Stellar Bancorp (STEL) 10-K 28 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Feb. 24, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, Inc.
Entity Central Index Key	1,473,844
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 586.2
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		26,002,653
Entity Shell Company	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 54,450	$ 59,255
Interest-bearing deposits at other financial institutions	327,620	266,944
Total cash and cash equivalents	382,070	326,199
Time deposits in other banks		600
Debt securities	229,964	223,208
Equity investments	13,026	12,226
Loans held for sale		1,460
Loans, net of allowance for loan loss of $23,693 and $24,778 at December 31, 2018 and 2017, respectively	2,423,130	2,286,766
Premises and equipment, net of accumulated depreciation of $29,867 and $26,612 at December 31, 2018 and 2017, respectively	51,622	53,607
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $14,915 and $13,930 at December 31, 2018 and 2017, respectively	5,775	6,770
Bank-owned life insurance	71,525	68,010
Deferred tax asset, net	7,201	5,780
Repossessed real estate and other assets	12	705
Other assets	13,821	14,802
Total assets	3,279,096	3,081,083
Liabilities
Noninterest-bearing deposits	1,183,058	1,109,789
Interest-bearing deposits	1,583,224	1,493,183
Total deposits	2,766,282	2,602,972
Repurchase agreements	2,498	1,525
Junior subordinated debt	1,571	6,726
Other liabilities	21,120	23,646
Total liabilities	2,791,471	2,634,869
Commitments and contingencies (Note 16)
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, 25,777,693 and 25,731,504 shares issued at December 31, 2018 and 2017, 24,907,421 and 24,833,232 shares outstanding at December 31, 2018 and 2017, respectively	258	257
Additional paid-in capital	344,497	343,249
Retained earnings	160,626	118,353
Treasury stock, at cost, 870,272 and 898,272 shares held at December 31, 2018 and 2017, respectively	(14,781)	(15,256)
Accumulated other comprehensive loss, net of tax of $791 and $104 at December 31, 2018 and 2017, respectively	(2,975)	(389)
Total shareholders’ equity	487,625	446,214
Total liabilities and shareholders’ equity	$ 3,279,096	$ 3,081,083

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Allowance of loan loss	$ 23,693	$ 24,778
Premises and equipment, net of accumulated depreciation	29,867	26,612
Accumulated amortization	$ 14,915	$ 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	25,777,693	25,731,504
Common stock, shares outstanding	24,907,421	24,833,232
Treasury stock, shares	870,272	898,272
Accumulated other comprehensive loss, tax	$ 791	$ 104

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income
Interest and fees on loans	$ 123,895	$ 107,368	$ 103,723
Debt securities	6,020	5,347	3,801
Federal Funds and interest-bearing deposits	5,844	3,944	2,427
Total interest income	135,759	116,659	109,951
Interest expense
Deposits	10,586	7,652	7,073
Repurchase agreements	4	5	5
Federal Home Loan Bank advances	73
Note payable	15	906	1,061
Junior subordinated debt	420	322	266
Total interest expense	11,098	8,885	8,405
Net interest income	124,661	107,774	101,546
Provision (recapture) for loan losses	(1,756)	(338)	4,575
Net interest income after provision (recapture) for loan losses	126,417	108,112	96,971
Noninterest income
Deposit account service charges	6,281	5,800	6,538
Net gain on sale of assets	660	1,524	1,922
Card interchange fees	3,741	3,453	3,352
Earnings on bank-owned life insurance	1,815	1,580	1,356
Other	1,755	1,847	2,581
Total noninterest income	14,252	14,204	15,749
Noninterest expense
Salaries and employee benefits	51,524	48,573	44,239
Net occupancy expense	9,394	9,151	10,100
Regulatory fees	2,053	2,176	2,300
Data processing	2,677	2,629	2,484
Software	1,576	1,208	679
Printing, stationery and office	1,161	1,097	1,194
Amortization of intangibles	985	1,079	1,167
Professional and director fees	3,537	3,105	2,481
Correspondent bank and customer related transaction expenses	265	286	320
Loan processing costs	448	461	509
Advertising, marketing and business development	1,824	1,461	789
Repossessed real estate and other asset expense	72	609	318
Security and protection expense	1,276	1,355	1,718
Telephone and communications	1,530	1,316	1,444
Other expenses	3,694	3,786	3,760
Total noninterest expense	82,016	78,292	73,502
Net income before income tax expense	58,653	44,024	39,218
Income tax expense	11,364	16,453	12,010
Net income	$ 47,289	$ 27,571	$ 27,208
Earnings per common share
Basic	$ 1.90	$ 1.23	$ 1.23
Diluted	$ 1.89	$ 1.22	$ 1.22

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 47,289	$ 27,571	$ 27,208
Unrealized gains (losses) on debt securities available for sale arising during the period, net	(3,302)	897	(3,622)
Reclassification adjustments for net realized gains included in net income	29	27	28
Change in related deferred income tax	687	(391)	1,258
Other comprehensive income (loss), net of tax	(2,586)	533	(2,336)
Total comprehensive income	$ 44,703	$ 28,104	$ 24,872

Consolidated Statements of Chan

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, 2015	$ 230	$ 281,163	$ 72,461	$ (10,955)	$ 1,414	$ 344,313
Beginning balance, shares at Dec. 31, 2015	22,971,504			(668,030)
Net income			27,208			27,208
Dividends on common stock, $0.20 per share			(4,395)			(4,395)
Exercise of stock options		(2,705)		$ 6,588		3,883
Exercise of stock options (in shares)				393,698
Stock-based compensation expense		43				43
Other comprehensive income (loss), net of tax					(2,336)	(2,336)
Purchase of Shares of Treasury Stock				$ (11,079)		(11,079)
Purchase of Shares of Treasury Stock, Shares				(635,100)
Ending balance at Dec. 31, 2016	$ 230	278,501	95,274	$ (15,446)	(922)	357,637
Ending balance, shares at Dec. 31, 2016	22,971,504			(909,432)
Sale of common stock in initial public offering, net of offering costs of $7,241	$ 27	64,492				64,519
Sale of common stock in initial public offering, net of offering costs of $7,241, shares	2,760,000
Net income			27,571			27,571
Dividends on common stock, $0.20 per share			(4,561)			(4,561)
Exercise of stock options		(73)		$ 190		117
Exercise of stock options (in shares)				11,160
Stock-based compensation expense		329				329
Other comprehensive income (loss), net of tax						533
Other comprehensive income, net of tax			69		533	602
Ending balance at Dec. 31, 2017	$ 257	343,249	118,353	$ (15,256)	(389)	446,214
Ending balance, shares at Dec. 31, 2017	25,731,504			(898,272)
Net income			47,289			47,289
Dividends on common stock, $0.20 per share			(5,016)			(5,016)
Vesting of restricted stock, net of shares withheld for employee tax liabilities	$ 1	(172)				$ (171)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	46,189					46,189
Exercise of stock options		(181)		$ 475		$ 294
Exercise of stock options (in shares)				28,000
Stock-based compensation expense		1,601				1,601
Other comprehensive income (loss), net of tax					(2,586)	(2,586)
Ending balance at Dec. 31, 2018	$ 258	$ 344,497	$ 160,626	$ (14,781)	$ (2,975)	$ 487,625
Ending balance, shares at Dec. 31, 2018	25,777,693			(870,272)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Dividends on Common Stock	$ 0.20	$ 0.20	$ 0.20
Sale of common stock in IPO, offering costs		$ 7,241

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 47,289	$ 27,571	$ 27,208
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision (recapture) for loan losses	(1,756)	(338)	4,575
Depreciation	3,309	3,353	3,259
Amortization of intangibles	985	1,079	1,167
Amortization of premiums on securities	1,091	1,294	1,267
Earnings on bank-owned life insurance	(1,815)	(1,580)	(1,356)
Stock-based compensation expense	1,601	329	43
Deferred income tax provision (benefit)	(734)	2,932	601
Net realized gains on debt securities	(54)	(50)	(52)
Net gains on sales of assets	(660)	(1,524)	(1,922)
Valuation adjustments on repossessed real estate and other assets		341	65
Insurance reimbursements	(287)
Change in operating assets and liabilities:
Loans held for sale	1,921	(420)	1,408
Other assets	994	(3,156)	(1,188)
Other liabilities	(2,563)	5,759	967
Total adjustments	2,032	8,019	8,834
Net cash provided by operating activities	49,321	35,590	36,042
Cash flows from investing activities:
Purchases of debt securities	(495,870)	(355,525)	(406,173)
Proceeds from sales, calls and maturities of debt securities	462,842	317,284	322,861
Principal repayments of debt securities	21,962	20,692	18,595
Net increase in loans	(147,416)	(187,030)	(78,553)
Sales of loan participations	45,921	46,067	4,948
Purchases of loan participations	(35,281)	(18,491)
Net contributions to equity investments	(800)	(162)	(52)
Net decrease (increase) in time deposits in other banks	600		(200)
Proceeds from sales of U.S. Small Business Administration loans	1,972	2,173	3,490
Redemption (purchases) of bank-owned life insurance	(1,700)	(15,000)	367
Proceeds from sales of repossessed real estate and other assets	1,054	2,574	1,657
Net sales (purchases) of premises and equipment	(1,293)	1,985	1,486
Proceeds from insurance claims	287
Net cash used in investing activities	(147,722)	(185,433)	(131,574)
Cash flows from financing activities:
Net increase (decrease) in noninterest-bearing deposits	73,269	84,364	(28,533)
Net increase (decrease) in interest-bearing deposits	90,041	(22,152)	85,926
Net increase (decrease) in securities sold under agreements to repurchase	973	(818)	253
Proceeds from sale of stock in initial public offering		71,760
Offering costs for initial public offering		(7,241)
Proceeds from exercise of stock options	294	117	3,883
Payments to tax authorities for stock-based compensation	(171)
Purchases of treasury stock			(11,079)
Repayments of note payable		(27,679)	(3,321)
Redemption of trust preferred securities	(5,155)
Dividends paid on common stock	(4,979)	(4,412)	(4,395)
Net cash provided (used) in financing activities	154,272	93,939	42,734
Net increase (decrease) in cash, cash equivalents and restricted cash	55,871	(55,904)	(52,798)
Cash, cash equivalents and restricted cash, beginning	326,199	382,103	434,901
Cash, cash equivalents and restricted cash, ending	$ 382,070	$ 326,199	$ 382,103

BASIS OF PRESENTATION, NATURE O

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES	12 Months Ended
	Dec. 31, 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, or CBTX, operates 35 branches, 19 in the Houston market area, 15 in Beaumont/East Texas market area and one in Dallas through its wholly-owned subsidiary, CommunityBank of Texas, N.A., or the Bank. The Bank provides relationship-driven commercial banking products and services primarily to small and mid-sized businesses and professionals with operations within the Bank’s markets. 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. Basis of Presentation —The accompanying consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. Reclassification — Within noninterest expense, software costs for 2017 and 2016 have been reclassified from printing, stationery and office and other noninterest to a separate line to conform to the 2018 financial statement presentation in the consolidated statements of income. Segment Reporting —The Company has one reportable segment. The Company’s activities are interrelated and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision‑maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. Use of Estimates —In preparing financial statements in conformity with accounting principles generally accepted in the U.S., or GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term include, but are not limited to determination of the allowance for loan losses and fair values of financial instruments and goodwill and other intangible assets. Cash and Due from Banks —Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The majority of cash, cash equivalents and time deposits of the Company are maintained with major financial institutions in the U.S. and have original maturities less than 90 days. Interest-bearing deposit accounts with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and therefore, bear minimal risk. The Company periodically evaluates the stability of the financial institutions with which it has deposits to monitor this credit risk. The Company has cash deposits in correspondent financial institutions in excess of the amount insured by the FDIC in the amount of $99.4 million and $91.8 million at December 31, 2018 and 2017, respectively. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.5 million and $15.8 million at December 31, 2018 and 2017, respectively. Additionally, as of December 31, 2018 and 2017, the Company had $1.6 million in cash collateral used in its interest rate swap transactions. The Federal Reserve Bank reserve requirements and the cash collateral used in interest rate swap transactions are considered restricted cash. Loans —Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay‑off, are measured at historical cost and generally reported at their outstanding unpaid principal balances, net of any unearned income, charge‑offs and unamortized deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. The Company records lines of credit at their funded portion. All unfunded amounts for loans in process and credit lines are reported as unfunded commitments. Government Guaranteed Loans —The Company originates loans that are partially guaranteed by the Small Business Administration, or SBA, and the Company may sell the guaranteed portion of these loans as market conditions and pricing allow for a gain to be recorded on the sale. Loan sales are recorded when control over the transferred asset has been relinquished. Control over the transferred portion is deemed to be surrendered when the assets have been removed from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. In calculating the gain on sale of SBA loans, the Company’s investment in the loan is allocated among the unguaranteed portion of the loan, the servicing amount retained and the guaranteed portion of the loan sold, based on the relative fair market value of each portion. The gain on the sold portion of the loan is recognized based on the difference between the sale proceeds and the allocated investment. Nonperforming and Impaired Loans —Nonperforming loans includes loans which have been categorized by management as nonaccrual because of delinquency status or because collection of interest is doubtful. Loans restructured in a troubled debt restructurings are not considered nonperforming if the loans are not delinquent and otherwise performing in accordance with their restructured terms. When the payment of principal or interest on a loan is delinquent for 90 days or more, or earlier in some cases, the loan is placed on nonaccrual status, unless the loan is in the process of collection or renewal and the underlying collateral fully supports the carrying value of the loan. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan and the probability that the Company will collect all principal and interest amounts outstanding. When a loan is placed on nonaccrual status, interest accrued and uncollected during the current year prior to the judgment of uncollectability is charged to operations, unless the loan is well secured with collateral values sufficient to ensure collection of both principal and interest. Generally, any payments received on nonaccrual loans are applied first to outstanding loan amounts, reducing the Company’s recorded investment in the loan and next to the recovery of charged‑off principal or interest amounts. Any excess is treated as recovery of lost interest. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Interest income received on impaired loans is either applied against principal or realized as interest income, according to management’s judgment as to the collectability of principal. Troubled Debt Restructurings — From time to time, the Company modifies loan agreements with borrowers. A modified loan is considered a troubled debt restructuring if the borrower is experiencing financial difficulties and the borrower has been granted a concession. Modifications to loan terms may include interest rate reductions, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Interest is generally accrued on such loans in accordance with the new terms. Loans restructured in a troubled debt restructurings are not considered nonperforming if the loans are not delinquent and otherwise performing in accordance with their restructured terms. Allowance for Loan Losses —The allowance for loan losses represents management’s estimate of probable losses inherent in the loan portfolio. Credit exposures deemed to be uncollectible are charged against these accounts. Cash recovered on previously charged‑off amounts is recorded as a recovery to these accounts. The allowance for loan losses does not include amounts related to accrued interest receivable as accrued interest receivable is reversed when a loan is placed on nonaccrual or is charged‑off. The Company employs a systematic methodology for determining the allowance for loan losses that consists of two components: (i) specific valuation allowances based on probable losses on certain loans and (ii) historical valuation allowances based on historical average loss experience for similar loans with similar characteristics and trends adjusted, as necessary, to reflect the impact of current conditions and further adjusted for general economic conditions and other risk factors both internal and external to the Company. A specific allowance is established for loans considered impaired when the carrying value of the loan is more than the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The Company uses fair market value, less reasonable and customary costs to sell, for collateral dependent loans. In certain instances, a specific allowance will be established to protect against market deterioration. The allowance on the remaining portfolio segments is calculated using historical loss rates adjusted for qualitative factors. Criticized and classified loans, not deemed impaired, are subject to an allowance based on the historical loss migration analysis by grade adjusted for qualitative factors. Pass loans are subject to an allowance based on historical losses by product type adjusted for qualitative factors. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and historical losses in the portfolio. The general valuation factor is based upon a more qualitative analysis of risk. Various risks are considered in the determination of the environmental adjustment factor such as asset quality, lending management and staff, loan policies and procedures, loan review, credit concentrations, loan volumes, collateral values, compliance and economic trends on both a local and national level. A majority of the loan portfolio is comprised of loans to businesses and individuals in the Houston metropolitan and Beaumont/East Texas area. This geographic concentration subjects the loan portfolio to the general economic conditions within this area. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Loans Held for Sale —Loans held for sale include mortgage loans originated with the intent to sell on the secondary market. These loans are held for an interim period, usually less than 30 days. Accordingly, these loans are classified as held for sale and are carried at cost, which is determined on an aggregate basis and deemed to be the equivalent of fair value based on the short-term nature of the loans. Debt Securities — Debt securities that the Company intends to hold for an indefinite period of time are classified as available for sale, carried at fair value and unrealized gains and losses are excluded from earnings and reported as a separate component of shareholders’ equity until realized. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at cost, adjusted for the amortization of premiums and the accretion of discounts. Securities are evaluated for other‑than‑temporary impairment, or OTTI, on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. Premiums and discounts are amortized and accreted to income using the level‑yield method of accounting, adjusted for prepayments as applicable. The specific identification method of accounting is used to compute gains or losses on the sales of these assets. Equity Investments — The Company’s equity investments are carried at cost and evaluated for impairment at least annually and on an interim basis if an event or circumstance indicates that it is likely that an impairment has occurred as these investments do not have readily determinable fair values. Premises and Equipment —Premises and equipment are carried at cost, less accumulated depreciation. Depreciation expense is computed on the straight‑line method over the estimated useful lives of the assets. Land is carried at cost. Leasehold improvements are amortized over the life of the lease, plus renewal options or the estimated useful lives, whichever is shorter. Buildings are depreciated over a period not to exceed 32 years. Depending upon the type of furniture and equipment, the depreciation period will range from three to 10-years. Bank vehicles are amortized over a period of three years. Gains and losses on dispositions are included in other noninterest income. During periods of real estate development, interest on construction costs is capitalized if considered material by management. Goodwill and Other Intangible Assets — Goodwill is not amortized and is evaluated for impairment at least annually and on an interim basis if an event or circumstance indicates that it is likely that an impairment has occurred. Impairment would exist if the fair value of the reporting unit at the date of the test is less than the goodwill recorded on the financial statements. If an impairment of goodwill exists, a loss would then be recognized in the consolidated financial statements to the extent of the impairment. The Company’s identified intangibles are core deposits, customer relationship intangibles and loan servicing assets. Our core deposit and customer relationship intangible assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. Our servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date. Core deposit intangibles are amortized over a seven to 10-year period using an accelerated method in keeping with the anticipated benefits derived from those core deposits. Customer relationship intangibles are amortized over a 15- year period on a straight-line basis. Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. Servicing assets are initially recorded at fair market value and amortized in proportion to and over the service period and assessed for impairment or increased obligation based on fair value at each reporting date. Fair value is based on the gross coupon less an assumed contractual servicing cost or based upon discounted cash flows using market‑based assumptions. Servicing assets are amortized into noninterest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income is recorded for fees earned from servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Bank-owned life insurance —The Company has purchased life insurance policies on covered individuals, which are recorded at their cash surrender value. Changes in the cash surrender value of the policies are recorded in noninterest income. Gains or losses and proceeds from maturities are recognized upon the death of a covered employee, on receipt of a death notice or other verified evidence. Repossessed Real Estate and Other Assets —Real estate and other assets acquired through repossession or foreclosure are held for sale and are recorded at the fair value of the asset less estimated costs to sell. Outstanding loan balances are reduced to reflect this value through charges to the allowance for loan losses. If the fair value of the repossessed real estate and other assets declines after foreclosure, adjustments to reflect changes in fair value are recognized in income in the period such determinations are assessed. Required developmental costs associated with foreclosed property under construction are capitalized and considered in determining the fair value of the property. Operating expenses of these assets, net of related income and gains and losses on their disposition are included in other noninterest income or expense. Other Assets —Other assets include accrued interest receivables on loans and investments, prepaid expenses and other miscellaneous assets. Repurchase Agreements — The Company utilizes securities sold under repurchase agreements to facilitate the needs of our customers and to facilitate short-term borrowing needs. Securities sold under agreements to repurchase are stated at the amount of cash received in the transaction. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities. Derivative Financial Instruments —All derivatives are recorded at fair value on the balance sheet. Derivatives executed with the same counterparty are generally subject to master netting arrangements. Fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. The Company had no derivative instruments that qualified for hedge accounting during the periods reported herein, but it may in the future as circumstances arise. Fair Value Measurements —Fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is estimated based upon models that primarily use observable market‑based parameters as inputs. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Income Taxes —The Company prepares and reports income taxes on a consolidated basis. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized The Company may recognize the tax benefit of an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Transfers of Financial Assets —Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company’s loan participations sold subject to this guidance which met the conditions to be treated as a sale were recorded as such. Any securities sold under agreements to repurchase that did not meet the sale criteria are treated as a secured borrowing with pledge of collateral and included in securities available for sale and repurchase agreements in the Company’s consolidated balance sheets. Stock‑Based Compensation —Stock-based compensation is recognized as compensation cost in the consolidated statements of income based on the fair value on the date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options and 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. Compensation expense for awards not based on performance criteria is recognized over the required service period, on a straight-line basis. The impact of forfeitures is recognized as they occur. The number of shares earned under the Company’s performance-based restricted stock award agreements is based on the achievement of certain levels of certain performance goals. The fair value of performance-based restricted stock is estimated based on the market value of the Company’s common stock at the date of grant. Compensation expense for performance-based restricted stock is recognized for the probable award level over the period estimated to achieve the performance conditions and other goals, on a straight-line basis. If the probable award level and/or the period estimated to be achieved change, compensation expense will be adjusted via a cumulative catch-up adjustment to reflect these changes. The performance conditions and other goals must be achieved within five years or the awards expire. 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 shares determined for the basic earnings per share computation plus the potential dilution that could occur if outstanding stock options were exercised and restricted stock awards were vested and converted into common stock using the treasury stock method. Accounting Standards Recently Adopted Accounting Standards Update, or ASU 2014-09 (Topic 606): Revenue from Contracts with Customers. The Company adopted ASU 2014-09 effective January 1, 2018 with no material impact to the Company’s consolidated financial statements. The Company elected to use the modified retrospective transition method, which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption. Periods prior to the date of adoption were not retrospectively revised as the impact of ASU 2014-09 was not material. 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. A majority of the Company’s revenue is derived from interest income on financial assets, which is not within the scope of ASC 606. Income from changes in the cash surrender value of bank-owned life is also not within the scope of ASC 606. The Company’s revenue-generating activities that are within the scope of ASC 606 are included in its consolidated income statements in noninterest income. See table below. The Company’s revenue recognition for revenue streams within the scope of ASC 606 did not materially change from previous practice. 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 at a point in time based on activity. For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Deposit account service charges $ 6,281 $ 5,800 $ 6,538 Net gain on sale of assets 660 1,524 1,922 Card interchange fees 3,741 3,453 3,352 Other noninterest income 1,815 1,580 1,356 Deposit account service charges are fees from the Company’s customers for deposit related services, such as monthly account maintenance and activity or transaction-based fees. Revenue is recognized when the Company’s performance obligation is completed, which is generally monthly for account maintenance services or when a transaction is completed for activity or transaction-based fees. Payment for such performance obligations are received at the time the performance obligation is satisfied. Net gain on sale of assets includes 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 ASC 606. 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 are fees generated from debit card transactions. Revenue is recognized when the Company’s performance obligation is completed, which is generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. Other noninterest income includes a variety of items including wire transfer fee income, ATM fee income, letters of credit fee income and swap fee income. Revenue is recognized when the Company’s performance obligation is completed, which is generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. 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 14 — Fair Value Disclosures. 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 2018-10, Codification Improvements to Topic 842, Leases was issued in July 2018 to clarify narrow aspects of ASU 2016-02. In addition, ASU 2018-11, Leases (Topic 842) was also issued in July 2018 and allows application of ASU 2016-02 at the date of the adoption date and recognize a cumulative-effect adjustment to retained earnings. The standard applies to all leases existing at the date of initial application using a modified retrospective approach. An entity may choose to use either (i) the effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date and prior period financial statements included for comparison in the current financial statements are revised to reflect the adoption, including footnote disclosures required by the new standard. The Company is adopting the new standard on January 1, 2019, using the effective date as our date of initial application as allowed in the first option. Our financial statements and related footnotes will not be updated for ASU 2016-02 for dates and periods before the date of adoption. The Company has elected to apply certain practical expedients for transition and under those expedients the Company will not to reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company has also elected to use hindsight in determining lease term when considering options to extend the lease and the Company has chosen to exclude short-term leases defined as lease terms of 12 months or less. The Company has elected to separate non-lease components from lease components in its application of ASU 2016-02. The most significant impact will be 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 its liability to make the lease payments under these operating leases. The Company expects to record right-of-use assets totaling approximately $13.2 million and lease liabilities totaling approximately $15.4 million. Rent expense is not expected to differ significantly from that recognized in previous years. 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

DEBT SECURITIES

DEBT SECURITIES	12 Months Ended
	Dec. 31, 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 December 31, 2018 Debt securities available for sale: State and municipal securities $ 57,972 $ 345 $ (626) $ 57,691 U.S. agency securities: Debt securities 17,315 — (434) 16,881 Collateralized mortgage obligations 66,438 98 (1,122) 65,414 Mortgage-backed securities 90,845 230 (2,216) 88,859 Other securities 1,129 — (41) 1,088 Total $ 233,699 $ 673 $ (4,439) $ 229,933 Debt securities held to maturity: Mortgage-backed securities $ 31 $ 1 $ — $ 32 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 maturities as of the dates shown below were as follows: Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value December 31, 2018 Amounts maturing in: 1 year or less $ 3,224 $ 3,188 $ — $ — 1 year through 5 years 22,784 22,370 — — 5 years through 10 years 13,127 13,062 — — After 10 years 194,564 191,313 31 32 $ 233,699 $ 229,933 $ 31 $ 32 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. Debt securities with a carrying amount of $56.5 million, $6.1 million and $302,000 were sold during the years ended December 31, 2018, 2017 and 2016, respectively. At December 31, 2018 and 2017, debt securities with a carrying amount of approximately $49.9 million and $58.7 million respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. Pledged securities are maintained with our safekeeping agent. The Company held 167 and 52 debt securities at December 31, 2018 and 2017, respectively, 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 securities were acquired. The fair value of these securities is expected to recover as the 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 December 31, 2018 and 2017, management believes the unrealized losses detailed in the table below are temporary and no impairment loss has been recorded in the Company’s consolidated statements of income for the years ended December 31, 2018, 2017 and 2016. Debt securities with unrealized losses as of the dates shown below, aggregated by investment 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 December 31, 2018 Debt securities available for sale: State and municipal securities $ 20,892 $ (324) $ 6,584 $ (302) U.S. agency securities: Debt securities — — 16,882 (434) Collateralized mortgage obligations 8,854 (81) 46,157 (1,041) Mortgage-backed securities 21,745 (368) 46,183 (1,848) Other securities — — 1,088 (41) $ 51,491 $ (773) $ 116,894 $ (3,666) 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)

EQUITY INVESTMENTS

EQUITY INVESTMENTS	12 Months Ended
	Dec. 31, 2018
EQUITY INVESTMENTS
EQUITY INVESTMENTS	NOTE 3: EQUITY INVESTMENTS The Company’s unconsolidated investments that are considered equity securities as they represent ownership interests such as common or preferred stock were as follows for the dates indicated below. December 31, (Dollars in thousands) 2018 2017 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 1,250 1,189 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,364 1,625 Total $ 13,026 $ 12,226 Banks that are members of the Federal Home Loan Bank System, or 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 and 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. At December 31, 2018 and 2017, the Company had $3.0 million and $3.8 million, respectively, in outstanding unfunded commitments to these funds, which are subject to call. The Company’s 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 December 31, 2018.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2018
LOANS
LOANS	NOTE 4: LOANS Loans by loan class as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 519,779 $ 559,363 Real estate: Commercial real estate 795,733 738,293 Construction and development 515,533 449,211 1-4 family residential 282,011 258,584 Multi-family residential 221,194 220,305 Consumer 39,421 40,433 Agriculture 11,076 11,256 Other 68,382 40,344 Total gross loans 2,453,129 2,317,789 Less deferred loan fees and unearned discounts (6,306) (4,785) Less allowance for loan loss (23,693) (24,778) Less loans held for sale — (1,460) Loans, net $ 2,423,130 $ 2,286,766 Accrued interest receivable for loans is $6.8 million and $6.1 million at December 31, 2018 and 2017, respectively and is included in other assets in the 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 years ending December 31, 2018, 2017 and 2016, by loan class, are summarized as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period December 31, 2018 Commercial and industrial $ 7,000 $ 1,620 Commercial real estate 28,281 35,000 Construction and development — 9,301 $ 35,281 $ 45,921 December 31, 2017 Commercial and industrial $ — $ 23,000 Commercial real estate 12,885 20,505 Construction and development 5,606 2,562 $ 18,491 $ 46,067 December 31, 2016 Commercial real estate $ — $ 654 Construction and development — 4,294 $ — $ 4,948 Loans Guaranteed by the SBA The Company participates in the 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 years ended December 31, 2018, 2017 and 2016 were $2.0 million, $2.2 million and $3.5 million. Net gains recognized on sales of SBA loans were $153,000, $149,000 and $326,000 for the years ended December 31, 2018, 2017 and 2016 and are included in net gain on sales of assets in the consolidated income statements.

LOAN PERFORMANCE

LOAN PERFORMANCE	12 Months Ended
	Dec. 31, 2018
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 5: LOAN PERFORMANCE Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 1,317 $ 3,280 Real estate: Commercial real estate 1,517 3,216 Construction and development — 252 1-4 family residential 656 898 Consumer — — Total $ 3,490 $ 7,646 Interest income that would have been earned under the original terms of the nonaccrual loans was $163,000 $402,000 and $779,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The following is an aging analysis of the Company’s 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 December 31, 2018 Commercial and industrial $ 178 $ 881 $ 154 $ 1,213 $ 518,566 $ 519,779 $ — Real estate: Commercial real estate 68 1,089 605 1,762 793,971 795,733 — Construction and development 359 4,204 — 4,563 510,970 515,533 — 1-4 family residential 395 111 36 542 281,469 282,011 — Multi-family residential — — — — 221,194 221,194 — Consumer 28 — — 28 39,393 39,421 — Agriculture — — — — 11,076 11,076 — Other — — — — 68,382 68,382 — Total loans $ 1,028 $ 6,285 $ 795 $ 8,108 $ 2,445,021 $ 2,453,129 $ — 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 years ending December 31, 2018 and 2017, which remain outstanding as of 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 December 31, 2018 Commercial and industrial 6 $ 1,419 $ 916 $ — $ 503 $ — Commercial real estate 3 1,406 1,406 — — — Other 1 1,646 — — — 1,646 Total 10 $ 4,471 $ 2,322 $ — $ 503 $ 1,646 December 31, 2017 Commercial and industrial 2 $ 1,178 $ — $ — $ 1,178 $ — Commercial real estate 4 970 146 667 157 — Total 6 $ 2,148 $ 146 $ 667 $ 1,335 $ — The recorded investment in troubled debt restructurings was $11.4 million and $18.2 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, $1.8 million and $4.8 million of restructured loans were nonaccrual loans and $9.6 million and $13.4 million of restructured loans were accruing interest as of those periods. At December 31, 2018, the Company had an outstanding commitment to potentially fund $2.1 million 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	12 Months Ended
	Dec. 31, 2018
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES	NOTE 6: ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses, segregated by loan class, for the periods indicated below 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 December 31, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss (347) (3,494) 817 953 92 (181) (16) 420 (1,756) Charge-offs (1,928) (171) (1) (4) — (1) — (3) (2,108) Recoveries 2,737 20 — 6 — 3 10 3 2,779 Net (charge-offs) recoveries 809 (151) (1) 2 — 2 10 — 671 Ending balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Period-end amount allocated to: Specific reserve $ 525 $ 44 $ — $ 89 $ — $ — $ — $ 100 $ 758 General reserve 7,194 6,686 4,298 2,192 1,511 387 62 605 22,935 Total $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 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 December 31, 2016 Beginning balance $ 4,746 $ 7,058 $ 4,504 $ 2,295 $ 762 $ 363 $ 93 $ 5,494 $ 25,315 Provision (recapture) for loan loss 5,537 4,193 94 (1,012) 154 222 227 (4,840) 4,575 Charge-offs (4,884) (589) — (3) — (277) (267) (59) (6,079) Recoveries 1,010 108 — 6 — 45 26 — 1,195 Net (charge-offs) recoveries (3,874) (481) — 3 — (232) (241) (59) (4,884) Ending balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Period-end amount allocated to: Specific reserve $ 462 $ 206 $ — $ — $ — $ — $ — $ — $ 668 General reserve 5,947 10,564 4,598 1,286 916 353 79 595 24,338 Total $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 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 December 31, 2018 and 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, as described below, which are used as credit quality indicators. Pass —Credits in this category contain an acceptable amount of risk. 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 December 31, 2018 and 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 December 31, 2018 Commercial and industrial $ 504,425 5,768 9,586 $ 519,779 Real estate: Commercial real estate 781,035 10,370 4,328 795,733 Construction and development 511,329 4,204 — 515,533 1-4 family residential 274,781 2,175 5,055 282,011 Multi-family residential 221,194 — — 221,194 Consumer 39,140 246 35 39,421 Agriculture 11,048 — 28 11,076 Other 61,569 — 6,813 68,382 Total loans $ 2,404,521 $ 22,763 $ 25,845 $ 2,453,129 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 December 31, 2018 Commercial and industrial $ 4,378 $ 3,642 $ 635 $ 4,277 $ 525 $ 5,771 Real estate: Commercial real estate 4,128 3,374 596 3,970 44 6,135 Construction and development — — — — — 139 1-4 family residential 4,551 2,612 1,824 4,436 89 4,597 Consumer — — — — — 7 Other 6,814 5,572 1,241 6,813 100 7,841 Total loans $ 19,871 $ 15,200 $ 4,296 $ 19,496 $ 758 $ 24,490 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 Interest income recognized on impaired loans was $996,000, $1.1 million and $648,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The Company’s recorded investment in loans as of the dates shown below by loan class and based on the Company’s impairment methodology was as follows: December 31, 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 $ 4,277 $ 515,502 $ 519,779 $ 7,292 $ 552,071 $ 559,363 Real estate: Commercial real estate 3,970 791,763 795,733 9,292 729,001 738,293 Construction and development — 515,533 515,533 252 448,959 449,211 1-4 family residential 4,436 277,575 282,011 4,924 253,660 258,584 Multi-family residential — 221,194 221,194 — 220,305 220,305 Consumer — 39,421 39,421 — 40,433 40,433 Agriculture — 11,076 11,076 — 11,256 11,256 Other 6,813 61,569 68,382 7,152 33,192 40,344 Total $ 19,496 $ 2,433,633 $ 2,453,129 $ 28,912 $ 2,288,877 $ 2,317,789 At December 31, 2018 and 2017, the allowance allocated to specific reserves for loans individually evaluated for impairment was $758,000 and $1.0 million, respectively.

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 7: PREMISES AND EQUIPMENT The components of premises and equipment as the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,188 51,664 Furniture and equipment 15,426 14,887 Vehicles 232 202 Construction in progress 177 — 81,489 80,219 Less accumulated depreciation (29,867) (26,612) Premises and equipment, net $ 51,622 $ 53,607 Depreciation expense was $3.3 million, $3.4 million and $3.3 million for the years ended December 31, 2018, 2017 and 2016, respectively, which is included in net occupancy expense on the Company’s consolidated statements of income. Net gains and losses on dispositions of premises and equipment of $31,000, $742,000 and $1.3 million for the years ended December 31, 2018, 2017 and 2016, respectively were recognized and are included in net gain on sale of assets in the consolidated statements of income. See Net Gains on Sales of Premises and Equipment below. Net Gains on Sales of Premises and Equipment During the year ended December 31, 2017, the Company completed the sale of a branch and the real estate associated with another branch and recorded gains totaling $97,000 as a result of these transactions. Also during the year ended December 31, 2017, the Company settled a legal matter related to one of its branches and recorded a gain of $554,000. During the year ended December 31, 2016, the Company completed the sale of the land and building related to one of its branches and leased space from the owner for the retail branch operations for a ten-year period. The Company determined it has no continuing involvement with the property other than a normal leaseback and therefore the transaction qualified as a sale. A gain of $1.5 million was recorded on the sale.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at December 31, 2018 and 2017 and there was no changes in those years. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at December 31, 2018 or 2017. Other intangibles were as follows as of the dates shown below: Other intangibles assets at December 31, 2017 and 2016 are as follows: Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets December 31, 2018 Other intangible assets, net Core deposits 5.2 years $ 13,750 $ (12,561) $ 1,189 Customer relationships 10.0 years 6,629 (2,209) 4,420 Servicing assets 14.4 years 311 (145) 166 Total other intangible assets, net $ 20,690 $ (14,915) $ 5,775 December 31, 2017 Other intangible assets, net Core deposits 6.2 years $ 13,750 $ (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 $ 20,700 $ (13,930) $ 6,770 Servicing Assets Changes in the servicing assets as the dates shown below were as follows: For the Years Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 209 $ 186 Increase from loan sales 38 58 Decrease from serviced loans paid off or foreclosed (48) — Amortization (33) (35) Balance at end of period $ 166 $ 209 Estimated future amortization for core deposits and customer relationship intangible assets were as follows at for the date shown below: (Dollars in thousands) December 31, 2018 2019 $ 860 2020 768 2021 675 2022 584 2023 495 Thereafter 2,227 Total $ 5,609

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	12 Months Ended
	Dec. 31, 2018
BANK OWNED LIFE INSURANCE
BANK OWNED LIFE INSURANCE	NOTE 9: BANK OWNED LIFE INSURANCE Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 68,010 $ 51,430 $ 50,441 Purchases 1,700 15,000 — Redemptions — — (367) Earnings, net 1,815 1,580 1,356 Balance at end of year $ 71,525 $ 68,010 $ 51,430

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2018
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Interest-bearing demand accounts $ 387,457 $ 363,015 Money market accounts 737,770 702,299 Saving accounts 96,962 95,842 Certificates and other time deposits, $100,000 or greater 189,007 172,469 Certificates and other time deposits, less than $100,000 172,028 159,558 Total interest-bearing deposits 1,583,224 1,493,183 Noninterest-bearing deposits 1,183,058 1,109,789 Total deposits $ 2,766,282 $ 2,602,972 Scheduled maturities of time deposits as of the date shown below were as follows: (Dollars in thousands) December 31, 2018 Three months or less $ 71,817 Over three months through six months 50,966 Over six months through 12 months 119,180 Over 12 months through three years 108,436 Over three years 10,636 Total $ 361,035 At December 31, 2018 and 2017, the Company had $51.5 million and $45.3 million in deposits from public entities and brokered deposits of $104.5 million and $88.3 million, respectively. The Company had no major concentrations of deposits at December 31, 2018 or 2017 from any single or related groups of depositors.

NOTES PAYABLE AND LINES OF CRED

NOTES PAYABLE AND LINES OF CREDIT	12 Months Ended
	Dec. 31, 2018
NOTES PAYABLE AND LINES OF CREDIT
NOTES PAYABLE AND LINES OF CREDIT	NOTE 11: NOTE PAYABLE AND LINES OF CREDIT 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. On December 13, 2018, the Company entered into an amended and restated loan agreement, or the Amended Agreement, with Frost Bank, which extended the maturity date by one year and increased the Tangible Net worth requirement in the debt covenants from $240 million to $300 million. The Company can make draws on the Line of Credit for a period of 12 months beginning on the date of the Amended 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, 2024. The Company may prepay the principal amount of any loan under the Amended Agreement without premium or penalty. The obligations of the Company under the Amended 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 Amended Agreement include, among other things, the Company maintaining tangible net worth of not less than $300 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 December 31, 2018. As of December 31, 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 December 31, 2018. Additional Lines of Credit The FHLB allows us to borrow on a blanket floating lien status collateralized by certain loans. As of December 31, 2018 and 2017, total borrowing capacity of $919.9 million and $793.3 million, respectively, was available under this arrangement. During the second and third quarter of 2018, funds were borrowed under this agreement on a short-term basis. As of December 31, 2018 and 2017, there were no outstanding FHLB advances. As of December 31, 2018 and 2017, the Company 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 December 31, 2018 and 2017. 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.

JUNIOR SUBORDINATED DEBT

JUNIOR SUBORDINATED DEBT	12 Months Ended
	Dec. 31, 2018
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT	NOTE 12: 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. On December 17, 2018, the Crosby Statutory Trust I, or Crosby Trust, redeemed all of the Crosby Trust’s issued and outstanding trust preferred securities as a result of the concurrent redemption made by the Company of its junior subordinated debt securities held by the Crosby Trust. The aggregate redemption price paid by the Company, including accrued and unpaid interest, was $5.2 million. 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. In November 2018, the County Bancshares Trust I, or County Trust, agreed to redeem all of the County Trust’s issued and outstanding trust preferred securities upon concurrent redemption made by the Company of its junior subordinated debt securities held by the County Trust on January 7, 2019. The Company paid $5.7 million to pay its obligation for the junior subordinated debt, including accrued and unpaid interest. The Company received $4.1 million from the redemption of the preferred securities.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 13: 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 $169.0 million and $205.8 million in loans to related parties at December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, there were no loans made to related parties deemed nonaccrual, past due, restructured or classified as potential problem loans. Activity in loans to related parties as of the periods shown below was as follows: For the Years Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 205,768 $ 142,516 New loans 107,303 108,698 Repayments (144,220) (45,446) Balance at end of year $ 168,851 $ 205,768 Unfunded Commitments —At December 31, 2018 and 2017, the Company had approximately $55.7 million and $69.7 million in unfunded loan commitments to related parties, respectively. Deposits —The Company held related party deposits of approximately $311.2 million and $224.4 million at December 31, 2018 and 2017, respectively. Advertising —The Company incurred advertising expenses of approximately $94,000 and $192,000 for the years ended December 31, 2018 and 2017, respectively, to a vendor that is solely owned by a director of the Company.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	12 Months Ended
	Dec. 31, 2018
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES	NOTE 14: 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 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. Such valuation techniques are consistently applied. Inputs to valuation techniques refer to the assumptions used in pricing the asset or liability. Valuation inputs are categorized in a three-level hierarchy, that gives the highest priority to quotes prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs —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 —Other inputs observable inputs that may 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 or other inputs that are observable for the asset or liability such as interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates or inputs that are observable or can be corroborated by observable market data. Level 3 Inputs —Unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. During the years ended December 31, 2018 and 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 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 could result in different estimate of fair value. Fair value estimates are based on judgements regarding current economic conditions, risk characteristics of the various instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. Financial Instruments Measured at Fair Value on a Recurring Basis The Company’s 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 recorded at fair value. 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 Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies for reasonableness. 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: The Company obtains fair value measurements for its interest rate swaps 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. Financial assets and financial liabilities measured at fair value on a recurring basis as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Fair value of financial assets: Level 1 inputs: Debt securities available for sale - other securities $ 1,088 $ 1,087 Level 2 inputs: Debt securities available for sale State and municipal securities 57,691 61,916 U.S. Agency Securities: Debt securities 16,881 16,945 Collateralized mortgage obligations 65,414 61,253 Mortgage-backed securities 88,859 81,974 Interest rate swaps 962 766 Total fair value of financial assets $ 230,895 $ 223,941 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 962 $ 766 Total fair value of financial liabilities $ 962 $ 766 Financial Instruments Measured at Fair Value on a Non-recurring Basis A portion of financial instruments are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances. The Company’s financial assets measured at fair value on a non-recurring basis are certain impaired loans and as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Level 3 inputs Impaired loans: Commercial and industrial $ 110 $ 340 Commercial real estate 552 603 1-4 family residential 1,735 1,755 Other 1,141 — Total impaired loans $ 3,538 $ 2,698 Non‑Financial Assets and Non‑Financial Liabilities Measured on a Non-recurring Basis The fair value portion of non‑financial assets or non‑financial liabilities is measured on a non-recurring basis in certain circumstances, such as when there is evidence of impairment and may be subject to impairment adjustments. The Company’s non-financial assets whose fair value may be measured on a non-recurring basis include repossessed real estate, other foreclosed assets, goodwill and intangible assets, among other assets. The fair value of repossessed real estate and other foreclosed assets is estimated using Level 2 inputs and, as of the dates shown below, were as follows: December 31, (Dollars in thousands) 2018 2017 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 13 $ 881 Charge-offs recognized in the allowance for loan losses (1) — Fair value $ 12 $ 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 Financial Instruments Reported at Amortized Cost Fair market values and carrying amounts of financial instruments that are reported at cost as of the dates shown below were as follows: Year Ended December 31, 2018 2017 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,450 $ 54,450 $ 59,255 $ 59,255 Interest bearing deposits in banks 327,620 327,620 266,944 266,944 Level 2 inputs: Time deposits in other banks — — 600 600 Debt securities held to maturity 32 31 35 33 Bank-owned life insurance 71,525 71,525 68,010 68,010 Accrued interest receivable 8,227 8,227 7,429 7,429 Servicing asset 166 166 209 209 Level 3 inputs: Loans, including held for sale, net 2,432,753 2,423,130 2,299,742 2,288,226 Equity investments 13,026 13,026 12,226 12,226 Total financial assets $ 2,907,799 $ 2,898,175 $ 2,714,450 $ 2,702,932 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,183,058 $ 1,183,058 $ 1,109,789 $ 1,109,789 Level 2 inputs: Interest-bearing deposits 1,522,366 1,583,224 1,437,013 1,493,183 Repurchase agreements 2,498 2,498 1,525 1,525 Junior subordinated debt 1,571 1,571 6,726 6,726 Accrued interest payable 653 653 374 374 Total financial liabilities $ 2,710,146 $ 2,771,004 $ 2,555,427 $ 2,611,597 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 and as such the fair values shown above are not necessarily indicative of the amounts the Company will realize. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 15: 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 December 31, 2018 and 2017, no such deterioration was determined by management. At December 31, 2018 and 2017, the Company had 13 and 14 interest rate swap agreements outstanding with borrowers and financial institutions, respectively. 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. Interest rates on the Company’s swap agreements are based on the London Interbank Offered Rate of the U.S. Dollar deposits in Europe, or Libor. Derivative instruments outstanding as of the dates shown below were as follows: Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity December 31, 2018 Interest rate swaps with customers Other Assets $ 8,901 $ 169 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 years Interest rate swaps with financial institution Other Assets 32,923 793 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 years Interest rate swaps with customers Other Liabilities 32,923 (793) 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 years Interest rate swaps with financial institution Other Liabilities 8,901 (169) 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 years Total derivatives not designated as hedging instruments $ 83,648 $ — 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 $ —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 16: COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company enters into various transactions, which in accordance with GAAP are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These financial instruments include commitments to extend credit for loans in process and standby letters of credit. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on‑balance‑sheet instruments. Commitments to extend credit and standby letters of credit as of the dates shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, variable interest rate $ 726,277 $ 626,441 Commitments to extend credit, fixed interest rate 105,359 61,608 $ 831,636 $ 688,049 Standby letters of credit $ 31,729 $ 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. Lease Commitments Future minimum rent commitments under non-cancelable leases as of the date shown below were as follows: (Dollars in thousands) December 31, 2018 2019 $ 2,118 2020 2,139 2021 2,224 2022 2,285 2023 2,280 Thereafter 10,048 Total $ 21,094 The Company leases several of its banking facilities under operating leases. Total rent expense for operating leases was approximately $1.9 million, $1.8 million and $2.9 million for the years ended December 31, 2018, 2017 and 2016, respectively and is reflected in net occupancy expense on the consolidated statements of income. Litigation 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.

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	12 Months Ended
	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	NOTE 17: EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS Employee Benefit Plans The Company maintains a 401(k) employee benefit plan and 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 and may make additional contributions. During the years ended December 31, 2018 and 2017, the Company contributed $1.7 million and $1.7 million 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 contributes one‑fourth of the incentive bonus amount into a deferred compensation account. The deferred amounts accrue at a market rate of interest and are payable to the employees upon separation from the Bank provided vesting arrangements have been met. At December 31, 2018 and 2017, the amount payable, including interest, for this deferred plan was $2.5 million and $2.4 million, respectively and is included in other liabilities in the 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 $421,000 and $503,000 at December 31, 2018 and 2017, respectively. and is included in other liabilities in the consolidated balance sheets. The amount accrued at December 31, 2018 equals the present value of the benefits expected to be provided. 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 $219,000 and $32,000 at December 31, 2018 and 2017, respectively is included in other liabilities in the consolidated balance sheets. The liability will continue to accrue over the remaining period until payments commence such that the accrued amount at the eligibility date will equal the present value of all the future benefits expected to be paid. Change of Control Agreements In 2017, the Company entered into employment agreements with certain executive officers. These agreements provide for severance benefits if the Company terminates 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 $4.4 million at December 31, 2018, in accordance to 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 in these agreements entitling the employees to an aggregate amount of $2.5 million, which was accrued in the year ended December 31, 2017 and paid during the year ended December 31, 2018.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 18: 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. 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 December 31, 2018, 959,200 shares were available for future grant under the 2014 Plan. In September 2017, the Company adopted the 2017 Omnibus Incentive Plan, or the 2017 Plan. The 2017 Plan authorizes the Company to grant options and performance-based and non-performance based 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 December 31, 2018, 348,038 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: For the Years Ended December 31, 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 — — 80,000 21.00 Exercised (28,000) 10.52 (11,160) 10.47 Forfeited — — (56,832) 10.14 Outstanding at end of period 232,322 16.66 260,322 16.00 The fair value of options granted is estimated on the date of grant using the Black‑Scholes option pricing model. The assumptions below were used for the 2017 grants. Year Ended December 31, 2017 Dividend yield 0.95 % Expected volatility 35.97 % Risk free interest rate 2.42 % Expected life in years 6.0 The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. Expected volatility is based on the volatility of certain comparable public company peers. The risk‑free interest rate is based upon the U.S. Treasury yield curve in effect at the time of grant. Expected life is based on the ten-year option expiration term or historical exercise experience. A summary of stock options as of the date shown below was as follows: December 31, 2018 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 133,123 99,199 232,322 Weighted-average exercise price per share $ 14.52 $ 19.54 $ 16.66 Aggregate intrinsic value (in thousands) $ 1,981 $ 978 $ 2,959 Weighted-average remaining contractual term (years) 5.3 7.7 6.3 The fair value of the Company’s restricted stock awards is estimated based on the market value of the Company’s common stock at the date of grant. Restricted stock shares are considered 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. Non-performance based restricted stock grants 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. During 2018, the Company issued performance-based restricted stock. The number of shares earned under the Company’s performance-based restricted stock award agreements is based on the achievement of certain branch production goals. Compensation expense for performance-based restricted stock is recognized for the probable award level over the period estimated to achieve the performance conditions and other goals, on a straight-line basis. If the probable award level and/or the period estimated to be achieved change, compensation expense will be adjusted via a cumulative catch-up adjustment to reflect these changes. The performance conditions goals must be achieved within five years or the awards expire. The number of performance-based shares granted presented in the table below is based upon the attainment of the maximum number of shares possible to be earned. Restricted stock activity for the periods shown below was as follows: Non-performance Based Performance-based 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 12/31/2016 — $ — — $ — Granted 212,580 26.71 — — Vested — — — — Forfeited — — — — Outstanding at 12/31/2017 212,580 $ 26.71 — $ — Granted 21,500 30.44 24,000 34.46 Vested (51,307) 27.04 — — Forfeited (1,000) 28.64 — — Outstanding at 12/31/2018 181,773 $ 27.05 24,000 $ 34.46 The Company’s stock compensation plans allow the employee to elect to have shares withheld to satisfy their tax liability related to restricted stock vesting or stock option exercises. The number of shares issued and withheld for the period shown below was as follows: Shares Shares Total Issued Withheld Vested Restricted stock vested - 2018 46,189 5,118 51,307 A summary of restricted stock as of the date shown below was as follows: December 31, 2018 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 181,773 24,000 Weighted-average grant date fair value per share $ 27.05 $ 34.46 Aggregate fair value (in thousands) $ 5,344 $ 706 Weighted-average remaining vesting period (years) 3.7 3.2 For the years ended December 31, 2018, 2017 and 2016, stock compensation expense was $1.6 million, $329,000 and $43,000, respectively. As of December 31, 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 3.6 years.

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2018
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 19: 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 the 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 the 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 the 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 the 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 the 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 Company and the Bank are subject to the regulatory capital requirements administered by the Federal Reserve and, for the Bank, the OCC. Regulatory authorities can initiate certain mandatory actions if the Company or the Bank fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of December 31, 2018 and 2017, that the Company and the 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. As of December 31, 2018 and 2017, the Company and the Bank, were “well capitalized” based on the ratios presented below. Actual and required capital ratios as the dates shown below for the Company and the Bank were as follows for the dates presented: 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 December 31, 2018 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 405,012 $ 123,885 $ 192,710 N/A N/A Bank Only $ 363,140 $ 123,877 $ 192,697 $ 178,933 Tier I Capital to Risk-Weighted Assets: Consolidated $ 406,257 $ 165,180 $ 234,005 N/A N/A Bank Only $ 363,140 $ 165,169 $ 233,989 $ 220,225 Total Capital to Risk-Weighted Assets: Consolidated $ 430,238 $ 220,240 $ 289,065 N/A N/A Bank Only $ 387,211 $ 220,225 $ 289,046 $ 275,282 Tier 1 Leverage Capital to Average Assets: Consolidated $ 406,257 $ 127,350 $ 127,350 N/A N/A Bank Only $ 363,140 $ 127,350 $ 127,350 $ 159,188 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

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	NOTE 20: INCOME TAXES The components of the provision for income tax expense for the periods listed below were as follows: For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Current federal income tax $ 11,908 $ 13,364 $ 11,269 Current state income tax 190 157 140 Deferred income tax (734) 2,932 601 Total income tax expense $ 11,364 $ 16,453 $ 12,010 Income tax expense for the periods listed below differs from the applicable statutory rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 as follows: For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Tax expense calculated at statutory rate $ 12,317 $ 15,408 $ 13,726 Increase (decrease) resulting from: State income tax 150 102 140 Tax exempt interest income (834) (1,504) (1,585) Life insurance (381) (553) (485) Impact of tax law rate change — 3,857 — Other 112 (857) 214 Total income tax expense $ 11,364 $ 16,453 $ 12,010 Effective tax rate The Tax Cuts and Jobs Act of 2017 became effective January 1, 2018 and lowered the corporate federal income tax rate in the U.S. from 35% to 21%. Based upon this tax law enactment, the Company analyzed and remeasured its deferred tax positions to the new tax rate and recorded a $3.9 million adjustment to income tax expense in the consolidated income statement for the year ended December 31, 2017. The Company has completed its analysis related to tax reform and no material changes are included in the financial statements for the year ended December 31, 2018. The financial statements for the year ended December 31, 2018 reflect federal tax expense at the enacted tax rate of 21%. The Company had no other material impact to the financials related to tax reform for the year ended December 31, 2018. Deferred income taxes are provided for differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. The components of the net deferred tax asset for the periods shown below were as follows: December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for possible credit losses $ 4,976 $ 5,203 Compensation related 2,681 2,228 Deferred loan origination fees and loan costs 1,312 988 Loan related 137 423 Unrealized loss on securities available for sale 790 103 Other 230 215 Total deferred tax assets 10,126 9,160 Deferred tax liabilities: Accumulated depreciation (1,203) (1,228) Compensation 481(a) adjustment (476) (713) Core deposit intangibles (1,178) (1,378) Other (68) (61) Total deferred tax liabilities (2,925) (3,380) Net Deferred Tax Asset $ 7,201 $ 5,780 Due to an acquisition in 2015, the Company had approximately $1.5 million tax‑effected federal net operating loss carryforwards which were fully utilized during the year ended December 31, 2017. As of December 31, 2018, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2014 forward for the State of Texas and from the year 2015 forward for federal. When necessary, the Company would include interest expense assessed by taxing authorities in interest expense and penalties related to income taxes in other expense on its consolidated statements of income. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2018, 2017 and 2016. For the years ended December 31, 2018 and 2017, management has determined there were no material uncertain tax positions.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2018
Earnings per share:
EARNINGS PER SHARE	NOTE 21: EARNINGS PER SHARE The computation of basic and diluted earnings per share for the periods shown is below. Year Ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Net income for common shareholders $ 47,289 $ 27,571 $ 27,208 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,859 22,457 22,049 Dilutive effect of outstanding stock options and unvested restricted stock awards 159 116 186 Diluted weighted-average shares outstanding 25,018 22,573 22,235 Earnings per share: Basic $ 1.90 $ 1.23 $ 1.23 Diluted $ 1.89 $ 1.22 $ 1.22 For the year ended December 31, 2018, the Company has excluded from diluted weighted-average shares, the impact of 3,000 shares of unvested non-performance based restricted stock as they are anti-dilutive and 24,000 shares of performance-based restricted stock as they are contingently issuable and the performance conditions for these issuances have not been met.

PARENT COMPANY

PARENT COMPANY	12 Months Ended
	Dec. 31, 2018
PARENT COMPANY.
PARENT COMPANY	NOTE 22: PARENT COMPANY The following balance sheets, statements of income and statements of cash flow for CBTX, Inc. should be read in conjunction with the consolidated financial statements and the related notes. CBTX, INC. (Parent Company Only) Condensed Balance Sheets December 31, (Dollars in thousands) 2018 2017 Assets Cash and due from banks $ 44,189 $ 45,636 Investment in subsidiary 445,754 407,305 Deferred tax asset, net 145 141 Other assets 911 2,460 Total assets $ 490,999 $ 455,542 Liabilities and shareholders' equity Liabilities Junior subordinated debt $ 1,571 $ 6,726 Other liabilities 1,803 2,602 Total liabilities 3,374 9,328 Shareholders’ equity Common stock 258 257 Additional paid-in capital 344,497 343,249 Retained earnings 160,626 118,353 Treasury stock (14,781) (15,256) Accumulated other comprehensive loss (2,975) (389) Total shareholders’ equity 487,625 446,214 Total liabilities and shareholders’ equity $ 490,999 $ 455,542 CBTX, INC. (Parent Company Only) Condensed Income Statements For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest income Other $ 187 $ 142 $ 120 Interest expense Note payable 15 906 1,061 Junior subordinated debt 420 322 266 Total interest expense 435 1,228 1,327 Net interest expense (248) (1,086) (1,207) Noninterest income Dividend income from subsidiary 7,800 8,806 12,250 Total noninterest income 7,800 8,806 12,250 Noninterest expense Salaries and employee benefits 755 344 225 Net occupancy expense — — 14 Data processing 44 37 28 Printing, stationery and office 12 20 10 Professional and director fees 728 842 341 Other expenses 196 17 31 Total noninterest expense 1,735 1,260 649 Income before income tax benefit and equity in undistributed income of subsidiary 5,817 6,460 10,394 Income tax benefit (437) (1,518) (639) Income before equity in undistributed income of subsidiary 6,254 7,978 11,033 Equity in undistributed income of subsidiary 41,035 19,593 16,175 Net income $ 47,289 $ 27,571 $ 27,208 CBTX, INC. (Parent Company Only) Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 47,289 $ 27,571 $ 27,208 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Stock-based compensation expense 1,601 329 43 Equity in undistributed net income loss of subsidiary (41,035) (19,593) (16,175) Deferred tax provision (benefit) (4) 391 295 Change in operating assets and liabilities: Other assets 1,549 (1,216) 1,808 Other liabilities (836) 552 (97) Total adjustments (38,725) (19,537) (14,126) Net cash provided by operating activities 8,564 8,034 13,082 Cash flows from investing activities: Net cash used in investing activities — — — Cash flows from financing activities: Proceeds from sale of common stock in initial public offering — 64,519 — Proceeds from exercise of stock options 294 117 3,883 Payments to tax authorities for stock-based compensation (171) — — Purchase of treasury stock — — (11,079) Repayment of note payable — (27,679) (3,321) Redemption of trust preferred securities (5,155) — — Dividends paid on common stock (4,979) (4,412) (4,395) Net cash provided (used) in financing activities (10,011) 32,545 (14,912) Net increase (decrease) in cash and cash equivalents (1,447) 40,579 (1,830) Cash and cash equivalents, beginning 45,636 5,057 6,887 Cash and cash equivalents, ending $ 44,189 $ 45,636 $ 5,057

QUARTERLY FINANCIAL DATA (UNAUD

QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2018
QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE 23: QUARTERLY FINANCIAL DATA (UNAUDITED) Unaudited quarterly financial data for the periods indicated below was as follows: Year Ended December 31, 2018 (Dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 31,085 $ 33,127 $ 34,665 $ 36,882 Interest expense 2,046 2,251 3,139 3,662 Net interest income 29,039 30,876 31,526 33,220 Provision (recapture) for loan losses 865 690 (1,142) (2,169) Net interest income after provision (recapture) for loan losses 28,174 30,186 32,668 35,389 Noninterest income 3,361 3,506 3,526 3,859 Noninterest expense 20,284 20,012 19,964 21,756 Income before income taxes 11,251 13,680 16,230 17,492 Income tax expense 2,139 2,638 3,207 3,380 Net income $ 9,112 $ 11,042 $ 13,023 $ 14,112 Earnings per share: Basic $ 0.37 $ 0.44 $ 0.52 $ 0.57 Diluted $ 0.37 $ 0.44 $ 0.52 $ 0.56 Year Ended December 31, 2017 (Dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 27,998 $ 28,726 $ 29,569 $ 30,366 Interest expense 2,165 2,201 2,318 2,201 Net interest income 25,833 26,525 27,251 28,165 Provision (recapture) for loan losses 960 (694) (1,654) 1,050 Net interest income after provision (recapture) for loan losses 24,873 27,219 28,905 27,115 Noninterest income 3,448 3,526 4,086 3,144 Noninterest expense 18,427 18,859 19,017 21,989 Income before income taxes 9,894 11,886 13,974 8,270 Income tax expense 3,032 3,181 3,927 6,313 Net income $ 6,862 $ 8,705 $ 10,047 $ 1,957 Earnings per share: Basic $ 0.31 $ 0.39 $ 0.46 $ 0.08 Diluted $ 0.31 $ 0.39 $ 0.45 $ 0.08

BASIS OF PRESENTATION, NATURE_2

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Basis of Presentation	Basis of Presentation —The accompanying consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.
Reclassification	Reclassification — Within noninterest expense, software costs for 2017 and 2016 have been reclassified from printing, stationery and office and other noninterest to a separate line to conform to the 2018 financial statement presentation in the consolidated statements of income.
Segment Reporting	Segment Reporting —The Company has one reportable segment. The Company’s activities are interrelated and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision‑maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions.
Use of Estimates	Use of Estimates —In preparing financial statements in conformity with accounting principles generally accepted in the U.S., or GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term include, but are not limited to determination of the allowance for loan losses and fair values of financial instruments and goodwill and other intangible assets.
Cash and Due from Banks	Cash and Due from Banks —Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The majority of cash, cash equivalents and time deposits of the Company are maintained with major financial institutions in the U.S. and have original maturities less than 90 days. Interest-bearing deposit accounts with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and therefore, bear minimal risk. The Company periodically evaluates the stability of the financial institutions with which it has deposits to monitor this credit risk. The Company has cash deposits in correspondent financial institutions in excess of the amount insured by the FDIC in the amount of $99.4 million and $91.8 million at December 31, 2018 and 2017, respectively. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.5 million and $15.8 million at December 31, 2018 and 2017, respectively. Additionally, as of December 31, 2018 and 2017, the Company had $1.6 million in cash collateral used in its interest rate swap transactions. The Federal Reserve Bank reserve requirements and the cash collateral used in interest rate swap transactions are considered restricted cash.
Loans	Loans —Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay‑off, are measured at historical cost and generally reported at their outstanding unpaid principal balances, net of any unearned income, charge‑offs and unamortized deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. The Company records lines of credit at their funded portion. All unfunded amounts for loans in process and credit lines are reported as unfunded commitments.
Government Guaranteed Loans	Government Guaranteed Loans —The Company originates loans that are partially guaranteed by the Small Business Administration, or SBA, and the Company may sell the guaranteed portion of these loans as market conditions and pricing allow for a gain to be recorded on the sale. Loan sales are recorded when control over the transferred asset has been relinquished. Control over the transferred portion is deemed to be surrendered when the assets have been removed from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. In calculating the gain on sale of SBA loans, the Company’s investment in the loan is allocated among the unguaranteed portion of the loan, the servicing amount retained and the guaranteed portion of the loan sold, based on the relative fair market value of each portion. The gain on the sold portion of the loan is recognized based on the difference between the sale proceeds and the allocated investment.
Nonperforming and Impaired Loans	Nonperforming and Impaired Loans —Nonperforming loans includes loans which have been categorized by management as nonaccrual because of delinquency status or because collection of interest is doubtful. Loans restructured in a troubled debt restructurings are not considered nonperforming if the loans are not delinquent and otherwise performing in accordance with their restructured terms. When the payment of principal or interest on a loan is delinquent for 90 days or more, or earlier in some cases, the loan is placed on nonaccrual status, unless the loan is in the process of collection or renewal and the underlying collateral fully supports the carrying value of the loan. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan and the probability that the Company will collect all principal and interest amounts outstanding. When a loan is placed on nonaccrual status, interest accrued and uncollected during the current year prior to the judgment of uncollectability is charged to operations, unless the loan is well secured with collateral values sufficient to ensure collection of both principal and interest. Generally, any payments received on nonaccrual loans are applied first to outstanding loan amounts, reducing the Company’s recorded investment in the loan and next to the recovery of charged‑off principal or interest amounts. Any excess is treated as recovery of lost interest. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Interest income received on impaired loans is either applied against principal or realized as interest income, according to management’s judgment as to the collectability of principal.
Troubled Debt Restructurings	Troubled Debt Restructurings — From time to time, the Company modifies loan agreements with borrowers. A modified loan is considered a troubled debt restructuring if the borrower is experiencing financial difficulties and the borrower has been granted a concession. Modifications to loan terms may include interest rate reductions, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Interest is generally accrued on such loans in accordance with the new terms. Loans restructured in a troubled debt restructurings are not considered nonperforming if the loans are not delinquent and otherwise performing in accordance with their restructured terms.
Allowance for Loan Losses	Allowance for Loan Losses —The allowance for loan losses represents management’s estimate of probable losses inherent in the loan portfolio. Credit exposures deemed to be uncollectible are charged against these accounts. Cash recovered on previously charged‑off amounts is recorded as a recovery to these accounts. The allowance for loan losses does not include amounts related to accrued interest receivable as accrued interest receivable is reversed when a loan is placed on nonaccrual or is charged‑off. The Company employs a systematic methodology for determining the allowance for loan losses that consists of two components: (i) specific valuation allowances based on probable losses on certain loans and (ii) historical valuation allowances based on historical average loss experience for similar loans with similar characteristics and trends adjusted, as necessary, to reflect the impact of current conditions and further adjusted for general economic conditions and other risk factors both internal and external to the Company. A specific allowance is established for loans considered impaired when the carrying value of the loan is more than the present value of expected cash flows discounted at the loan’s effective interest rate or, as a practical expedient, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The Company uses fair market value, less reasonable and customary costs to sell, for collateral dependent loans. In certain instances, a specific allowance will be established to protect against market deterioration. The allowance on the remaining portfolio segments is calculated using historical loss rates adjusted for qualitative factors. Criticized and classified loans, not deemed impaired, are subject to an allowance based on the historical loss migration analysis by grade adjusted for qualitative factors. Pass loans are subject to an allowance based on historical losses by product type adjusted for qualitative factors. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and historical losses in the portfolio. The general valuation factor is based upon a more qualitative analysis of risk. Various risks are considered in the determination of the environmental adjustment factor such as asset quality, lending management and staff, loan policies and procedures, loan review, credit concentrations, loan volumes, collateral values, compliance and economic trends on both a local and national level. A majority of the loan portfolio is comprised of loans to businesses and individuals in the Houston metropolitan and Beaumont/East Texas area. This geographic concentration subjects the loan portfolio to the general economic conditions within this area. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses.
Loans Held for Sale	Loans Held for Sale —Loans held for sale include mortgage loans originated with the intent to sell on the secondary market. These loans are held for an interim period, usually less than 30 days. Accordingly, these loans are classified as held for sale and are carried at cost, which is determined on an aggregate basis and deemed to be the equivalent of fair value based on the short-term nature of the loans.
Debt Securities	Debt Securities — Debt securities that the Company intends to hold for an indefinite period of time are classified as available for sale, carried at fair value and unrealized gains and losses are excluded from earnings and reported as a separate component of shareholders’ equity until realized. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at cost, adjusted for the amortization of premiums and the accretion of discounts. Securities are evaluated for other‑than‑temporary impairment, or OTTI, on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. Premiums and discounts are amortized and accreted to income using the level‑yield method of accounting, adjusted for prepayments as applicable. The specific identification method of accounting is used to compute gains or losses on the sales of these assets.
Equity Investments	Equity Investments — The Company’s equity investments are carried at cost and evaluated for impairment at least annually and on an interim basis if an event or circumstance indicates that it is likely that an impairment has occurred as these investments do not have readily determinable fair values.
Premises and Equipment	Premises and Equipment —Premises and equipment are carried at cost, less accumulated depreciation. Depreciation expense is computed on the straight‑line method over the estimated useful lives of the assets. Land is carried at cost. Leasehold improvements are amortized over the life of the lease, plus renewal options or the estimated useful lives, whichever is shorter. Buildings are depreciated over a period not to exceed 32 years. Depending upon the type of furniture and equipment, the depreciation period will range from three to 10-years. Bank vehicles are amortized over a period of three years. Gains and losses on dispositions are included in other noninterest income. During periods of real estate development, interest on construction costs is capitalized if considered material by management.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets — Goodwill is not amortized and is evaluated for impairment at least annually and on an interim basis if an event or circumstance indicates that it is likely that an impairment has occurred. Impairment would exist if the fair value of the reporting unit at the date of the test is less than the goodwill recorded on the financial statements. If an impairment of goodwill exists, a loss would then be recognized in the consolidated financial statements to the extent of the impairment. The Company’s identified intangibles are core deposits, customer relationship intangibles and loan servicing assets. Our core deposit and customer relationship intangible assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. Our servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date. Core deposit intangibles are amortized over a seven to 10-year period using an accelerated method in keeping with the anticipated benefits derived from those core deposits. Customer relationship intangibles are amortized over a 15- year period on a straight-line basis. Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. Servicing assets are initially recorded at fair market value and amortized in proportion to and over the service period and assessed for impairment or increased obligation based on fair value at each reporting date. Fair value is based on the gross coupon less an assumed contractual servicing cost or based upon discounted cash flows using market‑based assumptions. Servicing assets are amortized into noninterest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income is recorded for fees earned from servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned.
Bank owned life insurance	Bank-owned life insurance —The Company has purchased life insurance policies on covered individuals, which are recorded at their cash surrender value. Changes in the cash surrender value of the policies are recorded in noninterest income. Gains or losses and proceeds from maturities are recognized upon the death of a covered employee, on receipt of a death notice or other verified evidence.
Repossessed Real Estate and Other Assets	Repossessed Real Estate and Other Assets —Real estate and other assets acquired through repossession or foreclosure are held for sale and are recorded at the fair value of the asset less estimated costs to sell. Outstanding loan balances are reduced to reflect this value through charges to the allowance for loan losses. If the fair value of the repossessed real estate and other assets declines after foreclosure, adjustments to reflect changes in fair value are recognized in income in the period such determinations are assessed. Required developmental costs associated with foreclosed property under construction are capitalized and considered in determining the fair value of the property. Operating expenses of these assets, net of related income and gains and losses on their disposition are included in other noninterest income or expense.
Other Assets	Other Assets —Other assets include accrued interest receivables on loans and investments, prepaid expenses and other miscellaneous assets.
Repurchase Agreements	Repurchase Agreements — The Company utilizes securities sold under repurchase agreements to facilitate the needs of our customers and to facilitate short-term borrowing needs. Securities sold under agreements to repurchase are stated at the amount of cash received in the transaction. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities.
Derivative Financial Instruments	Derivative Financial Instruments —All derivatives are recorded at fair value on the balance sheet. Derivatives executed with the same counterparty are generally subject to master netting arrangements. Fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. The Company had no derivative instruments that qualified for hedge accounting during the periods reported herein, but it may in the future as circumstances arise.
Fair Value Measurements	. Fair Value Measurements —Fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is estimated based upon models that primarily use observable market‑based parameters as inputs. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
Income Taxes	Income Taxes —The Company prepares and reports income taxes on a consolidated basis. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized The Company may recognize the tax benefit of an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.
Transfers of Financial Assets	Transfers of Financial Assets —Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company’s loan participations sold subject to this guidance which met the conditions to be treated as a sale were recorded as such. Any securities sold under agreements to repurchase that did not meet the sale criteria are treated as a secured borrowing with pledge of collateral and included in securities available for sale and repurchase agreements in the Company’s consolidated balance sheets.
Stock-Based Compensation	Stock‑Based Compensation —Stock-based compensation is recognized as compensation cost in the consolidated statements of income based on the fair value on the date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options and 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. Compensation expense for awards not based on performance criteria is recognized over the required service period, on a straight-line basis. The impact of forfeitures is recognized as they occur. The number of shares earned under the Company’s performance-based restricted stock award agreements is based on the achievement of certain levels of certain performance goals. The fair value of performance-based restricted stock is estimated based on the market value of the Company’s common stock at the date of grant. Compensation expense for performance-based restricted stock is recognized for the probable award level over the period estimated to achieve the performance conditions and other goals, on a straight-line basis. If the probable award level and/or the period estimated to be achieved change, compensation expense will be adjusted via a cumulative catch-up adjustment to reflect these changes. The performance conditions and other goals must be achieved within five years or the awards expire.
Earnings Per Share	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 shares determined for the basic earnings per share computation plus the potential dilution that could occur if outstanding stock options were exercised and restricted stock awards were vested and converted into common stock using the treasury stock method.
Accounting Standards Recently Adopted	Accounting Standards Recently Adopted Accounting Standards Update, or ASU 2014-09 (Topic 606): Revenue from Contracts with Customers. The Company adopted ASU 2014-09 effective January 1, 2018 with no material impact to the Company’s consolidated financial statements. The Company elected to use the modified retrospective transition method, which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption. Periods prior to the date of adoption were not retrospectively revised as the impact of ASU 2014-09 was not material. 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. A majority of the Company’s revenue is derived from interest income on financial assets, which is not within the scope of ASC 606. Income from changes in the cash surrender value of bank-owned life is also not within the scope of ASC 606. The Company’s revenue-generating activities that are within the scope of ASC 606 are included in its consolidated income statements in noninterest income. See table below. The Company’s revenue recognition for revenue streams within the scope of ASC 606 did not materially change from previous practice. 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 at a point in time based on activity. For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Deposit account service charges $ 6,281 $ 5,800 $ 6,538 Net gain on sale of assets 660 1,524 1,922 Card interchange fees 3,741 3,453 3,352 Other noninterest income 1,815 1,580 1,356 Deposit account service charges are fees from the Company’s customers for deposit related services, such as monthly account maintenance and activity or transaction-based fees. Revenue is recognized when the Company’s performance obligation is completed, which is generally monthly for account maintenance services or when a transaction is completed for activity or transaction-based fees. Payment for such performance obligations are received at the time the performance obligation is satisfied. Net gain on sale of assets includes 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 ASC 606. 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 are fees generated from debit card transactions. Revenue is recognized when the Company’s performance obligation is completed, which is generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. Other noninterest income includes a variety of items including wire transfer fee income, ATM fee income, letters of credit fee income and swap fee income. Revenue is recognized when the Company’s performance obligation is completed, which is generally when a transaction is completed. Payment for such performance obligations are generally received at the time the performance obligation is satisfied. 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 14 — Fair Value Disclosures.
Accounting Standards Not Yet Adopted	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 2018-10, Codification Improvements to Topic 842, Leases was issued in July 2018 to clarify narrow aspects of ASU 2016-02. In addition, ASU 2018-11, Leases (Topic 842) was also issued in July 2018 and allows application of ASU 2016-02 at the date of the adoption date and recognize a cumulative-effect adjustment to retained earnings. The standard applies to all leases existing at the date of initial application using a modified retrospective approach. An entity may choose to use either (i) the effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date and prior period financial statements included for comparison in the current financial statements are revised to reflect the adoption, including footnote disclosures required by the new standard. The Company is adopting the new standard on January 1, 2019, using the effective date as our date of initial application as allowed in the first option. Our financial statements and related footnotes will not be updated for ASU 2016-02 for dates and periods before the date of adoption. The Company has elected to apply certain practical expedients for transition and under those expedients the Company will not to reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company has also elected to use hindsight in determining lease term when considering options to extend the lease and the Company has chosen to exclude short-term leases defined as lease terms of 12 months or less. The Company has elected to separate non-lease components from lease components in its application of ASU 2016-02. The most significant impact will be 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 its liability to make the lease payments under these operating leases. The Company expects to record right-of-use assets totaling approximately $13.2 million and lease liabilities totaling approximately $15.4 million. Rent expense is not expected to differ significantly from that recognized in previous years. 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 in the process of developing its process and methodology, with the assistance of an outside consultant. Existing technology is being adapted to conform to the requirements of ASU 2016-13. The adoption of ASU 2016-01 will require changes to the Company’s accounting policies and disclosures for credit losses on financial instruments. The Company is continuing to evaluate the impact of this pronouncement on the allowance for credit losses and related future provisions. 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 will adopt ASU 2017-04 for its goodwill impairment testing during the year ended December 31, 2019.
Cash Flow Reporting	Cash Flow Reporting — Supplemental disclosures of cash flow information are as follows for the years ended December 31, 2018, 2017 and 2016: For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Supplemental disclosures of cash flow information: Cash paid for taxes $ 11,627 $ 13,752 $ 11,390 Cash paid for interest on deposits and repurchase agreements 10,391 7,701 7,051 Cash paid for interest on notes payable — 1,078 1,063 Cash paid for interest on junior subordinated debt 412 315 258 Supplemental disclosures of non-cash flow information: Dividends accrued for restricted stock 43 11 — Repossessed real estate and other assets 349 881 2,671

BASIS OF PRESENTATION, NATURE_3

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2018
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Revenue Recognition	For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Deposit account service charges $ 6,281 $ 5,800 $ 6,538 Net gain on sale of assets 660 1,524 1,922 Card interchange fees 3,741 3,453 3,352 Other noninterest income 1,815 1,580 1,356
Supplemental disclosures of cash flow information	For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Supplemental disclosures of cash flow information: Cash paid for taxes $ 11,627 $ 13,752 $ 11,390 Cash paid for interest on deposits and repurchase agreements 10,391 7,701 7,051 Cash paid for interest on notes payable — 1,078 1,063 Cash paid for interest on junior subordinated debt 412 315 258 Supplemental disclosures of non-cash flow information: Dividends accrued for restricted stock 43 11 — Repossessed real estate and other assets 349 881 2,671

DEBT SECURITIES (Tables)

DEBT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Debt securities available for sale: State and municipal securities $ 57,972 $ 345 $ (626) $ 57,691 U.S. agency securities: Debt securities 17,315 — (434) 16,881 Collateralized mortgage obligations 66,438 98 (1,122) 65,414 Mortgage-backed securities 90,845 230 (2,216) 88,859 Other securities 1,129 — (41) 1,088 Total $ 233,699 $ 673 $ (4,439) $ 229,933 Debt securities held to maturity: Mortgage-backed securities $ 31 $ 1 $ — $ 32 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	Debt Securities Available for Sale Debt Securities Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value December 31, 2018 Amounts maturing in: 1 year or less $ 3,224 $ 3,188 $ — $ — 1 year through 5 years 22,784 22,370 — — 5 years through 10 years 13,127 13,062 — — After 10 years 194,564 191,313 31 32 $ 233,699 $ 229,933 $ 31 $ 32 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 December 31, 2018 Debt securities available for sale: State and municipal securities $ 20,892 $ (324) $ 6,584 $ (302) U.S. agency securities: Debt securities — — 16,882 (434) Collateralized mortgage obligations 8,854 (81) 46,157 (1,041) Mortgage-backed securities 21,745 (368) 46,183 (1,848) Other securities — — 1,088 (41) $ 51,491 $ (773) $ 116,894 $ (3,666) 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)

EQUITY INVESTMENTS (Tables)

EQUITY INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
EQUITY INVESTMENTS
Schedule of equity investments that do not have readily determinable fair values	December 31, (Dollars in thousands) 2018 2017 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 1,250 1,189 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,364 1,625 Total $ 13,026 $ 12,226

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2018
LOANS
Loans, by portfolio segment	December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 519,779 $ 559,363 Real estate: Commercial real estate 795,733 738,293 Construction and development 515,533 449,211 1-4 family residential 282,011 258,584 Multi-family residential 221,194 220,305 Consumer 39,421 40,433 Agriculture 11,076 11,256 Other 68,382 40,344 Total gross loans 2,453,129 2,317,789 Less deferred loan fees and unearned discounts (6,306) (4,785) Less allowance for loan loss (23,693) (24,778) Less loans held for sale — (1,460) Loans, net $ 2,423,130 $ 2,286,766
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period December 31, 2018 Commercial and industrial $ 7,000 $ 1,620 Commercial real estate 28,281 35,000 Construction and development — 9,301 $ 35,281 $ 45,921 December 31, 2017 Commercial and industrial $ — $ 23,000 Commercial real estate 12,885 20,505 Construction and development 5,606 2,562 $ 18,491 $ 46,067 December 31, 2016 Commercial real estate $ — $ 654 Construction and development — 4,294 $ — $ 4,948

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	12 Months Ended
	Dec. 31, 2018
LOAN PERFORMANCE
Nonaccrual loans, segregated by loan class	December 31, (Dollars in thousands) 2018 2017 Commercial and industrial $ 1,317 $ 3,280 Real estate: Commercial real estate 1,517 3,216 Construction and development — 252 1-4 family residential 656 898 Consumer — — Total $ 3,490 $ 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 December 31, 2018 Commercial and industrial $ 178 $ 881 $ 154 $ 1,213 $ 518,566 $ 519,779 $ — Real estate: Commercial real estate 68 1,089 605 1,762 793,971 795,733 — Construction and development 359 4,204 — 4,563 510,970 515,533 — 1-4 family residential 395 111 36 542 281,469 282,011 — Multi-family residential — — — — 221,194 221,194 — Consumer 28 — — 28 39,393 39,421 — Agriculture — — — — 11,076 11,076 — Other — — — — 68,382 68,382 — Total loans $ 1,028 $ 6,285 $ 795 $ 8,108 $ 2,445,021 $ 2,453,129 $ — 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 December 31, 2018 Commercial and industrial 6 $ 1,419 $ 916 $ — $ 503 $ — Commercial real estate 3 1,406 1,406 — — — Other 1 1,646 — — — 1,646 Total 10 $ 4,471 $ 2,322 $ — $ 503 $ 1,646 December 31, 2017 Commercial and industrial 2 $ 1,178 $ — $ — $ 1,178 $ — Commercial real estate 4 970 146 667 157 — Total 6 $ 2,148 $ 146 $ 667 $ 1,335 $ —

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss (347) (3,494) 817 953 92 (181) (16) 420 (1,756) Charge-offs (1,928) (171) (1) (4) — (1) — (3) (2,108) Recoveries 2,737 20 — 6 — 3 10 3 2,779 Net (charge-offs) recoveries 809 (151) (1) 2 — 2 10 — 671 Ending balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Period-end amount allocated to: Specific reserve $ 525 $ 44 $ — $ 89 $ — $ — $ — $ 100 $ 758 General reserve 7,194 6,686 4,298 2,192 1,511 387 62 605 22,935 Total $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 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 December 31, 2016 Beginning balance $ 4,746 $ 7,058 $ 4,504 $ 2,295 $ 762 $ 363 $ 93 $ 5,494 $ 25,315 Provision (recapture) for loan loss 5,537 4,193 94 (1,012) 154 222 227 (4,840) 4,575 Charge-offs (4,884) (589) — (3) — (277) (267) (59) (6,079) Recoveries 1,010 108 — 6 — 45 26 — 1,195 Net (charge-offs) recoveries (3,874) (481) — 3 — (232) (241) (59) (4,884) Ending balance $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006 Period-end amount allocated to: Specific reserve $ 462 $ 206 $ — $ — $ — $ — $ — $ — $ 668 General reserve 5,947 10,564 4,598 1,286 916 353 79 595 24,338 Total $ 6,409 $ 10,770 $ 4,598 $ 1,286 $ 916 $ 353 $ 79 $ 595 $ 25,006
Presentation of risk grades and classified loans by loan class	Special (Dollars in thousands) Pass Mention Substandard Total Loans December 31, 2018 Commercial and industrial $ 504,425 5,768 9,586 $ 519,779 Real estate: Commercial real estate 781,035 10,370 4,328 795,733 Construction and development 511,329 4,204 — 515,533 1-4 family residential 274,781 2,175 5,055 282,011 Multi-family residential 221,194 — — 221,194 Consumer 39,140 246 35 39,421 Agriculture 11,048 — 28 11,076 Other 61,569 — 6,813 68,382 Total loans $ 2,404,521 $ 22,763 $ 25,845 $ 2,453,129 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 December 31, 2018 Commercial and industrial $ 4,378 $ 3,642 $ 635 $ 4,277 $ 525 $ 5,771 Real estate: Commercial real estate 4,128 3,374 596 3,970 44 6,135 Construction and development — — — — — 139 1-4 family residential 4,551 2,612 1,824 4,436 89 4,597 Consumer — — — — — 7 Other 6,814 5,572 1,241 6,813 100 7,841 Total loans $ 19,871 $ 15,200 $ 4,296 $ 19,496 $ 758 $ 24,490 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
Allowance for loan losses on the basis of the Company’s impairment methodology	December 31, 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 $ 4,277 $ 515,502 $ 519,779 $ 7,292 $ 552,071 $ 559,363 Real estate: Commercial real estate 3,970 791,763 795,733 9,292 729,001 738,293 Construction and development — 515,533 515,533 252 448,959 449,211 1-4 family residential 4,436 277,575 282,011 4,924 253,660 258,584 Multi-family residential — 221,194 221,194 — 220,305 220,305 Consumer — 39,421 39,421 — 40,433 40,433 Agriculture — 11,076 11,076 — 11,256 11,256 Other 6,813 61,569 68,382 7,152 33,192 40,344 Total $ 19,496 $ 2,433,633 $ 2,453,129 $ 28,912 $ 2,288,877 $ 2,317,789

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
PREMISES AND EQUIPMENT
Schedule of premises and equipment	December 31, (Dollars in thousands) 2018 2017 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,188 51,664 Furniture and equipment 15,426 14,887 Vehicles 232 202 Construction in progress 177 — 81,489 80,219 Less accumulated depreciation (29,867) (26,612) Premises and equipment, net $ 51,622 $ 53,607

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets	Other intangibles assets at December 31, 2017 and 2016 are as follows: Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets December 31, 2018 Other intangible assets, net Core deposits 5.2 years $ 13,750 $ (12,561) $ 1,189 Customer relationships 10.0 years 6,629 (2,209) 4,420 Servicing assets 14.4 years 311 (145) 166 Total other intangible assets, net $ 20,690 $ (14,915) $ 5,775 December 31, 2017 Other intangible assets, net Core deposits 6.2 years $ 13,750 $ (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 $ 20,700 $ (13,930) $ 6,770
Schedule of changes in related servicing assets	For the Years Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 209 $ 186 Increase from loan sales 38 58 Decrease from serviced loans paid off or foreclosed (48) — Amortization (33) (35) Balance at end of period $ 166 $ 209
Schedule of estimated future amortization for core deposits and customer relationship intangible assets	(Dollars in thousands) December 31, 2018 2019 $ 860 2020 768 2021 675 2022 584 2023 495 Thereafter 2,227 Total $ 5,609

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	12 Months Ended
	Dec. 31, 2018
BANK OWNED LIFE INSURANCE
Schedule of change in cash surrender value	For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 68,010 $ 51,430 $ 50,441 Purchases 1,700 15,000 — Redemptions — — (367) Earnings, net 1,815 1,580 1,356 Balance at end of year $ 71,525 $ 68,010 $ 51,430

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2018
DEPOSITS
Schedule of deposits	December 31, (Dollars in thousands) 2018 2017 Interest-bearing demand accounts $ 387,457 $ 363,015 Money market accounts 737,770 702,299 Saving accounts 96,962 95,842 Certificates and other time deposits, $100,000 or greater 189,007 172,469 Certificates and other time deposits, less than $100,000 172,028 159,558 Total interest-bearing deposits 1,583,224 1,493,183 Noninterest-bearing deposits 1,183,058 1,109,789 Total deposits $ 2,766,282 $ 2,602,972
Scheduled maturities of time deposits	(Dollars in thousands) December 31, 2018 Three months or less $ 71,817 Over three months through six months 50,966 Over six months through 12 months 119,180 Over 12 months through three years 108,436 Over three years 10,636 Total $ 361,035

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Schedule of loans to related parties	For the Years Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of year $ 205,768 $ 142,516 New loans 107,303 108,698 Repayments (144,220) (45,446) Balance at end of year $ 168,851 $ 205,768

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2018
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	December 31, (Dollars in thousands) 2018 2017 Fair value of financial assets: Level 1 inputs: Debt securities available for sale - other securities $ 1,088 $ 1,087 Level 2 inputs: Debt securities available for sale State and municipal securities 57,691 61,916 U.S. Agency Securities: Debt securities 16,881 16,945 Collateralized mortgage obligations 65,414 61,253 Mortgage-backed securities 88,859 81,974 Interest rate swaps 962 766 Total fair value of financial assets $ 230,895 $ 223,941 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 962 $ 766 Total fair value of financial liabilities $ 962 $ 766
Summary of certain assets measured on a non‑recurring basis	December 31, (Dollars in thousands) 2018 2017 Level 3 inputs Impaired loans: Commercial and industrial $ 110 $ 340 Commercial real estate 552 603 1-4 family residential 1,735 1,755 Other 1,141 — Total impaired loans $ 3,538 $ 2,698
Summary of fair value of repossessed real estate and other foreclosed assets	December 31, (Dollars in thousands) 2018 2017 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 13 $ 881 Charge-offs recognized in the allowance for loan losses (1) — Fair value $ 12 $ 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	Year Ended December 31, 2018 2017 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,450 $ 54,450 $ 59,255 $ 59,255 Interest bearing deposits in banks 327,620 327,620 266,944 266,944 Level 2 inputs: Time deposits in other banks — — 600 600 Debt securities held to maturity 32 31 35 33 Bank-owned life insurance 71,525 71,525 68,010 68,010 Accrued interest receivable 8,227 8,227 7,429 7,429 Servicing asset 166 166 209 209 Level 3 inputs: Loans, including held for sale, net 2,432,753 2,423,130 2,299,742 2,288,226 Equity investments 13,026 13,026 12,226 12,226 Total financial assets $ 2,907,799 $ 2,898,175 $ 2,714,450 $ 2,702,932 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,183,058 $ 1,183,058 $ 1,109,789 $ 1,109,789 Level 2 inputs: Interest-bearing deposits 1,522,366 1,583,224 1,437,013 1,493,183 Repurchase agreements 2,498 2,498 1,525 1,525 Junior subordinated debt 1,571 1,571 6,726 6,726 Accrued interest payable 653 653 374 374 Total financial liabilities $ 2,710,146 $ 2,771,004 $ 2,555,427 $ 2,611,597

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of the derivative instruments outstanding	Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity December 31, 2018 Interest rate swaps with customers Other Assets $ 8,901 $ 169 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 years Interest rate swaps with financial institution Other Assets 32,923 793 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 years Interest rate swaps with customers Other Liabilities 32,923 (793) 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 years Interest rate swaps with financial institution Other Liabilities 8,901 (169) 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 years Total derivatives not designated as hedging instruments $ 83,648 $ — 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 $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES.
Summary of the various financial instruments whose contract amounts represent credit risk	December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit, variable interest rate $ 726,277 $ 626,441 Commitments to extend credit, fixed interest rate 105,359 61,608 $ 831,636 $ 688,049 Standby letters of credit $ 31,729 $ 28,977
Schedule of future minimum rent commitments	(Dollars in thousands) December 31, 2018 2019 $ 2,118 2020 2,139 2021 2,224 2022 2,285 2023 2,280 Thereafter 10,048 Total $ 21,094

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2018
STOCK-BASED COMPENSATION
Schedule number of shares issued and withheld for the period	Shares Shares Total Issued Withheld Vested Restricted stock vested - 2018 46,189 5,118 51,307
Schedule of fair value of each option grant estimated on the date of grant using the Black‑Scholes option pricing model	Year Ended December 31, 2017 Dividend yield 0.95 % Expected volatility 35.97 % Risk free interest rate 2.42 % Expected life in years 6.0
Stock option plans
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	For the Years Ended December 31, 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 — — 80,000 21.00 Exercised (28,000) 10.52 (11,160) 10.47 Forfeited — — (56,832) 10.14 Outstanding at end of period 232,322 16.66 260,322 16.00
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	December 31, 2018 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 133,123 99,199 232,322 Weighted-average exercise price per share $ 14.52 $ 19.54 $ 16.66 Aggregate intrinsic value (in thousands) $ 1,981 $ 978 $ 2,959 Weighted-average remaining contractual term (years) 5.3 7.7 6.3
Restricted Stock
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Non-performance Based Performance-based 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 12/31/2016 — $ — — $ — Granted 212,580 26.71 — — Vested — — — — Forfeited — — — — Outstanding at 12/31/2017 212,580 $ 26.71 — $ — Granted 21,500 30.44 24,000 34.46 Vested (51,307) 27.04 — — Forfeited (1,000) 28.64 — — Outstanding at 12/31/2018 181,773 $ 27.05 24,000 $ 34.46
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	December 31, 2018 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 181,773 24,000 Weighted-average grant date fair value per share $ 27.05 $ 34.46 Aggregate fair value (in thousands) $ 5,344 $ 706 Weighted-average remaining vesting period (years) 3.7 3.2

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2018 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 405,012 $ 123,885 $ 192,710 N/A N/A Bank Only $ 363,140 $ 123,877 $ 192,697 $ 178,933 Tier I Capital to Risk-Weighted Assets: Consolidated $ 406,257 $ 165,180 $ 234,005 N/A N/A Bank Only $ 363,140 $ 165,169 $ 233,989 $ 220,225 Total Capital to Risk-Weighted Assets: Consolidated $ 430,238 $ 220,240 $ 289,065 N/A N/A Bank Only $ 387,211 $ 220,225 $ 289,046 $ 275,282 Tier 1 Leverage Capital to Average Assets: Consolidated $ 406,257 $ 127,350 $ 127,350 N/A N/A Bank Only $ 363,140 $ 127,350 $ 127,350 $ 159,188 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)	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Current federal income tax $ 11,908 $ 13,364 $ 11,269 Current state income tax 190 157 140 Deferred income tax (734) 2,932 601 Total income tax expense $ 11,364 $ 16,453 $ 12,010
Schedule of provision for income tax expense and effective tax rates	For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Tax expense calculated at statutory rate $ 12,317 $ 15,408 $ 13,726 Increase (decrease) resulting from: State income tax 150 102 140 Tax exempt interest income (834) (1,504) (1,585) Life insurance (381) (553) (485) Impact of tax law rate change — 3,857 — Other 112 (857) 214 Total income tax expense $ 11,364 $ 16,453 $ 12,010 Effective tax rate
Schedule of net deferred tax asset (liability)	December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for possible credit losses $ 4,976 $ 5,203 Compensation related 2,681 2,228 Deferred loan origination fees and loan costs 1,312 988 Loan related 137 423 Unrealized loss on securities available for sale 790 103 Other 230 215 Total deferred tax assets 10,126 9,160 Deferred tax liabilities: Accumulated depreciation (1,203) (1,228) Compensation 481(a) adjustment (476) (713) Core deposit intangibles (1,178) (1,378) Other (68) (61) Total deferred tax liabilities (2,925) (3,380) Net Deferred Tax Asset $ 7,201 $ 5,780

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings per share:
Schedule of basic and diluted earnings per common share	Year Ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Net income for common shareholders $ 47,289 $ 27,571 $ 27,208 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,859 22,457 22,049 Dilutive effect of outstanding stock options and unvested restricted stock awards 159 116 186 Diluted weighted-average shares outstanding 25,018 22,573 22,235 Earnings per share: Basic $ 1.90 $ 1.23 $ 1.23 Diluted $ 1.89 $ 1.22 $ 1.22

PARENT COMPANY (Tables)

PARENT COMPANY (Tables)	12 Months Ended
	Dec. 31, 2018
PARENT COMPANY.
Condensed Balance Sheets	CBTX, INC. (Parent Company Only) Condensed Balance Sheets December 31, (Dollars in thousands) 2018 2017 Assets Cash and due from banks $ 44,189 $ 45,636 Investment in subsidiary 445,754 407,305 Deferred tax asset, net 145 141 Other assets 911 2,460 Total assets $ 490,999 $ 455,542 Liabilities and shareholders' equity Liabilities Junior subordinated debt $ 1,571 $ 6,726 Other liabilities 1,803 2,602 Total liabilities 3,374 9,328 Shareholders’ equity Common stock 258 257 Additional paid-in capital 344,497 343,249 Retained earnings 160,626 118,353 Treasury stock (14,781) (15,256) Accumulated other comprehensive loss (2,975) (389) Total shareholders’ equity 487,625 446,214 Total liabilities and shareholders’ equity $ 490,999 $ 455,542
Condensed Income Statements	CBTX, INC. (Parent Company Only) Condensed Income Statements For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest income Other $ 187 $ 142 $ 120 Interest expense Note payable 15 906 1,061 Junior subordinated debt 420 322 266 Total interest expense 435 1,228 1,327 Net interest expense (248) (1,086) (1,207) Noninterest income Dividend income from subsidiary 7,800 8,806 12,250 Total noninterest income 7,800 8,806 12,250 Noninterest expense Salaries and employee benefits 755 344 225 Net occupancy expense — — 14 Data processing 44 37 28 Printing, stationery and office 12 20 10 Professional and director fees 728 842 341 Other expenses 196 17 31 Total noninterest expense 1,735 1,260 649 Income before income tax benefit and equity in undistributed income of subsidiary 5,817 6,460 10,394 Income tax benefit (437) (1,518) (639) Income before equity in undistributed income of subsidiary 6,254 7,978 11,033 Equity in undistributed income of subsidiary 41,035 19,593 16,175 Net income $ 47,289 $ 27,571 $ 27,208
Condensed Statements of Cash Flows	CBTX, INC. (Parent Company Only) Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 47,289 $ 27,571 $ 27,208 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Stock-based compensation expense 1,601 329 43 Equity in undistributed net income loss of subsidiary (41,035) (19,593) (16,175) Deferred tax provision (benefit) (4) 391 295 Change in operating assets and liabilities: Other assets 1,549 (1,216) 1,808 Other liabilities (836) 552 (97) Total adjustments (38,725) (19,537) (14,126) Net cash provided by operating activities 8,564 8,034 13,082 Cash flows from investing activities: Net cash used in investing activities — — — Cash flows from financing activities: Proceeds from sale of common stock in initial public offering — 64,519 — Proceeds from exercise of stock options 294 117 3,883 Payments to tax authorities for stock-based compensation (171) — — Purchase of treasury stock — — (11,079) Repayment of note payable — (27,679) (3,321) Redemption of trust preferred securities (5,155) — — Dividends paid on common stock (4,979) (4,412) (4,395) Net cash provided (used) in financing activities (10,011) 32,545 (14,912) Net increase (decrease) in cash and cash equivalents (1,447) 40,579 (1,830) Cash and cash equivalents, beginning 45,636 5,057 6,887 Cash and cash equivalents, ending $ 44,189 $ 45,636 $ 5,057

QUARTERLY FINANCIAL DATA (UNA_2

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2018
QUARTERLY FINANCIAL DATA (UNAUDITED)
Schedule of quarterly financial data (unaudited)	Year Ended December 31, 2018 (Dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 31,085 $ 33,127 $ 34,665 $ 36,882 Interest expense 2,046 2,251 3,139 3,662 Net interest income 29,039 30,876 31,526 33,220 Provision (recapture) for loan losses 865 690 (1,142) (2,169) Net interest income after provision (recapture) for loan losses 28,174 30,186 32,668 35,389 Noninterest income 3,361 3,506 3,526 3,859 Noninterest expense 20,284 20,012 19,964 21,756 Income before income taxes 11,251 13,680 16,230 17,492 Income tax expense 2,139 2,638 3,207 3,380 Net income $ 9,112 $ 11,042 $ 13,023 $ 14,112 Earnings per share: Basic $ 0.37 $ 0.44 $ 0.52 $ 0.57 Diluted $ 0.37 $ 0.44 $ 0.52 $ 0.56 Year Ended December 31, 2017 (Dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 27,998 $ 28,726 $ 29,569 $ 30,366 Interest expense 2,165 2,201 2,318 2,201 Net interest income 25,833 26,525 27,251 28,165 Provision (recapture) for loan losses 960 (694) (1,654) 1,050 Net interest income after provision (recapture) for loan losses 24,873 27,219 28,905 27,115 Noninterest income 3,448 3,526 4,086 3,144 Noninterest expense 18,427 18,859 19,017 21,989 Income before income taxes 9,894 11,886 13,974 8,270 Income tax expense 3,032 3,181 3,927 6,313 Net income $ 6,862 $ 8,705 $ 10,047 $ 1,957 Earnings per share: Basic $ 0.31 $ 0.39 $ 0.46 $ 0.08 Diluted $ 0.31 $ 0.39 $ 0.45 $ 0.08

BASIS OF PRESENTATION, NATURE_4

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2018locationsegment
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Number of locations | location	35
Number of Reportable Segments | segment	1

BASIS OF PRESENTATION, NATURE_5

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Cash and Due from Banks (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Cash, Uninsured Amount	$ 99.4	$ 91.8
Reserve required at federal reserve bank	18.5	15.8
Cash collateral used in interest rate swap transactions	$ 1.6	$ 1.6

BASIS OF PRESENTATION, NATURE_6

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Buildings
PREMISES AND EQUIPMENT
Useful life (in years)	32 years
Vehicles
PREMISES AND EQUIPMENT
Useful life (in years)	3 years
Minimum | Furniture and equipment
PREMISES AND EQUIPMENT
Useful life (in years)	3 years
Maximum | Furniture and equipment
PREMISES AND EQUIPMENT
Useful life (in years)	10 years

BASIS OF PRESENTATION, NATURE_7

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Goodwill and Other Intangible Assets and Stock Based Compensation (Details)	12 Months Ended
	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Vesting period	5 years
Core deposits | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization period of intangible assets (in years)	10 years
Core deposits | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization period of intangible assets (in years)	7 years

BASIS OF PRESENTATION, NATURE_8

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Revenue-generating activities within scope of ASC 606 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Noninterest income
Deposit account service charges	$ 6,281	$ 5,800	$ 6,538
Net gain on sale of assets	660	1,524	1,922
Card interchange fees	3,741	3,453	3,352
Other noninterest income	$ 1,815	$ 1,580	$ 1,356

BASIS OF PRESENTATION, NATURE_9

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Accounting Standards Not Yet Adopted (Details) - ASU 2016-02 $ in Millions	Dec. 31, 2018USD ($)
Operating lease right-of-use assets	$ 13.2
Operating lease liabilities	$ 15.4

BASIS OF PRESENTATION, NATUR_10

BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Cash Flow Reporting (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental disclosures of cash flow information:
Cash paid for taxes	$ 11,627	$ 13,752	$ 11,390
Supplemental disclosures of non-cash flow information:
Dividends accrued for restricted stock	43	11
Repossessed real estate and other assets	349	881	2,671
Notes payable.
Supplemental disclosures of cash flow information:
Cash paid for interest		1,078	1,063
Junior subordinated debt.
Supplemental disclosures of cash flow information:
Cash paid for interest	412	315	258
Deposits and repurchase agreements
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 10,391	$ 7,701	$ 7,051

DEBT SECURITIES - Amortized cos

DEBT SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available-for-sale Securities [Abstract]
Amortized cost	$ 233,699	$ 223,668
Fair Value	229,933	223,175
Held-to-maturity Securities [Abstract]
Amortized cost	31	33
Fair Value	32	35
Securities Available for Sale
Available-for-sale Securities [Abstract]
Amortized cost	233,699	223,668
Unrealized Gains	673	1,553
Unrealized Losses	(4,439)	(2,046)
Fair Value	229,933	223,175
Securities Available for Sale | State and municipal securities
Available-for-sale Securities [Abstract]
Amortized cost	57,972	60,861
Unrealized Gains	345	1,173
Unrealized Losses	(626)	(118)
Fair Value	57,691	61,916
Securities Available for Sale | Debt securities
Available-for-sale Securities [Abstract]
Amortized cost	17,315	17,315
Unrealized Losses	(434)	(370)
Fair Value	16,881	16,945
Securities Available for Sale | Collateralized mortgage obligations
Available-for-sale Securities [Abstract]
Amortized cost	66,438	61,878
Unrealized Gains	98	50
Unrealized Losses	(1,122)	(675)
Fair Value	65,414	61,253
Securities Available for Sale | Mortgage-backed securities
Available-for-sale Securities [Abstract]
Amortized cost	90,845	82,510
Unrealized Gains	230	330
Unrealized Losses	(2,216)	(866)
Fair Value	88,859	81,974
Securities Available for Sale | Other securities
Available-for-sale Securities [Abstract]
Amortized cost	1,129	1,104
Unrealized Losses	(41)	(17)
Fair Value	1,088	1,087
Securities Held to Maturity | Mortgage-backed securities
Held-to-maturity Securities [Abstract]
Amortized cost	31	33
Gross Unrealized Gains	1	2
Fair Value	$ 32	$ 35

DEBT SECURITIES - Amortized c_2

DEBT SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 3,224	$ 6,203
Amortized cost, 1 year through 5 years	22,784	26,811
Amortized cost, 5 years through 10 years	13,127	9,215
Amortized cost, After 10 years	194,564	181,439
Available-for-sale Securities, Amortized Cost Basis, Total	233,699	223,668
Available for Sale - Estimated Fair Value
Estimated fair value, 1 year or less	3,188	6,194
Estimated fair value, 1 year through 5 years	22,370	26,635
Estimated fair value, 5 years through 10 years	13,062	9,348
Estimated fair value, After 10 years	191,313	180,998
Available-for-sale Securities, Total	229,933	223,175
Held to Maturity - Amortized Cost
Amortized cost, After 10 years	31	33
Held-to-maturity Securities, Total	31	33
Held to Maturity - Estimated Fair Value
Estimated fair value, After 10 years	32	35
Held-to-maturity Securities, Fair Value, Total	32	35
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	233,699	223,668
Available for Sale - Estimated Fair Value
Available-for-sale Securities, Total	$ 229,933	$ 223,175

DEBT SECURITIES - Securities ca

DEBT SECURITIES - Securities carrying amount (Details)	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)
DEBT SECURITIES.
Securities sold during the year	$ 56,500,000	$ 6,100,000	$ 302,000
Carrying value of securities pledged	$ 49,900,000	$ 58,700,000
Securities held in a gross unrealized loss position | item	167	52
Impairment loss on securities	$ 0	$ 0

DEBT SECURITIES - Securities wi

DEBT SECURITIES - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investment securities
Fair value - Less than twelve months	$ 51,491	$ 73,153
Gross Unrealized losses - Less than twelve months	(773)	(561)
Fair value - Twelve months or more	116,894	62,560
Gross Unrealized losses - Twelve months or more	(3,666)	(1,485)
State and municipal securities
Investment securities
Fair value - Less than twelve months	20,892	2,494
Gross Unrealized losses - Less than twelve months	(324)	(3)
Fair value - Twelve months or more	6,584	6,516
Gross Unrealized losses - Twelve months or more	(302)	(115)
Debt securities
Investment securities
Fair value - Less than twelve months		4,464
Gross Unrealized losses - Less than twelve months		(55)
Fair value - Twelve months or more	16,882	12,481
Gross Unrealized losses - Twelve months or more	(434)	(315)
Collateralized mortgage obligations
Investment securities
Fair value - Less than twelve months	8,854	44,116
Gross Unrealized losses - Less than twelve months	(81)	(380)
Fair value - Twelve months or more	46,157	9,938
Gross Unrealized losses - Twelve months or more	(1,041)	(295)
Mortgage-backed securities
Investment securities
Fair value - Less than twelve months	21,745	22,079
Gross Unrealized losses - Less than twelve months	(368)	(123)
Fair value - Twelve months or more	46,183	32,538
Gross Unrealized losses - Twelve months or more	(1,848)	(743)
Other securities
Investment securities
Fair value - Twelve months or more	1,088	1,087
Gross Unrealized losses - Twelve months or more	$ (41)	$ (17)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)item$ / shares	Dec. 31, 2017USD ($)
Equity investments
Equity investments, total	$ 13,026	$ 12,226
Number of private investment funds | item	2
Unfunded commitments	$ 3,000	3,800
Federal Reserve stock
Equity investments
Equity investments, total	$ 9,271	9,271
Par value (in dollors per share) | $ / shares	$ 100
Federal Home Loan Bank stock
Equity investments
Equity investments, total	$ 1,250	1,189
Par value (in dollors per share) | $ / shares	$ 100
The Independent Bankers Financial Corporation stock
Equity investments
Equity investments, total	$ 141	141
Community Reinvestment Act investments
Equity investments
Equity investments, total	$ 2,364	$ 1,625

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loans
Total	$ 2,453,129	$ 2,317,789
Percentage of loan	100.00%	100.00%
Less deferred loan fees and unearned discounts	$ (6,306)	$ (4,785)
Less allowance for loan loss	(23,693)	(24,778)	$ (25,006)	$ (25,315)
Less loans held for sale		(1,460)
Loans, net	2,423,130	2,286,766
Accrued interest receivable	6,800	6,100
Commercial and industrial
Loans
Total	$ 519,779	$ 559,363
Percentage of loan	21.20%	24.10%
Less allowance for loan loss	$ (7,719)	$ (7,257)	(6,409)	(4,746)
Commercial real estate
Loans
Total	$ 795,733	$ 738,293
Percentage of loan	32.40%	31.90%
Less allowance for loan loss	$ (6,730)	$ (10,375)	(10,770)	(7,058)
Construction and development
Loans
Total	$ 515,533	$ 449,211
Percentage of loan	21.00%	19.40%
Less allowance for loan loss	$ (4,298)	$ (3,482)	(4,598)	(4,504)
1-4 family residential
Loans
Total	$ 282,011	$ 258,584
Percentage of loan	11.50%	11.20%
Less allowance for loan loss	$ (2,281)	$ (1,326)	(1,286)	(2,295)
Multi‑family residential
Loans
Total	$ 221,194	$ 220,305
Percentage of loan	9.00%	9.50%
Less allowance for loan loss	$ (1,511)	$ (1,419)	(916)	(762)
Consumer
Loans
Total	$ 39,421	$ 40,433
Percentage of loan	1.60%	1.70%
Less allowance for loan loss	$ (387)	$ (566)	(353)	(363)
Agriculture
Loans
Total	$ 11,076	$ 11,256
Percentage of loan	0.50%	0.50%
Less allowance for loan loss	$ (62)	$ (68)	(79)	(93)
Other
Loans
Total	$ 68,382	$ 40,344
Percentage of loan	2.80%	1.70%
Less allowance for loan loss	$ (705)	$ (285)	$ (595)	$ (5,494)

LOANS - Loan participation and

LOANS - Loan participation and Loan Guarantees (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans
Participations purchased during the period	$ 35,281,000	$ 18,491,000
Participations sold during the period	45,921,000	46,067,000	$ 4,948,000
SBA loans subject to sale of guaranteed portion, net of payments	2,000,000	2,200,000	3,500,000
Gain loss on disposition of asset
Loans
Net gains recognized on sales of loans	153,000	149,000	326,000
Commercial and industrial
Loans
Participations purchased during the period	7,000,000
Participations sold during the period	1,620,000	23,000,000
Commercial real estate
Loans
Participations purchased during the period	28,281,000	12,885,000
Participations sold during the period	35,000,000	20,505,000	654,000
Construction and development
Loans
Participations purchased during the period		5,606,000
Participations sold during the period	$ 9,301,000	$ 2,562,000	$ 4,294,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Nonaccrual loans
Nonaccrual loans	$ 3,490	$ 7,646
Commercial and industrial
Nonaccrual loans
Nonaccrual loans	1,317	3,280
Commercial real estate
Nonaccrual loans
Nonaccrual loans	1,517	3,216
Construction and development
Nonaccrual loans
Nonaccrual loans		252
1-4 family residential
Nonaccrual loans
Nonaccrual loans	$ 656	$ 898

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Aging analysis
Total past due	$ 8,108,000	$ 8,971,000
Total current loans	2,445,021,000	2,308,818,000
Total loans	2,453,129,000	2,317,789,000
Interest income that would have been earned under the original terms of the nonaccrual loans	163,000	402,000	$ 779,000
30 to 59 days past due
Aging analysis
Total past due	1,028,000	2,490,000
60 to 89 days past due
Aging analysis
Total past due	6,285,000	1,937,000
90 days or greater past due
Aging analysis
Total past due	795,000	4,544,000
Commercial and industrial
Aging analysis
Total past due	1,213,000	4,549,000
Total current loans	518,566,000	554,814,000
Total loans	519,779,000	559,363,000
Commercial and industrial | 30 to 59 days past due
Aging analysis
Total past due	178,000	943,000
Commercial and industrial | 60 to 89 days past due
Aging analysis
Total past due	881,000	1,071,000
Commercial and industrial | 90 days or greater past due
Aging analysis
Total past due	154,000	2,535,000
Commercial real estate
Aging analysis
Total past due	1,762,000	3,044,000
Total current loans	793,971,000	735,249,000
Total loans	795,733,000	738,293,000
Commercial real estate | 30 to 59 days past due
Aging analysis
Total past due	68,000	337,000
Commercial real estate | 60 to 89 days past due
Aging analysis
Total past due	1,089,000	841,000
Commercial real estate | 90 days or greater past due
Aging analysis
Total past due	605,000	1,866,000
Construction and development
Aging analysis
Total past due	4,563,000	400,000
Total current loans	510,970,000	448,811,000
Total loans	515,533,000	449,211,000
Construction and development | 30 to 59 days past due
Aging analysis
Total past due	359,000	400,000
Construction and development | 60 to 89 days past due
Aging analysis
Total past due	4,204,000
1-4 family residential
Aging analysis
Total past due	542,000	950,000
Total current loans	281,469,000	257,634,000
Total loans	282,011,000	258,584,000
1-4 family residential | 30 to 59 days past due
Aging analysis
Total past due	395,000	807,000
1-4 family residential | 60 to 89 days past due
Aging analysis
Total past due	111,000
1-4 family residential | 90 days or greater past due
Aging analysis
Total past due	36,000	143,000
Multi‑family residential
Aging analysis
Total current loans	221,194,000	220,305,000
Total loans	221,194,000	220,305,000
Consumer
Aging analysis
Total past due	28,000	28,000
Total current loans	39,393,000	40,405,000
Total loans	39,421,000	40,433,000
Consumer | 30 to 59 days past due
Aging analysis
Total past due	28,000	3,000
Consumer | 60 to 89 days past due
Aging analysis
Total past due		25,000
Agriculture
Aging analysis
Total current loans	11,076,000	11,256,000
Total loans	11,076,000	11,256,000
Other
Aging analysis
Total current loans	68,382,000	40,344,000
Total loans	$ 68,382,000	$ 40,344,000

LOAN PERFORMANCE - Restructured

LOAN PERFORMANCE - Restructured loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Restructured loans
Number of loans | loan	10	6
Pre‑modification outstanding Recorded Investment	$ 4,471	$ 2,148
Recorded investment in troubled debt restructurings	11,400	18,200
Restructured loans that are nonaccrual status	1,800	4,800
Restructured loans accruing interest	$ 9,600	13,400
Number of restructured loans for which there was a payment default | loan	0
Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 2,322	146
Extended Maturity
Restructured loans
Post‑modification recorded investment		667
Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	503	$ 1,335
Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Post‑modification recorded investment	$ 1,646
Commercial and industrial
Restructured loans
Number of loans | loan	6	2
Pre‑modification outstanding Recorded Investment	$ 1,419	$ 1,178
Commercial and industrial | Restructured Payments
Restructured loans
Post‑modification recorded investment	916
Commercial and industrial | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 503	$ 1,178
Commercial real estate
Restructured loans
Number of loans | loan	3	4
Pre‑modification outstanding Recorded Investment	$ 1,406	$ 970
Commercial real estate | Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 1,406	146
Commercial real estate | Extended Maturity
Restructured loans
Post‑modification recorded investment		667
Commercial real estate | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment		$ 157
Other
Restructured loans
Number of loans | loan	1
Pre‑modification outstanding Recorded Investment	$ 1,646
Commitment to loan additional funds	2,100
Other | Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Post‑modification recorded investment	$ 1,646

ALLOWANCE FOR LOAN LOSSES - Seg

ALLOWANCE FOR LOAN LOSSES - Segregated by loan class (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loan losses segregated by loan class
Beginning balance	$ 24,778,000	$ 25,006,000	$ 25,315,000
Provision (recapture) for loan loss	(1,756,000)	(338,000)	4,575,000
Charge-offs	(2,108,000)	(1,125,000)	(6,079,000)
Recoveries	2,779,000	1,235,000	1,195,000
Net (charge-offs) recoveries	671,000	110,000	(4,884,000)
Ending balance	23,693,000	24,778,000	25,006,000
Specific reserve
Loan losses segregated by loan class
Beginning balance	1,035,000	668,000
Ending balance	758,000	1,035,000	668,000
General reserve
Loan losses segregated by loan class
Beginning balance	23,743,000	24,338,000
Ending balance	22,935,000	23,743,000	24,338,000
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	7,257,000	6,409,000	4,746,000
Provision (recapture) for loan loss	(347,000)	642,000	5,537,000
Charge-offs	(1,928,000)	(904,000)	(4,884,000)
Recoveries	2,737,000	1,110,000	1,010,000
Net (charge-offs) recoveries	809,000	206,000	(3,874,000)
Ending balance	7,719,000	7,257,000	6,409,000
Commercial and industrial | Specific reserve
Loan losses segregated by loan class
Beginning balance	852,000	462,000
Ending balance	525,000	852,000	462,000
Commercial and industrial | General reserve
Loan losses segregated by loan class
Beginning balance	6,405,000	5,947,000
Ending balance	7,194,000	6,405,000	5,947,000
Commercial real estate
Loan losses segregated by loan class
Beginning balance	10,375,000	10,770,000	7,058,000
Provision (recapture) for loan loss	(3,494,000)	(284,000)	4,193,000
Charge-offs	(171,000)	(120,000)	(589,000)
Recoveries	20,000	9,000	108,000
Net (charge-offs) recoveries	(151,000)	(111,000)	(481,000)
Ending balance	6,730,000	10,375,000	10,770,000
Commercial real estate | Specific reserve
Loan losses segregated by loan class
Beginning balance	64,000	206,000
Ending balance	44,000	64,000	206,000
Commercial real estate | General reserve
Loan losses segregated by loan class
Beginning balance	10,311,000	10,564,000
Ending balance	6,686,000	10,311,000	10,564,000
Construction and development
Loan losses segregated by loan class
Beginning balance	3,482,000	4,598,000	4,504,000
Provision (recapture) for loan loss	817,000	(1,116,000)	94,000
Charge-offs	(1,000)
Net (charge-offs) recoveries	(1,000)
Ending balance	4,298,000	3,482,000	4,598,000
Construction and development | General reserve
Loan losses segregated by loan class
Beginning balance	3,482,000	4,598,000
Ending balance	4,298,000	3,482,000	4,598,000
1-4 family residential
Loan losses segregated by loan class
Beginning balance	1,326,000	1,286,000	2,295,000
Provision (recapture) for loan loss	953,000	35,000	(1,012,000)
Charge-offs	(4,000)	(8,000)	(3,000)
Recoveries	6,000	13,000	6,000
Net (charge-offs) recoveries	2,000	5,000	3,000
Ending balance	2,281,000	1,326,000	1,286,000
1-4 family residential | Specific reserve
Loan losses segregated by loan class
Beginning balance	119,000
Ending balance	89,000	119,000
1-4 family residential | General reserve
Loan losses segregated by loan class
Beginning balance	1,207,000	1,286,000
Ending balance	2,192,000	1,207,000	1,286,000
Multi‑family residential
Loan losses segregated by loan class
Beginning balance	1,419,000	916,000	762,000
Provision (recapture) for loan loss	92,000	503,000	154,000
Ending balance	1,511,000	1,419,000	916,000
Multi‑family residential | General reserve
Loan losses segregated by loan class
Beginning balance	1,419,000	916,000
Ending balance	1,511,000	1,419,000	916,000
Consumer
Loan losses segregated by loan class
Beginning balance	566,000	353,000	363,000
Provision (recapture) for loan loss	(181,000)	263,000	222,000
Charge-offs	(1,000)	(93,000)	(277,000)
Recoveries	3,000	43,000	45,000
Net (charge-offs) recoveries	2,000	(50,000)	(232,000)
Ending balance	387,000	566,000	353,000
Consumer | General reserve
Loan losses segregated by loan class
Beginning balance	566,000	353,000
Ending balance	387,000	566,000	353,000
Agriculture
Loan losses segregated by loan class
Beginning balance	68,000	79,000	93,000
Provision (recapture) for loan loss	(16,000)	(63,000)	227,000
Charge-offs			(267,000)
Recoveries	10,000	52,000	26,000
Net (charge-offs) recoveries	10,000	52,000	(241,000)
Ending balance	62,000	68,000	79,000
Agriculture | General reserve
Loan losses segregated by loan class
Beginning balance	68,000	79,000
Ending balance	62,000	68,000	79,000
Other
Loan losses segregated by loan class
Beginning balance	285,000	595,000	5,494,000
Provision (recapture) for loan loss	420,000	(318,000)	(4,840,000)
Charge-offs	(3,000)		(59,000)
Recoveries	3,000	8,000
Net (charge-offs) recoveries		8,000	(59,000)
Ending balance	705,000	285,000	595,000
Other | Specific reserve
Loan losses segregated by loan class
Ending balance	100,000
Other | General reserve
Loan losses segregated by loan class
Beginning balance	285,000	595,000
Ending balance	605,000	285,000	$ 595,000
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	Dec. 31, 2018	Dec. 31, 2017
Risk Grading
Risk rating of loans	$ 2,453,129	$ 2,317,789
Pass
Risk Grading
Risk rating of loans	2,404,521	2,255,908
Special Mention
Risk Grading
Risk rating of loans	22,763	19,571
Substandard
Risk Grading
Risk rating of loans	25,845	42,310
Commercial and industrial
Risk Grading
Risk rating of loans	519,779	559,363
Commercial and industrial | Pass
Risk Grading
Risk rating of loans	504,425	535,589
Commercial and industrial | Special Mention
Risk Grading
Risk rating of loans	5,768	8,403
Commercial and industrial | Substandard
Risk Grading
Risk rating of loans	9,586	15,371
Commercial real estate
Risk Grading
Risk rating of loans	795,733	738,293
Commercial real estate | Pass
Risk Grading
Risk rating of loans	781,035	722,503
Commercial real estate | Special Mention
Risk Grading
Risk rating of loans	10,370	2,951
Commercial real estate | Substandard
Risk Grading
Risk rating of loans	4,328	12,839
Construction and development
Risk Grading
Risk rating of loans	515,533	449,211
Construction and development | Pass
Risk Grading
Risk rating of loans	511,329	448,124
Construction and development | Special Mention
Risk Grading
Risk rating of loans	4,204	565
Construction and development | Substandard
Risk Grading
Risk rating of loans		522
1-4 family residential
Risk Grading
Risk rating of loans	282,011	258,584
1-4 family residential | Pass
Risk Grading
Risk rating of loans	274,781	252,317
1-4 family residential | Special Mention
Risk Grading
Risk rating of loans	2,175
1-4 family residential | Substandard
Risk Grading
Risk rating of loans	5,055	6,267
Multi‑family residential
Risk Grading
Risk rating of loans	221,194	220,305
Multi‑family residential | Pass
Risk Grading
Risk rating of loans	221,194	212,899
Multi‑family residential | Special Mention
Risk Grading
Risk rating of loans		7,406
Consumer
Risk Grading
Risk rating of loans	39,421	40,433
Consumer | Pass
Risk Grading
Risk rating of loans	39,140	40,144
Consumer | Special Mention
Risk Grading
Risk rating of loans	246	246
Consumer | Substandard
Risk Grading
Risk rating of loans	35	43
Agriculture
Risk Grading
Risk rating of loans	11,076	11,256
Agriculture | Pass
Risk Grading
Risk rating of loans	11,048	11,223
Agriculture | Substandard
Risk Grading
Risk rating of loans	28	33
Other
Risk Grading
Risk rating of loans	68,382	40,344
Other | Pass
Risk Grading
Risk rating of loans	61,569	33,109
Other | Substandard
Risk Grading
Risk rating of loans	$ 6,813	$ 7,235

ALLOWANCE FOR LOAN LOSSES - Loa

ALLOWANCE FOR LOAN LOSSES - Loan Impairment Assessment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loan Impairment Assessment
Unpaid contractual principal balance	$ 19,871,000	$ 34,018,000
Recorded investment with no allowance	15,200,000	25,179,000
Recorded investment with allowance	4,296,000	3,733,000
Total recorded investment	19,496,000	28,912,000
Related allowance	758,000	1,035,000
Average recorded investment year‑to‑date	24,490,000	32,860,000
Interest income recognized on impaired loans	996,000	1,100,000	$ 648,000
Commercial and industrial
Loan Impairment Assessment
Unpaid contractual principal balance	4,378,000	11,921,000
Recorded investment with no allowance	3,642,000	6,100,000
Recorded investment with allowance	635,000	1,192,000
Total recorded investment	4,277,000	7,292,000
Related allowance	525,000	852,000
Average recorded investment year‑to‑date	5,771,000	12,090,000
Commercial real estate
Loan Impairment Assessment
Unpaid contractual principal balance	4,128,000	9,646,000
Recorded investment with no allowance	3,374,000	8,625,000
Recorded investment with allowance	596,000	667,000
Total recorded investment	3,970,000	9,292,000
Related allowance	44,000	64,000
Average recorded investment year‑to‑date	6,135,000	9,438,000
Construction and development
Loan Impairment Assessment
Unpaid contractual principal balance		296,000
Recorded investment with no allowance		252,000
Total recorded investment		252,000
Average recorded investment year‑to‑date	139,000	323,000
1-4 family residential
Loan Impairment Assessment
Unpaid contractual principal balance	4,551,000	5,003,000
Recorded investment with no allowance	2,612,000	3,050,000
Recorded investment with allowance	1,824,000	1,874,000
Total recorded investment	4,436,000	4,924,000
Related allowance	89,000	119,000
Average recorded investment year‑to‑date	4,597,000	3,369,000
Multi‑family residential
Loan Impairment Assessment
Average recorded investment year‑to‑date		2,000
Consumer
Loan Impairment Assessment
Average recorded investment year‑to‑date	7,000	21,000
Agriculture
Loan Impairment Assessment
Average recorded investment year‑to‑date		1,000
Other
Loan Impairment Assessment
Unpaid contractual principal balance	6,814,000	7,152,000
Recorded investment with no allowance	5,572,000	7,152,000
Recorded investment with allowance	1,241,000
Total recorded investment	6,813,000	7,152,000
Related allowance	100,000
Average recorded investment year‑to‑date	$ 7,841,000	$ 7,616,000

ALLOWANCE FOR LOAN LOSSES - L_2

ALLOWANCE FOR LOAN LOSSES - Loan losses on the basis of Company's impairment methodology (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	$ 19,496,000	$ 28,912,000
Loans collectively evaluated for impairment	2,433,633,000	2,288,877,000
Total	2,453,129,000	2,317,789,000
Allowance allocated to specific reserves for loans individually evaluated for impairment	758,000	1,000,000
Commercial and industrial
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,277,000	7,292,000
Loans collectively evaluated for impairment	515,502,000	552,071,000
Total	519,779,000	559,363,000
Commercial real estate
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	3,970,000	9,292,000
Loans collectively evaluated for impairment	791,763,000	729,001,000
Total	795,733,000	738,293,000
Construction and development
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment		252,000
Loans collectively evaluated for impairment	515,533,000	448,959,000
Total	515,533,000	449,211,000
1-4 family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,436,000	4,924,000
Loans collectively evaluated for impairment	277,575,000	253,660,000
Total	282,011,000	258,584,000
Multi‑family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	221,194,000	220,305,000
Total	221,194,000	220,305,000
Consumer
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	39,421,000	40,433,000
Total	39,421,000	40,433,000
Agriculture
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	11,076,000	11,256,000
Total	11,076,000	11,256,000
Other
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	6,813,000	7,152,000
Loans collectively evaluated for impairment	61,569,000	33,192,000
Total	$ 68,382,000	$ 40,344,000

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
PREMISES AND EQUIPMENT
Premises and equipment	$ 81,489,000	$ 80,219,000
Less accumulated depreciation	(29,867,000)	(26,612,000)
Premises and equipment, net	51,622,000	53,607,000
Depreciation	3,309,000	3,353,000	$ 3,259,000
Net gains and losses on sale of assets	31,000	742,000	$ 1,300,000
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466,000	13,466,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	52,188,000	51,664,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	15,426,000	14,887,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	232,000	$ 202,000
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 177,000

PREMISES AND EQUIPMENT - Net Ga

PREMISES AND EQUIPMENT - Net Gains on Sales of Premises and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
PREMISES AND EQUIPMENT
Net gains on sale of assets	$ 31,000	$ 742,000	$ 1,300,000
Legal Matter Related To Branch Office
PREMISES AND EQUIPMENT
Net gains on sale of assets		554,000
Disposed by sale | Deweyville Branch
PREMISES AND EQUIPMENT
Gain on sale of business		$ 97,000
Disposed by sale | Washington branch
PREMISES AND EQUIPMENT
Lease period			10 years
Net gains on sale of assets			$ 1,500,000

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950,000	$ 80,950,000
Changes in goodwill	0	0
Other Intangible Assets, net
Gross Intangible Assets	20,690,000	20,700,000
Accumulated Amortization	(14,915,000)	(13,930,000)
Net Intangible Assets	5,775,000	6,770,000
Core deposits
Other Intangible Assets, net
Gross Intangible Assets	13,750,000	13,750,000
Accumulated Amortization	(12,561,000)	(12,051,000)
Net Intangible Assets	1,189,000	1,699,000
Customer relationships
Other Intangible Assets, net
Gross Intangible Assets	6,629,000	6,629,000
Accumulated Amortization	(2,209,000)	(1,767,000)
Net Intangible Assets	$ 4,420,000	4,862,000
Servicing asset
Other Intangible Assets, net
Weighted Amortization Period	15 years
Gross Intangible Assets	$ 311,000	321,000
Accumulated Amortization	(145,000)	(112,000)
Net Intangible Assets	$ 166,000	$ 209,000
Weighted average | Core deposits
Other Intangible Assets, net
Weighted Amortization Period	5 years 2 months 12 days	6 years 2 months 12 days
Weighted average | Customer relationships
Other Intangible Assets, net
Weighted Amortization Period	10 years	11 years
Weighted average | Servicing asset
Other Intangible Assets, net
Weighted Amortization Period	14 years 4 months 24 days	17 years 3 months 18 days

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Servicing Assets
Balance at beginning of year	$ 209	$ 186
Increase from loan sales	38	58
Decrease from serviced loans paid off or foreclosed	(48)
Amortization	(33)	(35)
Balance at end of period	166	209
Estimated future amortization for intangible assets
Net Intangible Assets	5,775	$ 6,770
Core deposits and customer relationship
Estimated future amortization for intangible assets
2,019	860
2,020	768
2,021	675
2,022	584
2,023	495
Thereafter	2,227
Net Intangible Assets	$ 5,609

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
BANK OWNED LIFE INSURANCE
Balance at beginning of year	$ 68,010	$ 51,430	$ 50,441
Purchases	1,700	15,000
Redemptions			(367)
Earnings, net	1,815	1,580	1,356
Balance at end of year	$ 71,525	$ 68,010	$ 51,430

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
DEPOSITS
Interest-bearing demand accounts	$ 387,457	$ 363,015
Money market accounts	737,770	702,299
Saving accounts	96,962	95,842
Certificates and other time deposits, $100,000 or greater	189,007	172,469
Certificates and other time deposits, less than $100,000	172,028	159,558
Total interest-bearing deposits	1,583,224	1,493,183
Noninterest-bearing deposits	1,183,058	1,109,789
Total deposits	$ 2,766,282	$ 2,602,972

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Time Deposits, Fiscal Year Maturity [Abstract]
Three months or less	$ 71,817
Over three months through six months	50,966
Over six months through 12 months	119,180
Over 12 months through three years	108,436
Over three years	10,636
Total	361,035
Deposits from public entities	51,500	$ 45,300
Brokered deposits	$ 104,500	$ 88,300

NOTES PAYABLE AND LINES OF CR_2

NOTES PAYABLE AND LINES OF CREDIT (Details) $ in Millions	Dec. 13, 2018USD ($)	Dec. 13, 2017USD ($)	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)item	Feb. 01, 2015USD ($)
NOTES PAYABLE AND LINES OF CREDIT
Capital to risk based assets ratio			15.60%	15.40%
Notes payable.
NOTES PAYABLE AND LINES OF CREDIT
Loan amount					$ 31
Line of Credit | Frost Bank
NOTES PAYABLE AND LINES OF CREDIT
Revolving line of credit available		$ 30
Extended maturity period	1 year
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	$ 300	$ 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	$ 0
Total borrowing capacity available			919.9	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
Number of federal funds line of credit | item			4	4

JUNIOR SUBORDINATED DEBT (Detai

JUNIOR SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	Dec. 17, 2018	Nov. 30, 2018	Dec. 31, 2015	Dec. 31, 2018	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2017
Junior subordinated notes
Junior subordinate debt				$ 1,571			$ 6,726
Purchase of trust preferred securities				5,155
Crosby Statutory Trust I
Junior subordinated notes
Proceeds of trust preferred securities					$ 5,000
Junior subordinate debt					$ 5,200
Aggregate redemption price paid	$ 5,200
County Bancshares Trust I
Junior subordinated notes
Proceeds of trust preferred securities						$ 5,500
Junior subordinate debt						$ 5,700
Aggregate redemption price paid		$ 5,700
Purchase of trust preferred securities			$ 4,100
Trust preferred securities				$ 1,600
Redemption of preferred securities		$ 4,100

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 168,851,000	$ 205,768,000	$ 142,516,000
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	55,700,000	69,700,000
Related party deposits	311,200,000	224,400,000
Advertising expense to related party	$ 94,000,000	$ 192,000

RELATED PARTY TRANSACTIONS - Lo

RELATED PARTY TRANSACTIONS - Loans to related parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of loans to related parties
Balance at beginning of year	$ 205,768	$ 142,516
New loans	107,303	108,698
Repayments	144,220	45,446
Balance at end of year	$ 168,851	$ 205,768

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Financial Assets
Debt securities available for sale	$ 229,933,000	$ 223,175,000
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
Debt securities available for sale	962,000	766,000
Total financial assets	230,895,000	223,941,000
Financial Liabilities
Total financial liabilities	962,000	766,000
Level 1 Inputs | Recurring basis | Other securities
Financial Assets
Debt securities available for sale	1,088,000	1,087,000
Level 2 Inputs | Recurring basis | Interest rate swaps
Financial Liabilities
Interest rate swaps liabilities	962,000	766,000
Level 2 Inputs | Recurring basis | State and municipal securities
Financial Assets
Debt securities available for sale	57,691,000	61,916,000
Level 2 Inputs | Recurring basis | Debt securities
Financial Assets
Debt securities available for sale	16,881,000	16,945,000
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	65,414,000	61,253,000
Level 2 Inputs | Recurring basis | Mortgage-backed securities
Financial Assets
Debt securities available for sale	$ 88,859,000	$ 81,974,000

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Impaired Loans
Total loans	$ 2,423,130	$ 2,286,766
Level 3 Inputs | Non-recurring basis
Impaired Loans
Total loans	3,538	2,698
Level 3 Inputs | Non-recurring basis | Commercial and industrial
Impaired Loans
Total loans	110	340
Level 3 Inputs | Non-recurring basis | Commercial real estate
Impaired Loans
Total loans	552	603
Level 3 Inputs | Non-recurring basis | 1-4 family residential
Impaired Loans
Total loans	1,735	$ 1,755
Level 3 Inputs | Non-recurring basis | Other
Impaired Loans
Total loans	$ 1,141

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - Level 2 Inputs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 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	$ 13	881
Charge-offs / Write-downs	(1)
Fair value of foreclosed assets	$ 12	$ 881

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial Assets:
Interest bearing deposits in banks	$ 327,620	$ 266,944
Time deposits in other banks		600
Debt securities available for sale	229,933	223,175
Debt securities held to maturity	31	33
Loans, including held for sale, net		1,460
Equity investments	13,026	12,226
Accrued interest receivable	6,800	6,100
Financial Liabilities:
Noninterest-bearing deposits	1,183,058	1,109,789
Interest-bearing deposits	1,583,224	1,493,183
Repurchase agreements	2,498	1,525
Junior subordinated debt	1,571	6,726
Fair Value
Financial Assets:
Total financial assets	2,907,799	2,714,450
Financial Liabilities:
Total financial liabilities	2,710,146	2,555,427
Carrying Amount
Financial Assets:
Total financial assets	2,898,175	2,702,932
Financial Liabilities:
Total financial liabilities	2,771,004	2,611,597
Level 1 Inputs | Fair Value
Financial Assets:
Cash and due from banks	54,450	59,255
Interest bearing deposits in banks	327,620	266,944
Financial Liabilities:
Noninterest-bearing deposits	1,183,058	1,109,789
Level 1 Inputs | Carrying Amount
Financial Assets:
Cash and due from banks	54,450	59,255
Interest bearing deposits in banks	327,620	266,944
Financial Liabilities:
Noninterest-bearing deposits	1,183,058	1,109,789
Level 2 Inputs | Fair Value
Financial Assets:
Time deposits in other banks		600
Debt securities held to maturity	32	35
Bank-owned life insurance	71,525	68,010
Accrued interest receivable	8,227	7,429
Servicing asset	166	209
Financial Liabilities:
Interest-bearing deposits	1,522,366	1,437,013
Repurchase agreements	2,498	1,525
Junior subordinated debt	1,571	6,726
Accrued interest payable	653	374
Level 2 Inputs | Carrying Amount
Financial Assets:
Time deposits in other banks		600
Debt securities held to maturity	31	33
Bank-owned life insurance	71,525	68,010
Accrued interest receivable	8,227	7,429
Servicing asset	166	209
Financial Liabilities:
Interest-bearing deposits	1,583,224	1,493,183
Repurchase agreements	2,498	1,525
Junior subordinated debt	1,571	6,726
Accrued interest payable	653	374
Level 3 Inputs | Fair Value
Financial Assets:
Loans, including held for sale, net	2,432,753	2,299,742
Equity investments	13,026	12,226
Level 3 Inputs | Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,423,130	2,288,226
Equity investments	$ 13,026	$ 12,226

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 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	13	14
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 83,648	$ 84,922
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	8,901	25,882
Fair value asset	$ 169	$ 340
Weighted Average Maturity	6 years 2 months 19 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	$ 32,923	$ 16,579
Fair value asset	$ 793	$ 426
Weighted Average Maturity	7 years 9 months 11 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	$ 32,923	$ 16,579
Fair value liability	$ (793)	$ (426)
Weighted Average Maturity	7 years 9 months 11 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	$ 8,901	$ 25,882
Fair value liability	$ (169)	$ (340)
Weighted Average Maturity	6 years 2 months 19 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	5.45%	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	5.45%	4.75%
Floating rate	2.50%	2.50%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | 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 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%
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	5.37%	5.15%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.37%	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%
Floating rate	3.20%	3.20%
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%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES.
Commitments to extend credit, variable	$ 726,277	$ 626,441
Commitments to extend credit, fixed	105,359	61,608
Total	831,636	688,049
Standby letters of credit	$ 31,729	$ 28,977

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Contingent Liabilities & Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,019	$ 2,118
2,020	2,139
2,021	2,224
2,022	2,285
2,023	2,280
Thereafter	10,048
Total	21,094
Lease Commitments
Rent expense	$ 1,900	$ 1,800	$ 2,900

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	Oct. 28, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Term of service for 401K participation		3 months
Company's contributions to the 401K plan		$ 1,700,000	$ 1,700,000
Aggregate amount paid to employees		$ 51,524,000	48,573,000	$ 44,239,000
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		421,000	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		$ 219,000	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
Aggregate amount paid to employees		2,500,000
Change of Control and Non‑Competition Agreements | Executive Officers
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		4,400,000
Deferred compensation expense		$ 0

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2018shares
STOCK-BASED COMPENSATION
Vesting period	5 years
Option expiration term	10 years
Non-performance Based | Minimum
STOCK-BASED COMPENSATION
Vesting period	2 years
Non-performance Based | Maximum
STOCK-BASED COMPENSATION
Vesting period	5 years
2006 Plan
STOCK-BASED COMPENSATION
Vesting period	10 years
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	348,038

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Exercise Price
Cash received in exercise of share options	$ 294	$ 117	$ 3,883
Stock option plans
Number of Shares Underlying Options
Outstanding, beginning of period	260,322	248,314
Granted		80,000
Forfeited		(56,832)
Exercised	(28,000)	(11,160)
Outstanding, end of period	232,322	260,322	248,314
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16	$ 12.80
Granted		21
Forfeited		10.14
Exercised	10.52	10.47
Outstanding, end of period	$ 16.66	$ 16	$ 12.80

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair value assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value assumptions
Option expiration term	10 years
Stock option plans
Fair value assumptions
Dividend yield ( as a percent)		0.95%
Expected volatility (as a percent)		35.97%
Risk free interest rate ( as a percent)		2.42%
Expected life in years		6 years

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock option plans - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	133,123
Number of shares underlying options unvested	99,199
Number of shares underlying options outstanding	232,322
Weighted-average exercise price per share exercisable	$ 14.52
Weighted-average exercise price per share unvested	19.54
Weighted-average exercise price per share outstanding	$ 16.66	$ 16	$ 12.80
Aggregate intrinsic value exercisable	$ 1,981
Aggregate intrinsic value unvested	978
Aggregate intrinsic value outstanding	$ 2,959
Weighted-average remaining contractual term exercisable (years)	5 years 3 months 18 days
Weighted-average remaining contractual term unvested (years)	7 years 8 months 12 days
Weighted-average remaining contractual term outstanding (years)	6 years 3 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Shares
Vested	(51,307)
Shares Withheld	5,118
Performance Based
Number of Shares
Granted	24,000
Outstanding, end of period	24,000
Weighted Average Grant Date Fair Value
Granted	$ 34.46
Outstanding, end of period	$ 34.46
Non-performance Based
Number of Shares
Outstanding, beginning of period	212,580
Granted	21,500	212,580
Vested	(51,307)
Forfeited	(1,000)
Outstanding, end of period	181,773	212,580
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 26.71
Granted	30.44	$ 26.71
Vested	27.04
Forfeited	28.64
Outstanding, end of period	$ 27.05	$ 26.71

STOCK-BASED COMPENSATION - Re_2

STOCK-BASED COMPENSATION - Restricted stock vested (Details)	12 Months Ended
	Dec. 31, 2018shares
Number of Shares
Shares Issued	46,189
Shares Withheld	5,118
Vested	51,307
Non-performance Based
Number of Shares
Vested	51,307

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 1,600,000	$ 329,000	$ 43,000
Unrecognized compensation expense	$ 5,900,000
Weighted average period	3 years 7 months 6 days
Non-performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	181,773	212,580
Weighted-average grant date fair value per share	$ 27.05	$ 26.71
Aggregate fair value (in thousands)	$ 5,344,000
Weighted-average remaining vesting period (years)	3 years 8 months 12 days
Performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	24,000
Weighted-average grant date fair value per share	$ 34.46
Aggregate fair value (in thousands)	$ 706,000
Weighted-average remaining vesting period (years)	3 years 2 months 12 days

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 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
Dividend restrictions term	2 years
Actual amount	$ 405,012	$ 361,322
Common Equity Tier One Capital Ratio	14.70%	14.20%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 123,885	$ 114,628
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 192,710	$ 178,310
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 406,257	$ 367,722
Actual ratio	14.80%	14.40%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 165,180	$ 152,837
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 234,005	$ 216,519
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 430,238	$ 392,878
Actual ratio	15.60%	15.40%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 220,240	$ 203,782
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 289,065	$ 267,464
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 406,257	$ 367,722
Actual ratio	12.80%	12.30%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 127,350	$ 119,769
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 127,350	$ 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	$ 363,140	$ 322,414
Common Equity Tier One Capital Ratio	13.20%	12.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 123,877	$ 114,252
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 192,697	$ 178,150
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 178,933	$ 165,425
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 363,140	$ 322,414
Actual ratio	13.20%	12.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 165,169	$ 152,700
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 233,989	$ 216,325
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 220,225	$ 203,600
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 387,211	$ 347,569
Actual ratio	14.10%	13.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 220,225	$ 203,600
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 289,046	$ 267,726
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 275,282	$ 254,501
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 363,140	$ 322,414
Actual ratio	11.40%	10.80%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 127,350	$ 119,403
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 127,350	$ 119,403
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 159,188	$ 149,253
Required to be Considered Well Capitalized, ratio	5.00%	5.00%
Minimum
Regulatory matters
Capital conversion buffer (as a percent)	0.625%

INCOME TAXES - Components of pr

INCOME TAXES - Components of provision for income tax expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INCOME TAXES
Current federal income tax									$ 11,908	$ 13,364	$ 11,269
Current state income tax									190	157	140
Deferred income tax									(734)	2,932	601
Income Tax Expense (Benefit), Total	$ 3,380	$ 3,207	$ 2,638	$ 2,139	$ 6,313	$ 3,927	$ 3,181	$ 3,032	$ 11,364	$ 16,453	$ 12,010

INCOME TAXES - Effective tax ra

INCOME TAXES - Effective tax rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract]
Tax expense calculated at statutory rate									$ 12,317	$ 15,408	$ 13,726
State income tax									150	102	140
Tax exempt interest income									(834)	(1,504)	(1,585)
Life insurance									(381)	(553)	(485)
Impact of tax law rate change										3,857
Other									112	(857)	214
Income Tax Expense (Benefit), Total	$ 3,380	$ 3,207	$ 2,638	$ 2,139	$ 6,313	$ 3,927	$ 3,181	$ 3,032	$ 11,364	$ 16,453	$ 12,010
Effective tax rate (as a percent)									19.40%	37.40%	30.70%
Statutory rate (as a percent)									21.00%	35.00%	35.00%
Tax adjustment to income tax expense from enacted tax law change										$ 3,900

INCOME TAXES - Deferred income

INCOME TAXES - Deferred income taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for possible credit losses	$ 4,976	$ 5,203
Compensation related	2,681	2,228
Deferred loan origination fees and loan costs	1,312	988
Loan related	137	423
Unrealized loss on securities available for sale	790	103
Other	230	215
Total deferred tax assets	10,126	9,160
Deferred tax liabilities:
Accumulated depreciation	(1,203)	(1,228)
Compensation 481(a) adjustment	(476)	(713)
Core deposit intangibles	(1,178)	(1,378)
Other	(68)	(61)
Total deferred tax liabilities	(2,925)	(3,380)
Net Deferred Tax Asset	$ 7,201	$ 5,780

INCOME TAXES - Operating loss c

INCOME TAXES - Operating loss carryforwards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 28, 2015
Operating loss carryforwards
Interest or penalties related to income tax	$ 0	$ 0	$ 0
Material uncertain tax positions	$ 0	$ 0
MCBI
Operating loss carryforwards
Federal net operating loss carryforwards				$ 1,500,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings per share:
Net income for common shareholders									$ 47,289	$ 27,571	$ 27,208
Weighted-average shares (thousands)
Basic weighted-average shares outstanding									24,859	22,457	22,049
Dilutive effect of outstanding stock options and unvested restricted stock awards									159	116	186
Diluted weighted-average shares outstanding									25,018	22,573	22,235
Earnings per share:
Basic	$ 0.57	$ 0.52	$ 0.44	$ 0.37	$ 0.08	$ 0.46	$ 0.39	$ 0.31	$ 1.90	$ 1.23	$ 1.23
Diluted	$ 0.56	$ 0.52	$ 0.44	$ 0.37	$ 0.08	$ 0.45	$ 0.39	$ 0.31	$ 1.89	$ 1.22	$ 1.22

EARNINGS PER SHARE - Weighted a

EARNINGS PER SHARE - Weighted average shares (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding	25,018,000	22,573,000	22,235,000
Performance Based
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding	24,000
Non-performance Based
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding	3,000

PARENT COMPANY - Condensed Bala

PARENT COMPANY - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and Due from Banks	$ 54,450	$ 59,255
Deferred tax asset, net	7,201	5,780
Other Assets	13,821	14,802
Assets	3,279,096	3,081,083
Liabilities
Junior subordinated debt	1,571	6,726
Other Liabilities	21,120	23,646
Total liabilities	2,791,471	2,634,869
Shareholders’ equity
Common stock	258	257
Additional Paid in Capital	344,497	343,249
Retained earnings	160,626	118,353
Treasury stock	14,781	15,256
Accumulated other comprehensive loss	(2,975)	(389)
Total shareholders’ equity	487,625	446,214	$ 357,637	$ 344,313
Total liabilities and shareholders’ equity	3,279,096	3,081,083
Parent Company [Member]
Assets
Cash and Due from Banks	44,189	45,636
Investment in subsidiary	445,754	407,305
Deferred tax asset, net	145	141
Other Assets	911	2,460
Assets	490,999	455,542
Liabilities
Junior subordinated debt	1,571	6,726
Other Liabilities	1,803	2,602
Total liabilities	3,374	9,328
Shareholders’ equity
Common stock	258	257
Additional Paid in Capital	344,497	343,249
Retained earnings	160,626	118,353
Treasury stock	14,781	15,256
Accumulated other comprehensive loss	(2,975)	(389)
Total shareholders’ equity	487,625	446,214
Total liabilities and shareholders’ equity	$ 490,999	$ 455,542

PARENT COMPANY - Condensed Inco

PARENT COMPANY - Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest expense
Note payable									$ 15	$ 906	$ 1,061
Junior subordinated debt									420	322	266
Total interest expense	$ 3,662	$ 3,139	$ 2,251	$ 2,046	$ 2,201	$ 2,318	$ 2,201	$ 2,165	11,098	8,885	8,405
Net interest income	33,220	31,526	30,876	29,039	28,165	27,251	26,525	25,833	124,661	107,774	101,546
Noninterest income
Other									1,755	1,847	2,581
Total noninterest income	3,859	3,526	3,506	3,361	3,144	4,086	3,526	3,448	14,252	14,204	15,749
Noninterest expense
Salaries and employee benefits									51,524	48,573	44,239
Net occupancy expense									9,394	9,151	10,100
Data processing									2,677	2,629	2,484
Printing, stationery and office									1,161	1,097	1,194
Professional and director fees									3,537	3,105	2,481
Other expenses									3,694	3,786	3,760
Total noninterest expense	21,756	19,964	20,012	20,284	21,989	19,017	18,859	18,427	82,016	78,292	73,502
Net income before income tax expense	17,492	16,230	13,680	11,251	8,270	13,974	11,886	9,894	58,653	44,024	39,218
Income tax benefit	3,380	3,207	2,638	2,139	6,313	3,927	3,181	3,032	11,364	16,453	12,010
Net income	$ 14,112	$ 13,023	$ 11,042	$ 9,112	$ 1,957	$ 10,047	$ 8,705	$ 6,862	47,289	27,571	27,208
Parent Company [Member]
Interest income
Other									187	142	120
Interest expense
Note payable									15	906	1,061
Junior subordinated debt									420	322	266
Total interest expense									435	1,228	1,327
Net interest income									(248)	(1,086)	(1,207)
Noninterest income
Dividend income from subsidiary									7,800	8,806	12,250
Total noninterest income									7,800	8,806	12,250
Noninterest expense
Salaries and employee benefits									755	344	225
Net occupancy expense											14
Data processing									44	37	28
Printing, stationery and office									12	20	10
Professional and director fees									728	842	341
Other expenses									196	17	31
Total noninterest expense									1,735	1,260	649
Net income before income tax expense									5,817	6,460	10,394
Income tax benefit									(437)	(1,518)	(639)
Income before equity in undistributed income of subsidiary									6,254	7,978	11,033
Equity in undistributed income (loss) of subsidiary									41,035	19,593	16,175
Net income									$ 47,289	$ 27,571	$ 27,208

PARENT COMPANY - Condensed Stat

PARENT COMPANY - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	$ 47,289	$ 27,571	$ 27,208
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Stock-based compensation expense	1,601	329	43
Deferred tax provision (benefit)	(734)	2,932	601
Change in operating assets and liabilities:
Other assets	994	(3,156)	(1,188)
Other liabilities	(2,563)	5,759	967
Total adjustments	2,032	8,019	8,834
Net cash provided by operating activities	49,321	35,590	36,042
Cash flows from investing activities:
Net cash used in investing activities	(147,722)	(185,433)	(131,574)
Cash flows from financing activities:
Proceeds from sale of common stock in initial public offering		71,760
Proceeds from exercise of stock options	294	117	3,883
Payments Related to Tax Withholding for Share-based Compensation	171
Purchases of treasury stock			(11,079)
Repayments of note payable		(27,679)	(3,321)
Redemption of trust preferred securities	(5,155)
Dividends paid on common stock	(4,979)	(4,412)	(4,395)
Net cash provided (used) in financing activities	154,272	93,939	42,734
Net increase (decrease) in cash, cash equivalents and restricted cash	55,871	(55,904)	(52,798)
Parent Company [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	47,289	27,571	27,208
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Stock-based compensation expense	1,601	329	43
Equity in undistributed net income loss of subsidiary	(41,035)	(19,593)	(16,175)
Deferred tax provision (benefit)	(4)	391	295
Change in operating assets and liabilities:
Other assets	1,549	(1,216)	1,808
Other liabilities	(836)	552	(97)
Total adjustments	(38,725)	(19,537)	(14,126)
Net cash provided by operating activities	8,564	8,034	13,082
Cash flows from financing activities:
Proceeds from sale of common stock in initial public offering		64,519
Proceeds from exercise of stock options	294	117	3,883
Payments Related to Tax Withholding for Share-based Compensation	(171)
Purchases of treasury stock			(11,079)
Repayments of note payable		(27,679)	(3,321)
Redemption of trust preferred securities	(5,155)
Dividends paid on common stock	(4,979)	(4,412)	(4,395)
Net cash provided (used) in financing activities	(10,011)	32,545	(14,912)
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,447)	40,579	(1,830)
Cash and cash equivalents, beginning	45,636	5,057	6,887
Cash and cash equivalents, ending	$ 44,189	$ 45,636	$ 5,057

QUARTERLY FINANCIAL DATA (UNA_3

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
QUARTERLY FINANCIAL DATA (UNAUDITED)
Interest income	$ 36,882	$ 34,665	$ 33,127	$ 31,085	$ 30,366	$ 29,569	$ 28,726	$ 27,998	$ 135,759	$ 116,659	$ 109,951
Interest expense	3,662	3,139	2,251	2,046	2,201	2,318	2,201	2,165	11,098	8,885	8,405
Net interest income	33,220	31,526	30,876	29,039	28,165	27,251	26,525	25,833	124,661	107,774	101,546
Provision (recapture) for loan losses	(2,169)	(1,142)	690	865	1,050	(1,654)	(694)	960	(1,756)	(338)	4,575
Net interest income after provision (recapture) for loan losses	35,389	32,668	30,186	28,174	27,115	28,905	27,219	24,873	126,417	108,112	96,971
Noninterest income	3,859	3,526	3,506	3,361	3,144	4,086	3,526	3,448	14,252	14,204	15,749
Noninterest expense	21,756	19,964	20,012	20,284	21,989	19,017	18,859	18,427	82,016	78,292	73,502
Net income before income tax expense	17,492	16,230	13,680	11,251	8,270	13,974	11,886	9,894	58,653	44,024	39,218
Income tax expense	3,380	3,207	2,638	2,139	6,313	3,927	3,181	3,032	11,364	16,453	12,010
Net income	$ 14,112	$ 13,023	$ 11,042	$ 9,112	$ 1,957	$ 10,047	$ 8,705	$ 6,862	$ 47,289	$ 27,571	$ 27,208
Earnings per share:
Basic	$ 0.57	$ 0.52	$ 0.44	$ 0.37	$ 0.08	$ 0.46	$ 0.39	$ 0.31	$ 1.90	$ 1.23	$ 1.23
Diluted	$ 0.56	$ 0.52	$ 0.44	$ 0.37	$ 0.08	$ 0.45	$ 0.39	$ 0.31	$ 1.89	$ 1.22	$ 1.22