Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
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, $1.00 par value per share | |
Trading Symbol | SPFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,913,686 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 64,497 | $ 61,613 |
Interest-bearing deposits in banks | 231,084 | 173,270 |
Cash and cash equivalents | 295,581 | 234,883 |
Securities available for sale | 628,093 | 701,711 |
Loans held for sale ($15,516 and $10,038 at fair value at June 30, 2023 and December 31, 2022, respectively) | 22,158 | 30,403 |
Loans held for investment | 2,979,063 | 2,748,081 |
Allowance for credit losses on loans | (43,137) | (39,288) |
Loans held for investment, net | 2,935,926 | 2,708,793 |
Accrued interest receivable | 15,917 | 16,432 |
Premises and equipment, net | 56,416 | 56,337 |
Bank-owned life insurance | 73,804 | 73,174 |
Goodwill | 19,315 | 19,508 |
Intangible assets, net | 2,834 | 4,349 |
Mortgage servicing rights | 26,658 | 27,474 |
Deferred tax asset, net | 22,359 | 22,818 |
Other assets | 51,068 | 48,181 |
Total assets | 4,150,129 | 3,944,063 |
Deposits: | ||
Noninterest-bearing | 1,100,767 | 1,150,488 |
Interest-bearing | 2,473,755 | 2,255,942 |
Total deposits | 3,574,522 | 3,406,430 |
Accrued expenses and other liabilities | 61,131 | 58,265 |
Subordinated debt | 76,054 | 75,961 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Total liabilities | 3,758,100 | 3,587,049 |
Stockholders' equity: | ||
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 16,952,072 and 17,027,197 issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 16,952 | 17,027 |
Additional paid-in capital | 111,133 | 112,834 |
Retained earnings | 325,772 | 292,261 |
Accumulated other comprehensive loss | (61,828) | (65,108) |
Total stockholders' equity | 392,029 | 357,014 |
Total liabilities and stockholders' equity | $ 4,150,129 | $ 3,944,063 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Loans held for sale, fair value | $ 15,516 | $ 10,038 |
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) | 16,952,072 | 17,027,197 |
Common stock, shares outstanding (in shares) | 16,952,072 | 17,027,197 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Loans, including fees | $ 42,864 | $ 35,419 | $ 82,461 | $ 64,797 |
Securities: | ||||
Taxable | 5,365 | 3,542 | 10,605 | 5,918 |
Non-taxable | 1,108 | 1,137 | 2,224 | 2,281 |
Federal funds sold and interest-bearing deposits in banks | 1,484 | 654 | 2,979 | 836 |
Total interest income | 50,821 | 40,752 | 98,269 | 73,832 |
Interest expense: | ||||
Deposits | 14,433 | 2,317 | 25,803 | 4,207 |
Notes payable & other borrowings | 5 | 0 | 5 | 0 |
Subordinated debt | 1,013 | 1,013 | 2,025 | 2,025 |
Junior subordinated deferrable interest debentures | 789 | 317 | 1,540 | 548 |
Total interest expense | 16,240 | 3,647 | 29,373 | 6,780 |
Net interest income | 34,581 | 37,105 | 68,896 | 67,052 |
Provision for credit losses | 3,700 | 0 | 4,710 | (2,085) |
Net interest income, after provision for credit losses | 30,881 | 37,105 | 64,186 | 69,137 |
Noninterest income: | ||||
Service charges on deposit accounts | 1,745 | 1,612 | 3,446 | 3,385 |
Income from insurance activities | 37 | 1,577 | 1,448 | 3,147 |
Net gain on sales of loans | 3,528 | 5,979 | 6,446 | 13,472 |
Bank card services and interchange fees | 4,043 | 3,478 | 6,999 | 6,700 |
Other mortgage banking income | 1,731 | 2,690 | 1,098 | 8,834 |
Investment commissions | 420 | 466 | 809 | 1,012 |
Fiduciary fees | 597 | 635 | 1,197 | 1,247 |
Gain on sale of subsidiary | 33,488 | 0 | 33,488 | 0 |
Other | 1,523 | 2,398 | 2,872 | 4,735 |
Total noninterest income | 47,112 | 18,835 | 57,803 | 42,532 |
Noninterest expense: | ||||
Salaries and employee benefits | 23,437 | 21,990 | 42,691 | 44,693 |
Occupancy and equipment, net | 4,303 | 4,033 | 8,135 | 7,770 |
Professional services | 1,716 | 2,647 | 3,364 | 5,272 |
Marketing and development | 784 | 758 | 1,720 | 1,478 |
IT and data services | 888 | 941 | 1,752 | 1,994 |
Bank card expenses | 1,316 | 1,328 | 2,668 | 2,651 |
Appraisal expenses | 301 | 508 | 579 | 1,073 |
Realized loss on sale of securities | 3,409 | 0 | 3,409 | 0 |
Other | 4,345 | 3,851 | 8,542 | 9,049 |
Total noninterest expense | 40,499 | 36,056 | 72,860 | 73,980 |
Income before income taxes | 37,494 | 19,884 | 49,129 | 37,689 |
Income tax expense | 7,811 | 4,001 | 10,202 | 7,528 |
Net income | $ 29,683 | $ 15,883 | $ 38,927 | $ 30,161 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.74 | $ 0.91 | $ 2.28 | $ 1.71 |
Diluted (in dollars per share) | $ 1.71 | $ 0.88 | $ 2.23 | $ 1.66 |
Net income | $ 29,683 | $ 15,883 | $ 38,927 | $ 30,161 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available for sale | (7,109) | (42,097) | 1,514 | (86,974) |
Less: Change in fair value on hedged state and municipal securities | 1,866 | 3,450 | (771) | 10,349 |
Reclassification adjustment for loss on sale of securities | 3,409 | 0 | 3,409 | 0 |
Tax effect | 385 | 8,116 | (872) | 16,091 |
Other comprehensive income (loss) | (1,449) | (30,531) | 3,280 | (60,534) |
Comprehensive income (loss) | $ 28,234 | $ (14,648) | $ 42,207 | $ (30,373) |
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, 2021 | $ 17,760 | $ 133,215 | $ 242,750 | $ 13,702 | $ 407,427 | $ 0 | $ 0 | $ (717) | $ 0 | $ (717) |
Balance (in shares) at Dec. 31, 2021 | 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 | |||||||||
Balance at Mar. 31, 2022 | $ 17,673 | 130,618 | 255,078 | (16,301) | 387,068 | 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 | |||||||||
Balance at Dec. 31, 2022 | $ 17,027 | 112,834 | 292,261 | (65,108) | $ 357,014 | |||||
Balance (ASU 2016-13 [Member]) at Dec. 31, 2022 | $ 0 | $ 0 | $ (997) | $ 0 | $ (997) | |||||
Balance (in shares) at Dec. 31, 2022 | 17,027,197 | 17,027,197 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 0 | 0 | 38,927 | 0 | $ 38,927 | |||||
Cash dividends declared | 0 | 0 | (4,419) | 0 | (4,419) | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | 3,280 | 3,280 | |||||
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes | $ 38 | (380) | 0 | 0 | (342) | |||||
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) | 37,829 | |||||||||
Repurchases of common stock | $ (113) | (2,435) | 0 | 0 | (2,548) | |||||
Repurchases of common stock (in shares) | (112,954) | |||||||||
Stock-based compensation | $ 0 | 1,114 | 0 | 0 | 1,114 | |||||
Balance at Jun. 30, 2023 | $ 16,952 | 111,133 | 325,772 | (61,828) | $ 392,029 | |||||
Balance (in shares) at Jun. 30, 2023 | 16,952,072 | 16,952,072 | ||||||||
Balance at Mar. 31, 2023 | $ 17,062 | 112,981 | 298,300 | (60,379) | $ 367,964 | |||||
Balance (in shares) at Mar. 31, 2023 | 17,062,572 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 0 | 0 | 29,683 | 0 | 29,683 | |||||
Cash dividends declared | 0 | 0 | (2,211) | 0 | (2,211) | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | (1,449) | (1,449) | |||||
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes | $ 3 | (3) | 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) | 2,454 | |||||||||
Repurchases of common stock | $ (113) | (2,435) | 0 | 0 | (2,548) | |||||
Repurchases of common stock (in shares) | (112,954) | |||||||||
Stock-based compensation | $ 0 | 590 | 0 | 0 | 590 | |||||
Balance at Jun. 30, 2023 | $ 16,952 | $ 111,133 | $ 325,772 | $ (61,828) | $ 392,029 | |||||
Balance (in shares) at Jun. 30, 2023 | 16,952,072 | 16,952,072 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||||
Cash dividends, common (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 |
Exercise of employee stock options, shares for cashless exercise (in shares) | 10,567 | 24,140 | 4,824 | |
Exercise of employee stock options, shares for taxes (in shares) | 272 | 13,892 | 7,129 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 38,927 | $ 30,161 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for credit losses | 4,710 | (2,085) |
Provision for foreclosed asset losses | 97 | 0 |
Depreciation and amortization | 3,240 | 3,508 |
Accretion and amortization | 1,980 | 2,077 |
Other gains, net | (212) | (59) |
Gain on sale of subsidiary | (33,488) | 0 |
Loss on sale of securities | 3,409 | 0 |
Net gain on sales of loans | (6,446) | (13,472) |
Proceeds from sales of loans held for sale | 233,170 | 492,086 |
Loans originated for sale | (219,212) | (442,236) |
Deferred income tax expense (benefit) | (148) | 2,411 |
Earnings on bank-owned life insurance | (630) | (596) |
Stock-based compensation | 1,114 | 1,177 |
Change in valuation of mortgage servicing rights | 1,550 | (5,625) |
Net change in: | ||
Accrued interest receivable and other assets | (4,759) | 1,042 |
Accrued expenses and other liabilities | 2,423 | 21,058 |
Net cash provided by operating activities | 25,725 | 89,447 |
Activity in securities available for sale: | ||
Purchases | 0 | (176,713) |
Sales | 52,828 | 0 |
Maturities, prepayments, and calls | 20,418 | 48,318 |
Loan originations and principal collections, net | (232,692) | (143,497) |
Purchases of premises and equipment | (3,452) | (1,998) |
Proceeds from sales of premises and equipment | 896 | 239 |
Proceeds from sale of subsidiary | 35,500 | 0 |
Proceeds from sales of foreclosed assets | 692 | 1,750 |
Net cash used in investing activities | (125,810) | (271,901) |
Cash flows from financing activities: | ||
Net change in deposits | 168,092 | 84,615 |
Payments to tax authorities for stock-based compensation | (342) | (195) |
Cash dividends paid on common stock | (4,419) | (3,889) |
Payments to repurchase common stock | (2,548) | (9,208) |
Net cash provided by financing activities | 160,783 | 71,323 |
Net change in cash and cash equivalents | 60,698 | (111,131) |
Beginning cash and cash equivalents | 234,883 | 486,821 |
Ending cash and cash equivalents | 295,581 | 375,690 |
Supplemental disclosures of cash flow information: | ||
Interest paid on deposits and borrowed funds | 28,552 | 6,619 |
Income taxes paid | 1,082 | 2,776 |
Supplemental schedule of noncash activities: | ||
Loans transferred to foreclosed assets | 697 | 353 |
Premises and equipment transferred to other real estate owned | 172 | 0 |
Additions to mortgage servicing rights | $ 734 | $ 2,180 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The following were subsidiaries of SPFI as of June 30, 2023: Wholly-Owned, Consolidated Subsidiaries: City Bank 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 On April 1, 2023, SPFI entered into a Securities Purchase Agreement (“Agreement”) with Alliant Insurance Services, Inc. (“Alliant”), providing for the sale of Windmark Insurance Agency, Inc. (“Windmark”) through a sale of all of the outstanding shares of capital stock of Windmark to Alliant. The transaction was consummated on April 1, 2023. Pursuant to the terms and subject to the conditions of the Agreement, SPFI received an aggregate purchase price of $35.5 million in exchange for Windmark’s common shares, representing a pre-tax gain of $33.5 million. The purchase price may be increased by the net amount of Windmark working capital as provided in the Agreement. This transaction did not meet the criteria for discontinued operations reporting. 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, 2023 (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, 2022. 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 (“ACL”) Accounting Changes 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 and held to maturity debt securities. The CECL model also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in sales type and direct financing leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the accounting for securities available for sale. One such change is to require credit losses to be presented as an allowance rather than as a write-down on securities available for sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted the CECL model effective January 1, 2023 using the modified retrospective approach, as a result, the Company recognized a one-time, after tax cumulative effect debit adjustment of $997 thousand to retained earnings, increased the ACL for loans by approximately $100 thousand and increased the ACL for off-balance sheet credit exposures by approximately $1.2 million. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company made the following policy elections related to the adoption of the CECL model. First, accrued interest will be written off against interest income when financial assets are placed into nonaccrual status. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the ACL. Accrued interest receivable is presented in a separate line item in the Consolidated Balance Sheets. Second, the fair value of collateral practical expedient has been elected on certain loans in determining the ACL, for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. The impact on the ACL resulting from the adoption of the CECL model is shown below. (Dollars in thousand January 1, 2023 Pre-Adoption Impact of Adoption Post-Adoption Commercial real estate $ 13,029 $ 827 $ 13,856 Commercial – specialized 3,425 33 3,458 Commercial - general 9,215 (2,574 ) 6,641 Consumer: 1 4 6,194 1,700 7,894 Auto loans 3,926 (332 ) 3,594 Other consumer 1,376 (235 ) 1,141 Construction 2,123 683 2,806 Total allowance for credit losses on loans $ 39,288 $ 102 $ 39,390 Allowance for credit losses for off-balance sheet exposures $ 580 $ 1,160 $ 1,740 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan modifications by creditors for borrowers experiencing financial distress. This ASU defines types of modifications as principal forgiveness, interest rate reduction, other than insignificant payment delays, or a term extension. In addition, the ASU requires disclosure of current-period gross charge-offs, by year of origination, in the vintage disclosure. The Company adopted the provisions of ASU 2022-02 as of January 1, 2023 on a prospective basis. The adoption of this amendment did not have a material impact on the consolidated financial statements. In connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections. 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 carried at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss), net of tax. 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. Gains and losses on sales are recorded on the trade date, are derived from the amortized cost of the security sold and are determined using the specific identification method. A security is placed on nonaccrual status if principal or interest has been in default for a period of 90 days or more, or if full payment of principal and interest is not expected. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of AFS securities and report the accrued interest in accrued interest receivable in the Consolidated Balance Sheets. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income. ACL (AFS Securities) – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss). Changes in the ACL are recorded as provision for credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest is excluded from the estimate of credit losses. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost. Amortized cost is the outstanding unpaid principal balances, net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on the Consolidated Balance Sheets. Accrued interest receivable is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the straight-line method, which is not materially different from the effective interest method required by GAAP 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. ACL (Loans) – The ACL is a valuation account established by management as an estimate to cover expected credit losses through a provision for credit losses charged to earnings. Credit losses on loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Expected losses are calculated using comparable and quantifiable information from both internal and external sources about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments. The ACL is evaluated on a quarterly basis by management. The Company applied a dual credit risk rating (“DCRR”) methodology that estimates each loan’s probability of default and loss given default to calculate the expected credit loss to non-analyzed loans at January 1 and June 30, 2023. The DCRR process quantifies the expected credit loss at the loan level for the entire loan portfolio. Loan grades are assigned by a customized scorecard that risk rates each loan based on multiple probability of default and loss given default elements to measure the credit risk of the loan portfolio. The ACL estimate incorporates the Company’s DCRR loan level risk rating methodology and the expected default rate frequency term structure to derive loan level life of loan estimates of credit losses for every loan in the portfolio. The estimated credit loss for each loan is adjusted based on its one-year through the cycle estimate of expected credit loss to a life of loan measurement that reflects current conditions and reasonable and supportable forecasts. The life of loan expected loss is determined using the contractual weighted average life of the loan adjusted for prepayments. Prepayment speeds are determined by grouping the loans into pools based on segments and risk rating. After the life of loan expected losses are determined, they are adjusted to reflect the Company’s reasonable and supportable economic forecast over a selected range of one typically a one-year forecast period is used. MEV’s considered in the analysis consist of data gathered from the St. Louis Federal Reserve Research Database (“FRED”), such as, federal funds rate, 10-year treasury rates, 30-year mortgage rates, crude oil prices, consumer price index, housing price index, unemployment rates, housing starts, gross domestic product, and disposable personal income. These regression models are applied to the Company’s economic forecast to determine the corresponding net charge-off rates. The projected net charge-off rates for the given economic scenario are used to adjust the life of loan expected losses. Qualitative adjustments are also made to ACL results for additional risk factors that are relevant in assessing the expected credit losses within our loan segments. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management’s estimate of the ACL by a calculated percentage based upon the estimated level of risk within a particular segment. Q-Factor risk decisions consider concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, and other factors related to credit administration, such as borrower’s risk rating and the potential effect of delayed credit score migrations. Management quantifiably identifies segment percentage Q-Factor adjustments using a scorecard risk rating system scaled to historical loss experience within a segment and management’s perceived risk for that particular segment. While management uses available information to recognize credit 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 credit losses on loans. Such agencies may require the bank subsidiary to recognize additional credit 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 credit losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Loans that exhibit characteristics different from their pool characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective ACL evaluation. When management determines that foreclosure is probable, or if certain of these loans are considered to be collateral dependent with the borrower experiencing financial difficulty, the Company elects the fair value of collateral practical expedient, whereby the allowance is calculated as the amount by which the amortized cost exceeds the fair value of collateral, less costs to sell. ACL (Off-Balance Sheet Credit Exposures) – The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposures is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Utilization rates are determined based on a two-year rolling average of historical usage. Expected loss rates for all pass rated loans are used to determine the ACL for off-balance sheet credit exposures. The ACL for off-balance sheet credit exposures is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Acquired Loans – Loans that the Company acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related ACL. The fair value of the acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest, adjusted for estimated prepayments and credit losses. In accordance with Topic 326, the fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. In addition, the Company also records an ACL on each acquired loan. Any acquired loans the Company determines have evidence of a more than insignificant deterioration in credit quality since origination, are considered to be purchase credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (i) non-accrual status; (ii) risk rating, (iii) watchlist credits; and (iv) delinquency status. An ACL is determined using the same methodology as other individually evaluated loans. The sum of the PCD loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through provision for credit losses. Goodwill and Other Intangible Assets – no 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. Earnings per Share – Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. 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 consolidated financial statements. Segment Information – Subsequent Events – The Company has evaluated subsequent events and transactions from June 30,2023 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, 2023 | |
SECURITIES [Abstract] | |
SECURITIES | 2. SECURITIES The amortized cost, related gross unrealized gains and losses, : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30 , 2023 Available for sale: State and municipal $ 206,835 $ 2 $ (26,442 ) $ — $ 180,395 Residential mortgage 366,207 — (56,020 ) — 310,187 Commercial mortgage-backed securities 48,533 — (7,315 ) — 41,218 Commercial collateralized 72,823 — (5,228 ) — 67,595 Asset-backed and other amortizing securities 19,529 — (1,744 ) — 17,785 Other securities 12,000 — (1,087 ) — 10,913 $ 725,927 $ 2 $ (97,836 ) $ — $ 628,093 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2022 Available for sale: State and municipal $ 259,429 $ 27 $ (34,401 ) $ 225,055 Residential mortgage 386,783 — (57,938 ) 328,845 Commercial mortgage-backed securities 49,161 — (7,194 ) 41,967 Commercial collateralized 76,189 — (551 ) 75,638 Asset-backed and other amortizing securities 20,907 — (1,813 ) 19,094 Other securities 12,000 — (888 ) 11,112 $ 804,469 $ 27 $ (102,785 ) $ 701,711 The amortized cost and estimated fair value of securities at June 30, 2023 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 $ 2,628 $ 2,629 After 1 year through 5 years 5,387 5,119 After 5 years through 10 years 17,405 16,179 After 10 years 193,415 167,381 Other 507,092 436,785 $ 725,927 $ 628,093 At both June 30, 2023 and December 31, 2022, the Company had 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 $424.1 million and $464.1 million at June 30, 2023 and December 31, 2022, 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 for which an allowance for credit losses has not been recorded (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 , 2023 State and municipal $ 5,903 $ 92 $ 171,217 $ 26,350 $ 177,120 $ 26,442 Residential mortgage-backed securities — — 310,178 56,020 310,178 56,020 Commercial mortgage-backed securities — — 41,218 7,315 41,218 7,315 Commercial collateralized mortgage obligations 67,595 5,228 — — 67,595 5,228 Asset-backed and other amortizing securities — — 17,785 1,744 17,785 1,744 Other securities 3,405 95 7,508 992 10,913 1,087 $ 76,903 $ 5,415 $ 547,906 $ 92,421 $ 624,809 $ 97,836 December 31 , 2022 State and municipal $ 162,746 $ 23,538 $ 57,675 $ 10,863 $ 220,421 $ 34,401 Residential mortgage-backed securities 220,752 27,967 108,080 29,971 328,832 57,938 Commercial mortgage-backed securities 41,966 7,194 — — 41,966 7,194 Commercial collateralized mortgage obligations 75,638 551 — — 75,638 551 Asset-backed and other amortizing securities 19,094 1,813 — — 19,094 1,813 Other securities 11,112 888 — — 11,112 888 $ 531,308 $ 61,951 $ 165,755 $ 40,834 $ 697,063 $ 102,785 The Company had 147 securities with an unrealized loss at June 30, 2023, generally due to increases in market rates. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2023, management believes the unrealized loss positions detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL or losses have been recognized or realized in the consolidated financial statements . |
LOANS HELD FOR INVESTMENT
LOANS HELD FOR INVESTMENT | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Commercial real estate $ 1,006,909 $ 919,358 Commercial - specialized 355,252 327,513 Commercial - general 551,096 484,783 Consumer: 1-4 family residential 522,472 460,124 Auto loans 318,126 321,476 Other consumer 79,795 81,308 Construction 145,413 153,519 2,979,063 2,748,081 Allowance for credit losses on loans (43,137 ) (39,288 ) Loans, net $ 2,935,926 $ 2,708,793 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 Real Estate Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations, as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial real estate loans are underwritten primarily based on projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are diversified by type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Commercial – General and Specialized Performance of these loans is subject to operating and cash flow results of the borrower, with risk in the volatility of operating results for particular industries. Consumer Loans to consumers include 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. The Company utilizes a computer-based credit scoring analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. The Company generally requires mortgage title insurance and hazard insurance on 1-4 family residential loans. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral. Construction Loans for residential construction are for single-family properties to developers, builders, or end-users. These loans are underwritten based on estimates of costs and completed value of the project. Funds are advanced based on estimated percentage of completion for the project. Performance of these loans is affected by economic conditions as well as the ability to control costs of the projects. The ACL for loans was $43.1 million at June 30, 2023, compared to $39.3 million at December 31, 2022. The ACL for loans to loans held for investment was 1.45% at June 30, 2023 and 1.43% at December 31, 2022. The following table details the activity in the ACL for loans 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 Credit Losses (1) Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2023 Commercial real estate $ 13,381 $ 1,120 $ — $ — $ 14,501 Commercial - specialized 3,510 626 — 18 4,154 Commercial - general 6,267 1,478 (169 ) 61 7,637 Consumer: 1-4 family residential 8,531 318 — 2 8,851 Auto loans 3,714 332 (157 ) 11 3,900 Other consumer 1,101 155 (229 ) 80 1,107 Construction 3,056 (69 ) — — 2,987 $ 39,560 $ 3,960 $ (555 ) $ 172 $ 43,137 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 (1) The $3.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.0 million provision for credit losses on loans and a $(260) thousand provision for off-balance sheet credit exposures for the three months ended June 30, 2023. Beginning Balance Impact of CECL Adoption Provision for Credit Losses (1) Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2023 Commercial real estate $ 13,029 $ 827 $ 645 $ — $ — $ 14,501 Commercial - specialized 3,425 33 616 — 80 4,154 Commercial - general 9,215 (2,574 ) 1,242 (369 ) 123 7,637 Consumer: 1-4 family residential 6,194 1,700 954 — 3 8,851 Auto loans 3,926 (332 ) 630 (411 ) 87 3,900 Other consumer 1,376 (235 ) 220 (442 ) 188 1,107 Construction 2,123 683 453 (272 ) — 2,987 $ 39,288 $ 102 $ 4,760 $ (1,494 ) $ 481 $ 43,137 (1) The $4.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.8 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the six months ended June 30, 2023. Beginning Balance Provision for Credit 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 During the three and six months ended June 30, 2023, the provision for credit losses on loans of $4.0 million and $4.8 million, respectively, reflected a build in the allowance driven primarily by organic loan growth experienced over the first six months of 2023. The changes in the ACL for these periods were also impacted by net charge-offs of $1.0 million during the first six months of 2023 and an increase of $1.3 million in the ACL for credit losses on loans individually analyzed. The following table shows the Company’s amortized cost in loans and related ACL for collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the date indicated (dollars in thousands). Real Estate Equipment Accounts Receivable Total Loans Individually Evaluated Total ACL for Individually Evaluated Loans June 30 , 2023 Commercial real estate $ 175 $ 525 $ 30 $ 730 $ — Commercial - specialized — — — — — Commercial - general 8,179 9,724 162 18,065 1,362 Consumer: 1-4 family residential 747 1 — 748 83 Auto loans — — — — — Other consumer — — — — — Construction — — — — — $ 9,101 $ 10,250 $ 192 $ 19,543 $ 1,445 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the date indicated (dollars in thousands): Recorded Investment ACL for Loans Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated December 31 , 2022 Commercial real estate $ — $ 919,358 $ — $ 13,029 Commercial - specialized — 327,513 — 3,425 Commercial - general 3,350 481,433 22 9,193 Consumer: 1-4 family residential 742 459,382 18 6,176 Auto loans — 321,476 — 3,926 Other consumer — 81,308 — 1,376 Construction 1,014 152,505 245 1,878 $ 5,106 $ 2,742,975 $ 285 $ 39,003 Impaired loan information at the date 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 December 31 , 2022 Commercial real estate $ — $ — $ — $ — $ — $ 551 Commercial - specialized — — — — — — Commercial - general 3,350 799 2,551 3,350 22 4,214 Consumer: 1-4 family 742 486 256 742 18 1,167 Auto loans — — — — — — Other consumer — — — — — — Construction 1,014 686 328 1,014 245 507 $ 5,106 $ 1,971 $ 3,135 $ 5,106 $ 285 $ 6,439 All impaired loans $250 thousand and greater were specifically evaluated for impairment at December 31, 2022. Interest income recognized using a cash-basis method on individually analyzed loans for the three and six months ended June 30, 2023 was not significant. Additional funds committed to be advanced on individually analyzed 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 Nonaccrual with no ACL June 30 , 2023 Commercial real estate $ 65 $ 91 $ — $ — Commercial - specialized 230 11 249 — Commercial - general 335 3,352 14,078 — Consumer: 1-4 Family residential 1,829 630 1,977 261 Auto loans 971 145 — — Other consumer 754 249 34 — Construction 611 — 223 — $ 4,795 $ 4,478 $ 16,561 $ 261 30-89 Days Past Due 90 Days or More Past Due Nonaccrual December 31 , 2022 Commercial real estate $ 342 $ 27 $ — Commercial - specialized 25 13 38 Commercial - general 1,451 60 3,357 Consumer: 1-4 Family residential 1,389 1,653 1,356 Auto loans 707 85 — Other consumer 1,487 149 37 Construction 550 — 1,014 $ 5,951 $ 1,987 $ 5,802 The Company has elected the fair value option for recording residential mortgage loans held for sale (mandatory) in accordance with GAAP. The Company had no nonaccrual mortgage loans held for sale (mandatory) at June 30, 2023, and December 31, 2022. Credit Quality Indicators 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. These risk ratings are assigned based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. 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. In connection with the review of the Company’s loan portfolio, management considers risk elements attributable to particular loan type or categories in assessing the quality of individual loans. The list of loans to be analyzed for individual evaluation consists of non-accrual loans over $250 thousand with direct exposure. Interest income recognized using a cash-basis method on non-accrual loans for the three and six months ended June 30, 2023 was not significant. In addition, the Company closely monitors substandard accruing loans over $1 million with direct exposure, and past due accruing loans over $100 thousand for possible individual evaluation. All other loans will be evaluated collectively in designated pools unless a loss exposure has been identified. The following table reflects the amortized cost basis in loans by credit quality indicator and origination year at June 30, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate: Pass $ 176,070 $ 297,336 $ 200,707 $ 64,464 $ 51,726 $ 189,162 $ 3,176 $ 982,641 Special mention — — — — — — — — Substandard — 19 21,334 1,680 827 408 — 24,268 Doubtful — — — — — — — — Total commercial real estate loans $ 176,070 $ 297,355 $ 222,041 $ 66,144 $ 52,553 $ 189,570 $ 3,176 $ 1,006,909 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial - specialized: Pass $ 80,261 $ 66,731 $ 60,490 $ 21,415 $ 13,081 $ 27,015 $ 85,499 $ 354,492 Special mention — — — — — — — — Substandard — 76 183 427 19 55 — 760 Doubtful — — — — — — — — Total commercial - specialized loans $ 80,261 $ 66,807 $ 60,673 $ 21,842 $ 13,100 $ 27,070 $ 85,499 $ 355,252 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial - general: Pass $ 62,492 $ 150,617 $ 104,547 $ 39,728 $ 37,506 $ 74,893 $ 51,304 $ 521,087 Special mention — — — — — — — — Substandard 279 11,511 4,656 507 6,738 5,963 355 30,009 Doubtful — — — — — — — — Total commercial - general loans $ 62,771 $ 162,128 $ 109,203 $ 40,235 $ 44,244 $ 80,856 $ 51,659 $ 551,096 Current period gross charge-offs $ — $ — $ 25 $ 10 $ 18 $ 316 $ — $ 369 Consumer: 1-4 family residential: Pass $ 66,427 $ 165,339 $ 114,591 $ 55,850 $ 33,736 $ 65,403 $ 9,613 $ 510,959 Special mention — — — — — — — — Substandard — 313 941 1,732 4,321 4,193 13 11,513 Doubtful — — — — — — — — Total consumer: 1-4 family residential loans $ 66,427 $ 165,652 $ 115,532 $ 57,582 $ 38,057 $ 69,596 $ 9,626 $ 522,472 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: auto loans: Pass $ 62,837 $ 153,144 $ 63,162 $ 22,673 $ 11,154 $ 4,659 $ — $ 317,629 Special mention — — — — — — — — Substandard — 43 265 48 83 58 — 497 Doubtful — — — — — — — — Total consumer: auto loans $ 62,837 $ 153,187 $ 63,427 $ 22,721 $ 11,237 $ 4,717 $ — $ 318,126 Current period gross charge-offs $ 21 $ 181 $ 137 $ — $ 28 $ 44 $ — $ 411 Consumer: other consumer: Pass $ 14,830 $ 34,453 $ 13,564 $ 4,510 $ 3,316 $ 7,253 $ 1,653 $ 79,579 Special mention — — — — — — — — Substandard — 22 32 33 36 93 — 216 Doubtful — — — — — — — — Total consumer: other consumer loans $ 14,830 $ 34,475 $ 13,596 $ 4,543 $ 3,352 $ 7,346 $ 1,653 $ 79,795 Current period gross charge-offs $ 183 $ 159 $ 23 $ 7 $ 37 $ 33 $ — $ 442 Construction: Pass $ 24,337 $ 89,551 $ 21,144 $ 289 $ — $ — $ 9,869 $ 145,190 Special mention — — — — — — — — Substandard — 223 — — — — — 223 Doubtful — — — — — — — — Total construction loans $ 24,337 $ 89,774 $ 21,144 $ 289 $ — $ — $ 9,869 $ 145,413 Current period gross charge-offs $ — $ — $ 272 $ — $ — $ — $ — $ 272 The following table summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Commercial real estate $ 893,312 $ — $ 26,046 $ — $ 919,358 Commercial - specialized 326,987 — 526 — 327,513 Commercial - general 451,639 — 33,144 — 484,783 Consumer: 1-4 family residential 450,034 — 10,090 — 460,124 Auto loans 321,158 — 318 — 321,476 Other consumer 81,109 — 199 — 81,308 Construction 151,995 — 1,524 — 153,519 $ 2,676,234 $ — $ 71,847 $ — $ 2,748,081 Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other than insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. In some cases, the Company provides multiple types of concessions on one loan. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The following tables present the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost bases of each class of financing receivable is also presented below (dollars in thousands): Payment Delay Term Extension Term Extension and Payment Delay Term Extension and Interest Rate Reduction Payment Delay and Interest Rate Reduction Payment Delay, Term Extension, and Interest Rate Reduction Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial real estate $ — $ — $ 96 $ — $ — $ — $ 0.01 % Commercial - specialized 118 690 82 — — — 0.25 % Commercial - general — 2,744 453 70 — 39 0.60 % Consumer: 1-4 family 7 192 — — — 13 0.04 % Auto loans — — — — — — 0.00 % Other consumer — — — — 13 — 0.02 % Construction — 1,654 — — — — 1.14 % $ 125 $ 5,280 $ 631 $ 70 $ 13 $ 52 $ 0.20 % Payment Delay Term Extension Term Extension and Payment Delay Term Extension and Interest Rate Reduction Payment Delay and Interest Rate Reduction Payment Delay, Term Extension, and Interest Rate Reduction Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial real estate $ — $ — $ 96 $ — $ — $ — $ 0.01 % Commercial - specialized 118 690 82 — — — 0.25 % Commercial - general — 4,726 453 113 — 39 0.97 % Consumer: 1-4 family 7 391 — — — 13 0.08 % Auto loans — 39 — — — — 0.01 % Other consumer — — — — 13 — 0.02 % Construction — 1,654 — — — — 1.14 % $ 125 $ 7,500 $ 631 $ 113 $ 13 $ 52 $ 0.28 % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the six months ended June 30, 2023 (dollars in thousands): 30-89 Days Past Due 90 Days or More Past Due and Still Accruing Nonaccrual June 30, 2023 Commercial real estate $ — $ — $ — Commercial - specialized — — 19 Commercial - general 27 — 1,682 Consumer: 1-4 Family residential 199 — 7 Auto loans — — — Other consumer — — — Construction — — — $ 226 $ — $ 1,708 The following tables present the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands): Principal Forgiveness Weighted- Average Interest Rate Reduction Weighted- Average Term Extension (Months) Three Months Ended June 30, 2023 Commercial real estate $ — 0.00 % 72 Commercial - specialized — 0.00 % 13 Commercial - general — 2.50 % 1320 Consumer: 1-4 Family residential — 0.25 % 16 Auto loans — 0.00 % — Other consumer — 4.75 % — Construction — 0.00 % 11 $ — 2.50 % 729 Principal Forgiveness Weighted- Average Interest Rate Reduction Weighted- Average Term Extension (Months) Six Months Ended June 30, 2023 Commercial real estate $ — 0.00 % 72 Commercial - specialized — 0.00 % 13 Commercial - general — 1.81 % 835 Consumer: 1-4 Family residential — 0.25 % 13 Auto loans — 0.00 % 15 Other consumer — 4.75 % — Construction — 0.00 % 11 $ — 1.91 % 542 As of June 30, 2023, the Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2023 that subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure, or charge-off. Upon the Company’s determination that a modified loan has subsequently been deemed to not be fully collectible, the uncollectible amount is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Prior-period troubled debt restructuring (“TDR”) disclosures Prior to adopting the new accounting standard on loan modifications, the Company accounted for modifications of loans to borrowers experiencing financial difficulty as TDRs, when the modification resulted in a concession and specific reserves were charged to the ACL if necessary for the amount of estimated credit loss. The following reflects loans that were considered TDRs prior to January 1, 2023. For further information on the Company’s TDR accounting policies, see Note 1, “Summary of Significant Accounting Policies,” to the Company’s audited consolidated financial statements contained in the 2022 Annual Report on Form 10-K. The Company had no loans modified as a TDR during the year ended December 31, 2022. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 6 Months Ended |
Jun. 30, 2023 | |
GOODWILL AND INTANGIBLES [Abstract] | |
GOODWILL AND INTANGIBLES | 4. GOODWILL AND INTANGIBLES The Company had goodwill of $19.3 and $19.5 million at June 30, 2023 and December 31, 2022. Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands): June 30, 2023 December 31, 2022 Amortized intangible assets Core deposit intangible $ 6,679 $ 6,679 Less: Accumulated amortization (3,845 ) (3,420 ) 2,834 3,259 Other intangibles — 2,972 Less: Accumulated amortization — (1,882 ) — 1,090 Other intangible assets, net $ 2,834 $ 4,349 On April 1, 2023, the sale of Windmark was completed, resulting in the removal of goodwill and other intangible assets, net of accumulated amortization, of $193 thousand and $942 thousand, respectively. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Beginning balance $ 25,795 $ 25,425 $ 27,474 $ 19,700 Additions 463 930 734 2,180 Valuation adjustment 400 1,150 (1,550 ) 5,625 Ending balance $ 26,658 $ 27,505 $ 26,658 $ 27,505 June 30, December 31, 2023 2022 Mortgage loans serviced for others $ 2,025,210 $ 2,046,490 Mortgage servicing rights assets as a percentage of serviced mortgage loans 1.32 % 1.34 % 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, 2023 2022 Weighted average constant prepayment rate 7.29 % 7.47 % Weighted average discount rate 9.65 % 9.15 % Weighted average life in years 7.97 7.91 |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
BORROWING ARRANGEMENTS [Abstract] | |
BORROWING ARRANGEMENTS | 6. BORROWING ARRANGEMENTS Subordinated Debt In December 2018, the Company issued $26.5 million in subordinated debt notes. Notes totaling $12.4 million have a maturity date of December 2028 December 2030 Wall Street Journal notes are intended to On September 29, 2020, the Company issued $50.0 million in subordinated debt notes. Pr approximately $926 thousand in debt issuance costs. date of September 2030 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 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, are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. As of June 30, 2023, the total amount of subordinated notes outstanding was $76.5 million less approximately $418 thousand of remaining debt issuance costs for a total balance of $76.1 million. As of December 31, 2022 Notes Payable and Other Borrowings As of June 30, 2023 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
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 into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Options A summary of activity in the Plan during 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 , 2023 Outstanding at beginning of year: 1,354,189 $ 16.11 $ 8,973 Granted 47,816 27.46 — Exercised (37,720 ) 15.17 (277 ) Forfeited (1,125 ) 20.19 (14 ) Expired (2,730 ) 17.47 (3 ) Balance, June 30 2023 1,360,430 $ 16.57 5.59 $ 8,679 Exercisable at end of period 1,144,131 $ 15.32 4.83 $ 8,329 Vested at end of period 1,144,131 $ 15.32 4.83 $ 8,329 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, 2023 2022 Expected volatility 39.13% to 39.68% 40.20% to 40.29% Expected dividend yield 1.74% to 1.90% 1.30% Expected term (years) 6.1 6.3 6.1 to 6.3 Risk-free interest rate 3.91% to 3.98% 1.56% to 1.95% Weighted average grant date fair value $ 10.26 $ 10.54 The total intrinsic value of options exercised during the six months ended June 30, 2023 and June 30, 2022 was $313 thousand and $74 thousand, respectively. Restricted Stock Awards and Units A summary of activity in the Plan during the period indicated Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2023 Outstanding at beginning of year: 84,342 $ 26.76 Granted 85,127 25.33 Vested (38,141 ) 24.40 Forfeited (4,050 ) 25.04 Balance, June 30 2023 127,278 $ 26.56 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, 2023 was $4.0 million and will be recognized over a weighted average remaining period of 1.73 years. The total fair value of restricted stock units vested during each of the six months ended June 30, 2023 and June 30, 2022 was $930 thousand and $488 thousand, respectively. |
OFF-BALANCE-SHEET ACTIVITIES, C
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
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 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, 2023 December 31, 2022 Commitments to grant loans and unfunded commitments under lines of credit $ 637,400 $ 682,296 Standby letters of credit 12,779 13,864 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. FHLB Letters of Credit - The Company may use FHLB letters of credit to pledge to certain public deposits. The Company had no FHLB letters of credit outstanding at June 30, 2023 or December 31, 2022. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and December 31, 2022, the Company had no finance leases. The balance sheet components of the Company’s leases are as follows (in thousands): June 30, 2023 December 31, 2022 Operating lease right of use assets (included in Other assets $ 8,926 $ 7,938 Operating lease liabilities (included in Accrued expenses and other liabilities 9,863 8,897 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 $954 thousand and $1.7 million, respectively, for the three and six months ended June 30, 2023. Operating lease costs, including short-term lease costs were $747 thousand and $1,411 million, respectively, for the three and six months ended June 30, 2022. Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 546 $ 492 $ 1,030 $ 971 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 1,215 $ — $ 2,032 $ — For operating leases the Company’s weighted average remaining lease terms in years and weighted average discount rate was 10.22 and 5.38%, respectively, as of June 30, 2023, and 9.83 and 4.65%, respectively, as of December 31, 2022. Future undiscounted lease payments at June 30, 2023, under operating lease agreements, are presented below (in thousands). 2023 $ 955 2024 1,656 2025 1,321 2026 1,259 2027 1,209 Thereafter 6,642 Total minimum lease payments 13,042 Less: Amount representing interest (3,179 ) Lease liabilities $ 9,863 As of June 30, 2023, 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, 2023 | |
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. 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, 2023 and December 31, 2022, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject. As of June 30, 2023 and December 31, 2022, the Company met the definition of “well-capitalized” under the applicable regulations of the Board of Governors of the Federal Reserve System and the bank subsidiary was “well capitalized” under the FDIC’s regulatory framework for prompt corrective action and the Basel III capital guidelines. 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, 2023 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 Framework Amount Ratio Amount Ratio Amount Ratio June 30 , 2023 Total Capital to Risk Weighted Assets: Consolidated $ 597,335 16.75 % $ 374,384 10.50 % N/A N/A City Bank 492,582 13.73 % 376,681 10.50 % $ 358,744 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 476,708 13.37 % 303,073 8.50 % N/A N/A City Bank 447,754 12.48 % 304,932 8.50 % 286,995 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 431,708 12.11 % 249,589 7.00 % N/A N/A City Bank 447,754 12.48 % 251,121 7.00 % 233,183 6.50 % Tier I Capital to Average Assets: Consolidated 476,706 11.67 % 164,207 4.00 % N/A N/A City Bank 447,754 10.97 % 164,207 4.00 % 204,152 5.00 % December 31 , 2022 Total Capital to Risk Weighted Assets: Consolidated $ 559,094 16.58 % $ 354,045 10.50 % N/A N/A City Bank 454,427 13.48 % 353,967 10.50 % $ 337,112 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 443,265 13.15 % 286,608 8.50 % N/A N/A City Bank 414,559 12.30 % 286,545 8.50 % 269,689 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 398,265 11.81 % 236,030 7.00 % N/A N/A City Bank 414,559 12.30 % 235,978 7.00 % 219,122 6.50 % Tier I Capital to Average Assets: Consolidated 443,265 11.03 % 161,662 4.00 % N/A N/A City Bank 414,559 10.32 % 161,574 4.00 % 200,774 5.00 % The Company is subject to the Basel III capital ratio requirements which include a “capital conservation buffer” of 2.50% above the regulatory minimum risk-based capital adequacy requirements. This 2.50% capital conservation buffer is reflected in the table above. Both the Company’s and the Bank’s actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of June 30, 2023. 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, 2023 | |
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) for the periods indicated (dollars in thousands): Three Months Ended June 30 Interest Rate Contracts Location 2023 2022 Change in fair value of interest rate swaps hedging investment securities Other noninterest expense $ 1,844 $ 3,429 Change in fair value of hedged investment securities Other noninterest expense (1,866 ) (3,450 ) Change in fair value of interest rate swaps hedging fixed rate loans Interest income - Loans $ 26 $ 167 Change in fair value of hedged fixed rate loans Interest income - Loans (25 ) (170 ) Six Months Ended June 30 Interest Rate Contracts Location 2023 2022 Change in fair value of interest rate swaps hedging investment securities Other noninterest expense $ (810 ) $ 10,178 Change in fair value of hedged investment securities Other noninterest expense 771 (10,349 ) Change in fair value of interest rate swaps hedging fixed rate loans Interest income - Loans $ 26 $ 625 Change in fair value of hedged fixed rate loans Interest income - Loans (25 ) (633 ) The following table reflects the fair value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands): June 30, 2023 December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ — $ — $ — $ — Interest rate swaps related to state and municipal securities — — — — Included in other assets: Interest rate swaps related to fixed rate loans $ 11,803 $ 508 $ 9,493 $ 482 Interest rate swaps related to state and municipal securities 123,760 19,315 123,760 20,125 Mortgage banking derivatives The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands): Three Months Ended June 30, Location 2023 2022 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 375 $ 166 Interest rate lock commitments Net gain (loss) on sales of loans $ (428 ) $ (940 ) Six Months Ended June 30 Location 2023 2022 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 94 $ (926 ) Interest rate lock commitments Net gain (loss) on sales of loans $ (5 ) $ 117 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, 2023 December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Forward contracts related to mortgage loans held for sale $ 21,000 $ 78 $ 23,500 $ 186 Interest rate lock commitments 32,816 472 27,348,000.00 369 Total included in other assets $ 53,816 $ 550 $ 50,848 $ 555 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 6,296 $ 34 $ 5,615 $ 128 Interest rate lock commitments — — — — T otal included in other liabilities $ 6,296 $ 34 $ 5,615 $ 128 The Company had received cash collateral of $17.3 million to offset asset derivative positions on its interest rate swaps at June 30, 2023. 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, 2023. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at June 30, 2023. 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, 2023 | |
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, 2023 2022 2023 2022 Net income $ 29,683 $ 15,883 $ 38,927 $ 30,161 Weighted average common shares outstanding - basic 17,048,432 17,490,706 17,047,578 17,602,798 Effect of dilutive securities: Stock-based compensation awards 338,083 529,842 390,779 609,638 Weighted average common shares outstanding - diluted 17,386,515 18,020,548 17,438,357 18,212,436 Basic earnings per share $ 1.74 $ 0.91 $ 2.28 $ 1.71 Diluted earnings per share $ 1.71 $ 0.88 $ 2.23 $ 1.66 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE DISCLOSURES | 13. 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 , 2023 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 180,395 $ — $ 180,395 Residential mortgage-backed securities — 310,187 — 310,187 Commercial mortgage-backed securities — 41,218 — 41,218 Collateralized mortgage obligations — 67,595 — 67,595 Asset-backed and other amortizing securities — 17,785 — 17,785 Other securities — 10,913 — 10,913 Loans held for sale (mandatory) — 15,516 — 15,516 Mortgage servicing rights — — 26,658 26,658 Asset derivatives — 20,373 — 20,373 Liability derivatives — (34 ) — (34 ) Assets measured at fair value on a non-recurring basis: Loans held for investment — — 18,098 18,098 December 31, 2022 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 225,055 $ — $ 225,055 Residential mortgage-backed securities — 328,845 — 328,845 Commercial mortgage-backed securities — 41,967 — 41,967 Collateralized mortgage obligations — 75,638 — 75,638 Asset-backed and other amortizing securities — 19,094 — 19,094 Other securities — 11,112 — 11,112 Loans held for sale (mandatory) — 10,038 — 10,038 Mortgage servicing rights — — 27,474 27,474 Asset derivatives — 21,162 — 21,162 Liability derivatives — (128 ) — (128 ) Assets measured at fair value on a non-recurring basis: Loans held for investment — — 4,821 4,821 Securities Mortgage servicing rights speeds, default rates, . Mortgage servicing rights are the only Level 3 asset measured at fair value on a recurring basis, see Note 5 for the Level 3 change activity for the three and six months ended June 30, 2023 and 2022 Derivatives Loans held for investment Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected Loans held for sale (mandatory) Loans held for sale originated for mandatory delivery are reported at fair value on a recurring basis due to the Company’s election to adopt fair value accounting treatment for these assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC Topic 815, Derivatives and Hedging. For assets for which the fair value option has been elected, the earned current contractual interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. At June 30, 2023, and December 31, 2022, the Company had no gains or losses recorded attributable to changes in instrument-specific credit risk. Fair value is determined using quoted prices for similar assets, adjusted for specific attributes of that loan. At June 30, 2023 and December 31, 2022 the aggregate fair value of loans held for sale for mandatory delivery was $15.5 million and $10.0 million, respectively. The aggregate unpaid principal balance as of the same dates was $15.1 million and $9.9 million, respectively, representing differences between fair value and unpaid principal balance of $372 thousand and $163 thousand, respectively. The Company had no loans held for sale for mandatory delivery designated as nonaccrual or 90 days or more past due at June 30, 2023 and December 31, 2022. The total fair value option impact on noninterest income for loans held for sale for mandatory delivery is included in Net gain on sales of loans in the Consolidated Statements of Comprehensive Income (Loss). For the three months ended June 30, 2023 and 2022 the net (gain) loss amount totaled $9 thousand and $(471) thousand, respectively. For the six months ended June 30, 2023 and 2022 the net (gain) loss amount totaled $(252) thousand and $1.7 million, respectively 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, 2023 Non-recurring: Loans held for investment $ 18,098 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 26,658 Discounted cash flows Conditional prepayment rate 7.29 % Discount rate 9.65 % December 31, 2022 Non-recurring: Loans held for investment $ 4,821 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 27,474 Discounted cash flows Conditional prepayment rate 7.47 % Discount rate 9.15 % 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 , 2023 Financial assets: Cash and cash equivalents $ 295,581 $ 295,581 $ — $ — $ 295,581 Loans held for investment, net 2,935,926 — — 2,868,428 2,868,428 Loans held for sale (best efforts) 6,642 — 6,770 — 6,770 Accrued interest receivable 15,917 — 15,917 — 15,917 Financial liabilities: Deposits $ 3,574,522 $ — $ 3,573,886 $ — $ 3,573,886 Accrued interest payable 3,657 — 3,657 — 3,657 Junior subordinated deferrable interest debentures 46,393 — 33,042 — 33,042 Subordinated debt securities 76,054 — 66,910 — 66,910 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2022 Financial assets: Cash and cash equivalents $ 234,883 $ 234,883 $ — $ — $ 234,883 Loans held for investment, net 2,708,793 — — 2,662,609 2,662,609 Loans held for sale (best efforts) 20,365 — 20,745 — 20,745 Accrued interest receivable 16,432 — 16,432 — 16,432 Financial liabilities: Deposits $ 3,406,430 $ — $ 3,405,222 $ — $ 3,405,222 Accrued interest payable 2,836 — 2,836 — 2,836 Junior subordinated deferrable interest debentures 46,393 — 34,606 — 34,606 Subordinated debt securities 75,961 — 70,835 — 70,835 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS Dividend Declaration On July 20, 2023, the Company’s board of directors declared a cash dividend of $0.13 per share of common stock to be paid on August 14, 2023 to all shareholders of record as of July 31, 2023. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of Operations | Nature of Operations The following were subsidiaries of SPFI as of June 30, 2023: Wholly-Owned, Consolidated Subsidiaries: City Bank 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, 2023 (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, 2022. 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 (“ACL”) |
Accounting Changes | Accounting Changes 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 and held to maturity debt securities. The CECL model also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in sales type and direct financing leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the accounting for securities available for sale. One such change is to require credit losses to be presented as an allowance rather than as a write-down on securities available for sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted the CECL model effective January 1, 2023 using the modified retrospective approach, as a result, the Company recognized a one-time, after tax cumulative effect debit adjustment of $997 thousand to retained earnings, increased the ACL for loans by approximately $100 thousand and increased the ACL for off-balance sheet credit exposures by approximately $1.2 million. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company made the following policy elections related to the adoption of the CECL model. First, accrued interest will be written off against interest income when financial assets are placed into nonaccrual status. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the ACL. Accrued interest receivable is presented in a separate line item in the Consolidated Balance Sheets. Second, the fair value of collateral practical expedient has been elected on certain loans in determining the ACL, for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. The impact on the ACL resulting from the adoption of the CECL model is shown below. (Dollars in thousand January 1, 2023 Pre-Adoption Impact of Adoption Post-Adoption Commercial real estate $ 13,029 $ 827 $ 13,856 Commercial – specialized 3,425 33 3,458 Commercial - general 9,215 (2,574 ) 6,641 Consumer: 1 4 6,194 1,700 7,894 Auto loans 3,926 (332 ) 3,594 Other consumer 1,376 (235 ) 1,141 Construction 2,123 683 2,806 Total allowance for credit losses on loans $ 39,288 $ 102 $ 39,390 Allowance for credit losses for off-balance sheet exposures $ 580 $ 1,160 $ 1,740 ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan modifications by creditors for borrowers experiencing financial distress. This ASU defines types of modifications as principal forgiveness, interest rate reduction, other than insignificant payment delays, or a term extension. In addition, the ASU requires disclosure of current-period gross charge-offs, by year of origination, in the vintage disclosure. The Company adopted the provisions of ASU 2022-02 as of January 1, 2023 on a prospective basis. The adoption of this amendment did not have a material impact on the consolidated financial statements. In connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections. |
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 carried at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss), net of tax. 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. Gains and losses on sales are recorded on the trade date, are derived from the amortized cost of the security sold and are determined using the specific identification method. A security is placed on nonaccrual status if principal or interest has been in default for a period of 90 days or more, or if full payment of principal and interest is not expected. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of AFS securities and report the accrued interest in accrued interest receivable in the Consolidated Balance Sheets. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income. |
ACL (AFS Securities) | ACL (AFS Securities) – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss). Changes in the ACL are recorded as provision for credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest is excluded from the estimate of credit losses. |
Loans | Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost. Amortized cost is the outstanding unpaid principal balances, net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on the Consolidated Balance Sheets. Accrued interest receivable is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the straight-line method, which is not materially different from the effective interest method required by GAAP 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. |
ACL (Loans) | ACL (Loans) – The ACL is a valuation account established by management as an estimate to cover expected credit losses through a provision for credit losses charged to earnings. Credit losses on loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Expected losses are calculated using comparable and quantifiable information from both internal and external sources about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments. The ACL is evaluated on a quarterly basis by management. The Company applied a dual credit risk rating (“DCRR”) methodology that estimates each loan’s probability of default and loss given default to calculate the expected credit loss to non-analyzed loans at January 1 and June 30, 2023. The DCRR process quantifies the expected credit loss at the loan level for the entire loan portfolio. Loan grades are assigned by a customized scorecard that risk rates each loan based on multiple probability of default and loss given default elements to measure the credit risk of the loan portfolio. The ACL estimate incorporates the Company’s DCRR loan level risk rating methodology and the expected default rate frequency term structure to derive loan level life of loan estimates of credit losses for every loan in the portfolio. The estimated credit loss for each loan is adjusted based on its one-year through the cycle estimate of expected credit loss to a life of loan measurement that reflects current conditions and reasonable and supportable forecasts. The life of loan expected loss is determined using the contractual weighted average life of the loan adjusted for prepayments. Prepayment speeds are determined by grouping the loans into pools based on segments and risk rating. After the life of loan expected losses are determined, they are adjusted to reflect the Company’s reasonable and supportable economic forecast over a selected range of one typically a one-year forecast period is used. MEV’s considered in the analysis consist of data gathered from the St. Louis Federal Reserve Research Database (“FRED”), such as, federal funds rate, 10-year treasury rates, 30-year mortgage rates, crude oil prices, consumer price index, housing price index, unemployment rates, housing starts, gross domestic product, and disposable personal income. These regression models are applied to the Company’s economic forecast to determine the corresponding net charge-off rates. The projected net charge-off rates for the given economic scenario are used to adjust the life of loan expected losses. Qualitative adjustments are also made to ACL results for additional risk factors that are relevant in assessing the expected credit losses within our loan segments. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management’s estimate of the ACL by a calculated percentage based upon the estimated level of risk within a particular segment. Q-Factor risk decisions consider concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, and other factors related to credit administration, such as borrower’s risk rating and the potential effect of delayed credit score migrations. Management quantifiably identifies segment percentage Q-Factor adjustments using a scorecard risk rating system scaled to historical loss experience within a segment and management’s perceived risk for that particular segment. While management uses available information to recognize credit 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 credit losses on loans. Such agencies may require the bank subsidiary to recognize additional credit 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 credit losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Loans that exhibit characteristics different from their pool characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective ACL evaluation. When management determines that foreclosure is probable, or if certain of these loans are considered to be collateral dependent with the borrower experiencing financial difficulty, the Company elects the fair value of collateral practical expedient, whereby the allowance is calculated as the amount by which the amortized cost exceeds the fair value of collateral, less costs to sell. |
ACL (Off-Balance Sheet Credit Exposures) | ACL (Off-Balance Sheet Credit Exposures) – The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposures is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Utilization rates are determined based on a two-year rolling average of historical usage. Expected loss rates for all pass rated loans are used to determine the ACL for off-balance sheet credit exposures. The ACL for off-balance sheet credit exposures is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. |
Acquired Loans | Acquired Loans – Loans that the Company acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related ACL. The fair value of the acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest, adjusted for estimated prepayments and credit losses. In accordance with Topic 326, the fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. In addition, the Company also records an ACL on each acquired loan. Any acquired loans the Company determines have evidence of a more than insignificant deterioration in credit quality since origination, are considered to be purchase credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (i) non-accrual status; (ii) risk rating, (iii) watchlist credits; and (iv) delinquency status. An ACL is determined using the same methodology as other individually evaluated loans. The sum of the PCD loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through provision for credit losses. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – no 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. |
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. 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 consolidated financial statements. |
Segment Information | Segment Information – |
Subsequent Events | Subsequent Events – The Company has evaluated subsequent events and transactions from June 30,2023 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, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Subsidiaries Information | The following were subsidiaries of SPFI as of June 30, 2023: Wholly-Owned, Consolidated Subsidiaries: City Bank 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 |
Impact on ACL from Adoption of the CECL | The impact on the ACL resulting from the adoption of the CECL model is shown below. (Dollars in thousand January 1, 2023 Pre-Adoption Impact of Adoption Post-Adoption Commercial real estate $ 13,029 $ 827 $ 13,856 Commercial – specialized 3,425 33 3,458 Commercial - general 9,215 (2,574 ) 6,641 Consumer: 1 4 6,194 1,700 7,894 Auto loans 3,926 (332 ) 3,594 Other consumer 1,376 (235 ) 1,141 Construction 2,123 683 2,806 Total allowance for credit losses on loans $ 39,288 $ 102 $ 39,390 Allowance for credit losses for off-balance sheet exposures $ 580 $ 1,160 $ 1,740 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SECURITIES [Abstract] | |
Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses | The amortized cost, related gross unrealized gains and losses, : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30 , 2023 Available for sale: State and municipal $ 206,835 $ 2 $ (26,442 ) $ — $ 180,395 Residential mortgage 366,207 — (56,020 ) — 310,187 Commercial mortgage-backed securities 48,533 — (7,315 ) — 41,218 Commercial collateralized 72,823 — (5,228 ) — 67,595 Asset-backed and other amortizing securities 19,529 — (1,744 ) — 17,785 Other securities 12,000 — (1,087 ) — 10,913 $ 725,927 $ 2 $ (97,836 ) $ — $ 628,093 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31 , 2022 Available for sale: State and municipal $ 259,429 $ 27 $ (34,401 ) $ 225,055 Residential mortgage 386,783 — (57,938 ) 328,845 Commercial mortgage-backed securities 49,161 — (7,194 ) 41,967 Commercial collateralized 76,189 — (551 ) 75,638 Asset-backed and other amortizing securities 20,907 — (1,813 ) 19,094 Other securities 12,000 — (888 ) 11,112 $ 804,469 $ 27 $ (102,785 ) $ 701,711 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at June 30, 2023 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 $ 2,628 $ 2,629 After 1 year through 5 years 5,387 5,119 After 5 years through 10 years 17,405 16,179 After 10 years 193,415 167,381 Other 507,092 436,785 $ 725,927 $ 628,093 |
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 for which an allowance for credit losses has not been recorded (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 , 2023 State and municipal $ 5,903 $ 92 $ 171,217 $ 26,350 $ 177,120 $ 26,442 Residential mortgage-backed securities — — 310,178 56,020 310,178 56,020 Commercial mortgage-backed securities — — 41,218 7,315 41,218 7,315 Commercial collateralized mortgage obligations 67,595 5,228 — — 67,595 5,228 Asset-backed and other amortizing securities — — 17,785 1,744 17,785 1,744 Other securities 3,405 95 7,508 992 10,913 1,087 $ 76,903 $ 5,415 $ 547,906 $ 92,421 $ 624,809 $ 97,836 December 31 , 2022 State and municipal $ 162,746 $ 23,538 $ 57,675 $ 10,863 $ 220,421 $ 34,401 Residential mortgage-backed securities 220,752 27,967 108,080 29,971 328,832 57,938 Commercial mortgage-backed securities 41,966 7,194 — — 41,966 7,194 Commercial collateralized mortgage obligations 75,638 551 — — 75,638 551 Asset-backed and other amortizing securities 19,094 1,813 — — 19,094 1,813 Other securities 11,112 888 — — 11,112 888 $ 531,308 $ 61,951 $ 165,755 $ 40,834 $ 697,063 $ 102,785 |
LOANS HELD FOR INVESTMENT (Tabl
LOANS HELD FOR INVESTMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Commercial real estate $ 1,006,909 $ 919,358 Commercial - specialized 355,252 327,513 Commercial - general 551,096 484,783 Consumer: 1-4 family residential 522,472 460,124 Auto loans 318,126 321,476 Other consumer 79,795 81,308 Construction 145,413 153,519 2,979,063 2,748,081 Allowance for credit losses on loans (43,137 ) (39,288 ) Loans, net $ 2,935,926 $ 2,708,793 |
Activity in ACL for Loans and Investment in Loans Disaggregated Based on Method of Evaluating Impairment | The following table details the activity in the ACL for loans 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 Credit Losses (1) Charge-offs Recoveries Ending Balance For the three months ended June 30 , 2023 Commercial real estate $ 13,381 $ 1,120 $ — $ — $ 14,501 Commercial - specialized 3,510 626 — 18 4,154 Commercial - general 6,267 1,478 (169 ) 61 7,637 Consumer: 1-4 family residential 8,531 318 — 2 8,851 Auto loans 3,714 332 (157 ) 11 3,900 Other consumer 1,101 155 (229 ) 80 1,107 Construction 3,056 (69 ) — — 2,987 $ 39,560 $ 3,960 $ (555 ) $ 172 $ 43,137 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 (1) The $3.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.0 million provision for credit losses on loans and a $(260) thousand provision for off-balance sheet credit exposures for the three months ended June 30, 2023. Beginning Balance Impact of CECL Adoption Provision for Credit Losses (1) Charge-offs Recoveries Ending Balance For the six months ended June 30 , 2023 Commercial real estate $ 13,029 $ 827 $ 645 $ — $ — $ 14,501 Commercial - specialized 3,425 33 616 — 80 4,154 Commercial - general 9,215 (2,574 ) 1,242 (369 ) 123 7,637 Consumer: 1-4 family residential 6,194 1,700 954 — 3 8,851 Auto loans 3,926 (332 ) 630 (411 ) 87 3,900 Other consumer 1,376 (235 ) 220 (442 ) 188 1,107 Construction 2,123 683 453 (272 ) — 2,987 $ 39,288 $ 102 $ 4,760 $ (1,494 ) $ 481 $ 43,137 (1) The $4.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.8 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the six months ended June 30, 2023. Beginning Balance Provision for Credit 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 The following table shows the Company’s amortized cost in loans and related ACL for collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the date indicated (dollars in thousands). Real Estate Equipment Accounts Receivable Total Loans Individually Evaluated Total ACL for Individually Evaluated Loans June 30 , 2023 Commercial real estate $ 175 $ 525 $ 30 $ 730 $ — Commercial - specialized — — — — — Commercial - general 8,179 9,724 162 18,065 1,362 Consumer: 1-4 family residential 747 1 — 748 83 Auto loans — — — — — Other consumer — — — — — Construction — — — — — $ 9,101 $ 10,250 $ 192 $ 19,543 $ 1,445 The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the date indicated (dollars in thousands): Recorded Investment ACL for Loans Individually Evaluated Collectively Evaluated Individually Evaluated Collectively Evaluated December 31 , 2022 Commercial real estate $ — $ 919,358 $ — $ 13,029 Commercial - specialized — 327,513 — 3,425 Commercial - general 3,350 481,433 22 9,193 Consumer: 1-4 family residential 742 459,382 18 6,176 Auto loans — 321,476 — 3,926 Other consumer — 81,308 — 1,376 Construction 1,014 152,505 245 1,878 $ 5,106 $ 2,742,975 $ 285 $ 39,003 |
Impaired Loan Information | Impaired loan information at the date 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 December 31 , 2022 Commercial real estate $ — $ — $ — $ — $ — $ 551 Commercial - specialized — — — — — — Commercial - general 3,350 799 2,551 3,350 22 4,214 Consumer: 1-4 family 742 486 256 742 18 1,167 Auto loans — — — — — — Other consumer — — — — — — Construction 1,014 686 328 1,014 245 507 $ 5,106 $ 1,971 $ 3,135 $ 5,106 $ 285 $ 6,439 |
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 Nonaccrual with no ACL June 30 , 2023 Commercial real estate $ 65 $ 91 $ — $ — Commercial - specialized 230 11 249 — Commercial - general 335 3,352 14,078 — Consumer: 1-4 Family residential 1,829 630 1,977 261 Auto loans 971 145 — — Other consumer 754 249 34 — Construction 611 — 223 — $ 4,795 $ 4,478 $ 16,561 $ 261 30-89 Days Past Due 90 Days or More Past Due Nonaccrual December 31 , 2022 Commercial real estate $ 342 $ 27 $ — Commercial - specialized 25 13 38 Commercial - general 1,451 60 3,357 Consumer: 1-4 Family residential 1,389 1,653 1,356 Auto loans 707 85 — Other consumer 1,487 149 37 Construction 550 — 1,014 $ 5,951 $ 1,987 $ 5,802 |
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year | The following table reflects the amortized cost basis in loans by credit quality indicator and origination year at June 30, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate: Pass $ 176,070 $ 297,336 $ 200,707 $ 64,464 $ 51,726 $ 189,162 $ 3,176 $ 982,641 Special mention — — — — — — — — Substandard — 19 21,334 1,680 827 408 — 24,268 Doubtful — — — — — — — — Total commercial real estate loans $ 176,070 $ 297,355 $ 222,041 $ 66,144 $ 52,553 $ 189,570 $ 3,176 $ 1,006,909 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial - specialized: Pass $ 80,261 $ 66,731 $ 60,490 $ 21,415 $ 13,081 $ 27,015 $ 85,499 $ 354,492 Special mention — — — — — — — — Substandard — 76 183 427 19 55 — 760 Doubtful — — — — — — — — Total commercial - specialized loans $ 80,261 $ 66,807 $ 60,673 $ 21,842 $ 13,100 $ 27,070 $ 85,499 $ 355,252 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial - general: Pass $ 62,492 $ 150,617 $ 104,547 $ 39,728 $ 37,506 $ 74,893 $ 51,304 $ 521,087 Special mention — — — — — — — — Substandard 279 11,511 4,656 507 6,738 5,963 355 30,009 Doubtful — — — — — — — — Total commercial - general loans $ 62,771 $ 162,128 $ 109,203 $ 40,235 $ 44,244 $ 80,856 $ 51,659 $ 551,096 Current period gross charge-offs $ — $ — $ 25 $ 10 $ 18 $ 316 $ — $ 369 Consumer: 1-4 family residential: Pass $ 66,427 $ 165,339 $ 114,591 $ 55,850 $ 33,736 $ 65,403 $ 9,613 $ 510,959 Special mention — — — — — — — — Substandard — 313 941 1,732 4,321 4,193 13 11,513 Doubtful — — — — — — — — Total consumer: 1-4 family residential loans $ 66,427 $ 165,652 $ 115,532 $ 57,582 $ 38,057 $ 69,596 $ 9,626 $ 522,472 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: auto loans: Pass $ 62,837 $ 153,144 $ 63,162 $ 22,673 $ 11,154 $ 4,659 $ — $ 317,629 Special mention — — — — — — — — Substandard — 43 265 48 83 58 — 497 Doubtful — — — — — — — — Total consumer: auto loans $ 62,837 $ 153,187 $ 63,427 $ 22,721 $ 11,237 $ 4,717 $ — $ 318,126 Current period gross charge-offs $ 21 $ 181 $ 137 $ — $ 28 $ 44 $ — $ 411 Consumer: other consumer: Pass $ 14,830 $ 34,453 $ 13,564 $ 4,510 $ 3,316 $ 7,253 $ 1,653 $ 79,579 Special mention — — — — — — — — Substandard — 22 32 33 36 93 — 216 Doubtful — — — — — — — — Total consumer: other consumer loans $ 14,830 $ 34,475 $ 13,596 $ 4,543 $ 3,352 $ 7,346 $ 1,653 $ 79,795 Current period gross charge-offs $ 183 $ 159 $ 23 $ 7 $ 37 $ 33 $ — $ 442 Construction: Pass $ 24,337 $ 89,551 $ 21,144 $ 289 $ — $ — $ 9,869 $ 145,190 Special mention — — — — — — — — Substandard — 223 — — — — — 223 Doubtful — — — — — — — — Total construction loans $ 24,337 $ 89,774 $ 21,144 $ 289 $ — $ — $ 9,869 $ 145,413 Current period gross charge-offs $ — $ — $ 272 $ — $ — $ — $ — $ 272 The following table summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Commercial real estate $ 893,312 $ — $ 26,046 $ — $ 919,358 Commercial - specialized 326,987 — 526 — 327,513 Commercial - general 451,639 — 33,144 — 484,783 Consumer: 1-4 family residential 450,034 — 10,090 — 460,124 Auto loans 321,158 — 318 — 321,476 Other consumer 81,109 — 199 — 81,308 Construction 151,995 — 1,524 — 153,519 $ 2,676,234 $ — $ 71,847 $ — $ 2,748,081 |
Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty and Financial Effects of Loan Modifications | The following tables present the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost bases of each class of financing receivable is also presented below (dollars in thousands): Payment Delay Term Extension Term Extension and Payment Delay Term Extension and Interest Rate Reduction Payment Delay and Interest Rate Reduction Payment Delay, Term Extension, and Interest Rate Reduction Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial real estate $ — $ — $ 96 $ — $ — $ — $ 0.01 % Commercial - specialized 118 690 82 — — — 0.25 % Commercial - general — 2,744 453 70 — 39 0.60 % Consumer: 1-4 family 7 192 — — — 13 0.04 % Auto loans — — — — — — 0.00 % Other consumer — — — — 13 — 0.02 % Construction — 1,654 — — — — 1.14 % $ 125 $ 5,280 $ 631 $ 70 $ 13 $ 52 $ 0.20 % Payment Delay Term Extension Term Extension and Payment Delay Term Extension and Interest Rate Reduction Payment Delay and Interest Rate Reduction Payment Delay, Term Extension, and Interest Rate Reduction Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial real estate $ — $ — $ 96 $ — $ — $ — $ 0.01 % Commercial - specialized 118 690 82 — — — 0.25 % Commercial - general — 4,726 453 113 — 39 0.97 % Consumer: 1-4 family 7 391 — — — 13 0.08 % Auto loans — 39 — — — — 0.01 % Other consumer — — — — 13 — 0.02 % Construction — 1,654 — — — — 1.14 % $ 125 $ 7,500 $ 631 $ 113 $ 13 $ 52 $ 0.28 % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the six months ended June 30, 2023 (dollars in thousands): 30-89 Days Past Due 90 Days or More Past Due and Still Accruing Nonaccrual June 30, 2023 Commercial real estate $ — $ — $ — Commercial - specialized — — 19 Commercial - general 27 — 1,682 Consumer: 1-4 Family residential 199 — 7 Auto loans — — — Other consumer — — — Construction — — — $ 226 $ — $ 1,708 The following tables present the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands): Principal Forgiveness Weighted- Average Interest Rate Reduction Weighted- Average Term Extension (Months) Three Months Ended June 30, 2023 Commercial real estate $ — 0.00 % 72 Commercial - specialized — 0.00 % 13 Commercial - general — 2.50 % 1320 Consumer: 1-4 Family residential — 0.25 % 16 Auto loans — 0.00 % — Other consumer — 4.75 % — Construction — 0.00 % 11 $ — 2.50 % 729 Principal Forgiveness Weighted- Average Interest Rate Reduction Weighted- Average Term Extension (Months) Six Months Ended June 30, 2023 Commercial real estate $ — 0.00 % 72 Commercial - specialized — 0.00 % 13 Commercial - general — 1.81 % 835 Consumer: 1-4 Family residential — 0.25 % 13 Auto loans — 0.00 % 15 Other consumer — 4.75 % — Construction — 0.00 % 11 $ — 1.91 % 542 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
GOODWILL AND INTANGIBLES [Abstract] | |
Other Intangible Assets | Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands): June 30, 2023 December 31, 2022 Amortized intangible assets Core deposit intangible $ 6,679 $ 6,679 Less: Accumulated amortization (3,845 ) (3,420 ) 2,834 3,259 Other intangibles — 2,972 Less: Accumulated amortization — (1,882 ) — 1,090 Other intangible assets, net $ 2,834 $ 4,349 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Beginning balance $ 25,795 $ 25,425 $ 27,474 $ 19,700 Additions 463 930 734 2,180 Valuation adjustment 400 1,150 (1,550 ) 5,625 Ending balance $ 26,658 $ 27,505 $ 26,658 $ 27,505 June 30, December 31, 2023 2022 Mortgage loans serviced for others $ 2,025,210 $ 2,046,490 Mortgage servicing rights assets as a percentage of serviced mortgage loans 1.32 % 1.34 % |
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, 2023 2022 Weighted average constant prepayment rate 7.29 % 7.47 % Weighted average discount rate 9.65 % 9.15 % Weighted average life in years 7.97 7.91 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION [Abstract] | |
Summary of Stock Option Activity | A summary of activity in the Plan during 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 , 2023 Outstanding at beginning of year: 1,354,189 $ 16.11 $ 8,973 Granted 47,816 27.46 — Exercised (37,720 ) 15.17 (277 ) Forfeited (1,125 ) 20.19 (14 ) Expired (2,730 ) 17.47 (3 ) Balance, June 30 2023 1,360,430 $ 16.57 5.59 $ 8,679 Exercisable at end of period 1,144,131 $ 15.32 4.83 $ 8,329 Vested at end of period 1,144,131 $ 15.32 4.83 $ 8,329 |
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, 2023 2022 Expected volatility 39.13% to 39.68% 40.20% to 40.29% Expected dividend yield 1.74% to 1.90% 1.30% Expected term (years) 6.1 6.3 6.1 to 6.3 Risk-free interest rate 3.91% to 3.98% 1.56% to 1.95% Weighted average grant date fair value $ 10.26 $ 10.54 |
Summary of Activity of Restricted Stock Units | A summary of activity in the Plan during the period indicated Number of Shares Weighted-Average Grant Date Fair Value Six Months Ended June 30 , 2023 Outstanding at beginning of year: 84,342 $ 26.76 Granted 85,127 25.33 Vested (38,141 ) 24.40 Forfeited (4,050 ) 25.04 Balance, June 30 2023 127,278 $ 26.56 |
OFF-BALANCE-SHEET ACTIVITIES,_2
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Commitments to grant loans and unfunded commitments under lines of credit $ 637,400 $ 682,296 Standby letters of credit 12,779 13,864 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LEASES [Abstract] | |
Balance Sheet Components of Leases | The balance sheet components of the Company’s leases are as follows (in thousands): June 30, 2023 December 31, 2022 Operating lease right of use assets (included in Other assets $ 8,926 $ 7,938 Operating lease liabilities (included in Accrued expenses and other liabilities 9,863 8,897 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 546 $ 492 $ 1,030 $ 971 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 1,215 $ — $ 2,032 $ — |
Maturities of Operating Lease Liabilities | Future undiscounted lease payments at June 30, 2023, under operating lease agreements, are presented below (in thousands). 2023 $ 955 2024 1,656 2025 1,321 2026 1,259 2027 1,209 Thereafter 6,642 Total minimum lease payments 13,042 Less: Amount representing interest (3,179 ) Lease liabilities $ 9,863 |
CAPITAL AND REGULATORY MATTERS
CAPITAL AND REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Framework Amount Ratio Amount Ratio Amount Ratio June 30 , 2023 Total Capital to Risk Weighted Assets: Consolidated $ 597,335 16.75 % $ 374,384 10.50 % N/A N/A City Bank 492,582 13.73 % 376,681 10.50 % $ 358,744 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 476,708 13.37 % 303,073 8.50 % N/A N/A City Bank 447,754 12.48 % 304,932 8.50 % 286,995 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 431,708 12.11 % 249,589 7.00 % N/A N/A City Bank 447,754 12.48 % 251,121 7.00 % 233,183 6.50 % Tier I Capital to Average Assets: Consolidated 476,706 11.67 % 164,207 4.00 % N/A N/A City Bank 447,754 10.97 % 164,207 4.00 % 204,152 5.00 % December 31 , 2022 Total Capital to Risk Weighted Assets: Consolidated $ 559,094 16.58 % $ 354,045 10.50 % N/A N/A City Bank 454,427 13.48 % 353,967 10.50 % $ 337,112 10.00 % Tier I Capital to Risk Weighted Assets: Consolidated 443,265 13.15 % 286,608 8.50 % N/A N/A City Bank 414,559 12.30 % 286,545 8.50 % 269,689 8.00 % Common Equity Tier 1 to Risk Weighted Assets: Consolidated 398,265 11.81 % 236,030 7.00 % N/A N/A City Bank 414,559 12.30 % 235,978 7.00 % 219,122 6.50 % Tier I Capital to Average Assets: Consolidated 443,265 11.03 % 161,662 4.00 % N/A N/A City Bank 414,559 10.32 % 161,574 4.00 % 200,774 5.00 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 for the periods indicated (dollars in thousands): Three Months Ended June 30, Location 2023 2022 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 375 $ 166 Interest rate lock commitments Net gain (loss) on sales of loans $ (428 ) $ (940 ) Six Months Ended June 30 Location 2023 2022 Forward contracts related to mortgage loans held for sale Net gain (loss) on sales of loans $ 94 $ (926 ) Interest rate lock commitments Net gain (loss) on sales of loans $ (5 ) $ 117 |
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, 2023 December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Forward contracts related to mortgage loans held for sale $ 21,000 $ 78 $ 23,500 $ 186 Interest rate lock commitments 32,816 472 27,348,000.00 369 Total included in other assets $ 53,816 $ 550 $ 50,848 $ 555 Included in other liabilities: Forward contracts related to mortgage loans held for sale $ 6,296 $ 34 $ 5,615 $ 128 Interest rate lock commitments — — — — T otal included in other liabilities $ 6,296 $ 34 $ 5,615 $ 128 |
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, 2023 December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value Included in other liabilities: Interest rate swaps related to fixed rate loans $ — $ — $ — $ — Interest rate swaps related to state and municipal securities — — — — Included in other assets: Interest rate swaps related to fixed rate loans $ 11,803 $ 508 $ 9,493 $ 482 Interest rate swaps related to state and municipal securities 123,760 19,315 123,760 20,125 |
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) for the periods indicated (dollars in thousands): Three Months Ended June 30 Interest Rate Contracts Location 2023 2022 Change in fair value of interest rate swaps hedging investment securities Other noninterest expense $ 1,844 $ 3,429 Change in fair value of hedged investment securities Other noninterest expense (1,866 ) (3,450 ) Change in fair value of interest rate swaps hedging fixed rate loans Interest income - Loans $ 26 $ 167 Change in fair value of hedged fixed rate loans Interest income - Loans (25 ) (170 ) Six Months Ended June 30 Interest Rate Contracts Location 2023 2022 Change in fair value of interest rate swaps hedging investment securities Other noninterest expense $ (810 ) $ 10,178 Change in fair value of hedged investment securities Other noninterest expense 771 (10,349 ) Change in fair value of interest rate swaps hedging fixed rate loans Interest income - Loans $ 26 $ 625 Change in fair value of hedged fixed rate loans Interest income - Loans (25 ) (633 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Net income $ 29,683 $ 15,883 $ 38,927 $ 30,161 Weighted average common shares outstanding - basic 17,048,432 17,490,706 17,047,578 17,602,798 Effect of dilutive securities: Stock-based compensation awards 338,083 529,842 390,779 609,638 Weighted average common shares outstanding - diluted 17,386,515 18,020,548 17,438,357 18,212,436 Basic earnings per share $ 1.74 $ 0.91 $ 2.28 $ 1.71 Diluted earnings per share $ 1.71 $ 0.88 $ 2.23 $ 1.66 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 , 2023 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 180,395 $ — $ 180,395 Residential mortgage-backed securities — 310,187 — 310,187 Commercial mortgage-backed securities — 41,218 — 41,218 Collateralized mortgage obligations — 67,595 — 67,595 Asset-backed and other amortizing securities — 17,785 — 17,785 Other securities — 10,913 — 10,913 Loans held for sale (mandatory) — 15,516 — 15,516 Mortgage servicing rights — — 26,658 26,658 Asset derivatives — 20,373 — 20,373 Liability derivatives — (34 ) — (34 ) Assets measured at fair value on a non-recurring basis: Loans held for investment — — 18,098 18,098 December 31, 2022 Assets (liabilities) measured at fair value on a recurring basis: Securities available for sale: State and municipal $ — $ 225,055 $ — $ 225,055 Residential mortgage-backed securities — 328,845 — 328,845 Commercial mortgage-backed securities — 41,967 — 41,967 Collateralized mortgage obligations — 75,638 — 75,638 Asset-backed and other amortizing securities — 19,094 — 19,094 Other securities — 11,112 — 11,112 Loans held for sale (mandatory) — 10,038 — 10,038 Mortgage servicing rights — — 27,474 27,474 Asset derivatives — 21,162 — 21,162 Liability derivatives — (128 ) — (128 ) Assets measured at fair value on a non-recurring basis: Loans held for investment — — 4,821 4,821 |
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, 2023 Non-recurring: Loans held for investment $ 18,098 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 26,658 Discounted cash flows Conditional prepayment rate 7.29 % Discount rate 9.65 % December 31, 2022 Non-recurring: Loans held for investment $ 4,821 Third party appraisals or inspections Collateral discounts and selling costs 20%-100 % Recurring: Mortgage servicing rights 27,474 Discounted cash flows Conditional prepayment rate 7.47 % Discount rate 9.15 % |
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 , 2023 Financial assets: Cash and cash equivalents $ 295,581 $ 295,581 $ — $ — $ 295,581 Loans held for investment, net 2,935,926 — — 2,868,428 2,868,428 Loans held for sale (best efforts) 6,642 — 6,770 — 6,770 Accrued interest receivable 15,917 — 15,917 — 15,917 Financial liabilities: Deposits $ 3,574,522 $ — $ 3,573,886 $ — $ 3,573,886 Accrued interest payable 3,657 — 3,657 — 3,657 Junior subordinated deferrable interest debentures 46,393 — 33,042 — 33,042 Subordinated debt securities 76,054 — 66,910 — 66,910 Carrying Amount Level 1 Level 2 Level 3 Total Fair Value December 31, 2022 Financial assets: Cash and cash equivalents $ 234,883 $ 234,883 $ — $ — $ 234,883 Loans held for investment, net 2,708,793 — — 2,662,609 2,662,609 Loans held for sale (best efforts) 20,365 — 20,745 — 20,745 Accrued interest receivable 16,432 — 16,432 — 16,432 Financial liabilities: Deposits $ 3,406,430 $ — $ 3,405,222 $ — $ 3,405,222 Accrued interest payable 2,836 — 2,836 — 2,836 Junior subordinated deferrable interest debentures 46,393 — 34,606 — 34,606 Subordinated debt securities 75,961 — 70,835 — 70,835 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Apr. 01, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) Segment | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | |||||||
Retained earnings | $ 325,772 | $ 292,261 | |||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | $ 43,137 | 39,288 | $ 39,560 | $ 39,785 | $ 39,649 | $ 42,098 | |
Securities [Abstract] | |||||||
Number of days principal or interest is in default for securities to be placed on nonaccrual status | 90 days | ||||||
Loans [Abstract] | |||||||
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status | 90 days | ||||||
Allowance for Loan Losses [Abstract] | |||||||
Period for estimate of expected credit loss for each loan | 1 year | ||||||
Period of macroeconomic variables forecast | 1 year | ||||||
Off-Balance Sheet Credit Exposures [Abstract] | |||||||
Period of rolling average of historical usage used for determining utilization rates | 2 years | ||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||
Goodwill impairment loss | $ 0 | $ 0 | |||||
Segment Information [Abstract] | |||||||
Number of operating segments | Segment | 2 | ||||||
Pre-Adoption [Member] | |||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||
ACL for off-balance sheet credit exposures | $ 580 | ||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 39,288 | ||||||
Allowance for credit losses for off-balance sheet exposures | 580 | ||||||
Commercial Real Estate [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 14,501 | 13,029 | 13,381 | 13,903 | 14,621 | 17,245 | |
Commercial Real Estate [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 13,029 | ||||||
Commercial [Member] | Specialized [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 4,154 | 3,425 | 3,510 | 3,355 | 3,275 | 4,363 | |
Commercial [Member] | Specialized [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 3,425 | ||||||
Commercial [Member] | General [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 7,637 | 9,215 | 6,267 | 9,918 | 9,940 | 8,466 | |
Commercial [Member] | General [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 9,215 | ||||||
Consumer [Member] | 1-4 Family Residential [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 8,851 | 6,194 | 8,531 | 5,329 | 4,931 | 5,268 | |
Consumer [Member] | 1-4 Family Residential [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 6,194 | ||||||
Consumer [Member] | Auto Loans [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 3,900 | 3,926 | 3,714 | 3,958 | 3,681 | 3,653 | |
Consumer [Member] | Auto Loans [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 3,926 | ||||||
Consumer [Member] | Other Consumer [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 1,107 | 1,376 | 1,101 | 1,443 | 1,384 | 1,357 | |
Consumer [Member] | Other Consumer [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 1,376 | ||||||
Construction [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | $ 2,987 | 2,123 | $ 3,056 | $ 1,879 | $ 1,817 | $ 1,746 | |
Construction [Member] | Pre-Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 2,123 | ||||||
ASU 2016-13 [Member] | |||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||
ACL for off-balance sheet credit exposures | 1,740 | ||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 39,390 | ||||||
Allowance for credit losses for off-balance sheet exposures | 1,740 | ||||||
ASU 2016-13 [Member] | Impact of Adoption [Member] | |||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||
ACL for off-balance sheet credit exposures | 1,160 | ||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 102 | ||||||
Allowance for credit losses for off-balance sheet exposures | 1,160 | ||||||
ASU 2016-13 [Member] | Commercial Real Estate [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 13,856 | ||||||
ASU 2016-13 [Member] | Commercial Real Estate [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 827 | ||||||
ASU 2016-13 [Member] | Commercial [Member] | Specialized [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 3,458 | ||||||
ASU 2016-13 [Member] | Commercial [Member] | Specialized [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 33 | ||||||
ASU 2016-13 [Member] | Commercial [Member] | General [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 6,641 | ||||||
ASU 2016-13 [Member] | Commercial [Member] | General [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (2,574) | ||||||
ASU 2016-13 [Member] | Consumer [Member] | 1-4 Family Residential [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 7,894 | ||||||
ASU 2016-13 [Member] | Consumer [Member] | 1-4 Family Residential [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 1,700 | ||||||
ASU 2016-13 [Member] | Consumer [Member] | Auto Loans [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 3,594 | ||||||
ASU 2016-13 [Member] | Consumer [Member] | Auto Loans [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (332) | ||||||
ASU 2016-13 [Member] | Consumer [Member] | Other Consumer [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 1,141 | ||||||
ASU 2016-13 [Member] | Consumer [Member] | Other Consumer [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (235) | ||||||
ASU 2016-13 [Member] | Construction [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 2,806 | ||||||
ASU 2016-13 [Member] | Construction [Member] | Impact of Adoption [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 683 | ||||||
Minimum [Member] | |||||||
Allowance for Loan Losses [Abstract] | |||||||
Adjusted period for reasonable and supportable economic forecast | 1 year | ||||||
Maximum [Member] | |||||||
Allowance for Loan Losses [Abstract] | |||||||
Adjusted period for reasonable and supportable economic forecast | 2 years | ||||||
City Bank [Member] | Bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Consolidated Subsidiaries | City Bank | ||||||
Windmark [Member] | |||||||
Windmark Sale [Abstract] | |||||||
Aggregate purchase price | $ 35,500 | ||||||
Pre-tax gain on sale of subsidiary | $ 33,500 | ||||||
Ruidoso Retail, Inc. [Member] | Non-bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Consolidated Subsidiaries | Ruidoso Retail, Inc. | ||||||
CB Provence, LLC [Member] | Non-bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Consolidated Subsidiaries | CB Provence, LLC | ||||||
CBT Brushy Creek, LLC [Member] | Non-bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Consolidated Subsidiaries | CBT Brushy Creek, LLC | ||||||
CBT Properties, LLC [Member] | Non-bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Consolidated Subsidiaries | CBT Properties, LLC | ||||||
South Plains Financial Capital Trusts (SPFCT) III-V [Member] | Non-bank Subsidiary [Member] | |||||||
Subsidiaries Information [Abstract] | |||||||
Wholly-Owned, Equity Method Subsidiaries | South Plains Financial Capital Trusts (SPFCT) III-V | ||||||
Core Deposit Intangible [Member] | Maximum [Member] | |||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||
Estimated useful lives | 10 years | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | $ 102 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Real Estate [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 827 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member] | Specialized [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 33 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member] | General [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (2,574) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer [Member] | 1-4 Family Residential [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 1,700 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer [Member] | Auto Loans [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (332) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Consumer [Member] | Other Consumer [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | (235) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Construction [Member] | |||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | $ 683 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||||
Leases [Abstract] | |||||||
Retained earnings | (997) | ||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||
ACL for off-balance sheet credit exposures | 1,200 | ||||||
Adoption Impact on ACL for CECL [Abstract] | |||||||
Total allowance for credit losses on loans | 100 | ||||||
Allowance for credit losses for off-balance sheet exposures | $ 1,200 |
SECURITIES, Amortized Cost and
SECURITIES, Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale [Abstract] | ||
Amortized cost | $ 725,927 | $ 804,469 |
Gross unrealized gains | 2 | 27 |
Gross unrealized losses | (97,836) | (102,785) |
Allowance for credit losses | 0 | |
Fair value | 628,093 | 701,711 |
State and Municipal [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 206,835 | 259,429 |
Gross unrealized gains | 2 | 27 |
Gross unrealized losses | (26,442) | (34,401) |
Allowance for credit losses | 0 | |
Fair value | 180,395 | 225,055 |
Residential Mortgage-backed Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 366,207 | 386,783 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (56,020) | (57,938) |
Allowance for credit losses | 0 | |
Fair value | 310,187 | 328,845 |
Commercial Mortgage-backed Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 48,533 | 49,161 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7,315) | (7,194) |
Allowance for credit losses | 0 | |
Fair value | 41,218 | 41,967 |
Commercial Collateralized Mortgage Obligations [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 72,823 | 76,189 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (5,228) | (551) |
Allowance for credit losses | 0 | |
Fair value | 67,595 | 75,638 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 19,529 | 20,907 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,744) | (1,813) |
Allowance for credit losses | 0 | |
Fair value | 17,785 | 19,094 |
Other Securities [Member] | ||
Available for sale [Abstract] | ||
Amortized cost | 12,000 | 12,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,087) | (888) |
Allowance for credit losses | 0 | |
Fair value | $ 10,913 | $ 11,112 |
SECURITIES, Amortized Cost an_2
SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for Sale, Amortized Cost [Abstract] | ||
Within 1 year | $ 2,628 | |
After 1 year through 5 years | 5,387 | |
After 5 years through 10 years | 17,405 | |
After 10 years | 193,415 | |
Other | 507,092 | |
Amortized cost | 725,927 | $ 804,469 |
Available for Sale, Fair Value [Abstract] | ||
Within 1 year | 2,629 | |
After 1 year through 5 years | 5,119 | |
After 5 years through 10 years | 16,179 | |
After 10 years | 167,381 | |
Other | 436,785 | |
Fair value | $ 628,093 | $ 701,711 |
SECURITIES, Securities Transfer
SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) Security | Dec. 31, 2022 USD ($) 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 | $ | $ 424.1 | $ 464.1 |
SECURITIES, Securities with Unr
SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands | Jun. 30, 2023 USD ($) Security | Dec. 31, 2022 USD ($) |
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | $ 76,903 | $ 531,308 |
12 months or more | 547,906 | 165,755 |
Total | 624,809 | 697,063 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 5,415 | 61,951 |
12 months or more | 92,421 | 40,834 |
Total | $ 97,836 | 102,785 |
Number of securities with an unrealized loss | Security | 147 | |
State and Municipal [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | $ 5,903 | 162,746 |
12 months or more | 171,217 | 57,675 |
Total | 177,120 | 220,421 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 92 | 23,538 |
12 months or more | 26,350 | 10,863 |
Total | 26,442 | 34,401 |
Residential Mortgage-backed Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 220,752 |
12 months or more | 310,178 | 108,080 |
Total | 310,178 | 328,832 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 27,967 |
12 months or more | 56,020 | 29,971 |
Total | 56,020 | 57,938 |
Commercial Mortgage-backed Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 41,966 |
12 months or more | 41,218 | 0 |
Total | 41,218 | 41,966 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 7,194 |
12 months or more | 7,315 | 0 |
Total | 7,315 | 7,194 |
Commercial Collateralized Mortgage Obligations [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 67,595 | 75,638 |
12 months or more | 0 | 0 |
Total | 67,595 | 75,638 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 5,228 | 551 |
12 months or more | 0 | 0 |
Total | 5,228 | 551 |
Asset-backed and Other Amortizing Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 0 | 19,094 |
12 months or more | 17,785 | 0 |
Total | 17,785 | 19,094 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 0 | 1,813 |
12 months or more | 1,744 | 0 |
Total | 1,744 | 1,813 |
Other Securities [Member] | ||
Available for sale, Fair Value [Abstract] | ||
Less than 12 months | 3,405 | 11,112 |
12 months or more | 7,508 | 0 |
Total | 10,913 | 11,112 |
Available for sale, Unrealized Loss [Abstract] | ||
Less than 12 months | 95 | 888 |
12 months or more | 992 | 0 |
Total | $ 1,087 | $ 888 |
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, 2023 USD ($) Category | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | $ 2,979,063 | $ 2,748,081 | ||||
Allowance for credit losses on loans | (43,137) | $ (39,560) | (39,288) | $ (39,785) | $ (39,649) | $ (42,098) |
Loans held for investment, net | 2,935,926 | 2,708,793 | ||||
Commercial Real Estate [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 1,006,909 | 919,358 | ||||
Allowance for credit losses on loans | $ (14,501) | (13,381) | (13,029) | (13,903) | (14,621) | (17,245) |
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 | $ 355,252 | 327,513 | ||||
Allowance for credit losses on loans | (4,154) | (3,510) | (3,425) | (3,355) | (3,275) | (4,363) |
Commercial [Member] | General [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 551,096 | 484,783 | ||||
Allowance for credit losses on loans | (7,637) | (6,267) | (9,215) | (9,918) | (9,940) | (8,466) |
Consumer [Member] | 1-4 Family Residential [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 522,472 | 460,124 | ||||
Allowance for credit losses on loans | (8,851) | (8,531) | (6,194) | (5,329) | (4,931) | (5,268) |
Consumer [Member] | Auto Loans [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 318,126 | 321,476 | ||||
Allowance for credit losses on loans | (3,900) | (3,714) | (3,926) | (3,958) | (3,681) | (3,653) |
Consumer [Member] | Other Consumer [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 79,795 | 81,308 | ||||
Allowance for credit losses on loans | (1,107) | (1,101) | (1,376) | (1,443) | (1,384) | (1,357) |
Construction [Member] | ||||||
Summary of Loans Held for Investment by Category [Abstract] | ||||||
Loans, gross | 145,413 | 153,519 | ||||
Allowance for credit losses on loans | $ (2,987) | $ (3,056) | $ (2,123) | $ (1,879) | $ (1,817) | $ (1,746) |
LOANS HELD FOR INVESTMENT, Acti
LOANS HELD FOR INVESTMENT, Activity in ACL for Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||
LOANS HELD FOR INVESTMENT [Abstract] | ||||||||
Ratio of ACL for loans to loans held for investment | 1.45% | 1.45% | 1.43% | |||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | $ 39,560,000 | $ 39,649,000 | $ 39,288,000 | $ 42,098,000 | ||||
Provision for credit losses | 3,960,000 | [1] | 0 | [1] | 4,760,000 | [2] | (2,085,000) | |
Charge-offs | (555,000) | (553,000) | (1,494,000) | (1,210,000) | ||||
Recoveries | 172,000 | 689,000 | 481,000 | 982,000 | ||||
Ending Balance | 43,137,000 | 39,785,000 | 43,137,000 | 39,785,000 | ||||
Provision for credit loss on loans including off-balance sheet credit exposures | 3,700,000 | 0 | 4,710,000 | (2,085,000) | ||||
Provision for off-balance sheet credit exposures | (260,000) | (50,000) | ||||||
Changes in ACL impacted by net charge offs | 1,000 | |||||||
Increase of ACL for credit losses on loans individually analyzed | 1,300,000 | |||||||
Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | 102,000 | 102,000 | ||||||
Commercial Real Estate [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 13,381,000 | 14,621,000 | 13,029,000 | 17,245,000 | ||||
Provision for credit losses | 1,120,000 | [1] | (1,111,000) | [1] | 645,000 | [2] | (3,760,000) | |
Charge-offs | 0 | 0 | 0 | 0 | ||||
Recoveries | 0 | 393,000 | 0 | 418,000 | ||||
Ending Balance | 14,501,000 | 13,903,000 | 14,501,000 | 13,903,000 | ||||
Commercial Real Estate [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | 827,000 | 827,000 | ||||||
Commercial [Member] | Specialized [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 3,510,000 | 3,275,000 | 3,425,000 | 4,363,000 | ||||
Provision for credit losses | 626,000 | [1] | 71,000 | [1] | 616,000 | [2] | (1,013,000) | |
Charge-offs | 0 | (68,000) | 0 | (106,000) | ||||
Recoveries | 18,000 | 77,000 | 80,000 | 111,000 | ||||
Ending Balance | 4,154,000 | 3,355,000 | 4,154,000 | 3,355,000 | ||||
Commercial [Member] | Specialized [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | 33,000 | 33,000 | ||||||
Commercial [Member] | General [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 6,267,000 | 9,940,000 | 9,215,000 | 8,466,000 | ||||
Provision for credit losses | 1,478,000 | [1] | (149,000) | [1] | 1,242,000 | [2] | 1,510,000 | |
Charge-offs | (169,000) | (8,000) | (369,000) | (315,000) | ||||
Recoveries | 61,000 | 135,000 | 123,000 | 257,000 | ||||
Ending Balance | 7,637,000 | 9,918,000 | 7,637,000 | 9,918,000 | ||||
Commercial [Member] | General [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | (2,574,000) | (2,574,000) | ||||||
Consumer [Member] | 1-4 Family Residential [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 8,531,000 | 4,931,000 | 6,194,000 | 5,268,000 | ||||
Provision for credit losses | 318,000 | [1] | 397,000 | [1] | 954,000 | [2] | 99,000 | |
Charge-offs | 0 | 0 | 0 | (40,000) | ||||
Recoveries | 2,000 | 1,000 | 3,000 | 2,000 | ||||
Ending Balance | 8,851,000 | 5,329,000 | 8,851,000 | 5,329,000 | ||||
Consumer [Member] | 1-4 Family Residential [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | 1,700,000 | 1,700,000 | ||||||
Consumer [Member] | Auto Loans [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 3,714,000 | 3,681,000 | 3,926,000 | 3,653,000 | ||||
Provision for credit losses | 332,000 | [1] | 314,000 | [1] | 630,000 | [2] | 382,000 | |
Charge-offs | (157,000) | (69,000) | (411,000) | (155,000) | ||||
Recoveries | 11,000 | 32,000 | 87,000 | 78,000 | ||||
Ending Balance | 3,900,000 | 3,958,000 | 3,900,000 | 3,958,000 | ||||
Consumer [Member] | Auto Loans [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | (332,000) | (332,000) | ||||||
Consumer [Member] | Other Consumer [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 1,101,000 | 1,384,000 | 1,376,000 | 1,357,000 | ||||
Provision for credit losses | 155,000 | [1] | 250,000 | [1] | 220,000 | [2] | 398,000 | |
Charge-offs | (229,000) | (242,000) | (442,000) | (428,000) | ||||
Recoveries | 80,000 | 51,000 | 188,000 | 116,000 | ||||
Ending Balance | 1,107,000 | 1,443,000 | 1,107,000 | 1,443,000 | ||||
Consumer [Member] | Other Consumer [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | (235,000) | (235,000) | ||||||
Construction [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Beginning Balance | 3,056,000 | 1,817,000 | 2,123,000 | 1,746,000 | ||||
Provision for credit losses | (69,000) | [1] | 228,000 | [1] | 453,000 | [2] | 299,000 | |
Charge-offs | 0 | (166,000) | (272,000) | (166,000) | ||||
Recoveries | 0 | 0 | 0 | 0 | ||||
Ending Balance | 2,987,000 | $ 1,879,000 | 2,987,000 | $ 1,879,000 | ||||
Construction [Member] | Impact of CECL Adoption [Member] | ||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Ending Balance | $ 683,000 | $ 683,000 | ||||||
[1]The $3.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.0 million provision for credit losses on loans and a $(260) thousand provision for off-balance sheet credit exposures for the three months ended June 30, 2023.[2]The $4.7 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.8 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the six months ended June 30, 2023. |
LOANS HELD FOR INVESTMENT, Reco
LOANS HELD FOR INVESTMENT, Recorded Investment in Loans and Related ACL on Loans Recorded Disaggregated (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | $ 19,543 | $ 5,106 |
Collectively Evaluated - Probability of Default | 2,742,975 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1,445 | 285 |
Collectively Evaluated - Probability of Default | 39,003 | |
Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 9,101 | |
Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 10,250 | |
Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 192 | |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 730 | 0 |
Collectively Evaluated - Probability of Default | 919,358 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 13,029 | |
Commercial Real Estate [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 175 | |
Commercial Real Estate [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 525 | |
Commercial Real Estate [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 30 | |
Commercial [Member] | Specialized [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 327,513 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 3,425 | |
Commercial [Member] | Specialized [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | Specialized [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | Specialized [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | General [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 18,065 | 3,350 |
Collectively Evaluated - Probability of Default | 481,433 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1,362 | 22 |
Collectively Evaluated - Probability of Default | 9,193 | |
Commercial [Member] | General [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 8,179 | |
Commercial [Member] | General [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 9,724 | |
Commercial [Member] | General [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 162 | |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 748 | 742 |
Collectively Evaluated - Probability of Default | 459,382 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 83 | 18 |
Collectively Evaluated - Probability of Default | 6,176 | |
Consumer [Member] | 1-4 Family Residential [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 747 | |
Consumer [Member] | 1-4 Family Residential [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1 | |
Consumer [Member] | 1-4 Family Residential [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 321,476 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 3,926 | |
Consumer [Member] | Auto Loans [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 81,308 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 1,376 | |
Consumer [Member] | Other Consumer [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 1,014 |
Collectively Evaluated - Probability of Default | 152,505 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 245 |
Collectively Evaluated - Probability of Default | $ 1,878 | |
Construction [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | $ 0 |
LOANS HELD FOR INVESTMENT, Impa
LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | $ 5,106 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 1,971 |
Recorded Investment With Allowance | 3,135 |
Total Recorded Investment | 5,106 |
Related Allowance | 285 |
Average Recorded Investment | 6,439 |
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 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 551 |
Commercial [Member] | Specialized [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Commercial [Member] | General [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 3,350 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 799 |
Recorded Investment With Allowance | 2,551 |
Total Recorded Investment | 3,350 |
Related Allowance | 22 |
Average Recorded Investment | 4,214 |
Consumer [Member] | 1-4 Family Residential [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 742 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 486 |
Recorded Investment With Allowance | 256 |
Total Recorded Investment | 742 |
Related Allowance | 18 |
Average Recorded Investment | 1,167 |
Consumer [Member] | Auto Loans [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Consumer [Member] | Other Consumer [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Construction [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 1,014 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 686 |
Recorded Investment With Allowance | 328 |
Total Recorded Investment | 1,014 |
Related Allowance | 245 |
Average Recorded Investment | $ 507 |
LOANS HELD FOR INVESTMENT, Age
LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 2,979,063 | $ 2,748,081 |
Nonaccrual | 16,561 | 5,802 |
Nonaccrual with no ACL | 261 | |
Nonaccrual mortgage loans held for sale | 0 | 0 |
30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 4,795 | 5,951 |
90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 4,478 | 1,987 |
Commercial Real Estate [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 1,006,909 | 919,358 |
Nonaccrual | 0 | 0 |
Nonaccrual with no ACL | 0 | |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 65 | 342 |
Commercial Real Estate [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 91 | 27 |
Commercial [Member] | Specialized [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 355,252 | 327,513 |
Nonaccrual | 249 | 38 |
Nonaccrual with no ACL | 0 | |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 230 | 25 |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 11 | 13 |
Commercial [Member] | General [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 551,096 | 484,783 |
Nonaccrual | 14,078 | 3,357 |
Nonaccrual with no ACL | 0 | |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 335 | 1,451 |
Commercial [Member] | General [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 3,352 | 60 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 522,472 | 460,124 |
Nonaccrual | 1,977 | 1,356 |
Nonaccrual with no ACL | 261 | |
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 1,829 | 1,389 |
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 630 | 1,653 |
Consumer [Member] | Auto Loans [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 318,126 | 321,476 |
Nonaccrual | 0 | 0 |
Nonaccrual with no ACL | 0 | |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 971 | 707 |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 145 | 85 |
Consumer [Member] | Other Consumer [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 79,795 | 81,308 |
Nonaccrual | 34 | 37 |
Nonaccrual with no ACL | 0 | |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 754 | 1,487 |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 249 | 149 |
Construction [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 145,413 | 153,519 |
Nonaccrual | 223 | 1,014 |
Nonaccrual with no ACL | 0 | |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 611 | 550 |
Construction [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Amor
LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans by Credit Quality Indicator and Origination Year (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Point | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Credit Quality Indicators [Abstract] | |||||
Number of points on a grading scale for loans | Point | 13 | ||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | $ 2,979,063 | $ 2,979,063 | $ 2,748,081 | ||
Current Period Gross Charge-offs [Abstract] | |||||
Current period gross charge-offs | 555 | $ 553 | 1,494 | $ 1,210 | |
Minimum [Member] | |||||
Credit Quality Indicators [Abstract] | |||||
Non-accrual loans with direct exposure analyzed for individual evaluation | 250 | 250 | |||
Past due accruing loans closely monitored | 100 | 100 | |||
Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 2,676,234 | ||||
Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 0 | ||||
Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 71,847 | ||||
Substandard [Member] | Minimum [Member] | |||||
Credit Quality Indicators [Abstract] | |||||
Accruing loans with direct exposure that are closely monitored | 1,000 | 1,000 | |||
Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 0 | ||||
Commercial Real Estate [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 176,070 | 176,070 | |||
2022 | 297,355 | 297,355 | |||
2021 | 222,041 | 222,041 | |||
2020 | 66,144 | 66,144 | |||
2019 | 52,553 | 52,553 | |||
Prior | 189,570 | 189,570 | |||
Revolving loans | 3,176 | 3,176 | |||
Loans | 1,006,909 | 1,006,909 | 919,358 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 176,070 | 176,070 | |||
2022 | 297,336 | 297,336 | |||
2021 | 200,707 | 200,707 | |||
2020 | 64,464 | 64,464 | |||
2019 | 51,726 | 51,726 | |||
Prior | 189,162 | 189,162 | |||
Revolving loans | 3,176 | 3,176 | |||
Loans | 982,641 | 982,641 | 893,312 | ||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 19 | 19 | |||
2021 | 21,334 | 21,334 | |||
2020 | 1,680 | 1,680 | |||
2019 | 827 | 827 | |||
Prior | 408 | 408 | |||
Revolving loans | 0 | 0 | |||
Loans | 24,268 | 24,268 | 26,046 | ||
Commercial Real Estate [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | Specialized [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 80,261 | 80,261 | |||
2022 | 66,807 | 66,807 | |||
2021 | 60,673 | 60,673 | |||
2020 | 21,842 | 21,842 | |||
2019 | 13,100 | 13,100 | |||
Prior | 27,070 | 27,070 | |||
Revolving loans | 85,499 | 85,499 | |||
Loans | 355,252 | 355,252 | 327,513 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 68 | 0 | 106 | |
Commercial [Member] | Specialized [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 80,261 | 80,261 | |||
2022 | 66,731 | 66,731 | |||
2021 | 60,490 | 60,490 | |||
2020 | 21,415 | 21,415 | |||
2019 | 13,081 | 13,081 | |||
Prior | 27,015 | 27,015 | |||
Revolving loans | 85,499 | 85,499 | |||
Loans | 354,492 | 354,492 | 326,987 | ||
Commercial [Member] | Specialized [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | Specialized [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 76 | 76 | |||
2021 | 183 | 183 | |||
2020 | 427 | 427 | |||
2019 | 19 | 19 | |||
Prior | 55 | 55 | |||
Revolving loans | 0 | 0 | |||
Loans | 760 | 760 | 526 | ||
Commercial [Member] | Specialized [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | General [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,771 | 62,771 | |||
2022 | 162,128 | 162,128 | |||
2021 | 109,203 | 109,203 | |||
2020 | 40,235 | 40,235 | |||
2019 | 44,244 | 44,244 | |||
Prior | 80,856 | 80,856 | |||
Revolving loans | 51,659 | 51,659 | |||
Loans | 551,096 | 551,096 | 484,783 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 25 | ||||
2020 | 10 | ||||
2019 | 18 | ||||
Prior | 316 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 169 | 8 | 369 | 315 | |
Commercial [Member] | General [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,492 | 62,492 | |||
2022 | 150,617 | 150,617 | |||
2021 | 104,547 | 104,547 | |||
2020 | 39,728 | 39,728 | |||
2019 | 37,506 | 37,506 | |||
Prior | 74,893 | 74,893 | |||
Revolving loans | 51,304 | 51,304 | |||
Loans | 521,087 | 521,087 | 451,639 | ||
Commercial [Member] | General [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | General [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 279 | 279 | |||
2022 | 11,511 | 11,511 | |||
2021 | 4,656 | 4,656 | |||
2020 | 507 | 507 | |||
2019 | 6,738 | 6,738 | |||
Prior | 5,963 | 5,963 | |||
Revolving loans | 355 | 355 | |||
Loans | 30,009 | 30,009 | 33,144 | ||
Commercial [Member] | General [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | 1-4 Family Residential [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 66,427 | 66,427 | |||
2022 | 165,652 | 165,652 | |||
2021 | 115,532 | 115,532 | |||
2020 | 57,582 | 57,582 | |||
2019 | 38,057 | 38,057 | |||
Prior | 69,596 | 69,596 | |||
Revolving loans | 9,626 | 9,626 | |||
Loans | 522,472 | 522,472 | 460,124 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 0 | 0 | 40 | |
Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 66,427 | 66,427 | |||
2022 | 165,339 | 165,339 | |||
2021 | 114,591 | 114,591 | |||
2020 | 55,850 | 55,850 | |||
2019 | 33,736 | 33,736 | |||
Prior | 65,403 | 65,403 | |||
Revolving loans | 9,613 | 9,613 | |||
Loans | 510,959 | 510,959 | 450,034 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 313 | 313 | |||
2021 | 941 | 941 | |||
2020 | 1,732 | 1,732 | |||
2019 | 4,321 | 4,321 | |||
Prior | 4,193 | 4,193 | |||
Revolving loans | 13 | 13 | |||
Loans | 11,513 | 11,513 | 10,090 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Auto Loans [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,837 | 62,837 | |||
2022 | 153,187 | 153,187 | |||
2021 | 63,427 | 63,427 | |||
2020 | 22,721 | 22,721 | |||
2019 | 11,237 | 11,237 | |||
Prior | 4,717 | 4,717 | |||
Revolving loans | 0 | 0 | |||
Loans | 318,126 | 318,126 | 321,476 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 21 | ||||
2022 | 181 | ||||
2021 | 137 | ||||
2020 | 0 | ||||
2019 | 28 | ||||
Prior | 44 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 157 | 69 | 411 | 155 | |
Consumer [Member] | Auto Loans [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,837 | 62,837 | |||
2022 | 153,144 | 153,144 | |||
2021 | 63,162 | 63,162 | |||
2020 | 22,673 | 22,673 | |||
2019 | 11,154 | 11,154 | |||
Prior | 4,659 | 4,659 | |||
Revolving loans | 0 | 0 | |||
Loans | 317,629 | 317,629 | 321,158 | ||
Consumer [Member] | Auto Loans [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Auto Loans [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 43 | 43 | |||
2021 | 265 | 265 | |||
2020 | 48 | 48 | |||
2019 | 83 | 83 | |||
Prior | 58 | 58 | |||
Revolving loans | 0 | 0 | |||
Loans | 497 | 497 | 318 | ||
Consumer [Member] | Auto Loans [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 14,830 | 14,830 | |||
2022 | 34,475 | 34,475 | |||
2021 | 13,596 | 13,596 | |||
2020 | 4,543 | 4,543 | |||
2019 | 3,352 | 3,352 | |||
Prior | 7,346 | 7,346 | |||
Revolving loans | 1,653 | 1,653 | |||
Loans | 79,795 | 79,795 | 81,308 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 183 | ||||
2022 | 159 | ||||
2021 | 23 | ||||
2020 | 7 | ||||
2019 | 37 | ||||
Prior | 33 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 229 | 242 | 442 | 428 | |
Consumer [Member] | Other Consumer [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 14,830 | 14,830 | |||
2022 | 34,453 | 34,453 | |||
2021 | 13,564 | 13,564 | |||
2020 | 4,510 | 4,510 | |||
2019 | 3,316 | 3,316 | |||
Prior | 7,253 | 7,253 | |||
Revolving loans | 1,653 | 1,653 | |||
Loans | 79,579 | 79,579 | 81,109 | ||
Consumer [Member] | Other Consumer [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 22 | 22 | |||
2021 | 32 | 32 | |||
2020 | 33 | 33 | |||
2019 | 36 | 36 | |||
Prior | 93 | 93 | |||
Revolving loans | 0 | 0 | |||
Loans | 216 | 216 | 199 | ||
Consumer [Member] | Other Consumer [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Construction [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 24,337 | 24,337 | |||
2022 | 89,774 | 89,774 | |||
2021 | 21,144 | 21,144 | |||
2020 | 289 | 289 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 9,869 | 9,869 | |||
Loans | 145,413 | 145,413 | 153,519 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 272 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | $ 166 | 272 | $ 166 | |
Construction [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 24,337 | 24,337 | |||
2022 | 89,551 | 89,551 | |||
2021 | 21,144 | 21,144 | |||
2020 | 289 | 289 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 9,869 | 9,869 | |||
Loans | 145,190 | 145,190 | 151,995 | ||
Construction [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Construction [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 223 | 223 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 223 | 223 | 1,524 | ||
Construction [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | $ 0 | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Am_2
LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.20% | 0.28% |
Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 125 | $ 125 |
Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 5,280 | 7,500 |
Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 631 | 631 |
Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 70 | 113 |
Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 13 | 13 |
Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 52 | $ 52 |
Commercial Real Estate [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.01% | 0.01% |
Commercial Real Estate [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial Real Estate [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 96 | 96 |
Commercial Real Estate [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | Specialized [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.25% | 0.25% |
Commercial [Member] | Specialized [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 118 | $ 118 |
Commercial [Member] | Specialized [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 690 | 690 |
Commercial [Member] | Specialized [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 82 | 82 |
Commercial [Member] | Specialized [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | Specialized [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | Specialized [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.60% | 0.97% |
Commercial [Member] | General [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 2,744 | 4,726 |
Commercial [Member] | General [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 453 | 453 |
Commercial [Member] | General [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 70 | 113 |
Commercial [Member] | General [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | General [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 39 | $ 39 |
Consumer [Member] | 1-4 Family [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.04% | 0.08% |
Consumer [Member] | 1-4 Family [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 7 | $ 7 |
Consumer [Member] | 1-4 Family [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 192 | 391 |
Consumer [Member] | 1-4 Family [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 13 | $ 13 |
Consumer [Member] | Auto Loans [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0% | 0.01% |
Consumer [Member] | Auto Loans [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Auto Loans [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 39 |
Consumer [Member] | Auto Loans [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.02% | 0.02% |
Consumer [Member] | Other Consumer [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 13 | 13 |
Consumer [Member] | Other Consumer [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 1.14% | 1.14% |
Construction [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 1,654 | 1,654 |
Construction [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Perf
LOANS HELD FOR INVESTMENT, Performance of Loans Modified (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Performance of Loans Modified [Abstract] | ||
Loans modified | $ 0 | |
Nonaccrual | $ 1,708 | |
30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 226 | |
90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial Real Estate [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial Real Estate [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | Specialized [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 19 | |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | General [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 1,682 | |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 27 | |
Commercial [Member] | General [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 7 | |
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 199 | |
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Auto Loans [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Other Consumer [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Construction [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Construction [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | $ 0 |
LOANS HELD FOR INVESTMENT, Fina
LOANS HELD FOR INVESTMENT, Financial Effects of Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 2.50% | 1.91% |
Weighted-average term extension | 729 months | 542 months |
Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial Real Estate [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0% | 0% |
Weighted-average term extension | 72 months | 72 months |
Commercial Real Estate [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | Specialized [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0% | 0% |
Weighted-average term extension | 13 months | 13 months |
Commercial [Member] | Specialized [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 2.50% | 1.81% |
Weighted-average term extension | 1320 months | 835 months |
Commercial [Member] | General [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.25% | 0.25% |
Weighted-average term extension | 16 months | 13 months |
Consumer [Member] | 1-4 Family Residential [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Auto Loans [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0% | 0% |
Weighted-average term extension | 15 months | |
Consumer [Member] | Auto Loans [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 4.75% | 4.75% |
Consumer [Member] | Other Consumer [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0% | 0% |
Weighted-average term extension | 11 months | 11 months |
Construction [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Loan
LOANS HELD FOR INVESTMENT, Loans Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
LOANS HELD FOR INVESTMENT [Abstract] | |||
Loans modified for borrowers experiencing financial difficulty that subsequently defaulted | $ 0 | $ 0 | |
Loans modified as TDR | $ 0 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill [Abstract] | |||
Goodwill | $ 19,315 | $ 19,508 | |
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, net | 2,834 | 4,349 | |
Windmark [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Removal of goodwill | $ 193 | ||
Removal of other intangible assets, net of accumulated amortization | $ 942 | ||
Core Deposit Intangible [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 6,679 | 6,679 | |
Less: Accumulated amortization | (3,845) | (3,420) | |
Other intangible assets, net | 2,834 | 3,259 | |
Other Intangibles [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 0 | 2,972 | |
Less: Accumulated amortization | 0 | (1,882) | |
Other intangible assets, net | $ 0 | $ 1,090 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Mortgage Servicing Rights Asset [Roll Forward] | |||||
Beginning balance | $ 25,795 | $ 25,425 | $ 27,474 | $ 19,700 | $ 19,700 |
Additions | 463 | 930 | 734 | 2,180 | |
Valuation adjustment | 400 | 1,150 | (1,550) | 5,625 | |
Ending balance | 26,658 | $ 27,505 | 26,658 | $ 27,505 | 27,474 |
Mortgage Servicing Rights Other Information [Abstract] | |||||
Mortgage loans serviced for others | $ 2,025,210 | $ 2,025,210 | $ 2,046,490 | ||
Mortgage servicing rights asset as a percentage of serviced mortgage loans | 1.32% | 1.32% | 1.34% | ||
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract] | |||||
Weighted average constant prepayment rate | 7.29% | 7.47% | |||
Weighted average discount rate | 9.65% | 9.15% | |||
Weighted average life in years | 7 years 11 months 19 days | 7 years 10 months 28 days |
BORROWING ARRANGEMENTS, Subordi
BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Sep. 29, 2020 | Dec. 31, 2018 | |
Subordinated Debt Securities [Abstract] | ||||
Subordinated debt | $ 76,054 | $ 75,961 | ||
Subordinated Debt [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | 76,500 | 76,500 | ||
Debt issuance cost | 418 | 511 | ||
Subordinated debt | $ 76,100 | $ 76,000 | ||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 26,500 | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 12,400 | |||
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% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 14,100 | |||
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% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 50,000 | |||
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 [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | SOFR [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Term of variable rate | 3 months | |||
Basis spread on variable rate | 4.38% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years |
BORROWING ARRANGEMENTS, Notes P
BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
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, 2023 USD ($) $ / shares shares | |
Number of Shares [Roll Forward] | |
Outstanding at beginning of year (in shares) | shares | 1,354,189 |
Granted (in shares) | shares | 47,816 |
Exercised (in shares) | shares | (37,720) |
Forfeited (in shares) | shares | (1,125) |
Expired (in shares) | shares | (2,730) |
Balance at end of period (in shares) | shares | 1,360,430 |
Exercisable at end of period (in shares) | shares | 1,144,131 |
Vested at end of period (in shares) | shares | 1,144,131 |
Weighted-Average Exercise Price [Abstract] | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 16.11 |
Granted (in dollars per share) | $ / shares | 27.46 |
Exercised (in dollars per share) | $ / shares | 15.17 |
Forfeited (in dollars per share) | $ / shares | 20.19 |
Expired (in dollars per share) | $ / shares | 17.47 |
Balance at end of period (in dollars per share) | $ / shares | 16.57 |
Exercisable at end of period (in dollars per share) | $ / shares | 15.32 |
Vested at end of period (in dollars per share) | $ / shares | $ 15.32 |
Weighted Average Remaining Contractual Life in Years [Abstract] | |
Options Outstanding | 5 years 7 months 2 days |
Exercisable at end of period | 4 years 9 months 29 days |
Vested at end of period | 4 years 9 months 29 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding at beginning of year | $ | $ 8,973 |
Granted | $ | 0 |
Exercised | $ | (277) |
Forfeited | $ | (14) |
Expired | $ | (3) |
Balance at end of period | $ | 8,679 |
Exercisable at end of period | $ | 8,329 |
Vested at end of period | $ | $ 8,329 |
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, 2023 | Jun. 30, 2022 | |
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected dividend yield | 1.30% | |
Weighted average grant date fair value (in dollars per share) | $ 10.26 | $ 10.54 |
Minimum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 39.13% | 40.20% |
Expected dividend yield | 1.74% | |
Expected term | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 3.91% | 1.56% |
Maximum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 39.68% | 40.29% |
Expected dividend yield | 1.90% | |
Expected term | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 3.98% | 1.95% |
2019 Equity Incentive Plan [Member] | ||
Equity Incentive Plan [Abstract] | ||
Intrinsic value of options exercised | $ 313 | $ 74 |
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, 2023 | Jun. 30, 2022 | |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of year (in shares) | 84,342 | |
Granted (in shares) | 85,127 | |
Vested (in shares) | (38,141) | |
Forfeited (in shares) | (4,050) | |
Balance at ending of period (in shares) | 127,278 | |
Weighted-Average Exercise Price [Abstract] | ||
Outstanding at beginning of year (in dollars per share) | $ 26.76 | |
Granted (in dollars per share) | 25.33 | |
Vested (in dollars per share) | 24.4 | |
Forfeited (in dollars per share) | 25.04 | |
Balance at ending of period (in dollars per share) | $ 26.56 | |
Unrecognized compensation cost | $ 4,000 | |
Weighted average remaining period, recognition of compensation cost | 1 year 8 months 23 days | |
Fair value of restricted stock units vested | $ 930 | $ 488 |
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, 2023 | Dec. 31, 2022 |
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 | 637,400 | 682,296 |
Standby Letters of Credit [Member] | ||
Financial instruments with off-balance-sheet risk [Abstract] | ||
Financial instruments whose contract amounts represent credit risk outstanding | $ 12,779 | $ 13,864 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) Lease | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Lease | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Lessee Arrangements [Abstract] | |||||
Finance leases | $ 0 | $ 0 | $ 0 | ||
Balance Sheet Components of Leases [Abstract] | |||||
Operating lease right of use assets (included in Other assets) | $ 8,926 | $ 8,926 | $ 7,938 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | ||
Operating lease liabilities (included in Accrued expenses and other liabilities) | $ 9,863 | $ 9,863 | $ 8,897 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities | ||
Operating lease costs, including short-term lease costs | $ 954 | $ 747 | $ 1,700 | $ 1,411,000 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||||
Operating cash flows used in operating leases | 546 | 492 | 1,030 | 971 | |
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||||
Operating leases | $ 1,215 | $ 0 | $ 2,032 | $ 0 | |
Weighted average remaining lease term | 10 years 2 months 19 days | 10 years 2 months 19 days | 9 years 9 months 29 days | ||
Weighted average discount rate | 5.38% | 5.38% | 4.65% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||||
2023 | $ 955 | $ 955 | |||
2024 | 1,656 | 1,656 | |||
2025 | 1,321 | 1,321 | |||
2026 | 1,259 | 1,259 | |||
2027 | 1,209 | 1,209 | |||
Thereafter | 6,642 | 6,642 | |||
Total minimum lease payments | 13,042 | 13,042 | |||
Less: Amount representing interest | (3,179) | (3,179) | |||
Lease liabilities | $ 9,863 | $ 9,863 | $ 8,897 | ||
Leases Not yet Commenced [Abstract] | |||||
Number of additional operating leases that have not yet commenced | Lease | 0 | 0 | |||
Maximum [Member] | |||||
Lessee Arrangements [Abstract] | |||||
Termination period for leases | 1 year |
CAPITAL AND REGULATORY MATTER_2
CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Consolidated [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 597,335 | $ 559,094 |
Actual, Ratio | 0.1675 | 0.1658 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 374,384 | $ 354,045 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.105 | 0.105 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 476,708 | $ 443,265 |
Actual, Ratio | 0.1337 | 0.1315 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 303,073 | $ 286,608 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.085 | 0.085 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 431,708 | $ 398,265 |
Actual, Ratio | 0.1211 | 0.1181 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 249,589 | $ 236,030 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.07 | 0.07 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 476,706 | $ 443,265 |
Actual, Ratio | 0.1167 | 0.1103 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 164,207 | $ 161,662 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.04 | 0.04 |
City Bank [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 492,582 | $ 454,427 |
Actual, Ratio | 0.1373 | 0.1348 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 376,681 | $ 353,967 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.105 | 0.105 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 358,744 | $ 337,112 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.10 | 0.10 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1248 | 0.123 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 304,932 | $ 286,545 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.085 | 0.085 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 286,995 | $ 269,689 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.08 | 0.08 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1248 | 0.123 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 251,121 | $ 235,978 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.07 | 0.07 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 233,183 | $ 219,122 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.065 | 0.065 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1097 | 0.1032 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 164,207 | $ 161,574 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.04 | 0.04 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 204,152 | $ 200,774 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.05 | 0.05 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Interest Rate 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 | ||
Interest Rate Swaps [Member] | Other Assets [Member] | |||||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 11,803 | 11,803 | 9,493 | ||
Derivative asset, fair value | 508 | 508 | 482 | ||
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 | 26 | $ 167 | 26 | $ 625 | |
Fair value hedge ineffectiveness | (25) | (170) | (25) | (633) | |
Interest Rate Swaps [Member] | Other Noninterest Expense [Member] | |||||
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract] | |||||
Interest rate swaps - fair value hedges | 1,844 | 3,429 | (810) | 10,178 | |
Fair value hedge ineffectiveness | (1,866) | $ (3,450) | 771 | $ (10,349) | |
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 | $ 19,315 | $ 19,315 | $ 20,125 |
DERIVATIVES, Mortgage Banking D
DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
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 | 17,300 | 17,300 | |||
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 | 53,816 | 53,816 | $ 50,848 | ||
Derivative asset, fair value | 550 | 550 | 555 | ||
Mortgage Banking [Member] | Other Liabilities [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | 6,296 | 6,296 | 5,615 | ||
Derivative liability, fair value | 34 | 34 | 128 | ||
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 | 21,000 | 21,000 | 23,500 | ||
Derivative asset, fair value | 78 | 78 | 186 | ||
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 | 6,296 | 6,296 | 5,615 | ||
Derivative liability, fair value | 34 | 34 | 128 | ||
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 mortgage banking derivatives | 375 | $ 166 | 94 | $ (926) | |
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 | 32,816 | 32,816 | 27,348,000 | ||
Derivative asset, fair value | 472 | 472 | 369 | ||
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 mortgage banking derivatives | $ (428) | $ (940) | $ (5) | $ 117 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER SHARE [Abstract] | ||||
Net income | $ 29,683 | $ 15,883 | $ 38,927 | $ 30,161 |
Weighted average common shares outstanding - basic (in shares) | 17,048,432 | 17,490,706 | 17,047,578 | 17,602,798 |
Effect of dilutive securities [Abstract] | ||||
Stock-based compensation awards (in shares) | 338,083 | 529,842 | 390,779 | 609,638 |
Weighted average common shares outstanding - diluted (in shares) | 17,386,515 | 18,020,548 | 17,438,357 | 18,212,436 |
Basic earnings per share (in dollars per share) | $ 1.74 | $ 0.91 | $ 2.28 | $ 1.71 |
Diluted earnings per share (in dollars per share) | $ 1.71 | $ 0.88 | $ 2.23 | $ 1.66 |
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, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available for sale [Abstract] | ||||||
Securities available for sale | $ 628,093 | $ 701,711 | ||||
Mortgage servicing rights | 26,658 | $ 25,795 | 27,474 | $ 27,505 | $ 25,425 | $ 19,700 |
State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
Recurring [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Asset-backed and other amortizing securities | 17,785 | 19,094 | ||||
Loans held for sale (mandatory) | 15,516 | 10,038 | ||||
Mortgage servicing rights | 26,658 | 27,474 | ||||
Asset derivatives | 20,373 | 21,162 | ||||
Liability derivatives | (34) | (128) | ||||
Recurring [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Recurring [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Recurring [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Recurring [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
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] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | Commercial 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 | 17,785 | 19,094 | ||||
Loans held for sale (mandatory) | 15,516 | 10,038 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Asset derivatives | 20,373 | 21,162 | ||||
Liability derivatives | (34) | (128) | ||||
Recurring [Member] | Level 2 [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Recurring [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Recurring [Member] | Level 2 [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Recurring [Member] | Level 2 [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
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 | 26,658 | 27,474 | ||||
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] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | Commercial 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] | ||||||
Loans held for investment | 18,098 | 4,821 | ||||
Non-recurring [Member] | Level 1 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | 0 | 0 | ||||
Non-recurring [Member] | Level 2 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | 0 | 0 | ||||
Non-recurring [Member] | Level 3 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | $ 18,098 | $ 4,821 |
FAIR VALUE DISCLOSURES, Fair Va
FAIR VALUE DISCLOSURES, Fair Values of Assets Recorded on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract] | |||||
Aggregate fair value of loans held for sale for mandatory delivery | $ 15,516 | $ 15,516 | $ 10,038 | ||
Recurring [Member] | |||||
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract] | |||||
Gains or losses recorded attributable to changes in instrument-specific credit risk | 0 | 0 | |||
Aggregate fair value of loans held for sale for mandatory delivery | 15,500 | 15,500 | 10,000 | ||
Aggregate fair value of unpaid principal balance | 15,100 | 15,100 | 9,900 | ||
Fair value and unpaid principal balance difference amount | 372 | 372 | 163 | ||
Loans held for sale for mandatory delivery designated as nonaccrual | 0 | 0 | 0 | ||
Loans held for sale for mandatory delivery 90 days or more past due | 0 | 0 | $ 0 | ||
Impact of fair value options on noninterest income for loans held for sale for mandatory delivery | $ 9 | $ (471) | $ (252) | $ 1,700 |
FAIR VALUE DISCLOSURES, Quantit
FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 25,795 | $ 27,474 | $ 27,505 | $ 25,425 | $ 19,700 |
Non-recurring [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment | 18,098 | 4,821 | ||||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment | $ 18,098 | $ 4,821 | ||||
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] | ||||||
Loans held for investment, measurement input | 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] | ||||||
Loans held for investment, measurement input | 1 | 1 | ||||
Recurring [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 27,474 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 27,474 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | Constant Prepayment Rate [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights, measurement input | 0.0729 | 0.0747 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights, measurement input | 0.0965 | 0.0915 |
FAIR VALUE DISCLOSURES, Estimat
FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 295,581 | $ 234,883 |
Loans held for investment, net | 2,935,926 | 2,708,793 |
Loans held for sale (best efforts) | 6,642 | 20,365 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,574,522 | 3,406,430 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Subordinated debt securities | 76,054 | 75,961 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 295,581 | 234,883 |
Loans held for investment, net | 2,868,428 | 2,662,609 |
Loans held for sale (best efforts) | 6,770 | 20,745 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,573,886 | 3,405,222 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 33,042 | 34,606 |
Subordinated debt securities | 66,910 | 70,835 |
Level 1 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 295,581 | 234,883 |
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 | 0 |
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) | 6,770 | 20,745 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,573,886 | 3,405,222 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 33,042 | 34,606 |
Subordinated debt securities | 66,910 | 70,835 |
Level 3 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans held for investment, net | 2,868,428 | 2,662,609 |
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. 20, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends [Abstract] | |||||
Dividends declared per share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 | |
Subsequent Event [Member] | |||||
Dividends [Abstract] | |||||
Dividends declared date | Jul. 20, 2023 | ||||
Dividends declared per share (in dollars per share) | $ 0.13 | ||||
Dividends payable date | Aug. 14, 2023 | ||||
Dividends record date | Jul. 31, 2023 |