South Plains Financial (SPFI) 10-Q 7 Aug 23 2023 Q2 Quarterly report Financial data

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