South Plains Financial (SPFI) 10-Q 8 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	001-38895
Entity Registrant Name	South Plains Financial, Inc.
Entity Central Index Key	0001163668
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-2453320
Entity Address, Address Line One	5219 City Bank Parkway
Entity Address, City or Town	Lubbock
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79407
City Area Code	806
Local Phone Number	792-7101
Title of 12(b) Security	Common Stock, $1.00 par value per share
Trading Symbol	SPFI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,367,661

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 67,127	$ 68,425
Interest-bearing deposits in banks	308,563	418,396
Cash and cash equivalents	375,690	486,821
Securities available for sale	763,943	724,504
Loans held for sale	37,949	76,507
Loans held for investment	2,580,493	2,437,577
Allowance for loan losses	(39,785)	(42,098)
Loans held for investment, net	2,540,708	2,395,479
Accrued interest receivable	12,216	13,900
Premises and equipment, net	56,531	57,699
Bank-owned life insurance	72,574	71,978
Goodwill	19,508	19,508
Intangible assets, net	5,112	5,895
Mortgage servicing rights	27,505	19,700
Deferred tax asset, net	16,907	3,038
Other assets	46,081	26,826
Total assets	3,974,724	3,901,855
Deposits:
Noninterest-bearing	1,195,732	1,071,367
Interest-bearing	2,230,105	2,269,855
Total deposits	3,425,837	3,341,222
Accrued expenses and other liabilities	62,404	31,038
Subordinated debt securities	75,868	75,775
Junior subordinated deferrable interest debentures	46,393	46,393
Total liabilities	3,610,502	3,494,428
Stockholders' equity:
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 17,417,094 and 17,760,243 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	17,417	17,760
Additional paid-in capital	125,332	133,215
Retained earnings	268,305	242,750
Accumulated other comprehensive income (loss)	(46,832)	13,702
Total stockholders' equity	364,222	407,427
Total liabilities and stockholders' equity	$ 3,974,724	$ 3,901,855

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
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)	17,417,094	17,760,243
Common stock, shares outstanding (in shares)	17,417,094	17,760,243

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income:
Loans, including fees	$ 35,419	$ 29,360	$ 64,797	$ 58,640
Securities:
Taxable	3,542	2,413	5,918	4,873
Non-taxable	1,137	1,157	2,281	2,327
Federal funds sold and interest-bearing deposits in banks	654	86	836	158
Total interest income	40,752	33,016	73,832	65,998
Interest expense:
Deposits	2,317	2,186	4,207	4,343
Notes payable & other borrowings	0	4	0	43
Subordinated debt securities	1,013	1,012	2,025	2,031
Junior subordinated deferrable interest debentures	317	221	548	444
Total interest expense	3,647	3,423	6,780	6,861
Net interest income	37,105	29,593	67,052	59,137
Provision for loan losses	0	(2,007)	(2,085)	(1,918)
Net interest income, after provision for loan losses	37,105	31,600	69,137	61,055
Noninterest income:
Service charges on deposit accounts	1,612	1,599	3,385	3,172
Income from insurance activities	1,577	1,240	3,147	2,352
Net gain on sales of loans	5,979	12,317	13,472	28,260
Bank card services and interchange fees	3,478	3,073	6,700	5,715
Other mortgage banking income	2,690	1,395	8,834	4,268
Investment commissions	466	530	1,012	960
Fiduciary fees	635	842	1,247	1,678
Other	2,398	1,254	4,735	2,345
Total noninterest income	18,835	22,250	42,532	48,750
Noninterest expense:
Salaries and employee benefits	21,990	23,377	44,693	47,695
Occupancy and equipment, net	4,033	3,499	7,770	7,064
Professional services	2,647	1,522	5,272	3,095
Marketing and development	758	812	1,478	1,380
IT and data services	941	907	1,994	1,961
Bank card expenses	1,328	1,252	2,651	2,301
Appraisal expenses	508	879	1,073	1,560
Other	3,851	4,530	9,049	8,779
Total noninterest expense	36,056	36,778	73,980	73,835
Income before income taxes	19,884	17,072	37,689	35,970
Income tax expense	4,001	3,422	7,528	7,160
Net income	$ 15,883	$ 13,650	$ 30,161	$ 28,810
Earnings per share:
Basic (in dollars per share)	$ 0.91	$ 0.76	$ 1.71	$ 1.60
Diluted (in dollars per share)	$ 0.88	$ 0.74	$ 1.66	$ 1.55
Net income	$ 15,883	$ 13,650	$ 30,161	$ 28,810
Other comprehensive income (loss):
Unrealized gain (loss) on securities available for sale	(42,097)	10,620	(86,974)	(7,872)
Less: Change in fair value on hedged state and municipal securities	3,450	(2,750)	10,349	4,183
Tax effect	8,116	(1,653)	16,091	775
Other comprehensive income (loss)	(30,531)	6,217	(60,534)	(2,914)
Comprehensive income (loss)	$ (14,648)	$ 19,867	$ (30,373)	$ 25,896

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total	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]
Balance at Dec. 31, 2020	$ 18,076	$ 141,112	$ 189,521	$ 21,339	$ 370,048
Balance (in shares) at Dec. 31, 2020	18,076,364
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	28,810	0	28,810
Cash dividends declared	0	0	(2,167)	0	(2,167)
Other comprehensive income (loss)	0	0	0	(2,914)	(2,914)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 21	(127)	0	0	(106)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	20,552
Repurchases of common stock	$ (83)	(1,595)	0	0	(1,678)
Repurchases of common stock (in shares)	(82,518)
Stock-based compensation	$ 0	822	0	0	822
Balance at Jun. 30, 2021	$ 18,014	140,212	216,164	18,425	392,815
Balance (in shares) at Jun. 30, 2021	18,014,398
Balance at Mar. 31, 2021	$ 18,053	140,633	203,777	12,208	374,671
Balance (in shares) at Mar. 31, 2021	18,053,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	13,650	0	13,650
Cash dividends declared	0	0	(1,263)	0	(1,263)
Other comprehensive income (loss)	0	0	0	6,217	6,217
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 1	(1)	0	0	0
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	503
Repurchases of common stock	$ (40)	(852)	0	0	(892)
Repurchases of common stock (in shares)	(39,334)
Stock-based compensation	$ 0	432	0	0	432
Balance at Jun. 30, 2021	$ 18,014	140,212	216,164	18,425	392,815
Balance (in shares) at Jun. 30, 2021	18,014,398
Balance at Dec. 31, 2021	$ 17,760	133,215	242,750	13,702	$ 407,427
Balance (ASU 2016-02 [Member]) at Dec. 31, 2021						$ 0	$ 0	$ (717)	$ 0	$ (717)
Balance (in shares) at Dec. 31, 2021	17,760,243				17,760,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	30,161	0	$ 30,161
Cash dividends declared	0	0	(3,889)	0	(3,889)
Other comprehensive income (loss)	0	0	0	(60,534)	(60,534)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 20	(215)	0	0	(195)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	20,337
Repurchases of common stock	$ (363)	(8,845)	0	0	(9,208)
Repurchases of common stock (in shares)	(363,486)
Stock-based compensation	$ 0	1,177	0	0	1,177
Balance at Jun. 30, 2022	$ 17,417	125,332	268,305	(46,832)	$ 364,222
Balance (in shares) at Jun. 30, 2022	17,417,094				17,417,094
Balance at Mar. 31, 2022	$ 17,673	130,618	255,078	(16,301)	$ 387,068
Balance (ASU 2016-02 [Member]) at Mar. 31, 2022						$ 0	$ 0	$ (717)	$ 0	$ (717)
Balance (in shares) at Mar. 31, 2022	17,673,407
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	15,883	0	15,883
Cash dividends declared	0	0	(1,939)	0	(1,939)
Other comprehensive income (loss)	0	0	0	(30,531)	(30,531)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 1	(1)	0	0	0
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	675
Repurchases of common stock	$ (257)	(5,933)	0	0	(6,190)
Repurchases of common stock (in shares)	(256,988)
Stock-based compensation	$ 0	648	0	0	648
Balance at Jun. 30, 2022	$ 17,417	$ 125,332	$ 268,305	$ (46,832)	$ 364,222
Balance (in shares) at Jun. 30, 2022	17,417,094				17,417,094

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Cash dividends, common (in dollars per share)	$ 0.11	$ 0.07	$ 0.22	$ 0.12
Exercise of employee stock options, shares for cashless exercise (in shares)	272	1,806	4,824	2,906
Exercise of employee stock options, shares for taxes (in shares)			7,129	5,013

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 30,161	$ 28,810
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	(2,085)	(1,918)
Depreciation and amortization	3,508	3,223
Accretion and amortization	2,077	2,281
Other gains, net	(59)	(8)
Net gain on sales of loans	(13,472)	(28,260)
Proceeds from sales of loans held for sale	492,086	869,253
Loans originated for sale	(442,236)	(815,446)
Deferred income tax expense	2,411	1,561
Earnings on bank-owned life insurance	(596)	(630)
Stock-based compensation	1,177	822
Change in valuation of mortgage servicing rights	(5,625)	(936)
Net change in:
Accrued interest receivable and other assets	1,042	6,043
Accrued expenses and other liabilities	21,058	4,411
Net cash provided by operating activities	89,447	69,206
Activity in securities available for sale:
Purchases	(176,713)	(56,565)
Maturities, prepayments, and calls	48,318	71,979
Loan originations and principal collections, net	(143,497)	(83,035)
Purchases of premises and equipment	(1,998)	(1,191)
Proceeds from sales of premises and equipment	239	22
Proceeds from sales of foreclosed assets	1,750	693
Net cash used in investing activities	(271,901)	(68,097)
Cash flows from financing activities:
Net change in deposits	84,615	184,144
Net change in short-term borrowings	0	(22,660)
Payments to tax authorities for stock-based compensation	(195)	(106)
Payments made on notes payable and other borrowings	0	(75,000)
Cash dividends on common stock	(3,889)	(2,167)
Payments to repurchase common stock	(9,208)	(1,678)
Net cash provided by financing activities	71,323	82,533
Net change in cash and cash equivalents	(111,131)	83,642
Beginning cash and cash equivalents	486,821	300,307
Ending cash and cash equivalents	375,690	383,949
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	6,619	6,623
Income taxes paid	2,776	0
Supplemental schedule of noncash activities:
Loans transferred to foreclosed assets	353	484
Additions to mortgage servicing rights	$ 2,180	$ 5,992

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
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. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly-Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries Basis of Presentation and Consolidation The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022 (this “Form 10-Q”) include the accounts of SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the “Company”) identified above. All significant intercompany balances and transactions have been eliminated in consolidation. The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates Securities – Investment securities may be classified into trading, held to maturity (“HTM”) or available for sale (“AFS”) portfolios. Securities that are held principally for resale in the near term are classified as trading. Securities that management has the ability and positive intent to hold to maturity are classified as HTM and recorded at amortized cost. Securities not classified as trading or HTM are AFS and are reported at fair value with unrealized gains and losses excluded from earnings, but included in the determination of . Management uses these assets as part of its asset/liability management strategy; they may be sold in response to changes in liquidity needs, interest rates, resultant prepayment risk changes, and other factors. Management determines the appropriate classification of securities at the time of purchase. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method. 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. 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 losses. 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 Any loans the Company determines have evidence of deterioration of credit quality since origination, and it is probable, at acquisition, that all contractually required payments will not be collected, are considered to be purchase credit impaired loans. excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20, Receivables—Nonrefundable Fees and Other Costs 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 – When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sale of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates present value of estimated future servicing income. 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 combined financial statements. 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. Goodwill and Other Intangible Assets – Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but is tested for impairment on October 31 of each year or more frequently if events and circumstances exist that indicate that an impairment test should be performed. There was no goodwill impairment recorded for the six months ended June 30, 2022 and the year ended December 31, 2021. 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. Substantially 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 – Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market, forward commitments for the future delivery of these mortgage loans, and forward sales of mortgage-backed securities are accounted for as free standing derivatives. At the time of the interest rate lock, the Company determines whether the loan will be sold through a best efforts contract or a mandatory delivery contract. 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 consolidated financial statements. Derivatives – At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. 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. Leases – During the second quarter of 2022, the Company adopted Accounting Standards Update ( “ cumulative effect adjustment debit to retained earnings. The Company determines if an arrangement is a lease at inception. Operating leases with a term of greater than one year are included in other assets and other liabilities on the Company’s Consolidated Balance Sheets. Finance leases, if any, are included in premises and equipment and other liabilities on the Company’s Consolidated Balance Sheets. The Company has lease agreements with lease and nonlease components, which are generally accounted for as a single lease component. The Company has made an accounting policy election not to recognize short-term lease assets and liabilities (less than a 12-month term) or equipment leases (deemed not significant) on its Consolidated Balance Sheets; instead, the Company recognizes the lease expense for these leases on a straight-line basis over the life of the lease. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company . No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent the future rental expenses associated with operating leases, and the incremental borrowing rates are based on publicly available interest rates. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. Rental expense for lease payments is recognized on a straight-line basis over the lease term and is included in occupancy and equipment, net within our Consolidated Statements of Comprehensive Income. The Company leases and subleases certain facilities and office space to outside parties; however, these leases are not significant. Stock-Based Compensation Company sponsors an equity incentive plan under which options to acquire shares of the Company’s common stock may be granted periodically to all full-time employees and directors of the Company or its affiliates at a specific exercise price. Shares are issued out of authorized and unissued common shares that have been reserved for issuance under such plan. Compensation cost is measured based on the estimated fair value of the award at the grant date and is recognized in earnings on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the date of grant using a closed form option valuation (“Black-Scholes”) option pricing model. This model requires assumptions as to the expected stock volatility, dividends, terms and risk-free rates. The expected volatility is based on the combination of the Company’s historical volatility and the volatility of comparable peer banks. The expected term represents the period of time that options are expected to be outstanding from the grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the appropriate life of each stock option Earnings per Share – Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. shares are considered outstanding for this calculation unless unearned. Diluted earnings per share includes the dilutive effect of unearned ESOP shares, if applicable. Diluted earnings per share includes the dilutive effect of additional potential shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. Segment Information – The Company has two reportable segments: banking and insurance. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company’s reportable segments are strategic business units that offer different products and services. Operations are managed and financial performance is evaluated on a Company-wide basis. Reclassifications – Certain amounts from the 2021 consolidated financial statements have been reclassified to conform to the June 30, 2022 presentation. Recent Accounting Pronouncements – FASB ASC constitutes GAAP for nongovernmental entities. Updates to ASC are prescribed in ASU, which are not authoritative until incorporated into the ASC. ASU 2021-01, Reference Rate Reform (Topic 848). In January 2021, the FASB issued ASU 2021-01 to clarify the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. This update additionally clarified that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. This update was effective upon issuance and generally can be applied through December 31, 2022. See the discussion regarding the adoption of ASU 2020-04 below. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU 2020-04 and it provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the Company’s consolidated financial statements. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity securities, and debt securities. ASU 2016-13 is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has contracted with a third-party vendor to assist in the implementation of CECL. The model has been developed and validation is underway. The Company expects to adopt CECL effective January 1, 2023. Subsequent Events – The Company has evaluated subsequent events and transactions from June 30, 2022 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2022
SECURITIES [Abstract]
SECURITIES	2. SECURITIES The amortized cost and fair value of securities, with gross unrealized gains and losses, : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30 , 2022 Available for sale: State and municipal $ 262,470 $ 116 $ (28,648 ) $ 233,938 Mortgage-backed securities 455,300 1 (46,039 ) 409,262 Collateralized mortgage obligations 86,294 821 — 87,115 Asset-backed and other amortizing securities 23,243 — (1,173 ) 22,070 Other securities 12,000 — (442 ) 11,558 $ 839,307 $ 938 $ (76,302 ) $ 763,943 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2021 Available for sale: 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 The amortized cost and fair value of securities at June 30, 2022 are presented below by contractual maturity (dollars in thousands). 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 $ 951 $ 953 After 1 year through 5 years 8,449 8,470 After 5 years through 10 years 22,147 21,527 After 10 years 242,923 214,547 Other 564,837 518,446 $ 839,307 $ 763,943 At both June 30, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity. Securities with a carrying value of approximately $463.7 million and $474.5 million at June 30, 2022 and December 31, 2021, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law. The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30 , 2022 State and municipal $ 216,679 $ 27,194 $ 7,373 $ 1,454 $ 224,052 $ 28,648 Mortgage-backed securities 341,527 31,360 67,724 14,679 409,251 46,039 Collateralized mortgage obligations — — — — — — Asset-backed and other amortizing securities 22,070 1,173 — — 22,070 1,173 Other securities 11,558 442 — — 11,558 442 $ 591,834 $ 60,169 $ 75,097 $ 16,133 $ 666,931 $ 76,302 December 31 , 2021 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 There were 160 securities with an unrealized loss at June 30, 2022, generally due to increases in market rates. 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 the Company will be required to sell any of these securities before recovery, and credit loss, if any, is not material. These unrealized losses are largely due to significant increases in market interest rates experienced during the first six months of 2022 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 in future periods. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of June 30, 2022, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company’s combined financial statements.

LOANS HELD FOR INVESTMENT

LOANS HELD FOR INVESTMENT	6 Months Ended
	Jun. 30, 2022
LOANS HELD FOR INVESTMENT [Abstract]
LOANS HELD FOR INVESTMENT	3. LOANS HELD FOR INVESTMENT Loans held for investment are summarized by category as of the periods presented below (dollars in thousands): June 30, 2022 December 31, 2021 Commercial real estate $ 806,538 $ 755,444 Commercial - specialized 351,609 378,725 Commercial - general 483,964 460,024 Consumer: 1-4 family residential 407,881 387,690 Auto loans 299,703 240,719 Other consumer 78,124 68,113 Construction 152,674 146,862 2,580,493 2,437,577 Allowance for loan losses (39,785 ) (42,098 ) Loans, net $ 2,540,708 $ 2,395,479 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 $39.8 million at June 30, 2022, compared to $42.1 million at December 31, 2021. The ratio of allowance for loan losses to loans held for investment was 1.54% at June 30, 2022 and 1.73% at December 31, 2021. The following table details the activity in the allowance for loan losses for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2022 Commercial real estate $ 14,621 $ (1,111 ) $ — $ 393 $ 13,903 Commercial - specialized 3,275 71 (68 ) 77 3,355 Commercial - general 9,940 (149 ) (8 ) 135 9,918 Consumer: 1-4 family residential 4,931 397 — 1 5,329 Auto loans 3,681 314 (69 ) 32 3,958 Other consumer 1,384 250 (242 ) 51 1,443 Construction 1,817 228 (166 ) — 1,879 $ 39,649 $ — $ (553 ) $ 689 $ 39,785 For the three months ended June 30 , 2021 Commercial real estate $ 19,020 $ (1,732 ) $ — $ — $ 17,288 Commercial - specialized 5,458 (653 ) (5 ) 23 4,823 Commercial - general 8,979 (83 ) (34 ) 86 8,948 Consumer: 1-4 family residential 4,890 172 — 2 5,064 Auto loans 3,891 13 (139 ) 50 3,815 Other consumer 1,480 (12 ) (119 ) 85 1,434 Construction 1,301 288 — 2 1,591 $ 45,019 $ (2,007 ) $ (297 ) $ 248 $ 42,963 Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2022 Commercial real estate $ 17,245 $ (3,760 ) $ — $ 418 $ 13,903 Commercial - specialized 4,363 (1,013 ) (106 ) 111 3,355 Commercial - general 8,466 1,510 (315 ) 257 9,918 Consumer: 1-4 family residential 5,268 99 (40 ) 2 5,329 Auto loans 3,653 382 (155 ) 78 3,958 Other consumer 1,357 398 (428 ) 116 1,443 Construction 1,746 299 (166 ) — 1,879 $ 42,098 $ (2,085 ) $ (1,210 ) $ 982 $ 39,785 For the six months ended June 30 , 2021 Commercial real estate $ 18,962 $ (1,674 ) $ — $ — $ 17,288 Commercial - specialized 5,760 (1,032 ) (5 ) 100 4,823 Commercial - general 9,227 (32 ) (377 ) 130 8,948 Consumer: 1-4 family residential 4,646 467 (52 ) 3 5,064 Auto loans 4,226 (167 ) (327 ) 83 3,815 Other consumer 1,671 (6 ) (377 ) 146 1,434 Construction 1,061 526 — 4 1,591 $ 45,553 $ (1,918 ) $ (1,138 ) $ 466 $ 42,963 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the dates indicated (dollars in thousands): Recorded Investment Allowance for Loan Losses Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated June 30 , 2022 Commercial real estate $ — $ 806,538 $ — $ 13,903 Commercial - specialized — 351,609 — 3,355 Commercial - general 3,601 480,363 189 9,729 Consumer: 1-4 family residential 1,966 405,915 166 5,163 Auto loans — 299,703 — 3,958 Other consumer — 78,124 — 1,443 Construction — 152,674 — 1,879 $ 5,567 $ 2,574,926 $ 355 $ 39,430 December 31 , 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 $ 7,771 $ 2,429,806 $ 1,344 $ 40,754 Impaired loan information at the dates indicated follows (dollars in thousands): Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment June 30 , 2022 Commercial real estate $ — $ — $ — $ — $ — $ 551 Commercial - specialized — — — — — — Commercial - general 3,601 883 2,718 3,601 189 4,340 Consumer: 1-4 family residential 1,966 1,271 695 1,966 166 1,779 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — $ 5,567 $ 2,154 $ 3,413 $ 5,567 $ 355 $ 6,670 December 31 , 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 residential 1,592 880 712 1,592 175 1,857 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — $ 7,771 $ 2,023 $ 5,748 $ 7,771 $ 1,344 $ 10,396 All impaired loans $250 thousand and greater were specifically evaluated for impairment. Interest income recognized using a cash-basis method on impaired loans for the six months ended June 30, 2022 and the year ended December 31, 2021 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 the dates indicated (dollars in thousands): 30-89 Days Past Due 90 Days or More Past Due Nonaccrual June 30 , 2022 Commercial real estate $ 840 $ 23 $ — Commercial - specialized 424 — 119 Commercial - general 2,270 2 3,619 Consumer: 1-4 family residential 1,453 580 3,131 Auto loans 373 58 — Other consumer 749 72 41 Construction 498 — 244 $ 6,607 $ 735 $ 7,154 December 31 , 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 $ 8,993 $ 1,080 $ 9,518 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 the Company's on-going monitoring of the credit quality of the 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 the dates indicated (dollars in thousands): Pass Special Mention Substandard Doubtful Total June 30 , 2022 Commercial real estate $ 770,699 $ — $ 35,839 $ — $ 806,538 Commercial - specialized 350,490 — 1,119 — 351,609 Commercial - general 454,648 — 29,316 — 483,964 Consumer: 1-4 family residential 398,860 — 9,021 — 407,881 Auto loans 299,508 — 195 — 299,703 Other consumer 77,892 — 232 — 78,124 Construction 151,847 — 827 — 152,674 $ 2,503,944 $ — $ 76,549 $ — $ 2,580,493 December 31 , 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 $ 2,371,284 $ 1,676 $ 64,617 $ — $ 2,437,577 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 to extend the period for loan modifications to the earlier of (1) January 1, 2022, or (2) 60 days after the date of termination of the national emergency. The Company elected to adopt the provisions of the CARES Act and the Act. Additionally, other short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not TDRs under ASC 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 310-40 and the Joint Interagency Regulatory Guidance. As of June 30, 2022 and December 31, 2021, the Company had no loans under an active modification that comply with ASC 310-40 and the Joint Interagency Regulatory Guidance. Beginning in April 2020, the Company began offering additional COVID-19 related deferral and modification of principal and/or interest payments to selected borrowers on a case-by-case basis that were outside the scope of the short-term deferral modification program. These additional modifications comply with the provisions of section 4013 of the CARES Act and section 501 of the Act. As of June 30, 2022, There were no loans modified as a TDR during the six months ended June 30, 2022 and the year ended December 31, 2021.

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES	6 Months Ended
	Jun. 30, 2022
GOODWILL AND INTANGIBLES [Abstract]
GOODWILL AND INTANGIBLES	4. GOODWILL AND INTANGIBLES The Company had goodwill of $19.5 million at June 30, 2022 and December 31, 2021. Other June 30, 2022 December 31, 2021 Amortized intangible assets Core deposit intangible $ 6,679 $ 6,679 Less: Accumulated amortization (2,955 ) (2,469 ) 3,724 4,210 Other intangibles 2,972 2,972 Less: Accumulated amortization (1,584 ) (1,287 ) 1,388 1,685 Other intangible assets, net $ 5,112 $ 5,895

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2022
MORTGAGE SERVICING RIGHTS [Abstract]
MORTGAGE SERVICING RIGHTS	5. 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, for the periods or dates presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ 25,425 $ 13,558 $ 19,700 $ 9,049 Additions 930 2,770 2,180 5,992 Valuation adjustment 1,150 (351 ) 5,625 936 Ending balance $ 27,505 $ 15,977 $ 27,505 $ 15,977 June 30, December 31, 2022 2021 Mortgage loans serviced for others $ 2,054,975 $ 1,953,095 Mortgage servicing rights assets as a percentage of serviced mortgage loans 1.34 % 1.01 % The following table reflects the key assumptions used in measuring the fair value of the Company's mortgage servicing rights as of the dates indicated: June 30, December 31, 2022 2021 Weighted average constant prepayment rate 7.44 % 12.35 % Weighted average discount rate 9.13 % 9.14 % Weighted average life in years 7.99 6.03

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	6 Months Ended
	Jun. 30, 2022
BORROWING ARRANGEMENTS [Abstract]
BORROWING ARRANGEMENTS	6. BORROWING ARRANGEMENTS Subordinated Debt Securities In December 2018, the Company issued $26.5 million in subordinated debt securities. $12.4 million of the subordinated debt securities have a maturity date of December 2028 December 2030 Wall Street Journal subordinated debt are intended to On September 29, 2020, the Company issued $50.0 million in subordinated debt securities. Pr from the issuance of these subordinated debt securities approximately $926 thousand in debt issuance costs. The subordinated debt issued in September 2020 date of September 2030 securities will reset quarterly at a variable rate equal to the then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 438 basis points. These securities pay interest semi-annually, are unsecured, and may be called by the Company at any time after the remaining maturity is five years or less. Additionally, subordinated debt are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. As of June 30, 2022, the total amount of the Company’s subordinated debt securities outstanding was $76.5 million less approximately $604 thousand of remaining debt issuance costs for a total balance of $75.9 million. As of December 31, 2021 Notes Payable and Other Borrowings As of June 30, 2022

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2022
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	7. STOCK-BASED COMPENSATION Equity Incentive Plan The 2019 Equity Incentive Plan (“Plan”) was approved by the Company’s Board of Directors on January 16, 2019 and by its shareholders on March 6, 2019. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of substantial responsibility, (ii) provide additional incentive to employees, directors and consultants, and (iii) promote the success of the Company’s business. This Plan permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the Plan is 2,300,000. The maximum aggregate number of shares that may be issued under the Plan may be increased annually by up to 3% of the total issued and outstanding common shares of the Company at the beginning of each fiscal year. The fair value of each option award 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 for the period indicated (dollars in thousands, except per share data): Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Six Months Ended June 30 , 2022 Outstanding at beginning of year: 1,602,028 $ 15.42 $ 13,975 Granted 45,203 29.40 — Exercised (7,413 ) 18.58 (41 ) Forfeited (7,449 ) 19.30 (36 ) Expired (3,317 ) 18.05 (20 ) Balance, June 30 2022 1,629,052 $ 15.78 5.62 $ 13,878 Exercisable at end of period 1,199,739 $ 14.09 5.07 $ 12,057 Vested at end of period 1,199,739 $ 14.09 5.07 $ 12,057 A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below: Six Months Ended June 30, 2022 2021 Expected volatility 40.20% to 40.29% 41.20% to 41.32% Expected dividend yield 1.30% 1.00% Expected term (years) 6.1 6.3 6.1 to 6.2 Risk-free interest rate 1.56% to 1.95% 0.52% to 0.83% Weighted average grant date fair value $ 10.54 $ 7.07 The total intrinsic value of options exercised during the six months ended June 30, 2022 and June 30, 2021 was $74 thousand and $17 thousand, respectively. Restricted Stock Awards and Units A summary of activity in the Plan for the period indicated Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2022 Outstanding at beginning of year: 42,767 $ 19.35 Granted 74,891 28.78 Vested (24,877 ) 19.60 Forfeited (4,054 ) 28.18 Balance, June 30 2022 88,727 $ 26.84 Restricted stock units granted under the Plan typically vest from one The total unrecognized compensation cost for the awards outstanding under the Plan at June 30, 2022 was $3.9 million and will be recognized over a weighted average remaining period of 1.62 years. The total fair value of restricted stock units vested during each of the six months ended June 30, 2022 and June 30, 2021 was $488 thousand and $489 thousand, respectively.

OFF-BALANCE-SHEET ACTIVITIES, C

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract]
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES	8. 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 the dates indicated follow (dollars in thousands): June 30, 2022 December 31, 2021 Commitments to grant loans and unfunded commitments under lines of credit $ 637,554 $ 542,338 Standby letters of credit 13,970 12,418 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 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 combined financial statements, based on information known as of the date of the combined financial statements. FHLB Letters of Credit - The Company may use FHLB letters of credit to pledge to certain public deposits. There were no FHLB letters of credit outstanding at June 30, 2022 or December 31, 2021.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2022
LEASES [Abstract]
LEASES	9. LEASES The Company leases space, primarily for branch facilities and small equipment under operating leases. The Company’s leases often include one or more options to renew at the Company's discretion, and some of the Company’s leases include options to terminate within one year. When it is reasonably certain that the Company will exercise the option to renew or extend the lease term, that option is included in estimating the value of the ROU asset and lease liability. The Company’s leases contain customary restrictions and covenants and do not contain any residual value guarantees. The Company has certain intercompany leases and subleases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. As of June 30, 2022, the Company had no finance leases. The balance sheet components of the Company's leases at the date indicated are as follows (dollars in thousands): June 30, 2022 Operating lease right of use assets (included in Other assets $ 8,616 Operating lease liabilities (included in Accrued expenses and other liabilities 9,560 The Company does not generally enter into leases which contain variable payments, other than due to the passage of time. Operating lease costs, including short-term lease costs were $ 747 thousand 1.4 million, respectively thousand million, respectively Supplemental cash flow information related to leases for the periods presented is as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 492 $ 971 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ — $ — For operating leases the Company’s weighted average remaining lease terms in years and weighted average discount rate was 9.88 and 4.63%, respectively, as of June 30, 2022. Maturities of operating lease liabilities at June 30, 2022, under lease agreements that had commenced as of or subsequent to January 1, 2022, are presented below (dollars in thousands). 2022 $ 981 2023 1,848 2024 1,381 2025 973 2026 1,026 Thereafter 6,025 Total minimum lease payments 12,234 Less: Amount representing interest (2,674 ) Lease liabilities $ 9,560 As of June 30, 2022, the Company had no additional operating leases that have not yet commenced.

CAPITAL AND REGULATORY MATTERS

CAPITAL AND REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2022
CAPITAL AND REGULATORY MATTERS [Abstract]
CAPITAL AND REGULATORY MATTERS	10. 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) introduced a new capital measure called Common Equity Tier 1 (“CET1”), (ii) specified that Tier 1 capital consists of CET1 and Additional Tier 1 Capital instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Basel III became effective for the Company and its bank subsidiary on January 1, 2016 with certain transition provisions fully phased-in on January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth in the following table) of total 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 June 30, 2022 and December 31, 2021, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject. As of June 30, 2022, 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 June 30, 2022 that management believes have changed the bank subsidiary’s category. The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands): Actual Minimum Required Under BASEL III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30 , 2022 Total Capital to Risk Weighted Assets: Consolidated $ 546,768 17.32 % $ 331,456 10.50 % N/A N/A City Bank 439,026 13.91 % 331,407 10.50 % $ 315,625 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 431,435 13.67 % 268,322 8.50 % N/A N/A City Bank 399,567 12.66 % 268,282 8.50 % 252,500 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 386,435 12.24 % 220,971 7.00 % N/A N/A City Bank 399,567 12.66 % 220,938 7.00 % 205,157 6.50 % Tier I Capital to Average Assets: Consolidated 431,435 10.93 % 158,814 4.00 % N/A N/A City Bank 399,567 10.13 % 158,814 4.00 % 197,286 5.00 % 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 Equity Tier 1 to Risk Weighted Assets: 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 % 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

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2022
DERIVATIVES [Abstract]
DERIVATIVES	11. DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position. These interest rate swaps are designated and qualify as fair value hedges and are entered into to reduce exposure to changes in fair value of fixed rate financial instruments. The notional amount of the interest rate 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 swap agreements. The following table reflects the changes in fair value hedges included in the Consolidated Statements of Comprehensive Income (Loss) as of the periods indicated (dollars in thousands): Three Months Ended June 30, Interest Rate Contracts Location 2022 2021 Interest rate swaps - fair value hedges Interest income $ (205 ) $ (172 ) Fair value hedge ineffectiveness Other noninterest expense $ 21 $ (53 ) Six Months Ended June 30 Interest Rate Contracts Location 2022 2021 Interest rate swaps - fair value hedges Interest income $ (341 ) $ (347 ) Fair value hedge ineffectiveness Other noninterest expense $ 171 $ 74 The following table reflects the fair value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands): June 30, 2022 December 31, 2021 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 1,015 $ 6 $ 9,775 $ 429 Interest rate swaps related to state and municipal securities — — — — Included in other assets: Interest rate swaps related to fixed rate loans $ 8,583 $ 202 $ — $ — Interest rate swaps related to state and municipal securities 123,760 15,863 123,760 5,686 Mortgage banking derivatives The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below as of the periods indicated (dollars in thousands): Three Months Ended June 30, Location 2022 2021 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 166 $ 1,241 Interest rate lock commitments Net gain (loss) on sales of loans $ (940 ) $ (3,237 ) Six Months Ended June 30 Location 2022 2021 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ (926 ) $ 1,140 Interest rate lock commitments Net gain (loss) on sales of loans $ 117 $ (2,148 ) The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets at the dates indicated (dollars in thousands): June 30, 2022 December 31, 2021 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 70,428 1,759 104,437 1,642 Total included in other assets $ 70,428 $ 1,759 $ 104,437 $ 1,642 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 62,899 $ 1,032 $ 93,120 $ 106 Interest rate lock commitments — — — — Total included in other liabilities $ 62,899 $ 1,032 $ 93,120 $ 106 The Company had received cash collateral of $16.7 million to offset asset derivative positions on its interest rate swaps at June 30, 2022. This amount is reported in other liabilities in the Consolidated Balance Sheets. The Company had advanced $1.1 million to offset liability derivative positions on its interest rate swaps at June 30, 2022. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at June 30, 2022. The advanced cash collateral amounts are reported in cash and due from banks in the Consolidated Balance Sheets.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2022
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	12. EARNINGS PER SHARE The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income $ 15,883 $ 13,650 $ 30,161 $ 28,810 Weighted average common shares outstanding - basic 17,490,706 18,039,553 17,602,798 18,054,288 Effect of dilutive securities: Stock-based compensation awards 529,842 513,497 609,638 484,881 Weighted average common shares outstanding - diluted 18,020,548 18,553,050 18,212,436 18,539,169 Basic earnings per share $ 0.91 $ 0.76 $ 1.71 $ 1.60 Diluted earnings per share $ 0.88 $ 0.74 $ 1.66 $ 1.55

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2022
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	13. SEGMENT INFORMATION Financial results by reportable segment as of the periods indicated are detailed below (dollars in thousands): Three Months Ended June 30 , 2022 Banking Insurance Consolidated Net interest income $ 37,105 $ — $ 37,105 Provision for loan losses — — — Noninterest income 17,364 1,471 18,835 Noninterest expense (34,891 ) (1,165 ) (36,056 ) Income before income taxes 19,578 306 19,884 Income tax (expense) benefit (3,936 ) (65 ) (4,001 ) Net income $ 15,642 $ 241 $ 15,883 Three Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 29,593 $ — $ 29,593 Provision for loan losses 2,007 — 2,007 Noninterest income 21,076 1,174 22,250 Noninterest expense (35,665 ) (1,113 ) (36,778 ) Income before income taxes 17,011 61 17,072 Income tax (expense) benefit (3,409 ) (13 ) (3,422 ) Net income $ 13,602 $ 48 $ 13,650 Six Months Ended June 30 , 2022 Banking Insurance Consolidated Net interest income $ 67,052 $ — $ 67,052 Provision for loan losses 2,085 — 2,085 Noninterest income 39,547 2,985 42,532 Noninterest expense (71,146 ) (2,834 ) (73,980 ) Income before income taxes 37,538 151 37,689 Income tax (expense) benefit (7,495 ) (33 ) (7,528 ) Net income $ 30,043 $ 118 $ 30,161 Six Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 59,137 $ — $ 59,137 Provision for loan losses 1,918 — 1,918 Noninterest income 46,493 2,257 48,750 Noninterest expense (71,620 ) (2,215 ) (73,835 ) Income before income taxes 35,928 42 35,970 Income tax (expense) benefit (7,150 ) (10 ) (7,160 ) Net income $ 28,778 $ 32 $ 28,810

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2022
FAIR VALUE DISCLOSURES [Abstract]
FAIR VALUE DISCLOSURES	14. 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 at the dates indicated (dollars in thousands): Level 1 Level 2 Level 3 Total June 30 , 2022 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 233,938 $ — $ 233,938 Mortgage-backed securities — 409,262 — 409,262 Collateralized mortgage obligations — 87,115 — 87,115 Asset-backed and other amortizing securities — 22,070 — 22,070 Other securities — 11,558 — 11,558 Loans held for sale (mandatory) — 26,448 — 26,448 Mortgage servicing rights — — 27,505 27,505 Asset derivatives — 17,824 — 17,824 Liability derivatives — (1,038 ) — (1,038 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 5,212 5,212 December 31, 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: 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 Securities Loans held for sale (mandatory) Mortgage servicing rights Derivatives Impaired loans The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands): Fair Value Valuation Techniques Unobservable Inputs Range of Discounts June 30, 2022 Non-recurring: Impaired loans $ 5,212 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 27,505 Discounted cash flows Conditional prepayment rate 7.44 % Discount rate 9.13 % December 31, 2021 Non-recurring: Impaired loans $ 6,427 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 19,700 Discounted cash flows Conditional prepayment rate 12.35 % Discount rate 9.14 % The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are as follows (dollars in thousands): Carrying Amount Level 1 Level 2 Level 3 Total Fair Value June 30 , 2022 Financial assets: Cash and cash equivalents $ 375,690 $ 375,690 $ — $ — $ 375,690 Loans held for investment, net 2,540,708 — — 2,530,038 2,530,038 Loans held for sale (best efforts) 11,501 — 11,846 — 11,846 Accrued interest receivable 12,216 — 12,216 — 12,216 Financial liabilities: Deposits $ 3,425,837 $ — $ 3,425,591 $ — $ 3,425,591 Accrued interest payable 2,075 — 2,075 — 2,075 Junior subordinated deferrable interest debentures 46,393 — 34,041 — 34,041 Subordinated debt securities 75,868 — 74,169 — 74,169 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2021 Financial assets: Cash and cash equivalents $ 486,821 $ 486,821 $ — $ — $ 486,821 Loans held for investment, net 2,395,479 — — 2,397,079 2,397,079 Loans held for sale (best efforts) 28,914 — 29,500 — 29,500 Accrued interest receivable 13,900 — 13,900 — 13,900 Financial liabilities: Deposits $ 3,341,222 $ 3,004,091 $ 339,797 $ — $ 3,343,888 Accrued interest payable 1,914 — 1,914 — 1,914 Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,775 — 77,939 — 77,939

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	15. SUBSEQUENT EVENTS On July 21, 2022, the Company declared a cash dividend of $0.12 per share of common stock to be paid on August 15, 2022 to all shareholders of record as of August 1, 2022.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
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. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly-Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries
Consolidation	The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022 (this “Form 10-Q”) include the accounts of SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the “Company”) identified above. All significant intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation	The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
Use of Estimates	Use of Estimates
Securities	Securities – Investment securities may be classified into trading, held to maturity (“HTM”) or available for sale (“AFS”) portfolios. Securities that are held principally for resale in the near term are classified as trading. Securities that management has the ability and positive intent to hold to maturity are classified as HTM and recorded at amortized cost. Securities not classified as trading or HTM are AFS and are reported at fair value with unrealized gains and losses excluded from earnings, but included in the determination of . Management uses these assets as part of its asset/liability management strategy; they may be sold in response to changes in liquidity needs, interest rates, resultant prepayment risk changes, and other factors. Management determines the appropriate classification of securities at the time of purchase. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method. 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.
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 losses. 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 Any loans the Company determines have evidence of deterioration of credit quality since origination, and it is probable, at acquisition, that all contractually required payments will not be collected, are considered to be purchase credit impaired loans. excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20, Receivables—Nonrefundable Fees and Other Costs 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 – When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sale of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates present value of estimated future servicing income. 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 combined financial statements. 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.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets – Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but is tested for impairment on October 31 of each year or more frequently if events and circumstances exist that indicate that an impairment test should be performed. There was no goodwill impairment recorded for the six months ended June 30, 2022 and the year ended December 31, 2021. 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. Substantially 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 – Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market, forward commitments for the future delivery of these mortgage loans, and forward sales of mortgage-backed securities are accounted for as free standing derivatives. At the time of the interest rate lock, the Company determines whether the loan will be sold through a best efforts contract or a mandatory delivery contract. 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 consolidated financial statements.
Derivatives	Derivatives – At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. 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.
Leases	Leases – During the second quarter of 2022, the Company adopted Accounting Standards Update ( “ cumulative effect adjustment debit to retained earnings. The Company determines if an arrangement is a lease at inception. Operating leases with a term of greater than one year are included in other assets and other liabilities on the Company’s Consolidated Balance Sheets. Finance leases, if any, are included in premises and equipment and other liabilities on the Company’s Consolidated Balance Sheets. The Company has lease agreements with lease and nonlease components, which are generally accounted for as a single lease component. The Company has made an accounting policy election not to recognize short-term lease assets and liabilities (less than a 12-month term) or equipment leases (deemed not significant) on its Consolidated Balance Sheets; instead, the Company recognizes the lease expense for these leases on a straight-line basis over the life of the lease. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company . No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent the future rental expenses associated with operating leases, and the incremental borrowing rates are based on publicly available interest rates. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. Rental expense for lease payments is recognized on a straight-line basis over the lease term and is included in occupancy and equipment, net within our Consolidated Statements of Comprehensive Income. The Company leases and subleases certain facilities and office space to outside parties; however, these leases are not significant.
Stock-Based Compensation	Stock-Based Compensation Company sponsors an equity incentive plan under which options to acquire shares of the Company’s common stock may be granted periodically to all full-time employees and directors of the Company or its affiliates at a specific exercise price. Shares are issued out of authorized and unissued common shares that have been reserved for issuance under such plan. Compensation cost is measured based on the estimated fair value of the award at the grant date and is recognized in earnings on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the date of grant using a closed form option valuation (“Black-Scholes”) option pricing model. This model requires assumptions as to the expected stock volatility, dividends, terms and risk-free rates. The expected volatility is based on the combination of the Company’s historical volatility and the volatility of comparable peer banks. The expected term represents the period of time that options are expected to be outstanding from the grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the appropriate life of each stock option
Earnings per Share	Earnings per Share – Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. shares are considered outstanding for this calculation unless unearned. Diluted earnings per share includes the dilutive effect of unearned ESOP shares, if applicable. Diluted earnings per share includes the dilutive effect of additional potential shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.
Segment Information	Segment Information – The Company has two reportable segments: banking and insurance. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company’s reportable segments are strategic business units that offer different products and services. Operations are managed and financial performance is evaluated on a Company-wide basis.
Reclassifications	Reclassifications – Certain amounts from the 2021 consolidated financial statements have been reclassified to conform to the June 30, 2022 presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements – FASB ASC constitutes GAAP for nongovernmental entities. Updates to ASC are prescribed in ASU, which are not authoritative until incorporated into the ASC. ASU 2021-01, Reference Rate Reform (Topic 848). In January 2021, the FASB issued ASU 2021-01 to clarify the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. This update additionally clarified that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. This update was effective upon issuance and generally can be applied through December 31, 2022. See the discussion regarding the adoption of ASU 2020-04 below. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU 2020-04 and it provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the Company’s consolidated financial statements. ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity securities, and debt securities. ASU 2016-13 is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has contracted with a third-party vendor to assist in the implementation of CECL. The model has been developed and validation is underway. The Company expects to adopt CECL effective January 1, 2023.
Subsequent Events	Subsequent Events – The Company has evaluated subsequent events and transactions from June 30, 2022 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2022
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. (“Windmark”) Non-bank subsidiary Ruidoso Retail, Inc. Non-bank subsidiary CB Provence, LLC Non-bank subsidiary CBT Brushy Creek, LLC Non-bank subsidiary CBT Properties, LLC Non-bank subsidiary Wholly-Owned, Equity Method Subsidiaries: South Plains Financial Capital Trusts (SPFCT) III-V Non-bank subsidiaries

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2022
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses	The amortized cost and fair value of securities, with gross unrealized gains and losses, : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30 , 2022 Available for sale: State and municipal $ 262,470 $ 116 $ (28,648 ) $ 233,938 Mortgage-backed securities 455,300 1 (46,039 ) 409,262 Collateralized mortgage obligations 86,294 821 — 87,115 Asset-backed and other amortizing securities 23,243 — (1,173 ) 22,070 Other securities 12,000 — (442 ) 11,558 $ 839,307 $ 938 $ (76,302 ) $ 763,943 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2021 Available for sale: 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 and Fair Value of Securities by Contractual Maturity	The amortized cost and fair value of securities at June 30, 2022 are presented below by contractual maturity (dollars in thousands). 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 $ 951 $ 953 After 1 year through 5 years 8,449 8,470 After 5 years through 10 years 22,147 21,527 After 10 years 242,923 214,547 Other 564,837 518,446 $ 839,307 $ 763,943
Securities with Unrealized Losses Segregated by the Period in a Loss Position	The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position (dollars in thousands): Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30 , 2022 State and municipal $ 216,679 $ 27,194 $ 7,373 $ 1,454 $ 224,052 $ 28,648 Mortgage-backed securities 341,527 31,360 67,724 14,679 409,251 46,039 Collateralized mortgage obligations — — — — — — Asset-backed and other amortizing securities 22,070 1,173 — — 22,070 1,173 Other securities 11,558 442 — — 11,558 442 $ 591,834 $ 60,169 $ 75,097 $ 16,133 $ 666,931 $ 76,302 December 31 , 2021 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

LOANS HELD FOR INVESTMENT (Tabl

LOANS HELD FOR INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2022
LOANS HELD FOR INVESTMENT [Abstract]
Summary of Loans Held for Investment by Category	Loans held for investment are summarized by category as of the periods presented below (dollars in thousands): June 30, 2022 December 31, 2021 Commercial real estate $ 806,538 $ 755,444 Commercial - specialized 351,609 378,725 Commercial - general 483,964 460,024 Consumer: 1-4 family residential 407,881 387,690 Auto loans 299,703 240,719 Other consumer 78,124 68,113 Construction 152,674 146,862 2,580,493 2,437,577 Allowance for loan losses (39,785 ) (42,098 ) Loans, net $ 2,540,708 $ 2,395,479
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 for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2022 Commercial real estate $ 14,621 $ (1,111 ) $ — $ 393 $ 13,903 Commercial - specialized 3,275 71 (68 ) 77 3,355 Commercial - general 9,940 (149 ) (8 ) 135 9,918 Consumer: 1-4 family residential 4,931 397 — 1 5,329 Auto loans 3,681 314 (69 ) 32 3,958 Other consumer 1,384 250 (242 ) 51 1,443 Construction 1,817 228 (166 ) — 1,879 $ 39,649 $ — $ (553 ) $ 689 $ 39,785 For the three months ended June 30 , 2021 Commercial real estate $ 19,020 $ (1,732 ) $ — $ — $ 17,288 Commercial - specialized 5,458 (653 ) (5 ) 23 4,823 Commercial - general 8,979 (83 ) (34 ) 86 8,948 Consumer: 1-4 family residential 4,890 172 — 2 5,064 Auto loans 3,891 13 (139 ) 50 3,815 Other consumer 1,480 (12 ) (119 ) 85 1,434 Construction 1,301 288 — 2 1,591 $ 45,019 $ (2,007 ) $ (297 ) $ 248 $ 42,963 Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2022 Commercial real estate $ 17,245 $ (3,760 ) $ — $ 418 $ 13,903 Commercial - specialized 4,363 (1,013 ) (106 ) 111 3,355 Commercial - general 8,466 1,510 (315 ) 257 9,918 Consumer: 1-4 family residential 5,268 99 (40 ) 2 5,329 Auto loans 3,653 382 (155 ) 78 3,958 Other consumer 1,357 398 (428 ) 116 1,443 Construction 1,746 299 (166 ) — 1,879 $ 42,098 $ (2,085 ) $ (1,210 ) $ 982 $ 39,785 For the six months ended June 30 , 2021 Commercial real estate $ 18,962 $ (1,674 ) $ — $ — $ 17,288 Commercial - specialized 5,760 (1,032 ) (5 ) 100 4,823 Commercial - general 9,227 (32 ) (377 ) 130 8,948 Consumer: 1-4 family residential 4,646 467 (52 ) 3 5,064 Auto loans 4,226 (167 ) (327 ) 83 3,815 Other consumer 1,671 (6 ) (377 ) 146 1,434 Construction 1,061 526 — 4 1,591 $ 45,553 $ (1,918 ) $ (1,138 ) $ 466 $ 42,963 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the dates indicated (dollars in thousands): Recorded Investment Allowance for Loan Losses Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated June 30 , 2022 Commercial real estate $ — $ 806,538 $ — $ 13,903 Commercial - specialized — 351,609 — 3,355 Commercial - general 3,601 480,363 189 9,729 Consumer: 1-4 family residential 1,966 405,915 166 5,163 Auto loans — 299,703 — 3,958 Other consumer — 78,124 — 1,443 Construction — 152,674 — 1,879 $ 5,567 $ 2,574,926 $ 355 $ 39,430 December 31 , 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 $ 7,771 $ 2,429,806 $ 1,344 $ 40,754
Impaired Loan Information	Impaired loan information at the dates indicated follows (dollars in thousands): Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment June 30 , 2022 Commercial real estate $ — $ — $ — $ — $ — $ 551 Commercial - specialized — — — — — — Commercial - general 3,601 883 2,718 3,601 189 4,340 Consumer: 1-4 family residential 1,966 1,271 695 1,966 166 1,779 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — $ 5,567 $ 2,154 $ 3,413 $ 5,567 $ 355 $ 6,670 December 31 , 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 residential 1,592 880 712 1,592 175 1,857 Auto loans — — — — — — Other consumer — — — — — — Construction — — — — — — $ 7,771 $ 2,023 $ 5,748 $ 7,771 $ 1,344 $ 10,396
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 the dates indicated (dollars in thousands): 30-89 Days Past Due 90 Days or More Past Due Nonaccrual June 30 , 2022 Commercial real estate $ 840 $ 23 $ — Commercial - specialized 424 — 119 Commercial - general 2,270 2 3,619 Consumer: 1-4 family residential 1,453 580 3,131 Auto loans 373 58 — Other consumer 749 72 41 Construction 498 — 244 $ 6,607 $ 735 $ 7,154 December 31 , 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 $ 8,993 $ 1,080 $ 9,518
Summary of Internal Classifications of Loans	The following table summarizes the internal classifications of loans at the dates indicated (dollars in thousands): Pass Special Mention Substandard Doubtful Total June 30 , 2022 Commercial real estate $ 770,699 $ — $ 35,839 $ — $ 806,538 Commercial - specialized 350,490 — 1,119 — 351,609 Commercial - general 454,648 — 29,316 — 483,964 Consumer: 1-4 family residential 398,860 — 9,021 — 407,881 Auto loans 299,508 — 195 — 299,703 Other consumer 77,892 — 232 — 78,124 Construction 151,847 — 827 — 152,674 $ 2,503,944 $ — $ 76,549 $ — $ 2,580,493 December 31 , 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 $ 2,371,284 $ 1,676 $ 64,617 $ — $ 2,437,577

GOODWILL AND INTANGIBLES (Table

GOODWILL AND INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2022
GOODWILL AND INTANGIBLES [Abstract]
Other Intangible Assets	Other June 30, 2022 December 31, 2021 Amortized intangible assets Core deposit intangible $ 6,679 $ 6,679 Less: Accumulated amortization (2,955 ) (2,469 ) 3,724 4,210 Other intangibles 2,972 2,972 Less: Accumulated amortization (1,584 ) (1,287 ) 1,388 1,685 Other intangible assets, net $ 5,112 $ 5,895

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2022
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, for the periods or dates presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ 25,425 $ 13,558 $ 19,700 $ 9,049 Additions 930 2,770 2,180 5,992 Valuation adjustment 1,150 (351 ) 5,625 936 Ending balance $ 27,505 $ 15,977 $ 27,505 $ 15,977 June 30, December 31, 2022 2021 Mortgage loans serviced for others $ 2,054,975 $ 1,953,095 Mortgage servicing rights assets as a percentage of serviced mortgage loans 1.34 % 1.01 %
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 as of the dates indicated: June 30, December 31, 2022 2021 Weighted average constant prepayment rate 7.44 % 12.35 % Weighted average discount rate 9.13 % 9.14 % Weighted average life in years 7.99 6.03

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2022
STOCK-BASED COMPENSATION [Abstract]
Summary of Stock Option Activity	A summary of activity in the Plan for the period indicated (dollars in thousands, except per share data): Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life in Years Aggregate Intrinsic Value Six Months Ended June 30 , 2022 Outstanding at beginning of year: 1,602,028 $ 15.42 $ 13,975 Granted 45,203 29.40 — Exercised (7,413 ) 18.58 (41 ) Forfeited (7,449 ) 19.30 (36 ) Expired (3,317 ) 18.05 (20 ) Balance, June 30 2022 1,629,052 $ 15.78 5.62 $ 13,878 Exercisable at end of period 1,199,739 $ 14.09 5.07 $ 12,057 Vested at end of period 1,199,739 $ 14.09 5.07 $ 12,057
Summary of Assumptions Used to Calculate Fair Value of Awards	A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below: Six Months Ended June 30, 2022 2021 Expected volatility 40.20% to 40.29% 41.20% to 41.32% Expected dividend yield 1.30% 1.00% Expected term (years) 6.1 6.3 6.1 to 6.2 Risk-free interest rate 1.56% to 1.95% 0.52% to 0.83% Weighted average grant date fair value $ 10.54 $ 7.07
Summary of Activity of Restricted Stock Units	A summary of activity in the Plan for the period indicated Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2022 Outstanding at beginning of year: 42,767 $ 19.35 Granted 74,891 28.78 Vested (24,877 ) 19.60 Forfeited (4,054 ) 28.18 Balance, June 30 2022 88,727 $ 26.84

OFF-BALANCE-SHEET ACTIVITIES,_2

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2022
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 the dates indicated follow (dollars in thousands): June 30, 2022 December 31, 2021 Commitments to grant loans and unfunded commitments under lines of credit $ 637,554 $ 542,338 Standby letters of credit 13,970 12,418

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
LEASES [Abstract]
Balance Sheet Components of Leases	The balance sheet components of the Company's leases at the date indicated are as follows (dollars in thousands): June 30, 2022 Operating lease right of use assets (included in Other assets $ 8,616 Operating lease liabilities (included in Accrued expenses and other liabilities 9,560
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases for the periods presented is as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 492 $ 971 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ — $ —
Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities at June 30, 2022, under lease agreements that had commenced as of or subsequent to January 1, 2022, are presented below (dollars in thousands). 2022 $ 981 2023 1,848 2024 1,381 2025 973 2026 1,026 Thereafter 6,025 Total minimum lease payments 12,234 Less: Amount representing interest (2,674 ) Lease liabilities $ 9,560

CAPITAL AND REGULATORY MATTERS

CAPITAL AND REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2022
CAPITAL AND REGULATORY MATTERS [Abstract]
Actual Capital Amounts and Ratios	The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands): Actual Minimum Required Under BASEL III Fully Phased-In To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30 , 2022 Total Capital to Risk Weighted Assets: Consolidated $ 546,768 17.32 % $ 331,456 10.50 % N/A N/A City Bank 439,026 13.91 % 331,407 10.50 % $ 315,625 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 431,435 13.67 % 268,322 8.50 % N/A N/A City Bank 399,567 12.66 % 268,282 8.50 % 252,500 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 386,435 12.24 % 220,971 7.00 % N/A N/A City Bank 399,567 12.66 % 220,938 7.00 % 205,157 6.50 % Tier I Capital to Average Assets: Consolidated 431,435 10.93 % 158,814 4.00 % N/A N/A City Bank 399,567 10.13 % 158,814 4.00 % 197,286 5.00 % 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 Equity Tier 1 to Risk Weighted Assets: 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 %

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2022
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 the periods indicated (dollars in thousands): Three Months Ended June 30, Location 2022 2021 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 166 $ 1,241 Interest rate lock commitments Net gain (loss) on sales of loans $ (940 ) $ (3,237 ) Six Months Ended June 30 Location 2022 2021 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ (926 ) $ 1,140 Interest rate lock commitments Net gain (loss) on sales of loans $ 117 $ (2,148 )
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 at the dates indicated (dollars in thousands): June 30, 2022 December 31, 2021 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 70,428 1,759 104,437 1,642 Total included in other assets $ 70,428 $ 1,759 $ 104,437 $ 1,642 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 62,899 $ 1,032 $ 93,120 $ 106 Interest rate lock commitments — — — — Total included in other liabilities $ 62,899 $ 1,032 $ 93,120 $ 106
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 at the dates indicated (dollars in thousands): June 30, 2022 December 31, 2021 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ 1,015 $ 6 $ 9,775 $ 429 Interest rate swaps related to state and municipal securities — — — — Included in other assets: Interest rate swaps related to fixed rate loans $ 8,583 $ 202 $ — $ — Interest rate swaps related to state and municipal securities 123,760 15,863 123,760 5,686
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 (Loss) as of the periods indicated (dollars in thousands): Three Months Ended June 30, Interest Rate Contracts Location 2022 2021 Interest rate swaps - fair value hedges Interest income $ (205 ) $ (172 ) Fair value hedge ineffectiveness Other noninterest expense $ 21 $ (53 ) Six Months Ended June 30 Interest Rate Contracts Location 2022 2021 Interest rate swaps - fair value hedges Interest income $ (341 ) $ (347 ) Fair value hedge ineffectiveness Other noninterest expense $ 171 $ 74

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2022
EARNINGS PER SHARE [Abstract]
Factors Used in Earnings Per Share Computation	The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income $ 15,883 $ 13,650 $ 30,161 $ 28,810 Weighted average common shares outstanding - basic 17,490,706 18,039,553 17,602,798 18,054,288 Effect of dilutive securities: Stock-based compensation awards 529,842 513,497 609,638 484,881 Weighted average common shares outstanding - diluted 18,020,548 18,553,050 18,212,436 18,539,169 Basic earnings per share $ 0.91 $ 0.76 $ 1.71 $ 1.60 Diluted earnings per share $ 0.88 $ 0.74 $ 1.66 $ 1.55

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2022
SEGMENT INFORMATION [Abstract]
Financial Results by Reportable Segment	Financial results by reportable segment as of the periods indicated are detailed below (dollars in thousands): Three Months Ended June 30 , 2022 Banking Insurance Consolidated Net interest income $ 37,105 $ — $ 37,105 Provision for loan losses — — — Noninterest income 17,364 1,471 18,835 Noninterest expense (34,891 ) (1,165 ) (36,056 ) Income before income taxes 19,578 306 19,884 Income tax (expense) benefit (3,936 ) (65 ) (4,001 ) Net income $ 15,642 $ 241 $ 15,883 Three Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 29,593 $ — $ 29,593 Provision for loan losses 2,007 — 2,007 Noninterest income 21,076 1,174 22,250 Noninterest expense (35,665 ) (1,113 ) (36,778 ) Income before income taxes 17,011 61 17,072 Income tax (expense) benefit (3,409 ) (13 ) (3,422 ) Net income $ 13,602 $ 48 $ 13,650 Six Months Ended June 30 , 2022 Banking Insurance Consolidated Net interest income $ 67,052 $ — $ 67,052 Provision for loan losses 2,085 — 2,085 Noninterest income 39,547 2,985 42,532 Noninterest expense (71,146 ) (2,834 ) (73,980 ) Income before income taxes 37,538 151 37,689 Income tax (expense) benefit (7,495 ) (33 ) (7,528 ) Net income $ 30,043 $ 118 $ 30,161 Six Months Ended June 30 , 2021 Banking Insurance Consolidated Net interest income $ 59,137 $ — $ 59,137 Provision for loan losses 1,918 — 1,918 Noninterest income 46,493 2,257 48,750 Noninterest expense (71,620 ) (2,215 ) (73,835 ) Income before income taxes 35,928 42 35,970 Income tax (expense) benefit (7,150 ) (10 ) (7,160 ) Net income $ 28,778 $ 32 $ 28,810

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2022
FAIR VALUE DISCLOSURES [Abstract]
Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis	The following table summarizes fair value measurements at the dates indicated (dollars in thousands): Level 1 Level 2 Level 3 Total June 30 , 2022 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 233,938 $ — $ 233,938 Mortgage-backed securities — 409,262 — 409,262 Collateralized mortgage obligations — 87,115 — 87,115 Asset-backed and other amortizing securities — 22,070 — 22,070 Other securities — 11,558 — 11,558 Loans held for sale (mandatory) — 26,448 — 26,448 Mortgage servicing rights — — 27,505 27,505 Asset derivatives — 17,824 — 17,824 Liability derivatives — (1,038 ) — (1,038 ) Assets measured at fair value on a non-recurring basis: Impaired loans — — 5,212 5,212 December 31, 2021 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: 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
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 the dates indicated (dollars in thousands): Fair Value Valuation Techniques Unobservable Inputs Range of Discounts June 30, 2022 Non-recurring: Impaired loans $ 5,212 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 27,505 Discounted cash flows Conditional prepayment rate 7.44 % Discount rate 9.13 % December 31, 2021 Non-recurring: Impaired loans $ 6,427 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 19,700 Discounted cash flows Conditional prepayment rate 12.35 % Discount rate 9.14 %
Estimated Fair Values, and Related Carrying Amounts of Financial Instruments	The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are as follows (dollars in thousands): Carrying Amount Level 1 Level 2 Level 3 Total Fair Value June 30 , 2022 Financial assets: Cash and cash equivalents $ 375,690 $ 375,690 $ — $ — $ 375,690 Loans held for investment, net 2,540,708 — — 2,530,038 2,530,038 Loans held for sale (best efforts) 11,501 — 11,846 — 11,846 Accrued interest receivable 12,216 — 12,216 — 12,216 Financial liabilities: Deposits $ 3,425,837 $ — $ 3,425,591 $ — $ 3,425,591 Accrued interest payable 2,075 — 2,075 — 2,075 Junior subordinated deferrable interest debentures 46,393 — 34,041 — 34,041 Subordinated debt securities 75,868 — 74,169 — 74,169 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2021 Financial assets: Cash and cash equivalents $ 486,821 $ 486,821 $ — $ — $ 486,821 Loans held for investment, net 2,395,479 — — 2,397,079 2,397,079 Loans held for sale (best efforts) 28,914 — 29,500 — 29,500 Accrued interest receivable 13,900 — 13,900 — 13,900 Financial liabilities: Deposits $ 3,341,222 $ 3,004,091 $ 339,797 $ — $ 3,343,888 Accrued interest payable 1,914 — 1,914 — 1,914 Junior subordinated deferrable interest debentures 46,393 — 45,690 — 45,690 Subordinated debt securities 75,775 — 77,939 — 77,939

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) Segment	Dec. 31, 2021 USD ($)
Loans [Abstract]
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status	90 days
Goodwill and Other Intangible Assets [Abstract]
Goodwill impairment loss	$ 0	$ 0
Leases [Abstract]
Right-of-use asset	8,616
Lease liability	9,560
Cumulative effect adjustment debit to retained earnings	$ 268,305	242,750
Segment Information [Abstract]
Number of reportable segments | Segment	2
Minimum [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loan to be specifically reviewed for impairment	$ 250
ASU 2016-02 [Member]
Leases [Abstract]
Right-of-use asset		9,400
Lease liability		10,300
City Bank [Member] | Bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	City Bank
Windmark Insurance Agency, Inc. ("Windmark") [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	Windmark Insurance Agency, Inc. (“Windmark”)
Ruidoso Retail, Inc. [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	Ruidoso Retail, Inc.
CB Provence, LLC [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CB Provence, LLC
CBT Brushy Creek, LLC [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CBT Brushy Creek, LLC
CBT Properties, LLC [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CBT Properties, LLC
South Plains Financial Capital Trusts (SPFCT) III-V [Member] | Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Equity Method Subsidiaries	South Plains Financial Capital Trusts (SPFCT) III-V
Substandard or Worse [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loan to be specifically reviewed for impairment	$ 250
Customer Relationships [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	5 years
Employment Agreements [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	5 years
Core Deposit Intangible [Member] | Maximum [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	10 years
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-02 [Member]
Leases [Abstract]
Cumulative effect adjustment debit to retained earnings		$ (717)

SECURITIES, Amortized Cost and

SECURITIES, Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available for sale [Abstract]
Amortized cost	$ 839,307	$ 712,895
Gross unrealized gains	938	16,440
Gross unrealized losses	(76,302)	(4,831)
Fair value	763,943	724,504
State and Municipal [Member]
Available for sale [Abstract]
Amortized cost	262,470	265,143
Gross unrealized gains	116	10,615
Gross unrealized losses	(28,648)	(86)
Fair value	233,938	275,672
Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	455,300	302,973
Gross unrealized gains	1	4,230
Gross unrealized losses	(46,039)	(4,114)
Fair value	409,262	303,089
Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Amortized cost	86,294	106,733
Gross unrealized gains	821	0
Gross unrealized losses	0	(413)
Fair value	87,115	106,320
Asset-backed and Other Amortizing Securities [Member]
Available for sale [Abstract]
Amortized cost	23,243	26,046
Gross unrealized gains	0	1,108
Gross unrealized losses	(1,173)	(218)
Fair value	22,070	26,936
Other Securities [Member]
Available for sale [Abstract]
Amortized cost	12,000	12,000
Gross unrealized gains	0	487
Gross unrealized losses	(442)	0
Fair value	$ 11,558	$ 12,487

SECURITIES, Amortized Cost an_2

SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available for Sale, Amortized Cost [Abstract]
Within 1 year	$ 951
After 1 year through 5 years	8,449
After 5 years through 10 years	22,147
After 10 years	242,923
Other	564,837
Amortized cost	839,307	$ 712,895
Available for Sale, Fair Value [Abstract]
Within 1 year	953
After 1 year through 5 years	8,470
After 5 years through 10 years	21,527
After 10 years	214,547
Other	518,446
Fair value	$ 763,943	$ 724,504

SECURITIES, Securities Transfer

SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) Security	Dec. 31, 2021 USD ($) 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 | $	$ 463.7	$ 474.5

SECURITIES, Securities with Unr

SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands	Jun. 30, 2022 USD ($) Security	Dec. 31, 2021 USD ($)
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 591,834	$ 185,597
12 months or more	75,097	64,764
Total	666,931	250,361
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	60,169	1,914
12 months or more	16,133	2,917
Total	$ 76,302	4,831
Number of securities with an unrealized loss | Security	160
State and Municipal [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 216,679	21,255
12 months or more	7,373	0
Total	224,052	21,255
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	27,194	86
12 months or more	1,454	0
Total	28,648	86
Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	341,527	56,398
12 months or more	67,724	64,764
Total	409,251	121,162
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	31,360	1,197
12 months or more	14,679	2,917
Total	46,039	4,114
Collateralized Mortgage Obligations [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	106,320
12 months or more	0	0
Total	0	106,320
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	413
12 months or more	0	0
Total	0	413
Asset-backed and Other Amortizing Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	22,070	1,624
12 months or more	0	0
Total	22,070	1,624
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	1,173	218
12 months or more	0	0
Total	1,173	218
Other Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	11,558	0
12 months or more	0	0
Total	11,558	0
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	442	0
12 months or more	0	0
Total	$ 442	$ 0

LOANS HELD FOR INVESTMENT, Summ

LOANS HELD FOR INVESTMENT, Summary of Loans Held for Investment by Category (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) Category	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	$ 2,580,493		$ 2,437,577
Allowance for loan losses	(39,785)	$ (39,649)	(42,098)	$ (42,963)	$ (45,019)	$ (45,553)
Loans held for investment, net	2,540,708		2,395,479
Commercial Real Estate [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	806,538		755,444
Allowance for loan losses	$ (13,903)	(14,621)	(17,245)	(17,288)	(19,020)	(18,962)
Commercial [Member]
Summary of Loans Held for Investment by Category [Abstract]
Number of sub-categories of loans | Category	2
Commercial [Member] | Specialized [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	$ 351,609		378,725
Allowance for loan losses	(3,355)	(3,275)	(4,363)	(4,823)	(5,458)	(5,760)
Commercial [Member] | General [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	483,964		460,024
Allowance for loan losses	(9,918)	(9,940)	(8,466)	(8,948)	(8,979)	(9,227)
Consumer [Member] | 1-4 Family Residential [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	407,881		387,690
Allowance for loan losses	(5,329)	(4,931)	(5,268)	(5,064)	(4,890)	(4,646)
Consumer [Member] | Auto Loans [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	299,703		240,719
Allowance for loan losses	(3,958)	(3,681)	(3,653)	(3,815)	(3,891)	(4,226)
Consumer [Member] | Other Consumer [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	78,124		68,113
Allowance for loan losses	(1,443)	(1,384)	(1,357)	(1,434)	(1,480)	(1,671)
Construction [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	152,674		146,862
Allowance for loan losses	$ (1,879)	$ (1,817)	$ (1,746)	$ (1,591)	$ (1,301)	$ (1,061)

LOANS HELD FOR INVESTMENT, Acti

LOANS HELD FOR INVESTMENT, Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
LOANS HELD FOR INVESTMENT [Abstract]
Ratio of allowance for loan losses to loans held for investment	1.54%		1.54%		1.73%
Allowance for Loan Losses [Roll Forward]
Beginning Balance	$ 39,649	$ 45,019	$ 42,098	$ 45,553
Provision for loan losses	0	(2,007)	(2,085)	(1,918)
Charge-offs	(553)	(297)	(1,210)	(1,138)
Recoveries	689	248	982	466
Ending Balance	39,785	42,963	39,785	42,963
Commercial Real Estate [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	14,621	19,020	17,245	18,962
Provision for loan losses	(1,111)	(1,732)	(3,760)	(1,674)
Charge-offs	0	0	0	0
Recoveries	393	0	418	0
Ending Balance	13,903	17,288	13,903	17,288
Commercial [Member] | Specialized [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	3,275	5,458	4,363	5,760
Provision for loan losses	71	(653)	(1,013)	(1,032)
Charge-offs	(68)	(5)	(106)	(5)
Recoveries	77	23	111	100
Ending Balance	3,355	4,823	3,355	4,823
Commercial [Member] | General [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	9,940	8,979	8,466	9,227
Provision for loan losses	(149)	(83)	1,510	(32)
Charge-offs	(8)	(34)	(315)	(377)
Recoveries	135	86	257	130
Ending Balance	9,918	8,948	9,918	8,948
Consumer [Member] | 1-4 Family Residential [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	4,931	4,890	5,268	4,646
Provision for loan losses	397	172	99	467
Charge-offs	0	0	(40)	(52)
Recoveries	1	2	2	3
Ending Balance	5,329	5,064	5,329	5,064
Consumer [Member] | Auto Loans [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	3,681	3,891	3,653	4,226
Provision for loan losses	314	13	382	(167)
Charge-offs	(69)	(139)	(155)	(327)
Recoveries	32	50	78	83
Ending Balance	3,958	3,815	3,958	3,815
Consumer [Member] | Other Consumer [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	1,384	1,480	1,357	1,671
Provision for loan losses	250	(12)	398	(6)
Charge-offs	(242)	(119)	(428)	(377)
Recoveries	51	85	116	146
Ending Balance	1,443	1,434	1,443	1,434
Construction [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	1,817	1,301	1,746	1,061
Provision for loan losses	228	288	299	526
Charge-offs	(166)	0	(166)	0
Recoveries	0	2	0	4
Ending Balance	$ 1,879	$ 1,591	$ 1,879	$ 1,591

LOANS HELD FOR INVESTMENT, Inve

LOANS HELD FOR INVESTMENT, Investment in loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Recorded Investment [Abstract]
Individually Evaluated	$ 5,567	$ 7,771
Collectively Evaluated	2,574,926	2,429,806
Allowance for Loan Losses [Abstract]
Individually Evaluated	355	1,344
Collectively Evaluated	39,430	40,754
Commercial Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	1,101
Collectively Evaluated	806,538	754,343
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	584
Collectively Evaluated	13,903	16,661
Commercial [Member] | Specialized [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	351,609	378,725
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	3,355	4,363
Commercial [Member] | General [Member]
Recorded Investment [Abstract]
Individually Evaluated	3,601	5,078
Collectively Evaluated	480,363	454,946
Allowance for Loan Losses [Abstract]
Individually Evaluated	189	585
Collectively Evaluated	9,729	7,881
Consumer [Member] | 1-4 Family Residential [Member]
Recorded Investment [Abstract]
Individually Evaluated	1,966	1,592
Collectively Evaluated	405,915	386,098
Allowance for Loan Losses [Abstract]
Individually Evaluated	166	175
Collectively Evaluated	5,163	5,093
Consumer [Member] | Auto Loans [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	299,703	240,719
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	3,958	3,653
Consumer [Member] | Other Consumer [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	78,124	68,113
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	1,443	1,357
Construction [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	152,674	146,862
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	$ 1,879	$ 1,746

LOANS HELD FOR INVESTMENT, Impa

LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	$ 5,567	$ 7,771
Recorded Investment [Abstract]
Recorded Investment With No Allowance	2,154	2,023
Recorded Investment With Allowance	3,413	5,748
Total Recorded Investment	5,567	7,771
Related Allowance	355	1,344
Average Recorded Investment	6,670	10,396
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	0	1,101
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	1,101
Total Recorded Investment	0	1,101
Related Allowance	0	584
Average Recorded Investment	551	3,687
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	0
Commercial [Member] | General [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	3,601	5,078
Recorded Investment [Abstract]
Recorded Investment With No Allowance	883	1,143
Recorded Investment With Allowance	2,718	3,935
Total Recorded Investment	3,601	5,078
Related Allowance	189	585
Average Recorded Investment	4,340	4,852
Consumer [Member] | 1-4 Family Residential [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	1,966	1,592
Recorded Investment [Abstract]
Recorded Investment With No Allowance	1,271	880
Recorded Investment With Allowance	695	712
Total Recorded Investment	1,966	1,592
Related Allowance	166	175
Average Recorded Investment	1,779	1,857
Consumer [Member] | Auto Loans [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Consumer [Member] | Other Consumer [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Construction [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

LOANS HELD FOR INVESTMENT, Age

LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) Point	Dec. 31, 2021 USD ($)
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 2,580,493	$ 2,437,577
Nonaccrual	$ 7,154	9,518
Number of points on a grading scale for loans | Point	13
30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 6,607	8,993
90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	735	1,080
Commercial Real Estate [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	806,538	755,444
Nonaccrual	0	1,101
Commercial Real Estate [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	840	393
Commercial Real Estate [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	23	45
Commercial [Member] | Specialized [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	351,609	378,725
Nonaccrual	119	156
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	424	265
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	0	20
Commercial [Member] | General [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	483,964	460,024
Nonaccrual	3,619	5,236
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	2,270	4,032
Commercial [Member] | General [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	2	97
Consumer [Member] | 1-4 Family Residential [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	407,881	387,690
Nonaccrual	3,131	2,815
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	1,453	2,496
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	580	903
Consumer [Member] | Auto Loans [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	299,703	240,719
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]
Loans	373	332
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	58	0
Consumer [Member] | Other Consumer [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	78,124	68,113
Nonaccrual	41	44
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	749	538
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	72	15
Construction [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	152,674	146,862
Nonaccrual	244	166
Construction [Member] | 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	498	937
Construction [Member] | 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 0	$ 0

LOANS HELD FOR INVESTMENT, Su_2

LOANS HELD FOR INVESTMENT, Summary of Internal Classifications of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loans by Internal Classifications [Abstract]
Loans	$ 2,580,493	$ 2,437,577
Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	2,503,944	2,371,284
Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	1,676
Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	76,549	64,617
Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial Real Estate [Member]
Loans by Internal Classifications [Abstract]
Loans	806,538	755,444
Commercial Real Estate [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	770,699	713,852
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	35,839	41,592
Commercial Real Estate [Member] | Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial [Member] | Specialized [Member]
Loans by Internal Classifications [Abstract]
Loans	351,609	378,725
Commercial [Member] | Specialized [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	350,490	372,797
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	1,119	5,928
Commercial [Member] | Specialized [Member] | Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial [Member] | General [Member]
Loans by Internal Classifications [Abstract]
Loans	483,964	460,024
Commercial [Member] | General [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	454,648	450,790
Commercial [Member] | General [Member] | Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	1,676
Commercial [Member] | General [Member] | Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	29,316	7,558
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	407,881	387,690
Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	398,860	379,458
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	9,021	8,232
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	299,703	240,719
Consumer [Member] | Auto Loans [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	299,508	239,869
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	195	850
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	78,124	68,113
Consumer [Member] | Other Consumer [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	77,892	67,822
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	232	291
Consumer [Member] | Other Consumer [Member] | Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Construction [Member]
Loans by Internal Classifications [Abstract]
Loans	152,674	146,862
Construction [Member] | Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	151,847	146,696
Construction [Member] | Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Construction [Member] | Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	827	166
Construction [Member] | Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	$ 0	$ 0

LOANS HELD FOR INVESTMENT, COVI

LOANS HELD FOR INVESTMENT, COVID-19 Related Deferral and Modification (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) Loan	Dec. 31, 2021 USD ($) Loan
CARES Act [Abstract]
TDRs	$ 0	$ 0
Covid-19 [Member]
CARES Act [Abstract]
Number of outstanding loans subject to deferral and modification agreements | Loan	0	3
Amount of outstanding loans subject to deferral and modification agreements		$ 15,900
Percentage of loans modified under CARES Act		0.65%

GOODWILL AND INTANGIBLES (Detai

GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Goodwill [Abstract]
Goodwill	$ 19,508	$ 19,508
Amortized Intangible Assets [Abstract]
Other intangible assets, net	5,112	5,895
Core Deposit Intangible [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	6,679	6,679
Less: Accumulated amortization	(2,955)	(2,469)
Other intangible assets, net	3,724	4,210
Other Intangibles [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	2,972	2,972
Less: Accumulated amortization	(1,584)	(1,287)
Other intangible assets, net	$ 1,388	$ 1,685

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Mortgage Servicing Rights Asset [Roll Forward]
Beginning balance	$ 25,425	$ 13,558	$ 19,700	$ 9,049	$ 9,049
Additions	930	2,770	2,180	5,992
Valuation adjustment	1,150	(351)	5,625	936
Ending balance	27,505	$ 15,977	27,505	$ 15,977	19,700
Mortgage Servicing Rights Other Information [Abstract]
Mortgage loans serviced for others	$ 2,054,975		$ 2,054,975		$ 1,953,095
Mortgage servicing rights asset as a percentage of serviced mortgage loans	1.34%		1.34%		1.01%
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract]
Weighted average constant prepayment rate			7.44%		12.35%
Weighted average discount rate			9.13%		9.14%
Weighted average life in years			7 years 11 months 26 days		6 years 10 days

BORROWING ARRANGEMENTS, Subordi

BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Sep. 29, 2020	Dec. 31, 2018
Subordinated Debt Securities [Abstract]
Subordinated debt securities	$ 75,868	$ 75,775
Subordinated Debt Securities Issued in December 2018 [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 26,500
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 12,400
Debt instrument, maturity date	Dec. 31, 2028
Debt instrument, 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 Securities Issued in December 2018 [Member] | Debt Securities One [Member] | Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 14,100
Debt instrument, maturity date	Dec. 31, 2030
Debt instrument, 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 Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt Securities Issued in September 29, 2020 [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount			$ 50,000
Debt issuance cost			$ 926
Debt instrument, maturity date	Sep. 30, 2030
Debt instrument, weighted average interest rate			4.50%
Debt instrument, period of fixed interest rate	5 years
Subordinated Debt Securities Issued in September 29, 2020 [Member] | SOFR [Member]
Subordinated Debt Securities [Abstract]
Term of variable rate	3 months
Basis spread on variable rate	4.38%
Subordinated Debt Securities Issued in September 29, 2020 [Member] | Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount	$ 76,500	76,500
Debt issuance cost	604	697
Subordinated debt securities	$ 75,900	$ 75,800

BORROWING ARRANGEMENTS, Notes P

BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank of Dallas [Member] | City Bank [Member]
Detail of Advances from FHLB [Abstract]
Original amount of advances	$ 0	$ 0

STOCK-BASED COMPENSATION, Equit

STOCK-BASED COMPENSATION, Equity Incentive Plan (Details) - 2019 Equity Incentive Plan [Member]	Mar. 06, 2019 shares
Equity Incentive Plan [Abstract]
Maximum aggregate number of shares of common stock that may be issued (in shares)	2,300,000
Maximum [Member]
Equity Incentive Plan [Abstract]
Annual increase in number of shares that may be issued	3%

STOCK-BASED COMPENSATION, Stock

STOCK-BASED COMPENSATION, Stock Options Activity (Details) - 2019 Equity Incentive Plan [Member] - Stock Option [Member] $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares) | shares	1,602,028
Granted (in shares) | shares	45,203
Exercised (in shares) | shares	(7,413)
Forfeited (in shares) | shares	(7,449)
Expired (in shares) | shares	(3,317)
Balance at end of period (in shares) | shares	1,629,052
Exercisable at end of period (in shares) | shares	1,199,739
Vested at end of period (in shares) | shares	1,199,739
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share) | $ / shares	$ 15.42
Granted (in dollars per share) | $ / shares	29.40
Exercised (in dollars per share) | $ / shares	18.58
Forfeited (in dollars per share) | $ / shares	19.30
Expired (in dollars per share) | $ / shares	18.05
Balance at end of period (in dollars per share) | $ / shares	15.78
Exercisable at end of period (in dollars per share) | $ / shares	14.09
Vested at end of period (in dollars per share) | $ / shares	$ 14.09
Weighted Average Remaining Contractual Life in Years [Abstract]
Options Outstanding	5 years 7 months 13 days
Exercisable at end of period	5 years 25 days
Vested at end of period	5 years 25 days
Aggregate Intrinsic Value [Abstract]
Outstanding at beginning of year | $	$ 13,975
Granted | $	0
Exercised | $	(41)
Forfeited | $	(36)
Expired | $	(20)
Balance at end of period | $	13,878
Exercisable at end of period | $	12,057
Vested at end of period | $	$ 12,057

STOCK-BASED COMPENSATION, Fair

STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected dividend yield	1.30%	1%
Weighted average grant date fair value (in dollars per share)	$ 10.54	$ 7.07
Minimum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	40.20%	41.20%
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	1.56%	0.52%
Maximum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	40.29%	41.32%
Expected term	6 years 3 months 18 days	6 years 2 months 12 days
Risk-free interest rate	1.95%	0.83%
2019 Equity Incentive Plan [Member]
Equity Incentive Plan [Abstract]
Intrinsic value of options exercised	$ 74	$ 17

STOCK-BASED COMPENSATION, Restr

STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	42,767
Granted (in shares)	74,891
Vested (in shares)	(24,877)
Forfeited (in shares)	(4,054)
Balance at ending of period (in shares)	88,727
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)	$ 19.35
Granted (in dollars per share)	28.78
Vested (in dollars per share)	19.60
Forfeited (in dollars per share)	28.18
Balance at ending of period (in dollars per share)	$ 26.84
Unrecognized compensation cost	$ 3,900
Weighted average remaining period, recognition of compensation cost	1 year 7 months 13 days
Fair value of restricted stock units vested	$ 488	$ 489
Minimum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period	1 year
Maximum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period	4 years

OFF-BALANCE-SHEET ACTIVITIES,_3

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
FHLB Letters of Credit [Abstract]
Letters of credit outstanding balance	$ 0	$ 0
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	637,554	542,338
Standby Letters of Credit [Member]
Financial instruments with off-balance-sheet risk [Abstract]
Financial instruments whose contract amounts represent credit risk outstanding	$ 13,970	$ 12,418

LEASES (Details)

LEASES (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2021 USD ($)
Lessee Disclosure [Abstract]
Finance leases	$ 0		$ 0
Balance Sheet Components of Leases [Abstract]
Operating lease right of use assets (included in Other assets)	$ 8,616		$ 8,616
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Operating lease liabilities (included in Accrued expenses and other liabilities)	$ 9,560		$ 9,560
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities		Accrued expenses and other liabilities
Operating lease costs, including short-term lease costs	$ 747	$ 577	$ 1,400	$ 1,200
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows used in operating leases	492		971
Right-of-use assets obtained in exchange for new lease obligations [Abstract]
Operating leases	$ 0		$ 0
Weighted average remaining lease term	9 years 10 months 17 days		9 years 10 months 17 days
Weighted average discount rate	4.63%		4.63%
Maturities of Operating Lease Liabilities [Abstract]
2022	$ 981		$ 981
2023	1,848		1,848
2024	1,381		1,381
2025	973		973
2026	1,026		1,026
Thereafter	6,025		6,025
Total minimum lease payments	12,234		12,234
Less: Amount representing interest	(2,674)		(2,674)
Lease liabilities	$ 9,560		$ 9,560
Additional operating leases that have not yet commenced | Lease	0		0
Maximum [Member]
Lessee Disclosure [Abstract]
Termination period for leases			1 year

CAPITAL AND REGULATORY MATTER_2

CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 546,768	$ 524,836
Actual, Ratio	0.1732	0.1840
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 331,456	$ 299,521
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.1050	0.1050
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 431,435	$ 413,322
Actual, Ratio	0.1367	0.1449
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 268,322	$ 242,469
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0850	0.0850
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 386,435	$ 368,322
Actual, Ratio	0.1224	0.1291
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 220,971	$ 199,681
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0700	0.0700
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 431,435	$ 413,322
Actual, Ratio	0.1093	0.1077
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 158,814	$ 154,592
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	$ 439,026	$ 425,748
Actual, Ratio	0.1391	0.1493
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 331,407	$ 299,465
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.1050	0.1050
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 315,625	$ 285,205
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.1000	0.1000
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 399,567	$ 390,015
Actual, Ratio	0.1266	0.1367
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 268,282	$ 242,424
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0850	0.0850
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 252,500	$ 228,164
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800	0.0800
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 399,567	$ 390,015
Actual, Ratio	0.1266	0.1367
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 220,938	$ 199,644
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0700	0.0700
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 205,157	$ 185,383
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0650	0.0650
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 399,567	$ 390,015
Actual, Ratio	0.1013	0.1016
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 158,814	$ 154,503
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 197,286	$ 191,859
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	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Interest Rate Swaps [Member] | Other Liabilities [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	$ 1,015		$ 1,015		$ 9,775
Derivative liability, fair value	6		6		429
Interest Rate Swaps [Member] | Other Assets [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	8,583		8,583		0
Derivative asset, fair value	202		202		0
Interest Rate Swaps [Member] | Interest Income [Member]
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract]
Interest rate swaps - fair value hedges	(205)	$ (172)	(341)	$ (347)
Interest Rate Swaps [Member] | Other Noninterest Expense [Member]
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract]
Fair value hedge ineffectiveness	21	$ (53)	171	$ 74
Cash Flow Swaps [Member] | Other Liabilities [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	0		0		0
Derivative liability, fair value	0		0		0
Cash Flow Swaps [Member] | Other Assets [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	123,760		123,760		123,760
Derivative asset, fair value	$ 15,863		$ 15,863		$ 5,686

DERIVATIVES, Mortgage Banking D

DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Other Assets [Member] | Interest Rate Swap [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral advanced to offset liability position	$ 1,100		$ 1,100
Other Liabilities [Member] | Interest Rate Swap [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral received to offset asset derivative positions	16,700		16,700
Mortgage Forward Contracts [Member] | Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral advanced to offset liability position	440		440
Mortgage Banking [Member] | Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	70,428		70,428		$ 104,437
Derivative asset, fair value	1,759		1,759		1,642
Mortgage Banking [Member] | Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	62,899		62,899		93,120
Derivative liability, fair value	1,032		1,032		106
Mortgage Banking [Member] | Forward Contracts [Member] | Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	0		0		0
Derivative asset, fair value	0		0		0
Mortgage Banking [Member] | Forward Contracts [Member] | Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	62,899		62,899		93,120
Derivative liability, fair value	1,032		1,032		106
Mortgage Banking [Member] | 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	166	$ 1,241	(926)	$ 1,140
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	70,428		70,428		104,437
Derivative asset, fair value	1,759		1,759		1,642
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	0		0		0
Derivative liability, fair value	0		0		$ 0
Mortgage Banking [Member] | 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	$ (940)	$ (3,237)	$ 117	$ (2,148)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Basic [Abstract]
Net income	$ 15,883	$ 13,650	$ 30,161	$ 28,810
Weighted average common shares outstanding - basic (in shares)	17,490,706	18,039,553	17,602,798	18,054,288
Effect of dilutive securities [Abstract]
Stock-based compensation awards (in shares)	529,842	513,497	609,638	484,881
Weighted average common shares outstanding - diluted (in shares)	18,020,548	18,553,050	18,212,436	18,539,169
Basic earnings per share (in dollars per share)	$ 0.91	$ 0.76	$ 1.71	$ 1.60
Diluted earnings per share (in dollars per share)	$ 0.88	$ 0.74	$ 1.66	$ 1.55

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Financial results by reportable segments [Abstract]
Net interest income	$ 37,105	$ 29,593	$ 67,052	$ 59,137
Provision for loan losses	0	2,007	2,085	1,918
Noninterest income	18,835	22,250	42,532	48,750
Noninterest expense	(36,056)	(36,778)	(73,980)	(73,835)
Income before income taxes	19,884	17,072	37,689	35,970
Income tax (expense) benefit	(4,001)	(3,422)	(7,528)	(7,160)
Net income	15,883	13,650	30,161	28,810
Banking [Member] | Operating Segments [Member]
Financial results by reportable segments [Abstract]
Net interest income	37,105	29,593	67,052	59,137
Provision for loan losses	0	2,007	2,085	1,918
Noninterest income	17,364	21,076	39,547	46,493
Noninterest expense	(34,891)	(35,665)	(71,146)	(71,620)
Income before income taxes	19,578	17,011	37,538	35,928
Income tax (expense) benefit	(3,936)	(3,409)	(7,495)	(7,150)
Net income	15,642	13,602	30,043	28,778
Insurance [Member] | Operating Segments [Member]
Financial results by reportable segments [Abstract]
Net interest income	0	0	0	0
Provision for loan losses	0	0	0	0
Noninterest income	1,471	1,174	2,985	2,257
Noninterest expense	(1,165)	(1,113)	(2,834)	(2,215)
Income before income taxes	306	61	151	42
Income tax (expense) benefit	(65)	(13)	(33)	(10)
Net income	$ 241	$ 48	$ 118	$ 32

FAIR VALUE DISCLOSURES, Assets

FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Securities available for sale [Abstract]
Securities available for sale	$ 763,943		$ 724,504
Mortgage servicing rights	27,505	$ 25,425	19,700	$ 15,977	$ 13,558	$ 9,049
State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	233,938		275,672
Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	409,262		303,089
Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	87,115		106,320
Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,558		12,487
Recurring [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	22,070		26,936
Loans held for sale (mandatory)	26,448		47,593
Mortgage servicing rights	27,505		19,700
Asset derivatives	17,824		7,328
Liability derivatives	(1,038)		(535)
Recurring [Member] | State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	233,938		275,672
Recurring [Member] | Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	409,262		303,089
Recurring [Member] | Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	87,115		106,320
Recurring [Member] | Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,558		12,487
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] | 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	22,070		26,936
Loans held for sale (mandatory)	26,448		47,593
Mortgage servicing rights	0		0
Asset derivatives	17,824		7,328
Liability derivatives	(1,038)		(535)
Recurring [Member] | Level 2 [Member] | State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	233,938		275,672
Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	409,262		303,089
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	87,115		106,320
Recurring [Member] | Level 2 [Member] | Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,558		12,487
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	27,505		19,700
Asset derivatives	0		0
Liability derivatives	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	5,212		6,427
Non-recurring [Member] | Level 1 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	0		0
Non-recurring [Member] | Level 2 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	0		0
Non-recurring [Member] | Level 3 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	$ 5,212		$ 6,427

FAIR VALUE DISCLOSURES, Quantit

FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 27,505	$ 25,425	$ 19,700	$ 15,977	$ 13,558	$ 9,049
Non-recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	5,212		6,427
Non-recurring [Member] | Third Party Appraisals or Inspections [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 5,212		$ 6,427
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		0.20
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
Recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 27,505		$ 19,700
Recurring [Member] | Discounted Cash Flows [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 27,505		$ 19,700
Recurring [Member] | Discounted Cash Flows [Member] | Conditional Prepayment Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, discounts	0.0744		0.1235
Recurring [Member] | Discounted Cash Flows [Member] | Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, discounts	0.0913		0.0914

FAIR VALUE DISCLOSURES, Estimat

FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	$ 375,690	$ 486,821
Loans held for investment, net	2,540,708	2,395,479
Loans held for sale (best efforts)	11,501	28,914
Accrued interest receivable	12,216	13,900
Financial liabilities [Abstract]
Deposits	3,425,837	3,341,222
Accrued interest payable	2,075	1,914
Junior subordinated deferrable interest debentures	46,393	46,393
Subordinated debt securities	75,868	75,775
Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	375,690	486,821
Loans held for investment, net	2,530,038	2,397,079
Loans held for sale (best efforts)	11,846	29,500
Accrued interest receivable	12,216	13,900
Financial liabilities [Abstract]
Deposits	3,425,591	3,343,888
Accrued interest payable	2,075	1,914
Junior subordinated deferrable interest debentures	34,041	45,690
Subordinated debt securities	74,169	77,939
Level 1 [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	375,690	486,821
Loans held for investment, net	0	0
Loans held for sale (best efforts)	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	3,004,091
Accrued interest payable	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 held for investment, net	0	0
Loans held for sale (best efforts)	11,846	29,500
Accrued interest receivable	12,216	13,900
Financial liabilities [Abstract]
Deposits	3,425,591	339,797
Accrued interest payable	2,075	1,914
Junior subordinated deferrable interest debentures	34,041	45,690
Subordinated debt securities	74,169	77,939
Level 3 [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Loans held for investment, net	2,530,038	2,397,079
Loans held for sale (best efforts)	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	0
Accrued interest payable	0	0
Junior subordinated deferrable interest debentures	0	0
Subordinated debt securities	$ 0	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended		6 Months Ended
	Jul. 21, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Dividends [Abstract]
Dividends declared per share (in dollars per share)		$ 0.11	$ 0.07	$ 0.22	$ 0.12
Subsequent Event [Member]
Dividends [Abstract]
Dividends declared date	Jul. 21, 2022
Dividends declared per share (in dollars per share)	$ 0.12
Dividends payable date	Aug. 15, 2022
Dividends record date	Aug. 01, 2022