Stellar Bancorp (STEL) 10-Q 30 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 26, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, Inc.
Entity Central Index Key	1,473,844
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		25,962,584
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 54,279	$ 59,255
Interest-bearing deposits at other financial institutions	190,986	266,944
Total cash and cash equivalents	245,265	326,199
Time deposits in other banks	200	600
Debt securities	230,393	223,208
Equity investments	15,038	12,226
Loans held for sale	560	1,460
Loans, net of allowance for loan loss of $25,746 and $24,778 at June 30, 2018 and December 31, 2017, respectively	2,378,386	2,286,766
Premises and equipment, net	52,607	53,607
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $14,434 and $13,930 at June 30, 2018 and December 31, 2017, respectively	6,276	6,770
Bank-owned life insurance	70,627	68,010
Deferred tax asset, net	6,922	5,780
Repossessed real estate and other assets	137	705
Other assets	13,399	14,802
Total assets	3,100,760	3,081,083
Liabilities
Noninterest-bearing deposits	1,114,155	1,109,789
Interest-bearing deposits	1,447,119	1,493,183
Total deposits	2,561,274	2,602,972
Repurchase agreements	1,448	1,525
Federal Home Loan Bank advances	50,000
Junior subordinated debt	6,726	6,726
Other liabilities	20,117	23,646
Total liabilities	2,639,565	2,634,869
Commitments and contingencies (Note 13)
Shareholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued
Common stock, $0.01 par value; 90,000,000 shares authorized, 25,731,504 shares issued at June 30, 2018 and December 31, 2017, 24,858,632 and 24,833,232 shares outstanding at June 30, 2018 and December 31, 2017, respectively	257	257
Additional paid-in capital	343,807	343,249
Retained earnings	136,000	118,353
Treasury stock, at cost (872,872 and 898,272 shares held at June 30, 2018 and December 31, 2017, respectively)	(14,825)	(15,256)
Accumulated other comprehensive loss, net of tax of $1,075 and $104 at June 30, 2018 and December 31, 2017, respectively	(4,044)	(389)
Total shareholders' equity	461,195	446,214
Total liabilities and shareholders' equity	$ 3,100,760	$ 3,081,083

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Allowance of loan loss	$ 25,746	$ 24,778
Accumulated amortization	$ 14,434	$ 13,930
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	90,000,000	90,000,000
Common stock, shares issued	25,731,504	25,731,504
Common stock, shares outstanding	24,858,632	24,833,232
Treasury stock, shares	872,872	898,272
Accumulated other comprehensive loss, tax	$ 1,075	$ 104

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income
Interest and fees on loans	$ 30,493	$ 26,560	$ 58,955	$ 52,513
Debt securities	1,507	1,353	2,943	2,656
Federal Funds and interest-bearing deposits	1,127	813	2,314	1,555
Total Interest Income	33,127	28,726	64,212	56,724
Interest expense
Deposits	2,126	1,857	4,074	3,695
Repurchase agreements	1	1	2	3
Federal Home Loan Bank advances	12		12
Note payable	3	264	7	515
Junior subordinated debt	109	79	202	153
Total interest expense	2,251	2,201	4,297	4,366
Net interest income	30,876	26,525	59,915	52,358
Provision (recapture) for loan losses	690	(694)	1,555	266
Net interest income after provision for loan losses	30,186	27,219	58,360	52,092
Noninterest income
Deposit account service charges	1,497	1,517	2,975	3,017
Net gain on sale of assets	210	339	340	703
Card interchange fees	971	877	1,898	1,709
Earnings on bank-owned life insurance	465	335	916	661
Other	363	458	738	884
Total noninterest Income	3,506	3,526	6,867	6,974
Noninterest expense
Salaries and employee benefits	12,496	11,299	25,191	22,723
Net occupancy expense	2,433	2,351	4,698	4,584
Regulatory fees	513	621	1,058	1,231
Data processing	666	651	1,349	1,293
Printing, stationery and office	480	370	891	717
Amortization of intangibles	248	271	503	549
Professional and director fees	686	706	1,605	1,331
Correspondent bank and customer related transaction expenses	68	78	135	152
Loan processing costs	75	133	193	205
Advertising, marketing and business development	475	508	981	687
Repossessed real estate and other asset expense	5	85	62	203
Security and protection expense	311	352	613	724
Telephone and communications	394	307	780	661
Other expenses	1,162	1,127	2,237	2,226
Total noninterest Expense	20,012	18,859	40,296	37,286
Net income before income tax expense	13,680	11,886	24,931	21,780
Income tax expense	2,638	3,181	4,777	6,213
Net income	$ 11,042	$ 8,705	$ 20,154	$ 15,567
Earnings per common share
Basic	$ 0.44	$ 0.39	$ 0.81	$ 0.71
Diluted	$ 0.44	$ 0.39	$ 0.81	$ 0.70

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 11,042	$ 8,705	$ 20,154	$ 15,567
Unrealized gains (losses) on debt securities available for sale arising during the period, net	(961)	1,055	(4,626)	1,420
Reclassification adjustment for net realized gains included in net income		14		14
Change in related deferred income tax	201	(374)	971	(501)
Other comprehensive income (loss), net of tax	(760)	695	(3,655)	933
Total comprehensive income	$ 10,282	$ 9,400	$ 16,499	$ 16,500

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2016	$ 230	$ 278,501	$ 95,274	$ (15,446)	$ (922)	$ 357,637
Beginning balance, shares at Dec. 31, 2016	22,971,504			(909,432)
Net income			15,567			15,567
Dividends on common stock			(2,206)			(2,206)
Stock-based compensation expense		16				16
Exercise of stock options				$ 17		17
Exercise of stock options (in shares)				1,000
Other comprehensive income, net of tax					933	933
Ending balance at Jun. 30, 2017	$ 230	278,517	108,635	$ (15,429)	11	371,964
Ending balance, shares at Jun. 30, 2017	22,971,504			(908,432)
Beginning balance at Dec. 31, 2017	$ 257	343,249	118,353	$ (15,256)	(389)	446,214
Beginning balance, shares at Dec. 31, 2017	25,731,504			(898,272)
Net income			20,154			20,154
Dividends on common stock			(2,507)			(2,507)
Stock-based compensation expense		739				739
Exercise of stock options		(181)		$ 431		250
Exercise of stock options (in shares)				25,400
Other comprehensive income, net of tax					(3,655)	(3,655)
Ending balance at Jun. 30, 2018	$ 257	$ 343,807	$ 136,000	$ (14,825)	$ (4,044)	$ 461,195
Ending balance, shares at Jun. 30, 2018	25,731,504			(872,872)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parentheticals) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.10

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 20,154	$ 15,567
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for loan losses	1,555	266
Depreciation	1,652	1,703
Deferred income tax provision	171	334
Amortization of intangibles	503	549
Valuation adjustments on repossessed real estate and other assets		51
Net realized gains on debt securities	(12)	(25)
Net gains on sales of assets	(340)	(703)
Earnings on bank-owned life insurance	(916)	(661)
Amortization of premiums on securities	574	625
Stock-based compensation expense	739	16
Change in operating assets and liabilities:
Loans held for sale	1,095	274
Other assets	1,055	359
Other liabilities	(4,824)	(696)
Total adjustments	1,252	2,092
Net cash provided by operating activities	21,406	17,659
Cash flows from investing activities:
Purchases of debt securities	(175,549)	(178,534)
Proceeds from sales, calls and maturities of debt securities	154,050	155,230
Principal repayments of debt securities	10,397	9,403
Net contributions to equity investments	(2,812)	(25)
Net decrease in time deposits in other banks	400
Net increase in loans	(109,272)	(63,929)
Sales of loan participations	35,000	24,978
Purchases of loan participations	(20,446)	(1,297)
Sales of U.S. Small Business Administration loans	1,534	2,173
Purchase of bank-owned life insurance	(1,700)	(15,000)
Proceeds from sales of repossessed real estate and other assets	719	1,900
Purchases of premises and equipment	(653)	(627)
Proceeds from sales of premises and equipment		580
Net cash used in investing activities	(108,332)	(65,148)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	4,366	5,440
Net decrease in interest-bearing deposits	(46,064)	(29,416)
Net decrease in securities sold under agreements to repurchase	(77)	(164)
Proceeds from exercise of stock options	250	17
Net increase in Federal Home Loan Bank advances	50,000
Repayments of note payable		(2,215)
Dividends paid on common stock	(2,483)	(1,103)
Net cash provided by (used in) financing activities	5,992	(27,441)
Net decrease in cash, cash equivalents and restricted cash	(80,934)	(74,930)
Cash, cash equivalents and restricted cash, beginning	326,199	382,103
Cash, cash equivalents and restricted cash, ending	$ 245,265	$ 307,173

BASIS OF PRESENTATION, NATURE O

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES	6 Months Ended
	Jun. 30, 2018
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES	NOTE 1: BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations CBTX, Inc., or the Company, was formed on January 26, 2007, and through its subsidiary, CommunityBank of Texas, N.A., or the Bank, operates 33 locations in the Houston and Beaumont/East Texas market areas. The Company’s primary sources of revenue are from investing funds received from depositors and from providing loan and other financial services to its customers. The Bank operates under a national charter and therefore is subject to regulation by the Office of the Comptroller of the Currency, or OCC and the Federal Deposit Insurance Corporation, or FDIC. The Company is subject to regulation by the Federal Reserve Board. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank, a wholly owned subsidiary of the Company. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at June 30, 2018 and December 31, 2017, consolidated results of operations for the three and six months ended June 30, 2018 and 2017, consolidated shareholders’ equity for the six months ended June 30, 2018 and 2017 and consolidated cash flows for the six months ended June 30, 2018 and 2017. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2017 included within our Annual Report on Form 10-K. Accounting Standards Recently Adopted Accounting Standards Update, or ASU, 2014‑09, Revenue from Contracts with Customers (Topic 606): ASU 2014‑09 requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 effective January 1, 2018 with no significant impact to the Company’s consolidated financial statements as the Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014‑09 and noninterest income. The Company’s revenue recognition for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposits accounts, did not materially change from previous practice. ASU, 2016‑01, Financial Instruments‑Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016‑01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) clarifies that entities use the exit price notion when measuring the fair value of loans for disclosure purposes and not use a practicability exception, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument‑specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available‑for‑sale investments. ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) clarifies certain aspects of ASU 2016-01. The Company implemented ASU 2016-01 and ASU 2018-03 effective January 1, 2018 with no significant impact to the Company’s consolidated financial statements. See Note 12 – Fair Value Disclosures. ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016‑15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. The Company implemented ASU 2016‑15 effective January 1, 2018. The Company has elected to use the nature of distribution approach to determine whether income received from equity investments is operating or investing on the cash flow statement. Based on the nature of previous income streams from our equity investments, we expect these amounts will continue to be reported in cash provided by operating activities on the cash flow statement and the other items in ASU 2016-15 will be considered if such items arise. ASU 2016‑16, Income Taxes (Topic 740): Intra‑Entity Transfers of Assets Other Than Inventory . ASU 2016‑16 provides guidance stating that an entity should recognize the income tax consequences of an intra‑entity transfer of an asset other than inventory when the transfer occurs. The Company implemented ASU 2016‑16 effective January 1, 2018. As we have not historically transferred assets between entities, we expect no material impact on the consolidated financial statements and will follow this guidance for any future intra-entity transfers of assets other than inventory. ASU 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016‑18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning‑of‑period and end‑of‑period total amounts shown on the statement of cash flows. The Company implemented ASU 2016‑18 effective January 1, 2018. The Company considers its Federal Bank reserves and collateral for its interest rate swaps to be restricted and these amounts were already included in cash and equivalents in the consolidated financial statements. ASU 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017‑01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017‑01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company implemented ASU 2017‑01 effective January 1, 2018 and will follow this guidance for any future acquisitions or dispositions. ASU 2017‑09, Compensation—Stock Compensation (Topic 718): ASU 2017-09 provides guidance about which changes in terms or conditions of a share‑based award require application of modification accounting. The Company implemented ASU 2017‑09 effective January 1, 2018 and will follow this guidance for any future modifications of share-based awards. Accounting Standards Not Yet Adopted ASU 2016‑02 , Leases (Topic 842): ASU 2016‑02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016‑02 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company’s implementation of ASU 2016-02 will result in an increase in assets due to the addition of right-of-use assets for assets underlying its operating leases and an increase in liabilities reflecting the Company’s liability to make the lease payments under these leases. The Company is currently evaluating the impact of these adjustments on the consolidated financial statements. ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016‑13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016‑13 amends the accounting for credit losses on available‑for‑sale debt securities and purchased financial assets with credit deterioration. ASU 2016‑13 will be effective on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016‑13 on the consolidated financial statements. ASU 2017‑04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For public companies, ASU 2017‑04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of this pronouncement. Revenue Recognition The Company records revenue from contracts with customers in accordance with ASU 2014-09, as applicable. A majority of the Company’s revenue-generating transactions are not subject to ASU 2014-09, such as interest and fees on loans, income from debt securities, income from federal funds and interest-bearing deposits. Our revenue-generating activities that are within the scope of ASU 2014-09, are included in our condensed consolidated income statements in noninterest income. See table below. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Six Months Ended June 30, (Dollars in thousands) 2018 2017 Deposit account service charges $ 2,975 $ 3,017 Net gain on sale of assets 340 703 Card interchange fees 1,898 1,709 Deposit account service charges — – this is comprised of fees from our customers for deposit related services, such as monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. Net gain on sale of assets — – this is comprised of gains on sales of fixed assets, gains on sales of loans and gains on sales of other real estate owned, or OREO. Gains on sales of loans are excluded from ASU 2014-09. The performance obligation in the sale of OREO or fixed assets is delivery of control over the property to the buyer. The Company does not typically provide financing and the transaction price is identified in the purchase and sale agreement. If the Company provides financing, the Company must determine a transaction price depending on if the sales contract is at market terms and taking into account the credit risk inherent in the sale agreement. Card interchange fees — – this is comprised of fees generated from debit card transactions. Revenue is recognized when our performance obligation is completed generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.9 million and $15.8 million at June 30, 2018 and December 31, 2017, respectively. Additionally, as of June 30, 2018 and December 31, 2017, the Company had $1.6 million in cash collateral used in our interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Six Months Ended June 30, (Dollars in thousands) 2018 2017 Supplemental disclosures of cash flow information: Cash paid for taxes $ 3,928 $ 5,550 Cash paid for interest on deposits and repurchase agreements 4,062 3,751 Cash paid for interest on notes payable — 512 Cash paid for interest on junior subordinated debt 187 149 Supplemental disclosures of non-cash flow information: Dividends accrued for restricted stock 33 — Repossessed real estate and other assets 137 583

DEBT SECURITIES

DEBT SECURITIES	6 Months Ended
	Jun. 30, 2018
DEBT SECURITIES.
DEBT SECURITIES	NOTE 2: DEBT SECURITIES The amortized cost and fair values of investments in debt securities as of the dates shown below were as follows: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2018 Debt securities available for sale: State and municipal securities $ 61,355 $ 413 $ (660) $ 61,108 U.S. agency securities: Debt securities 17,315 — (584) 16,731 Collateralized mortgage obligations 67,554 17 (1,747) 65,824 Mortgage-backed securities 88,140 153 (2,668) 85,625 Other securities 1,116 — (43) 1,073 Total $ 235,480 $ 583 $ (5,702) $ 230,361 Debt securities held to maturity: Mortgage-backed securities $ 32 $ 2 $ — $ 34 December 31, 2017 Debt securities available for sale: State and municipal securities $ 60,861 $ 1,173 $ (118) $ 61,916 U.S. agency securities: Debt securities 17,315 — (370) 16,945 Collateralized mortgage obligations 61,878 50 (675) 61,253 Mortgage-backed securities 82,510 330 (866) 81,974 Other securities 1,104 — (17) 1,087 Total $ 223,668 $ 1,553 $ (2,046) $ 223,175 Debt securities held to maturity: Mortgage-backed securities $ 33 $ 2 $ — $ 35 The amortized cost and estimated fair value of debt securities, by contractual maturity, as of the dates shown below are as follows: The amortized cost and estimated fair value of debt securities, by contractual maturity, as of the dates shown below are as follows: Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value June 30, 2018 Amounts maturing in: 1 year or less $ 3,246 $ 3,210 $ — $ — 1 year through 5 years 27,143 26,622 — — 5 years through 10 years 8,409 8,500 — — After 10 years 196,682 192,029 32 34 $ 235,480 $ 230,361 $ 32 $ 34 December 31, 2017 Amounts maturing in: 1 year or less $ 6,203 $ 6,194 $ — $ — 1 year through 5 years 26,811 26,635 — — 5 years through 10 years 9,215 9,348 — — After 10 years 181,439 180,998 33 35 $ 223,668 $ 223,175 $ 33 $ 35 Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were no security sales during the six months ended June 30, 2018. Securities with a carrying amount of $444,000 were sold in the six months ended June 30, 2017. At June 30, 2018 and December 31, 2017, debt securities with a carrying amount of approximately $44.5 million and $58.7 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The Company held 52 debt securities at June 30, 2018 and December 31, 2017, that were in a gross unrealized loss position for 12 months or more as illustrated in the table below. The unrealized losses are attributable primarily to changes in market interest rates relative to those available when the debt securities were acquired. The fair value of these debt securities is expected to recover as the debt securities reach their maturity or re‑pricing date, or if changes in market rates for such investments decline. Management does not believe that any of the debt securities are impaired due to reasons of credit quality. Accordingly, as of June 30, 2018 and December 31, 2017, management believes the unrealized losses detailed in the table below are temporary and no impairment loss has been recorded in the Company’s condensed consolidated statements of income for the six months ended June 30, 2018 and 2017. Debt securities with unrealized losses as of the dates shown below, aggregated by category and the length of time were as follows: Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses June 30, 2018 Debt securities available for sale: State and municipal securities $ 20,232 $ (369) $ 6,305 $ (291) U.S. agency securities: Debt securities 4,396 (123) 12,335 (461) Collateralized mortgage obligations 53,589 (1,249) 9,118 (498) Mortgage-backed securities 42,385 (1,096) 29,666 (1,572) Other securities — — 1,073 (43) $ 120,602 $ (2,837) $ 58,497 $ (2,865) December 31, 2017 Debt securities available for sale: State and municipal securities $ 2,494 $ (3) $ 6,516 $ (115) U.S. agency securities: Debt securities 4,464 (55) 12,481 (315) Collateralized mortgage obligations 44,116 (380) 9,938 (295) Mortgage-backed securities 22,079 (123) 32,538 (743) Other securities — — 1,087 (17) $ 73,153 $ (561) $ 62,560 $ (1,485)

LOANS

LOANS	6 Months Ended
	Jun. 30, 2018
LOANS
LOANS	NOTE 3: LOANS Loans by loan class as of the dates shown below were as follows: (Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 565,850 23.5 % $ 559,363 24.1 % Real estate: Commercial real estate 780,224 32.4 % 738,293 31.9 % Construction and development 449,390 18.6 % 449,211 19.4 % 1-4 family residential 279,227 11.6 % 258,584 11.2 % Multi-family residential 229,609 9.5 % 220,305 9.5 % Consumer 41,833 1.7 % 40,433 1.7 % Agriculture 10,951 0.5 % 11,256 0.5 % Other 53,376 2.2 % 40,344 1.7 % Total gross loans 2,410,460 100.0 % 2,317,789 100.0 % Less deferred loan fees (5,546) (4,555) Less unearned discount on retained portion of loans sold (222) (230) Less allowance for loan loss (25,746) (24,778) Total loans, net 2,378,946 2,288,226 Less loans held for sale 560 1,460 Loans, net $ 2,378,386 $ 2,286,766 Accrued interest receivable for loans is $6.6 million and $6.1 million at June 30, 2018 and December 31, 2017, respectively and is included in other assets in the condensed consolidated balance sheets. Loan Participations Purchased and Sold From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the six months ending June 30, 2018 and 2017, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period June 30, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate 13,446 35,000 $ 20,446 $ 35,000 June 30, 2017 Commercial and industrial $ — $ 10,230 Commercial real estate — 12,298 Construction and development 1,297 2,450 $ 1,297 $ 24,978 Loans Guaranteed by the Small Business Administration The Company participates in the Small Business Administration, or SBA, loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the six months ended June 30, 2018 and 2017 totaled $1.5 million and $2.2 million, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	6 Months Ended
	Jun. 30, 2018
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 4: LOAN PERFORMANCE Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 1,734 $ 3,280 Real estate: Commercial real estate 2,092 3,216 Construction and development 225 252 1-4 family residential 738 898 Consumer 4 — Total $ 4,793 $ 7,646 Interest income that would have been earned under the original terms of the nonaccrual loans was $139,000 and $91,000 for the six months ended June 30, 2018 and 2017, respectively. The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below. 90 days or 90 days 30 to 59 days 60 to 89 days greater Total past Total current past due and (Dollars in thousands) past due past due past due due loans Total loans still accruing June 30, 2018 Commercial and industrial $ 383 $ 210 $ 1,422 $ 2,015 $ 563,835 $ 565,850 $ — Real estate: Commercial real estate 111 576 1,903 2,590 777,634 780,224 — Construction and development 644 — — 644 448,746 449,390 — 1-4 family residential 17 116 35 168 279,059 279,227 — Multi-family residential — — — — 229,609 229,609 — Consumer 150 — — 150 41,683 41,833 — Agriculture — — — — 10,951 10,951 — Other 6 — — 6 53,370 53,376 — Total loans $ 1,311 $ 902 $ 3,360 $ 5,573 $ 2,404,887 $ 2,410,460 $ — December 31, 2017 Commercial and industrial $ 943 $ 1,071 $ 2,535 $ 4,549 $ 554,814 $ 559,363 $ — Real estate: Commercial real estate 337 841 1,866 3,044 735,249 738,293 — Construction and development 400 — — 400 448,811 449,211 — 1-4 family residential 807 — 143 950 257,634 258,584 — Multi-family residential — — — — 220,305 220,305 — Consumer 3 25 — 28 40,405 40,433 — Agriculture — — — — 11,256 11,256 — Other — — — — 40,344 40,344 — Total loans $ 2,490 $ 1,937 $ 4,544 $ 8,971 $ 2,308,818 $ 2,317,789 $ — Loans, segregated by loan class, which were restructured due to the borrower’s financial difficulties during the six months ended June 30, 2018 and 2017, which remain outstanding at the end of those periods were as follows: Post-modification recorded investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments and Number Recorded Restructured Extended Restructured Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate June 30, 2018 Commercial and industrial 4 $ 986 $ 936 $ — $ 50 $ — Commercial real estate 4 2,399 2,399 — — — Total 8 $ 3,385 $ 3,335 $ — $ 50 $ — June 30, 2017 Commercial and industrial 4 $ 2,203 $ 2,019 $ — $ 184 $ — Commercial real estate 3 994 277 717 — — Total 7 $ 3,197 $ 2,296 $ 717 $ 184 $ — Typical modifications primarily relate to extending the amortization periods of the loans, converting the loans to interest only, or adjusting payment amounts for principal and interest. A significant portion of the loans modified as troubled debt restructurings by the Company were previously on nonaccrual status and reported as impaired loans prior to restructuring and as a result, the modifications did not impact the Company’s determination of the allowance for loan losses. The recorded investment in troubled debt restructurings was $16.9 million and $18.2 million as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018 and December 31, 2017, $3.5 million and $4.8 million of restructured loans were nonaccrual loans and $13.4 million and $13.4 million of restructured loans were accruing interest as of those periods. At June 30, 2018, the Company has an outstanding commitment to potentially fund $81,000 on a line of credit restructured prior to 2018. At December 31, 2017, the Company had no commitments to loan additional funds to borrowers with loans that were restructured. There were no loans modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. For purposes of this disclosure, a default is a loan modified as a troubled debt restructuring where the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2018
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES	NOTE 5: ALLOWANCE FOR LOAN LOSSES For purposes of determining the allowance for loan losses, the Company considers the loans in its portfolio by segment, class and risk grade. Management uses judgment to determine the estimation method that fits the credit risk characteristics of each portfolio segment or class. To facilitate the assessment of risk, management reviews reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. The Company utilizes an independent third-party loan review service to review the credit risk assigned to loans on a periodic basis and the results are presented to management for review. Activity in the allowance for loan losses segregated by loan class for the six months ended June 30, 2018 and 2017 and the year ended December 31, 2017 was as follows. Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 989 547 (147) 80 60 (92) (2) 120 1,555 Charge-offs (861) — — (4) — — — — (865) Recoveries 263 8 — 2 — 5 — — 278 Net (charge-offs) recoveries (598) 8 — (2) — 5 — — (587) Ending balance $ 7,648 $ 10,930 $ 3,335 $ 1,404 $ 1,479 $ 479 $ 66 $ 405 $ 25,746 Period-end amount allocated to: Specific reserve $ 814 $ 12 $ — $ 94 $ — $ — $ — $ — $ 920 General reserve 6,834 10,918 3,335 1,310 1,479 479 66 405 24,826 Total $ 7,648 $ 10,930 $ 3,335 $ 1,404 $ 1,479 $ 479 $ 66 $ 405 $ 25,746 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total December 31, 2017 Beginning balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Provision (recapture) for loan loss 642 (284) (1,116) 35 503 263 (63) (318) (338) Charge-offs (904) (120) — (8) — (93) — — (1,125) Recoveries 1,110 9 — 13 — 43 52 8 1,235 Net (charge-offs) recoveries 206 (111) — 5 — (50) 52 8 110 Ending balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Period-end amount allocated to: Specific reserve $ 852 $ 64 $ — $ 119 $ — $ — $ — $ — $ 1,035 General reserve 6,405 10,311 3,482 1,207 1,419 566 68 285 23,743 Total $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 2017 Beginning balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Provision (recapture) for loan loss 2,108 (775) (1,285) (158) 425 309 (21) (337) 266 Charge-offs (713) — — — — (83) — — (796) Recoveries 662 5 — 10 — 20 6 8 711 Net (charge-offs) recoveries (51) 5 — 10 — (63) 6 8 (85) Ending balance $ 8,466 $ 10,000 $ 3,313 $ 1,138 $ 1,341 $ 599 $ 64 $ 266 $ 25,187 Period-end amount allocated to: Specific reserve $ 1,231 $ — $ — $ — $ — $ — $ — $ — $ 1,231 General reserve 7,235 10,000 3,313 1,138 1,341 599 64 266 23,956 Total $ 8,466 $ 10,000 $ 3,313 $ 1,138 $ 1,341 $ 599 $ 64 $ 266 $ 25,187 Allocation of a portion of the allowance to one category of loans in the tables above does not preclude its availability to absorb losses in other categories. In addition to the amounts indicated in the tables above, the Company has an accumulated reserve for loan losses on unfunded commitments of $378,000 and $378,000 recorded in other liabilities as of June 30, 2018 and December 31, 2017, respectively. Risk Grading As part of the on‑going monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for loan losses, management assigns and tracks loan grades to be used as credit quality indicators. The following is a general description of the loan grades the Company used as of June 30, 2018 and December 31, 2017: Pass —Credits in this category are considered “pass ” which indicates prudent underwriting and a normal amount of risk. The range of risk within these credits can vary from little to no risk with cash securing a credit, to a level of risk that requires a strong secondary source of repayment on the debt. Pass credits with a higher level of risk may be to borrowers that are higher leveraged, less well capitalized or in an industry or economic area that is known to carry a higher level of risk, volatility, or susceptibility to weaknesses in the economy. This higher risk grade may be assigned due to out of date credit information, as well as collateral information which may need to be updated for current market value in order to allow a credit quality analysis of the credit. Special Mention —Credits in this category contain more than the normal amount of risk and are referred to as “special mention” in accordance with regulatory guidelines. These credits possess clearly identifiable temporary weaknesses or trends that, if not corrected or revised, may result in a condition that exposes the Company to higher level of risk of loss. Substandard —Credits in this category are “substandard” in accordance with regulatory guidelines and of unsatisfactory credit quality with well‑defined weaknesses or weaknesses that jeopardize the liquidation of the debt. Credits in this category are inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. These credits are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Often, the assets in this category will have a valuation allowance representative of management’s estimated loss that is probable to be incurred. Substandard loans may also be placed on nonaccrual status as deemed appropriate by management. Loans substandard and on nonaccrual status are considered impaired and are evaluated for impairment. Doubtful —Credits in this category are considered “doubtful” in accordance with regulatory guidelines, are placed on nonaccrual status and may be dependent upon collateral having a value that is difficult to determine or upon some near‑term event which lacks certainty. Generally, these credits will have a valuation allowance based upon management’s best estimate of the losses probable to occur in the liquidation of the debt. Loss —Credits in this category are considered “loss” in accordance with regulatory guidelines and are considered uncollectible and of such little value as to question their continued existence as assets on the Company’s financial statements. Such credits are to be charged off or charged down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. This category does not intend to imply that the debt or some portion of it will never be paid, nor does it in any way imply that the debt will be forgiven. The Company had no loans graded Loss or Doubtful at June 30, 2018 and December 31, 2017. Loans by risk grades and loan class as of the dates shown below were as follows: Special (Dollars in thousands) Pass Mention Substandard Total Loans June 30, 2018 Commercial and industrial $ 548,993 5,353 11,504 $ 565,850 Real estate: Commercial real estate 771,467 569 8,188 780,224 Construction and development 449,067 — 323 449,390 1-4 family residential 273,297 — 5,930 279,227 Multi-family residential 222,315 7,294 — 229,609 Consumer 41,555 246 32 41,833 Agriculture 10,921 — 30 10,951 Other 44,933 — 8,443 53,376 Total loans $ 2,362,548 $ 13,462 $ 34,450 $ 2,410,460 Special (Dollars in thousands) Pass Mention Substandard Total Loans December 31, 2017 Commercial and industrial $ 535,589 $ 8,403 $ 15,371 $ 559,363 Real estate: Commercial real estate 722,503 2,951 12,839 738,293 Construction and development 448,124 565 522 449,211 1-4 family residential 252,317 — 6,267 258,584 Multi-family residential 212,899 7,406 — 220,305 Consumer 40,144 246 43 40,433 Agriculture 11,223 — 33 11,256 Other 33,109 — 7,235 40,344 Total loans $ 2,255,908 $ 19,571 $ 42,310 $ 2,317,789 Loan Impairment Assessment The Company’s recorded investment in impaired loans, as of the dates shown below by loan class and disaggregated based on the Company’s impairment methodology was as follows: Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date June 30, 2018 Commercial and industrial $ 6,037 $ 4,670 $ 814 $ 5,484 $ 814 $ 6,823 Real estate: Commercial real estate 6,694 5,875 615 6,490 12 6,753 Construction and development 276 225 — 225 — 234 1-4 family residential 4,651 4,183 364 4,547 94 4,721 Consumer 4 4 — 4 — 13 Other 8,361 8,361 — 8,361 — 8,200 Total loans $ 26,023 $ 23,318 $ 1,793 $ 25,111 $ 920 $ 26,744 Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date December 31, 2017 Commercial and industrial $ 11,921 $ 6,100 $ 1,192 $ 7,292 $ 852 $ 12,090 Real estate: Commercial real estate 9,646 8,625 667 9,292 64 9,438 Construction and development 296 252 — 252 — 323 1-4 family residential 5,003 3,050 1,874 4,924 119 3,369 Multi-family residential — — — — — 2 Consumer — — — — — 21 Agriculture — — — — — 1 Other 7,152 7,152 — 7,152 — 7,616 Total loans $ 34,018 $ 25,179 $ 3,733 $ 28,912 $ 1,035 $ 32,860 Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date June 30, 2017 Commercial and industrial $ 21,631 $ 12,361 $ 5,110 $ 17,471 $ 1,231 $ 14,316 Real estate: Commercial real estate 10,930 10,726 — 10,726 — 9,201 Construction and development 399 362 — 362 — 366 1-4 family residential 2,279 2,201 — 2,201 — 1,588 Multi-family residential 9 3 — 3 — 3 Consumer — — — — — 56 Agriculture 272 — — — — 2 Other 9,483 9,478 — 9,478 — 9,244 Total loans $ 45,003 $ 35,131 $ 5,110 $ 40,241 $ 1,231 $ 34,776 Interest income earned on impaired loans was $540,000 and $653,000 for the six months ended June 30, 2018 and 2017, respectively. The Company’s recorded investment in loans as of the dates shown below related to the balance in the allowance for loan losses based on the Company’s impairment methodology was as follows: June 30, 2018 December 31, 2017 Individually Collectively Individually Collectively Evaluated for Evaluated for Total Evaluated for Evaluated for Total (Dollars in thousands) Impairment Impairment Loans Impairment Impairment Loans Commercial and industrial $ 5,483 $ 560,367 $ 565,850 $ 7,292 $ 552,071 $ 559,363 Real estate: Commercial real estate 6,490 773,734 780,224 9,293 729,000 738,293 Construction and development 226 449,164 449,390 251 448,960 449,211 1-4 family residential 4,547 274,680 279,227 4,924 253,660 258,584 Multi-family residential — 229,609 229,609 — 220,305 220,305 Consumer 4 41,829 41,833 — 40,433 40,433 Agriculture — 10,951 10,951 — 11,256 11,256 Other 8,361 45,015 53,376 7,152 33,192 40,344 Total $ 25,111 $ 2,385,349 $ 2,410,460 $ 28,912 $ 2,288,877 $ 2,317,789 An impairment analysis is performed for all loans graded substandard and placed on nonaccrual status. If management determines a loan is impaired, the loan is written down to its estimated realizable value through a charge to the allowance for loan losses. At June 30, 2018 and December 31, 2017, the allowance allocated to specific reserves for loans individually evaluated for impairment was $920,000 and $1.0 million, respectively.

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	6 Months Ended
	Jun. 30, 2018
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 6: PREMISES AND EQUIPMENT Premises and equipment are summarized as follows as of the dates shown below: June 30, December 31, (Dollars in thousands) 2018 2017 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,014 51,664 Furniture and equipment 15,189 14,887 Vehicles 202 202 80,871 80,219 Less accumulated depreciation and amortization (28,264) (26,612) Premises and equipment, net $ 52,607 $ 53,607 Depreciation expense was $1.7 million and $1.7 million for the six months ended June 30, 2018 and 2017, respectively, which is included in net occupancy expense on the Company’s condensed consolidated statements of income. Net gains and losses on dispositions of premises and equipment of $63,000 for the six months ended June 30, 2017, were recognized and are included in net gain on sale of assets in the condensed consolidated statements of income. There were no dispositions of premises and equipment in the six months ended June 30, 2018.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 7: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is not amortized and there have been no changes in goodwill during the six months ended June 30, 2018 or the year ended December 31, 2017. The Company’s other intangibles are being amortized over their estimated useful lives of seven to 20 years. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at June 30, 2018 or December 31, 2017. Other intangibles, net of accumulated amortization, were as follows as of the dates shown below: Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets June 30, 2018 Other intangible assets, net Core deposits 5.7 years $ $ (12,317) $ 1,433 Customer relationships 10.5 years 6,629 (1,989) 4,640 Servicing assets 16.3 years 331 (128) 203 Total other intangible assets, net $ 20,710 $ (14,434) $ 6,276 December 31, 2017 Other intangible assets, net Core deposits 6.2 years $ $ (12,051) $ 1,699 Customer relationships 11.0 years 6,629 (1,767) 4,862 Servicing assets 17.3 years 321 (112) 209 Total other intangible assets, net $ $ (13,930) $ 6,770 Servicing Assets Changes in the related servicing assets as of the dates indicated below were as follows: Six Months Ended June 30, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 209 $ 186 Increase from loan sales 33 56 Decrease from serviced loans paid off or foreclosed (23) — Amortization (16) (15) Balance at end of period $ 203 $ 227

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2018
DEPOSITS
DEPOSITS	NOTE 8: DEPOSITS Deposits as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Interest-bearing demand accounts $ 342,890 $ 363,015 Money market accounts 650,747 702,299 Saving accounts 97,576 95,842 Certificates and other time deposits, $100,000 or greater 164,464 172,469 Certificates and other time deposits, less than $100,000 191,442 159,558 Total interest-bearing deposits 1,447,119 1,493,183 Noninterest-bearing deposits 1,114,155 1,109,789 Total deposits $ 2,561,274 $ 2,602,972 At June 30, 2018 and December 31, 2017, the Company had $43.7 million and $45.3 million in deposits from public entities and brokered deposits of $121.7 million and $88.3 million, respectively. The Company had no major concentrations of deposits at June 30, 2018 or December 31, 2017 from any single or related groups of depositors.

NOTES PAYABLE AND LINES OF CRED

NOTES PAYABLE AND LINES OF CREDIT	6 Months Ended
	Jun. 30, 2018
NOTES PAYABLE AND LINES OF CREDIT
NOTES PAYABLE AND LINES OF CREDIT	NOTE 9: NOTES PAYABLE AND LINES OF CREDIT Note Payable In conjunction with an acquisition, the Company entered into a loan agreement on February 1, 2015 for $31.0 million. On November 13, 2017, the Company paid the then remaining outstanding balance in full. Frost Line of Credit On December 13, 2017, the Company entered into a loan agreement, or the Loan Agreement, with Frost Bank, which provides for a $30.0 million revolving line of credit, or Line of Credit. The Company can make draws on the Line of Credit for a period of 12 months beginning on the date of the Loan Agreement, after which the Company will not be permitted to make further draws and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a rate equal to the maximum “Latest” U.S. prime rate of interest per annum and payable quarterly in the first 12 months and thereafter quarterly principal and interest payments are required over a term of 60 months. The entire outstanding balance and unpaid interest is payable in full on December 13, 2023. The Company may prepay the principal amount of any loan under the Loan Agreement without premium or penalty. The obligations of the Company under the Loan Agreement are secured by a valid and perfected first priority lien on all of the issued and outstanding shares of capital stock of the Bank. Covenants made under the Loan Agreement include, among other things, the Company maintaining tangible net worth of not less than $240 million, the Company maintaining free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank’s Texas Ratio (as defined under the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at June 30, 2018. As of June 30, 2018, there were no outstanding borrowings on this line and the Company did not draw on this line during the period from December 13, 2017, when the Company entered the agreement, to June 30, 2018. Additional Lines of Credit The Federal Home Loan Bank System, or FHLB, allows us to borrow on a blanket floating lien status collateralized by certain loans. As of June 30, 2018 and December 31, 2017, total borrowing capacity of $822.1 million and $793.3 million, respectively, was available under this arrangement. As of June 30, 2018, $50.0 million was borrowed on this line on a short-term basis at a rate of 2.19%. As of December 31, 2017, there were no outstanding FHLB advances. As of June 30, 2018 and December 31, 2017, we maintained four federal funds lines of credit with commercial banks that provide for the availability to borrow up to an aggregate of $75.0 million, in federal funds. There were no funds under these lines of credit outstanding as of June 30, 2018 or December 31, 2017.

JUNIOR SUBORDINATED DEBT

JUNIOR SUBORDINATED DEBT	6 Months Ended
	Jun. 30, 2018
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT	NOTE 10: JUNIOR SUBORDINATED DEBT Crosby Statutory Trust I Prior to being acquired in 2008 by the Company, Crosby Bancshares, Inc. received proceeds of junior subordinated debt held by a trust that is funded by common securities purchased by Crosby Bancshares, Inc. and trust preferred securities in the amount of $5.0 million that are held by other investors. Funds raised by the trust totaling $5.2 million were loaned to Crosby Bancshares, Inc. in the form of junior subordinated debt. This debt was assumed by the Company at the date of acquisition. This debt is generally subordinated to other debt and deposits reflected on the consolidated balance sheets. The subordinated debt securities have a due date of December 15, 2035 and interest is payable quarterly. The interest rate of the debt is equal to the London Interbank Offered Rate of U.S. Dollar deposits in Europe, or LIBOR, plus 1.44%, reset quarterly, which was 3.78% at June 30, 2018 and 3.03% at December 31, 2017. The Company has the right to redeem these debt securities in whole, or from time to time in part, provided that all accrued and unpaid interest has been paid. County Bancshares Trust I Prior to being acquired in 2007 by the Company, County Bancshares, Inc. received proceeds of junior subordinated debt held by a trust that is funded by common securities, all of which were purchased by County Bancshares, Inc. and trust preferred securities in the amount of $5.5 million that are held by other investors. Funds raised by the trust totaling $5.7 million were loaned to County Bancshares, Inc. in the form of junior subordinated debt. This debt was transferred to the Company at the date of acquisition. In 2015, the Company purchased approximately $4.1 million of the outstanding preferred securities, reducing the outstanding preferred securities to $1.6 million. This debt is generally subordinated to other debt and deposits reflected on the consolidated balance sheets presented. The subordinated debt securities have a due date of April 7, 2035 and interest is payable quarterly. The interest rate of the debt is equal to LIBOR, plus 2% and is reset quarterly. The rate of interest was 4.35% at June 30, 2018 and 3.36% at December 31, 2017. The Company has the right to redeem these debt securities in whole or from time to time in part, provided that all accrued and unpaid interest has been paid .

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 11: RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company, through the Bank, has and expects to continue to conduct routine banking business with related parties, including its executive officers and directors. Related parties also include stockholders, and their affiliates in which they directly or indirectly have 5% or more beneficial ownership in the Company. Loans —In the opinion of management, loans to related parties were on substantially the same terms, including interest rates and collateral, as those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Company. The Company had approximately $192.2 million and $205.8 million in loans to related parties at June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018 and December 31, 2017, there were no loans made to related parties deemed nonaccrual, past due, restructured or classified as potential problem loans. Unfunded Commitments —At June 30, 2018 and December 31, 2017, the Company had approximately $75.5 million and $69.7 million in unfunded loan commitments to related parties, respectively. Deposits —The Company held related party deposits of approximately $217.3 million and $224.4 million at June 30, 2018 and December 31, 2017, respectively. Advertising —The Company incurred advertising expenses of approximately $0 and $49,000 for the six months ended June 30, 2018 and 2017, respectively, to a vendor that is solely owned by a director of the Company.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2018
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES	NOTE 12: FAIR VALUE DISCLOSURES The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction occurring 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. In estimating fair value, we use valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. 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 (replacement costs). Such valuation techniques are 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. Valuation inputs are categorized in a three-level hierarchy, from highest to lowest level of observable inputs. The highest level of inputs are prices in active markets for identical assets or liabilities and the lowest level of inputs are unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs —Inputs are based upon unadjusted quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs —Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government sponsored enterprises and agencies, obligations of state and municipal subdivisions, corporate bonds and mortgage‑backed securities. Level 3 Inputs —Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. During the six months ending June 30, 2018 and the year ended December 31, 2017, there were no transfers of assets or liabilities within the levels of the fair value hierarchy. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use observable market‑based parameters as inputs. Valuation adjustments may be made to ensure that assets and liabilities are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Financial Instruments Recorded at Fair Value Assets and liabilities measured at fair value on a recurring basis include the following: Debt Securities Available for Sale: Debt securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those debt securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. The other securities in the table below are mutual funds and the fair value is determined by using unadjusted quoted market prices which are considered Level 1 inputs. Interest Rate Swaps with Customers: For interest rate swaps with customers classified as Level 2, the Company obtains fair value measurements from an independent pricing service which uses the income approach. The income approach calls for the utilization of valuation techniques to convert future cash flows as due to be exchanged per the terms of the financial instrument, into a single present value amount. Measurement is based on the value indicated by the market expectations about those future amounts as of the measurement date. The proprietary curves of the independent pricing service utilize pricing models derived from industry standard analytic tools, considering both Level 1 and Level 2 inputs. Interest Rate Swaps with Financial Institutions: For interest rate swaps with financial institutions classified as Level 2, the Company obtains fair value measurements from an independent pricing service which uses the income approach. The income approach calls for the utilization of valuation techniques to convert future cash flows as due to be exchanged per the terms of the financial instrument, into a single present value amount. Measurement is based on the value indicated by the market expectations about those future amounts as of the measurement date. The proprietary curves of the independent pricing service utilize pricing models derived from industry standard analytic tools, taking into account both Level 1 and Level 2 inputs. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of the dates shown below, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2018 December 31, 2017 (Dollars in thousands) Fair Value Fair Value Financial assets: Level 1 inputs: Debt securities available for sale Other securities $ 1,073 $ 1,087 Level 2 inputs: Debt securities available for sale State and municipal securities 61,108 61,916 U.S. Agency Securities: Debt securities 16,731 16,945 Collateralized mortgage obligations 65,824 61,253 Mortgage-backed securities 85,625 81,974 Interest rate swaps with customers 35 340 Interest rate swaps with financial institutions 1,421 426 Total financial assets $ 231,817 $ 223,941 Financial liabilities: Level 2 inputs: Interest rate swaps with customers $ 1,421 $ 426 Interest rate swaps with financial institutions 35 340 Total financial liabilities $ 1,456 $ 766 Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis as they are subject to fair value adjustments in certain circumstances, such as evidence of impairment. Financial assets measured at fair value on a non‑recurring basis during the reported periods include certain impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Repossessed real estate and other assets as well as collateral values are estimated using Level 2 inputs based on observable market data, typically in the case of real estate collateral, or Level 3 inputs based on customized discounting criteria, typically in the case of non‑real estate collateral such as inventory, accounts receivable, equipment or other business assets. Certain assets measured at fair value on a non‑recurring basis as of the dates shown below were as follows: June 30, 2018 December 31, 2017 Level 3 Level 3 (Dollars in thousands) Inputs Inputs Impaired loans: Commercial and industrial $ — $ 340 Commercial real estate 603 603 1-4 family residential 270 1,755 Total impaired loans $ 873 $ 2,698 Non‑Financial Assets and Non‑Financial Liabilities The Company does not have any non‑financial assets or non‑financial liabilities measured at fair value on a recurring basis. Certain non‑financial assets measured at fair value on a non‑recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non‑financial assets and non‑financial liabilities measured at fair value in the second step of a goodwill impairment test and intangible assets and other non‑financial long‑lived assets measured at fair value for impairment assessment. Non‑financial assets measured at fair value on a non‑recurring basis during the reported periods include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge‑off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write‑down included in other non‑interest expense. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. During the six months ended June 30, 2018 and during 2017, we used Level 2 inputs for our fair value measurements for foreclosed assets. Foreclosed assets that were remeasured subsequent to initial recognition and reported at fair value as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 172 $ 881 Charge-offs recognized in the allowance for loan losses (35) — Fair value $ 137 $ 881 Foreclosed assets remeasured subsequent to initial recognition: Carrying value of foreclosed assets prior to measurement $ — $ 227 Write-downs included in other noninterest expense — (51) Fair value $ — $ 176 Fair Value Disclosure for all Financial Instruments The Company is required to disclose the fair value of all financial instruments, including those financial assets and financial liabilities not recorded at fair value in its consolidated balance sheets, for which it is practicable to estimate fair value. The table below summarizes the fair market values and carrying amount of all financial instruments of the Company as of the dates shown below. June 30, 2018 December 31, 2017 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,279 $ 54,279 $ 59,255 $ 59,255 Interest bearing deposits in banks 190,986 190,986 266,944 266,944 Debt securities available for sale 1,073 1,073 1,087 1,087 Level 2 inputs: Time deposits in other banks 200 200 600 600 Debt securities available for sale 229,288 229,288 222,088 222,088 Debt securities held to maturity 34 32 35 33 Bank-owned life insurance 70,627 70,627 68,010 68,010 Servicing asset 203 203 209 209 Accrued interest receivable 7,921 7,921 7,429 7,429 Interest rate swaps with customers 35 35 340 340 Interest rate swaps with financial institutions 1,421 1,421 426 426 Level 3 inputs: Equity investments 15,038 15,038 12,226 12,226 Loans, including held for sale, net 2,396,431 2,378,946 2,299,742 2,288,226 Total financial assets $ 2,967,536 $ 2,950,049 $ 2,938,391 $ 2,926,873 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,114,155 $ 1,114,155 $ 1,109,789 $ 1,109,789 Level 2 inputs: Interest-bearing deposits 1,383,788 1,447,119 1,437,013 1,493,183 Repurchase agreements 1,448 1,448 1,525 1,525 Federal Home Loan Bank advances 50,000 50,000 — — Junior subordinated debt 6,726 6,726 6,726 6,726 Accrued interest payable 414 414 374 374 Interest rate swaps with customers 1,421 1,421 426 426 Interest rate swaps with financial institutions 35 35 340 340 Total financial liabilities $ 2,557,987 $ 2,621,318 $ 2,556,193 $ 2,612,363 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair value of loans is determined using a discounted cash flow analyses and includes such factors as credit and prepayment risk and economic forecasts for interest rates in accordance with ASU 2016-01. Equity Investments — The Company has unconsolidated investments that are considered equity securities meaning they represent ownership interests (such as common or preferred stock). Our equity investments do not have readily determinable fair values and are shown in the table below for the dates indicated. June 30, December 31, (Dollars in thousands) 2018 2017 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,287 1,189 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,339 1,625 Total $ 15,038 $ 12,226 Banks that are members of the FHLB, are required to maintain a stock investment in the FHLB calculated as a percentage of aggregate outstanding mortgages, outstanding FHLB advances and other financial instruments. Banks that are members of the Federal Reserve System are required to annually subscribe to Federal Reserve Bank stock in specific ratios to the Bank’s equity. Although FHLB and Federal Reserve Bank Stock are considered equity securities, they do not have readily determinable fair values because ownership is restricted and they lack a market. These investments can be sold back only at their par value of $100 per share can only be sold to the Federal Home Loan Banks or Federal Reserve Banks or to another member institution. In addition, the equity ownership rights are more limited than would be the case for a public company, because of the oversight role exercised by regulators in the process of budgeting and approving dividends. As a result, these investments are carried at cost and evaluated for impairment. The Company also holds an investment in the stock of The Independent Bankers Financial Corporation, or TIB. This investment has limited marketability. As a result, these investments are carried at cost and evaluated for impairment. The Company has investments in two private investment funds and a limited partnership. These investments are qualified Community Reinvestment Act, or CRA, investments under the Small Business Investment Company program of the SBA. There are limited to no observable price changes in orderly transactions for identical investments or similar investments from the same issuers that are actively traded and as a result, these investments are stated at cost. Our equity investments are evaluated for impairment based on an assessment of qualitative indicators. Impairment indicators to be considered include, but are not limited to (i) a significant deterioration in the earnings, performance, credit rating, asset quality or business prospects of the investee, (ii) a significant adverse change in the regulatory, economic or technological environment of the investee, (iii) a significant adverse change in the general market conditions of either the geographical area or the industry in which the investee operates, (iv) a bona fide offer to purchase, an offer by the investee to sell, or completed auction process for the same or similar investment for an amount less that the carrying amount of that investment. There were no such qualitative indicators as of June 30, 2018.

COMMITMENTS AND CONTINGENCIES,

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	6 Months Ended
	Jun. 30, 2018
COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	NOTE 13 COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF‑BALANCE‑SHEET RISK Unfunded Loan Commitments The Company is party to various 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 for loans in process, commercial lines of credit, overdraft protection lines, and standby letters of credit at both fixed and variable rates of interest. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on‑balance‑sheet instruments. The Company evaluates each customer’s credit worthiness on a case‑by‑case basis. The amount of collateral obtained, if considered necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Commitments to extend credit and standby letters of credit as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, variable $ 718,719 $ 626,441 Commitments to extend credit, fixed 82,190 61,608 $ 800,909 $ 688,049 Standby letters of credit $ 26,373 $ 28,977 Commitments to 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. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to our customers. Derivative Financial Instruments The Company has outstanding interest rate swap contracts in which the Bank entered into an interest rate swap with a customer and entered into an offsetting interest rate swap with another financial institution at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk of the Bank. The objective of the transactions is to allow the Bank’s customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Bank agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Bank agrees to pay a third‑party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. Because the Bank acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and would not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At June 30, 2018 and December 31, 2017, no such deterioration was determined by management. At June 30, 2018 and December 31, 2017, the Company had 14 interest rate swap agreements outstanding with borrowers, with a corresponding number outstanding with correspondent financial institutions. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Fair value amounts are included in other assets and other liabilities. Derivative instruments outstanding as of as of the dates listed shown were as follows: Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity June 30, 2018 Interest rate swaps with customers Other Assets $ 5,649 $ 35 5.35% - 7.25% LIBOR 1M + 3.00% - 3.20% 3.20 years Interest rate swaps with financial institution Other Assets 35,932 1,421 4.00% - 5.65% LIBOR 1M + 2.50% - 3.25% 8.13 years Interest rate swaps with customers Other Liabilities 35,932 (1,421) 4.00% - 5.65% LIBOR 1M + 2.50% - 3.25% 8.13 years Interest rate swaps with financial institution Other Liabilities 5,649 (35) 5.35% - 7.25% LIBOR 1M + 3.00% - 3.20% 3.20 years Total derivatives not designated as hedging instruments $ 83,162 $ — Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity December 31, 2017 Interest rate swaps with customers Other Assets $ 25,882 $ 340 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.83 years Interest rate swaps with financial institution Other Assets 16,579 426 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 8.12 years Interest rate swaps with customers Other Liabilities 16,579 (426) 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 8.12 years Interest rate swaps with financial institution Other Liabilities 25,882 (340) 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.83 years Total derivatives not designated as hedging instruments $ 84,922 $ — Repurchase Agreements At June 30, 2018 and December 31, 2017, the Company had outstanding funds amounting to $1.4 million and $1.5 million respectively, received from the sale of securities that were sold under agreements to repurchase. Securities subject to the transfer of ownership under the repurchase agreements are included in pledged securities, and the carrying value of these securities is disclosed in Note 2. The Company transacts these repurchase agreements with its customers and pays interest rates on these funds according to the terms of each repurchase agreement. Contingent Liabilities The Company is committed to contribute capital into two private investment funds and a limited partnership under the Small Business Investment Company program of the SBA. At June 30, 2018 and December 31, 2017, the Company had $3.1 million and $3.8 million, respectively, in outstanding unfunded commitments to these funds which are subject to call. Cumulative capital contributions to these funds of $2.3 million and $1.6 million are included in other investments in the Company’s condensed consolidated balance sheets at June 30, 2018 and December 31, 2017, respectively. The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Company, it is the opinion of management that the disposition or ultimate determination of such claims and lawsuits will not have a material adverse effect on the financial position or results of operations of the Company. Lease Commitments The Company leases several of its banking facilities under operating leases. Total rent expense for operating leases of premises and equipment was approximately $929,000 and $912,000 for the six months ended June 30, 2018 and 2017, respectively, and is reflected in net occupancy expense on the condensed consolidated statements of income.

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	6 Months Ended
	Jun. 30, 2018
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	NOTE 14: EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS Employee Benefit Plans The Company maintains a 401(k) employee benefit plan in which substantially all employees that complete three months of service may participate. The Company, at its discretion, may match a portion of each employee’s contribution. The Company, also at its discretion, may make additional contributions during the Plan year. For the six months ended June 30, 2018 and 2017, the Company contributed $1.1 million and $965,000 to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance based incentive bonus compensation. As part of this compensation arrangement, the Company will contribute one‑fourth of the incentive bonus amount into a deferred compensation account. The deferred amounts accrue a market rate of interest and are payable to the employees upon separation from the Bank provided the Plan’s vesting arrangements have been met. At June 30, 2018 and December 31, 2017, the amount payable, including interest, for this deferred plan was approximately $2.5 million and $2.4 million respectively, and is included in other liabilities in the condensed consolidated balance sheets. Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and CEO that calls for payments of $100,000 per year for a period of 10 years commencing at age 65. Payments under the plan began during 2014. The Company’s liability was approximately $462,000 and $503,000 at June 30, 2018 and December 31, 2017, respectively, determined using discounted cash flows and is included in other liabilities in the condensed consolidated balance sheets. In October 2017, the Company entered into a salary continuation arrangement with the Company’s President and CEO that calls for payments of $200,000 per year payable for a period of 10 years commencing at age 70. Payments under the plan will begin in 2024. The Company’s liability was approximately $141,000 and $32,000 at June 30, 2018 and December 31, 2017, determined using discounted cash flows and is included in other liabilities in the condensed consolidated balance sheets. Change of Control Agreements In 2017, the Company entered into employment agreements with certain executive officers. These agreements provide for severance benefits if we terminate the executive without cause or the executive resigns with good reason, as defined in the agreements. In addition, upon a change of control, as that term is defined in the agreements, these employees will be entitled to an aggregate amount estimated to be $4.1 million, in accordance with the terms of their respective agreements. No compensation has been recorded to date as a change of control condition is not deemed probable. VB Texas, Inc. and Vista Bank Texas entered into change of control and non‑competition agreements with certain employees of VB Texas, Inc., who are now employees of the Bank. The Company’s initial public offering completed November 10, 2017 triggered the change of control provisions of these agreement and we paid these employees an aggregate amount of $2.5 million during the six months ended June 30, 2018.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 15: STOCK-BASED COMPENSATION The Company acquired a stock option plan which originated under VB Texas, Inc. as a part of a merger of the two companies. The options granted to employees must be exercised within 10 years from the date of grant and vesting schedules are determined on an individual basis. At the merger date, all outstanding options became fully vested and were converted to options of the Company’s common stock at an exchange ratio equal to the acquisition exchange rate for common shares. No options were granted under this plan after October 24, 2016. The Company also acquired a stock option plan that originated in May 2011 under VB Texas, Inc., or the 2011 Plan. At the merger date, all outstanding options became fully vested and were converted to options of the Company’s common stock at an exchange ratio equal to the acquisition exchange rate for common shares. The 2011 Plan was terminated on August 7, 2017 and as of that date, there were no options outstanding under this plan. In May 2014, the Company adopted the 2014 Stock Option Plan, or the 2014 Plan. The 2014 Plan was approved by the Company’s shareholders and limits the number of shares that may be optioned to 1,127,200. The 2014 Plan provides that no options may be granted after May 20, 2024. Options granted under the 2014 Plan expire 10 years from the date of grant and become exercisable in installments over a period of one to five years, beginning on the first anniversary of the date of grant. At June 30, 2018, 959,200 options were available for future grant under the 2014 Plan. On September 13, 2017, the Company’s shareholders approved the Company’s 2017 Omnibus Incentive Plan, or the 2017 Plan. The 2017 Plan authorizes the Company to grant options and restricted stock awards as well as various other types of stock-based and other awards that are not stock-based to eligible employees, consultants and non‑employee directors up to an aggregate of 600,000 shares of common stock. At June 30, 2018, 368,920 share-based awards were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: For the Six Months Ended June 30, 2018 2017 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise (Dollars in thousands, except per share data) Options Price Options Price Outstanding at beginning of period 260,322 $ 16.00 248,314 $ 12.80 Granted — $ — 50,000 $ 21.00 Forfeited — $ — (2,000) $ 16.80 Exercised (25,400) $ 9.85 (1,000) $ 16.80 Outstanding at end of period 234,922 $ 16.67 295,314 $ 14.15 Cash received due to exercise of stock options during the six months ended June 30, 2018 and 2017 was $250,000 and $17,000, respectively. The following tables summarizes our stock options as of the dates shown below. June 30, 2018 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 128,722 106,200 234,922 Weighted-average exercise price per share $ 14.24 $ 19.61 $ 16.67 Aggregate intrinsic value (in thousands) $ 2,421 $ 1,427 $ 3,848 Weighted-average contractual term (years) 5.6 8.3 6.8 Restricted stock activity for the periods shown below was as follows: For the Six Months Ended June 30, 2018 2017 Weighted Weighted Average Average Number of Grant Date Number of Grant Date (Dollars in thousands, except per share data) Shares Fair Value Shares Fair Value Outstanding at beginning of period 212,580 $ 26.73 — $ — Granted 18,500 $ 29.71 — $ — Forfeited — $ — — $ — Vested — $ — — $ — Outstanding at end of period 231,080 $ 26.95 — $ — Restricted stock grants will vest over the service period in equal increments over a period of two to five years, beginning on the first anniversary of the date of grant. The market value of the Company’s common stock at the date of grant is used as the estimate of fair value of restricted stock. The shares of the restricted stock are fully issued at the time of the grant and the grantee becomes the record owner of the restricted stock and has voting, dividend and other shareholder rights. The shares of restricted stock are non-transferable and subject to forfeiture until the restricted stock vests and any dividends with respect to the restricted stock are subject to the same restrictions, including the risk of forfeiture. At June 30, 2018, $33,000 was accrued for dividends payable to restricted stock holders. These dividends will be paid upon vesting of the restricted stock. The following tables summarizes our restricted stock awards as of the date shown below. June 30, 2018 Restricted stock Exercisable Unvested Outstanding Number of shares underlying restricted stock — 231,080 231,080 Weighted-average grant date fair value per share $ — $ 26.95 $ 26.95 Aggregate intrinsic value (in thousands) $ — $ 7,637 $ 7,637 Weighted-average contractual term (years) — 4.1 4.1 Stock-based compensation expense is recognized in the condensed consolidated statements of income based on their fair values on the date of the grant. For the six months ended June 30, 2018 and 2017, stock compensation expense was $739,000 and $16,000, respectively. As of June 30, 2018, there was approximately $5.9 million of total unrecognized compensation expense related to the stock‑based compensation arrangements, which is expected to be recognized in the Company’s consolidated statements of income over a weighted-average period of 4.1 years.

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2018
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 16: REGULATORY MATTERS Regulatory Capital Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off‑balance‑sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Company and Bank’s Common Equity Tier 1 capital includes common stock and related capital surplus, net of treasury stock, and retained earnings. In connection with the adoption of the Basel III Capital Rules, the Company and Bank elected to opt‑out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1. Common Equity Tier 1 for both the Company and Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities, and subject to transition provisions. When fully phased in on January 1, 2019, the Basel III Capital Rules will require the Company and Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk‑weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk‑weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk‑weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk‑weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four‑year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company and Bank. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk‑weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk‑weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of the dates shown below for the Company and Bank. Minimum Minimum Capital Required Capital Required Required to be for Capital Adequacy Basel III Considered Well Actual Purposes Fully Phased-in Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2018 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 379,245 $ 121,220 $ 188,565 N/A N/A Bank Only $ 338,779 $ 121,215 $ 188,556 $ 175,088 Tier I Capital to Risk-Weighted Assets: Consolidated $ 385,645 $ 161,627 $ 228,971 N/A N/A Bank Only $ 338,779 $ 161,619 $ 228,961 $ 215,493 Total Capital to Risk-Weighted Assets: Consolidated $ 411,769 $ 215,502 $ 282,847 N/A N/A Bank Only $ 364,902 $ 215,493 $ 282,834 $ 269,366 Tier 1 Leverage Capital to Average Assets: Consolidated $ 385,645 $ 119,893 $ 119,893 N/A N/A Bank Only $ 338,777 $ 119,617 $ 119,617 $ 149,522 December 31, 2017 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 361,322 $ 114,628 $ 178,310 N/A N/A Bank Only $ 322,414 $ 114,252 $ 178,150 $ 165,425 Tier I Capital to Risk-Weighted Assets: Consolidated $ 367,722 $ 152,837 $ 216,519 N/A N/A Bank Only $ 322,414 $ 152,700 $ 216,325 $ 203,600 Total Capital to Risk-Weighted Assets: Consolidated $ 392,878 $ 203,782 $ 267,464 N/A N/A Bank Only $ 347,569 $ 203,600 $ 267,726 $ 254,501 Tier 1 Leverage Capital to Average Assets: Consolidated $ 367,722 $ 119,769 $ 119,769 N/A N/A Bank Only $ 322,414 $ 119,403 $ 119,403 $ 149,253 As of June 30, 2018 and December 31, 2017, the Company and its bank subsidiary, CommunityBank of Texas, National Association, were “well capitalized” based on the ratios presented above. The Company and Bank are subject to the regulatory capital requirements administered by the Federal Reserve Board and, for the Bank, the OCC. Regulatory authorities can initiate certain mandatory actions if Company or Bank fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of June 30, 2018 and December 31, 2017, that the Company and Bank meet all capital adequacy requirements to which they are subject. Dividend Restrictions In the ordinary course of business, the Company may be dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
INCOME TAXES
INCOME TAXES	NOTE 17: INCOME TAXES The provision for income tax expense and effective tax rates for the periods shown below were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Provision for income tax expense $ 2,638 $ 3,181 $ 4,777 $ 6,213 Effective tax rate 19.3 % 26.8 % 19.2 % 28.5 % The Tax Cuts and Jobs Act of 2017 was enacted December 22, 2017 and lowered the corporate federal income tax rate in the U.S. from 35% to 21%. The differences between the federal statutory rate and the effective tax rates presented in the table above were primarily attributable to permanent differences primarily related to tax exempt interest and bank‑owned life insurance.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 18: EARNINGS PER SHARE Basic earnings per common share is computed as net income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted‑average number of shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. The following table illustrates the computation of basic and diluted earnings per share for the dates shown below. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Net income for common shareholders $ 11,042 $ 8,705 $ 20,154 $ 15,567 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,858 22,062 24,845 22,062 Dilutive effect of outstanding stock options and unvested restricted stock awards 139 86 132 86 Diluted weighted-average shares outstanding 24,997 22,148 24,977 22,148 Earnings per share: Basic $ 0.44 $ 0.39 $ 0.81 $ 0.71 Diluted $ 0.44 $ 0.39 $ 0.81 $ 0.70

BASIS OF PRESENTATION, NATURE27

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank, a wholly owned subsidiary of the Company. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at June 30, 2018 and December 31, 2017, consolidated results of operations for the three and six months ended June 30, 2018 and 2017, consolidated shareholders’ equity for the six months ended June 30, 2018 and 2017 and consolidated cash flows for the six months ended June 30, 2018 and 2017. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2017 included within our Annual Report on Form 10-K.
Accounting Standards Recently Adopted	Accounting Standards Recently Adopted Accounting Standards Update, or ASU, 2014‑09, Revenue from Contracts with Customers (Topic 606): ASU 2014‑09 requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 effective January 1, 2018 with no significant impact to the Company’s consolidated financial statements as the Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014‑09 and noninterest income. The Company’s revenue recognition for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposits accounts, did not materially change from previous practice. ASU, 2016‑01, Financial Instruments‑Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016‑01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) clarifies that entities use the exit price notion when measuring the fair value of loans for disclosure purposes and not use a practicability exception, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument‑specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available‑for‑sale investments. ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) clarifies certain aspects of ASU 2016-01. The Company implemented ASU 2016-01 and ASU 2018-03 effective January 1, 2018 with no significant impact to the Company’s consolidated financial statements. See Note 12 – Fair Value Disclosures. ASU 2016‑15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016‑15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. The Company implemented ASU 2016‑15 effective January 1, 2018. The Company has elected to use the nature of distribution approach to determine whether income received from equity investments is operating or investing on the cash flow statement. Based on the nature of previous income streams from our equity investments, we expect these amounts will continue to be reported in cash provided by operating activities on the cash flow statement and the other items in ASU 2016-15 will be considered if such items arise. ASU 2016‑16, Income Taxes (Topic 740): Intra‑Entity Transfers of Assets Other Than Inventory . ASU 2016‑16 provides guidance stating that an entity should recognize the income tax consequences of an intra‑entity transfer of an asset other than inventory when the transfer occurs. The Company implemented ASU 2016‑16 effective January 1, 2018. As we have not historically transferred assets between entities, we expect no material impact on the consolidated financial statements and will follow this guidance for any future intra-entity transfers of assets other than inventory. ASU 2016‑18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016‑18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning‑of‑period and end‑of‑period total amounts shown on the statement of cash flows. The Company implemented ASU 2016‑18 effective January 1, 2018. The Company considers its Federal Bank reserves and collateral for its interest rate swaps to be restricted and these amounts were already included in cash and equivalents in the consolidated financial statements. ASU 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017‑01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017‑01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company implemented ASU 2017‑01 effective January 1, 2018 and will follow this guidance for any future acquisitions or dispositions. ASU 2017‑09, Compensation—Stock Compensation (Topic 718): ASU 2017-09 provides guidance about which changes in terms or conditions of a share‑based award require application of modification accounting. The Company implemented ASU 2017‑09 effective January 1, 2018 and will follow this guidance for any future modifications of share-based awards. Accounting Standards Not Yet Adopted ASU 2016‑02 , Leases (Topic 842): ASU 2016‑02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016‑02 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company’s implementation of ASU 2016-02 will result in an increase in assets due to the addition of right-of-use assets for assets underlying its operating leases and an increase in liabilities reflecting the Company’s liability to make the lease payments under these leases. The Company is currently evaluating the impact of these adjustments on the consolidated financial statements. ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016‑13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016‑13 amends the accounting for credit losses on available‑for‑sale debt securities and purchased financial assets with credit deterioration. ASU 2016‑13 will be effective on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016‑13 on the consolidated financial statements. ASU 2017‑04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For public companies, ASU 2017‑04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the potential impact of this pronouncement.
Revenue Recognition	Revenue Recognition The Company records revenue from contracts with customers in accordance with ASU 2014-09, as applicable. A majority of the Company’s revenue-generating transactions are not subject to ASU 2014-09, such as interest and fees on loans, income from debt securities, income from federal funds and interest-bearing deposits. Our revenue-generating activities that are within the scope of ASU 2014-09, are included in our condensed consolidated income statements in noninterest income. See table below. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Six Months Ended June 30, (Dollars in thousands) 2018 2017 Deposit account service charges $ 2,975 $ 3,017 Net gain on sale of assets 340 703 Card interchange fees 1,898 1,709 Deposit account service charges — – this is comprised of fees from our customers for deposit related services, such as monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. Net gain on sale of assets — – this is comprised of gains on sales of fixed assets, gains on sales of loans and gains on sales of other real estate owned, or OREO. Gains on sales of loans are excluded from ASU 2014-09. The performance obligation in the sale of OREO or fixed assets is delivery of control over the property to the buyer. The Company does not typically provide financing and the transaction price is identified in the purchase and sale agreement. If the Company provides financing, the Company must determine a transaction price depending on if the sales contract is at market terms and taking into account the credit risk inherent in the sale agreement. Card interchange fees — – this is comprised of fees generated from debit card transactions. Revenue is recognized when our performance obligation is completed generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied.
Cash Flow Reporting	Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.9 million and $15.8 million at June 30, 2018 and December 31, 2017, respectively. Additionally, as of June 30, 2018 and December 31, 2017, the Company had $1.6 million in cash collateral used in our interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Six Months Ended June 30, (Dollars in thousands) 2018 2017 Supplemental disclosures of cash flow information: Cash paid for taxes $ 3,928 $ 5,550 Cash paid for interest on deposits and repurchase agreements 4,062 3,751 Cash paid for interest on notes payable — 512 Cash paid for interest on junior subordinated debt 187 149 Supplemental disclosures of non-cash flow information: Dividends accrued for restricted stock 33 — Repossessed real estate and other assets 137 583

BASIS OF PRESENTATION, NATURE28

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Revenue Recognition	Six Months Ended June 30, (Dollars in thousands) 2018 2017 Deposit account service charges $ 2,975 $ 3,017 Net gain on sale of assets 340 703 Card interchange fees 1,898 1,709
Supplemental disclosures of cash flow information	Six Months Ended June 30, (Dollars in thousands) 2018 2017 Supplemental disclosures of cash flow information: Cash paid for taxes $ 3,928 $ 5,550 Cash paid for interest on deposits and repurchase agreements 4,062 3,751 Cash paid for interest on notes payable — 512 Cash paid for interest on junior subordinated debt 187 149 Supplemental disclosures of non-cash flow information: Dividends accrued for restricted stock 33 — Repossessed real estate and other assets 137 583

DEBT SECURITIES (Tables)

DEBT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
DEBT SECURITIES.
The amortized cost and estimated fair values of investments in securities	Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2018 Debt securities available for sale: State and municipal securities $ 61,355 $ 413 $ (660) $ 61,108 U.S. agency securities: Debt securities 17,315 — (584) 16,731 Collateralized mortgage obligations 67,554 17 (1,747) 65,824 Mortgage-backed securities 88,140 153 (2,668) 85,625 Other securities 1,116 — (43) 1,073 Total $ 235,480 $ 583 $ (5,702) $ 230,361 Debt securities held to maturity: Mortgage-backed securities $ 32 $ 2 $ — $ 34 December 31, 2017 Debt securities available for sale: State and municipal securities $ 60,861 $ 1,173 $ (118) $ 61,916 U.S. agency securities: Debt securities 17,315 — (370) 16,945 Collateralized mortgage obligations 61,878 50 (675) 61,253 Mortgage-backed securities 82,510 330 (866) 81,974 Other securities 1,104 — (17) 1,087 Total $ 223,668 $ 1,553 $ (2,046) $ 223,175 Debt securities held to maturity: Mortgage-backed securities $ 33 $ 2 $ — $ 35
Schedule of amortized cost and estimated fair value of securities by contractual maturities	The amortized cost and estimated fair value of debt securities, by contractual maturity, as of the dates shown below are as follows: Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value June 30, 2018 Amounts maturing in: 1 year or less $ 3,246 $ 3,210 $ — $ — 1 year through 5 years 27,143 26,622 — — 5 years through 10 years 8,409 8,500 — — After 10 years 196,682 192,029 32 34 $ 235,480 $ 230,361 $ 32 $ 34 December 31, 2017 Amounts maturing in: 1 year or less $ 6,203 $ 6,194 $ — $ — 1 year through 5 years 26,811 26,635 — — 5 years through 10 years 9,215 9,348 — — After 10 years 181,439 180,998 33 35 $ 223,668 $ 223,175 $ 33 $ 35
Information pertaining to securities with gross unrealized losses	Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses June 30, 2018 Debt securities available for sale: State and municipal securities $ 20,232 $ (369) $ 6,305 $ (291) U.S. agency securities: Debt securities 4,396 (123) 12,335 (461) Collateralized mortgage obligations 53,589 (1,249) 9,118 (498) Mortgage-backed securities 42,385 (1,096) 29,666 (1,572) Other securities — — 1,073 (43) $ 120,602 $ (2,837) $ 58,497 $ (2,865) December 31, 2017 Debt securities available for sale: State and municipal securities $ 2,494 $ (3) $ 6,516 $ (115) U.S. agency securities: Debt securities 4,464 (55) 12,481 (315) Collateralized mortgage obligations 44,116 (380) 9,938 (295) Mortgage-backed securities 22,079 (123) 32,538 (743) Other securities — — 1,087 (17) $ 73,153 $ (561) $ 62,560 $ (1,485)

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2018
LOANS
Loans held for sale, by portfolio segment	(Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 565,850 23.5 % $ 559,363 24.1 % Real estate: Commercial real estate 780,224 32.4 % 738,293 31.9 % Construction and development 449,390 18.6 % 449,211 19.4 % 1-4 family residential 279,227 11.6 % 258,584 11.2 % Multi-family residential 229,609 9.5 % 220,305 9.5 % Consumer 41,833 1.7 % 40,433 1.7 % Agriculture 10,951 0.5 % 11,256 0.5 % Other 53,376 2.2 % 40,344 1.7 % Total gross loans 2,410,460 100.0 % 2,317,789 100.0 % Less deferred loan fees (5,546) (4,555) Less unearned discount on retained portion of loans sold (222) (230) Less allowance for loan loss (25,746) (24,778) Total loans, net 2,378,946 2,288,226 Less loans held for sale 560 1,460 Loans, net $ 2,378,386 $ 2,286,766
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period June 30, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate 13,446 35,000 $ 20,446 $ 35,000 June 30, 2017 Commercial and industrial $ — $ 10,230 Commercial real estate — 12,298 Construction and development 1,297 2,450 $ 1,297 $ 24,978

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	6 Months Ended
	Jun. 30, 2018
LOAN PERFORMANCE
Nonaccrual loans, segregated by loan class	June 30, December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 1,734 $ 3,280 Real estate: Commercial real estate 2,092 3,216 Construction and development 225 252 1-4 family residential 738 898 Consumer 4 — Total $ 4,793 $ 7,646
Aging analysis of loans past due segregated by loan class	90 days or 90 days 30 to 59 days 60 to 89 days greater Total past Total current past due and (Dollars in thousands) past due past due past due due loans Total loans still accruing June 30, 2018 Commercial and industrial $ 383 $ 210 $ 1,422 $ 2,015 $ 563,835 $ 565,850 $ — Real estate: Commercial real estate 111 576 1,903 2,590 777,634 780,224 — Construction and development 644 — — 644 448,746 449,390 — 1-4 family residential 17 116 35 168 279,059 279,227 — Multi-family residential — — — — 229,609 229,609 — Consumer 150 — — 150 41,683 41,833 — Agriculture — — — — 10,951 10,951 — Other 6 — — 6 53,370 53,376 — Total loans $ 1,311 $ 902 $ 3,360 $ 5,573 $ 2,404,887 $ 2,410,460 $ — December 31, 2017 Commercial and industrial $ 943 $ 1,071 $ 2,535 $ 4,549 $ 554,814 $ 559,363 $ — Real estate: Commercial real estate 337 841 1,866 3,044 735,249 738,293 — Construction and development 400 — — 400 448,811 449,211 — 1-4 family residential 807 — 143 950 257,634 258,584 — Multi-family residential — — — — 220,305 220,305 — Consumer 3 25 — 28 40,405 40,433 — Agriculture — — — — 11,256 11,256 — Other — — — — 40,344 40,344 — Total loans $ 2,490 $ 1,937 $ 4,544 $ 8,971 $ 2,308,818 $ 2,317,789 $ —
Loans segregated by loan class, which were restructured due to the borrower’s financial difficulties	Post-modification recorded investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments and Number Recorded Restructured Extended Restructured Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate June 30, 2018 Commercial and industrial 4 $ 986 $ 936 $ — $ 50 $ — Commercial real estate 4 2,399 2,399 — — — Total 8 $ 3,385 $ 3,335 $ — $ 50 $ — June 30, 2017 Commercial and industrial 4 $ 2,203 $ 2,019 $ — $ 184 $ — Commercial real estate 3 994 277 717 — — Total 7 $ 3,197 $ 2,296 $ 717 $ 184 $ —

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2018
ALLOWANCE FOR LOAN LOSSES
Allowance for loan losses on the basis of the Company’s impairment methodology	Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 989 547 (147) 80 60 (92) (2) 120 1,555 Charge-offs (861) — — (4) — — — — (865) Recoveries 263 8 — 2 — 5 — — 278 Net (charge-offs) recoveries (598) 8 — (2) — 5 — — (587) Ending balance $ 7,648 $ 10,930 $ 3,335 $ 1,404 $ 1,479 $ 479 $ 66 $ 405 $ 25,746 Period-end amount allocated to: Specific reserve $ 814 $ 12 $ — $ 94 $ — $ — $ — $ — $ 920 General reserve 6,834 10,918 3,335 1,310 1,479 479 66 405 24,826 Total $ 7,648 $ 10,930 $ 3,335 $ 1,404 $ 1,479 $ 479 $ 66 $ 405 $ 25,746 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total December 31, 2017 Beginning balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Provision (recapture) for loan loss 642 (284) (1,116) 35 503 263 (63) (318) (338) Charge-offs (904) (120) — (8) — (93) — — (1,125) Recoveries 1,110 9 — 13 — 43 52 8 1,235 Net (charge-offs) recoveries 206 (111) — 5 — (50) 52 8 110 Ending balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Period-end amount allocated to: Specific reserve $ 852 $ 64 $ — $ 119 $ — $ — $ — $ — $ 1,035 General reserve 6,405 10,311 3,482 1,207 1,419 566 68 285 23,743 Total $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 2017 Beginning balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Provision (recapture) for loan loss 2,108 (775) (1,285) (158) 425 309 (21) (337) 266 Charge-offs (713) — — — — (83) — — (796) Recoveries 662 5 — 10 — 20 6 8 711 Net (charge-offs) recoveries (51) 5 — 10 — (63) 6 8 (85) Ending balance $ 8,466 $ 10,000 $ 3,313 $ 1,138 $ 1,341 $ 599 $ 64 $ 266 $ 25,187 Period-end amount allocated to: Specific reserve $ 1,231 $ — $ — $ — $ — $ — $ — $ — $ 1,231 General reserve 7,235 10,000 3,313 1,138 1,341 599 64 266 23,956 Total $ 8,466 $ 10,000 $ 3,313 $ 1,138 $ 1,341 $ 599 $ 64 $ 266 $ 25,187
Presentation of risk grades and classified loans by loan class	Special (Dollars in thousands) Pass Mention Substandard Total Loans June 30, 2018 Commercial and industrial $ 548,993 5,353 11,504 $ 565,850 Real estate: Commercial real estate 771,467 569 8,188 780,224 Construction and development 449,067 — 323 449,390 1-4 family residential 273,297 — 5,930 279,227 Multi-family residential 222,315 7,294 — 229,609 Consumer 41,555 246 32 41,833 Agriculture 10,921 — 30 10,951 Other 44,933 — 8,443 53,376 Total loans $ 2,362,548 $ 13,462 $ 34,450 $ 2,410,460 Special (Dollars in thousands) Pass Mention Substandard Total Loans December 31, 2017 Commercial and industrial $ 535,589 $ 8,403 $ 15,371 $ 559,363 Real estate: Commercial real estate 722,503 2,951 12,839 738,293 Construction and development 448,124 565 522 449,211 1-4 family residential 252,317 — 6,267 258,584 Multi-family residential 212,899 7,406 — 220,305 Consumer 40,144 246 43 40,433 Agriculture 11,223 — 33 11,256 Other 33,109 — 7,235 40,344 Total loans $ 2,255,908 $ 19,571 $ 42,310 $ 2,317,789
Loan Impairment Assessment	Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date June 30, 2018 Commercial and industrial $ 6,037 $ 4,670 $ 814 $ 5,484 $ 814 $ 6,823 Real estate: Commercial real estate 6,694 5,875 615 6,490 12 6,753 Construction and development 276 225 — 225 — 234 1-4 family residential 4,651 4,183 364 4,547 94 4,721 Consumer 4 4 — 4 — 13 Other 8,361 8,361 — 8,361 — 8,200 Total loans $ 26,023 $ 23,318 $ 1,793 $ 25,111 $ 920 $ 26,744 Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date December 31, 2017 Commercial and industrial $ 11,921 $ 6,100 $ 1,192 $ 7,292 $ 852 $ 12,090 Real estate: Commercial real estate 9,646 8,625 667 9,292 64 9,438 Construction and development 296 252 — 252 — 323 1-4 family residential 5,003 3,050 1,874 4,924 119 3,369 Multi-family residential — — — — — 2 Consumer — — — — — 21 Agriculture — — — — — 1 Other 7,152 7,152 — 7,152 — 7,616 Total loans $ 34,018 $ 25,179 $ 3,733 $ 28,912 $ 1,035 $ 32,860 Unpaid Recorded Average contractual investment Recorded Total recorded principal with no investment recorded Related investment (Dollars in thousands) balance allowance with allowance investment allowance year-to-date June 30, 2017 Commercial and industrial $ 21,631 $ 12,361 $ 5,110 $ 17,471 $ 1,231 $ 14,316 Real estate: Commercial real estate 10,930 10,726 — 10,726 — 9,201 Construction and development 399 362 — 362 — 366 1-4 family residential 2,279 2,201 — 2,201 — 1,588 Multi-family residential 9 3 — 3 — 3 Consumer — — — — — 56 Agriculture 272 — — — — 2 Other 9,483 9,478 — 9,478 — 9,244 Total loans $ 45,003 $ 35,131 $ 5,110 $ 40,241 $ 1,231 $ 34,776
Allowance for loan losses on the basis of the Company’s impairment methodology	June 30, 2018 December 31, 2017 Individually Collectively Individually Collectively Evaluated for Evaluated for Total Evaluated for Evaluated for Total (Dollars in thousands) Impairment Impairment Loans Impairment Impairment Loans Commercial and industrial $ 5,483 $ 560,367 $ 565,850 $ 7,292 $ 552,071 $ 559,363 Real estate: Commercial real estate 6,490 773,734 780,224 9,293 729,000 738,293 Construction and development 226 449,164 449,390 251 448,960 449,211 1-4 family residential 4,547 274,680 279,227 4,924 253,660 258,584 Multi-family residential — 229,609 229,609 — 220,305 220,305 Consumer 4 41,829 41,833 — 40,433 40,433 Agriculture — 10,951 10,951 — 11,256 11,256 Other 8,361 45,015 53,376 7,152 33,192 40,344 Total $ 25,111 $ 2,385,349 $ 2,410,460 $ 28,912 $ 2,288,877 $ 2,317,789

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2018
PREMISES AND EQUIPMENT
Schedule of premises and equipment	June 30, December 31, (Dollars in thousands) 2018 2017 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,014 51,664 Furniture and equipment 15,189 14,887 Vehicles 202 202 80,871 80,219 Less accumulated depreciation and amortization (28,264) (26,612) Premises and equipment, net $ 52,607 $ 53,607

GOODWILL AND OTHER INTANGIBLE34

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets	Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets June 30, 2018 Other intangible assets, net Core deposits 5.7 years $ $ (12,317) $ 1,433 Customer relationships 10.5 years 6,629 (1,989) 4,640 Servicing assets 16.3 years 331 (128) 203 Total other intangible assets, net $ 20,710 $ (14,434) $ 6,276 December 31, 2017 Other intangible assets, net Core deposits 6.2 years $ $ (12,051) $ 1,699 Customer relationships 11.0 years 6,629 (1,767) 4,862 Servicing assets 17.3 years 321 (112) 209 Total other intangible assets, net $ $ (13,930) $ 6,770
Schedule of changes in related servicing assets	Six Months Ended June 30, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 209 $ 186 Increase from loan sales 33 56 Decrease from serviced loans paid off or foreclosed (23) — Amortization (16) (15) Balance at end of period $ 203 $ 227

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2018
DEPOSITS
Schedule of deposits	June 30, December 31, (Dollars in thousands) 2018 2017 Interest-bearing demand accounts $ 342,890 $ 363,015 Money market accounts 650,747 702,299 Saving accounts 97,576 95,842 Certificates and other time deposits, $100,000 or greater 164,464 172,469 Certificates and other time deposits, less than $100,000 191,442 159,558 Total interest-bearing deposits 1,447,119 1,493,183 Noninterest-bearing deposits 1,114,155 1,109,789 Total deposits $ 2,561,274 $ 2,602,972

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2018
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	June 30, 2018 December 31, 2017 (Dollars in thousands) Fair Value Fair Value Financial assets: Level 1 inputs: Debt securities available for sale Other securities $ 1,073 $ 1,087 Level 2 inputs: Debt securities available for sale State and municipal securities 61,108 61,916 U.S. Agency Securities: Debt securities 16,731 16,945 Collateralized mortgage obligations 65,824 61,253 Mortgage-backed securities 85,625 81,974 Interest rate swaps with customers 35 340 Interest rate swaps with financial institutions 1,421 426 Total financial assets $ 231,817 $ 223,941 Financial liabilities: Level 2 inputs: Interest rate swaps with customers $ 1,421 $ 426 Interest rate swaps with financial institutions 35 340 Total financial liabilities $ 1,456 $ 766
Summary of certain assets measured on a non‑recurring basis	June 30, 2018 December 31, 2017 Level 3 Level 3 (Dollars in thousands) Inputs Inputs Impaired loans: Commercial and industrial $ — $ 340 Commercial real estate 603 603 1-4 family residential 270 1,755 Total impaired loans $ 873 $ 2,698
Summary of foreclosed assets that were remeasured subsequent to initial recognition	June 30, December 31, (Dollars in thousands) 2018 2017 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 172 $ 881 Charge-offs recognized in the allowance for loan losses (35) — Fair value $ 137 $ 881 Foreclosed assets remeasured subsequent to initial recognition: Carrying value of foreclosed assets prior to measurement $ — $ 227 Write-downs included in other noninterest expense — (51) Fair value $ — $ 176
Summary of fair market values of all financial instruments	June 30, 2018 December 31, 2017 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,279 $ 54,279 $ 59,255 $ 59,255 Interest bearing deposits in banks 190,986 190,986 266,944 266,944 Debt securities available for sale 1,073 1,073 1,087 1,087 Level 2 inputs: Time deposits in other banks 200 200 600 600 Debt securities available for sale 229,288 229,288 222,088 222,088 Debt securities held to maturity 34 32 35 33 Bank-owned life insurance 70,627 70,627 68,010 68,010 Servicing asset 203 203 209 209 Accrued interest receivable 7,921 7,921 7,429 7,429 Interest rate swaps with customers 35 35 340 340 Interest rate swaps with financial institutions 1,421 1,421 426 426 Level 3 inputs: Equity investments 15,038 15,038 12,226 12,226 Loans, including held for sale, net 2,396,431 2,378,946 2,299,742 2,288,226 Total financial assets $ 2,967,536 $ 2,950,049 $ 2,938,391 $ 2,926,873 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,114,155 $ 1,114,155 $ 1,109,789 $ 1,109,789 Level 2 inputs: Interest-bearing deposits 1,383,788 1,447,119 1,437,013 1,493,183 Repurchase agreements 1,448 1,448 1,525 1,525 Federal Home Loan Bank advances 50,000 50,000 — — Junior subordinated debt 6,726 6,726 6,726 6,726 Accrued interest payable 414 414 374 374 Interest rate swaps with customers 1,421 1,421 426 426 Interest rate swaps with financial institutions 35 35 340 340 Total financial liabilities $ 2,557,987 $ 2,621,318 $ 2,556,193 $ 2,612,363
Schedule of equity investments that do not have readily determinable fair values	June 30, December 31, (Dollars in thousands) 2018 2017 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,287 1,189 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,339 1,625 Total $ 15,038 $ 12,226

COMMITMENTS AND CONTINGENCIES37

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	6 Months Ended
	Jun. 30, 2018
COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Summary of the various financial instruments whose contract amounts represent credit risk	June 30, December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, variable $ 718,719 $ 626,441 Commitments to extend credit, fixed 82,190 61,608 $ 800,909 $ 688,049 Standby letters of credit $ 26,373 $ 28,977
Schedule of the derivative instruments outstanding	Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity June 30, 2018 Interest rate swaps with customers Other Assets $ 5,649 $ 35 5.35% - 7.25% LIBOR 1M + 3.00% - 3.20% 3.20 years Interest rate swaps with financial institution Other Assets 35,932 1,421 4.00% - 5.65% LIBOR 1M + 2.50% - 3.25% 8.13 years Interest rate swaps with customers Other Liabilities 35,932 (1,421) 4.00% - 5.65% LIBOR 1M + 2.50% - 3.25% 8.13 years Interest rate swaps with financial institution Other Liabilities 5,649 (35) 5.35% - 7.25% LIBOR 1M + 3.00% - 3.20% 3.20 years Total derivatives not designated as hedging instruments $ 83,162 $ — Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity December 31, 2017 Interest rate swaps with customers Other Assets $ 25,882 $ 340 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.83 years Interest rate swaps with financial institution Other Assets 16,579 426 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 8.12 years Interest rate swaps with customers Other Liabilities 16,579 (426) 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 8.12 years Interest rate swaps with financial institution Other Liabilities 25,882 (340) 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.83 years Total derivatives not designated as hedging instruments $ 84,922 $ —

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Stock option plans
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	For the Six Months Ended June 30, 2018 2017 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise (Dollars in thousands, except per share data) Options Price Options Price Outstanding at beginning of period 260,322 $ 16.00 248,314 $ 12.80 Granted — $ — 50,000 $ 21.00 Forfeited — $ — (2,000) $ 16.80 Exercised (25,400) $ 9.85 (1,000) $ 16.80 Outstanding at end of period 234,922 $ 16.67 295,314 $ 14.15
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	June 30, 2018 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 128,722 106,200 234,922 Weighted-average exercise price per share $ 14.24 $ 19.61 $ 16.67 Aggregate intrinsic value (in thousands) $ 2,421 $ 1,427 $ 3,848 Weighted-average contractual term (years) 5.6 8.3 6.8
Restricted Stock
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	For the Six Months Ended June 30, 2018 2017 Weighted Weighted Average Average Number of Grant Date Number of Grant Date (Dollars in thousands, except per share data) Shares Fair Value Shares Fair Value Outstanding at beginning of period 212,580 $ 26.73 — $ — Granted 18,500 $ 29.71 — $ — Forfeited — $ — — $ — Vested — $ — — $ — Outstanding at end of period 231,080 $ 26.95 — $ —
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	June 30, 2018 Restricted stock Exercisable Unvested Outstanding Number of shares underlying restricted stock — 231,080 231,080 Weighted-average grant date fair value per share $ — $ 26.95 $ 26.95 Aggregate intrinsic value (in thousands) $ — $ 7,637 $ 7,637 Weighted-average contractual term (years) — 4.1 4.1

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2018
REGULATORY MATTERS
Summary of actual and required capital ratios for the Company and Bank under the Basel III Capital Rules	Minimum Minimum Capital Required Capital Required Required to be for Capital Adequacy Basel III Considered Well Actual Purposes Fully Phased-in Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2018 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 379,245 $ 121,220 $ 188,565 N/A N/A Bank Only $ 338,779 $ 121,215 $ 188,556 $ 175,088 Tier I Capital to Risk-Weighted Assets: Consolidated $ 385,645 $ 161,627 $ 228,971 N/A N/A Bank Only $ 338,779 $ 161,619 $ 228,961 $ 215,493 Total Capital to Risk-Weighted Assets: Consolidated $ 411,769 $ 215,502 $ 282,847 N/A N/A Bank Only $ 364,902 $ 215,493 $ 282,834 $ 269,366 Tier 1 Leverage Capital to Average Assets: Consolidated $ 385,645 $ 119,893 $ 119,893 N/A N/A Bank Only $ 338,777 $ 119,617 $ 119,617 $ 149,522 December 31, 2017 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 361,322 $ 114,628 $ 178,310 N/A N/A Bank Only $ 322,414 $ 114,252 $ 178,150 $ 165,425 Tier I Capital to Risk-Weighted Assets: Consolidated $ 367,722 $ 152,837 $ 216,519 N/A N/A Bank Only $ 322,414 $ 152,700 $ 216,325 $ 203,600 Total Capital to Risk-Weighted Assets: Consolidated $ 392,878 $ 203,782 $ 267,464 N/A N/A Bank Only $ 347,569 $ 203,600 $ 267,726 $ 254,501 Tier 1 Leverage Capital to Average Assets: Consolidated $ 367,722 $ 119,769 $ 119,769 N/A N/A Bank Only $ 322,414 $ 119,403 $ 119,403 $ 149,253

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2018
INCOME TAXES
Schedule of provision for income tax expense and effective tax rates	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Provision for income tax expense $ 2,638 $ 3,181 $ 4,777 $ 6,213 Effective tax rate 19.3 % 26.8 % 19.2 % 28.5 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Net income for common shareholders $ 11,042 $ 8,705 $ 20,154 $ 15,567 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,858 22,062 24,845 22,062 Dilutive effect of outstanding stock options and unvested restricted stock awards 139 86 132 86 Diluted weighted-average shares outstanding 24,997 22,148 24,977 22,148 Earnings per share: Basic $ 0.44 $ 0.39 $ 0.81 $ 0.71 Diluted $ 0.44 $ 0.39 $ 0.81 $ 0.70

BASIS OF PRESENTATION, NATURE42

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Deposit account service charges
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 2,975
Net gain on sale of assets
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	340
Card interchange fees
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,898
Calculated under Revenue Guidance in Effect before Topic 606 | Deposit account service charges
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		$ 3,017
Calculated under Revenue Guidance in Effect before Topic 606 | Net gain on sale of assets
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		703
Calculated under Revenue Guidance in Effect before Topic 606 | Card interchange fees
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		$ 1,709

BASIS OF PRESENTATION, NATURE43

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Cash Flow Reporting (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)location	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Number of locations | location	33
Reserve required at federal reserve bank	$ 18,900		$ 15,800
Cash collateral for interest rate swap transactions	1,600		$ 1,600
Supplemental disclosures of cash flow information:
Cash paid for taxes	3,928	$ 5,550
Supplemental disclosures of non-cash flow information:
Dividends accrued for restricted stock	33
Repossessed real estate and other assets	137	583
Notes payable.
Supplemental disclosures of cash flow information:
Cash paid for interest		512
Junior subordinated debt.
Supplemental disclosures of cash flow information:
Cash paid for interest	187	149
Deposits and repurchase agreements
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 4,062	$ 3,751

DEBT SECURITIES - Amortized cos

DEBT SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available-for-sale Securities [Abstract]
Amortized cost	$ 235,480	$ 223,668
Fair Value	230,361	223,175
Held-to-maturity Securities [Abstract]
Amortized cost	32	33
Fair Value	34	35
Securities Available for Sale
Available-for-sale Securities [Abstract]
Amortized cost	235,480	223,668
Unrealized Gains	583	1,553
Unrealized Losses	(5,702)	(2,046)
Fair Value	230,361	223,175
Securities Available for Sale | State and municipal securities
Available-for-sale Securities [Abstract]
Amortized cost	61,355	60,861
Unrealized Gains	413	1,173
Unrealized Losses	(660)	(118)
Fair Value	61,108	61,916
Securities Available for Sale | Debt securities
Available-for-sale Securities [Abstract]
Amortized cost	17,315	17,315
Unrealized Losses	(584)	(370)
Fair Value	16,731	16,945
Securities Available for Sale | Collateralized mortgage obligations
Available-for-sale Securities [Abstract]
Amortized cost	67,554	61,878
Unrealized Gains	17	50
Unrealized Losses	(1,747)	(675)
Fair Value	65,824	61,253
Securities Available for Sale | Mortgage-backed securities
Available-for-sale Securities [Abstract]
Amortized cost	88,140	82,510
Unrealized Gains	153	330
Unrealized Losses	(2,668)	(866)
Fair Value	85,625	81,974
Securities Available for Sale | Other securities
Available-for-sale Securities [Abstract]
Amortized cost	1,116	1,104
Unrealized Losses	(43)	(17)
Fair Value	1,073	1,087
Securities Held to Maturity | Mortgage-backed securities
Held-to-maturity Securities [Abstract]
Amortized cost	32	33
Gross Unrealized Gains	2	2
Fair Value	$ 34	$ 35

DEBT SECURITIES - Amortized c45

DEBT SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 3,246	$ 6,203
Amortized cost, 1 year through 5 years	27,143	26,811
Amortized cost, 5 years through 10 years	8,409	9,215
Amortized cost, After 10 years	196,682	181,439
Available-for-sale Securities, Amortized Cost Basis, Total	235,480	223,668
Available for Sale - Estimated Fair Value
Estimated fair value, 1 year or less	3,210	6,194
Estimated fair value, 1 year through 5 years	26,622	26,635
Estimated fair value, 5 years through 10 years	8,500	9,348
Estimated fair value, After 10 years	192,029	180,998
Available-for-sale Securities, Total	230,361	223,175
Held to Maturity - Amortized Cost
Amortized cost, After 10 years	32	33
Held-to-maturity Securities, Total	32	33
Held to Maturity - Estimated Fair Value
Estimated fair value, After 10 years	34	35
Held-to-maturity Securities, Fair Value, Total	34	35
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	235,480	223,668
Available for Sale - Estimated Fair Value
Available-for-sale Securities, Total	$ 230,361	$ 223,175

DEBT SECURITIES - Securities ca

DEBT SECURITIES - Securities carrying amount (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)item
DEBT SECURITIES.
Securities sold during the year	$ 0	$ 444,000
Carrying value of securities pledged	$ 44,500,000		$ 58,700,000
Securities held in a gross unrealized loss position | item	52		52
Impairment loss on securities	$ 0	$ 0

DEBT SECURITIES - Securities wi

DEBT SECURITIES - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investment securities
Fair value - Less than twelve months	$ 120,602	$ 73,153
Gross Unrealized losses - Less than twelve months	(2,837)	(561)
Fair value - Twelve months or more	58,497	62,560
Gross Unrealized losses - Twelve months or more	(2,865)	(1,485)
State and municipal securities
Investment securities
Fair value - Less than twelve months	20,232	2,494
Gross Unrealized losses - Less than twelve months	(369)	(3)
Fair value - Twelve months or more	6,305	6,516
Gross Unrealized losses - Twelve months or more	(291)	(115)
Debt securities
Investment securities
Fair value - Less than twelve months	4,396	4,464
Gross Unrealized losses - Less than twelve months	(123)	(55)
Fair value - Twelve months or more	12,335	12,481
Gross Unrealized losses - Twelve months or more	(461)	(315)
Collateralized mortgage obligations
Investment securities
Fair value - Less than twelve months	53,589	44,116
Gross Unrealized losses - Less than twelve months	(1,249)	(380)
Fair value - Twelve months or more	9,118	9,938
Gross Unrealized losses - Twelve months or more	(498)	(295)
Mortgage-backed securities
Investment securities
Fair value - Less than twelve months	42,385	22,079
Gross Unrealized losses - Less than twelve months	(1,096)	(123)
Fair value - Twelve months or more	29,666	32,538
Gross Unrealized losses - Twelve months or more	(1,572)	(743)
Other securities
Investment securities
Fair value - Twelve months or more	1,073	1,087
Gross Unrealized losses - Twelve months or more	$ (43)	$ (17)

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Loans
Total	$ 2,410,460	$ 2,317,789
Percentage of loan	100.00%	100.00%
Less deferred loan fees	$ (5,546)	$ (4,555)
Less unearned discount on retained portion of loans sold	(222)	(230)
Less allowance for loan loss	(25,746)	(24,778)	$ (25,187)	$ (25,006)
Total loans, net	2,378,946	2,288,226
Loans held for sale	560	1,460
Total loans	2,378,386	2,286,766
Accrued interest receivable	6,600	6,100
Commercial and industrial
Loans
Total	$ 565,850	$ 559,363
Percentage of loan	23.50%	24.10%
Less allowance for loan loss	$ (7,648)	$ (7,257)	(8,466)	(6,409)
Commercial real estate
Loans
Total	$ 780,224	$ 738,293
Percentage of loan	32.40%	31.90%
Less allowance for loan loss	$ (10,930)	$ (10,375)	(10,000)	(10,770)
Construction and development
Loans
Total	$ 449,390	$ 449,211
Percentage of loan	18.60%	19.40%
Less allowance for loan loss	$ (3,335)	$ (3,482)	(3,313)	(4,598)
1-4 family residential
Loans
Total	$ 279,227	$ 258,584
Percentage of loan	11.60%	11.20%
Less allowance for loan loss	$ (1,404)	$ (1,326)	(1,138)	(1,286)
Multi‑family residential
Loans
Total	$ 229,609	$ 220,305
Percentage of loan	9.50%	9.50%
Less allowance for loan loss	$ (1,479)	$ (1,419)	(1,341)	(916)
Consumer
Loans
Total	$ 41,833	$ 40,433
Percentage of loan	1.70%	1.70%
Less allowance for loan loss	$ (479)	$ (566)	(599)	(353)
Agriculture
Loans
Total	$ 10,951	$ 11,256
Percentage of loan	0.50%	0.50%
Less allowance for loan loss	$ (66)	$ (68)	(64)	(79)
Other
Loans
Total	$ 53,376	$ 40,344
Percentage of loan	2.20%	1.70%
Less allowance for loan loss	$ (405)	$ (285)	$ (266)	$ (595)

LOANS - Loan participation and

LOANS - Loan participation and Loan Guarantees (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Loans
Participations purchased during the period	$ 20,446	$ 1,297
Participations sold during the period	35,000	24,978
SBA loans that were sold with servicing retained	1,500	2,200
Commercial and industrial
Loans
Participations purchased during the period	7,000
Participations sold during the period		10,230
Commercial real estate
Loans
Participations purchased during the period	13,446
Participations sold during the period	$ 35,000	12,298
Construction and development
Loans
Participations purchased during the period		1,297
Participations sold during the period		$ 2,450

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Nonaccrual loans
Nonaccrual loans	$ 4,793	$ 7,646
Commercial and industrial
Nonaccrual loans
Nonaccrual loans	1,734	3,280
Commercial real estate
Nonaccrual loans
Nonaccrual loans	2,092	3,216
Construction and development
Nonaccrual loans
Nonaccrual loans	225	252
1-4 family residential
Nonaccrual loans
Nonaccrual loans	738	$ 898
Consumer
Nonaccrual loans
Nonaccrual loans	$ 4

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Aging analysis
Total past due	$ 5,573,000		$ 8,971,000
Total current loans	2,404,887,000		2,308,818,000
Total loans	2,410,460,000		2,317,789,000
Interest income that would have been earned under the original terms of the nonaccrual loans	139,000	$ 91,000
30 to 59 days past due
Aging analysis
Total past due	1,311,000		2,490,000
60 to 89 days past due
Aging analysis
Total past due	902,000		1,937,000
90 days or greater past due
Aging analysis
Total past due	3,360,000		4,544,000
Commercial and industrial
Aging analysis
Total past due	2,015,000		4,549,000
Total current loans	563,835,000		554,814,000
Total loans	565,850,000		559,363,000
Commercial and industrial | 30 to 59 days past due
Aging analysis
Total past due	383,000		943,000
Commercial and industrial | 60 to 89 days past due
Aging analysis
Total past due	210,000		1,071,000
Commercial and industrial | 90 days or greater past due
Aging analysis
Total past due	1,422,000		2,535,000
Commercial real estate
Aging analysis
Total past due	2,590,000		3,044,000
Total current loans	777,634,000		735,249,000
Total loans	780,224,000		738,293,000
Commercial real estate | 30 to 59 days past due
Aging analysis
Total past due	111,000		337,000
Commercial real estate | 60 to 89 days past due
Aging analysis
Total past due	576,000		841,000
Commercial real estate | 90 days or greater past due
Aging analysis
Total past due	1,903,000		1,866,000
Construction and development
Aging analysis
Total past due	644,000		400,000
Total current loans	448,746,000		448,811,000
Total loans	449,390,000		449,211,000
Construction and development | 30 to 59 days past due
Aging analysis
Total past due	644,000		400,000
1-4 family residential
Aging analysis
Total past due	168,000		950,000
Total current loans	279,059,000		257,634,000
Total loans	279,227,000		258,584,000
1-4 family residential | 30 to 59 days past due
Aging analysis
Total past due	17,000		807,000
1-4 family residential | 60 to 89 days past due
Aging analysis
Total past due	116,000
1-4 family residential | 90 days or greater past due
Aging analysis
Total past due	35,000		143,000
Multi‑family residential
Aging analysis
Total current loans	229,609,000		220,305,000
Total loans	229,609,000		220,305,000
Consumer
Aging analysis
Total past due	150,000		28,000
Total current loans	41,683,000		40,405,000
Total loans	41,833,000		40,433,000
Consumer | 30 to 59 days past due
Aging analysis
Total past due	150,000		3,000
Consumer | 60 to 89 days past due
Aging analysis
Total past due			25,000
Agriculture
Aging analysis
Total current loans	10,951,000		11,256,000
Total loans	10,951,000		11,256,000
Other
Aging analysis
Total past due	6,000
Total current loans	53,370,000		40,344,000
Total loans	53,376,000		$ 40,344,000
Other | 30 to 59 days past due
Aging analysis
Total past due	$ 6,000

LOAN PERFORMANCE - Restructured

LOAN PERFORMANCE - Restructured loans (Details)	6 Months Ended
	Jun. 30, 2018USD ($)loan	Jun. 30, 2017USD ($)loan	Dec. 31, 2017USD ($)
Restructured loans
Number of loans | loan	8	7
Pre‑modification outstanding Recorded Investment	$ 3,385,000	$ 3,197,000
Recorded investment in troubled debt restructurings	16,900,000		$ 18,200,000
Restructured loans that are nonaccrual status	3,500,000		4,800,000
Restructured loans accruing interest	$ 13,400,000		$ 13,400,000
Number of restructured loans for which there was a payment default | loan	0
Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 3,335,000	2,296,000
Extended Maturity
Restructured loans
Post‑modification recorded investment		717,000
Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 50,000	$ 184,000
Commercial and industrial
Restructured loans
Number of loans | loan	4	4
Pre‑modification outstanding Recorded Investment	$ 986,000	$ 2,203,000
Commercial and industrial | Restructured Payments
Restructured loans
Post‑modification recorded investment	936,000	2,019,000
Commercial and industrial | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 50,000	$ 184,000
Commercial real estate
Restructured loans
Number of loans | loan	4	3
Pre‑modification outstanding Recorded Investment	$ 2,399,000	$ 994,000
Commercial real estate | Restructured Payments
Restructured loans
Post‑modification recorded investment	2,399,000	277,000
Commercial real estate | Extended Maturity
Restructured loans
Post‑modification recorded investment		$ 717,000
Other
Restructured loans
Commitment to loan additional funds	$ 81,000

ALLOWANCE FOR LOAN LOSSES - Seg

ALLOWANCE FOR LOAN LOSSES - Segregated by loan class (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Loan losses segregated by loan class
Beginning balance	$ 24,778,000	$ 25,006,000	$ 25,006,000
Provision (recapture) for loan loss	1,555,000	266,000	(338,000)
Charge-offs	(865,000)	(796,000)	(1,125,000)
Recoveries	278,000	711,000	1,235,000
Net (charge-offs) recoveries	(587,000)	(85,000)	110,000
Ending balance	25,746,000	25,187,000	24,778,000
Specific reserve
Loan losses segregated by loan class
Beginning balance	1,035,000
Ending balance	920,000	1,231,000	1,035,000
General reserve
Loan losses segregated by loan class
Beginning balance	23,743,000
Ending balance	24,826,000	23,956,000	23,743,000
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	7,257,000	6,409,000	6,409,000
Provision (recapture) for loan loss	989,000	2,108,000	642,000
Charge-offs	(861,000)	(713,000)	(904,000)
Recoveries	263,000	662,000	1,110,000
Net (charge-offs) recoveries	(598,000)	(51,000)	206,000
Ending balance	7,648,000	8,466,000	7,257,000
Commercial and industrial | Specific reserve
Loan losses segregated by loan class
Beginning balance	852,000
Ending balance	814,000	1,231,000	852,000
Commercial and industrial | General reserve
Loan losses segregated by loan class
Beginning balance	6,405,000
Ending balance	6,834,000	7,235,000	6,405,000
Commercial real estate
Loan losses segregated by loan class
Beginning balance	10,375,000	10,770,000	10,770,000
Provision (recapture) for loan loss	547,000	(775,000)	(284,000)
Charge-offs			(120,000)
Recoveries	8,000	5,000	9,000
Net (charge-offs) recoveries	8,000	5,000	(111,000)
Ending balance	10,930,000	10,000,000	10,375,000
Commercial real estate | Specific reserve
Loan losses segregated by loan class
Beginning balance	64,000
Ending balance	12,000		64,000
Commercial real estate | General reserve
Loan losses segregated by loan class
Beginning balance	10,311,000
Ending balance	10,918,000	10,000,000	10,311,000
Construction and development
Loan losses segregated by loan class
Beginning balance	3,482,000	4,598,000	4,598,000
Provision (recapture) for loan loss	(147,000)	(1,285,000)	(1,116,000)
Ending balance	3,335,000	3,313,000	3,482,000
Construction and development | General reserve
Loan losses segregated by loan class
Beginning balance	3,482,000
Ending balance	3,335,000	3,313,000	3,482,000
1-4 family residential
Loan losses segregated by loan class
Beginning balance	1,326,000	1,286,000	1,286,000
Provision (recapture) for loan loss	80,000	(158,000)	35,000
Charge-offs	(4,000)		(8,000)
Recoveries	2,000	10,000	13,000
Net (charge-offs) recoveries	(2,000)	10,000	5,000
Ending balance	1,404,000	1,138,000	1,326,000
1-4 family residential | Specific reserve
Loan losses segregated by loan class
Beginning balance	119,000
Ending balance	94,000		119,000
1-4 family residential | General reserve
Loan losses segregated by loan class
Beginning balance	1,207,000
Ending balance	1,310,000	1,138,000	1,207,000
Multi‑family residential
Loan losses segregated by loan class
Beginning balance	1,419,000	916,000	916,000
Provision (recapture) for loan loss	60,000	425,000	503,000
Ending balance	1,479,000	1,341,000	1,419,000
Multi‑family residential | General reserve
Loan losses segregated by loan class
Beginning balance	1,419,000
Ending balance	1,479,000	1,341,000	1,419,000
Consumer
Loan losses segregated by loan class
Beginning balance	566,000	353,000	353,000
Provision (recapture) for loan loss	(92,000)	309,000	263,000
Charge-offs		(83,000)	(93,000)
Recoveries	5,000	20,000	43,000
Net (charge-offs) recoveries	5,000	(63,000)	(50,000)
Ending balance	479,000	599,000	566,000
Consumer | General reserve
Loan losses segregated by loan class
Beginning balance	566,000
Ending balance	479,000	599,000	566,000
Agriculture
Loan losses segregated by loan class
Beginning balance	68,000	79,000	79,000
Provision (recapture) for loan loss	(2,000)	(21,000)	(63,000)
Recoveries		6,000	52,000
Net (charge-offs) recoveries		6,000	52,000
Ending balance	66,000	64,000	68,000
Agriculture | General reserve
Loan losses segregated by loan class
Beginning balance	68,000
Ending balance	66,000	64,000	68,000
Other
Loan losses segregated by loan class
Beginning balance	285,000	595,000	595,000
Provision (recapture) for loan loss	120,000	(337,000)	(318,000)
Recoveries		8,000	8,000
Net (charge-offs) recoveries		8,000	8,000
Ending balance	405,000	266,000	285,000
Other | General reserve
Loan losses segregated by loan class
Beginning balance	285,000
Ending balance	405,000	$ 266,000	285,000
Unfunded Loan Commitment
Loan losses segregated by loan class
Beginning balance	378,000
Ending balance	$ 378,000		$ 378,000

ALLOWANCE FOR LOAN LOSSES - Ris

ALLOWANCE FOR LOAN LOSSES - Risk Grading (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Risk Grading
Risk rating of loans	$ 2,410,460	$ 2,317,789
Pass
Risk Grading
Risk rating of loans	2,362,548	2,255,908
Special Mention
Risk Grading
Risk rating of loans	13,462	19,571
Substandard
Risk Grading
Risk rating of loans	34,450	42,310
Loss or Doubtful
Risk Grading
Risk rating of loans	0	0
Commercial and industrial
Risk Grading
Risk rating of loans	565,850	559,363
Commercial and industrial | Pass
Risk Grading
Risk rating of loans	548,993	535,589
Commercial and industrial | Special Mention
Risk Grading
Risk rating of loans	5,353	8,403
Commercial and industrial | Substandard
Risk Grading
Risk rating of loans	11,504	15,371
Commercial real estate
Risk Grading
Risk rating of loans	780,224	738,293
Commercial real estate | Pass
Risk Grading
Risk rating of loans	771,467	722,503
Commercial real estate | Special Mention
Risk Grading
Risk rating of loans	569	2,951
Commercial real estate | Substandard
Risk Grading
Risk rating of loans	8,188	12,839
Construction and development
Risk Grading
Risk rating of loans	449,390	449,211
Construction and development | Pass
Risk Grading
Risk rating of loans	449,067	448,124
Construction and development | Special Mention
Risk Grading
Risk rating of loans		565
Construction and development | Substandard
Risk Grading
Risk rating of loans	323	522
1-4 family residential
Risk Grading
Risk rating of loans	279,227	258,584
1-4 family residential | Pass
Risk Grading
Risk rating of loans	273,297	252,317
1-4 family residential | Substandard
Risk Grading
Risk rating of loans	5,930	6,267
Multi‑family residential
Risk Grading
Risk rating of loans	229,609	220,305
Multi‑family residential | Pass
Risk Grading
Risk rating of loans	222,315	212,899
Multi‑family residential | Special Mention
Risk Grading
Risk rating of loans	7,294	7,406
Consumer
Risk Grading
Risk rating of loans	41,833	40,433
Consumer | Pass
Risk Grading
Risk rating of loans	41,555	40,144
Consumer | Special Mention
Risk Grading
Risk rating of loans	246	246
Consumer | Substandard
Risk Grading
Risk rating of loans	32	43
Agriculture
Risk Grading
Risk rating of loans	10,951	11,256
Agriculture | Pass
Risk Grading
Risk rating of loans	10,921	11,223
Agriculture | Substandard
Risk Grading
Risk rating of loans	30	33
Other
Risk Grading
Risk rating of loans	53,376	40,344
Other | Pass
Risk Grading
Risk rating of loans	44,933	33,109
Other | Substandard
Risk Grading
Risk rating of loans	$ 8,443	$ 7,235

ALLOWANCE FOR LOAN LOSSES - Loa

ALLOWANCE FOR LOAN LOSSES - Loan Impairment Assessment (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Loan Impairment Assessment
Unpaid contractual principal balance	$ 26,023,000	$ 45,003,000	$ 34,018,000
Recorded investment with no allowance	23,318,000	35,131,000	25,179,000
Recorded investment with allowance	1,793,000	5,110,000	3,733,000
Total recorded investment	25,111,000	40,241,000	28,912,000
Related allowance	920,000	1,231,000	1,035,000
Average recorded investment year‑to‑date	26,744,000	34,776,000	32,860,000
Interest income earned on impaired loans	540,000	653,000
Commercial and industrial
Loan Impairment Assessment
Unpaid contractual principal balance	6,037,000	21,631,000	11,921,000
Recorded investment with no allowance	4,670,000	12,361,000	6,100,000
Recorded investment with allowance	814,000	5,110,000	1,192,000
Total recorded investment	5,484,000	17,471,000	7,292,000
Related allowance	814,000	1,231,000	852,000
Average recorded investment year‑to‑date	6,823,000	14,316,000	12,090,000
Commercial real estate
Loan Impairment Assessment
Unpaid contractual principal balance	6,694,000	10,930,000	9,646,000
Recorded investment with no allowance	5,875,000	10,726,000	8,625,000
Recorded investment with allowance	615,000		667,000
Total recorded investment	6,490,000	10,726,000	9,292,000
Related allowance	12,000		64,000
Average recorded investment year‑to‑date	6,753,000	9,201,000	9,438,000
Construction and development
Loan Impairment Assessment
Unpaid contractual principal balance	276,000	399,000	296,000
Recorded investment with no allowance	225,000	362,000	252,000
Total recorded investment	225,000	362,000	252,000
Average recorded investment year‑to‑date	234,000	366,000	323,000
1-4 family residential
Loan Impairment Assessment
Unpaid contractual principal balance	4,651,000	2,279,000	5,003,000
Recorded investment with no allowance	4,183,000	2,201,000	3,050,000
Recorded investment with allowance	364,000		1,874,000
Total recorded investment	4,547,000	2,201,000	4,924,000
Related allowance	94,000		119,000
Average recorded investment year‑to‑date	4,721,000	1,588,000	3,369,000
Multi‑family residential
Loan Impairment Assessment
Unpaid contractual principal balance		9,000
Recorded investment with no allowance		3,000
Total recorded investment		3,000
Average recorded investment year‑to‑date		3,000	2,000
Consumer
Loan Impairment Assessment
Unpaid contractual principal balance	4,000
Recorded investment with no allowance	4,000
Total recorded investment	4,000
Average recorded investment year‑to‑date	13,000	56,000	21,000
Agriculture
Loan Impairment Assessment
Unpaid contractual principal balance		272,000
Average recorded investment year‑to‑date		2,000	1,000
Other
Loan Impairment Assessment
Unpaid contractual principal balance	8,361,000	9,483,000	7,152,000
Recorded investment with no allowance	8,361,000	9,478,000	7,152,000
Total recorded investment	8,361,000	9,478,000	7,152,000
Average recorded investment year‑to‑date	$ 8,200,000	$ 9,244,000	$ 7,616,000

ALLOWANCE FOR LOAN LOSSES - L56

ALLOWANCE FOR LOAN LOSSES - Loan losses on the basis of Company's impairment methodology (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	$ 25,111,000	$ 28,912,000
Loans collectively evaluated for impairment	2,385,349,000	2,288,877,000
Total	2,410,460,000	2,317,789,000
Allowance allocated to specific reserves for loans individually evaluated for impairment	920,000	1,000,000
Commercial and industrial
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	5,483,000	7,292,000
Loans collectively evaluated for impairment	560,367,000	552,071,000
Total	565,850,000	559,363,000
Commercial real estate
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	6,490,000	9,293,000
Loans collectively evaluated for impairment	773,734,000	729,000,000
Total	780,224,000	738,293,000
Construction and development
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	226,000	251,000
Loans collectively evaluated for impairment	449,164,000	448,960,000
Total	449,390,000	449,211,000
1-4 family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,547,000	4,924,000
Loans collectively evaluated for impairment	274,680,000	253,660,000
Total	279,227,000	258,584,000
Multi‑family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	229,609,000	220,305,000
Total	229,609,000	220,305,000
Consumer
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,000
Loans collectively evaluated for impairment	41,829,000	40,433,000
Total	41,833,000	40,433,000
Agriculture
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	10,951,000	11,256,000
Total	10,951,000	11,256,000
Other
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	8,361,000	7,152,000
Loans collectively evaluated for impairment	45,015,000	33,192,000
Total	$ 53,376,000	$ 40,344,000

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
PREMISES AND EQUIPMENT
Premises and equipment	$ 80,871,000		$ 80,219,000
Less accumulated depreciation and amortization	(28,264,000)		(26,612,000)
Premises and equipment, net	52,607,000		53,607,000
Depreciation	1,652,000	$ 1,703,000
Net gains and losses on sale of assets	0	$ 63,000
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466,000		13,466,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	52,014,000		51,664,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	15,189,000		14,887,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	$ 202,000		$ 202,000

GOODWILL AND OTHER INTANGIBLE58

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in goodwill	$ 0	$ 0
Other Intangible Assets, net
Gross Intangible Assets	20,710	20,700
Accumulated Amortization	(14,434)	(13,930)
Net Intangible Assets	$ 6,276	$ 6,770
Core deposits
Other Intangible Assets, net
Weighted Amortization Period	5 years 8 months 12 days	6 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(12,317)	(12,051)
Net Intangible Assets	$ 1,433	$ 1,699
Customer relationships
Other Intangible Assets, net
Weighted Amortization Period	10 years 6 months	11 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(1,989)	(1,767)
Net Intangible Assets	$ 4,640	$ 4,862
Servicing asset
Other Intangible Assets, net
Weighted Amortization Period	16 years 3 months 18 days	17 years 3 months 18 days
Gross Intangible Assets	$ 331	$ 321
Accumulated Amortization	(128)	(112)
Net Intangible Assets	$ 203	$ 209
Minimum
Other Intangible Assets, net
Weighted Amortization Period	7 years
Maximum
Other Intangible Assets, net
Weighted Amortization Period	20 years

GOODWILL AND OTHER INTANGIBLE59

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Servicing Assets
Balance at beginning of year	$ 209	$ 186
Increase from loan sales	33	56
Decrease from serviced loans paid off or foreclosed	(23)
Amortization	(16)	(15)
Balance at end of period	$ 203	$ 227

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
DEPOSITS
Interest-bearing demand accounts	$ 342,890	$ 363,015
Money market accounts	650,747	702,299
Saving accounts	97,576	95,842
Certificates and other time deposits, $100,000 or greater	164,464	172,469
Certificates and other time deposits, less than $100,000	191,442	159,558
Total interest-bearing deposits	1,447,119	1,493,183
Noninterest-bearing deposits	1,114,155	1,109,789
Total deposits	2,561,274	2,602,972
Deposits from public entities	43,700	45,300
Brokered deposits	$ 121,700	$ 88,300

NOTES PAYABLE AND LINES OF CR61

NOTES PAYABLE AND LINES OF CREDIT (Details) $ in Millions	Dec. 13, 2017USD ($)	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item	Feb. 01, 2015USD ($)
NOTES PAYABLE AND LINES OF CREDIT
Capital to risk based assets ratio		15.30%	15.40%
Notes payable.
NOTES PAYABLE AND LINES OF CREDIT
Loan amount				$ 31
Federal Home Loan Bank
NOTES PAYABLE AND LINES OF CREDIT
Outstanding borrowings		$ 50
Interest rate		2.19%
Line of Credit | Frost Bank
NOTES PAYABLE AND LINES OF CREDIT
Revolving line of credit available	$ 30
Revolving line of credit draw period	12 months
Debt term	60 months
Line of credit payment terms	payable quarterly in the first 12 months and thereafter quarterly principal and interest payments are required over a term of 60 months
Outstanding borrowings	$ 0
Line of Credit | Frost Bank | Minimum
NOTES PAYABLE AND LINES OF CREDIT
Tangible capital	$ 240
Free cash flow coverage ratio	1.25%
Capital to risk based assets ratio	12.00%
Line of Credit | Frost Bank | Maximum
NOTES PAYABLE AND LINES OF CREDIT
Capital to risk based assets ratio	15.00%
Line of Credit | Federal Home Loan Bank
NOTES PAYABLE AND LINES OF CREDIT
Outstanding borrowings			$ 0
Total borrowing capacity available		$ 822.1	793.3
Federal funds line of credit | Federal Home Loan Bank
NOTES PAYABLE AND LINES OF CREDIT
Revolving line of credit available		75	75
Outstanding borrowings		$ 0	$ 0
Number of federal funds line of credit | item		4	4

JUNIOR SUBORDINATED DEBT (Detai

JUNIOR SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2007	Dec. 31, 2006
Junior subordinated notes
Junior subordinate debt	$ 6,726	$ 6,726
Crosby Statutory Trust I
Junior subordinated notes
Proceeds of trust preferred securities				$ 5,000
Junior subordinate debt				$ 5,200
County Bancshares Trust I
Junior subordinated notes
Proceeds of trust preferred securities					$ 5,500
Junior subordinate debt					$ 5,700
Purchase of trust preferred securities			$ 4,100
Trust preferred securities	$ 1,600
LIBOR | Crosby Statutory Trust I
Junior subordinated notes
Variable interest rate spread (as a percent)	1.44%
Interest rate (as a percent)	3.78%	3.03%
LIBOR | County Bancshares Trust I
Junior subordinated notes
Variable interest rate spread (as a percent)	2.00%
Interest rate (as a percent)	4.35%	3.36%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 192,200,000		$ 205,800,000
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0		0
Unfunded loan commitments to related parties	75,500,000		69,700,000
Related party deposits	217,300,000		$ 224,400,000
Advertising expense to related party	$ 0	$ 49,000

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Financial Assets
Debt securities available for sale	$ 230,361	$ 223,175
Financial Liabilities
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers into level 3	0	0
Transfers from level 3	0	0
Recurring basis
Financial Assets
Total financial assets	231,817	223,941
Financial Liabilities
Total financial liabilities	1,456	766
Level 1 Inputs | Recurring basis | Other securities
Financial Assets
Debt securities available for sale	1,073	1,087
Level 2 Inputs | Recurring basis | Interest rate swaps with customers
Financial Assets
Interest rate swaps assets	35	340
Financial Liabilities
Interest rate swaps liabilities	1,421	426
Level 2 Inputs | Recurring basis | Interest rate swaps with financial institutions
Financial Assets
Interest rate swaps assets	1,421	426
Financial Liabilities
Interest rate swaps liabilities	35	340
Level 2 Inputs | Recurring basis | State and municipal securities
Financial Assets
Debt securities available for sale	61,108	61,916
Level 2 Inputs | Recurring basis | Debt securities
Financial Assets
Debt securities available for sale	16,731	16,945
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	65,824	61,253
Level 2 Inputs | Recurring basis | Mortgage-backed securities
Financial Assets
Debt securities available for sale	$ 85,625	$ 81,974

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Impaired Loans
Total loans	$ 2,378,386	$ 2,286,766
Level 3 Inputs | Non-recurring basis
Impaired Loans
Total loans	873	2,698
Level 3 Inputs | Non-recurring basis | Commercial and industrial
Impaired Loans
Total loans		340
Level 3 Inputs | Non-recurring basis | Commercial real estate
Impaired Loans
Total loans	603	603
Level 3 Inputs | Non-recurring basis | 1-4 family residential
Impaired Loans
Total loans	$ 270	$ 1,755

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Non‑Financial Assets and Non‑Financial Liabilities
Carrying value of foreclosed assets prior to measurement		$ 227
Charge-offs / Write-downs		(51)
Fair value of foreclosed assets		176
Previously reported
Non‑Financial Assets and Non‑Financial Liabilities
Carrying value of foreclosed assets prior to measurement	$ 172	881
Charge-offs / Write-downs	(35)
Fair value of foreclosed assets	$ 137	$ 881

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial Assets:
Interest bearing deposits in banks	$ 190,986	$ 266,944
Time deposits in other banks	200	600
Debt securities available for sale	230,361	223,175
Debt securities held to maturity	32	33
Equity investments	15,038	12,226
Loans, including held for sale, net	560	1,460
Accrued interest receivable	6,600	6,100
Financial Liabilities:
Noninterest-bearing deposits	1,114,155	1,109,789
Interest-bearing deposits	1,447,119	1,493,183
Repurchase agreements	1,448	1,525
Federal Home Loan Bank advances	50,000
Junior subordinated debt	6,726	6,726
Fair Value
Financial Assets:
Total financial assets	2,967,536	2,938,391
Financial Liabilities:
Total financial liabilities	2,557,987	2,556,193
Carrying Amount
Financial Assets:
Total financial assets	2,950,049	2,926,873
Financial Liabilities:
Total financial liabilities	2,621,318	2,612,363
Level 1 Inputs | Fair Value
Financial Assets:
Cash and due from banks	54,279	59,255
Interest bearing deposits in banks	190,986	266,944
Debt securities available for sale	1,073	1,087
Financial Liabilities:
Noninterest-bearing deposits	1,114,155	1,109,789
Level 1 Inputs | Carrying Amount
Financial Assets:
Cash and due from banks	54,279	59,255
Interest bearing deposits in banks	190,986	266,944
Debt securities available for sale	1,073	1,087
Financial Liabilities:
Noninterest-bearing deposits	1,114,155	1,109,789
Level 2 Inputs | Fair Value
Financial Assets:
Time deposits in other banks	200	600
Debt securities available for sale	229,288	222,088
Debt securities held to maturity	34	35
Bank-owned life insurance	70,627	68,010
Servicing asset	203	209
Accrued interest receivable	7,921	7,429
Financial Liabilities:
Interest-bearing deposits	1,383,788	1,437,013
Repurchase agreements	1,448	1,525
Federal Home Loan Bank advances	50,000
Junior subordinated debt	6,726	6,726
Accrued interest payable	414	374
Level 2 Inputs | Carrying Amount
Financial Assets:
Time deposits in other banks	200	600
Debt securities available for sale	229,288	222,088
Debt securities held to maturity	32	33
Bank-owned life insurance	70,627	68,010
Servicing asset	203	209
Accrued interest receivable	7,921	7,429
Financial Liabilities:
Interest-bearing deposits	1,447,119	1,493,183
Repurchase agreements	1,448	1,525
Federal Home Loan Bank advances	50,000
Junior subordinated debt	6,726	6,726
Accrued interest payable	414	374
Level 2 Inputs | Interest rate swaps with customers | Fair Value
Financial Assets:
Interest rate swaps assets	35	340
Financial Liabilities:
Interest rate swaps liabilities	1,421	426
Level 2 Inputs | Interest rate swaps with customers | Carrying Amount
Financial Assets:
Interest rate swaps assets	35	340
Financial Liabilities:
Interest rate swaps liabilities	1,421	426
Level 2 Inputs | Interest rate swaps with financial institutions | Fair Value
Financial Assets:
Interest rate swaps assets	1,421	426
Financial Liabilities:
Interest rate swaps liabilities	35	340
Level 2 Inputs | Interest rate swaps with financial institutions | Carrying Amount
Financial Assets:
Interest rate swaps assets	1,421	426
Financial Liabilities:
Interest rate swaps liabilities	35	340
Level 3 Inputs | Fair Value
Financial Assets:
Equity investments	15,038	12,226
Loans, including held for sale, net	2,396,431	2,299,742
Level 3 Inputs | Carrying Amount
Financial Assets:
Equity investments	15,038	12,226
Loans, including held for sale, net	$ 2,378,946	$ 2,288,226

FAIR VALUE DISCLOSURES - Equity

FAIR VALUE DISCLOSURES - Equity Investments (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Equity Investments
Equity investments, total	$ 15,038	$ 12,226
Number of private investment funds | item	2
Federal Reserve stock
Equity Investments
Equity investments, total	$ 9,271	9,271
Federal Home Loan Bank stock
Equity Investments
Equity investments, total	3,287	1,189
The Independent Bankers Financial Corporation stock
Equity Investments
Equity investments, total	141	141
Community Reinvestment Act investments
Equity Investments
Equity investments, total	$ 2,339	$ 1,625

COMMITMENTS AND CONTINGENCIES69

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable	$ 718,719	$ 626,441
Commitments to extend credit, fixed	82,190	61,608
Total	800,909	688,049
Standby letters of credit	$ 26,373	$ 28,977

COMMITMENTS AND CONTINGENCIES70

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Derivative Financial (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer’s credit worthiness	$ 0	$ 0
Number of interest rate swap agreements | item	14	14
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 83,162	$ 84,922
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	5,649	25,882
Fair value asset	$ 35	$ 340
Weighted Average Maturity	3 years 2 months 12 days	7 years 9 months 29 days
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 35,932	$ 16,579
Fair value asset	$ 1,421	$ 426
Weighted Average Maturity	8 years 1 month 17 days	8 years 1 month 13 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 35,932	$ 16,579
Fair value liability	$ (1,421)	$ (426)
Weighted Average Maturity	8 years 1 month 17 days	8 years 1 month 13 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 5,649	$ 25,882
Fair value liability	$ (35)	$ (340)
Weighted Average Maturity	3 years 2 months 12 days	7 years 9 months 29 days
Minimum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.35%	4.75%
Minimum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	4.00%	4.00%
Minimum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	4.00%	4.00%
Minimum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.35%	4.75%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.00%	2.50%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.00%	2.50%
Maximum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	7.25%	7.25%
Maximum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.65%	5.15%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.65%	5.15%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	7.25%	7.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.20%	3.20%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.25%	3.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.25%	3.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.20%	3.20%

COMMITMENTS AND CONTINGENCIES71

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Repurchase Agreements (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Repurchase Agreements
Repurchase agreement amount outstanding	$ 1.4	$ 1.5

COMMITMENTS AND CONTINGENCIES72

COMMITMENTS AND CONTINGENCIES, INCLUDING FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Contingent Liabilities & Lease Commitments (Details)	6 Months Ended
	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Contingent Liabilities
Number of private investment funds under the Small Business Investment Company (SBIC) program | item	2
Unfunded commitments	$ 3,100,000		$ 3,800,000
Cumulative capital contributions	2,300,000		$ 1,600,000
Lease Commitments
Rent expense	$ 929,000	$ 912,000

EMPLOYEE BENEFIT PLANS AND DE73

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Oct. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Term of service for 401K participation		3 months
Company's contributions to the 401K plan		$ 1,100,000	$ 965,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)		25.00%
Deferred plan liability		$ 2,500,000		$ 2,400,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		462,000		503,000
Annual compensation payment amount		$ 100,000
Contractual term		10 years
Commencement age		65 years
2017 Salary Continuation Agreement 2017
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		$ 141,000		32,000
Annual compensation payment amount	$ 200,000
Contractual term	10 years
Commencement age	70 years
Change of Control and Non‑Competition Agreements | VB Texas, Inc.
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Aggregate amount		$ 2,500,000
Change of Control and Non‑Competition Agreements | Executive Officers
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability			$ 4,100,000
Deferred compensation expense				$ 0

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)	6 Months Ended
	Jun. 30, 2018shares
2006 Plan
STOCK-BASED COMPENSATION
Vesting period	10 years
2006 Plan | Granted after October 24, 2016
STOCK-BASED COMPENSATION
Number of options granted	0
2011 Plan
STOCK-BASED COMPENSATION
Number of options outstanding	0
2014 Plan
STOCK-BASED COMPENSATION
Number of options authorized	1,127,200
Option expiration term	10 years
Options available for future grant	959,200
2014 Plan | Minimum
STOCK-BASED COMPENSATION
Vesting period	1 year
2014 Plan | Maximum
STOCK-BASED COMPENSATION
Vesting period	5 years
2014 Plan | Granted after May 20, 2024
STOCK-BASED COMPENSATION
Number of options granted	0
2017 Plan
STOCK-BASED COMPENSATION
Number of options authorized	600,000
Options available for future grant	368,920

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Weighted Average Exercise Price
Cash received in exercise of share options	$ 250	$ 17
Stock option plans
Number of Shares Underlying Options
Outstanding, beginning of period	260,322	248,314
Granted		50,000
Forfeited		(2,000)
Exercised	(25,400)	(1,000)
Outstanding, end of period	234,922	295,314
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16	$ 12.80
Granted		21
Forfeited		16.80
Exercised	9.85	16.80
Outstanding, end of period	$ 16.67	$ 14.15

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock option plans - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	128,722
Number of shares underlying options unvested	106,200
Number of shares underlying options outstanding	234,922
Weighted-average exercise price per share exercisable	$ 14.24
Weighted-average exercise price per share unvested	19.61
Weighted-average exercise price per share outstanding	$ 16.67	$ 16	$ 14.15	$ 12.80
Aggregate intrinsic value exercisable	$ 2,421
Aggregate intrinsic value unvested	1,427
Aggregate intrinsic value outstanding	$ 3,848
Weighted-average contractual term exercisable (years)	5 years 7 months 6 days
Weighted-average contractual term unvested (years)	8 years 3 months 18 days
Weighted-average contractual term outstanding (years)	6 years 9 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Shares
Outstanding, beginning of period | shares	212,580
Granted | shares	18,500
Outstanding, end of period | shares	231,080
Weighted Average Grant Date Fair Value
Outstanding, beginning of period | $ / shares	$ 26.73
Granted | $ / shares	29.71
Outstanding, end of period | $ / shares	$ 26.95

STOCK-BASED COMPENSATION - Su78

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 739,000	$ 16,000
Unrecognized compensation expense	$ 5,900,000
Weighted average period	4 years 1 month 6 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued dividends payable	$ 33,000
Number of shares of restricted stock granted	18,500
Number of shares underlying restricted stock unvested	231,080		212,580
Number of shares underlying restricted stock outstanding	231,080
Weighted-average grant date fair value per share unvested	$ 26.95
Weighted-average grant date fair value per share unvested outstanding	$ 26.95		$ 26.73
Aggregate grant date fair value unvested	$ 7,637,000
Aggregate grant date fair value outstanding	$ 7,637,000
Weighted-average contractual term (years)	0 years
Weighted-average contractual term unvested (years)	4 years 1 month 6 days
Weighted-average contractual term outstanding (years)	4 years 1 month 6 days
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Regulatory matters
Capital conversion buffer (as a percent)	2.50%
Term of implementation of the capital conservation buffer	4 years
Common Equity Tier I to Risk‑Weighted Assets
Actual amount	$ 379,245	$ 361,322
Common Equity Tier One Capital Ratio	14.10%	14.20%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 121,220	$ 114,628
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 188,565	$ 178,310
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 385,645	$ 367,722
Actual ratio	14.30%	14.40%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 161,627	$ 152,837
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 228,971	$ 216,519
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 411,769	$ 392,878
Actual ratio	15.30%	15.40%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 215,502	$ 203,782
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 282,847	$ 267,464
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 385,645	$ 367,722
Actual ratio	12.90%	12.30%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 119,893	$ 119,769
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 119,893	$ 119,769
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Bank Only
Common Equity Tier I to Risk‑Weighted Assets
Actual amount	$ 338,779	$ 322,414
Common Equity Tier One Capital Ratio	12.60%	12.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 121,215	$ 114,252
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 188,556	$ 178,150
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 175,088	$ 165,425
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 338,779	$ 322,414
Actual ratio	12.60%	12.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 161,619	$ 152,700
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 228,961	$ 216,325
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 215,493	$ 203,600
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 364,902	$ 347,569
Actual ratio	13.60%	13.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 215,493	$ 203,600
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 282,834	$ 267,726
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 269,366	$ 254,501
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 338,777	$ 322,414
Actual ratio	11.30%	10.80%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 119,617	$ 119,403
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 119,617	$ 119,403
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 149,522	$ 149,253
Required to be Considered Well Capitalized, ratio	5.00%	5.00%
Minimum
Regulatory matters
Capital conversion buffer (as a percent)	0.625%

REGULATORY MATTERS - Dividend R

REGULATORY MATTERS - Dividend Restrictions (Details)	6 Months Ended
	Jun. 30, 2018
REGULATORY MATTERS
Dividend restrictions term	2 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
INCOME TAXES
Provision for income tax expense	$ 2,638	$ 3,181	$ 4,777	$ 6,213
Effective tax rate (as a percent)	19.30%	26.80%	19.20%	28.50%
Statutory rate (as a percent)			21.00%		35.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
EARNINGS PER SHARE
Net income for common shareholders	$ 11,042	$ 8,705	$ 20,154	$ 15,567
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,858	22,062	24,845	22,062
Dilutive effect of outstanding stock options and unvested restricted stock awards	139	86	132	86
Diluted weighted-average shares outstanding	24,997	22,148	24,977	22,148
Earnings per share:
Basic	$ 0.44	$ 0.39	$ 0.81	$ 0.71
Diluted	$ 0.44	$ 0.39	$ 0.81	$ 0.70