Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 03, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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, par value $1.00 per share | ||
Trading Symbol | SPFI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 309.2 | ||
Entity Common Stock, Shares Outstanding | 17,693,639 | ||
Auditor Firm ID | 410 | ||
Auditor Name | WEAVER AND TIDWELL, L.L.P. | ||
Auditor Location | Fort Worth, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 68,425 | $ 76,146 |
Interest-bearing deposits in banks | 418,396 | 224,161 |
Cash and cash equivalents | 486,821 | 300,307 |
Securities available for sale | 724,504 | 803,087 |
Loans held for sale | 76,507 | 111,477 |
Loans held for investment | 2,437,577 | 2,221,583 |
Allowance for loan losses | (42,098) | (45,553) |
Loans held for investment, net | 2,395,479 | 2,176,030 |
Accrued interest receivable | 13,900 | 15,233 |
Premises and equipment, net | 57,699 | 60,331 |
Bank-owned life insurance | 71,978 | 70,731 |
Goodwill | 19,508 | 19,508 |
Intangible assets, net | 5,895 | 7,562 |
Mortgage servicing rights | 19,700 | 9,049 |
Deferred tax asset, net | 3,038 | 2,461 |
Other assets | 26,826 | 23,384 |
Total assets | 3,901,855 | 3,599,160 |
Deposits: | ||
Noninterest-bearing | 1,071,367 | 917,322 |
Interest-bearing | 2,269,855 | 2,057,029 |
Total deposits | 3,341,222 | 2,974,351 |
Short-term borrowings | 0 | 26,550 |
Accrued expenses and other liabilities | 31,038 | 31,229 |
Notes payable & other borrowings | 0 | 75,000 |
Subordinated debt securities | 75,775 | 75,589 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Total liabilities | 3,494,428 | 3,229,112 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $1 par value, 30,000,000 shares authorized; 17,760,243 issued in 2021 and 18,076,364 issued in 2020 | 17,760 | 18,076 |
Additional paid-in capital | 133,215 | 141,112 |
Retained earnings | 242,750 | 189,521 |
Accumulated other comprehensive income | 13,702 | 21,339 |
Total stockholders' equity | 407,427 | 370,048 |
Total liabilities and stockholders' equity | $ 3,901,855 | $ 3,599,160 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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) | 17,760,243 | 18,076,364 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Loans, including fees | $ 120,540 | $ 121,733 | $ 116,904 |
Securities: | |||
Taxable | 9,445 | 12,267 | 8,890 |
Non taxable | 4,639 | 3,546 | 1,018 |
Federal funds sold and interest-bearing deposits in banks | 412 | 685 | 6,130 |
Total interest income | 135,036 | 138,231 | 132,942 |
Interest expense: | |||
Deposits | 8,293 | 11,894 | 22,491 |
Notes payable & other borrowings | 43 | 662 | 2,314 |
Subordinated debt securities | 4,056 | 2,223 | 1,616 |
Junior subordinated deferrable interest debentures | 880 | 1,167 | 1,946 |
Total interest expense | 13,272 | 15,946 | 28,367 |
Net interest income | 121,764 | 122,285 | 104,575 |
Provision for loan losses | (1,918) | 25,570 | 2,799 |
Net interest income, after provision for loan losses | 123,682 | 96,715 | 101,776 |
Noninterest income: | |||
Service charges on deposit accounts | 6,963 | 7,032 | 8,129 |
Income from insurance activities | 8,314 | 7,644 | 7,016 |
Net gain on sales of loans | 51,184 | 63,531 | 23,521 |
Bank card services and interchange fees | 12,239 | 10,035 | 8,692 |
Realized gain on sale of securities | 0 | 2,318 | 0 |
Investment commissions | 1,934 | 1,698 | 1,710 |
Fiduciary fees | 2,917 | 3,185 | 2,306 |
Other | 13,918 | 6,160 | 5,259 |
Total noninterest income | 97,469 | 101,603 | 56,633 |
Noninterest expense: | |||
Salaries and employee benefits | 93,360 | 89,220 | 75,392 |
Occupancy and equipment, net | 14,560 | 14,658 | 13,572 |
Professional services | 6,752 | 6,322 | 7,334 |
Marketing and development | 3,225 | 3,088 | 3,017 |
IT and data services | 4,007 | 3,574 | 2,830 |
Bank card expenses | 4,995 | 4,253 | 3,346 |
Appraisal expenses | 3,248 | 2,782 | 1,625 |
Other | 17,883 | 17,818 | 14,592 |
Total noninterest expense | 148,030 | 141,715 | 121,708 |
Income before income taxes | 73,121 | 56,603 | 36,701 |
Income tax expense | 14,507 | 11,250 | 7,481 |
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
Earnings per share: | |||
Basic (in dollars per share) | $ 3.26 | $ 2.51 | $ 1.74 |
Diluted (in dollars per share) | $ 3.17 | $ 2.47 | $ 1.71 |
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
Other comprehensive income: | |||
Change in net unrealized gain (loss) on securities available for sale | (15,479) | 28,193 | 4,025 |
Change in net gain (loss) on cash flow hedges | 5,812 | (76) | 0 |
Reclassification adjustment for (gain) loss included in net income | 0 | (2,318) | 28 |
Tax effect | 2,030 | (5,418) | (852) |
Other comprehensive income (loss) | (7,637) | 20,381 | 3,201 |
Comprehensive income | $ 50,977 | $ 65,734 | $ 32,421 |
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] | Less: ESOP Owned Shares [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Less: ESOP Owned Shares [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at Dec. 31, 2018 | $ 14,772 | $ 80,412 | $ 119,834 | $ (2,243) | $ (58,195) | $ 154,580 | ||||||
Balance (in shares) at Dec. 31, 2018 | 14,771,520 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of common stock, net | $ 3,207 | 48,185 | 0 | 0 | 0 | 51,392 | ||||||
Issuance of common stock, net (in shares) | 3,207,000 | |||||||||||
Net income | $ 0 | 0 | 29,220 | 0 | 0 | 29,220 | ||||||
Cash dividends declared | 0 | 0 | (1,079) | 0 | 0 | (1,079) | ||||||
Other comprehensive income (loss), (net of tax) | 0 | 0 | 0 | 3,201 | 0 | 3,201 | ||||||
Terminated ESOP put option | 0 | 0 | 0 | 0 | 58,195 | 58,195 | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes | $ 57 | (408) | 0 | 0 | 0 | (351) | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes (in shares) | 57,595 | |||||||||||
Stock-based compensation | $ 0 | 853 | 0 | 0 | 0 | 853 | ||||||
Share-based liability awards modified to equity awards | 0 | 11,450 | 0 | 0 | 0 | 11,450 | ||||||
Balance at Dec. 31, 2019 | $ 18,036 | 140,492 | 146,696 | 958 | 0 | 306,182 | $ 0 | $ 0 | $ (1,279) | $ 0 | $ 0 | $ (1,279) |
Balance (in shares) at Dec. 31, 2019 | 18,036,115 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 0 | 0 | 45,353 | 0 | 0 | 45,353 | ||||||
Cash dividends declared | 0 | 0 | (2,528) | 0 | 0 | (2,528) | ||||||
Other comprehensive income (loss), (net of tax) | 0 | 0 | 0 | 20,381 | 0 | 20,381 | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes | $ 59 | (378) | 0 | 0 | 0 | (319) | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes (in shares) | 59,284 | |||||||||||
Repurchases of common stock | $ (19) | (274) | 0 | 0 | 0 | (293) | ||||||
Repurchases of common stock (in shares) | (19,035) | |||||||||||
Stock-based compensation | $ 0 | 1,272 | 0 | 0 | 0 | 1,272 | ||||||
Balance at Dec. 31, 2020 | $ 18,076 | 141,112 | 189,521 | 21,339 | 0 | 370,048 | ||||||
Balance (in shares) at Dec. 31, 2020 | 18,076,364 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 0 | 0 | 58,614 | 0 | 0 | 58,614 | ||||||
Cash dividends declared | 0 | 0 | (5,385) | 0 | 0 | (5,385) | ||||||
Other comprehensive income (loss), (net of tax) | 0 | 0 | 0 | (7,637) | 0 | (7,637) | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes | $ 77 | (702) | 0 | 0 | 0 | (625) | ||||||
Exercise of employee stock options, net of shares for cashless exercise and net of shares for taxes (in shares) | 77,408 | |||||||||||
Repurchases of common stock | $ (393) | (8,834) | 0 | 0 | 0 | (9,227) | ||||||
Repurchases of common stock (in shares) | (393,529) | |||||||||||
Stock-based compensation | $ 0 | 1,639 | 0 | 0 | 0 | 1,639 | ||||||
Balance at Dec. 31, 2021 | $ 17,760 | $ 133,215 | $ 242,750 | $ 13,702 | $ 0 | $ 407,427 | ||||||
Balance (in shares) at Dec. 31, 2021 | 17,760,243 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | |||
Cash dividends, common (in dollars per share) | $ 0.30 | $ 0.14 | $ 0.06 |
Exercise of employee stock options, shares for cashless exercise (in shares) | 82,004 | 69,855 | 111,011 |
Exercise of employee stock options, shares for taxes (in shares) | 23,559 | 17,762 | 18,894 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for loan losses | (1,918) | 25,570 | 2,799 |
Depreciation and amortization | 6,436 | 6,575 | 5,225 |
Net amortization of premium on investment securities | 4,513 | 3,166 | 252 |
Other gains, net | (729) | (2,539) | 40 |
Net gain on sales of loans | (51,184) | (63,531) | (23,521) |
Proceeds from sales of loans held for sale | 1,577,953 | 1,434,173 | 652,216 |
Loans originated for sale | (1,500,995) | (1,442,913) | (640,680) |
Earnings on bank-owned life insurance | (1,247) | (1,334) | (1,293) |
Stock-based compensation | 1,639 | 1,272 | 853 |
Change in valuation of mortgage servicing rights | (1,455) | 2,834 | 548 |
Net change in: | |||
Accrued interest receivable and other assets | 244 | (4,610) | 321 |
Accrued expenses and other liabilities | 4,400 | 1,611 | 4,504 |
Net cash from operating activities | 96,271 | 5,627 | 30,484 |
Activity in securities available for sale: | |||
Purchases | (61,548) | (279,727) | (489,032) |
Sales | 0 | 94,514 | 52,495 |
Maturities, prepayments, and calls | 120,325 | 114,850 | 139,255 |
Loan originations and principal collections, net | (218,458) | (84,991) | 5,572 |
Cash paid for acquisition | 0 | (687) | 0 |
Net cash received in business combinations | 0 | 0 | 78,171 |
Goodwill adjustment related to litigation settlement | 0 | 460 | 0 |
Purchases of premises and equipment, net | (2,920) | (3,310) | (3,997) |
Proceeds from sales of premises and equipment | 1,458 | 222 | 208 |
Proceeds from sales of foreclosed assets | 1,302 | 2,441 | 3,835 |
Net cash from investing activities | (159,841) | (156,228) | (213,493) |
Cash flows from financing activities: | |||
Net change in deposits | 366,871 | 277,494 | 33,227 |
Net change in short-term borrowings | (26,550) | (10,615) | 19,460 |
Proceeds from common stock issuance, net | 0 | 0 | 51,392 |
Proceeds from subordinated debt issuance, net | 0 | 49,070 | 0 |
Proceeds from notes payable and other borrowings | 0 | 75,000 | (351) |
Payments to tax authorities for stock-based compensation | (625) | (319) | 0 |
Payments made on notes payable and other borrowings | (75,000) | (95,000) | (7,530) |
Cash dividends on common stock | (5,385) | (2,528) | (1,079) |
Payments to repurchase common stock | (9,227) | (293) | 0 |
Net cash from financing activities | 250,084 | 292,809 | 95,119 |
Net change in cash and cash equivalents | 186,514 | 142,208 | (87,890) |
Beginning cash and cash equivalents | 300,307 | 158,099 | 245,989 |
Ending cash and cash equivalents | 486,821 | 300,307 | 158,099 |
Supplemental disclosures of cash flow information: | |||
Interest paid on deposits and borrowed funds | 13,471 | 16,116 | 28,125 |
Income taxes paid | 12,400 | 13,513 | 6,474 |
Supplemental schedule of noncash activities: | |||
Loans transferred to foreclosed assets | 927 | 1,867 | 2,452 |
Business combination measurement period adjustment | 0 | 1,211 | 0 |
Additions to mortgage servicing rights | $ 9,196 | $ 9,829 | $ 1,332 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The following are subsidiaries of SPFI: Wholly-Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. 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 Company’s CFS are prepared and presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) The Company evaluated subsequent events for potential recognition and/or disclosure through the date the CFS were available to be issued. Use of Estimates Change in Capital Structure The Company completed a 29-to-1 stock split of the Company’s outstanding shares of common stock for shareholders of record as of March 11, 2019. The stock split was payable in the form of a dividend on or about March 11, 2019. Shareholders received 29 additional shares for each share held as of the record date. All share and per share amounts in the CFS have been retroactively adjusted to reflect this stock split for all periods presented. Stock Offering Concentration of Credit Risk Risks and Uncertainties Comprehensive Income Cash and Cash Equivalents Securities When the fair value of a security is below its amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. The analysis considers (i) whether there is intent to sell securities prior to recovery and/or maturity, (ii) whether it is more likely than not that securities will have to be sold prior to recovery and/or maturity, and (iii) whether there is a credit loss component to the impairment. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of a security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition. Nonmarketable Equity Securities 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. 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. Mortgage Servicing Rights Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports change in fair value of servicing assets in earnings in the period in which the changes occur, and are included with other noninterest income in the CFS. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported in the CFS as other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and recorded when income is earned. Servicing income was $3.1 million, $781 thousand, and $325 thousand for the years ended December 31, 2021, 2020, and 2019, respectively. Transfers of Financial Assets Loans Held for Sale Premises and Equipment Foreclosed Assets Bank-Owned Life Insurance 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 using the straight-line method. Mortgage Banking Derivatives In order to hedge the change in interest rates resulting from the commitments to fund the loans that will be sold through a best efforts contract, the Company enters into forward loans sales commitments for the future delivery of mortgage loans when interest rate locks are entered. At inception, these interest rate locks and the related forward loan sales commitments, adjusted for the expected exercise of the commitment before the loan is funded, are recorded with a zero value. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. In order to hedge the change in interest rates resulting from all other mortgage commitments to funds loans, the Company enters into forward sales of mortgage-backed securities contracts. At inception, these interest rate locks are recorded at fair value and are adjusted for the expected exercise of the commitment before the loan is funded. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gain on sales of loans in the CFS. Derivatives Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Revenue Recognition – Service Charges on Deposit Accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Bank Card Services and Interchange Fees The Company earns bank card service and interchange fees from debit and credit cardholder transactions conducted through card payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Bank card services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees and service fees such as ATM use fees and are recognized at the time the transaction is executed. Investment Commissions and Fiduciary Trust Fees The Company earns investment commissions and fiduciary trust fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e., the trade date. Other related services provided include financial planning services and the fees the Company earns, which are based on a fixed fee schedule, are recognized when the services are rendered. In addition, certain trust customers have contracted with the Company to provide trust dissolution services, which are based on a unitary management fee treated as a single performance obligation. The Company’s performance obligation is satisfied over time based on the customer simultaneously receiving and consuming the benefits of the Company’s service. The unitary management fee is treated as variable consideration and is evaluated and included in the transaction price at the end of each reporting period (quarterly). Revenue is recognized based on a reasonable time based measure of progress towards the Company’s complete satisfaction of the performance obligation at the end of each respective reporting period, with the unearned amount based on progress measure being included in deferred contract liability. This variable consideration and the amount of revenue recognized is evaluated quarterly until the Company has entirely fulfilled its performance obligation, at which time the remaining unearned revenue is recognized. Gains/Losses on Sales of OREO The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. The Company did not have any significant contract balances at December 31, 2021 and 2020. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. Insurance Activities The Company’s primary source of revenues for insurance activities are commissions from underwriting enterprises, based on a percentage of premiums paid by clients. These commissions and fees revenues are substantially recognized at a point in time on the effective date of the associated policies when control of the policy transfers to the client. Commissions are fixed at the contract effective date and generally are based on a percentage of premiums for insurance coverage. Commissions depend upon a large number of factors, including the type of risk being placed, the particular underwriting enterprise’s demand, the expected loss experience of the particular risk of coverage, and historical benchmarks surrounding the level of effort necessary for us to place and service the insurance contract. Stock-Based Compensation Advertising Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The State of Texas franchise tax is an income tax for financial reporting purposes under GAAP and the Company and its subsidiaries are subject to the modified tax as a combined group. Earnings per Share Fair Values of Financial Instruments Trust Assets Segment Information Reclassification Change in Accounting Principle Recent Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). ASU 2016-02 Leases (Topic 842). Based upon an analysis performed, the Company estimates that the right-of-use asset and corresponding lease liability at adoption will be between $9.8 million and $10.7 million. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
SECURITIES [Abstract] | |
SECURITIES | 2. SECURITIES The amortized cost and fair value of securities, with gross unrealized gains and losses, at year-end follow: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 2021 Available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal 265,143 10,615 (86 ) 275,672 Mortgage-backed securities 302,973 4,230 (4,114 ) 303,089 Collateralized mortgage obligations 106,733 — (413 ) 106,320 Asset-backed and other amortizing securities 26,046 1,108 (218 ) 26,936 Other securities 12,000 487 — 12,487 $ 712,895 $ 16,440 $ (4,831 ) $ 724,504 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 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 December 31, 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 $ 1,939 $ 1,959 After 1 year through 5 years 7,563 7,941 After 5 years through 10 years 22,502 23,426 After 10 years 245,139 254,833 Other 435,752 436,345 $ 712,895 $ 724,504 At year-end 2021 and 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 $474.5 million and $292.2 million at December 31, 2021 and 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 year-end, by the period 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 2021 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal 21,255 86 — — 21,255 86 Mortgage-backed securities 56,398 1,197 64,764 2,917 121,162 4,114 Collateralized mortgage obligations 106,320 413 — — 106,320 413 Asset-backed and other amortizing securities 1,624 218 — — 1,624 218 Other securities — — — — — — $ 185,597 $ 1,914 $ 64,764 $ 2,917 $ 250,361 $ 4,831 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 3,486 — — — 3,486 — Other securities — 13 — — — 13 $ 203,683 $ 787 $ — $ — $ 203,683 $ 787 There were 23 securities with an unrealized loss at December 31, 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 December 31, 2021, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company’s CFS. |
LOANS HELD FOR INVESTMENT
LOANS HELD FOR INVESTMENT | 12 Months Ended |
Dec. 31, 2021 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
LOANS HELD FOR INVESTMENT | 3. LOANS HELD FOR INVESTMENT Loans are summarized by category at year-end as follows: 2021 2020 Commercial real estate $ 755,444 $ 663,344 Commercial - specialized 378,725 311,686 Commercial - general 460,024 518,309 Consumer: 1-4 family residential 387,690 360,315 Auto loans 240,719 205,840 Other consumer 68,113 67,595 Construction 146,862 94,494 2,437,577 2,221,583 Allowance for loan losses (42,098 ) (45,553 ) Loans, net $ 2,395,479 $ 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 $42.1 million at December 31, 2021, compared to $45.6 million at December 31, 2020. The ratio of allowance for loan losses to loans held for investment was 1.73% at December 31, 2021 and 2.05% at December 31, 2020. The decrease in the allowance for loan losses at December 31, 2021 compared to December 31, 2020 was primarily the result of the Company recording a negative provision for loan losses in the second quarter of 2021 of $2.0 million. The negative provision was primarily due to the general improvement in the economy, a decline in the amount of loans actively under a modification, and a decrease in nonperforming loans. The following table details the activity in the allowance for loan losses during 2021 and 2020. 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 2021 Commercial real estate $ 18,962 $ (1,826 ) $ — $ 109 $ 17,245 Commercial - specialized 5,760 (1,386 ) (172 ) 161 4,363 Commercial - general 9,227 (302 ) (677 ) 218 8,466 Consumer: 1-4 family residential 4,646 666 (52 ) 8 5,268 Auto loans 4,226 (90 ) (598 ) 115 3,653 Other consumer 1,671 339 (903 ) 250 1,357 Construction 1,061 681 — 4 1,746 Total $ 45,553 $ (1,918 ) $ (2,402 ) $ 865 $ 42,098 2020 Commercial real estate $ 5,049 $ 13,618 $ (7 ) $ 302 $ 18,962 Commercial - specialized 2,287 4,514 (1,162 ) 121 5,760 Commercial - general 9,609 1,219 (1,811 ) 210 9,227 Consumer: 1-4 family residential 2,093 2,478 (56 ) 131 4,646 Auto loans 3,385 1,814 (1,165 ) 192 4,226 Other consumer 1,341 1,300 (1,358 ) 388 1,671 Construction 433 627 — 1 1,061 Total $ 24,197 $ 25,570 $ (5,559 ) $ 1,345 $ 45,553 2019 Commercial real estate $ 5,579 $ (961 ) $ — $ 431 $ 5,049 Commercial - specialized 2,516 2 (355 ) 124 2,287 Commercial - general 8,173 1,209 (306 ) 533 9,609 Consumer: 1-4 family residential 2,249 219 (436 ) 61 2,093 Auto loans 2,994 1,276 (1,067 ) 182 3,385 Other consumer 1,192 969 (1,034 ) 214 1,341 Construction 423 85 (75 ) — 433 Total $ 23,126 $ 2,799 $ (3,273 ) $ 1,545 $ 24,197 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 2021 Commercial real estate $ 1,101 $ 754,343 $ 584 $ 16,661 Commercial - specialized — 378,725 — 4,363 Commercial - general 5,078 454,946 585 7,881 Consumer: 1-4 family residential 1,592 386,098 175 5,093 Auto loans — 240,719 — 3,653 Other consumer — 68,113 — 1,357 Construction — 146,862 — 1,746 Total $ 7,771 $ 2,429,806 $ 1,344 $ 40,754 2020 Commercial - $ 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 at year-end follows: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment 2021 Commercial real estate $ 1,101 $ — $ 1,101 $ 1,101 $ 584 $ 3,687 Commercial -specialized — — — — — — Commercial - general 5,078 1,143 3,935 5,078 585 4,852 Consumer: 1-4 family 1,592 880 712 1,592 175 1,857 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 7,771 $ 2,023 $ 5,748 $ 7,771 $ 1,344 $ 10,396 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 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 2021, 2020 and 2019 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 at year-end: 30-89 Days Past Due 90 Days or More Past Due Nonaccrual 2021 Commercial real estate $ 393 $ 45 $ 1,101 Commercial - specialized 265 20 156 Commercial - general 4,032 97 5,236 Consumer: 1-4 Family residential 2,496 903 2,815 Auto loans 332 — — Other consumer 538 15 44 Construction 937 — 166 Total $ 8,993 $ 1,080 $ 9,518 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 at year-end: Pass Special Mention Substandard Doubtful Total 2021 Commercial real estate $ 713,852 $ — $ 41,592 $ — $ 755,444 Commercial - specialized 372,797 — 5,928 — 378,725 Commercial - general 450,790 1,676 7,558 — 460,024 Consumer: 1-4 family residential 379,458 — 8,232 — 387,690 Auto loans 239,869 — 850 — 240,719 Other consumer 67,822 — 291 — 68,113 Construction 146,696 — 166 — 146,862 Total $ 2,371,284 $ 1,676 $ 64,617 $ — $ 2,437,577 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 and 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, as amended by 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 December 31, 2021, the Company had no loans under an active modification that comply with ASC Subtopic 310-40 and the Joint Interagency Regulatory Guid ance. As of December 31, 2020, the Company had an outstanding principal balance of modified loans of $3.0 million in loans that complied with ASC Subtopic 310-40 and the Joint Interagency Regulatory Guidance. These modifications included: $1.0 million in six months of interest-only payments, $300 thousand in 90 day commercial payment deferrals, and $1.7 million in consumer one 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 and section 501 of the Act. As of December 31, 2021 the Company had 3 loans totaling approximately $15.9 million subject to these deferral and modification agreements, representing 0.65% of outstanding loans held for invest ment. As of December 31, 2020 the Company had 25 loans totaling approximately $61.0 million subject to these deferral and modification agreements, representing 2.75% of outstanding loans held for investment. There were no TDRs during 2021, 2020, and 2019. |
FORECLOSED ASSETS
FORECLOSED ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
FORECLOSED ASSETS [Abstract] | |
FORECLOSED ASSETS | 4. FORECLOSED ASSETS Foreclosed assets activity was as follows: 2021 2020 2019 Beginning balance $ 1,353 $ 1,883 $ 2,285 Additions 927 1,867 3,469 Sales, net (1,248 ) (2,397 ) (3,871 ) Current year valuation write-down — — — Ending balance $ 1,032 $ 1,353 $ 1,883 Activity in the valuation allowance was as follows: 2021 2020 2019 Beginning balance $ — $ — $ — Current year valuation write-down — — — Reductions from sales — — — Ending balance $ — $ — $ — Net expenses related to foreclosed assets include: 2021 2020 2019 Net loss (gain) on sales $ (44 ) $ (40 ) $ 37 Current year valuation write-down — — — Operating expenses, net of rental income 57 75 71 Foreclosed assets expense, net $ 13 $ 35 $ 108 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
PREMISES AND EQUIPMENT [Abstract] | |
PREMISES AND EQUIPMENT | 5. PREMISES AND EQUIPMENT Detail of premises and equipment at year-end follows: 2021 2020 Land $ 10,065 $ 10,825 Buildings and improvements 65,986 65,840 Furniture and equipment 48,281 46,443 Construction in process 659 29 124,991 123,137 Less accumulated depreciation (67,292 ) (62,806 ) Premises and equipment, net $ 57,699 $ 60,331 Depreciation expense was approximately $4.8 million in 2021, $4.8 million in 2020, and $4.9 million in 2019. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND INTANGIBLES [Abstract] | |
GOODWILL AND INTANGIBLES | 6. GOODWILL AND INTANGIBLES Goodwill and other intangible assets, which consist of CDI, customer lists, and employment agreements are summarized below: 2021 2020 2019 Beginning goodwill $ 19,508 $ 18,757 $ — Arising from business combinations — — 18,757 Measurement period acquisition adjustment — 751 — Ending goodwill $ 19,508 $ 19,508 $ 18,757 Amortized intangible assets: Customer relationship intangibles $ 6,679 $ 6,679 $ 6,679 Less: Accumulated amortization (2,469 ) (1,396 ) (202 ) 4,210 5,283 6,477 Other intangibles 2,972 2,309 2,309 Arising from business combinations — 663 — Less: Accumulated amortization (1,287 ) (693 ) (154 ) 1,685 2,279 2,155 Other intangible assets, net $ 5,895 $ 7,562 $ 8,632 Amortization expense for other intangibles for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 totaled $1.7 million, $1.7 million, and $356 thousand, respectively. The estimated amount of amortization expense for core deposit intangible and other intangible assets to be recognized over the next five years is as follows: CDI Other Intangible Total 2022 $ 951 $ 594 $ 1,545 2023 830 595 1,425 2024 708 441 1,149 2025 587 55 642 2026 466 — 466 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2021 | |
MORTGAGE SERVICING RIGHTS [Abstract] | |
MORTGAGE SERVICING RIGHTS | 7. MORTGAGE SERVICING RIGHTS The following table reflects the changes in fair value of the Company’s mortgage servicing rights asset included in the Consolidated Balance Sheets, and other information related to the serviced portfolio: 2021 2020 2019 Beginning balance $ 9,049 $ 2,054 $ 1,270 Additions 9,196 9,829 1,332 Valuation adjustment 1,455 (2,834 ) (548 ) Ending balance $ 19,700 $ 9,049 $ 2,054 Mortgage loans serviced for others $ 1,953,095 $ 1,203,687 $ 247,326 Mortgage servicing rights asset as a percentage of serviced mortgage loans 1 % 1 % 1 % The following table reflects the key assumptions used in measuring the fair value of the Company’s mortgage servicing rights: 2021 2020 Weighted average constant prepayment rate 12.35 % 18.16 % Weighted average discount rate 9.14 % 9.72 % Weighted average life in years 6.03 4.48 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
DEPOSITS [Abstract] | |
DEPOSITS | 8. DEPOSITS Time deposits that met or exceeded the FDIC Insurance limit of $250,000 were $163.4 million and $147.0 at December 31, 2021 and 2020, respectively. The scheduled maturities of time deposits at December 31, 2021 follows: 2022 $ 258,584 2023 66,613 2024 8,154 2025 3,272 2026 2,910 Thereafter 205 $ 339,738 |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWING ARRANGEMENTS [Abstract] | |
BORROWING ARRANGEMENTS | 9. BORROWING ARRANGEMENTS Short-term borrowings The following table summarizes our short-term borrowings at year-end: 2021 2020 Federal funds purchased $ — $ 26,550 FHLB advances - short-term — — Total $ — $ 26,550 Federal funds purchased are short-term borrowings that generally have one-day maturities. Lines of credit The bank subsidiary has a line of credit with FHLB. The amount of the line is determined by FHLB on a quarterly basis. The line is primarily used to purchase Federal funds or to secure letters of credit to pledge as collateral against certain public deposits. The line is collateralized by a blanket floating lien on all first mortgage loans and commercial real estate loans as well as all FHLB stock, which has a carrying amount of $2.8 million at December 31, 2021. The available capacity of the line was $903.9 million and $512.5 million at December 31, 2021 and 2020, respectively. The bank subsidiary also has a line of credit with the Federal Reserve Bank of Dallas (“FRB”). The amount of the line is determined on a monthly basis by FRB. The line is collateralized by a blanket floating lien on all agriculture, commercial, and consumer loans. The amount of the line was $593.6 million and $700.8 million at December 31, 2021 and 2020, respectively. This line was not used at December 31, 2021 or 2020. The bank subsidiary also has uncollateralized lines of credit with multiple banks. The total amount of the lines was $160.0 million and $165.0 million as of December 31, 2021 and 2020, respectively. These lines were not used at December 31, 2021 or 2020. Notes payable and other borrowings The bank subsidiary has multiple advances from FHLB. The advances are collateralized through the line of credit with FHLB with interest payable monthly and principal due at maturity. The following table is a detail of the advances as of December 31: Issue Date Original Amount of Advance 2021 Balance 2020 Maturity Date Interest Rate at Decemb er 31, 2020 2013 $ 20,000 $ — $ — 2020 Fixed; 2015 25,000 — 25,000 2025 Variable 2015 25,000 — 25,000 2025 Variable 2015 25,000 — 25,000 2025 Variable $ 95,000 $ — $ 75,000 At December 31, 2020, City Bank had three advances from the 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 $25 million in April 2021. As of December 31, 2021, City Bank had no outstanding advances from the FHLB. In April 2020, City Bank borrowed $75 million from FHLB, on a term of three months, for liquidity needs. The three month advance matured in July 2020 Junior subordinated deferrable interest debentures and trust preferred securities The Company established grantor trusts (“trusts”) that issued obligated mandatorily redeemable preferred securities (“TPS”); the Company issued junior subordinated deferrable interest debentures (debentures) to the trusts. The trusts are not consolidated and the debentures issued by the Company to the trusts are reflected in the Company’s consolidated balance sheets. The Company records interest expense on the debentures in its CFS. The common capital securities issued by the trusts ($1.4 million) are included in other assets in the Company’s consolidated balance sheets under the equity method of accounting. The amount of the capital securities represents the Company’s maximum exposure to loss. The Company is required by the Board of Governors of the Federal Reserve System (“Federal Reserve”) to maintain certain levels of capital for bank regulatory purposes. The debentures issued by the trusts to the Company, less the common capital securities of the trusts, continue to qualify as Tier 1 capital, subject to limitation to 25% of Tier 1 capital, under guidance issued by the Federal Reserve. Although the trusts are not consolidated in these CFS, the TPS remain outstanding with terms substantially the same as the debentures. The Company’s interest payments on its debentures are the sole source of repayment for the TPS. Additionally, the Company guarantees payment of interest and principal on the TPS. The terms of the debentures and TPS allow for interest to be deferred for up to five years consecutively. During this time, shareholder dividends are not allowed to be paid. The following table is a detail of the debentures and TPS at December 31, 2021: Issue Date Amount of TPS Amount of Debentures Stated Maturity Date of TPS and Debentures (1) Interest Rate of TPS and Debentures (2)(3) South Plains Financial Capital Trust III 2004 $ 10,000 $ 10,310 2034 3-mo. LIBOR + 265bps; 2.77% South Plains Financial Capital Trust IV 2005 20,000 20,619 2035 3-mo. LIBOR + 139bps; 1.59% South Plains Financial Capital Trust V 2007 15,000 15,464 2037 3-mo. LIBOR + 150bps; 1.70% Total $ 45,000 $ 46,393 (1) May be redeemed five years from the issue date, the Company has no current plans to redeem; (2) Interest payable quarterly with principal due at maturity; (3) Rate as of last reset date. 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 semi-annually, are unsecured, and may be called by the Company at any time after the remaining maturity is five years or less. Additionally, these securities qualify for Tier 2 capital treatment, subject to regulatory limitations. As of December 31, 2021, the total amount of subordinated debt securities outstanding was $76.5 million less approximately $697,000 of remaining debt issuance costs for a total balance of $75.8 million. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE BENEFITS [Abstract] | |
EMPLOYEE BENEFITS | 10. EMPLOYEE BENEFITS The Company sponsors the South Plains Financial, Inc. Employee Stock Ownership Plan ( ESOP ). Effective May 9, 2019, the ESOP was restated and amended. The 401(k) related assets, which consisted of participants’ elective and rollover accounts, were transferred to the newly formed City Bank 401(k) Plan. The ESOP covers all employees who have completed one month of service. The ESOP may be leveraged to purchase shares of SPFI stock. Shares are released from collateral and allocated to active employees, in proportion to annual debt service. The Company recognizes any debt of the ESOP as notes payable and the shares pledged as collateral are deducted from the stockholders’ equity as unearned ESOP shares in the accompanying consolidated balance sheets. All ESOP shares were allocated as of December 31, 2021 and 2020. Through 2019, the Company made contributions to the ESOP as approved by the Board of Directors on an annual basis. These contributions, plus dividends received, were used to service any ESOP debt and repurchase allocated shares from participants and terminating vested participants. Company contributions to the ESOP in 2019 were $1.8 million. As of December 31, 2021 and 2020, the number of shares held by the ESOP were 2,795,762 and 2,876,419, respectively. During 2019, the Company did not repurchase any shares from ESOP participants prior to the Company’s shares being publicly traded. In accordance with applicable provisions of Code, the terms of the ESOP, for so long as SPFI was a privately held company, ESOP participants would have the right, for a specified period of time, to require SPFI to repurchase shares of its common stock that were distributed to such participants by the ESOP. This repurchase obligation terminated upon the consummation of our initial public offering and listing of our common stock on the NASDAQ Global Select Market in May 2019. However, because we were privately held at December 31, 2018, the value of ESOP- owned shares have been deducted from stockholders’ equity in our consolidated changes in stockholders’ equity statement as of December 31, 2018. For all periods following our initial public offering and continued listing of our common stock on the NASDAQ Global Select Market, the ESOP-owned shares are and will be included in stockholders’ equity. At December 31, 2018, the fair value of all ESOP-owned shares subject to this repurchase obligation totaled $58.2 million. Under the provisions of the 401(k) Plan, participants may elect to contribute pre-tax salary deferrals and direct investment of those salary deferrals among investments offered in the 401(k) Plan. The Company may elect to contribute a safe harbor match equal to 100% of the first 5% of the participants’ compensation contributed. The expense for Company contributions to the 401(k) Plan was $1.8 million in 2021, . Employee Health Benefits Non-Qualified Plans Certain Company executives, as determined by the Company’s Board from time-to-time, have post-retirement salary continuation agreements under an Executive Salary Continuation Plan. Retirement ages and retirement salary amounts are specified in each agreement. The Company accrues actuarial estimates of the costs of these benefits over the respective service periods; approximately $12.5 million and $12.1 million was accrued at December 31, 2021 and 2020, respectively. This plan is nonqualified, noncontributory, and unfunded. The charge to income for this plan during 2021, 2020, and 2019 was approximately $1.0 million, $1.1 million and, $1.1 million, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 11. 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, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the Plan was 3,383,373 at December 31, 2021. 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 is estimated on the date of grant using the Black-Scholes 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. Options A summary of activity in the Plan during the year ended December 31, 2021 is presented in the table below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Year Ended December 31, 2021 Outstanding at beginning of year: 1,554,894 $ 14.77 $ 20,274 Granted 214,452 19.46 1,790 Exercised (158,166 ) 14.38 (2,124 ) Forfeited (9,152 ) 18.37 (86 ) Expired — — — Outstanding at end of year 1,602,028 $ 15.42 6.02 $ 19,854 Exercisable at end of period 1,038,018 $ 13.34 5.14 $ 15,024 Vested at end of period 1,038,018 $ 13.34 5.14 $ 15,024 A summary of assumptions used to calculate the fair values of the awards is presented below: December 31, 2021 2020 2019 Expected volatility 41.20% to 41.32% 27.46 % 24.88% to 31.54% Expected dividend yield 1.00 % 0.70 % 0.70 % Expected term (years) 6.1 6.2 6.2 0.5 - 7.0 Risk-free interest rate 0.52% to 0.83% 1.44 % 1.46% to 2.63% Weighted average grant date fair value $ 7.07 $ 5.68 7.98 The total intrinsic value of options exercised during the years ended December 31, 2021, December 31, 2020, and December 31, 2019 was $2.1 million, $1.1 million, and $1.4 million, respectively. On January 16, 2019, the Company approved the conversion of its previously issued SARs to stock options. There were 1,401,000 outstanding SARs that were converted effective as of May 6, 2019, which are included in the tables above. The fair value of the SARs was $11.5 million at the conversion date. During the modification of these awards from liabilities to equity, the Company accelerated the expiration date, between two Restricted Stock Awards and Units A summary of activity in the Plan during the year ended December 31, 2021 is presented in the table below: Number of Shares Weighted-Average Grant Date Fair Value Year Ended December 31, 2021 Outstanding at beginning of year: 62,476 $ 19.47 Granted 6,370 19.62 Exercised (24,805 ) 19.70 Forfeited (1,274 ) 19.62 Outstanding at end of year 42,767 $ 19.35 Restricted stock units granted under the Plan typically vest from one For the years ended December 31, 2021, December 31, 2020, and December 31, 2019 the Company recorded stock-based compensation expense related to the Plan of $1.6 million, $1.3 million and $853, thousand, respectively. The total unrecognized compensation cost for the awards outstanding under the Plan at December 31, 2021 was $2.7 million and will be recognized over a weighted average remaining period of 1.47 years. The total fair value of restricted stock units vested during the years ended December 31, 2021, December 31, 2020, and December 31, 2019 was $489 thousand, $489 thousand, and $0, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES The components of income tax expense (benefit) was as follows: Years Ended December 31, 2021 2020 2019 Current expense Federal $ 12,834 $ 12,590 $ 6,923 State 220 248 224 Deferred expense Federal 1,453 (1,588 ) 334 Total $ 14,507 $ 11,250 $ 7,481 Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following: Years Ended December 31, 2021 2020 2019 Federal statutory rate times financial statement income $ 15,355 $ 11,887 $ 7,707 Effect of: Tax-exempt income (978 ) (863 ) (348 ) State taxes, net of federal benefit 174 196 177 Earnings from bank owned life insurance (262 ) (280 ) (272 ) Non-deductible expenses 281 248 190 Other, net (63 ) 62 27 Total $ 14,507 $ 11,250 $ 7,481 Year-end deferred tax assets and liabilities were due to the following: December 31, 2021 2020 Deferred tax assets Allowance for loan loss $ 8,840 $ 9,566 Deferred compensation 5,772 5,215 Other real estate owned — 251 Nonaccrual loans 21 59 Other 202 221 Total deferred tax assets 14,835 15,312 Deferred tax liabilities Depreciation (2,496 ) (2,432 ) Intangibles (586 ) (847 ) Prepaid expenses (547 ) (439 ) Mortgage servicing rights (4,137 ) (1,900 ) Unrealized gain on available-for-sale securities (2,438 ) (5,688 ) Other (1,593 ) (1,545 ) Total deferred tax liabilities (11,797 ) (12,851 ) Net deferred tax asset $ 3,038 $ 2,461 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED-PARTY TRANSACTIONS [Abstract] | |
RELATED-PARTY TRANSACTIONS | 13. RELATED-PARTY TRANSACTIONS Direct and indirect loans to executive officers, directors, significant stockholders and their related affiliates as of December 31, 2021 and 2020 aggregated approximately $12.2 million and $8.9 million, respectively. There were no charge-offs related to these loans in 2021 or 2020 and advance and repayment activity was routine. Deposits from these related parties in the CFS were not significant. |
OFF-BALANCE-SHEET ACTIVITIES, C
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract] | |
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES | 14. OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES Financial instruments with off-balance-sheet risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Company’s consolidated financial statements. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for recorded instruments. Financial instruments whose contract amounts represent credit risk outstanding at year-end follow: 2021 2020 Commitments to grant loans and unfunded commitments under lines of credit $ 542,338 $ 417,798 Standby letters-of-credit 12,418 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 – In July 2020, a vendor claimed that City Bank had breached a contract by failing to timely pay amounts allegedly due and owing. City Bank vigorously rejected any such non-payment contentions and filed suit against the vendor. With the lawsuit, City Bank sought, among other claims and relief, an injunction against the vendor. After an evidentiary hearing, the court entered a temporary injunction against the vendor expressly prohibiting it from, among other things, terminating the contract pending trial. Based upon discovery in the lawsuit, City Bank also filed a breach of contract claim against the vendor alleging that the vendor violated City Bank’s contractual exclusivity rights. The vendor has filed counterclaims, including for declaratory relief that the contracts should be declared unenforceable. In October 2021, the vendor filed a counterclaim alleging that City Bank’s attempted enforcement of its exclusivity rights contravenes the Texas Free Enterprise and Antitrust Act. The vendor purports to seek actual damages, to treble such actual damages, attorney's fees and expenses. The case remains ongoing and trial is set for October 2022. City Bank intends to continue a vigorous pursuit of its claims against the vendor. In addition, City Bank pursues a number of substantive factual and legal challenges to the vendor’s counterclaims and believes the counterclaims are without merit. At this time, the ultimate outcome is unknown and an estimated range of any loss cannot be made. The Company is a defendant in legal actions arising from time to time in the normal course of business. Management believes that the ultimate liability, if any, arising from these matters will not materially affect the CFS, based on information known as of the date the CFS were available to be issued. FHLB Letters of Credit – The Company has used FHLB letters of credit to pledge to certain public deposits. The balance of the FHLB letters of credit at December 31, 2020 was $199.0 million. These letters of credit expired in July 2021 and the Company began pledging securities to these public funds rather than renewing the letters of credit. As a result, there were no FHLB letters of credit outstanding at December 31, 2021. Lease Commitments Future minimum lease payments due under non-cancelable operating leases as of December 31, 2021 are as follows: 2022 $ 1,938 2023 1,739 2024 1,325 2025 978 2026 1,030 Thereafter 5,982 $ 12,992 |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2021 | |
CAPITAL AND REGULATORY MATTERS [Abstract] | |
CAPITAL AND REGULATORY MATTERS | 15. 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 Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (Basel III). Basel III, among other things, (i) introduces a new capital measure called Common Equity Tier 1 (“CET1”), (ii) specifies that Tier 1 capital consists of CET1 and Additional Tier 1 Capital instruments meeting specified requirements, (iii) defines Common Equity Tier 1 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) expands 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. The Company was in compliance with the fully phased in requirements at December 31, 2021. 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 and Tier 1 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 December 31, 2021 and 2020, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject. As of December 31, 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, and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since December 31, 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 December 31, 2021: Total Capital to Risk Weighted Assets: Consolidated $ 524,836 18.40 % $ 299,521 10.50 % N/A N/A City Bank 425,748 14.93 % 299,465 10.50 % $ 285,205 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 413,322 14.49 % 242,469 8.50 % N/A N/A City Bank 390,015 13.67 % 242,424 8.50 % 228,164 8.00 % Common Tier 1 (CET1): Consolidated 368,322 12.91 % 199,681 7.00 % N/A N/A City Bank 390,015 13.67 % 199,644 7.00 % 185,383 6.50 % Tier I Capital to Average Assets: Consolidated 413,322 10.77 % 154,592 4.00 % N/A N/A City Bank 390,015 10.16 % 154,503 4.00 % 191,859 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 Tier 1 (CET1): 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 would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 16. 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 changes in fair value hedges included in the Consolidated Statements of Comprehensive Income as of December 31: Interest Rate Contracts Location 2021 2020 2019 Change in fair value on interest rate swaps hedging fixed rate loans Interest income $ 498 $ (576 ) $ (520 ) Change in fair value on fixed rate loans - hedged item Interest income $ (512 ) $ 580 $ 511 The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of December 31: 2021 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 9,775 $ 429 $ 10,178 $ 927 The following table reflects the cash flow hedges included in the consolidated balance sheets: 2021 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 $ 5,686 $ 55,275 $ 1,618 Mortgage banking derivatives The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below as of December 31: Location 2021 2020 2019 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ (3,473 ) $ (754 ) $ 672 Interest rate lock commitments Net gain (loss) on sales of loans $ 1,681 $ 3,409 $ (249 ) The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets as of December 31: 2021 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 104,437 1,642 210,716 5,115 Total included in other assets $ 104,437 $ 1,642 $ 210,716 $ 5,115 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 93,120 $ 106 $ 203,669 $ 1,787 Interest rate lock commitments — — — — Total included in other liabilities $ 93,120 $ 106 $ 203,669 $ 1,787 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 17. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of South Plains Financial, Inc. follows: CONDENSED BALANCE SHEETS December 31, 2021 2020 ASSETS Cash and cash equivalents $ 96,243 $ 67,890 Investment in banking subsidiary 429,119 421,355 Investment in other subsidiary 51 51 Other assets 6,013 4,248 Total assets $ 531,426 $ 493,544 LIABILITIES AND STOCKHOLDERS’ EQUITY Debt $ 122,168 $ 121,982 Accrued expenses and other liabilities 1,831 1,514 Stockholders’ equity 407,427 370,048 Total liabilities and stockholders’ equity $ 531,426 $ 493,544 CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2021 2020 2019 Dividends $ 48,250 $ 20,500 $ 10,000 Other income 26 115 64 ESOP Contribution — — (1,800 ) Interest expense (4,936 ) (3,390 ) (3,562 ) Other expense (1,466 ) (1,572 ) (2,221 ) Income before income tax and undistributed subsidiary income 41,874 15,653 2,481 Income tax (benefit) (1,339 ) (1,018 ) (1,498 ) Equity in undistributed subsidiary income 15,401 28,682 25,241 Net Income $ 58,614 $ 45,353 $ 29,220 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 58,614 $ 45,353 $ 29,220 Adjustments: Equity in undistributed subsidiary income (15,401 ) (28,682 ) (25,241 ) Amortization of debt issuance costs 186 47 — Stock based compensation 1,639 1,272 853 Change in other assets (1,765 ) (342 ) (1,601 ) Change in other liabilities 317 131 541 Net cash from operating activities 43,590 17,779 3,772 Cash flows from investing activities: Cash paid in business combination — — (76,100 ) Net cash from investing activities — — (76,100 ) Cash flows from financing activities: Proceeds from long-term borrowings — 49,070 — Repayments of long-term borrowings — — (7,530 ) Issuance of common stock — — 51,392 Payments to tax authorities for stock-based compensation (625 ) (319 ) (351 ) Payments to repurchase common stock (9,227 ) (293 ) — Share based liability conversion — — 11,450 Cash dividends on common stock (5,385 ) (2,528 ) (1,079 ) Net cash from financing activities (15,237 ) 45,930 53,882 Net change in cash and cash equivalents 28,353 63,709 (18,446 ) Beginning cash and cash equivalents 67,890 4,181 22,627 Ending cash and cash equivalents $ 96,243 $ 67,890 $ 4,181 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 18. EARNINGS PER SHARE The factors used in the earnings per share computation follow: December 31, 2021 2020 2019 Net income $ 58,614 $ 45,353 $ 29,220 Weighted average common shares outstanding - basic 17,953,624 18,054,373 16,818,697 Weighted average common shares outstanding - diluted 18,492,218 18,339,033 17,040,550 Basic earnings per share $ 3.26 $ 2.51 $ 1.74 Diluted earnings per share $ 3.17 $ 2.47 $ 1.71 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 19. SEGMENT INFORMATION Financial results by reportable segment are detailed below: Banking Insurance Consolidated 2021 Net interest income $ 121,764 $ — $ 121,764 Provision for loan loss 1,918 — 1,918 Noninterest income 89,334 8,135 97,469 Noninterest expense (142,111 ) (5,919 ) (148,030 ) Income before income taxes 70,905 2,216 73,121 Income tax (expense) benefit (14,091 ) (416 ) (14,507 ) Net income $ 56,814 $ 1,800 $ 58,614 Total assets $ 3,890,751 $ 11,104 $ 3,901,855 Banking Insurance Consolidated 2020 Net interest income (expense) $ 122,285 $ — $ 122,285 Provision for loan loss (25,570 ) — (25,570 ) Noninterest income 94,010 7,593 101,603 Noninterest expense (135,985 ) (5,730 ) (141,715 ) Income before income taxes 54,740 1,863 56,603 Income tax (expense) benefit (10,804 ) (446 ) (11,250 ) Net income $ 43,936 $ 1,417 $ 45,353 Total assets $ 3,584,828 $ 14,332 $ 3,599,160 Banking Insurance Consolidated 2019 Net interest income (expense) $ 104,575 $ — $ 104,575 Provision for loan loss (2,799 ) — (2,799 ) Noninterest income 49,834 6,799 56,633 Noninterest expense (117,160 ) (4,548 ) (121,708 ) Income before income taxes 34,450 2,251 36,701 Income tax (expense) benefit (7,097 ) (384 ) (7,481 ) Net income $ 27,353 $ 1,867 $ 29,220 Total assets $ 3,224,396 $ 12,771 $ 3,237,167 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 20. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table details the changes in accumulated other comprehensive income (loss) by component, net of tax: Gains and (Losses) on Cash Flow Hedges Unrealized Gains and (Losses) on Securities Available for Sale Total 2021 Beginning balance $ (60 ) $ 21,399 $ 21,339 Other comprehensive income (loss) before reclassification 4,592 (12,229 ) (7,637 ) Amounts reclassified from other comprehensive — — — Net current period other comprehensive income 4,592 (12,229 ) (7,637 ) Ending balance $ 4,532 $ 9,170 $ 13,702 2020 Beginning balance $ — $ 958 $ 958 Other comprehensive income before reclassification (60 ) 22,272 22,212 Amounts reclassified from other comprehensive — (1,831 ) (1,831 ) Net current period other comprehensive income (60 ) 20,441 20,381 Ending balance $ (60 ) $ 21,399 $ 21,339 Amounts reclassified are shown on the Consolidated Statements of Comprehensive Income. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE DISCLOSURES | 21. 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 as of December 31: Level 1 Level 2 Level 3 Total 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal — 275,672 — 275,672 Mortgage-backed securities — 303,089 — 303,089 Collateralized mortgage obligations — 106,320 — 106,320 Asset-backed and other amortizing securities — 26,936 — 26,936 Other securities — 12,487 — 12,487 Loans held for sale (mandatory) — 47,593 — 47,593 Mortgage servicing rights — — 19,700 19,700 Asset derivatives — 7,328 — 7,328 Liability derivatives — (535 ) — (535 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 6,427 6,427 Other real estate owned — — — — Level 1 Level 2 Level 3 Total 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 Mortgage servicing rights are reported at fair value using Level 3 inputs. The mortgage servicing rights asset is valued by projecting net servicing cash flows, which are then discounted to estimate the fair value. The fair value of the mortgage servicing rights asset is impacted by a variety of factors . Derivatives Impaired loans Foreclosed assets Loans held for sale (best efforts) The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31: Fair Value Valuation Techniques Unobservable Inputs Range of Discounts 2021 Non-recurring: Impaired loans $ 6,427 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Other real estate owned — Third party appraisals or inspections Collateral discounts and selling costs 0 % Recurring: Mortgage servicing rights 19,700 Discounted cash flows Conditional prepayment rate 12.35 % Discount rate 9.14 % 2020 Non-recurring: 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 % Recurring: Mortgage servicing rights 9,049 Discounted cash flows Conditional prepayment rate 18.16 % Discount rate 9.72 % The following table summarizes carrying value measurements as of December 31: Carrying Amount Level 1 Level 2 Level 3 Total 2021 Financial assets: Cash and cash equivalents $ 486,821 $ 486,821 $ — $ — $ 486,821 Loans, net 2,395,479 — — 2,397,079 2,397,079 Accrued interest receivable 13,900 — 13,900 — 13,900 Bank-owned life insurance 71,978 — 71,978 — 71,978 Financial liabilities: Deposits 3,341,222 3,004,091 339,797 — 3,343,888 Accrued interest payable 1,914 — 1,914 — 1,914 Notes payable & other borrowings — — — — — Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,775 — 77,939 — 77,939 Carrying Amount Level 1 Level 2 Level 3 Total 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 | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 22. 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 Goodwill recorded in acquisition $ — |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS Dividend Declaration On January 20, 2022, the Company declared a cash dividend of $0.11 per share of common stock to be paid on February 14, 2022 to all shareholders of record as of January 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of Operations | Nature of Operations The following are subsidiaries of SPFI: Wholly-Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. 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 Company’s CFS are prepared and presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) |
Subsequent Events | The Company evaluated subsequent events for potential recognition and/or disclosure through the date the CFS were available to be issued. |
Use of Estimates | Use of Estimates |
Change in Capital Structure | Change in Capital Structure The Company completed a 29-to-1 stock split of the Company’s outstanding shares of common stock for shareholders of record as of March 11, 2019. The stock split was payable in the form of a dividend on or about March 11, 2019. Shareholders received 29 additional shares for each share held as of the record date. All share and per share amounts in the CFS have been retroactively adjusted to reflect this stock split for all periods presented. |
Stock Offering | Stock Offering |
Concentration of Credit Risk | Concentration of Credit Risk |
Risks and Uncertainties | Risks and Uncertainties |
Comprehensive Income | Comprehensive Income |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Securities | Securities When the fair value of a security is below its amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. The analysis considers (i) whether there is intent to sell securities prior to recovery and/or maturity, (ii) whether it is more likely than not that securities will have to be sold prior to recovery and/or maturity, and (iii) whether there is a credit loss component to the impairment. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of a security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition. |
Nonmarketable Equity Securities | Nonmarketable Equity Securities |
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. 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. |
Mortgage Servicing Rights | Mortgage Servicing Rights Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports change in fair value of servicing assets in earnings in the period in which the changes occur, and are included with other noninterest income in the CFS. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported in the CFS as other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and recorded when income is earned. Servicing income was $3.1 million, $781 thousand, and $325 thousand for the years ended December 31, 2021, 2020, and 2019, respectively. |
Transfers of Financial Assets | Transfers of Financial Assets |
Loans Held for Sale | Loans Held for Sale |
Premises and Equipment | Premises and Equipment |
Foreclosed Assets | Foreclosed Assets |
Bank-Owned Life Insurance | Bank-Owned Life Insurance |
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 using the straight-line method. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives In order to hedge the change in interest rates resulting from the commitments to fund the loans that will be sold through a best efforts contract, the Company enters into forward loans sales commitments for the future delivery of mortgage loans when interest rate locks are entered. At inception, these interest rate locks and the related forward loan sales commitments, adjusted for the expected exercise of the commitment before the loan is funded, are recorded with a zero value. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. In order to hedge the change in interest rates resulting from all other mortgage commitments to funds loans, the Company enters into forward sales of mortgage-backed securities contracts. At inception, these interest rate locks are recorded at fair value and are adjusted for the expected exercise of the commitment before the loan is funded. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gain on sales of loans in the CFS. |
Derivatives | Derivatives Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Revenue Recognition | Revenue Recognition – Service Charges on Deposit Accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Bank Card Services and Interchange Fees The Company earns bank card service and interchange fees from debit and credit cardholder transactions conducted through card payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Bank card services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees and service fees such as ATM use fees and are recognized at the time the transaction is executed. Investment Commissions and Fiduciary Trust Fees The Company earns investment commissions and fiduciary trust fees from its contracts with trust customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e., the trade date. Other related services provided include financial planning services and the fees the Company earns, which are based on a fixed fee schedule, are recognized when the services are rendered. In addition, certain trust customers have contracted with the Company to provide trust dissolution services, which are based on a unitary management fee treated as a single performance obligation. The Company’s performance obligation is satisfied over time based on the customer simultaneously receiving and consuming the benefits of the Company’s service. The unitary management fee is treated as variable consideration and is evaluated and included in the transaction price at the end of each reporting period (quarterly). Revenue is recognized based on a reasonable time based measure of progress towards the Company’s complete satisfaction of the performance obligation at the end of each respective reporting period, with the unearned amount based on progress measure being included in deferred contract liability. This variable consideration and the amount of revenue recognized is evaluated quarterly until the Company has entirely fulfilled its performance obligation, at which time the remaining unearned revenue is recognized. Gains/Losses on Sales of OREO The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. The Company did not have any significant contract balances at December 31, 2021 and 2020. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. Insurance Activities The Company’s primary source of revenues for insurance activities are commissions from underwriting enterprises, based on a percentage of premiums paid by clients. These commissions and fees revenues are substantially recognized at a point in time on the effective date of the associated policies when control of the policy transfers to the client. Commissions are fixed at the contract effective date and generally are based on a percentage of premiums for insurance coverage. Commissions depend upon a large number of factors, including the type of risk being placed, the particular underwriting enterprise’s demand, the expected loss experience of the particular risk of coverage, and historical benchmarks surrounding the level of effort necessary for us to place and service the insurance contract. |
Stock-Based Compensation | Stock-Based Compensation |
Advertising | Advertising |
Income Taxes | Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The State of Texas franchise tax is an income tax for financial reporting purposes under GAAP and the Company and its subsidiaries are subject to the modified tax as a combined group. |
Earnings per Share | Earnings per Share |
Fair Values of Financial Instruments | Fair Values of Financial Instruments |
Trust Assets | Trust Assets |
Segment Information | Segment Information |
Reclassification | Reclassification |
Change in Accounting Principle | Change in Accounting Principle |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). ASU 2016-02 Leases (Topic 842). Based upon an analysis performed, the Company estimates that the right-of-use asset and corresponding lease liability at adoption will be between $9.8 million and $10.7 million. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Subsidiaries Information | The following are subsidiaries of SPFI: Wholly-Owned, Consolidated Subsidiaries: City Bank Bank subsidiary Windmark Insurance Agency, Inc. 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) | 12 Months Ended |
Dec. 31, 2021 | |
SECURITIES [Abstract] | |
Amortized Cost and Fair Value of Securities | The amortized cost and fair value of securities, with gross unrealized gains and losses, at year-end follow: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 2021 Available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal 265,143 10,615 (86 ) 275,672 Mortgage-backed securities 302,973 4,230 (4,114 ) 303,089 Collateralized mortgage obligations 106,733 — (413 ) 106,320 Asset-backed and other amortizing securities 26,046 1,108 (218 ) 26,936 Other securities 12,000 487 — 12,487 $ 712,895 $ 16,440 $ (4,831 ) $ 724,504 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 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 December 31, 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 $ 1,939 $ 1,959 After 1 year through 5 years 7,563 7,941 After 5 years through 10 years 22,502 23,426 After 10 years 245,139 254,833 Other 435,752 436,345 $ 712,895 $ 724,504 |
Securities with Unrealized Losses Segregated by the Period in a Loss Position | The following table segregates securities with unrealized losses at year-end, by the period 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 2021 U.S. government and agencies $ — $ — $ — $ — $ — $ — State and municipal 21,255 86 — — 21,255 86 Mortgage-backed securities 56,398 1,197 64,764 2,917 121,162 4,114 Collateralized mortgage obligations 106,320 413 — — 106,320 413 Asset-backed and other amortizing securities 1,624 218 — — 1,624 218 Other securities — — — — — — $ 185,597 $ 1,914 $ 64,764 $ 2,917 $ 250,361 $ 4,831 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 3,486 — — — 3,486 — Other securities — 13 — — — 13 $ 203,683 $ 787 $ — $ — $ 203,683 $ 787 |
LOANS HELD FOR INVESTMENT (Tabl
LOANS HELD FOR INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOANS HELD FOR INVESTMENT [Abstract] | |
Summary of Loans Held for Investment by Category | Loans are summarized by category at year-end as follows: 2021 2020 Commercial real estate $ 755,444 $ 663,344 Commercial - specialized 378,725 311,686 Commercial - general 460,024 518,309 Consumer: 1-4 family residential 387,690 360,315 Auto loans 240,719 205,840 Other consumer 68,113 67,595 Construction 146,862 94,494 2,437,577 2,221,583 Allowance for loan losses (42,098 ) (45,553 ) Loans, net $ 2,395,479 $ 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 during 2021 and 2020. 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 2021 Commercial real estate $ 18,962 $ (1,826 ) $ — $ 109 $ 17,245 Commercial - specialized 5,760 (1,386 ) (172 ) 161 4,363 Commercial - general 9,227 (302 ) (677 ) 218 8,466 Consumer: 1-4 family residential 4,646 666 (52 ) 8 5,268 Auto loans 4,226 (90 ) (598 ) 115 3,653 Other consumer 1,671 339 (903 ) 250 1,357 Construction 1,061 681 — 4 1,746 Total $ 45,553 $ (1,918 ) $ (2,402 ) $ 865 $ 42,098 2020 Commercial real estate $ 5,049 $ 13,618 $ (7 ) $ 302 $ 18,962 Commercial - specialized 2,287 4,514 (1,162 ) 121 5,760 Commercial - general 9,609 1,219 (1,811 ) 210 9,227 Consumer: 1-4 family residential 2,093 2,478 (56 ) 131 4,646 Auto loans 3,385 1,814 (1,165 ) 192 4,226 Other consumer 1,341 1,300 (1,358 ) 388 1,671 Construction 433 627 — 1 1,061 Total $ 24,197 $ 25,570 $ (5,559 ) $ 1,345 $ 45,553 2019 Commercial real estate $ 5,579 $ (961 ) $ — $ 431 $ 5,049 Commercial - specialized 2,516 2 (355 ) 124 2,287 Commercial - general 8,173 1,209 (306 ) 533 9,609 Consumer: 1-4 family residential 2,249 219 (436 ) 61 2,093 Auto loans 2,994 1,276 (1,067 ) 182 3,385 Other consumer 1,192 969 (1,034 ) 214 1,341 Construction 423 85 (75 ) — 433 Total $ 23,126 $ 2,799 $ (3,273 ) $ 1,545 $ 24,197 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 2021 Commercial real estate $ 1,101 $ 754,343 $ 584 $ 16,661 Commercial - specialized — 378,725 — 4,363 Commercial - general 5,078 454,946 585 7,881 Consumer: 1-4 family residential 1,592 386,098 175 5,093 Auto loans — 240,719 — 3,653 Other consumer — 68,113 — 1,357 Construction — 146,862 — 1,746 Total $ 7,771 $ 2,429,806 $ 1,344 $ 40,754 2020 Commercial - $ 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 at year-end follows: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment 2021 Commercial real estate $ 1,101 $ — $ 1,101 $ 1,101 $ 584 $ 3,687 Commercial -specialized — — — — — — Commercial - general 5,078 1,143 3,935 5,078 585 4,852 Consumer: 1-4 family 1,592 880 712 1,592 175 1,857 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — Total $ 7,771 $ 2,023 $ 5,748 $ 7,771 $ 1,344 $ 10,396 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 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 at year-end: 30-89 Days Past Due 90 Days or More Past Due Nonaccrual 2021 Commercial real estate $ 393 $ 45 $ 1,101 Commercial - specialized 265 20 156 Commercial - general 4,032 97 5,236 Consumer: 1-4 Family residential 2,496 903 2,815 Auto loans 332 — — Other consumer 538 15 44 Construction 937 — 166 Total $ 8,993 $ 1,080 $ 9,518 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 at year-end: Pass Special Mention Substandard Doubtful Total 2021 Commercial real estate $ 713,852 $ — $ 41,592 $ — $ 755,444 Commercial - specialized 372,797 — 5,928 — 378,725 Commercial - general 450,790 1,676 7,558 — 460,024 Consumer: 1-4 family residential 379,458 — 8,232 — 387,690 Auto loans 239,869 — 850 — 240,719 Other consumer 67,822 — 291 — 68,113 Construction 146,696 — 166 — 146,862 Total $ 2,371,284 $ 1,676 $ 64,617 $ — $ 2,437,577 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 |
FORECLOSED ASSETS (Tables)
FORECLOSED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FORECLOSED ASSETS [Abstract] | |
Foreclosed Assets Activity | Foreclosed assets activity was as follows: 2021 2020 2019 Beginning balance $ 1,353 $ 1,883 $ 2,285 Additions 927 1,867 3,469 Sales, net (1,248 ) (2,397 ) (3,871 ) Current year valuation write-down — — — Ending balance $ 1,032 $ 1,353 $ 1,883 |
Activity in Valuation Allowance | Activity in the valuation allowance was as follows: 2021 2020 2019 Beginning balance $ — $ — $ — Current year valuation write-down — — — Reductions from sales — — — Ending balance $ — $ — $ — |
Net Expenses Related to Foreclosed Assets | Net expenses related to foreclosed assets include: 2021 2020 2019 Net loss (gain) on sales $ (44 ) $ (40 ) $ 37 Current year valuation write-down — — — Operating expenses, net of rental income 57 75 71 Foreclosed assets expense, net $ 13 $ 35 $ 108 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREMISES AND EQUIPMENT [Abstract] | |
Premises and Equipment | Detail of premises and equipment at year-end follows: 2021 2020 Land $ 10,065 $ 10,825 Buildings and improvements 65,986 65,840 Furniture and equipment 48,281 46,443 Construction in process 659 29 124,991 123,137 Less accumulated depreciation (67,292 ) (62,806 ) Premises and equipment, net $ 57,699 $ 60,331 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND INTANGIBLES [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets, which consist of CDI, customer lists, and employment agreements are summarized below: 2021 2020 2019 Beginning goodwill $ 19,508 $ 18,757 $ — Arising from business combinations — — 18,757 Measurement period acquisition adjustment — 751 — Ending goodwill $ 19,508 $ 19,508 $ 18,757 Amortized intangible assets: Customer relationship intangibles $ 6,679 $ 6,679 $ 6,679 Less: Accumulated amortization (2,469 ) (1,396 ) (202 ) 4,210 5,283 6,477 Other intangibles 2,972 2,309 2,309 Arising from business combinations — 663 — Less: Accumulated amortization (1,287 ) (693 ) (154 ) 1,685 2,279 2,155 Other intangible assets, net $ 5,895 $ 7,562 $ 8,632 |
Estimated Amount of Amortization Expense to Be Recognized over Next Five Years | The estimated amount of amortization expense for core deposit intangible and other intangible assets to be recognized over the next five years is as follows: CDI Other Intangible Total 2022 $ 951 $ 594 $ 1,545 2023 830 595 1,425 2024 708 441 1,149 2025 587 55 642 2026 466 — 466 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
MORTGAGE SERVICING RIGHTS [Abstract] | |
Change in Fair Value of Mortgage Servicing Rights Asset and Other Information | The following table reflects the changes in fair value of the Company’s mortgage servicing rights asset included in the Consolidated Balance Sheets, and other information related to the serviced portfolio: 2021 2020 2019 Beginning balance $ 9,049 $ 2,054 $ 1,270 Additions 9,196 9,829 1,332 Valuation adjustment 1,455 (2,834 ) (548 ) Ending balance $ 19,700 $ 9,049 $ 2,054 Mortgage loans serviced for others $ 1,953,095 $ 1,203,687 $ 247,326 Mortgage servicing rights asset as a percentage of serviced mortgage loans 1 % 1 % 1 % |
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights | The following table reflects the key assumptions used in measuring the fair value of the Company’s mortgage servicing rights: 2021 2020 Weighted average constant prepayment rate 12.35 % 18.16 % Weighted average discount rate 9.14 % 9.72 % Weighted average life in years 6.03 4.48 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DEPOSITS [Abstract] | |
Maturities of Time Deposits | The scheduled maturities of time deposits at December 31, 2021 follows: 2022 $ 258,584 2023 66,613 2024 8,154 2025 3,272 2026 2,910 Thereafter 205 $ 339,738 |
BORROWING ARRANGEMENTS (Tables)
BORROWING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWING ARRANGEMENTS [Abstract] | |
Short-Term Borrowings | The following table summarizes our short-term borrowings at year-end: 2021 2020 Federal funds purchased $ — $ 26,550 FHLB advances - short-term — — Total $ — $ 26,550 |
FHLB Advances | The following table is a detail of the advances as of December 31: Issue Date Original Amount of Advance 2021 Balance 2020 Maturity Date Interest Rate at Decemb er 31, 2020 2013 $ 20,000 $ — $ — 2020 Fixed; 2015 25,000 — 25,000 2025 Variable 2015 25,000 — 25,000 2025 Variable 2015 25,000 — 25,000 2025 Variable $ 95,000 $ — $ 75,000 |
Debentures and Trust Preferred Securities | The following table is a detail of the debentures and TPS at December 31, 2021: Issue Date Amount of TPS Amount of Debentures Stated Maturity Date of TPS and Debentures (1) Interest Rate of TPS and Debentures (2)(3) South Plains Financial Capital Trust III 2004 $ 10,000 $ 10,310 2034 3-mo. LIBOR + 265bps; 2.77% South Plains Financial Capital Trust IV 2005 20,000 20,619 2035 3-mo. LIBOR + 139bps; 1.59% South Plains Financial Capital Trust V 2007 15,000 15,464 2037 3-mo. LIBOR + 150bps; 1.70% Total $ 45,000 $ 46,393 (1) May be redeemed five years from the issue date, the Company has no current plans to redeem; (2) Interest payable quarterly with principal due at maturity; (3) Rate as of last reset date. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock Option Activity | A summary of activity in the Plan during the year ended December 31, 2021 is presented in the table below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Year Ended December 31, 2021 Outstanding at beginning of year: 1,554,894 $ 14.77 $ 20,274 Granted 214,452 19.46 1,790 Exercised (158,166 ) 14.38 (2,124 ) Forfeited (9,152 ) 18.37 (86 ) Expired — — — Outstanding at end of year 1,602,028 $ 15.42 6.02 $ 19,854 Exercisable at end of period 1,038,018 $ 13.34 5.14 $ 15,024 Vested at end of period 1,038,018 $ 13.34 5.14 $ 15,024 |
Summary of Assumptions Used to Calculate Fair Value of Awards | A summary of assumptions used to calculate the fair values of the awards is presented below: December 31, 2021 2020 2019 Expected volatility 41.20% to 41.32% 27.46 % 24.88% to 31.54% Expected dividend yield 1.00 % 0.70 % 0.70 % Expected term (years) 6.1 6.2 6.2 0.5 - 7.0 Risk-free interest rate 0.52% to 0.83% 1.44 % 1.46% to 2.63% Weighted average grant date fair value $ 7.07 $ 5.68 7.98 |
Summary of Activity of Restricted Stock Units | A summary of activity in the Plan during the year ended December 31, 2021 is presented in the table below: Number of Shares Weighted-Average Grant Date Fair Value Year Ended December 31, 2021 Outstanding at beginning of year: 62,476 $ 19.47 Granted 6,370 19.62 Exercised (24,805 ) 19.70 Forfeited (1,274 ) 19.62 Outstanding at end of year 42,767 $ 19.35 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) was as follows: Years Ended December 31, 2021 2020 2019 Current expense Federal $ 12,834 $ 12,590 $ 6,923 State 220 248 224 Deferred expense Federal 1,453 (1,588 ) 334 Total $ 14,507 $ 11,250 $ 7,481 |
Effective Income Tax Rate Reconciliation | Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following: Years Ended December 31, 2021 2020 2019 Federal statutory rate times financial statement income $ 15,355 $ 11,887 $ 7,707 Effect of: Tax-exempt income (978 ) (863 ) (348 ) State taxes, net of federal benefit 174 196 177 Earnings from bank owned life insurance (262 ) (280 ) (272 ) Non-deductible expenses 281 248 190 Other, net (63 ) 62 27 Total $ 14,507 $ 11,250 $ 7,481 |
Deferred Tax Assets and Liabilities | Year-end deferred tax assets and liabilities were due to the following: December 31, 2021 2020 Deferred tax assets Allowance for loan loss $ 8,840 $ 9,566 Deferred compensation 5,772 5,215 Other real estate owned — 251 Nonaccrual loans 21 59 Other 202 221 Total deferred tax assets 14,835 15,312 Deferred tax liabilities Depreciation (2,496 ) (2,432 ) Intangibles (586 ) (847 ) Prepaid expenses (547 ) (439 ) Mortgage servicing rights (4,137 ) (1,900 ) Unrealized gain on available-for-sale securities (2,438 ) (5,688 ) Other (1,593 ) (1,545 ) Total deferred tax liabilities (11,797 ) (12,851 ) Net deferred tax asset $ 3,038 $ 2,461 |
OFF-BALANCE-SHEET ACTIVITIES,_2
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract] | |
Financial Instrument Whose Contract Amounts Represent Credit Risk Outstanding | Financial instruments whose contract amounts represent credit risk outstanding at year-end follow: 2021 2020 Commitments to grant loans and unfunded commitments under lines of credit $ 542,338 $ 417,798 Standby letters-of-credit 12,418 10,481 |
Future Minimum Lease Payments Due under Non-Cancelable Operating Leases | Future minimum lease payments due under non-cancelable operating leases as of December 31, 2021 are as follows: 2022 $ 1,938 2023 1,739 2024 1,325 2025 978 2026 1,030 Thereafter 5,982 $ 12,992 |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021: Total Capital to Risk Weighted Assets: Consolidated $ 524,836 18.40 % $ 299,521 10.50 % N/A N/A City Bank 425,748 14.93 % 299,465 10.50 % $ 285,205 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 413,322 14.49 % 242,469 8.50 % N/A N/A City Bank 390,015 13.67 % 242,424 8.50 % 228,164 8.00 % Common Tier 1 (CET1): Consolidated 368,322 12.91 % 199,681 7.00 % N/A N/A City Bank 390,015 13.67 % 199,644 7.00 % 185,383 6.50 % Tier I Capital to Average Assets: Consolidated 413,322 10.77 % 154,592 4.00 % N/A N/A City Bank 390,015 10.16 % 154,503 4.00 % 191,859 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 Tier 1 (CET1): 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) | 12 Months Ended |
Dec. 31, 2021 | |
Mortgage Banking [Member] | |
Derivative [Line Items] | |
Net Gains (Losses) Relating to Derivative Instruments | The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below as of December 31: Location 2021 2020 2019 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ (3,473 ) $ (754 ) $ 672 Interest rate lock commitments Net gain (loss) on sales of loans $ 1,681 $ 3,409 $ (249 ) |
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 as of December 31: 2021 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 104,437 1,642 210,716 5,115 Total included in other assets $ 104,437 $ 1,642 $ 210,716 $ 5,115 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 93,120 $ 106 $ 203,669 $ 1,787 Interest rate lock commitments — — — — Total included in other liabilities $ 93,120 $ 106 $ 203,669 $ 1,787 |
Fair Value Hedging [Member] | |
Derivative [Line Items] | |
Fair Value of Derivatives in Consolidated Balance Sheets | The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of December 31: 2021 2020 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 9,775 $ 429 $ 10,178 $ 927 |
Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Fair Value of Derivatives in Consolidated Balance Sheets | The following table reflects the cash flow hedges included in the consolidated balance sheets: 2021 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 $ 5,686 $ 55,275 $ 1,618 |
Interest Rate Contracts [Member] | Fair Value Hedging [Member] | |
Derivative [Line Items] | |
Net Gains (Losses) Relating to Derivative Instruments | The following table reflects the changes in fair value hedges included in the Consolidated Statements of Comprehensive Income as of December 31: Interest Rate Contracts Location 2021 2020 2019 Change in fair value on interest rate swaps hedging fixed rate loans Interest income $ 498 $ (576 ) $ (520 ) Change in fair value on fixed rate loans - hedged item Interest income $ (512 ) $ 580 $ 511 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2021 2020 ASSETS Cash and cash equivalents $ 96,243 $ 67,890 Investment in banking subsidiary 429,119 421,355 Investment in other subsidiary 51 51 Other assets 6,013 4,248 Total assets $ 531,426 $ 493,544 LIABILITIES AND STOCKHOLDERS’ EQUITY Debt $ 122,168 $ 121,982 Accrued expenses and other liabilities 1,831 1,514 Stockholders’ equity 407,427 370,048 Total liabilities and stockholders’ equity $ 531,426 $ 493,544 |
Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2021 2020 2019 Dividends $ 48,250 $ 20,500 $ 10,000 Other income 26 115 64 ESOP Contribution — — (1,800 ) Interest expense (4,936 ) (3,390 ) (3,562 ) Other expense (1,466 ) (1,572 ) (2,221 ) Income before income tax and undistributed subsidiary income 41,874 15,653 2,481 Income tax (benefit) (1,339 ) (1,018 ) (1,498 ) Equity in undistributed subsidiary income 15,401 28,682 25,241 Net Income $ 58,614 $ 45,353 $ 29,220 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 58,614 $ 45,353 $ 29,220 Adjustments: Equity in undistributed subsidiary income (15,401 ) (28,682 ) (25,241 ) Amortization of debt issuance costs 186 47 — Stock based compensation 1,639 1,272 853 Change in other assets (1,765 ) (342 ) (1,601 ) Change in other liabilities 317 131 541 Net cash from operating activities 43,590 17,779 3,772 Cash flows from investing activities: Cash paid in business combination — — (76,100 ) Net cash from investing activities — — (76,100 ) Cash flows from financing activities: Proceeds from long-term borrowings — 49,070 — Repayments of long-term borrowings — — (7,530 ) Issuance of common stock — — 51,392 Payments to tax authorities for stock-based compensation (625 ) (319 ) (351 ) Payments to repurchase common stock (9,227 ) (293 ) — Share based liability conversion — — 11,450 Cash dividends on common stock (5,385 ) (2,528 ) (1,079 ) Net cash from financing activities (15,237 ) 45,930 53,882 Net change in cash and cash equivalents 28,353 63,709 (18,446 ) Beginning cash and cash equivalents 67,890 4,181 22,627 Ending cash and cash equivalents $ 96,243 $ 67,890 $ 4,181 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Factors Used in Earnings Per Share Computation | The factors used in the earnings per share computation follow: December 31, 2021 2020 2019 Net income $ 58,614 $ 45,353 $ 29,220 Weighted average common shares outstanding - basic 17,953,624 18,054,373 16,818,697 Weighted average common shares outstanding - diluted 18,492,218 18,339,033 17,040,550 Basic earnings per share $ 3.26 $ 2.51 $ 1.74 Diluted earnings per share $ 3.17 $ 2.47 $ 1.71 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION [Abstract] | |
Financial Results by Reportable Segment | Financial results by reportable segment are detailed below: Banking Insurance Consolidated 2021 Net interest income $ 121,764 $ — $ 121,764 Provision for loan loss 1,918 — 1,918 Noninterest income 89,334 8,135 97,469 Noninterest expense (142,111 ) (5,919 ) (148,030 ) Income before income taxes 70,905 2,216 73,121 Income tax (expense) benefit (14,091 ) (416 ) (14,507 ) Net income $ 56,814 $ 1,800 $ 58,614 Total assets $ 3,890,751 $ 11,104 $ 3,901,855 Banking Insurance Consolidated 2020 Net interest income (expense) $ 122,285 $ — $ 122,285 Provision for loan loss (25,570 ) — (25,570 ) Noninterest income 94,010 7,593 101,603 Noninterest expense (135,985 ) (5,730 ) (141,715 ) Income before income taxes 54,740 1,863 56,603 Income tax (expense) benefit (10,804 ) (446 ) (11,250 ) Net income $ 43,936 $ 1,417 $ 45,353 Total assets $ 3,584,828 $ 14,332 $ 3,599,160 Banking Insurance Consolidated 2019 Net interest income (expense) $ 104,575 $ — $ 104,575 Provision for loan loss (2,799 ) — (2,799 ) Noninterest income 49,834 6,799 56,633 Noninterest expense (117,160 ) (4,548 ) (121,708 ) Income before income taxes 34,450 2,251 36,701 Income tax (expense) benefit (7,097 ) (384 ) (7,481 ) Net income $ 27,353 $ 1,867 $ 29,220 Total assets $ 3,224,396 $ 12,771 $ 3,237,167 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax | The following table details the changes in accumulated other comprehensive income (loss) by component, net of tax: Gains and (Losses) on Cash Flow Hedges Unrealized Gains and (Losses) on Securities Available for Sale Total 2021 Beginning balance $ (60 ) $ 21,399 $ 21,339 Other comprehensive income (loss) before reclassification 4,592 (12,229 ) (7,637 ) Amounts reclassified from other comprehensive — — — Net current period other comprehensive income 4,592 (12,229 ) (7,637 ) Ending balance $ 4,532 $ 9,170 $ 13,702 2020 Beginning balance $ — $ 958 $ 958 Other comprehensive income before reclassification (60 ) 22,272 22,212 Amounts reclassified from other comprehensive — (1,831 ) (1,831 ) Net current period other comprehensive income (60 ) 20,441 20,381 Ending balance $ (60 ) $ 21,399 $ 21,339 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE DISCLOSURES [Abstract] | |
Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis | The following table summarizes fair value measurements as of December 31: Level 1 Level 2 Level 3 Total 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: U.S. government and agencies $ — $ — $ — $ — State and municipal — 275,672 — 275,672 Mortgage-backed securities — 303,089 — 303,089 Collateralized mortgage obligations — 106,320 — 106,320 Asset-backed and other amortizing securities — 26,936 — 26,936 Other securities — 12,487 — 12,487 Loans held for sale (mandatory) — 47,593 — 47,593 Mortgage servicing rights — — 19,700 19,700 Asset derivatives — 7,328 — 7,328 Liability derivatives — (535 ) — (535 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 6,427 6,427 Other real estate owned — — — — Level 1 Level 2 Level 3 Total 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 Recurring ad Non-Recurring Level 3 Fair Value Measurements | The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31: Fair Value Valuation Techniques Unobservable Inputs Range of Discounts 2021 Non-recurring: Impaired loans $ 6,427 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Other real estate owned — Third party appraisals or inspections Collateral discounts and selling costs 0 % Recurring: Mortgage servicing rights 19,700 Discounted cash flows Conditional prepayment rate 12.35 % Discount rate 9.14 % 2020 Non-recurring: 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 % Recurring: Mortgage servicing rights 9,049 Discounted cash flows Conditional prepayment rate 18.16 % Discount rate 9.72 % |
Summary of Carrying Amounts of Financial Instruments | The following table summarizes carrying value measurements as of December 31: Carrying Amount Level 1 Level 2 Level 3 Total 2021 Financial assets: Cash and cash equivalents $ 486,821 $ 486,821 $ — $ — $ 486,821 Loans, net 2,395,479 — — 2,397,079 2,397,079 Accrued interest receivable 13,900 — 13,900 — 13,900 Bank-owned life insurance 71,978 — 71,978 — 71,978 Financial liabilities: Deposits 3,341,222 3,004,091 339,797 — 3,343,888 Accrued interest payable 1,914 — 1,914 — 1,914 Notes payable & other borrowings — — — — — Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,775 — 77,939 — 77,939 Carrying Amount Level 1 Level 2 Level 3 Total 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) | 12 Months Ended |
Dec. 31, 2021 | |
Windmark Insurance Agency, Inc. [Member] | Crop Insurance Agency in Nebraska [Member] | |
Business Combinations [Abstract] | |
Fair Value of the Assets Acquired and Liabilities Assumed | 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 Goodwill recorded in acquisition $ — |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | Mar. 11, 2019$ / sharesshares | May 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021USD ($)Segment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Mar. 10, 2019shares | Dec. 31, 2018USD ($) |
Change in Capital Structure [Abstract] | |||||||
Number of shares of common stock authorized (in shares) | shares | 30,000,000 | 30,000,000 | 30,000,000 | 1,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | ||||
Stock split ratio | 29 | ||||||
Loans [Abstract] | |||||||
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status | 90 days | ||||||
Mortgage Servicing Rights [Abstract] | |||||||
Servicing income | $ 3,100 | $ 781 | $ 325 | ||||
Goodwill and Other Intangible Assets [Abstract] | |||||||
Impairment loss | 0 | 0 | |||||
Mortgage Banking Derivatives [Abstract] | |||||||
Recorded value of interest locks at inception | 0 | ||||||
Recorded value of forward loan sales commitments at inception | 0 | ||||||
Advertising [Abstract] | |||||||
Advertising costs | $ 2,600 | 2,600 | $ 2,200 | ||||
Segment Information [Abstract] | |||||||
Number of reportable segments | Segment | 2 | ||||||
Change in Accounting Principle [Abstract] | |||||||
Cumulative-effect adjustment to retained earnings, net | $ 242,750 | $ 189,521 | |||||
Minimum [Member] | |||||||
Allowance for Loan Losses [Abstract] | |||||||
Threshold balance of loan to be specifically reviewed for impairment | 250 | ||||||
Minimum [Member] | ASU 2016-02 [Member] | |||||||
Recent Accounting Pronouncements [Abstract] | |||||||
Right-of-use asset | 9,800 | ||||||
Lease liability | 9,800 | ||||||
Maximum [Member] | ASU 2016-02 [Member] | |||||||
Recent Accounting Pronouncements [Abstract] | |||||||
Right-of-use asset | 10,700 | ||||||
Lease liability | $ 10,700 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Change in Accounting Principle [Abstract] | |||||||
Cumulative-effect adjustment to retained earnings, net | $ 1,300 | ||||||
Cumulative-effect adjustment to retained earnings, before tax | 1,600 | ||||||
Cumulative-effect adjustment to retained earnings, tax | 340 | ||||||
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. | ||||||
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 | ||||||
Core Deposit Intangible [Member] | |||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||
Estimated useful lives | 10 years | ||||||
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 | ||||||
Initial Public Offering [Member] | |||||||
Stock Offering [Abstract] | |||||||
Issuance of common stock, net (in shares) | shares | 3,207,000 | ||||||
Common stock sold to underwriters (in shares) | shares | 507,000 | ||||||
Offering price (in dollars per share) | $ / shares | $ 17.50 | ||||||
Aggregate gross proceeds from initial public offering | $ 56,100 | ||||||
Aggregate net proceeds from initial public offering | $ 51,400 | ||||||
Building and Improvements [Member] | Maximum [Member] | |||||||
Premises and Equipment [Abstract] | |||||||
Useful life | 40 years | ||||||
Furniture and Equipment [Member] | Minimum [Member] | |||||||
Premises and Equipment [Abstract] | |||||||
Useful life | 3 years | ||||||
Furniture and Equipment [Member] | Maximum [Member] | |||||||
Premises and Equipment [Abstract] | |||||||
Useful life | 10 years | ||||||
Substandard or Worse [Member] | Minimum [Member] | |||||||
Allowance for Loan Losses [Abstract] | |||||||
Threshold balance of loan to be specifically reviewed for impairment | $ 250 | ||||||
Stock Appreciation Rights (SARs) [Member] | |||||||
Change in Accounting Principle [Abstract] | |||||||
Fair value in excess of recorded intrinsic value | $ 1,600 |
SECURITIES, Available for Sale
SECURITIES, Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale [Abstract] | ||
Amortized cost | $ 712,895 | $ 775,999 |
Gross unrealized gains | 16,440 | 27,875 |
Gross unrealized losses | (4,831) | (787) |
Fair value | 724,504 | 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 | 265,143 | 261,023 |
Gross unrealized gains | 10,615 | 11,704 |
Gross unrealized losses | (86) | (120) |
Fair value | 275,672 | 272,607 |
Mortgage-backed Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 302,973 | 359,542 |
Gross unrealized gains | 4,230 | 14,014 |
Gross unrealized losses | (4,114) | (194) |
Fair value | 303,089 | 373,362 |
Collateralized Mortgage Obligations [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 106,733 | 107,175 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (413) | (460) |
Fair value | 106,320 | 106,715 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 26,046 | 31,509 |
Gross unrealized gains | 1,108 | 2,063 |
Gross unrealized losses | (218) | 0 |
Fair value | 26,936 | 33,572 |
Other Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 12,000 | 12,000 |
Gross unrealized gains | 487 | 91 |
Gross unrealized losses | 0 | (13) |
Fair value | $ 12,487 | $ 12,078 |
SECURITIES, Amortized Cost and
SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available for Sale, Amortized Cost [Abstract] | ||
Within 1 year | $ 1,939 | |
After 1 year through 5 years | 7,563 | |
After 5 years through 10 years | 22,502 | |
After 10 years | 245,139 | |
Other | 435,752 | |
Amortized cost | 712,895 | $ 775,999 |
Available for Sale, Fair Value [Abstract] | ||
Within 1 year | 1,959 | |
After 1 year through 5 years | 7,941 | |
After 5 years through 10 years | 23,426 | |
After 10 years | 254,833 | |
Other | 436,345 | |
Fair value | $ 724,504 | $ 803,087 |
SECURITIES, Securities Transfer
SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | $ | $ 474.5 | $ 292.2 |
SECURITIES, Securities with Unr
SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands | Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($) |
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | $ 185,597 | $ 203,683 |
12 months or more | 64,764 | 0 |
Total | 250,361 | 203,683 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 1,914 | 787 |
12 months or more | 2,917 | 0 |
Total | $ 4,831 | 787 |
Number of securities with an unrealized loss | Security | 23 | |
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 | 21,255 | 0 |
12 months or more | 0 | 0 |
Total | 21,255 | 0 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 86 | 120 |
12 months or more | 0 | 0 |
Total | 86 | 120 |
Mortgage-backed Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 56,398 | 93,482 |
12 months or more | 64,764 | 0 |
Total | 121,162 | 93,482 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 1,197 | 194 |
12 months or more | 2,917 | 0 |
Total | 4,114 | 194 |
Collateralized Mortgage Obligations [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 106,320 | 106,715 |
12 months or more | 0 | 0 |
Total | 106,320 | 106,715 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 413 | 460 |
12 months or more | 0 | 0 |
Total | 413 | 460 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 1,624 | 3,486 |
12 months or more | 0 | 0 |
Total | 1,624 | 3,486 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 218 | 0 |
12 months or more | 0 | 0 |
Total | 218 | 0 |
Other 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 | 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 | 12 Months Ended | |||
Dec. 31, 2021USD ($)Category | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary of Loans by Category [Abstract] | ||||
Loans, gross | $ 2,437,577 | $ 2,221,583 | ||
Allowance for loan losses | (42,098) | (45,553) | $ (24,197) | $ (23,126) |
Loans held for investment, net | 2,395,479 | 2,176,030 | ||
Commercial Real Estate [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 755,444 | 663,344 | ||
Allowance for loan losses | $ (17,245) | (18,962) | (5,049) | (5,579) |
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 | $ 378,725 | 311,686 | ||
Allowance for loan losses | (4,363) | (5,760) | (2,287) | (2,516) |
Commercial [Member] | General [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 460,024 | 518,309 | ||
Allowance for loan losses | (8,466) | (9,227) | (9,609) | (8,173) |
Consumer [Member] | 1-4 Family Residential [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 387,690 | 360,315 | ||
Allowance for loan losses | (5,268) | (4,646) | (2,093) | (2,249) |
Consumer [Member] | Auto Loans [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 240,719 | 205,840 | ||
Allowance for loan losses | (3,653) | (4,226) | (3,385) | (2,994) |
Consumer [Member] | Other Consumer [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 68,113 | 67,595 | ||
Allowance for loan losses | (1,357) | (1,671) | (1,341) | (1,192) |
Construction [Member] | ||||
Summary of Loans by Category [Abstract] | ||||
Loans, gross | 146,862 | 94,494 | ||
Allowance for loan losses | $ (1,746) | $ (1,061) | $ (433) | $ (423) |
LOANS HELD FOR INVESTMENT, Acti
LOANS HELD FOR INVESTMENT, Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LOANS HELD FOR INVESTMENT [Abstract] | ||||
Ratio of allowance for loan losses to loans held for investment | 1.73% | 2.05% | ||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | $ 45,553 | $ 24,197 | $ 23,126 | |
Provision for Loan Losses | $ 2,000 | (1,918) | 25,570 | 2,799 |
Charge-offs | (2,402) | (5,559) | (3,273) | |
Recoveries | 865 | 1,345 | 1,545 | |
Ending Balance | 42,098 | 45,553 | 24,197 | |
Commercial Real Estate [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 18,962 | 5,049 | 5,579 | |
Provision for Loan Losses | (1,826) | 13,618 | (961) | |
Charge-offs | 0 | (7) | 0 | |
Recoveries | 109 | 302 | 431 | |
Ending Balance | 17,245 | 18,962 | 5,049 | |
Commercial [Member] | Specialized [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 5,760 | 2,287 | 2,516 | |
Provision for Loan Losses | (1,386) | 4,514 | 2 | |
Charge-offs | (172) | (1,162) | (355) | |
Recoveries | 161 | 121 | 124 | |
Ending Balance | 4,363 | 5,760 | 2,287 | |
Commercial [Member] | General [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 9,227 | 9,609 | 8,173 | |
Provision for Loan Losses | (302) | 1,219 | 1,209 | |
Charge-offs | (677) | (1,811) | (306) | |
Recoveries | 218 | 210 | 533 | |
Ending Balance | 8,466 | 9,227 | 9,609 | |
Consumer [Member] | 1-4 Family Residential [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 4,646 | 2,093 | 2,249 | |
Provision for Loan Losses | 666 | 2,478 | 219 | |
Charge-offs | (52) | (56) | (436) | |
Recoveries | 8 | 131 | 61 | |
Ending Balance | 5,268 | 4,646 | 2,093 | |
Consumer [Member] | Auto Loans [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 4,226 | 3,385 | 2,994 | |
Provision for Loan Losses | (90) | 1,814 | 1,276 | |
Charge-offs | (598) | (1,165) | (1,067) | |
Recoveries | 115 | 192 | 182 | |
Ending Balance | 3,653 | 4,226 | 3,385 | |
Consumer [Member] | Other Consumer [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 1,671 | 1,341 | 1,192 | |
Provision for Loan Losses | 339 | 1,300 | 969 | |
Charge-offs | (903) | (1,358) | (1,034) | |
Recoveries | 250 | 388 | 214 | |
Ending Balance | 1,357 | 1,671 | 1,341 | |
Construction [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning Balance | 1,061 | 433 | 423 | |
Provision for Loan Losses | 681 | 627 | 85 | |
Charge-offs | 0 | 0 | (75) | |
Recoveries | 4 | 1 | 0 | |
Ending Balance | $ 1,746 | $ 1,061 | $ 433 |
LOANS HELD FOR INVESTMENT, Inve
LOANS HELD FOR INVESTMENT, Investment in loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Recorded Investment [Abstract] | ||
Individually Evaluated | $ 7,771 | $ 13,021 |
Collectively Evaluated | 2,429,806 | 2,208,562 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 1,344 | 1,095 |
Collectively Evaluated | 40,754 | 44,458 |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 1,101 | 6,273 |
Collectively Evaluated | 754,343 | 657,071 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 584 | 580 |
Collectively Evaluated | 16,661 | 18,382 |
Commercial [Member] | Specialized [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 378,725 | 311,686 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 4,363 | 5,760 |
Commercial [Member] | General [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 5,078 | 4,626 |
Collectively Evaluated | 454,946 | 513,683 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 585 | 515 |
Collectively Evaluated | 7,881 | 8,712 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 1,592 | 2,122 |
Collectively Evaluated | 386,098 | 358,193 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 175 | 0 |
Collectively Evaluated | 5,093 | 4,646 |
Consumer [Member] | Auto Loans [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 240,719 | 205,840 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 3,653 | 4,226 |
Consumer [Member] | Other Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 68,113 | 67,595 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 1,357 | 1,671 |
Construction [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | 146,862 | 94,494 |
Allowance for Loan Losses [Abstract] | ||
Individually Evaluated | 0 | 0 |
Collectively Evaluated | $ 1,746 | $ 1,061 |
LOANS HELD FOR INVESTMENT, Impa
LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | $ 7,771 | $ 13,440 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 2,023 | 9,159 |
Recorded Investment With Allowance | 5,748 | 3,862 |
Total Recorded Investment | 7,771 | 13,021 |
Related Allowance | 1,344 | 1,095 |
Average Recorded Investment | 10,396 | 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 | 1,101 | 6,273 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 0 | 3,673 |
Recorded Investment With Allowance | 1,101 | 2,600 |
Total Recorded Investment | 1,101 | 6,273 |
Related Allowance | 584 | 580 |
Average Recorded Investment | 3,687 | 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 | 5,078 | 4,626 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 1,143 | 3,364 |
Recorded Investment With Allowance | 3,935 | 1,262 |
Total Recorded Investment | 5,078 | 4,626 |
Related Allowance | 585 | 515 |
Average Recorded Investment | 4,852 | 3,400 |
Consumer [Member] | 1-4 Family [Member] | ||
Impaired Loan Information [Abstract] | ||
Unpaid Contractual Principal Balance | 1,592 | 2,541 |
Recorded Investment [Abstract] | ||
Recorded Investment With No Allowance | 880 | 2,122 |
Recorded Investment With Allowance | 712 | 0 |
Total Recorded Investment | 1,592 | 2,122 |
Related Allowance | 175 | 0 |
Average Recorded Investment | 1,857 | 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 | 12 Months Ended | |
Dec. 31, 2021USD ($)Point | Dec. 31, 2020USD ($) | |
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 2,437,577 | $ 2,221,583 |
Nonaccrual | $ 9,518 | 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] | ||
Past Due | $ 8,993 | 6,560 |
90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 1,080 | 1,246 |
Commercial Real Estate [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 755,444 | 663,344 |
Nonaccrual | 1,101 | 6,311 |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 393 | 914 |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 45 | 34 |
Commercial [Member] | Specialized [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 378,725 | 311,686 |
Nonaccrual | 156 | 272 |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 265 | 241 |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 20 | 0 |
Commercial [Member] | General [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 460,024 | 518,309 |
Nonaccrual | 5,236 | 5,489 |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 4,032 | 1,891 |
Commercial [Member] | General [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 97 | 149 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 387,690 | 360,315 |
Nonaccrual | 2,815 | 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] | ||
Past Due | 2,496 | 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] | ||
Past Due | 903 | 906 |
Consumer [Member] | Auto Loans [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 240,719 | 205,840 |
Nonaccrual | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 332 | 738 |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 0 | 38 |
Consumer [Member] | Other Consumer [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 68,113 | 67,595 |
Nonaccrual | 44 | 51 |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 538 | 481 |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 15 | 119 |
Construction [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 146,862 | 94,494 |
Nonaccrual | 166 | 0 |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 937 | 206 |
Construction [Member] | 90 Days or More Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Su_2
LOANS HELD FOR INVESTMENT, Summary of Internal Classifications of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans by Internal Classifications [Abstract] | ||
Loans | $ 2,437,577 | $ 2,221,583 |
Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 2,371,284 | 2,135,565 |
Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 1,676 | 0 |
Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 64,617 | 86,018 |
Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 755,444 | 663,344 |
Commercial Real Estate [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 713,852 | 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 | 41,592 | 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 | 378,725 | 311,686 |
Commercial [Member] | Specialized [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 372,797 | 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 | 5,928 | 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 | 460,024 | 518,309 |
Commercial [Member] | General [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 450,790 | 510,543 |
Commercial [Member] | General [Member] | Special Mention [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 1,676 | 0 |
Commercial [Member] | General [Member] | Substandard [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 7,558 | 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 | 387,690 | 360,315 |
Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 379,458 | 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 | 8,232 | 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 | 240,719 | 205,840 |
Consumer [Member] | Auto Loans [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 239,869 | 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 | 850 | 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 | 68,113 | 67,595 |
Consumer [Member] | Other Consumer [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 67,822 | 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 | 291 | 379 |
Consumer [Member] | Other Consumer [Member] | Doubtful [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 0 | 0 |
Construction [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 146,862 | 94,494 |
Construction [Member] | Pass [Member] | ||
Loans by Internal Classifications [Abstract] | ||
Loans | 146,696 | 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 | 166 | 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 | 12 Months Ended | ||
Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
CARES Act [Abstract] | |||
TDRs | $ 0 | $ 0 | $ 0 |
Covid-19 [Member] | |||
CARES Act [Abstract] | |||
Number of loans modified under CARES Act | Loan | 0 | ||
Percentage of loans modified under CARES Act | 0.65% | 2.75% | |
Number of outstanding loans subject to deferral and modification agreements | Loan | 3 | 25 | |
Amount of outstanding loans subject to deferral and modification agreements | $ 15,900 | $ 61,000 | |
Covid-19 [Member] | Short-term Deferral Modification Program [Member] | |||
CARES Act [Abstract] | |||
Amount of outstanding principal balance of loans modified under CARES Act | $ 3,000 | ||
Percentage of loans modified under CARES Act | 0.14% | ||
Commercial [Member] | Covid-19 [Member] | Short-term Deferral Modification Program [Member] | Interest-Only Payment [Member] | |||
CARES Act [Abstract] | |||
Amount of outstanding principal balance of loans modified under CARES Act | $ 1,000 | ||
Period of loan modification | 6 months | ||
Commercial [Member] | Covid-19 [Member] | Short-term Deferral Modification Program [Member] | Payment Deferrals [Member] | |||
CARES Act [Abstract] | |||
Amount of outstanding principal balance of loans modified under CARES Act | $ 300 | ||
Period of loan modification | 90 days | ||
Consumer [Member] | Covid-19 [Member] | Short-term Deferral Modification Program [Member] | Payment Deferrals [Member] | |||
CARES Act [Abstract] | |||
Amount of outstanding principal balance of loans modified under CARES Act | $ 1,700 | ||
Consumer [Member] | Covid-19 [Member] | Short-term Deferral Modification Program [Member] | Payment Deferrals [Member] | Minimum [Member] | |||
CARES Act [Abstract] | |||
Period of loan modification | 1 month | ||
Consumer [Member] | Covid-19 [Member] | Short-term Deferral Modification Program [Member] | Payment Deferrals [Member] | Maximum [Member] | |||
CARES Act [Abstract] | |||
Period of loan modification | 4 months |
FORECLOSED ASSETS, Foreclosed A
FORECLOSED ASSETS, Foreclosed Assets Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreclosed Assets [Roll Forward] | |||
Beginning balance | $ 1,353 | $ 1,883 | $ 2,285 |
Additions | 927 | 1,867 | 3,469 |
Sales, net | (1,248) | (2,397) | (3,871) |
Current year valuation write-down | 0 | 0 | 0 |
Ending balance | $ 1,032 | $ 1,353 | $ 1,883 |
FORECLOSED ASSETS, Activity in
FORECLOSED ASSETS, Activity in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Activity in Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | $ 0 |
Current year valuation write-down | 0 | 0 | 0 |
Reductions from sales | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 0 |
FORECLOSED ASSETS, Net Expenses
FORECLOSED ASSETS, Net Expenses Related to Foreclosed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net expenses related to foreclosed assets [Abstract] | |||
Net loss (gain) on sales | $ (44) | $ (40) | $ 37 |
Current year valuation write-down | 0 | 0 | 0 |
Operating expenses, net of rental income | 57 | 75 | 71 |
Foreclosed assets expense, net | $ 13 | $ 35 | $ 108 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |||
Premises and equipment, gross | $ 124,991 | $ 123,137 | |
Less accumulated depreciation | (67,292) | (62,806) | |
Premises and equipment, net | 57,699 | 60,331 | |
Depreciation expense | 4,800 | 4,800 | $ 4,900 |
Land [Member] | |||
Premises and Equipment [Abstract] | |||
Premises and equipment, gross | 10,065 | 10,825 | |
Buildings and Improvements [Member] | |||
Premises and Equipment [Abstract] | |||
Premises and equipment, gross | 65,986 | 65,840 | |
Furniture and Equipment [Member] | |||
Premises and Equipment [Abstract] | |||
Premises and equipment, gross | 48,281 | 46,443 | |
Construction in Process [Member] | |||
Premises and Equipment [Abstract] | |||
Premises and equipment, gross | $ 659 | $ 29 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Other Intangible Assets [Abstract] | |||
Beginning goodwill | $ 19,508 | $ 18,757 | $ 0 |
Arising from business combinations | 0 | 0 | 18,757 |
Measurement period acquisition adjustment | 0 | 751 | 0 |
Ending goodwill | 19,508 | 19,508 | 18,757 |
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, net | 5,895 | 7,562 | 8,632 |
Amortization expense of other intangibles | 1,700 | 1,700 | 356 |
Estimated Amount of Amortization Expense to Be Recognized over Next Five Years [Abstract] | |||
2022 | 1,545 | ||
2023 | 1,425 | ||
2024 | 1,149 | ||
2025 | 642 | ||
2026 | 466 | ||
CDI [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 6,679 | 6,679 | 6,679 |
Less: Accumulated amortization | (2,469) | (1,396) | (202) |
Other intangible assets, net | 4,210 | 5,283 | 6,477 |
Estimated Amount of Amortization Expense to Be Recognized over Next Five Years [Abstract] | |||
2022 | 951 | ||
2023 | 830 | ||
2024 | 708 | ||
2025 | 587 | ||
2026 | 466 | ||
Other Intangibles [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 2,972 | 2,309 | 2,309 |
Arising from business combinations | 0 | 663 | 0 |
Less: Accumulated amortization | (1,287) | (693) | (154) |
Other intangible assets, net | 1,685 | $ 2,279 | $ 2,155 |
Estimated Amount of Amortization Expense to Be Recognized over Next Five Years [Abstract] | |||
2022 | 594 | ||
2023 | 595 | ||
2024 | 441 | ||
2025 | 55 | ||
2026 | $ 0 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Servicing Rights Asset [Roll Forward] | |||
Beginning balance | $ 9,049 | $ 2,054 | $ 1,270 |
Additions | 9,196 | 9,829 | 1,332 |
Valuation adjustment | 1,455 | (2,834) | (548) |
Ending balance | 19,700 | 9,049 | 2,054 |
Mortgage Servicing Rights Other Information [Abstract] | |||
Mortgage loans serviced for others | $ 1,953,095 | $ 1,203,687 | $ 247,326 |
Mortgage servicing rights asset as a percentage of serviced mortgage loans | 1.00% | 1.00% | 1.00% |
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract] | |||
Weighted average constant prepayment rate | 12.35% | 18.16% | |
Weighted average discount rate | 9.14% | 9.72% | |
Weighted average life in years | 6 years 10 days | 4 years 5 months 23 days |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
DEPOSITS [Abstract] | ||
Time deposit meeting or exceeding FDIC Insurance limit of $250,000 | $ 163,400 | $ 147,000 |
Maturities of Time Deposits [Abstract] | ||
2022 | 258,584 | |
2023 | 66,613 | |
2024 | 8,154 | |
2025 | 3,272 | |
2026 | 2,910 | |
Thereafter | 205 | |
Total | $ 339,738 |
BORROWING ARRANGEMENTS, Short-t
BORROWING ARRANGEMENTS, Short-term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term borrowings [Abstract] | ||
Total | $ 0 | $ 26,550 |
Federal Funds Purchased [Member] | ||
Short-term borrowings [Abstract] | ||
Total | $ 0 | 26,550 |
Short-term borrowings, maturity period | 1 day | |
FHLB Advances - Short-Term [Member] | ||
Short-term borrowings [Abstract] | ||
Total | $ 0 | $ 0 |
BORROWING ARRANGEMENTS, Lines o
BORROWING ARRANGEMENTS, Lines of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Abstract] | ||
Carrying amount of FHLB stock | $ 2.8 | |
FHLB stock, available borrowing capacity | 903.9 | $ 512.5 |
Bank Subsidiary [Member] | Federal Reserve Bank of Dallas (FRB) [Member] | ||
Line of Credit Facility [Abstract] | ||
Line of credit, current borrowing capacity | 593.6 | 700.8 |
Bank Subsidiary [Member] | Multiple Banks [Member] | ||
Line of Credit Facility [Abstract] | ||
Line of credit, current borrowing capacity | $ 160 | $ 165 |
BORROWING ARRANGEMENTS, Notes P
BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($)Advance | Jul. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Advance | Dec. 31, 2019USD ($) | Apr. 30, 2020USD ($) | |
Notes Payable and Other Borrowings [Abstract] | |||||||
Repayment of advances | $ 75,000 | $ 95,000 | $ 7,530 | ||||
Federal Home Loan Bank Advance [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Original amount of advances | 95,000 | ||||||
Balance | $ 0 | $ 75,000 | |||||
Notes Payable and Other Borrowings [Abstract] | |||||||
Number of advances | Advance | 3 | ||||||
Number of advances repaid | Advance | 2 | ||||||
Repayment of advances | $ 25,000 | $ 50,000 | |||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance One [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Issue date | 2013 | ||||||
Original amount of advances | $ 20,000 | ||||||
Balance | $ 0 | $ 0 | |||||
Maturity date | 2020 | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance One [Member] | Fixed Rate [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Interest rate, type | Fixed | ||||||
Interest rate | 1.50% | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Two [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Issue date | 2015 | ||||||
Original amount of advances | $ 25,000 | ||||||
Balance | $ 0 | $ 25,000 | |||||
Maturity date | 2025 | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Two [Member] | Variable Rate [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Interest rate, type | Floating | ||||||
Interest rate | 0.19% | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Three [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Issue date | 2015 | ||||||
Original amount of advances | $ 25,000 | ||||||
Balance | $ 0 | $ 25,000 | |||||
Maturity date | 2025 | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Three [Member] | Variable Rate [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Interest rate, type | Floating | ||||||
Interest rate | 0.19% | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Four [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Issue date | 2015 | ||||||
Original amount of advances | $ 25,000 | ||||||
Balance | $ 0 | $ 25,000 | |||||
Maturity date | 2025 | ||||||
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank Advance Four [Member] | Variable Rate [Member] | |||||||
Detail of Advances from FHLB [Abstract] | |||||||
Interest rate, type | Floating | ||||||
Interest rate | 0.23% | ||||||
Short-Term Federal Home Loan Bank Advances [Member] | |||||||
Notes Payable and Other Borrowings [Abstract] | |||||||
Amount borrowed from FHLB for liquidity needs | $ 75,000 | ||||||
Debt instrument, term | 3 months | ||||||
Debt instrument, maturity date | Jul. 31, 2020 | ||||||
Repayment of advances | $ 75,000 |
BORROWING ARRANGEMENTS, Junior
BORROWING ARRANGEMENTS, Junior Subordinated Deferrable Interest Debentures and Trust Preferred Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Detail of debentures and TPS [Abstract] | |||
Amount of debentures | $ 46,393 | $ 46,393 | |
Trust Preferred Securities [Member] | |||
Junior Subordinated Deferrable Interest Debentures and Trust Preferred Securities [Abstract] | |||
Common capital securities issued by the trusts | 1,400 | ||
Detail of debentures and TPS [Abstract] | |||
Amount of TPS | 45,000 | ||
Debentures [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of debentures | $ 46,393 | ||
Debentures and Trust Preferred Securities [Member] | Maximum [Member] | |||
Junior Subordinated Deferrable Interest Debentures and Trust Preferred Securities [Abstract] | |||
Number of consecutive years during which interest can be deferred | 5 years | ||
Detail of debentures and TPS [Abstract] | |||
Period after issue date when debt securities may be redeemed | 5 years | ||
South Plains Financial Capital Trust III [Member] | Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of TPS | $ 10,000 | ||
South Plains Financial Capital Trust III [Member] | Debentures [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of debentures | $ 10,310 | ||
South Plains Financial Capital Trust III [Member] | Debentures and Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Issue date | Dec. 31, 2004 | ||
Stated maturity date | [1] | Dec. 31, 2034 | |
Interest rate | [2],[3] | 2.77% | |
South Plains Financial Capital Trust III [Member] | Debentures and Trust Preferred Securities [Member] | LIBOR [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Term of variable rate | [2],[3] | 3 months | |
Basis spread on variable rate | [2],[3] | 2.65% | |
South Plains Financial Capital Trust IV [Member] | Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of TPS | $ 20,000 | ||
South Plains Financial Capital Trust IV [Member] | Debentures [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of debentures | $ 20,619 | ||
South Plains Financial Capital Trust IV [Member] | Debentures and Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Issue date | Dec. 31, 2005 | ||
Stated maturity date | [1] | Dec. 31, 2035 | |
Interest rate | [2],[3] | 1.59% | |
South Plains Financial Capital Trust IV [Member] | Debentures and Trust Preferred Securities [Member] | LIBOR [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Term of variable rate | [2],[3] | 3 months | |
Basis spread on variable rate | [2],[3] | 1.39% | |
South Plains Financial Capital Trust V [Member] | Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of TPS | $ 15,000 | ||
South Plains Financial Capital Trust V [Member] | Debentures [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Amount of debentures | $ 15,464 | ||
South Plains Financial Capital Trust V [Member] | Debentures and Trust Preferred Securities [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Issue date | Dec. 31, 2007 | ||
Stated maturity date | [1] | Dec. 31, 2037 | |
Interest rate | [2],[3] | 1.70% | |
South Plains Financial Capital Trust V [Member] | Debentures and Trust Preferred Securities [Member] | LIBOR [Member] | |||
Detail of debentures and TPS [Abstract] | |||
Term of variable rate | [2],[3] | 3 months | |
Basis spread on variable rate | [2],[3] | 1.50% | |
[1] | May be redeemed five years from the issue date, the Company has no current plans to redeem; | ||
[2] | Interest payable quarterly with principal due at maturity; | ||
[3] | Rate as of last reset date. |
BORROWING ARRANGEMENTS, Subordi
BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 29, 2020 | Dec. 31, 2018 | |
Subordinated Debt Securities [Abstract] | ||||
Subordinated debt securities | $ 75,775,000 | $ 75,589,000 | ||
Subordinated Debt [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | 76,500,000 | |||
Debt issuance cost | 697,000 | |||
Subordinated debt securities | $ 75,800,000 | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 26,500,000 | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 12,400,000 | |||
Debt instrument, maturity date | Dec. 31, 2028 | |||
Debt instrument, weighted average 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 [Member] | 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 [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 14,100,000 | |||
Debt instrument, maturity date | Dec. 31, 2030 | |||
Debt instrument, weighted average 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 [Member] | 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 [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Debt issuance cost | $ 926,000 | |||
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 [Member] | 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 [Member] | 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 |
EMPLOYEE BENEFITS, Employee Sto
EMPLOYEE BENEFITS, Employee Stock Ownership Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
401K Plan [Member] | ||||
EMPLOYEE BENEFITS [Abstract] | ||||
Percentage of employer matching contribution for first 5% of participant's contribution | 100.00% | |||
Percentage of participant's compensation contributed for employer's 100% matching contribution | 5.00% | |||
Expense for contributions to 401 (k) plan | $ 1.8 | $ 1.7 | $ 0 | |
Employee Stock Ownership Plan (ESOP) Plan [Member] | ||||
EMPLOYEE BENEFITS [Abstract] | ||||
Required service period for an employee to be covered by ESOP plan | 1 month | |||
Contributions to ESOP by employer | $ 0 | $ 0 | $ 1.8 | |
Shares held by ESOP (in shares) | 2,795,762 | 2,876,419 | ||
Shares repurchased from ESOP participants (in shares) | 0 | |||
Fair value of ESOP shares subject to repurchase obligation | $ 58.2 |
EMPLOYEE BENEFITS, Employee Hea
EMPLOYEE BENEFITS, Employee Health Benefits (Details) - Employee Health Benefits [Member] $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)h | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Employee Health Benefits [Abstract] | |||
Waiting period to be eligible for non-officers | 60 days | ||
Welfare benefit expense | $ 4,500 | $ 4,400 | $ 4,800 |
Accrued benefit obligations | 825 | $ 823 | |
Annual limit for stop loss amount per participant | $ 100 | ||
Minimum [Member] | |||
Employee Health Benefits [Abstract] | |||
Number of working hours required per week to be eligible to cover under self-insured welfare benefit plan | h | 30 |
EMPLOYEE BENEFITS, Non-Qualifie
EMPLOYEE BENEFITS, Non-Qualified Plans (Details) - Executive Salary Continuation Plan [Member] - Nonqualified Plans [Member] - Unfunded Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-Qualified Plans [Abstract] | |||
Liabilities for cost of benefits accrued | $ 12.5 | $ 12.1 | |
Charges to income for plans | $ 1 | $ 1.1 | $ 1.1 |
STOCK-BASED COMPENSATION, Equit
STOCK-BASED COMPENSATION, Equity Incentive Plan (Details) - 2019 Equity Incentive Plan [Member] - shares | Mar. 06, 2019 | Dec. 31, 2021 |
Equity Incentive Plan [Abstract] | ||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 3,383,373 | |
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 | 12 Months Ended |
Dec. 31, 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 | (158,166) |
Forfeited (in shares) | shares | (9,152) |
Expired (in shares) | shares | 0 |
Outstanding at end of year (in shares) | shares | 1,602,028 |
Exercisable at end of period (in shares) | shares | 1,038,018 |
Vested at end of period (in shares) | shares | 1,038,018 |
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 | 14.38 |
Forfeited (in dollars per share) | $ / shares | 18.37 |
Expired (in dollars per share) | $ / shares | 0 |
Outstanding at end of year (in dollars per share) | $ / shares | 15.42 |
Exercisable at end of period (in dollars per share) | $ / shares | 13.34 |
Vested at end of period (in dollars per share) | $ / shares | $ 13.34 |
Weighted Average Remaining Contractual Life in Years [Abstract] | |
Outstanding | 6 years 7 days |
Exercisable at end of period | 5 years 1 month 20 days |
Vested at end of period | 5 years 1 month 20 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding at beginning of year | $ | $ 20,274 |
Granted | $ | 1,790 |
Exercised | $ | (2,124) |
Forfeited | $ | (86) |
Expired | $ | 0 |
Outstanding at end of year | $ | 19,854 |
Exercisable at end of period | $ | 15,024 |
Vested at end of period | $ | $ 15,024 |
STOCK-BASED COMPENSATION, Fair
STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - USD ($) $ / shares in Units, $ in Millions | May 06, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity Incentive Plan [Abstract] | ||||
Stock option modified from liabilities to equity (in shares) | 750,000 | |||
Fair value of stock options after modification | $ 11.2 | |||
Amount reclassified from liabilities to equity in conversion | 11.5 | |||
Minimum [Member] | ||||
Equity Incentive Plan [Abstract] | ||||
Expiration period of options with accelerated vesting due to modification from liabilities to equity | 2 years | |||
Maximum [Member] | ||||
Equity Incentive Plan [Abstract] | ||||
Expiration period of options with accelerated vesting due to modification from liabilities to equity | 4 years | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Equity Incentive Plan [Abstract] | ||||
Fair value of share-based equity awards at conversion date | $ 11.5 | |||
Stock Option [Member] | ||||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||||
Expected volatility | 27.46% | |||
Expected dividend yield | 1.00% | 0.70% | 0.70% | |
Expected term | 6 years 2 months 12 days | |||
Risk-free interest rate | 1.44% | |||
Weighted average grant date fair value (in dollars per share) | $ 7.07 | $ 5.68 | $ 7.98 | |
Stock Option [Member] | Minimum [Member] | ||||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||||
Expected volatility | 41.20% | 24.88% | ||
Expected term | 6 years 1 month 6 days | 6 months | ||
Risk-free interest rate | 0.52% | 1.46% | ||
Stock Option [Member] | Maximum [Member] | ||||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||||
Expected volatility | 41.32% | 31.54% | ||
Expected term | 6 years 2 months 12 days | 7 years | ||
Risk-free interest rate | 0.83% | 2.63% | ||
2019 Equity Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member] | ||||
Equity Incentive Plan [Abstract] | ||||
Number of outstanding shares converted (in shares) | 1,401,000 | |||
2019 Equity Incentive Plan [Member] | Stock Option [Member] | ||||
Equity Incentive Plan [Abstract] | ||||
Intrinsic value of options exercised | $ 2.1 | $ 1.1 | $ 1.4 |
STOCK-BASED COMPENSATION, Restr
STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-Average Exercise Price [Abstract] | |||
Stock-based compensation expenses | $ 1,639 | $ 1,272 | $ 853 |
Restricted Stock Units [Member] | |||
Number of Shares [Roll Forward] | |||
Outstanding at beginning of year (in shares) | 62,476 | ||
Granted (in shares) | 6,370 | ||
Exercised (in shares) | (24,805) | ||
Forfeited (in shares) | (1,274) | ||
Outstanding at end of year (in shares) | 42,767 | 62,476 | |
Weighted-Average Exercise Price [Abstract] | |||
Outstanding at beginning of year (in dollars per share) | $ 19.47 | ||
Granted (in dollars per share) | 19.62 | ||
Exercised (in dollars per share) | 19.70 | ||
Forfeited (in dollars per share) | 19.62 | ||
Outstanding at end of year (in dollars per share) | $ 19.35 | $ 19.47 | |
Stock-based compensation expenses | $ 1,600 | $ 1,300 | 853 |
Unrecognized compensation cost | $ 2,700 | ||
Weighted average remaining period, recognition of compensation cost | 1 year 5 months 19 days | ||
Fair value of restricted stock units vested | $ 489 | $ 489 | $ 0 |
Restricted Stock Units [Member] | Minimum [Member] | |||
Weighted-Average Exercise Price [Abstract] | |||
Award vesting period | 1 year | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Weighted-Average Exercise Price [Abstract] | |||
Award vesting period | 4 years |
INCOME TAXES, Components of Inc
INCOME TAXES, Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current expense [Abstract] | |||
Federal | $ 12,834 | $ 12,590 | $ 6,923 |
State | 220 | 248 | 224 |
Deferred expense [Abstract] | |||
Federal | 1,453 | (1,588) | 334 |
Total | $ 14,507 | $ 11,250 | $ 7,481 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |||
Federal statutory rate | 21.00% | ||
Reconciliation of Income Tax Expenses [Abstract] | |||
Federal statutory rate times financial statement income | $ 15,355 | $ 11,887 | $ 7,707 |
Effect of [Abstract] | |||
Tax-exempt income | (978) | (863) | (348) |
State taxes, net of federal benefit | 174 | 196 | 177 |
Earnings from bank owned life insurance | (262) | (280) | (272) |
Non-deductible expenses | 281 | 248 | 190 |
Other, net | (63) | 62 | 27 |
Total | $ 14,507 | $ 11,250 | $ 7,481 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets [Abstract] | ||
Allowance for loan loss | $ 8,840 | $ 9,566 |
Deferred compensation | 5,772 | 5,215 |
Other real estate owned | 0 | 251 |
Nonaccrual loans | 21 | 59 |
Other | 202 | 221 |
Total deferred tax assets | 14,835 | 15,312 |
Deferred tax liabilities [Abstract] | ||
Depreciation | (2,496) | (2,432) |
Intangibles | (586) | (847) |
Prepaid expenses | (547) | (439) |
Mortgage servicing rights | (4,137) | (1,900) |
Unrealized gain on available-for-sale securities | (2,438) | (5,688) |
Other | (1,593) | (1,545) |
Total deferred tax liabilities | (11,797) | (12,851) |
Net deferred tax asset | $ 3,038 | $ 2,461 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED-PARTY TRANSACTIONS [Abstract] | ||
Direct and indirect loans to related parties, aggregated amount | $ 12.2 | $ 8.9 |
Charge-offs related to related-party loans | $ 0 | $ 0 |
OFF-BALANCE-SHEET ACTIVITIES,_3
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
FHLB Letters of Credit [Abstract] | |||
Letters of credit outstanding balance | $ 0 | $ 199,000 | |
Lease Commitments [Abstract] | |||
Rent expense for operating leases | 2,500 | 2,400 | $ 2,000 |
Rental income | 890 | 856 | $ 891 |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases [Abstract] | |||
2022 | 1,938 | ||
2023 | 1,739 | ||
2024 | 1,325 | ||
2025 | 978 | ||
2026 | 1,030 | ||
Thereafter | 5,982 | ||
Total | 12,992 | ||
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 | 542,338 | 417,798 | |
Standby Letters-of-credit [Member] | |||
Financial instruments with off-balance-sheet risk [Abstract] | |||
Financial instruments whose contract amounts represent credit risk outstanding | $ 12,418 | $ 10,481 |
CAPITAL AND REGULATORY MATTER_2
CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Consolidated [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 524,836 | $ 473,425 |
Actual, Ratio | 0.1840 | 0.1908 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 299,521 | $ 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 | $ 413,322 | $ 366,639 |
Actual, Ratio | 0.1449 | 0.1478 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 242,469 | $ 210,906 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0850 | 0.0850 |
Common Tier 1 (CET1) [Abstract] | ||
Actual, Amount | $ 368,322 | $ 321,639 |
Actual, Ratio | 0.1291 | 0.1296 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 199,681 | $ 173,688 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.0700 | 0.0700 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 413,322 | $ 366,639 |
Actual, Ratio | 0.1077 | 0.1024 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 154,592 | $ 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 | $ 425,748 | $ 404,138 |
Actual, Ratio | 0.1493 | 0.1629 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 299,465 | $ 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 | $ 285,205 | $ 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 | $ 390,015 | $ 372,947 |
Actual, Ratio | 0.1367 | 0.1503 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 242,424 | $ 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 | $ 228,164 | $ 198,462 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Tier 1 (CET1) [Abstract] | ||
Actual, Amount | $ 390,015 | $ 372,947 |
Actual, Ratio | 0.1367 | 0.1503 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 199,644 | $ 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 | $ 185,383 | $ 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 | $ 390,015 | $ 372,947 |
Actual, Ratio | 0.1016 | 0.1042 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 154,503 | $ 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 | $ 191,859 | $ 178,999 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
DERIVATIVES, Fair Value Hedges
DERIVATIVES, Fair Value Hedges in Consolidated Balance Sheets (Details) - Fair Value Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Income [Member] | |||
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract] | |||
Change in fair value on fixed rate loans - hedged item | $ (512) | $ 580 | $ 511 |
Interest Rate Swaps [Member] | Other Liabilities [Member] | |||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||
Derivative liability, notional amount | 9,775 | 10,178 | |
Derivative liability, fair value | 429 | 927 | |
Interest Rate Swaps [Member] | Interest Income [Member] | |||
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract] | |||
Change in fair value on interest rate swaps hedging fixed rate loans | 498 | (576) | $ (520) |
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 | $ 5,686 | $ 1,618 |
DERIVATIVES, Mortgage Banking D
DERIVATIVES, Mortgage Banking Derivatives (Details) - Mortgage Banking [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Member] | |||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||
Derivative asset, notional amount | $ 104,437 | $ 210,716 | |
Derivative asset, fair value | 1,642 | 5,115 | |
Other Liabilities [Member] | |||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||
Derivative liability, notional amount | 93,120 | 203,669 | |
Derivative liability, fair value | 106 | 1,787 | |
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 | |
Forward Contracts [Member] | Other Liabilities [Member] | |||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||
Derivative liability, notional amount | 93,120 | 203,669 | |
Derivative liability, fair value | 106 | 1,787 | |
Forward Contracts [Member] | Net Gain (Loss) on Sales of Loans [Member] | |||
Derivative instruments impact on results of operations [Abstract] | |||
Gain (loss) on sale of derivative instruments | (3,473) | (754) | $ 672 |
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 | 104,437 | 210,716 | |
Derivative asset, fair value | 1,642 | 5,115 | |
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 | |
Interest Rate Lock Commitments [Member] | Net Gain (Loss) on Sales of Loans [Member] | |||
Derivative instruments impact on results of operations [Abstract] | |||
Gain (loss) on sale of derivative instruments | $ 1,681 | $ 3,409 | $ (249) |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS [Abstract] | ||||
Cash and cash equivalents | $ 486,821 | $ 300,307 | ||
Other assets | 26,826 | 23,384 | ||
Total assets | 3,901,855 | 3,599,160 | $ 3,237,167 | |
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract] | ||||
Accrued expenses and other liabilities | 31,038 | 31,229 | ||
Stockholders' equity | 407,427 | 370,048 | $ 306,182 | $ 154,580 |
Total liabilities and stockholders' equity | 3,901,855 | 3,599,160 | ||
South Plains Financial, Inc. [Member] | ||||
ASSETS [Abstract] | ||||
Cash and cash equivalents | 96,243 | 67,890 | ||
Other assets | 6,013 | 4,248 | ||
Total assets | 531,426 | 493,544 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract] | ||||
Debt | 122,168 | 121,982 | ||
Accrued expenses and other liabilities | 1,831 | 1,514 | ||
Stockholders' equity | 407,427 | 370,048 | ||
Total liabilities and stockholders' equity | 531,426 | 493,544 | ||
South Plains Financial, Inc. [Member] | Bank Subsidiary [Member] | ||||
ASSETS [Abstract] | ||||
Investment in subsidiary | 429,119 | 421,355 | ||
South Plains Financial, Inc. [Member] | Other Subsidiary [Member] | ||||
ASSETS [Abstract] | ||||
Investment in subsidiary | $ 51 | $ 51 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Interest expense | $ (13,272) | $ (15,946) | $ (28,367) |
Other expense | (17,883) | (17,818) | (14,592) |
Income before income taxes | 73,121 | 56,603 | 36,701 |
Income tax (benefit) | 14,507 | 11,250 | 7,481 |
Net income | 58,614 | 45,353 | 29,220 |
South Plains Financial, Inc. [Member] | |||
Income Statement [Abstract] | |||
Dividends | 48,250 | 20,500 | 10,000 |
Other income | 26 | 115 | 64 |
ESOP Contribution | 0 | 0 | (1,800) |
Interest expense | (4,936) | (3,390) | (3,562) |
Other expense | (1,466) | (1,572) | (2,221) |
Income before income taxes | 41,874 | 15,653 | 2,481 |
Income tax (benefit) | (1,339) | (1,018) | (1,498) |
Equity in undistributed subsidiary income | 15,401 | 28,682 | 25,241 |
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities [Abstract] | |||
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
Adjustments [Abstract] | |||
Stock based compensation | 1,639 | 1,272 | 853 |
Net cash from operating activities | 96,271 | 5,627 | 30,484 |
Cash flows from investing activities [Abstract] | |||
Cash paid in business combination | 0 | (687) | 0 |
Net cash from investing activities | (159,841) | (156,228) | (213,493) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 0 | 0 | 51,392 |
Payments to tax authorities for stock-based compensation | (625) | (319) | 0 |
Payments to repurchase common stock | (9,227) | (293) | 0 |
Cash dividends on common stock | (5,385) | (2,528) | (1,079) |
Net cash from financing activities | 250,084 | 292,809 | 95,119 |
Net change in cash and cash equivalents | 186,514 | 142,208 | (87,890) |
Beginning cash and cash equivalents | 300,307 | 158,099 | 245,989 |
Ending cash and cash equivalents | 486,821 | 300,307 | 158,099 |
South Plains Financial, Inc. [Member] | |||
Cash flows from operating activities [Abstract] | |||
Net income | 58,614 | 45,353 | 29,220 |
Adjustments [Abstract] | |||
Equity in undistributed subsidiary income | (15,401) | (28,682) | (25,241) |
Amortization of debt issuance costs | 186 | 47 | 0 |
Stock based compensation | 1,639 | 1,272 | 853 |
Change in other assets | (1,765) | (342) | (1,601) |
Change in other liabilities | 317 | 131 | 541 |
Net cash from operating activities | 43,590 | 17,779 | 3,772 |
Cash flows from investing activities [Abstract] | |||
Cash paid in business combination | 0 | 0 | (76,100) |
Net cash from investing activities | 0 | 0 | (76,100) |
Cash flows from financing activities [Abstract] | |||
Proceeds from long-term borrowings | 0 | 49,070 | 0 |
Repayments of long-term borrowings | 0 | 0 | (7,530) |
Issuance of common stock | 0 | 0 | 51,392 |
Payments to tax authorities for stock-based compensation | (625) | (319) | (351) |
Payments to repurchase common stock | (9,227) | (293) | 0 |
Share based liability conversion | 0 | 0 | 11,450 |
Cash dividends on common stock | (5,385) | (2,528) | (1,079) |
Net cash from financing activities | (15,237) | 45,930 | 53,882 |
Net change in cash and cash equivalents | 28,353 | 63,709 | (18,446) |
Beginning cash and cash equivalents | 67,890 | 4,181 | 22,627 |
Ending cash and cash equivalents | $ 96,243 | $ 67,890 | $ 4,181 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EARNINGS PER SHARE [Abstract] | |||
Net income | $ 58,614 | $ 45,353 | $ 29,220 |
Weighted average common shares outstanding - basic (in shares) | 17,953,624 | 18,054,373 | 16,818,697 |
Weighted average common shares outstanding - diluted (in shares) | 18,492,218 | 18,339,033 | 17,040,550 |
Basic earnings per share (in dollars per share) | $ 3.26 | $ 2.51 | $ 1.74 |
Diluted earnings per share (in dollars per share) | $ 3.17 | $ 2.47 | $ 1.71 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial results by reportable segments [Abstract] | ||||
Net interest income (expense) | $ 121,764 | $ 122,285 | $ 104,575 | |
Provision for loan loss | $ (2,000) | 1,918 | (25,570) | (2,799) |
Noninterest income | 97,469 | 101,603 | 56,633 | |
Noninterest expense | (148,030) | (141,715) | (121,708) | |
Income before income taxes | 73,121 | 56,603 | 36,701 | |
Income tax (expense) benefit | (14,507) | (11,250) | (7,481) | |
Net income | 58,614 | 45,353 | 29,220 | |
Total assets | 3,901,855 | 3,599,160 | 3,237,167 | |
Banking [Member] | Operating Segments [Member] | ||||
Financial results by reportable segments [Abstract] | ||||
Net interest income (expense) | 121,764 | 122,285 | 104,575 | |
Provision for loan loss | 1,918 | (25,570) | (2,799) | |
Noninterest income | 89,334 | 94,010 | 49,834 | |
Noninterest expense | (142,111) | (135,985) | (117,160) | |
Income before income taxes | 70,905 | 54,740 | 34,450 | |
Income tax (expense) benefit | (14,091) | (10,804) | (7,097) | |
Net income | 56,814 | 43,936 | 27,353 | |
Total assets | 3,890,751 | 3,584,828 | 3,224,396 | |
Insurance [Member] | Operating Segments [Member] | ||||
Financial results by reportable segments [Abstract] | ||||
Net interest income (expense) | 0 | 0 | 0 | |
Provision for loan loss | 0 | 0 | 0 | |
Noninterest income | 8,135 | 7,593 | 6,799 | |
Noninterest expense | (5,919) | (5,730) | (4,548) | |
Income before income taxes | 2,216 | 1,863 | 2,251 | |
Income tax (expense) benefit | (416) | (446) | (384) | |
Net income | 1,800 | 1,417 | 1,867 | |
Total assets | $ 11,104 | $ 14,332 | $ 12,771 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 370,048 | $ 306,182 | $ 154,580 |
Other comprehensive income (loss) before reclassification | (7,637) | 22,212 | |
Amounts reclassified from other comprehensive | 0 | (1,831) | |
Other comprehensive income (loss) | (7,637) | 20,381 | 3,201 |
Balance | 407,427 | 370,048 | 306,182 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 21,339 | 958 | (2,243) |
Other comprehensive income (loss) | (7,637) | 20,381 | 3,201 |
Balance | 13,702 | 21,339 | 958 |
Gains and (Losses) on Cash Flow Hedges [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (60) | 0 | |
Other comprehensive income (loss) before reclassification | 4,592 | (60) | |
Amounts reclassified from other comprehensive | 0 | 0 | |
Other comprehensive income (loss) | 4,592 | (60) | |
Balance | 4,532 | (60) | 0 |
Unrealized Gains and (Losses) on Securities Available for Sale [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 21,399 | 958 | |
Other comprehensive income (loss) before reclassification | (12,229) | 22,272 | |
Amounts reclassified from other comprehensive | 0 | (1,831) | |
Other comprehensive income (loss) | (12,229) | 20,441 | |
Balance | $ 9,170 | $ 21,399 | $ 958 |
FAIR VALUE DISCLOSURES, Assets
FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available for sale [Abstract] | ||||
Securities available for sale | $ 724,504 | $ 803,087 | ||
Mortgage servicing rights | 19,700 | 9,049 | $ 2,054 | $ 1,270 |
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 | 275,672 | 272,607 | ||
Mortgage-Backed Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 303,089 | 373,362 | ||
Collateralized Mortgage Obligations [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 106,320 | 106,715 | ||
Other Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 12,487 | 12,078 | ||
Recurring [Member] | ||||
Securities available for sale [Abstract] | ||||
Asset-backed and other amortizing securities | 26,936 | 33,572 | ||
Loans held for sale (mandatory) | 47,593 | 80,174 | ||
Mortgage servicing rights | 19,700 | 9,049 | ||
Asset derivatives | 7,328 | 6,734 | ||
Liability derivatives | (535) | (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 | 275,672 | 272,607 | ||
Recurring [Member] | Mortgage-Backed Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 303,089 | 373,362 | ||
Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 106,320 | 106,715 | ||
Recurring [Member] | Other Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 12,487 | 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 | 26,936 | 33,572 | ||
Loans held for sale (mandatory) | 47,593 | 80,174 | ||
Mortgage servicing rights | 0 | 0 | ||
Asset derivatives | 7,328 | 6,734 | ||
Liability derivatives | (535) | (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 | 275,672 | 272,607 | ||
Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 303,089 | 373,362 | ||
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 106,320 | 106,715 | ||
Recurring [Member] | Level 2 [Member] | Other Securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Securities available for sale | 12,487 | 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 | 19,700 | 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 | ||
Non-recurring [Member] | ||||
Assets Measured at Fair Value on a Non-Recurring Basis [Abstract] | ||||
Impaired loans | 6,427 | 11,926 | ||
Other real estate owned | 0 | 1,353 | ||
Non-recurring [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 | ||
Non-recurring [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 | ||
Non-recurring [Member] | Level 3 [Member] | ||||
Assets Measured at Fair Value on a Non-Recurring Basis [Abstract] | ||||
Impaired loans | 6,427 | 11,926 | ||
Other real estate owned | $ 0 | $ 1,353 |
FAIR VALUE DISCLOSURES, Quantit
FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Mortgage servicing rights | $ 19,700 | $ 9,049 | $ 2,054 | $ 1,270 |
Non-recurring [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Impaired loans | 6,427 | 11,926 | ||
Other real estate owned | 0 | 1,353 | ||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Impaired loans | 6,427 | 11,926 | ||
Other real estate owned | $ 0 | $ 1,353 | ||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | Collateral Discounts and Selling Costs [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Other real estate owned, discounts | 0 | |||
Non-recurring [Member] | 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 | 0.20 | 0 | ||
Other real estate owned, discounts | 0.15 | |||
Non-recurring [Member] | 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 | |||
Recurring [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Mortgage servicing rights | $ 19,700 | $ 9,049 | ||
Recurring [Member] | Discounted Cash Flows [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Mortgage servicing rights | $ 19,700 | $ 9,049 | ||
Recurring [Member] | Discounted Cash Flows [Member] | Conditional Prepayment Rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Mortgage servicing rights, discounts | 0.1235 | 0.1816 | ||
Recurring [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Mortgage servicing rights, discounts | 0.0914 | 0.0972 |
FAIR VALUE DISCLOSURES, Estimat
FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 486,821 | $ 300,307 |
Loans, net | 2,395,479 | 2,176,030 |
Accrued interest receivable | 13,900 | 15,233 |
Bank-owned life insurance | 71,978 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 3,341,222 | 2,974,351 |
Accrued interest payable | 1,914 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Subordinated debt securities | 75,775 | 75,589 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 486,821 | 300,307 |
Loans, net | 2,397,079 | 2,179,573 |
Accrued interest receivable | 13,900 | 15,233 |
Bank-owned life insurance | 71,978 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 3,343,888 | 2,979,439 |
Accrued interest payable | 1,914 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 45,690 | 45,690 |
Subordinated debt securities | 77,939 | 76,889 |
Level 1 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 486,821 | 300,307 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 3,004,091 | 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] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 13,900 | 15,233 |
Bank-owned life insurance | 71,978 | 70,731 |
Financial liabilities [Abstract] | ||
Deposits | 339,797 | 329,609 |
Accrued interest payable | 1,914 | 2,113 |
Notes payable & other borrowings | 0 | 75,000 |
Junior subordinated deferrable interest debentures | 45,690 | 45,690 |
Subordinated debt securities | 77,939 | 76,889 |
Level 3 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans, net | 2,397,079 | 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 (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Acquired and Liabilities Assumed [Abstract] | |||||
Cash paid | $ 0 | $ 687 | $ 0 | ||
Assets acquired [Abstract] | |||||
Goodwill recorded in acquisition | $ 19,508 | $ 19,508 | $ 18,757 | $ 0 | |
Windmark Insurance Agency, Inc. [Member] | Crop Insurance Agency in Nebraska [Member] | |||||
Assets Acquired and Liabilities Assumed [Abstract] | |||||
Cash paid | $ 687 | ||||
Assets acquired [Abstract] | |||||
Premises and equipment, net | 24 | ||||
Total assets acquired | 687 | ||||
Goodwill recorded in acquisition | 0 | ||||
Windmark Insurance Agency, Inc. [Member] | Crop Insurance Agency in Nebraska [Member] | Customer List [Member] | |||||
Assets acquired [Abstract] | |||||
Intangible assets | 512 | ||||
Windmark Insurance Agency, Inc. [Member] | Crop Insurance Agency in Nebraska [Member] | Other Intangible Assets [Member] | |||||
Assets acquired [Abstract] | |||||
Intangible assets | $ 151 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Jan. 20, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Dividends [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.30 | $ 0.14 | $ 0.06 | |
Subsequent Event [Member] | ||||
Dividends [Abstract] | ||||
Dividends declared date | Jan. 20, 2022 | |||
Dividends declared per share (in dollars per share) | $ 0.11 | |||
Dividends payable date | Feb. 14, 2022 | |||
Dividends record date | Jan. 31, 2022 |