |
Construction [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 131,585 | 94,494 |
Nonaccrual | 166 | 0 |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | 460 | 206 |
Construction [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Su_2
LOANS HELD FOR INVESTMENT, Summary of Internal Classifications of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans by Internal Classifications [Abstract] | ||
Loans | $ 2,303,462 | $ 2,221,583 |
Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 2,222,637 | 2,135,565 |
Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 1,685 | 0 |
Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 79,140 | 86,018 |
Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 682,017 | 663,344 |
Commercial Real Estate [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 626,495 | 602,250 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 55,522 | 61,094 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial [Member] | Specialized [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 323,576 | 311,686 |
Commercial [Member] | Specialized [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 317,696 | 303,831 |
Commercial [Member] | Specialized [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial [Member] | Specialized [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 5,880 | 7,855 |
Commercial [Member] | Specialized [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial [Member] | General [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 492,314 | 518,309 |
Commercial [Member] | General [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 482,631 | 510,543 |
Commercial [Member] | General [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 1,685 | 0 |
Commercial [Member] | General [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 7,998 | 7,766 |
Commercial [Member] | General [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 375,302 | 360,315 |
Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 367,631 | 352,930 |
Consumer [Member] | 1-4 Family Residential [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | 1-4 Family Residential [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 7,671 | 7,385 |
Consumer [Member] | 1-4 Family Residential [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 230,570 | 205,840 |
Consumer [Member] | Auto Loans [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 229,175 | 204,301 |
Consumer [Member] | Auto Loans [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 1,395 | 1,539 |
Consumer [Member] | Auto Loans [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 68,098 | 67,595 |
Consumer [Member] | Other Consumer [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 67,802 | 67,216 |
Consumer [Member] | Other Consumer [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 296 | 379 |
Consumer [Member] | Other Consumer [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Construction [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 131,585 | 94,494 |
Construction [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 131,207 | 94,494 |
Construction [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Construction [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 378 | 0 |
Construction [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, COVI
LOANS HELD FOR INVESTMENT, COVID-19 Related Deferral and Modification (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)Loan | Dec. 31, 2020USD ($) | |
CARES Act [Abstract] | ||
TDRs | $ 0 | $ 0 |
Covid-19 [Member] | ||
CARES Act [Abstract] | ||
Percentage of loans modified under CARES Act | 1.60% | |
Number of outstanding loans subject to deferral and modification agreements | Loan | 6 | |
Amount of outstanding loans subject to deferral and modification agreements | $ 36,600 | |
Covid-19 [Member] | Short-term Deferral Modification Program [Member] | ||
CARES Act [Abstract] | ||
Amount of outstanding principal balance of loans modified under CARES Act | $ 0 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Other Intangible Assets [Abstract] | ||
Beginning goodwill | $ 19,508 | $ 18,757 |
Arising from business combinations | 0 | 0 |
Measurement period acquisition adjustment | 0 | 751 |
Ending goodwill | 19,508 | 19,508 |
Amortized Intangible Assets [Abstract] | ||
Other intangible assets, net | 6,718 | 7,562 |
Customer Relationship Intangibles [Member] | ||
Amortized Intangible Assets [Abstract] | ||
Other intangible assets, gross | 6,679 | 6,679 |
Less: Accumulated amortization | (1,943) | (1,396) |
Other intangible assets, net | 4,736 | 5,283 |
Other Intangibles [Member] | ||
Amortized Intangible Assets [Abstract] | ||
Other intangible assets, gross | 2,972 | 2,309 |
Arising from business combinations | 0 | 663 |
Less: Accumulated amortization | (990) | (693) |
Other intangible assets, net | $ 1,982 | $ 2,279 |
BORROWING ARRANGEMENTS, Subordi
BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 29, 2020 | Dec. 31, 2018 | |
Subordinated Debt Securities [Abstract] | ||||
Subordinated debt securities | $ 75,682 | $ 75,589 | ||
Subordinated Debt Securities Issued in December 2018 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 26,500 | |||
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 12,400 | |||
Debt instrument, maturity date | Dec. 31, 2028 | |||
Debt instrument, initial interest rate | 5.74% | |||
Debt instrument, period of fixed interest rate | 5 years | |||
Debt instrument, variable interest rate, floor | 4.50% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 14,100 | |||
Debt instrument, maturity date | Dec. 31, 2030 | |||
Debt instrument, initial interest rate | 6.41% | |||
Debt instrument, period of fixed interest rate | 7 years | |||
Debt instrument, variable interest rate, floor | 4.50% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt Securities Issued in September 29, 2020 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 50,000 | |||
Debt issuance cost | $ 926 | |||
Debt instrument, maturity date | Sep. 30, 2030 | |||
Debt instrument, initial interest rate | 4.50% | |||
Debt instrument, period of fixed interest rate | 5 years | |||
Subordinated Debt Securities Issued in September 29, 2020 [Member] | SOFR [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Term of variable rate | 3 months | |||
Basis spread on variable rate | 4.38% | |||
Subordinated Debt Securities Issued in September 29, 2020 [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 76,500 | |||
Debt issuance cost | 790 | |||
Subordinated debt securities | $ 75,700 |
BORROWING ARRANGEMENTS, Notes P
BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($)Advance | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)Advance | |
Detail of Advances from FHLB [Abstract] | |||||
Repayment of advances | $ 75,000 | $ 0 | |||
Federal Home Loan Bank Advance [Member] | |||||
Detail of Advances from FHLB [Abstract] | |||||
Number of advances | Advance | 3 | ||||
Original amount of advances | $ 0 | $ 75,000 | |||
Number of advances repaid | Advance | 2 | ||||
Repayment of advances | $ 25,000 | $ 50,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - 2019 Equity Incentive Plan [Member] | Mar. 06, 2019shares |
Equity Incentive Plan [Abstract] | |
Maximum aggregate number of shares of common stock that may be issued (in shares) | 2,300,000 |
Maximum [Member] | |
Equity Incentive Plan [Abstract] | |
Annual increase in number of shares that may be issued | 3.00% |
STOCK-BASED COMPENSATION, Stock
STOCK-BASED COMPENSATION, Stock Options Activity (Details) - 2019 Equity Incentive Plan [Member] - Stock Option [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding at beginning of year (in shares) | shares | 1,554,894 |
Granted (in shares) | shares | 214,452 |
Exercised (in shares) | shares | (3,666) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 1,765,680 |
Exercisable at end of period (in shares) | shares | 1,114,890 |
Vested at end of period (in shares) | shares | 1,114,890 |
Weighted-Average Exercise Price [Abstract] | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 14.77 |
Granted (in dollars per share) | $ / shares | 19.46 |
Exercised (in dollars per share) | $ / shares | 17.94 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Balance at end of period (in dollars per share) | $ / shares | 15.33 |
Exercisable at end of period (in dollars per share) | $ / shares | 13.15 |
Vested at end of period (in dollars per share) | $ / shares | $ 13.15 |
Weighted Average Remaining Contractual Life in Years [Abstract] | |
Options Outstanding | 5 years 11 months 23 days |
Exercisable at end of period | 5 years 2 months 1 day |
Vested at end of period | 5 years 2 months 1 day |
Aggregate Intrinsic Value [Abstract] | |
Outstanding at beginning of year | $ | $ 12,997 |
Granted | $ | 787 |
Exercised | $ | (19) |
Forfeited | $ | 0 |
Expired | $ | 0 |
Balance at end of period | $ | 13,765 |
Exercisable at end of period | $ | 11,121 |
Vested at end of period | $ | $ 11,121 |
STOCK-BASED COMPENSATION, Fair
STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 27.46% | |
Expected dividend yield | 1.00% | 0.70% |
Risk-free interest rate | 1.44% | |
Weighted average grant date fair value (in dollars per share) | $ 7.07 | $ 5.68 |
Minimum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 41.20% | |
Expected term | 6 years 1 month 6 days | 6 years |
Risk-free interest rate | 0.52% | |
Maximum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 41.32% | |
Expected term | 6 years 2 months 12 days | 6 years 2 months 12 days |
Risk-free interest rate | 0.83% | |
2019 Equity Incentive Plan [Member] | ||
Equity Incentive Plan [Abstract] | ||
Intrinsic value of options exercised | $ 17 | $ 185 |
STOCK-BASED COMPENSATION, Restr
STOCK-BASED COMPENSATION, Restricted Stock Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of year (in shares) | 62,476 | |
Granted (in shares) | 6,370 | |
Vested (in shares) | (24,805) | |
Forfeited (in shares) | (1,274) | |
Balance at ending of period (in shares) | 42,767 | |
Weighted-Average Exercise Price [Abstract] | ||
Outstanding at beginning of year (in dollars per share) | $ 19.47 | |
Granted (in dollars per share) | 19.62 | |
Vested (in dollars per share) | 19.70 | |
Forfeited (in dollars per share) | 19.62 | |
Balance at ending of period (in dollars per share) | $ 19.36 | |
Award vesting period | 4 years | |
Unrecognized compensation cost | $ 3,500 | |
Weighted average remaining period, recognition of compensation cost | 1 year 7 months 24 days | |
Fair value of restricted stock units vested | $ 489 | $ 489 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
FHLB Letters of Credit [Abstract] | ||
Letters of credit outstanding balance | $ 199,000 | $ 199,000 |
Commitments to Grant Loans and Unfunded Commitments Under Lines of Credit [Member] | ||
Financial instruments with off-balance-sheet risk [Abstract] | ||
Financial instruments whose contract amounts represent credit risk outstanding | 585,233 | 417,798 |
Standby Letters of Credit [Member] | ||
Financial instruments with off-balance-sheet risk [Abstract] | ||
Financial instruments whose contract amounts represent credit risk outstanding | $ 9,432 | $ 10,481 |
CAPITAL AND REGULATORY MATTER_2
CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Consolidated [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 502,095 | $ 473,425 |
Actual, Ratio | 0.1895 | 0.1908 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 278,637 | $ 260,531 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.1050 | 0.1050 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 393,164 | $ 366,639 |
Actual, Ratio | 0.1484 | 0.1478 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 225,563 | $ 210,906 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0850 | 0.0850 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 348,164 | $ 321,639 |
Actual, Ratio | 0.1314 | 0.1296 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 185,758 | $ 173,688 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0700 | 0.0700 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 393,164 | $ 366,639 |
Actual, Ratio | 0.1054 | 0.1024 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 150,322 | $ 144,347 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0400 | 0.0400 |
City Bank [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 413,791 | $ 404,138 |
Actual, Ratio | 0.1559 | 0.1629 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 281,942 | $ 260,481 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.1050 | 0.1050 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 268,516 | $ 248,077 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 380,498 | $ 372,947 |
Actual, Ratio | 0.1434 | 0.1503 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 228,239 | $ 210,866 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0850 | 0.0850 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 214,813 | $ 198,462 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 380,498 | $ 372,947 |
Actual, Ratio | 0.1434 | 0.1503 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 187,961 | $ 173,654 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0700 | 0.0700 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 174,536 | $ 161,250 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0650 | 0.0650 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 380,498 | $ 372,947 |
Actual, Ratio | 0.1020 | 0.1042 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 150,240 | $ 144,282 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0400 | 0.0400 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 186,489 | $ 178,999 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Fair Value Hedging [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Interest Rate Swaps [Member] | Other Liabilities [Member] | ||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | ||
Derivative liability, notional amount | $ 10,011 | $ 10,178 |
Derivative liability, fair value | 644 | 927 |
Interest Rate Swaps [Member] | Other Assets [Member] | ||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | ||
Derivative asset, notional amount | 0 | 0 |
Derivative asset, fair value | 0 | 0 |
Cash Flow Swaps [Member] | Other Liabilities [Member] | ||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | ||
Derivative liability, notional amount | 0 | 68,485 |
Derivative liability, fair value | 0 | 1,643 |
Cash Flow Swaps [Member] | Other Assets [Member] | ||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | ||
Derivative asset, notional amount | 123,760 | 55,275 |
Derivative asset, fair value | $ 4,084 | $ 1,618 |
DERIVATIVES, Mortgage Banking D
DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other Assets [Member] | Interest Rate Swap [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Cash collateral advanced to offset liability position | $ 1,100 | |
Other Liabilities [Member] | Cash Flow Hedging [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Cash collateral received to offset asset derivative positions | 3,900 | |
Mortgage Forward Contracts [Member] | Other Assets [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Cash collateral advanced to offset liability position | 440 | |
Mortgage Banking [Member] | Other Assets [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative asset, notional amount | 161,493 | $ 210,716 |
Derivative asset, fair value | 2,967 | 5,115 |
Mortgage Banking [Member] | Other Liabilities [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative liability, notional amount | 149,144 | 203,669 |
Derivative liability, fair value | 646 | 1,787 |
Mortgage Banking [Member] | Forward Contracts [Member] | Other Assets [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative asset, notional amount | 0 | 0 |
Derivative asset, fair value | 0 | 0 |
Mortgage Banking [Member] | Forward Contracts [Member] | Other Liabilities [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative liability, notional amount | 149,144 | 203,669 |
Derivative liability, fair value | 646 | 1,787 |
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Assets [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative asset, notional amount | 161,493 | 210,716 |
Derivative asset, fair value | 2,967 | 5,115 |
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | ||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | ||
Derivative liability, notional amount | 0 | 0 |
Derivative liability, fair value | $ 0 | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic [Abstract] | ||||
Net income | $ 13,650 | $ 5,615 | $ 28,810 | $ 12,698 |
Weighted average common shares outstanding - basic (in shares) | 18,039,553 | 18,061,705 | 18,054,288 | 18,052,405 |
Effect of dilutive securities [Abstract] | ||||
Stock-based compensation awards (in shares) | 513,497 | 162,925 | 484,881 | 290,871 |
Weighted average common shares outstanding - diluted (in shares) | 18,553,050 | 18,224,630 | 18,539,169 | 18,343,276 |
Basic earnings per share (in dollars per share) | $ 0.76 | $ 0.31 | $ 1.60 | $ 0.70 |
Diluted earnings per share (in dollars per share) | $ 0.74 | $ 0.31 | $ 1.55 | $ 0.69 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financial results by reportable segments [Abstract] | ||||
Net interest income | $ 29,593 | $ 30,448 | $ 59,137 | $ 60,647 |
Provision for loan loss | 2,007 | (13,133) | 1,918 | (19,367) |
Noninterest income | 22,250 | 24,896 | 48,750 | 43,771 |
Noninterest expense | (36,778) | (35,207) | (73,835) | (69,218) |
Income before income taxes | 17,072 | 7,004 | 35,970 | 15,833 |
Income tax (expense) benefit | (3,422) | (1,389) | (7,160) | (3,135) |
Net income | 13,650 | 5,615 | 28,810 | 12,698 |
Banking [Member] | Operating Segments [Member] | ||||
Financial results by reportable segments [Abstract] | ||||
Net interest income | 29,593 | 30,448 | 59,137 | 60,647 |
Provision for loan loss | 2,007 | (13,133) | 1,918 | (19,367) |
Noninterest income | 21,076 | 23,896 | 46,493 | 41,657 |
Noninterest expense | (35,665) | (34,061) | (71,620) | (66,892) |
Income before income taxes | 17,011 | 7,150 | 35,928 | 16,045 |
Income tax (expense) benefit | (3,409) | (1,358) | (7,150) | (3,117) |
Net income | 13,602 | 5,792 | 28,778 | 12,928 |
Insurance [Member] | Operating Segments [Member] | ||||
Financial results by reportable segments [Abstract] | ||||
Net interest income | 0 | 0 | 0 | 0 |
Provision for loan loss | 0 | 0 | 0 | 0 |
Noninterest income | 1,174 | 1,000 | 2,257 | 2,114 |
Noninterest expense | (1,113) | (1,146) | (2,215) | (2,326) |
Income before income taxes | 61 | (146) | 42 | (212) |
Income tax (expense) benefit | (13) | (31) | (10) | (18) |
Net income | $ 48 | $ (177) | $ 32 | $ (230) |
FAIR VALUE DISCLOSURES, Assets
FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities available for sale [Abstract] | ||
Securities available for sale | $ 777,613 | $ 803,087 |
U.S. Government and Agencies [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 4,753 |
State and Municipal [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 278,815 | 272,607 |
Mortgage-Backed Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 347,575 | 373,362 |
Collateralized Mortgage Obligations [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 107,920 | 106,715 |
Other Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 12,412 | 12,078 |
Recurring [Member] | ||
Securities available for sale [Abstract] | ||
Asset-backed and other amortizing securities | 30,891 | 33,572 |
Loans held for sale (mandatory) | 51,486 | 80,174 |
Mortgage servicing rights | 15,977 | 9,049 |
Asset derivatives | 7,051 | 6,734 |
Liability derivatives | (1,290) | (4,357) |
Recurring [Member] | U.S. Government and Agencies [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 4,753 |
Recurring [Member] | State and Municipal [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 278,815 | 272,607 |
Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 347,575 | 373,362 |
Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 107,920 | 106,715 |
Recurring [Member] | Other Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 12,412 | 12,078 |
Recurring [Member] | Level 1 [Member] | ||
Securities available for sale [Abstract] | ||
Asset-backed and other amortizing securities | 0 | 0 |
Loans held for sale (mandatory) | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. Government and Agencies [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | State and Municipal [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Other Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Securities available for sale [Abstract] | ||
Asset-backed and other amortizing securities | 30,891 | 33,572 |
Loans held for sale (mandatory) | 51,486 | 80,174 |
Mortgage servicing rights | 0 | 0 |
Asset derivatives | 7,051 | 6,734 |
Liability derivatives | (1,290) | (4,357) |
Recurring [Member] | Level 2 [Member] | U.S. Government and Agencies [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 4,753 |
Recurring [Member] | Level 2 [Member] | State and Municipal [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 278,815 | 272,607 |
Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 347,575 | 373,362 |
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 107,920 | 106,715 |
Recurring [Member] | Level 2 [Member] | Other Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 12,412 | 12,078 |
Recurring [Member] | Level 3 [Member] | ||
Securities available for sale [Abstract] | ||
Asset-backed and other amortizing securities | 0 | 0 |
Loans held for sale (mandatory) | 0 | 0 |
Mortgage servicing rights | 15,977 | 9,049 |
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Recurring [Member] | Level 3 [Member] | U.S. Government and Agencies [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | State and Municipal [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Other Securities [Member] | ||
Securities available for sale [Abstract] | ||
Securities available for sale | 0 | 0 |
Nonrecurring [Member] | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | 9,775 | 11,926 |
Other real estate owned | 1,146 | 1,353 |
Nonrecurring [Member] | Level 1 [Member] | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Assets measured at fair value on a non-recurring basis [Abstract] | ||
Impaired loans | 9,775 | 11,926 |
Other real estate owned | $ 1,146 | $ 1,353 |
FAIR VALUE DISCLOSURES, Quantit
FAIR VALUE DISCLOSURES, Quantitative Information about Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Third Party Appraisals or Inspections [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans | $ 9,775 | $ 11,926 |
Other real estate owned | $ 1,146 | $ 1,353 |
Third Party Appraisals or Inspections [Member] | Collateral Discounts and Selling Costs [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans, discounts | 0 | 0 |
Other real estate owned, discounts | 0.15 | 0.15 |
Third Party Appraisals or Inspections [Member] | Collateral Discounts and Selling Costs [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans, discounts | 1 | 1 |
Other real estate owned, discounts | 0.66 | 0.66 |
Discounted Cash Flows [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Mortgage servicing rights | $ 15,977 | $ 9,049 |
Discounted Cash Flows [Member] | Conditional Prepayment Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Mortgage servicing rights, discounts | 0.0569 | 0.0448 |
Discounted Cash Flows [Member] | Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Mortgage servicing rights, discounts | 0.0915 | 0.0972 |
FAIR VALUE DISCLOSURES, Estimat
FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 383,949 | $ 300,307 |
Loans, net | 2,260,499 | 2,176,030 |
Accrued interest receivable | 11,981 | 15,233 |
Bank-owned life insurance | 71,631 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 3,158,495 | 2,974,351 |
Accrued interest payable | 1,951 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Subordinated debt securities | 75,682 | 75,589 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 383,949 | 300,307 |
Loans, net | 2,305,203 | 2,179,573 |
Accrued interest receivable | 11,981 | 15,233 |
Bank-owned life insurance | 71,361 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 3,161,086 | 2,979,439 |
Accrued interest payable | 1,951 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 45,690 | 45,690 |
Subordinated debt securities | 77,846 | 76,889 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 383,949 | 300,307 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 2,931,301 | 2,649,830 |
Accrued interest payable | 0 | 0 |
Notes payable & other borrowings | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Subordinated debt securities | 0 | 0 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 11,981 | 15,233 |
Bank-owned life insurance | 71,361 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 229,785 | 329,609 |
Accrued interest payable | 1,951 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 45,690 | 45,690 |
Subordinated debt securities | 77,846 | 76,889 |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans, net | 2,305,203 | 2,179,573 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Notes payable & other borrowings | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Subordinated debt securities | $ 0 | $ 0 |
BUSINESS COMBINATIONS, Windmark
BUSINESS COMBINATIONS, Windmark (Details) - Windmark Insurance Agency, Inc. [Member] - Crop Insurance Agency in Nebraska [Member] $ in Thousands | 1 Months Ended |
Jun. 30, 2020USD ($) | |
Assets Acquired and Liabilities Assumed [Abstract] | |
Cash paid | $ 687 |
Assets acquired [Abstract] | |
Premises and equipment, net | 24 |
Total assets acquired | 687 |
Customer List [Member] | |
Assets acquired [Abstract] | |
Intangible assets | 512 |
Other Intangible Assets [Member] | |
Assets acquired [Abstract] | |
Intangible assets | $ 151 |