Stellar Bancorp (STEL) 10-Q 30 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 24, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, Inc.
Entity Central Index Key	0001473844
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		25,999,297
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 54,110	$ 54,450
Interest-bearing deposits at other financial institutions	222,405	327,620
Total cash and cash equivalents	276,515	382,070
Debt securities	228,684	229,964
Equity investments	15,065	13,026
Loans held for sale	852
Loans, net of allowance for loan loss of $24,643 and $23,693 at March 31, 2019 and December 31, 2018, respectively	2,520,066	2,423,130
Premises and equipment, net of accumulated depreciation of $30,674 and $29,867 at March 31, 2019 and December 31, 2018, respectively	51,453	51,622
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $15,147 and $14,915 at March 31, 2019 and December 31, 2018, respectively	5,538	5,775
Bank-owned life insurance	71,955	71,525
Operating lease right-to-use asset	12,879
Deferred tax asset, net	5,942	7,201
Other assets	13,563	13,833
Total assets	3,283,462	3,279,096
Liabilities
Noninterest-bearing deposits	1,229,172	1,183,058
Interest-bearing deposits	1,521,827	1,583,224
Total deposits	2,750,999	2,766,282
Repurchase agreements	1,600	2,498
Junior subordinated debt		1,571
Operating lease liabilities	15,134
Other liabilities	17,076	21,120
Total liabilities	2,784,809	2,791,471
Commitments and contingencies (Note 17)
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, 25,777,904 and 25,777,693 shares issued at March 31, 2019 and December 31, 2018, 24,918,476 and 24,907,421 shares outstanding at March 31, 2019 and December 31, 2018, respectively	258	258
Additional paid-in capital	344,971	344,497
Retained earnings	168,603	160,626
Treasury stock, at cost, 859,428 and 870,272 shares held at March 31, 2019 and December 31, 2018, respectively	(14,597)	(14,781)
Accumulated other comprehensive loss, net of tax of $155 and $791 at March 31, 2019 and December 31, 2018, respectively	(582)	(2,975)
Total shareholders’ equity	498,653	487,625
Total liabilities and shareholders’ equity	$ 3,283,462	$ 3,279,096

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Allowance of loan loss	$ 24,643	$ 23,693
Premises and equipment, net of accumulated depreciation	30,674	29,867
Accumulated amortization	$ 15,147	$ 14,915
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	25,777,904	25,777,693
Common stock, shares outstanding	24,918,476	24,907,421
Treasury stock, shares	859,428	870,272
Accumulated other comprehensive loss, tax	$ 155	$ 791

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income
Interest and fees on loans	$ 33,793	$ 28,462
Debt securities	1,557	1,436
Federal Funds and other interest-earning assets	1,483	995
Equity investments	152	192
Total interest income	36,985	31,085
Interest expense
Deposits	3,584	1,948
Federal Home Loan Bank advances and repurchase agreements	65	1
Note payable and junior subordinated debt	8	97
Total interest expense	3,657	2,046
Net interest income	33,328	29,039
Provision for loan losses	1,147	865
Net interest income after provision for loan losses	32,181	28,174
Noninterest income
Deposit account service charges	1,629	1,478
Net gain on sale of assets	88	130
Card interchange fees	864	927
Earnings on bank-owned life insurance	430	451
Other	482	375
Total noninterest income	3,493	3,361
Noninterest expense
Salaries and employee benefits	13,822	12,695
Net occupancy expense	2,267	2,265
Regulatory fees	464	545
Data processing	714	683
Software	440	365
Printing, stationery and office	353	264
Amortization of intangibles	232	255
Professional and director fees	2,091	919
Correspondent bank and customer related transaction expenses	65	67
Loan processing costs	95	118
Advertising, marketing and business development	440	506
Repossessed real estate and other asset expense		57
Security and protection expense	323	302
Telephone and communications	378	386
Other expenses	901	857
Total noninterest expense	22,585	20,284
Net income before income tax expense	13,089	11,251
Income tax expense	2,599	2,139
Net income	$ 10,490	$ 9,112
Earnings per common share
Basic	$ 0.42	$ 0.37
Diluted	$ 0.42	$ 0.37

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 10,490	$ 9,112
Unrealized gains (losses) on debt securities available for sale arising during the period, net	3,027	(3,665)
Reclassification adjustments for net realized gains included in net income	3
Change in related deferred income tax	(637)	770
Other comprehensive income (loss), net of tax	2,393	(2,895)
Total comprehensive income	$ 12,883	$ 6,217

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2017	$ 257	$ 343,249	$ 118,353	$ (15,256)	$ (389)	$ 446,214
Beginning balance, shares at Dec. 31, 2017	25,731,504			(898,272)
Net income			9,112			9,112
Dividends on common stock, $0.10 and $0.05 per share for the three months ended March 31, 2019 and 2018 respectively			(1,252)			(1,252)
Stock-based compensation expense		392				392
Other comprehensive income (loss), net of tax					(2,895)	(2,895)
Ending balance at Mar. 31, 2018	$ 257	343,641	126,213	$ (15,256)	(3,284)	451,571
Ending balance, shares at Mar. 31, 2018	25,731,504			(898,272)
Beginning balance at Dec. 31, 2018	$ 258	344,497	160,626	$ (14,781)	(2,975)	487,625
Beginning balance, shares at Dec. 31, 2018	25,777,693			(870,272)
Net income			10,490			10,490
Dividends on common stock, $0.10 and $0.05 per share for the three months ended March 31, 2019 and 2018 respectively			(2,513)			(2,513)
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(2)				$ (2)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	211					211
Exercise of stock options		(69)		$ 184		$ 115
Exercise of stock options (in shares)				10,844
Stock-based compensation expense		545				545
Other comprehensive income (loss), net of tax					2,393	2,393
Ending balance at Mar. 31, 2019	$ 258	$ 344,971	$ 168,603	$ (14,597)	$ (582)	$ 498,653
Ending balance, shares at Mar. 31, 2019	25,777,904			(859,428)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.05

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 10,490,000	$ 9,112,000
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for loan losses	1,147,000	865,000
Depreciation	824,000	825,000
Amortization of intangibles	232,000	255,000
Amortization of premiums on securities	256,000	291,000
Amortization of lease right-to-use assets	329,000
Accretion of lease liabilities	131,000
Earnings on bank-owned life insurance	(430,000)	(451,000)
Stock-based compensation expense	545,000	392,000
Deferred income tax provision	622,000	499,000
Net realized gains on sales of debt securities	(9,000)	(6,000)
Net gains on sales of assets	(88,000)	(130,000)
Change in operating assets and liabilities:
Loans held for sale	(820,000)	1,464,000
Other assets	303,000	2,312,000
Operating lease liabilities	(448,000)
Other liabilities	(3,069,000)	(7,726,000)
Total adjustments	(475,000)	(1,410,000)
Net cash provided by operating activities	10,015,000	7,702,000
Cash flows from investing activities:
Purchases of debt securities	(153,962,000)	(85,675,000)
Proceeds from sales, calls and maturities of debt securities	153,056,000	78,890,000
Principal repayments of debt securities	4,969,000	4,861,000
Net increase in loans	(97,639,000)	(45,514,000)
Sales of loan participations		7,500,000
Purchases of loan participations	(1,256,000)	(7,000,000)
Net contributions to equity investments	(2,039,000)	(449,000)
Proceeds from sales of U.S. Small Business Administration loans	818,000	237,000
Redemption (purchases) of bank-owned life insurance		(1,700,000)
Proceeds from sales of repossessed real estate and other assets	20,000	393,000
Net sales (purchases) of premises and equipment	(653,000)	(354,000)
Net cash used in investing activities	(96,686,000)	(48,811,000)
Cash flows from financing activities:
Net increase (decrease) in noninterest-bearing deposits	46,114,000	10,732,000
Net increase (decrease) in interest-bearing deposits	(61,397,000)	(14,002,000)
Net increase (decrease) in securities sold under agreements to repurchase	(898,000)	(664,000)
Proceeds from exercise of stock options	115,000
Payments to tax authorities for stock-based compensation	(2,000)
Redemption of trust preferred securities	(1,571,000)
Dividends paid on common stock	(1,245,000)	(1,241,000)
Net cash provided by financing activities	(18,884,000)	(5,175,000)
Net decrease in cash, cash equivalents and restricted cash	(105,555,000)	(46,284,000)
Cash, cash equivalents and restricted cash, beginning	382,070,000	326,199,000
Cash, cash equivalents and restricted cash, ending	$ 276,515,000	$ 279,915,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations CBTX, Inc., or the Company, or CBTX, operates 35 branches, 19 in the Houston market area, 15 in the 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 Board of Governors of the Federal Reserve. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2019 and December 31, 2018, consolidated results of operations for the three months ended March 31, 2019 and 2018, consolidated shareholders’ equity for the three months ended March 31, 2019 and 2018 and consolidated cash flows for the three months ended March 31, 2019 and 2018. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included within our Annual Report on Form 10-K. Reclassification— Within interest income, equity investment income for 2018 has been reclassified from federal funds and other interest-earning assets to a separate line and within interest expense, repurchase agreements and FHLB advance expense have been combined and notes payable and junior subordinated debt have also been combined. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income. Accounting Standards Recently Adopted The Company adopted Accounting Standards Update, or ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company also elected to use hindsight in determining lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $13.2 million, which represented the Company’s right to use, or control the use of, a specified assets for their lease terms and the Company recorded lease liabilities totaling $15.5 million, which represented the Company’s liability to make lease payments under these leases. Accrued lease obligations and lease incentive liabilities totaling $2.3 million that were in other liabilities at December 31, 2018 were reversed as part of the adoption. The ASU 2016-02 standard applied to all leases existing at the date of initial adoption. The Company’s financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 16. Accounting Standards Not Yet Adopted 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 for implementing ASU 2016-13, 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 2016-13 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. Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $16.2 million and $18.5 million at March 31, 2019 and December 31, 2018, respectively. Additionally, as of March 31, 2019 and December 31, 2018, the Company had $1.6 million in cash collateral used in our interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest on deposits and repurchase agreements 3,536 1,960 Cash paid for interest on junior subordinated debt 63 87 Supplemental disclosures of non-cash flow information: Dividends accrued 1,268 10 Operating lease right-to-use asset obtained in exchange for lease liabilities 13,208 — Repossessed real estate and other assets 41 —

DEBT SECURITIES

DEBT SECURITIES	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Debt securities available for sale: State and municipal securities $ 54,854 $ 811 $ (194) $ 55,471 U.S. agency securities: Debt securities 17,315 — (255) 17,060 Collateralized mortgage obligations 66,230 158 (603) 65,785 Mortgage-backed securities 89,856 490 (1,116) 89,230 Other securities 1,135 — (27) 1,108 Total $ 229,390 $ 1,459 $ (2,195) $ 228,654 Debt securities held to maturity: Mortgage-backed securities $ 30 $ 2 $ — $ 32 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 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 March 31, 2019 Amounts maturing in: 1 year or less $ 3,338 $ 3,326 $ — $ — 1 year through 5 years 20,086 19,846 — — 5 years through 10 years 13,958 14,061 — — After 10 years 192,008 191,421 30 32 $ 229,390 $ 228,654 $ 30 $ 32 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 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 $358,000 were sold in the three months ended March 31, 2019. There were no securities sold in the three months ended March 31, 2018. At March 31, 2019 and December 31, 2018, debt securities with a carrying amount of approximately $57.5 million and $49.9 million, respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. The Company held 187 debt securities at March 31, 2019 and 167 debt securities at December 31, 2018, 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 debt securities were acquired. The fair value of these debt securities is expected to recover as the debt securities reach their maturity or re‑pricing date, or if changes in market rates for such investments decline. Management does not believe that any of the debt securities are impaired due to reasons of credit quality. Accordingly, as of March 31, 2019 and December 31, 2018, management believes the unrealized losses detailed in the table below are temporary and no impairment loss has been recorded in the Company’s condensed consolidated statements of income for the three months ended March 31, 2019 and 2018. Debt securities with unrealized losses as of the dates shown below, aggregated by category and the length of time were as follows: Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses March 31, 2019 Debt securities available for sale: State and municipal securities $ 674 $ (3) $ 11,792 $ (191) U.S. agency securities: Debt securities — — 17,060 (255) Collateralized mortgage obligations — — 50,194 (603) Mortgage-backed securities 196 — 56,261 (1,116) Other securities — — 1,108 (27) $ 870 $ (3) $ 136,415 $ (2,192) 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)

EQUITY INVESTMENTS

EQUITY INVESTMENTS	3 Months Ended
	Mar. 31, 2019
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. (Dollars in thousands) March 31, 2019 December 31, 2018 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,289 1,250 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,364 2,364 $ 15,065 $ 13,026 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 Small Business Administration, or 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 March 31, 2019 and December 31, 2018, the Company had $3.0 million and $3.0 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 than the carrying amount of that investment. There were no such qualitative indicators as of March 31, 2019.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2019
LOANS
LOANS	NOTE 4: LOANS Loans by loan class as of the dates shown below were as follows: (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 559,882 $ 519,779 Real estate: Commercial real estate 811,742 795,733 Construction and development 572,861 515,533 1-4 family residential 281,502 282,011 Multi-family residential 213,582 221,194 Consumer 39,072 39,421 Agriculture 8,915 11,076 Other 64,215 68,382 Total gross loans 2,551,771 2,453,129 Less deferred loan fees and unearned discounts (6,210) (6,306) Less allowance for loan loss (24,643) (23,693) Less loans held for sale (852) — Loans, net $ 2,520,066 $ 2,423,130 Accrued interest receivable for loans is $7.9 million and $6.8 million at March 31, 2019 and December 31, 2018, respectively, and is included in other assets in the condensed consolidated balance sheets. 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 three months ending March 31, 2019 and 2018, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period March 31, 2019 Commercial real estate $ 1,256 $ — March 31, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate — 7,500 $ 7,000 $ 7,500 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 three months ended March 31, 2019 and 2018 totaled $818,000 and $237,000, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	3 Months Ended
	Mar. 31, 2019
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 5: LOAN PERFORMANCE Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: March 31, December 31, (Dollars in thousands) 2019 2018 Commercial and industrial $ 1,390 $ 1,317 Real estate: Commercial real estate 862 1,517 1-4 family residential 635 656 Other 47 — Total $ 2,934 $ 3,490 Interest income that would have been earned under the original terms of the nonaccrual loans was $48,000 and $99,000 for the three months ended March 31, 2019 and 2018, respectively. The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below: 90 days or 90 days 30 to 59 days 60 to 89 days greater Total past Total current past due and (Dollars in thousands) past due past due past due due loans Total loans still accruing March 31, 2019 Commercial and industrial $ 468 $ 25 $ 1,011 $ 1,504 $ 558,378 $ 559,882 $ — Real estate: Commercial real estate — — 692 692 811,050 811,742 — Construction and development 1,613 — — 1,613 571,248 572,861 — 1-4 family residential 193 124 147 464 281,038 281,502 — Multi-family residential 1,570 — — 1,570 212,012 213,582 — Consumer — 7 — 7 39,065 39,072 — Agriculture — — — — 8,915 8,915 — Other — — — — 64,215 64,215 — Total loans $ 3,844 $ 156 $ 1,850 $ 5,850 $ 2,545,921 $ 2,551,771 $ — 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 $ — There were no loans restructured due to the borrower’s financial difficulties during the three months ended March 31, 2019. Loans restructured due to the borrower’s financial difficulties during the three months ended March 31, 2018, which remained outstanding at the end of that period 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 March 31, 2018 Commercial and industrial 3 $ 983 $ 983 $ — $ — $ — Commercial real estate 4 2,434 2,434 — — — Total 7 $ 3,417 $ 3,417 $ — $ — $ — The recorded investment in troubled debt restructurings was $11.0 million and $11.4 million as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019 and December 31, 2018, $1.6 million and $1.8 million of restructured loans were nonaccrual loans and $9.4 million and $9.6 million of restructured loans were accruing interest as of those periods. At March 31, 2019, the Company had an outstanding commitment to potentially fund $1.5 million on a line of credit restructured prior to 2018. 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. 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	3 Months Ended
	Mar. 31, 2019
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 in the tables 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 March 31, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision (recapture) for loan loss 903 52 402 (33) (54) (36) (12) (75) 1,147 Charge-offs (280) — (4) — — (284) Recoveries 74 2 1 10 — — 87 Net (charge-offs) recoveries (206) 2 — 1 — 6 — — (197) Ending balance $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 Period-end amount allocated to: Specific reserve $ 582 $ 33 $ — $ 77 $ — $ — $ — $ 96 $ 788 General reserve 7,834 6,751 4,700 2,172 1,457 357 50 534 23,855 Total $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 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 March 31, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 479 364 (126) 5 101 (51) (15) 108 865 Charge-offs (469) — — (3) — — — — (472) Recoveries 172 3 — 1 — 2 — — 178 Net (charge-offs) recoveries (297) 3 — (2) — 2 — — (294) Ending balance $ 7,439 $ 10,742 $ 3,356 $ 1,329 $ 1,520 $ 517 $ 53 $ 393 $ 25,349 Period-end amount allocated to: Specific reserve $ 845 $ 55 $ — $ 107 $ — $ — $ — $ — $ 1,007 General reserve 6,594 10,687 3,356 1,222 1,520 517 53 393 24,342 Total $ 7,439 $ 10,742 $ 3,356 $ 1,329 $ 1,520 $ 517 $ 53 $ 393 $ 25,349 The allowance for loan losses by loan category as of the periods indicated was as follows: March 31, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 8,416 34.1 % $ 7,719 32.6 % Real estate: Commercial real estate 6,784 27.5 % 6,730 28.4 % Construction and development 4,700 19.1 % 4,298 18.1 % 1-4 family residential 2,249 9.1 % 2,281 9.6 % Multi-family residential 1,457 5.9 % 1,511 6.4 % Consumer 357 1.5 % 387 1.6 % Agricultural 50 0.2 % 62 0.3 % Other 630 2.6 % 705 3.0 % Total allowance for loan losses $ 24,643 100.0 % $ 23,693 100 % Allocation of a portion of the allowance to one category of loans 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 March 31, 2019 and December 31, 2018, 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 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. Often, the assets in this category will have a valuation allowance representative of management’s estimated loss that is probable to be incurred. Loans deemed 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 March 31, 2019 and December 31, 2018. 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 March 31, 2019 Commercial and industrial $ 544,799 5,816 9,267 $ 559,882 Real estate: Commercial real estate 801,078 8,058 2,606 811,742 Construction and development 571,301 1,560 — 572,861 1-4 family residential 276,203 — 5,299 281,502 Multi-family residential 213,582 — — 213,582 Consumer 38,816 242 14 39,072 Agriculture 8,888 — 27 8,915 Other 56,833 — 7,382 64,215 Total loans $ 2,511,500 $ 15,676 $ 24,595 $ 2,551,771 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 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 March 31, 2019 Commercial and industrial $ 4,333 $ 3,517 $ 700 $ 4,217 $ 582 $ 4,288 Real estate: Commercial real estate 2,677 1,942 585 2,527 33 2,984 1-4 family residential 4,232 2,297 1,812 4,109 77 4,219 Other 7,382 6,093 1,288 7,381 96 7,492 Total loans $ 18,624 $ 13,849 $ 4,385 $ 18,234 $ 788 $ 18,983 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 Interest income recognized on impaired loans was $215,000 and $254,000 for the three months ended March 31, 2019 and 2018, 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: March 31, 2019 December 31, 2018 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 $ 4,217 $ 555,665 $ 559,882 $ 4,277 $ 515,502 $ 519,779 Real estate: Commercial real estate 2,527 809,215 811,742 3,970 791,763 795,733 Construction and development — 572,861 572,861 — 515,533 515,533 1-4 family residential 4,109 277,393 281,502 4,436 277,575 282,011 Multi-family residential — 213,582 213,582 — 221,194 221,194 Consumer — 39,072 39,072 — 39,421 39,421 Agriculture — 8,915 8,915 — 11,076 11,076 Other 7,381 56,834 64,215 6,813 61,569 68,382 Total $ 18,234 $ 2,533,537 $ 2,551,771 $ 19,496 $ 2,433,633 $ 2,453,129 At March 31, 2019 and December 31, 2018, the allowance allocated to specific reserves for loans individually evaluated for impairment was $788,000 and $758,000, respectively.

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	3 Months Ended
	Mar. 31, 2019
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 7: PREMISES AND EQUIPMENT Premises and equipment are summarized as follows as of the dates shown below: March 31, December 31, (Dollars in thousands) 2019 2018 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,740 52,188 Furniture and equipment 15,685 15,426 Vehicles 236 232 Construction in progress — 177 82,127 81,489 Less accumulated depreciation (30,674) (29,867) Premises and equipment, net $ 51,453 $ 51,622 Depreciation expense was $824,000 and $825,000 for the three months ended March 31, 2019 and 2018, respectively, which is included in net occupancy expense on the Company’s condensed consolidated statements of income. Net gains and losses on dispositions of premises and equipment of $1,700 and $63,000 for the three months ended March 31, 2019 and 2018, were recognized and are included in net gain on sale of assets in the condensed consolidated statements of income.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at March 31, 2019 and December 31, 2018 and there have been no changes in goodwill during the three months ended March 31, 2019 or the year ended December 31, 2018. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at March 31, 2019 or December 31, 2018. Other intangibles, net of accumulated amortization, were as follows as of the dates shown below: Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2019 Other intangible assets, net Core deposits 5.0 years $ $ (12,674) $ 1,076 Customer relationships 9.8 years 6,629 (2,320) 4,309 Servicing assets 12.3 years 306 (153) 153 Total other intangible assets, net $ 20,685 $ (15,147) $ 5,538 December 31, 2018 Other intangible assets, net Core deposits 5.2 years $ $ (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 Servicing Assets Changes in the related servicing assets as of the dates indicated below were as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of year $ 166 $ 209 Increase from loan sales 14 6 Decrease from serviced loans paid off or foreclosed (19) — Amortization (8) (8) Balance at end of period $ 153 $ 207

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	3 Months Ended
	Mar. 31, 2019
BANK OWNED LIFE INSURANCE
BANK OWNED LIFE INSURANCE	NOTE 9: 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. Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: March 31, December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 71,525 $ 68,010 Purchases — 1,700 Redemptions — — Earnings, net 430 1,815 Balance at end of period $ 71,955 $ 71,525

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2019
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: March 31, December 31, (Dollars in thousands) 2019 2018 Interest-bearing demand accounts $ 352,623 $ 387,457 Money market accounts 695,968 737,770 Saving accounts 96,251 96,962 Certificates and other time deposits, $100,000 or greater 181,507 189,007 Certificates and other time deposits, less than $100,000 195,478 172,028 Total interest-bearing deposits 1,521,827 1,583,224 Noninterest-bearing deposits 1,229,172 1,183,058 Total deposits $ 2,750,999 $ 2,766,282 At March 31, 2019 and December 31, 2018, the Company had $46.7 million and $51.5 million in deposits from public entities and brokered deposits of $129.2 million and $104.5 million, respectively. The Company had no major concentrations of deposits at March 31, 2019 or December 31, 2018 from any single or related groups of depositors.

LINES OF CREDIT

LINES OF CREDIT	3 Months Ended
	Mar. 31, 2019
LINES OF CREDIT
LINES OF CREDIT	NOTE 11: LINES OF CREDIT Frost Line of Credit The Company has entered into a loan agreement, or the Loan Agreement, with Frost Bank, which provides for a $30.0 million revolving line of credit, or Line of Credit. The Loan Agreement was amended and restated on December 13, 2018 and, as amended, is referred to as the Amended Agreement. The Company can make draws on the Line of Credit for a period of 12 months which began on December 13, 2018, 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 Amended Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Amended 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 March 31, 2019. As of March 31, 2019, there were no outstanding borrowings on this line and the Company has not drawn on this line since the Company entered the agreement. Additional Lines of Credit The FHLB allows us to borrow on a blanket floating lien status collateralized by certain loans. As of March 31, 2019 and December 31, 2018, total borrowing capacity of $935.9 million and $919.9 million, respectively, was available under this arrangement. During the first quarter of 2019 and the second and third quarter of 2018, the Company borrowed under this agreement on a short-term basis and as of March 31, 2019 and December 31, 2018, there were no outstanding FHLB advances. As of March 31, 2019 and December 31, 2018, we maintained four federal funds lines of credit with commercial banks that provide for the availability to borrow up to an aggregate of $75.0 million, in federal funds. There were no funds under these lines of credit outstanding as of March 31, 2019 or December 31, 2018.

JUNIOR SUBORDINATED DEBT

JUNIOR SUBORDINATED DEBT	3 Months Ended
	Mar. 31, 2019
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT	NOTE 12: JUNIOR SUBORDINATED DEBT Prior to being acquired in 2007 by the Company, County Bancshares, Inc. received proceeds of junior subordinated debt held by a trust 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 were 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	3 Months Ended
	Mar. 31, 2019
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 $172.8 million and $169.0 million in loans to related parties at March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019 and December 31, 2018, there were no loans made to related parties deemed nonaccrual, past due, restructured or classified as potential problem loans. Unfunded Commitments —At March 31, 2019 and December 31, 2018, the Company had approximately $51.0 million and $55.7 million in unfunded loan commitments to related parties, respectively. Deposits —The Company held related party deposits of approximately $250.2 million and $311.2 million at March 31, 2019 and December 31, 2018, respectively.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2019
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 quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs —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 three months ended March 31, 2019 and the year ended December 31, 2018, 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: March 31, December 31, (Dollars in thousands) 2019 2018 Fair value of financial assets: Level 1 inputs: Debt securities available for sale - other securities $ 1,108 $ 1,088 Level 2 inputs: Debt securities available for sale State and municipal securities 55,471 57,691 U.S. Agency Securities: Debt securities 17,060 16,881 Collateralized mortgage obligations 65,785 65,414 Mortgage-backed securities 89,230 88,859 Interest rate swaps 768 962 Total fair value of financial assets $ 229,422 $ 230,895 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 768 $ 962 Total fair value of financial liabilities $ 768 $ 962 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: March 31, December 31, (Dollars in thousands) 2019 2018 Level 3 inputs Impaired loans: Commercial and industrial $ 118 $ 110 Commercial real estate 552 552 1-4 family residential 1,735 1,735 Other 1,192 1,141 Total impaired loans $ 3,597 $ 3,538 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. There were no write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure during the three months ended March 31, 2019 and during 2018. 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: March 31, December 31, (Dollars in thousands) 2019 2018 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 41 $ 13 Charge-offs recognized in the allowance for loan losses — (1) Fair value $ 41 $ 12 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: March 31, 2019 December 31, 2018 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,110 $ 54,110 $ 54,450 $ 54,450 Interest bearing deposits in banks 222,405 222,405 327,620 327,620 Level 2 inputs: Debt securities held to maturity 32 30 32 31 Bank-owned life insurance 71,955 71,955 71,525 71,525 Accrued interest receivable 8,845 8,845 8,227 8,227 Servicing asset 153 153 166 166 Level 3 inputs: Loans, including held for sale, net 2,582,037 2,520,918 2,432,753 2,423,130 Equity investments 15,065 15,065 13,026 13,026 Total financial assets $ 2,954,602 $ 2,893,481 $ 2,907,799 $ 2,898,175 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,229,172 $ 1,229,172 $ 1,183,058 $ 1,183,058 Level 2 inputs: Interest-bearing deposits 1,478,396 1,521,827 1,522,366 1,583,224 Repurchase agreements 1,600 1,600 2,498 2,498 Junior subordinated debt — — 1,571 1,571 Accrued interest payable 708 708 653 653 Total financial liabilities $ 2,709,876 $ 2,753,307 $ 2,710,146 $ 2,771,004 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	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018, no such deterioration was determined by management. At both March 31, 2019 and December 31, 2018, the Company had 13 interest rate swap agreements outstanding with borrowers and financial institutions. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Fair value amounts are included in other assets and other liabilities. 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 March 31, 2019 Interest rate swaps with customers Other Assets $ 26,013 $ 422 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.39 years Interest rate swaps with financial institution Other Assets 15,365 346 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 6.92 years Interest rate swaps with customers Other Liabilities 15,365 (346) 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 6.92 years Interest rate swaps with financial institution Other Liabilities 26,013 (422) 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.39 years Total derivatives not designated as hedging instruments $ 82,756 $ — 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 $ —

OPERATING LEASES

OPERATING LEASES	3 Months Ended
	Mar. 31, 2019
OPERATING LEASES
OPERATING LEASES	NOTE 16: OPERATING LEASES The Company adopted Accounting Standards Update, or ASU 2016-02, Leases (Topic 842) on January 1, 2019 and the Company’s leases within scope were operating leases of office space, stand-alone buildings and land. The Company’s leases have no variable costs. Right-of-use assets represent the Company’s right to use, or control the use of, leased assets for their lease term and at March 31, 2019, totaled $12.9 million. Lease liabilities represent the Company’s liability to make lease payments under these leases, on a discounted basis and at March 31, 2019, totaled $15.1 million. The weighted-average discount rate for the three months ended March 31, 2019 was 3.58%. The weighted-average remaining lease term for operating leases outstanding at March 31, 2019 was 11.8 years. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2019 was $448,000. Lease costs for the period shown below were as follows: For the Three Months Ended (Dollars in thousands) March 31, Operating lease cost $ 461 Short-term lease cost 19 Sublease income (6) Total lease cost $ 474 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) March 31, 2019 2020 $ 1,940 2021 2,070 2022 2,165 2023 2,207 2024 2,124 Thereafter 10,347 Total undiscounted lease liability 20,853 Discount (5,719) Total lease liability $ 15,134

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	3 Months Ended
	Mar. 31, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	NOTE 17: COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF‑BALANCE‑SHEET RISK 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: March 31, December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit, variable interest rate $ 702,152 $ 726,277 Commitments to extend credit, fixed interest rate 117,747 105,359 $ 819,899 $ 831,636 Standby letters of credit $ 28,072 $ 31,729 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. 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.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2019
REVENUE RECOGNITION
REVENUE RECOGNITION	NOTE 18: REVENUE RECOGNITION ASU 606 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. Three Months Ended March 31, (Dollars in thousands) 2019 2018 Deposit account service charges $ 1,629 $ 1,478 Net gain on sale of assets 88 130 Card interchange fees 864 927 Other noninterest income 482 375 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.

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	3 Months Ended
	Mar. 31, 2019
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	NOTE 19: 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. For the three months ended March 31, 2019 and 2018, the Company contributed $683,000 and $659,000 to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company 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 March 31, 2019 and December 31, 2018, the amount payable, including interest, for this deferred plan was approximately $2.5 million and $2.5 million, respectively, which is included in other liabilities in the condensed consolidated balance sheets. Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and CEO that calls for payments of $100,000 per year for a period of 10 years commencing at age 65. Payments under the plan began during 2014. The Company’s liability was $399,000 and $421,000 at March 31, 2019 and December 31, 2018, respectively, which is included in other liabilities in the condensed consolidated balance sheets and 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 $274,000 and $219,000 at March 31, 2019 and December 31, 2018, respectively, which is included in other liabilities in the condensed 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 March 31, 2019, in accordance to the terms of their respective agreements. No compensation has been recorded to date as a change of control condition is not deemed probable.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2019
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 20: 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 March 31, 2019, 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 March 31, 2019, 328,940 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Three Months Ended March 31, 2019 2018 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 232,322 $ 16.66 260,322 $ 16.00 Granted — — — — Exercised (10,844) 10.68 — — Forfeited — — — — Outstanding at end of period 221,478 16.96 260,322 16.00 A summary of stock options as of the dates shown below was as follows: March 31, 2019 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 136,279 85,199 221,478 Weighted-average exercise price per share $ 15.06 $ 19.99 $ 16.96 Aggregate intrinsic value (in thousands) $ 2,373 $ 1,063 $ 3,436 Weighted-average remaining contractual term (years) 5.3 7.7 6.2 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. 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 Shares Fair Value Shares Fair Value Outstanding at 12/31/2017 212,580 $ 26.71 — $ — Granted 1,500 29.27 — — Vested — — — — Forfeited — — — — Outstanding at 3/31/2018 214,080 $ 27.29 — $ — Outstanding at 12/31/2018 181,773 27.05 24,000 34.46 Granted 19,187 32.25 — — Vested (300) 29.27 — — Forfeited — — — — Outstanding at 3/31/2019 200,660 $ 27.54 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 during the three months ended March 31, 2019 was as follows: Shares Shares Total Issued Withheld Vested 211 89 300 A summary of restricted stock as of the dates shown below was as follows: March 31, 2019 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 200,660 24,000 Weighted-average grant date fair value per share $ 27.54 $ 34.46 Aggregate fair value (in thousands) $ 6,515 $ 779 Weighted-average remaining vesting period (years) 3.4 2.9 For the three months ended March 31, 2019 and 2018, stock compensation expense was $545,000 and $392,000, respectively. As of March 31, 2019, there was approximately $6.0 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 3.3 years.

REGULATORY MATTERS

REGULATORY MATTERS	3 Months Ended
	Mar. 31, 2019
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 21: 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. The Basel III Capital Rules 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 was phased in over a four‑year period (increasing by that amount on each subsequent January 1, until it reached 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 the Company’s financial statements. Management believes, as of March 31, 2019 and December 31, 2018, that the Company and the Bank met all capital adequacy requirements to which they were 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 March 31, 2019 and December 31, 2018, the Company and the Bank, were “well capitalized” based on the ratios presented below. Actual and required capital ratios 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 March 31, 2019 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 413,851 $ 128,186 $ 199,401 N/A N/A Bank Only $ 372,226 $ 128,176 $ 199,385 $ 185,143 Tier I Capital to Risk-Weighted Assets: Consolidated $ 413,851 $ 170,915 $ 242,129 N/A N/A Bank Only $ 372,226 $ 170,901 $ 242,110 $ 227,869 Total Capital to Risk-Weighted Assets: Consolidated $ 438,872 $ 227,886 $ 299,101 N/A N/A Bank Only $ 397,246 $ 227,869 $ 299,077 $ 284,836 Tier 1 Leverage Capital to Average Assets: Consolidated $ 413,851 $ 127,051 $ 127,051 N/A N/A Bank Only $ 372,224 $ 127,051 $ 127,051 $ 158,814 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

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
INCOME TAXES
INCOME TAXES	NOTE 22: INCOME TAXES The provision for income tax expense and effective tax rates for the periods shown below were as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Provision for income tax expense $ 2,599 $ 2,139 Effective tax rate The differences between the federal statutory rate of 21% and the effective tax rates presented in the table above were largely attributable to permanent differences primarily related to tax exempt interest and bank‑owned life insurance.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 23: EARNINGS PER SHARE The computation of basic and diluted earnings per share for the periods shown was as follows: Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Net income for common shareholders $ 10,490 $ 9,112 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,910 24,833 Dilutive effect of outstanding stock options and unvested restricted stock awards 144 121 Diluted weighted-average shares outstanding 25,054 24,954 Earnings per share: Basic $ 0.42 $ 0.37 Diluted $ 0.42 $ 0.37

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2019
SUBSEQUENT EVENT.
SUBSEQUENT EVENT	NOTE 24: SUBSEQUENT EVENT On April 29, 2019, the Company received proceeds in the amount of $1.6 million as the owner and beneficiary under a bank-owned life insurance policy as the result of the death of a former employee. The Company recorded a gain of $1.2 million over the recorded value in April 2019.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2019 and December 31, 2018, consolidated results of operations for the three months ended March 31, 2019 and 2018, consolidated shareholders’ equity for the three months ended March 31, 2019 and 2018 and consolidated cash flows for the three months ended March 31, 2019 and 2018. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included within our Annual Report on Form 10-K. Reclassification— Within interest income, equity investment income for 2018 has been reclassified from federal funds and other interest-earning assets to a separate line and within interest expense, repurchase agreements and FHLB advance expense have been combined and notes payable and junior subordinated debt have also been combined. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income.
Accounting Standards Recently Adopted	Accounting Standards Recently Adopted The Company adopted Accounting Standards Update, or ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company also elected to use hindsight in determining lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $13.2 million, which represented the Company’s right to use, or control the use of, a specified assets for their lease terms and the Company recorded lease liabilities totaling $15.5 million, which represented the Company’s liability to make lease payments under these leases. Accrued lease obligations and lease incentive liabilities totaling $2.3 million that were in other liabilities at December 31, 2018 were reversed as part of the adoption. The ASU 2016-02 standard applied to all leases existing at the date of initial adoption. The Company’s financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 16.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted 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 for implementing ASU 2016-13, 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 2016-13 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.
Cash Flow Reporting	Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $16.2 million and $18.5 million at March 31, 2019 and December 31, 2018, respectively. Additionally, as of March 31, 2019 and December 31, 2018, the Company had $1.6 million in cash collateral used in our interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest on deposits and repurchase agreements 3,536 1,960 Cash paid for interest on junior subordinated debt 63 87 Supplemental disclosures of non-cash flow information: Dividends accrued 1,268 10 Operating lease right-to-use asset obtained in exchange for lease liabilities 13,208 — Repossessed real estate and other assets 41 —

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Three Months Ended March 31, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest on deposits and repurchase agreements 3,536 1,960 Cash paid for interest on junior subordinated debt 63 87 Supplemental disclosures of non-cash flow information: Dividends accrued 1,268 10 Operating lease right-to-use asset obtained in exchange for lease liabilities 13,208 — Repossessed real estate and other assets 41 —

DEBT SECURITIES (Tables)

DEBT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Debt securities available for sale: State and municipal securities $ 54,854 $ 811 $ (194) $ 55,471 U.S. agency securities: Debt securities 17,315 — (255) 17,060 Collateralized mortgage obligations 66,230 158 (603) 65,785 Mortgage-backed securities 89,856 490 (1,116) 89,230 Other securities 1,135 — (27) 1,108 Total $ 229,390 $ 1,459 $ (2,195) $ 228,654 Debt securities held to maturity: Mortgage-backed securities $ 30 $ 2 $ — $ 32 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
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 March 31, 2019 Amounts maturing in: 1 year or less $ 3,338 $ 3,326 $ — $ — 1 year through 5 years 20,086 19,846 — — 5 years through 10 years 13,958 14,061 — — After 10 years 192,008 191,421 30 32 $ 229,390 $ 228,654 $ 30 $ 32 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
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 March 31, 2019 Debt securities available for sale: State and municipal securities $ 674 $ (3) $ 11,792 $ (191) U.S. agency securities: Debt securities — — 17,060 (255) Collateralized mortgage obligations — — 50,194 (603) Mortgage-backed securities 196 — 56,261 (1,116) Other securities — — 1,108 (27) $ 870 $ (3) $ 136,415 $ (2,192) 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)

EQUITY INVESTMENTS (Tables)

EQUITY INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
EQUITY INVESTMENTS
Schedule of equity investments that do not have readily determinable fair values	(Dollars in thousands) March 31, 2019 December 31, 2018 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,289 1,250 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 2,364 2,364 $ 15,065 $ 13,026

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2019
LOANS
Loans, by portfolio segment	(Dollars in thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 559,882 $ 519,779 Real estate: Commercial real estate 811,742 795,733 Construction and development 572,861 515,533 1-4 family residential 281,502 282,011 Multi-family residential 213,582 221,194 Consumer 39,072 39,421 Agriculture 8,915 11,076 Other 64,215 68,382 Total gross loans 2,551,771 2,453,129 Less deferred loan fees and unearned discounts (6,210) (6,306) Less allowance for loan loss (24,643) (23,693) Less loans held for sale (852) — Loans, net $ 2,520,066 $ 2,423,130
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period March 31, 2019 Commercial real estate $ 1,256 $ — March 31, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate — 7,500 $ 7,000 $ 7,500

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	3 Months Ended
	Mar. 31, 2019
LOAN PERFORMANCE
Nonaccrual loans, segregated by loan class	March 31, December 31, (Dollars in thousands) 2019 2018 Commercial and industrial $ 1,390 $ 1,317 Real estate: Commercial real estate 862 1,517 1-4 family residential 635 656 Other 47 — Total $ 2,934 $ 3,490
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 March 31, 2019 Commercial and industrial $ 468 $ 25 $ 1,011 $ 1,504 $ 558,378 $ 559,882 $ — Real estate: Commercial real estate — — 692 692 811,050 811,742 — Construction and development 1,613 — — 1,613 571,248 572,861 — 1-4 family residential 193 124 147 464 281,038 281,502 — Multi-family residential 1,570 — — 1,570 212,012 213,582 — Consumer — 7 — 7 39,065 39,072 — Agriculture — — — — 8,915 8,915 — Other — — — — 64,215 64,215 — Total loans $ 3,844 $ 156 $ 1,850 $ 5,850 $ 2,545,921 $ 2,551,771 $ — 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 $ —
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 March 31, 2018 Commercial and industrial 3 $ 983 $ 983 $ — $ — $ — Commercial real estate 4 2,434 2,434 — — — Total 7 $ 3,417 $ 3,417 $ — $ — $ —

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2019
ALLOWANCE FOR LOAN LOSSES
Activity in the allowance for loan losses segregated by loan class	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 March 31, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision (recapture) for loan loss 903 52 402 (33) (54) (36) (12) (75) 1,147 Charge-offs (280) — (4) — — (284) Recoveries 74 2 1 10 — — 87 Net (charge-offs) recoveries (206) 2 — 1 — 6 — — (197) Ending balance $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 Period-end amount allocated to: Specific reserve $ 582 $ 33 $ — $ 77 $ — $ — $ — $ 96 $ 788 General reserve 7,834 6,751 4,700 2,172 1,457 357 50 534 23,855 Total $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 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 March 31, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 479 364 (126) 5 101 (51) (15) 108 865 Charge-offs (469) — — (3) — — — — (472) Recoveries 172 3 — 1 — 2 — — 178 Net (charge-offs) recoveries (297) 3 — (2) — 2 — — (294) Ending balance $ 7,439 $ 10,742 $ 3,356 $ 1,329 $ 1,520 $ 517 $ 53 $ 393 $ 25,349 Period-end amount allocated to: Specific reserve $ 845 $ 55 $ — $ 107 $ — $ — $ — $ — $ 1,007 General reserve 6,594 10,687 3,356 1,222 1,520 517 53 393 24,342 Total $ 7,439 $ 10,742 $ 3,356 $ 1,329 $ 1,520 $ 517 $ 53 $ 393 $ 25,349
Allowance for loan losses by loan category	March 31, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 8,416 34.1 % $ 7,719 32.6 % Real estate: Commercial real estate 6,784 27.5 % 6,730 28.4 % Construction and development 4,700 19.1 % 4,298 18.1 % 1-4 family residential 2,249 9.1 % 2,281 9.6 % Multi-family residential 1,457 5.9 % 1,511 6.4 % Consumer 357 1.5 % 387 1.6 % Agricultural 50 0.2 % 62 0.3 % Other 630 2.6 % 705 3.0 % Total allowance for loan losses $ 24,643 100.0 % $ 23,693 100 %
Loans by risk grades and loan class	Special (Dollars in thousands) Pass Mention Substandard Total Loans March 31, 2019 Commercial and industrial $ 544,799 5,816 9,267 $ 559,882 Real estate: Commercial real estate 801,078 8,058 2,606 811,742 Construction and development 571,301 1,560 — 572,861 1-4 family residential 276,203 — 5,299 281,502 Multi-family residential 213,582 — — 213,582 Consumer 38,816 242 14 39,072 Agriculture 8,888 — 27 8,915 Other 56,833 — 7,382 64,215 Total loans $ 2,511,500 $ 15,676 $ 24,595 $ 2,551,771 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
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 March 31, 2019 Commercial and industrial $ 4,333 $ 3,517 $ 700 $ 4,217 $ 582 $ 4,288 Real estate: Commercial real estate 2,677 1,942 585 2,527 33 2,984 1-4 family residential 4,232 2,297 1,812 4,109 77 4,219 Other 7,382 6,093 1,288 7,381 96 7,492 Total loans $ 18,624 $ 13,849 $ 4,385 $ 18,234 $ 788 $ 18,983 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
Allowance for loan losses on the basis of the Company’s impairment methodology	March 31, 2019 December 31, 2018 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 $ 4,217 $ 555,665 $ 559,882 $ 4,277 $ 515,502 $ 519,779 Real estate: Commercial real estate 2,527 809,215 811,742 3,970 791,763 795,733 Construction and development — 572,861 572,861 — 515,533 515,533 1-4 family residential 4,109 277,393 281,502 4,436 277,575 282,011 Multi-family residential — 213,582 213,582 — 221,194 221,194 Consumer — 39,072 39,072 — 39,421 39,421 Agriculture — 8,915 8,915 — 11,076 11,076 Other 7,381 56,834 64,215 6,813 61,569 68,382 Total $ 18,234 $ 2,533,537 $ 2,551,771 $ 19,496 $ 2,433,633 $ 2,453,129

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2019
PREMISES AND EQUIPMENT
Schedule of premises and equipment	March 31, December 31, (Dollars in thousands) 2019 2018 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,740 52,188 Furniture and equipment 15,685 15,426 Vehicles 236 232 Construction in progress — 177 82,127 81,489 Less accumulated depreciation (30,674) (29,867) Premises and equipment, net $ 51,453 $ 51,622

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets	Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2019 Other intangible assets, net Core deposits 5.0 years $ $ (12,674) $ 1,076 Customer relationships 9.8 years 6,629 (2,320) 4,309 Servicing assets 12.3 years 306 (153) 153 Total other intangible assets, net $ 20,685 $ (15,147) $ 5,538 December 31, 2018 Other intangible assets, net Core deposits 5.2 years $ $ (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
Schedule of changes in related servicing assets	Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of year $ 166 $ 209 Increase from loan sales 14 6 Decrease from serviced loans paid off or foreclosed (19) — Amortization (8) (8) Balance at end of period $ 153 $ 207

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	3 Months Ended
	Mar. 31, 2019
BANK OWNED LIFE INSURANCE
Schedule of change in cash surrender value	March 31, December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 71,525 $ 68,010 Purchases — 1,700 Redemptions — — Earnings, net 430 1,815 Balance at end of period $ 71,955 $ 71,525

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2019
DEPOSITS
Schedule of deposits	March 31, December 31, (Dollars in thousands) 2019 2018 Interest-bearing demand accounts $ 352,623 $ 387,457 Money market accounts 695,968 737,770 Saving accounts 96,251 96,962 Certificates and other time deposits, $100,000 or greater 181,507 189,007 Certificates and other time deposits, less than $100,000 195,478 172,028 Total interest-bearing deposits 1,521,827 1,583,224 Noninterest-bearing deposits 1,229,172 1,183,058 Total deposits $ 2,750,999 $ 2,766,282

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2019
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	March 31, December 31, (Dollars in thousands) 2019 2018 Fair value of financial assets: Level 1 inputs: Debt securities available for sale - other securities $ 1,108 $ 1,088 Level 2 inputs: Debt securities available for sale State and municipal securities 55,471 57,691 U.S. Agency Securities: Debt securities 17,060 16,881 Collateralized mortgage obligations 65,785 65,414 Mortgage-backed securities 89,230 88,859 Interest rate swaps 768 962 Total fair value of financial assets $ 229,422 $ 230,895 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 768 $ 962 Total fair value of financial liabilities $ 768 $ 962
Summary of certain assets measured on a non‑recurring basis	March 31, December 31, (Dollars in thousands) 2019 2018 Level 3 inputs Impaired loans: Commercial and industrial $ 118 $ 110 Commercial real estate 552 552 1-4 family residential 1,735 1,735 Other 1,192 1,141 Total impaired loans $ 3,597 $ 3,538
Summary of fair value of repossessed real estate and other foreclosed assets	March 31, December 31, (Dollars in thousands) 2019 2018 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 41 $ 13 Charge-offs recognized in the allowance for loan losses — (1) Fair value $ 41 $ 12
Summary of fair market values of all financial instruments	March 31, 2019 December 31, 2018 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 54,110 $ 54,110 $ 54,450 $ 54,450 Interest bearing deposits in banks 222,405 222,405 327,620 327,620 Level 2 inputs: Debt securities held to maturity 32 30 32 31 Bank-owned life insurance 71,955 71,955 71,525 71,525 Accrued interest receivable 8,845 8,845 8,227 8,227 Servicing asset 153 153 166 166 Level 3 inputs: Loans, including held for sale, net 2,582,037 2,520,918 2,432,753 2,423,130 Equity investments 15,065 15,065 13,026 13,026 Total financial assets $ 2,954,602 $ 2,893,481 $ 2,907,799 $ 2,898,175 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,229,172 $ 1,229,172 $ 1,183,058 $ 1,183,058 Level 2 inputs: Interest-bearing deposits 1,478,396 1,521,827 1,522,366 1,583,224 Repurchase agreements 1,600 1,600 2,498 2,498 Junior subordinated debt — — 1,571 1,571 Accrued interest payable 708 708 653 653 Total financial liabilities $ 2,709,876 $ 2,753,307 $ 2,710,146 $ 2,771,004

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of the derivative instruments outstanding	Weighted Notional Fair Average (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate Maturity March 31, 2019 Interest rate swaps with customers Other Assets $ 26,013 $ 422 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.39 years Interest rate swaps with financial institution Other Assets 15,365 346 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 6.92 years Interest rate swaps with customers Other Liabilities 15,365 (346) 4.00% - 5.15% LIBOR 1M + 2.50% - 3.25% 6.92 years Interest rate swaps with financial institution Other Liabilities 26,013 (422) 4.75% - 7.25% LIBOR 1M + 2.50% - 3.20% 7.39 years Total derivatives not designated as hedging instruments $ 82,756 $ — 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 $ —

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
OPERATING LEASES
Summary of lease costs	For the Three Months Ended (Dollars in thousands) March 31, Operating lease cost $ 461 Short-term lease cost 19 Sublease income (6) Total lease cost $ 474
Summary of maturity analysis of operating lease liabilities	(Dollars in thousands) March 31, 2019 2020 $ 1,940 2021 2,070 2022 2,165 2023 2,207 2024 2,124 Thereafter 10,347 Total undiscounted lease liability 20,853 Discount (5,719) Total lease liability $ 15,134

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	3 Months Ended
	Mar. 31, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Summary of the various financial instruments whose contract amounts represent credit risk	March 31, December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit, variable interest rate $ 702,152 $ 726,277 Commitments to extend credit, fixed interest rate 117,747 105,359 $ 819,899 $ 831,636 Standby letters of credit $ 28,072 $ 31,729

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2019
REVENUE RECOGNITION
Revenue Recognition	Three Months Ended March 31, (Dollars in thousands) 2019 2018 Deposit account service charges $ 1,629 $ 1,478 Net gain on sale of assets 88 130 Card interchange fees 864 927 Other noninterest income 482 375

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2019
STOCK-BASED COMPENSATION
Schedule number of shares issued and withheld for the period	The number of shares issued and withheld during the three months ended March 31, 2019 was as follows: Shares Shares Total Issued Withheld Vested 211 89 300
Stock option plan
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Three Months Ended March 31, 2019 2018 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 232,322 $ 16.66 260,322 $ 16.00 Granted — — — — Exercised (10,844) 10.68 — — Forfeited — — — — Outstanding at end of period 221,478 16.96 260,322 16.00
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	March 31, 2019 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 136,279 85,199 221,478 Weighted-average exercise price per share $ 15.06 $ 19.99 $ 16.96 Aggregate intrinsic value (in thousands) $ 2,373 $ 1,063 $ 3,436 Weighted-average remaining contractual term (years) 5.3 7.7 6.2
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 Shares Fair Value Shares Fair Value Outstanding at 12/31/2017 212,580 $ 26.71 — $ — Granted 1,500 29.27 — — Vested — — — — Forfeited — — — — Outstanding at 3/31/2018 214,080 $ 27.29 — $ — Outstanding at 12/31/2018 181,773 27.05 24,000 34.46 Granted 19,187 32.25 — — Vested (300) 29.27 — — Forfeited — — — — Outstanding at 3/31/2019 200,660 $ 27.54 24,000 $ 34.46
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	March 31, 2019 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 200,660 24,000 Weighted-average grant date fair value per share $ 27.54 $ 34.46 Aggregate fair value (in thousands) $ 6,515 $ 779 Weighted-average remaining vesting period (years) 3.4 2.9

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 413,851 $ 128,186 $ 199,401 N/A N/A Bank Only $ 372,226 $ 128,176 $ 199,385 $ 185,143 Tier I Capital to Risk-Weighted Assets: Consolidated $ 413,851 $ 170,915 $ 242,129 N/A N/A Bank Only $ 372,226 $ 170,901 $ 242,110 $ 227,869 Total Capital to Risk-Weighted Assets: Consolidated $ 438,872 $ 227,886 $ 299,101 N/A N/A Bank Only $ 397,246 $ 227,869 $ 299,077 $ 284,836 Tier 1 Leverage Capital to Average Assets: Consolidated $ 413,851 $ 127,051 $ 127,051 N/A N/A Bank Only $ 372,224 $ 127,051 $ 127,051 $ 158,814 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

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2019
INCOME TAXES
Schedule of provision for income tax expense and effective tax rates	Three Months Ended March 31, (Dollars in thousands) 2019 2018 Provision for income tax expense $ 2,599 $ 2,139 Effective tax rate

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Net income for common shareholders $ 10,490 $ 9,112 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,910 24,833 Dilutive effect of outstanding stock options and unvested restricted stock awards 144 121 Diluted weighted-average shares outstanding 25,054 24,954 Earnings per share: Basic $ 0.42 $ 0.37 Diluted $ 0.42 $ 0.37

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2019location
Operating branches	35
Houston market area
Operating branches	19
Beaumont/East Texas market area
Operating branches	15
Dallas market area
Operating branches	1

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Recently Adopted (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019
Accounting Standards Recently Adopted
Practical Expedients	true
Use of hindsight	true
Operating lease right-to-use asset		$ 12,879
Operating lease liabilities		$ 15,134
Reversed accrued lease obligations and lease incentive liabilities reported in other liabilities	$ 2,300
ASU 2016-02 | Restatement
Accounting Standards Recently Adopted
Operating lease right-to-use asset	13,200
Operating lease liabilities	$ 15,500

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Due from Banks (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve required at federal reserve bank	$ 16.2	$ 18.5
Cash collateral used in interest rate swap transactions	$ 1.6	$ 1.6

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash Flow Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental disclosures of non-cash flow information:
Dividends accrued	$ 1,268	$ 10
Operating lease right-to-use asset obtained in exchange for lease liabilities	13,208
Repossessed real estate and other assets	41
Deposits and repurchase agreements
Supplemental disclosures of cash flow information:
Cash paid for interest	3,536	1,960
Junior subordinated debt.
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 63	$ 87

DEBT SECURITIES - Amortized cos

DEBT SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available-for-sale Securities [Abstract]
Amortized cost	$ 229,390	$ 233,699
Fair Value	228,654	229,933
Held-to-maturity Securities [Abstract]
Amortized cost	30	31
Fair Value	32	32
Securities Available for Sale
Available-for-sale Securities [Abstract]
Amortized cost	229,390	233,699
Gross Unrealized Gains	1,459	673
Gross Unrealized Losses	(2,195)	(4,439)
Fair Value	228,654	229,933
Securities Available for Sale | State and municipal securities
Available-for-sale Securities [Abstract]
Amortized cost	54,854	57,972
Gross Unrealized Gains	811	345
Gross Unrealized Losses	(194)	(626)
Fair Value	55,471	57,691
Securities Available for Sale | Debt securities
Available-for-sale Securities [Abstract]
Amortized cost	17,315	17,315
Gross Unrealized Losses	(255)	(434)
Fair Value	17,060	16,881
Securities Available for Sale | Collateralized mortgage obligations
Available-for-sale Securities [Abstract]
Amortized cost	66,230	66,438
Gross Unrealized Gains	158	98
Gross Unrealized Losses	(603)	(1,122)
Fair Value	65,785	65,414
Securities Available for Sale | Mortgage-backed securities
Available-for-sale Securities [Abstract]
Amortized cost	89,856	90,845
Gross Unrealized Gains	490	230
Gross Unrealized Losses	(1,116)	(2,216)
Fair Value	89,230	88,859
Securities Available for Sale | Other securities
Available-for-sale Securities [Abstract]
Amortized cost	1,135	1,129
Gross Unrealized Losses	(27)	(41)
Fair Value	1,108	1,088
Securities Held to Maturity | Mortgage-backed securities
Held-to-maturity Securities [Abstract]
Amortized cost	30	31
Gross Unrealized Gains	2	1
Fair Value	$ 32	$ 32

DEBT SECURITIES - Amortized c_2

DEBT SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 3,338	$ 3,224
Amortized cost, 1 year through 5 years	20,086	22,784
Amortized cost, 5 years through 10 years	13,958	13,127
Amortized cost, After 10 years	192,008	194,564
Available-for-sale Securities, Amortized Cost Basis, Total	229,390	233,699
Available for Sale - Estimated Fair Value
Estimated fair value, 1 year or less	3,326	3,188
Estimated fair value, 1 year through 5 years	19,846	22,370
Estimated fair value, 5 years through 10 years	14,061	13,062
Estimated fair value, After 10 years	191,421	191,313
Available-for-sale Securities, Total	228,654	229,933
Held to Maturity - Amortized Cost
Amortized cost, After 10 years	30	31
Held-to-maturity Securities, Total	30	31
Held to Maturity - Estimated Fair Value
Estimated fair value, After 10 years	32	32
Held-to-maturity Securities, Fair Value, Total	32	32
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	229,390	233,699
Available for Sale - Estimated Fair Value
Available-for-sale Securities, Total	$ 228,654	$ 229,933

DEBT SECURITIES - Securities ca

DEBT SECURITIES - Securities carrying amount (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)item	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)item
DEBT SECURITIES.
Securities sold during the year	$ 358,000	$ 0
Carrying value of securities pledged	$ 57,500,000		$ 49,900,000
Securities held in a gross unrealized loss position | item	187		167
Impairment loss on securities	$ 0	$ 0

DEBT SECURITIES - Securities wi

DEBT SECURITIES - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investment securities
Fair value - Less than twelve months	$ 870	$ 51,491
Gross Unrealized losses - Less than twelve months	(3)	(773)
Fair value - Twelve months or more	136,415	116,894
Gross Unrealized losses - Twelve months or more	(2,192)	(3,666)
State and municipal securities
Investment securities
Fair value - Less than twelve months	674	20,892
Gross Unrealized losses - Less than twelve months	(3)	(324)
Fair value - Twelve months or more	11,792	6,584
Gross Unrealized losses - Twelve months or more	(191)	(302)
Debt securities
Investment securities
Fair value - Twelve months or more	17,060	16,882
Gross Unrealized losses - Twelve months or more	(255)	(434)
Collateralized mortgage obligations
Investment securities
Fair value - Less than twelve months		8,854
Gross Unrealized losses - Less than twelve months		(81)
Fair value - Twelve months or more	50,194	46,157
Gross Unrealized losses - Twelve months or more	(603)	(1,041)
Mortgage-backed securities
Investment securities
Fair value - Less than twelve months	196	21,745
Gross Unrealized losses - Less than twelve months		(368)
Fair value - Twelve months or more	56,261	46,183
Gross Unrealized losses - Twelve months or more	(1,116)	(1,848)
Other securities
Investment securities
Fair value - Twelve months or more	1,108	1,088
Gross Unrealized losses - Twelve months or more	$ (27)	$ (41)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)item$ / shares	Dec. 31, 2018USD ($)
Equity investments
Equity investments, total	$ 15,065	$ 13,026
Number of private investment funds | item	2
Unfunded commitments	$ 3,000	3,000
Federal Reserve stock
Equity investments
Equity investments, total	$ 9,271	9,271
Par value (in dollars per share) | $ / shares	$ 100
Federal Home Loan Bank stock
Equity investments
Equity investments, total	$ 3,289	1,250
Par value (in dollars 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	$ 2,364

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Loans
Total	$ 2,551,771	$ 2,453,129
Percentage of loan	100.00%	100.00%
Less deferred loan fees and unearned discounts	$ (6,210)	$ (6,306)
Less allowance for loan loss	(24,643)	(23,693)	$ (25,349)	$ (24,778)
Less loans held for sale	(852)
Loans, net	2,520,066	2,423,130
Accrued interest receivable	7,900	6,800
Commercial and industrial
Loans
Total	$ 559,882	$ 519,779
Percentage of loan	21.90%	21.20%
Less allowance for loan loss	$ (8,416)	$ (7,719)	(7,439)	(7,257)
Commercial real estate
Loans
Total	$ 811,742	$ 795,733
Percentage of loan	31.80%	32.40%
Less allowance for loan loss	$ (6,784)	$ (6,730)	(10,742)	(10,375)
Construction and development
Loans
Total	$ 572,861	$ 515,533
Percentage of loan	22.50%	21.00%
Less allowance for loan loss	$ (4,700)	$ (4,298)	(3,356)	(3,482)
1-4 family residential
Loans
Total	$ 281,502	$ 282,011
Percentage of loan	11.00%	11.50%
Less allowance for loan loss	$ (2,249)	$ (2,281)	(1,329)	(1,326)
Multi‑family residential
Loans
Total	$ 213,582	$ 221,194
Percentage of loan	8.40%	9.00%
Less allowance for loan loss	$ (1,457)	$ (1,511)	(1,520)	(1,419)
Consumer
Loans
Total	$ 39,072	$ 39,421
Percentage of loan	1.50%	1.60%
Less allowance for loan loss	$ (357)	$ (387)	(517)	(566)
Agriculture
Loans
Total	$ 8,915	$ 11,076
Percentage of loan	0.40%	0.50%
Less allowance for loan loss	$ (50)	$ (62)	(53)	(68)
Other
Loans
Total	$ 64,215	$ 68,382
Percentage of loan	2.50%	2.80%
Less allowance for loan loss	$ (630)	$ (705)	$ (393)	$ (285)

LOANS - Loan participation and

LOANS - Loan participation and Loan Guarantees (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Loans
Participations purchased during the period	$ 1,256,000	$ 7,000,000
Participations sold during the period		7,500,000
SBA loans that were sold with servicing retained	818,000	237,000
Commercial and industrial
Loans
Participations purchased during the period		7,000,000
Commercial real estate
Loans
Participations purchased during the period	$ 1,256,000
Participations sold during the period		$ 7,500,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Nonaccrual loans
Nonaccrual loans	$ 2,934	$ 3,490
Commercial and industrial
Nonaccrual loans
Nonaccrual loans	1,390	1,317
Commercial real estate
Nonaccrual loans
Nonaccrual loans	862	1,517
1-4 family residential
Nonaccrual loans
Nonaccrual loans	635	$ 656
Other
Nonaccrual loans
Nonaccrual loans	$ 47

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Aging analysis
Total past due	$ 5,850,000		$ 8,108,000
Total current loans	2,545,921,000		2,445,021,000
Total loans	2,551,771,000		2,453,129,000
Interest income that would have been earned under the original terms of the nonaccrual loans	48,000	$ 99,000
30 to 59 days past due
Aging analysis
Total past due	3,844,000		1,028,000
60 to 89 days past due
Aging analysis
Total past due	156,000		6,285,000
90 days or greater past due
Aging analysis
Total past due	1,850,000		795,000
Commercial and industrial
Aging analysis
Total past due	1,504,000		1,213,000
Total current loans	558,378,000		518,566,000
Total loans	559,882,000		519,779,000
Commercial and industrial | 30 to 59 days past due
Aging analysis
Total past due	468,000		178,000
Commercial and industrial | 60 to 89 days past due
Aging analysis
Total past due	25,000		881,000
Commercial and industrial | 90 days or greater past due
Aging analysis
Total past due	1,011,000		154,000
Commercial real estate
Aging analysis
Total past due	692,000		1,762,000
Total current loans	811,050,000		793,971,000
Total loans	811,742,000		795,733,000
Commercial real estate | 30 to 59 days past due
Aging analysis
Total past due			68,000
Commercial real estate | 60 to 89 days past due
Aging analysis
Total past due			1,089,000
Commercial real estate | 90 days or greater past due
Aging analysis
Total past due	692,000		605,000
Construction and development
Aging analysis
Total past due	1,613,000		4,563,000
Total current loans	571,248,000		510,970,000
Total loans	572,861,000		515,533,000
Construction and development | 30 to 59 days past due
Aging analysis
Total past due	1,613,000		359,000
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	464,000		542,000
Total current loans	281,038,000		281,469,000
Total loans	281,502,000		282,011,000
1-4 family residential | 30 to 59 days past due
Aging analysis
Total past due	193,000		395,000
1-4 family residential | 60 to 89 days past due
Aging analysis
Total past due	124,000		111,000
1-4 family residential | 90 days or greater past due
Aging analysis
Total past due	147,000		36,000
Multi‑family residential
Aging analysis
Total past due	1,570,000
Total current loans	212,012,000		221,194,000
Total loans	213,582,000		221,194,000
Multi‑family residential | 30 to 59 days past due
Aging analysis
Total past due	1,570,000
Consumer
Aging analysis
Total past due	7,000		28,000
Total current loans	39,065,000		39,393,000
Total loans	39,072,000		39,421,000
Consumer | 30 to 59 days past due
Aging analysis
Total past due			28,000
Consumer | 60 to 89 days past due
Aging analysis
Total past due	7,000
Agriculture
Aging analysis
Total current loans	8,915,000		11,076,000
Total loans	8,915,000		11,076,000
Other
Aging analysis
Total current loans	64,215,000		68,382,000
Total loans	$ 64,215,000		$ 68,382,000

LOAN PERFORMANCE - Restructured

LOAN PERFORMANCE - Restructured loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)loan	Mar. 31, 2018USD ($)loan	Dec. 31, 2018USD ($)
Restructured loans
Number of loans | loan		7
Pre‑modification outstanding Recorded Investment		$ 3,417
Recorded investment in troubled debt restructurings	$ 11,000		$ 11,400
Restructured loans that are nonaccrual status	1,600		1,800
Restructured loans accruing interest	$ 9,400		9,600
Number of restructured loans for which there was a payment default | loan	0
Restructured Payments
Restructured loans
Post‑modification recorded investment		$ 3,417
Commercial and industrial
Restructured loans
Number of loans | loan		3
Pre‑modification outstanding Recorded Investment		$ 983
Commercial and industrial | Restructured Payments
Restructured loans
Post‑modification recorded investment		$ 983
Commercial real estate
Restructured loans
Number of loans | loan		4
Pre‑modification outstanding Recorded Investment		$ 2,434
Commercial real estate | Restructured Payments
Restructured loans
Post‑modification recorded investment		$ 2,434
Other
Restructured loans
Commitment to loan additional funds	$ 1,500		$ 2,100

ALLOWANCE FOR LOAN LOSSES - Seg

ALLOWANCE FOR LOAN LOSSES - Segregated by loan class (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Loan losses segregated by loan class
Beginning balance	$ 23,693,000	$ 24,778,000
Provision (recapture) for loan loss	1,147,000	865,000
Charge-offs	(284,000)	(472,000)
Recoveries	87,000	178,000
Net (charge-offs) recoveries	(197,000)	(294,000)
Ending balance	24,643,000	25,349,000
Specific reserve
Loan losses segregated by loan class
Ending balance	788,000	1,007,000
General reserve
Loan losses segregated by loan class
Ending balance	23,855,000	24,342,000
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	7,719,000	7,257,000
Provision (recapture) for loan loss	903,000	479,000
Charge-offs	(280,000)	(469,000)
Recoveries	74,000	172,000
Net (charge-offs) recoveries	(206,000)	(297,000)
Ending balance	8,416,000	7,439,000
Commercial and industrial | Specific reserve
Loan losses segregated by loan class
Ending balance	582,000	845,000
Commercial and industrial | General reserve
Loan losses segregated by loan class
Ending balance	7,834,000	6,594,000
Commercial real estate
Loan losses segregated by loan class
Beginning balance	6,730,000	10,375,000
Provision (recapture) for loan loss	52,000	364,000
Recoveries	2,000	3,000
Net (charge-offs) recoveries	2,000	3,000
Ending balance	6,784,000	10,742,000
Commercial real estate | Specific reserve
Loan losses segregated by loan class
Ending balance	33,000	55,000
Commercial real estate | General reserve
Loan losses segregated by loan class
Ending balance	6,751,000	10,687,000
Construction and development
Loan losses segregated by loan class
Beginning balance	4,298,000	3,482,000
Provision (recapture) for loan loss	402,000	(126,000)
Ending balance	4,700,000	3,356,000
Construction and development | General reserve
Loan losses segregated by loan class
Ending balance	4,700,000	3,356,000
1-4 family residential
Loan losses segregated by loan class
Beginning balance	2,281,000	1,326,000
Provision (recapture) for loan loss	(33,000)	5,000
Charge-offs		(3,000)
Recoveries	1,000	1,000
Net (charge-offs) recoveries	1,000	(2,000)
Ending balance	2,249,000	1,329,000
1-4 family residential | Specific reserve
Loan losses segregated by loan class
Ending balance	77,000	107,000
1-4 family residential | General reserve
Loan losses segregated by loan class
Ending balance	2,172,000	1,222,000
Multi‑family residential
Loan losses segregated by loan class
Beginning balance	1,511,000	1,419,000
Provision (recapture) for loan loss	(54,000)	101,000
Ending balance	1,457,000	1,520,000
Multi‑family residential | General reserve
Loan losses segregated by loan class
Ending balance	1,457,000	1,520,000
Consumer
Loan losses segregated by loan class
Beginning balance	387,000	566,000
Provision (recapture) for loan loss	(36,000)	(51,000)
Charge-offs	(4,000)
Recoveries	10,000	2,000
Net (charge-offs) recoveries	6,000	2,000
Ending balance	357,000	517,000
Consumer | General reserve
Loan losses segregated by loan class
Ending balance	357,000	517,000
Agriculture
Loan losses segregated by loan class
Beginning balance	62,000	68,000
Provision (recapture) for loan loss	(12,000)	(15,000)
Ending balance	50,000	53,000
Agriculture | General reserve
Loan losses segregated by loan class
Ending balance	50,000	53,000
Other
Loan losses segregated by loan class
Beginning balance	705,000	285,000
Provision (recapture) for loan loss	(75,000)	108,000
Ending balance	630,000	393,000
Other | Specific reserve
Loan losses segregated by loan class
Ending balance	96,000
Other | General reserve
Loan losses segregated by loan class
Ending balance	534,000	$ 393,000
Unfunded Loan Commitment
Loan losses segregated by loan class
Beginning balance	378,000
Ending balance	$ 378,000

ALLOWANCE FOR LOAN LOSSES - All

ALLOWANCE FOR LOAN LOSSES - Allowance for loan losses by loan category (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Loan Category
Allowance of loan losses	$ 24,643	$ 23,693	$ 25,349	$ 24,778
Allowance for loan losses (as a percent)	100.00%	100.00%
Commercial and industrial
Loan Category
Allowance of loan losses	$ 8,416	$ 7,719	7,439	7,257
Allowance for loan losses (as a percent)	34.10%	32.60%
Commercial real estate
Loan Category
Allowance of loan losses	$ 6,784	$ 6,730	10,742	10,375
Allowance for loan losses (as a percent)	27.50%	28.40%
Construction and development
Loan Category
Allowance of loan losses	$ 4,700	$ 4,298	3,356	3,482
Allowance for loan losses (as a percent)	19.10%	18.10%
1-4 family residential
Loan Category
Allowance of loan losses	$ 2,249	$ 2,281	1,329	1,326
Allowance for loan losses (as a percent)	9.10%	9.60%
Multi‑family residential
Loan Category
Allowance of loan losses	$ 1,457	$ 1,511	1,520	1,419
Allowance for loan losses (as a percent)	5.90%	6.40%
Consumer
Loan Category
Allowance of loan losses	$ 357	$ 387	517	566
Allowance for loan losses (as a percent)	1.50%	1.60%
Agriculture
Loan Category
Allowance of loan losses	$ 50	$ 62	53	68
Allowance for loan losses (as a percent)	0.20%	0.30%
Other
Loan Category
Allowance of loan losses	$ 630	$ 705	$ 393	$ 285
Allowance for loan losses (as a percent)	2.60%	3.00%

ALLOWANCE FOR LOAN LOSSES - Ris

ALLOWANCE FOR LOAN LOSSES - Risk Grading (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Risk Grading
Risk rating of loans	$ 2,551,771	$ 2,453,129
Pass
Risk Grading
Risk rating of loans	2,511,500	2,404,521
Special Mention
Risk Grading
Risk rating of loans	15,676	22,763
Substandard
Risk Grading
Risk rating of loans	24,595	25,845
Loss or Doubtful
Risk Grading
Risk rating of loans	0	0
Commercial and industrial
Risk Grading
Risk rating of loans	559,882	519,779
Commercial and industrial | Pass
Risk Grading
Risk rating of loans	544,799	504,425
Commercial and industrial | Special Mention
Risk Grading
Risk rating of loans	5,816	5,768
Commercial and industrial | Substandard
Risk Grading
Risk rating of loans	9,267	9,586
Commercial real estate
Risk Grading
Risk rating of loans	811,742	795,733
Commercial real estate | Pass
Risk Grading
Risk rating of loans	801,078	781,035
Commercial real estate | Special Mention
Risk Grading
Risk rating of loans	8,058	10,370
Commercial real estate | Substandard
Risk Grading
Risk rating of loans	2,606	4,328
Construction and development
Risk Grading
Risk rating of loans	572,861	515,533
Construction and development | Pass
Risk Grading
Risk rating of loans	571,301	511,329
Construction and development | Special Mention
Risk Grading
Risk rating of loans	1,560	4,204
1-4 family residential
Risk Grading
Risk rating of loans	281,502	282,011
1-4 family residential | Pass
Risk Grading
Risk rating of loans	276,203	274,781
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	5,299	5,055
Multi‑family residential
Risk Grading
Risk rating of loans	213,582	221,194
Multi‑family residential | Pass
Risk Grading
Risk rating of loans	213,582	221,194
Consumer
Risk Grading
Risk rating of loans	39,072	39,421
Consumer | Pass
Risk Grading
Risk rating of loans	38,816	39,140
Consumer | Special Mention
Risk Grading
Risk rating of loans	242	246
Consumer | Substandard
Risk Grading
Risk rating of loans	14	35
Agriculture
Risk Grading
Risk rating of loans	8,915	11,076
Agriculture | Pass
Risk Grading
Risk rating of loans	8,888	11,048
Agriculture | Substandard
Risk Grading
Risk rating of loans	27	28
Other
Risk Grading
Risk rating of loans	64,215	68,382
Other | Pass
Risk Grading
Risk rating of loans	56,833	61,569
Other | Substandard
Risk Grading
Risk rating of loans	$ 7,382	$ 6,813

ALLOWANCE FOR LOAN LOSSES - Loa

ALLOWANCE FOR LOAN LOSSES - Loan Impairment Assessment (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Loan Impairment Assessment
Unpaid contractual principal balance	$ 18,624,000		$ 19,871,000
Recorded investment with no allowance	13,849,000		15,200,000
Recorded investment with allowance	4,385,000		4,296,000
Total recorded investment	18,234,000		19,496,000
Related allowance	788,000		758,000
Average recorded investment year‑to‑date	18,983,000		24,490,000
Interest income recognized on impaired loans	215,000	$ 254,000
Commercial and industrial
Loan Impairment Assessment
Unpaid contractual principal balance	4,333,000		4,378,000
Recorded investment with no allowance	3,517,000		3,642,000
Recorded investment with allowance	700,000		635,000
Total recorded investment	4,217,000		4,277,000
Related allowance	582,000		525,000
Average recorded investment year‑to‑date	4,288,000		5,771,000
Commercial real estate
Loan Impairment Assessment
Unpaid contractual principal balance	2,677,000		4,128,000
Recorded investment with no allowance	1,942,000		3,374,000
Recorded investment with allowance	585,000		596,000
Total recorded investment	2,527,000		3,970,000
Related allowance	33,000		44,000
Average recorded investment year‑to‑date	2,984,000		6,135,000
Construction and development
Loan Impairment Assessment
Average recorded investment year‑to‑date			139,000
1-4 family residential
Loan Impairment Assessment
Unpaid contractual principal balance	4,232,000		4,551,000
Recorded investment with no allowance	2,297,000		2,612,000
Recorded investment with allowance	1,812,000		1,824,000
Total recorded investment	4,109,000		4,436,000
Related allowance	77,000		89,000
Average recorded investment year‑to‑date	4,219,000		4,597,000
Consumer
Loan Impairment Assessment
Average recorded investment year‑to‑date			7,000
Other
Loan Impairment Assessment
Unpaid contractual principal balance	7,382,000		6,814,000
Recorded investment with no allowance	6,093,000		5,572,000
Recorded investment with allowance	1,288,000		1,241,000
Total recorded investment	7,381,000		6,813,000
Related allowance	96,000		100,000
Average recorded investment year‑to‑date	$ 7,492,000		$ 7,841,000

ALLOWANCE FOR LOAN LOSSES - L_2

ALLOWANCE FOR LOAN LOSSES - Loan losses on the basis of Company's impairment methodology (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	$ 18,234,000	$ 19,496,000
Loans collectively evaluated for impairment	2,533,537,000	2,433,633,000
Total	2,551,771,000	2,453,129,000
Allowance allocated to specific reserves for loans individually evaluated for impairment	788,000	758,000
Commercial and industrial
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,217,000	4,277,000
Loans collectively evaluated for impairment	555,665,000	515,502,000
Total	559,882,000	519,779,000
Commercial real estate
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	2,527,000	3,970,000
Loans collectively evaluated for impairment	809,215,000	791,763,000
Total	811,742,000	795,733,000
Construction and development
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	572,861,000	515,533,000
Total	572,861,000	515,533,000
1-4 family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,109,000	4,436,000
Loans collectively evaluated for impairment	277,393,000	277,575,000
Total	281,502,000	282,011,000
Multi‑family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	213,582,000	221,194,000
Total	213,582,000	221,194,000
Consumer
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	39,072,000	39,421,000
Total	39,072,000	39,421,000
Agriculture
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	8,915,000	11,076,000
Total	8,915,000	11,076,000
Other
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	7,381,000	6,813,000
Loans collectively evaluated for impairment	56,834,000	61,569,000
Total	$ 64,215,000	$ 68,382,000

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
PREMISES AND EQUIPMENT
Premises and equipment	$ 82,127,000		$ 81,489,000
Less accumulated depreciation	(30,674,000)		(29,867,000)
Premises and equipment, net	51,453,000		51,622,000
Depreciation	824,000	$ 825,000
Net gains and losses on sale of assets	1,700	$ 63,000
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466,000		13,466,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	52,740,000		52,188,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	15,685,000		15,426,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	$ 236,000		232,000
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment			$ 177,000

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Changes in goodwill	0	0
Other Intangible Assets, net
Gross Intangible Assets	20,685	20,690
Accumulated Amortization	(15,147)	(14,915)
Net Intangible Assets	$ 5,538	$ 5,775
Core deposits
Other Intangible Assets, net
Weighted Amortization Period	5 years	5 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(12,674)	(12,561)
Net Intangible Assets	$ 1,076	$ 1,189
Customer relationships
Other Intangible Assets, net
Weighted Amortization Period	9 years 9 months 18 days	10 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(2,320)	(2,209)
Net Intangible Assets	$ 4,309	$ 4,420
Servicing assets
Other Intangible Assets, net
Weighted Amortization Period	12 years 3 months 18 days	14 years 4 months 24 days
Gross Intangible Assets	$ 306	$ 311
Accumulated Amortization	(153)	(145)
Net Intangible Assets	$ 153	$ 166

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Servicing Assets
Balance at beginning of year	$ 166	$ 209
Increase from loan sales	14	6
Decrease from serviced loans paid off or foreclosed	(19)
Amortization	(8)	(8)
Balance at end of period	$ 153	$ 207

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
BANK OWNED LIFE INSURANCE
Balance at beginning of year	$ 71,525	$ 68,010	$ 68,010
Purchases			1,700
Earnings, net	430	$ 451	1,815
Balance at end of year	$ 71,955		$ 71,525

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
DEPOSITS
Interest-bearing demand accounts	$ 352,623	$ 387,457
Money market accounts	695,968	737,770
Saving accounts	96,251	96,962
Certificates and other time deposits, $100,000 or greater	181,507	189,007
Certificates and other time deposits, less than $100,000	195,478	172,028
Total interest-bearing deposits	1,521,827	1,583,224
Noninterest-bearing deposits	1,229,172	1,183,058
Total deposits	$ 2,750,999	$ 2,766,282

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 46.7	$ 51.5
Brokered deposits	$ 129.2	$ 104.5

LINES OF CREDIT (Details)

LINES OF CREDIT (Details) $ in Millions	Dec. 13, 2018USD ($)	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item
NOTES PAYABLE AND LINES OF CREDIT
Capital to risk based assets ratio		15.40%	15.60%
Line of Credit | Frost Bank (Amended Agreement)
NOTES PAYABLE AND LINES OF CREDIT
Revolving line of credit available	$ 30
Revolving line of credit draw period	12 months
Debt term	60 months
Line of credit payment terms	payable quarterly in the first 12 months and thereafter quarterly principal and interest payments are required over a term of 60 months
Outstanding borrowings		$ 0
Line of Credit | Frost Bank (Amended Agreement) | Minimum
NOTES PAYABLE AND LINES OF CREDIT
Tangible capital	$ 300
Free cash flow coverage ratio	1.00%
Capital to risk based assets ratio	12.00%
Line of Credit | Frost Bank (Amended Agreement) | Maximum
NOTES PAYABLE AND LINES OF CREDIT
Free cash flow coverage ratio	1.25%
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		935.9	919.9
Federal funds line of credit | Federal Home Loan Bank
NOTES PAYABLE AND LINES OF CREDIT
Revolving line of credit available		75
Outstanding borrowings		$ 0	$ 0
Number of federal funds line of credit | item		4	4

JUNIOR SUBORDINATED DEBT (Detai

JUNIOR SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2018	Mar. 31, 2019	Dec. 31, 2015	Dec. 31, 2006	Dec. 31, 2018
Junior subordinated notes
Junior subordinate debt					$ 1,571
Purchase of trust preferred securities		$ 1,571
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 ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 172.8	$ 169
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	51	55.7
Related party deposits	$ 250.2	$ 311.2

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Financial Assets
Debt securities available for sale	$ 228,654	$ 229,933
Financial Liabilities
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers into level 3	0	0
Transfers from level 3	0	0
Recurring basis
Financial Assets
Total financial assets	229,422	230,895
Financial Liabilities
Total financial liabilities	768	962
Level 1 Inputs | Recurring basis | Other securities
Financial Assets
Debt securities available for sale	1,108	1,088
Level 2 Inputs | Recurring basis | Interest rate swaps with customers
Financial Assets
Interest rate swaps assets	768	962
Financial Liabilities
Interest rate swaps liabilities	768	962
Level 2 Inputs | Recurring basis | State and municipal securities
Financial Assets
Debt securities available for sale	55,471	57,691
Level 2 Inputs | Recurring basis | Debt securities
Financial Assets
Debt securities available for sale	17,060	16,881
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	65,785	65,414
Level 2 Inputs | Recurring basis | Mortgage-backed securities
Financial Assets
Debt securities available for sale	$ 89,230	$ 88,859

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Impaired Loans
Total loans	$ 2,520,066	$ 2,423,130
Level 3 Inputs | Non-recurring basis
Impaired Loans
Total loans	3,597	3,538
Level 3 Inputs | Non-recurring basis | Commercial and industrial
Impaired Loans
Total loans	118	110
Level 3 Inputs | Non-recurring basis | Commercial real estate
Impaired Loans
Total loans	552	552
Level 3 Inputs | Non-recurring basis | 1-4 family residential
Impaired Loans
Total loans	1,735	1,735
Level 3 Inputs | Non-recurring basis | Other
Impaired Loans
Total loans	$ 1,192	$ 1,141

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure	$ 0	$ 0
Previously reported
Non‑Financial Assets and Non‑Financial Liabilities
Carrying value of foreclosed assets prior to measurement	41,000	13,000
Charge-offs recognized in the allowance for loan losses		(1,000)
Fair value	$ 41,000	$ 12,000

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financial Assets:
Interest bearing deposits in banks	$ 222,405	$ 327,620
Debt securities available for sale	228,654	229,933
Debt securities held to maturity	30	31
Loans, including held for sale, net	852
Equity investments	15,065	13,026
Accrued interest receivable	7,900	6,800
Financial Liabilities:
Noninterest-bearing deposits	1,229,172	1,183,058
Interest-bearing deposits	1,521,827	1,583,224
Repurchase agreements	1,600	2,498
Junior subordinated debt		1,571
Fair Value
Financial Assets:
Total financial assets	2,954,602	2,907,799
Financial Liabilities:
Total financial liabilities	2,709,876	2,710,146
Carrying Amount
Financial Assets:
Total financial assets	2,893,481	2,898,175
Financial Liabilities:
Total financial liabilities	2,753,307	2,771,004
Level 1 Inputs | Fair Value
Financial Assets:
Cash and due from banks	54,110	54,450
Interest bearing deposits in banks	222,405	327,620
Financial Liabilities:
Noninterest-bearing deposits	1,229,172	1,183,058
Level 1 Inputs | Carrying Amount
Financial Assets:
Cash and due from banks	54,110	54,450
Interest bearing deposits in banks	222,405	327,620
Financial Liabilities:
Noninterest-bearing deposits	1,229,172	1,183,058
Level 2 Inputs | Fair Value
Financial Assets:
Debt securities held to maturity	32	32
Bank-owned life insurance	71,955	71,525
Accrued interest receivable	8,845	8,227
Servicing asset	153	166
Financial Liabilities:
Interest-bearing deposits	1,478,396	1,522,366
Repurchase agreements	1,600	2,498
Junior subordinated debt		1,571
Accrued interest payable	708	653
Level 2 Inputs | Carrying Amount
Financial Assets:
Debt securities held to maturity	30	31
Bank-owned life insurance	71,955	71,525
Accrued interest receivable	8,845	8,227
Servicing asset	153	166
Financial Liabilities:
Interest-bearing deposits	1,521,827	1,583,224
Repurchase agreements	1,600	2,498
Junior subordinated debt		1,571
Accrued interest payable	708	653
Level 3 Inputs | Fair Value
Financial Assets:
Loans, including held for sale, net	2,582,037	2,432,753
Equity investments	15,065	13,026
Level 3 Inputs | Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,520,918	2,423,130
Equity investments	$ 15,065	$ 13,026

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer’s credit worthiness	$ 0	$ 0
Number of interest rate swap agreements | item	13
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 82,756	83,648
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	26,013	8,901
Fair value asset	$ 422	$ 169
Weighted Average Maturity	7 years 4 months 21 days	6 years 2 months 19 days
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 15,365	$ 32,923
Fair value asset	$ 346	$ 793
Weighted Average Maturity	6 years 11 months 1 day	7 years 9 months 11 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 15,365	$ 32,923
Fair value liability	$ (346)	$ (793)
Weighted Average Maturity	6 years 11 months 1 day	7 years 9 months 11 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 26,013	$ 8,901
Fair value liability	$ (422)	$ (169)
Weighted Average Maturity	7 years 4 months 21 days	6 years 2 months 19 days
Minimum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	4.75%	5.45%
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	4.75%	5.45%
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%
Minimum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
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	5.15%	5.37%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.15%	5.37%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	7.25%	7.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.20%	3.20%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.25%	3.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.25%	3.25%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.20%	3.20%

OPERATING LEASES (Details)

OPERATING LEASES (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
OPERATING LEASES
Variable costs	$ 0
Right-of-use assets	12,879,000
Operating lease liabilities	$ 15,134,000
Weighted-average discount rate	3.58%
Weighted-average remaining lease term	11 years 9 months 18 days
Cash paid for amounts included in the measurement of operating lease liabilities	$ 448,000

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Lease costs
Operating lease cost	$ 461
Short-term lease cost	19
Sublease income	(6)
Total lease cost	$ 474

OPERATING LEASES - Maturity of

OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2019USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2020	$ 1,940
2021	2,070
2022	2,165
2023	2,207
2024	2,124
Thereafter	10,347
Total undiscounted lease liability	20,853
Discount	(5,719)
Total lease liability	$ 15,134

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable	$ 702,152	$ 726,277
Commitments to extend credit, fixed	117,747	105,359
Total	819,899	831,636
Standby letters of credit	$ 28,072	$ 31,729

REVENUE RECOGNITION - Revenue-g

REVENUE RECOGNITION - Revenue-generating activities within scope of ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noninterest income
Deposit account service charges	$ 1,629	$ 1,478
Net gain on sale of assets	88	130
Card interchange fees	864	927
Other noninterest income	$ 482	$ 375

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Term of service for 401K participation		3 months
Company's contributions to the 401K plan		$ 683,000	$ 659,000
Aggregate amount paid to employees		$ 13,822,000	$ 12,695,000
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		$ 2,500,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		399,000		421,000
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		$ 274,000		219,000
Annual compensation payment amount	$ 200,000
Contractual term	10 years
Commencement age	70 years
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)	3 Months Ended
	Mar. 31, 2019shares
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	328,940

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock option plan - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of Shares Underlying Options
Outstanding, beginning of period	232,322	260,322
Granted
Exercised	(10,844)
Forfeited
Outstanding, end of period	221,478	260,322
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16.66	$ 16
Exercised	10.68
Outstanding, end of period	$ 16.96	$ 16

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock option plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	136,279
Number of shares underlying options unvested	85,199
Number of shares underlying options outstanding	221,478
Weighted-average exercise price per share exercisable	$ 15.06
Weighted-average exercise price per share unvested	19.99
Weighted-average exercise price per share outstanding	$ 16.96	$ 16.66	$ 16	$ 16
Aggregate intrinsic value exercisable	$ 2,373
Aggregate intrinsic value unvested	1,063
Aggregate intrinsic value outstanding	$ 3,436
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 2 months 12 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of Shares
Vested	(300)
Shares Withheld	89
Performance Based
Number of Shares
Outstanding, beginning of period	24,000
Outstanding, end of period	24,000
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 34.46
Outstanding, end of period	$ 34.46
Non-performance Based
Number of Shares
Outstanding, beginning of period	181,773	212,580
Granted	19,187	1,500
Vested	(300)
Outstanding, end of period	200,660	214,080
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 27.05	$ 26.71
Granted	32.25	29.27
Vested	29.27
Outstanding, end of period	$ 27.54	$ 27.29

STOCK-BASED COMPENSATION - Re_2

STOCK-BASED COMPENSATION - Restricted stock vested (Details)	3 Months Ended
	Mar. 31, 2019shares
Number of Shares
Shares Issued	211
Shares Withheld	89
Vested	300
Non-performance Based
Number of Shares
Vested	300

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 545,000	$ 392,000
Unrecognized compensation expense	$ 6,000,000
Weighted average period	3 years 3 months 18 days
Non-performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	200,660	214,080	181,773	212,580
Weighted-average grant date fair value per share	$ 27.54	$ 27.29	$ 27.05	$ 26.71
Aggregate fair value (in thousands)	$ 6,515,000
Weighted-average remaining vesting period (years)	3 years 4 months 24 days
Performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	24,000		24,000
Weighted-average grant date fair value per share	$ 34.46		$ 34.46
Aggregate fair value (in thousands)	$ 779,000
Weighted-average remaining vesting period (years)	2 years 10 months 24 days

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
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	$ 413,851	$ 405,012
Common Equity Tier One Capital Ratio	14.50%	14.70%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 128,186	$ 123,885
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 199,401	$ 192,710
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 413,851	$ 406,257
Actual ratio	14.50%	14.80%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 170,915	$ 165,180
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 242,129	$ 234,005
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 438,872	$ 430,238
Actual ratio	15.40%	15.60%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 227,886	$ 220,240
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 299,101	$ 289,065
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 413,851	$ 406,257
Actual ratio	13.00%	12.80%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 127,051	$ 127,350
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 127,051	$ 127,350
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	$ 372,226	$ 363,140
Common Equity Tier One Capital Ratio	13.10%	13.20%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 128,176	$ 123,877
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 199,385	$ 192,697
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 185,143	$ 178,933
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 372,226	$ 363,140
Actual ratio	13.10%	13.20%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 170,901	$ 165,169
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 242,110	$ 233,989
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 227,869	$ 220,225
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 397,246	$ 387,211
Actual ratio	14.00%	14.10%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 227,869	$ 220,225
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 299,077	$ 289,046
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 284,836	$ 275,282
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 372,224	$ 363,140
Actual ratio	11.70%	11.40%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 127,051	$ 127,350
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 127,051	$ 127,350
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 158,814	$ 159,188
Required to be Considered Well Capitalized, ratio	5.00%	5.00%
Minimum
Regulatory matters
Capital conversion buffer (as a percent)	0.625%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
INCOME TAXES
Income tax benefit	$ 2,599	$ 2,139
Effective tax rate (as a percent)	19.90%	19.00%
Statutory rate (as a percent)	21.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
EARNINGS PER SHARE
Net income for common shareholders	$ 10,490	$ 9,112
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,910	24,833
Dilutive effect of outstanding stock options and unvested restricted stock awards	144	121
Diluted weighted-average shares outstanding	25,054	24,954
Earnings per share:
Basic	$ 0.42	$ 0.37
Diluted	$ 0.42	$ 0.37

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Millions	Apr. 29, 2019	Apr. 30, 2019
SUBSEQUENT EVENTS
Proceeds from bank-owned life insurance policy	$ 1.6
Gain from bank-owned life insurance		$ 1.2