Stellar Bancorp (STEL) 10-Q 24 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 21, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, INC.
Entity Central Index Key	0001473844
Document Type	10-Q
Document Period End Date	Sep. 30, 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		26,016,468
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 56,416	$ 54,450
Interest-bearing deposits at other financial institutions	232,983	327,620
Total cash and cash equivalents	289,399	382,070
Securities	228,061	229,964
Equity investments	19,220	13,026
Loans, net of allowance for loan loss of $25,576 and $23,693 at September 30, 2019 and December 31, 2018, respectively	2,651,248	2,423,130
Premises and equipment, net of accumulated depreciation of $32,128 and $29,867 at September 30, 2019 and December 31, 2018, respectively	51,183	51,622
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $15,593 and $14,915 at September 30, 2019 and December 31, 2018, respectively	5,106	5,775
Bank-owned life insurance	71,451	71,525
Operating lease right-to-use asset	12,864
Deferred tax asset, net	7,094	7,201
Other assets	15,009	13,833
Total assets	3,431,585	3,279,096
Liabilities
Noninterest-bearing deposits	1,196,720	1,183,058
Interest-bearing deposits	1,547,607	1,583,224
Total deposits	2,744,327	2,766,282
Repurchase agreements	1,208	2,498
Federal Home Loan Bank advances	120,000
Junior subordinated debt		1,571
Operating lease liabilities	15,513
Other liabilities	25,317	21,120
Total liabilities	2,906,365	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, 25,780,035 and 25,777,693 shares issued at September 30, 2019 and December 31, 2018, 24,922,689 and 24,907,421 shares outstanding at September 30, 2019 and December 31, 2018, respectively	258	258
Additional paid-in capital	346,097	344,497
Retained earnings	190,960	160,626
Treasury stock, at cost, 857,346 and 870,272 shares held at September 30, 2019 and December 31, 2018, respectively	(14,562)	(14,781)
Accumulated other comprehensive gain (loss), net of tax of $656 and ($791) at September 30, 2019 and December 31, 2018, respectively	2,467	(2,975)
Total shareholders’ equity	525,220	487,625
Total liabilities and shareholders’ equity	$ 3,431,585	$ 3,279,096

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets (Unaudited)
Allowance of loan losses	$ 25,576	$ 23,693
Premises and equipment, accumulated depreciation	32,128	29,867
Other intangible assets, accumulated amortization	$ 15,593	$ 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	25,780,035	25,777,693
Common stock, shares outstanding	24,922,689	24,907,421
Treasury stock, shares	857,346	870,272
Accumulated other comprehensive gain (loss), tax	$ 656	$ (791)

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income
Interest and fees on loans	$ 36,353	$ 31,513	$ 105,754	$ 90,468
Securities	1,436	1,535	4,512	4,478
Other interest-earning assets	1,212	1,404	4,054	3,334
Equity investments	192	213	507	597
Total interest income	39,193	34,665	114,827	98,877
Interest expense
Deposits	4,130	2,961	11,536	7,035
Federal Home Loan Bank advances and repurchase agreements	484	62	1,073	76
Note payable and junior subordinated debt	4	116	16	325
Total interest expense	4,618	3,139	12,625	7,436
Net interest income	34,575	31,526	102,202	91,441
Provision (recapture) for loan losses	579	(1,142)	2,533	413
Net interest income after provision for loan losses	33,996	32,668	99,669	91,028
Noninterest income
Deposit account service charges	1,681	1,597	4,967	4,572
Net gain on sale of assets	190	152	347	492
Card interchange fees	908	922	2,713	2,820
Earnings on bank-owned life insurance	430	443	4,581	1,359
Other	906	412	2,303	1,150
Total noninterest income	4,115	3,526	14,911	10,393
Noninterest expense
Salaries and employee benefits	13,951	12,499	41,958	37,690
Net occupancy expense	2,484	2,428	7,089	7,126
Regulatory fees	144	488	1,054	1,546
Data processing	652	664	2,027	2,013
Software	469	400	1,334	1,168
Printing, stationery and office	313	291	993	858
Amortization of intangibles	221	245	678	748
Professional and director fees	1,455	809	5,828	2,414
Correspondent bank and customer related transaction expenses	67	66	198	201
Loan processing costs	124	102	343	295
Advertising, marketing and business development	407	437	1,379	1,418
Repossessed real estate and other asset expense		3		65
Security and protection expense	410	346	1,100	959
Telephone and communications	434	342	1,268	1,122
Other expenses	914	844	2,784	2,637
Total noninterest expense	22,045	19,964	68,033	60,260
Net income before income tax expense	16,066	16,230	46,547	41,161
Income tax expense	2,990	3,207	8,666	7,984
Net income	$ 13,076	$ 13,023	$ 37,881	$ 33,177
Earnings per common share
Basic	$ 0.52	$ 0.52	$ 1.52	$ 1.34
Diluted	$ 0.52	$ 0.52	$ 1.51	$ 1.33

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 13,076	$ 13,023	$ 37,881	$ 33,177
Change in unrealized gains (losses) on securities available for sale arising during the period, net	1,084	(1,957)	6,831	(6,583)
Reclassification adjustments for net realized gains included in net income	54	23	57	23
Change in related deferred income tax	(239)	407	(1,446)	1,378
Other comprehensive income (loss), net of tax	899	(1,527)	5,442	(5,182)
Total comprehensive income	$ 13,975	$ 11,496	$ 43,323	$ 27,995

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			33,177			33,177
Dividends on common stock, $0.10 and $0.30 and $0.05 and $0.15 per share for the three and nine months ended September 30, 2019 and 2018, respectively			(3,762)			(3,762)
Exercise of stock options		(181)		$ 431		250
Exercise of stock options (in shares)				25,400
Stock-based compensation expense		1,154				1,154
Other comprehensive income (loss), net of tax					(5,182)	(5,182)
Ending balance at Sep. 30, 2018	$ 257	344,222	147,768	$ (14,825)	(5,571)	471,851
Ending balance, shares at Sep. 30, 2018	25,731,504			(872,872)
Beginning balance at Jun. 30, 2018	$ 257	343,807	136,000	$ (14,825)	(4,044)	461,195
Beginning balance, shares at Jun. 30, 2018	25,731,504			(872,872)
Net income			13,023			13,023
Dividends on common stock, $0.10 and $0.30 and $0.05 and $0.15 per share for the three and nine months ended September 30, 2019 and 2018, respectively			(1,255)			(1,255)
Stock-based compensation expense		415				415
Other comprehensive income (loss), net of tax					(1,527)	(1,527)
Ending balance at Sep. 30, 2018	$ 257	344,222	147,768	$ (14,825)	(5,571)	471,851
Ending balance, shares at Sep. 30, 2018	25,731,504			(872,872)
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			37,881			37,881
Dividends on common stock, $0.10 and $0.30 and $0.05 and $0.15 per share for the three and nine months ended September 30, 2019 and 2018, respectively			(7,547)			(7,547)
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(19)				(19)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	2,442
Exercise of stock options, net of shares withheld for employee tax liabilities		(98)		$ 219		121
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				12,926
Stock-based compensation expense		1,720				1,720
Other comprehensive income (loss), net of tax					5,442	5,442
Shares repurchased		(3)				(3)
Shares repurchased, Shares	(100)
Ending balance at Sep. 30, 2019	$ 258	346,097	190,960	$ (14,562)	2,467	525,220
Ending balance, shares at Sep. 30, 2019	25,780,035			(857,346)
Beginning balance at Jun. 30, 2019	$ 258	345,495	180,401	$ (14,564)	1,568	513,158
Beginning balance, shares at Jun. 30, 2019	25,780,135			(857,466)
Net income			13,076			13,076
Dividends on common stock, $0.10 and $0.30 and $0.05 and $0.15 per share for the three and nine months ended September 30, 2019 and 2018, respectively			(2,517)			(2,517)
Exercise of stock options, net of shares withheld for employee tax liabilities		(3)		$ 2		(1)
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				120
Stock-based compensation expense		608				608
Other comprehensive income (loss), net of tax					899	899
Shares repurchased		(3)				(3)
Shares repurchased, Shares	(100)
Ending balance at Sep. 30, 2019	$ 258	$ 346,097	$ 190,960	$ (14,562)	$ 2,467	$ 525,220
Ending balance, shares at Sep. 30, 2019	25,780,035			(857,346)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.05	$ 0.30	$ 0.15

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 37,881	$ 33,177
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for loan losses	2,533	413
Depreciation expense	2,408	2,483
Amortization of intangibles	678	748
Amortization of premiums on securities	881	841
Amortization of lease right-to-use assets	987
Accretion of lease liabilities	397
Earnings on bank-owned life insurance	(4,581)	(1,359)
Stock-based compensation expense	1,720	1,154
Deferred income tax benefit	(1,339)	(553)
Earnings on securities	(17)	(42)
Net gains on sales of assets	(347)	(492)
Change in operating assets and liabilities:
Loans held for sale	162	1,398
Other assets	(784)	641
Operating lease liabilities	(1,391)
Other liabilities	5,015	(3,236)
Total adjustments	6,322	1,996
Net cash provided by operating activities	44,203	35,173
Cash flows from investing activities:
Purchases of securities	(487,603)	(336,204)
Proceeds from sales, calls and maturities of securities	475,549	312,840
Principal repayments of securities	20,037	16,720
Net increase in loans	(261,172)	(163,908)
Sales of loan participations	30,330	40,871
Purchases of loan participations	(1,756)	(31,453)
Net contributions to equity investments	(6,194)	(2,875)
Net decrease in time deposits in other banks		600
Proceeds from sales of U.S. Small Business Administration loans	2,017	1,972
Redemption (purchases) of bank-owned life insurance	4,655	(1,700)
Proceeds from sales of repossessed real estate and other assets	103	856
Net purchases of premises and equipment	(2,001)	(909)
Proceeds from insurance claims	108
Net cash used in investing activities	(225,927)	(163,190)
Cash flows from financing activities:
Net increase (decrease) in noninterest-bearing deposits	13,662	35,196
Net increase (decrease) in interest-bearing deposits	(35,617)	51,912
Net increase (decrease) in securities sold under agreements to repurchase	(1,290)	(174)
Proceeds from exercise of stock options	121	250
Payments to tax authorities for stock-based compensation	(19)
Net increase in Federal Home Loan Bank advances	120,000
Redemption of trust preferred securities	(1,571)
Dividends paid on common stock	(6,230)	(3,726)
Repurchase of common stock	(3)
Net cash provided by financing activities	89,053	83,458
Net decrease in cash, cash equivalents and restricted cash	(92,671)	(44,559)
Cash, cash equivalents and restricted cash, beginning	382,070	326,199
Cash, cash equivalents and restricted cash, ending	$ 289,399	$ 281,640

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 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, or 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 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 September 30, 2019 and December 31, 2018, consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2019 and 2018, and consolidated cash flows for the nine months ended September 30, 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 the Company’s 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 expense and interest expense on Federal Home Loan Bank, or FHLB, advances have been combined and interest expense on notes payable and junior subordinated debt have also been combined. On the December 31, 2018 balance sheet, repossessed real estate and other assets were combined with other assets. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income and consolidated balance sheets. Share Repurchase Program In July 2019, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $40.0 million of the Company’s common stock through September 30, 2020. During the nine months ended September 30, 2019, 100 shares were repurchased at $27.98 per share and retired and returned to the status of authorized but unissued shares. 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, 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 during the first quarter of 2019. 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 finalizing its evaluation of the potential impact of ASU 2016-13 on the consolidated financial statements. The Company has developed a functional working group, with the assistance of an outside consultant, that is comprised of individuals from various areas including credit, risk management, and accounting, among others. The Company is currently finalizing its implementation plan related to the assessment and documentation of the methodology to be utilized, the processes and internal controls related to the estimation process, model development and validation, as well as system configuration. Existing technology is being adapted to conform to the requirements of ASU 2016-13 and the Company has implemented a third-party vendor solution to assist in the application 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 has initiated running a parallel process that encompasses the functionality of the model including the validation and internal controls over the estimate process. The Company expects that the adoption of ASU 2016-13 will result in an increase in the allowance for loan losses as a result of changing from an incurred loss estimate to an expected loss estimate. Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.2 million and $18.5 million at September 30, 2019 and December 31, 2018, respectively. Additionally, as of September 30, 2019 and December 31, 2018, the Company had $3.8 million and $1.6 million, respectively, in cash collateral for interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ 8,823 $ 7,827 Cash paid for interest 12,349 7,243 Supplemental disclosures of non-cash flow information: Dividends accrued 1,317 44 Operating lease right-to-use asset obtained in exchange for lease liabilities 14,046 — Repossessed real estate and other assets 77 312

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2019
SECURITIES.
SECURITIES	NOTE 2: SECURITIES The amortized cost and fair values of investments in securities as of the dates shown below were as follows: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2019 Debt securities available for sale: State and municipal securities $ 51,240 $ 1,862 $ (8) $ 53,094 U.S. agency securities: Collateralized mortgage obligations 60,974 471 (106) 61,339 Mortgage-backed securities 111,550 1,203 (300) 112,453 Equity securities 1,149 — (3) 1,146 Total $ 224,913 $ 3,536 $ (417) $ 228,032 Debt securities held to maturity: Mortgage-backed securities $ 29 $ 2 $ — $ 31 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 Equity 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 securities, by contractual maturities, as of the dates shown below were as follows: Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value September 30, 2019 Amounts maturing in: 1 year or less $ 2,536 $ 2,542 $ — $ — 1 year through 5 years 3,287 3,354 — — 5 years through 10 years 13,861 14,205 — — After 10 years 205,229 207,931 29 31 $ 224,913 $ 228,032 $ 29 $ 31 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. Securities with a carrying amount of $20.4 million and $6.6 million were sold in the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019 and December 31, 2018, securities with a carrying amount of approximately $58.1 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 33 securities at September 30, 2019 and 100 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 securities were acquired. The fair value of these securities is expected to recover as the securities reach their maturity or re‑pricing date, or if changes in market rates for such investments decline. Management does not believe that any of the securities the Company holds are impaired due to reasons of credit quality and believes the unrealized losses detailed in the tables below are temporary. No impairment loss has been recorded in the Company’s condensed consolidated statements of income for the nine months ended September 30, 2019 and 2018. 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 September 30, 2019 Debt securities available for sale: State and municipal securities $ 2,043 $ (7) $ 106 $ (1) U.S. agency securities: Collateralized mortgage obligations 10,514 (39) 8,580 (67) Mortgage-backed securities 16,946 (40) 27,186 (260) Equity securities — — 1,146 (3) $ 29,503 $ (86) $ 37,018 $ (331) 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) Equity securities — — 1,088 (41) $ 51,491 $ (773) $ 116,894 $ (3,666)

EQUITY INVESTMENTS

EQUITY INVESTMENTS	9 Months Ended
	Sep. 30, 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) September 30, 2019 December 31, 2018 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 6,784 1,250 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,024 2,364 $ 19,220 $ 13,026 Banks that are members of the FHLB, are required to maintain a stock investment in the FHLB calculated as a percentage of aggregate outstanding mortgages, outstanding FHLB advances and other financial instruments. As a member of the Federal Reserve System, the Bank is 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 September 30, 2019 and December 31, 2018, the Company had $2.4 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 September 30, 2019.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2019
LOANS
LOANS	NOTE 4: LOANS Loans by loan class as of the dates shown below were as follows: (Dollars in thousands) September 30, 2019 December 31, 2018 Commercial and industrial $ 523,831 $ 519,779 Real estate: Commercial real estate 875,329 795,733 Construction and development 572,276 515,533 1-4 family residential 287,434 282,011 Multi-family residential 298,396 221,194 Consumer 37,975 39,421 Agriculture 10,836 11,076 Other 76,860 68,382 Total gross loans 2,682,937 2,453,129 Less allowance for loan loss (25,576) (23,693) Less deferred loan fees and unearned discounts (6,113) (6,306) Less loans held for sale — — Loans, net $ 2,651,248 $ 2,423,130 Accrued interest receivable for loans is $8.1 million and $6.8 million at September 30, 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 nine months ending September 30, 2019 and 2018, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period September 30, 2019 Commercial real estate $ 1,756 $ 30,330 September 30, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate 24,453 35,000 Construction and development — 5,871 $ 31,453 $ 40,871 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 nine months ended September 30, 2019 and 2018 totaled $2.0 million and $2.0 million respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	9 Months Ended
	Sep. 30, 2019
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 5: LOAN PERFORMANCE Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: September 30, December 31, (Dollars in thousands) 2019 2018 Commercial and industrial $ 354 $ 1,317 Real estate: Commercial real estate 159 1,517 1-4 family residential 629 656 Total $ 1,142 $ 3,490 Interest income that would have been earned under the original terms of the nonaccrual loans was $59,000 and $220,000 for the nine months ended September 30, 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 September 30, 2019 Commercial and industrial $ 97 $ 47 $ — $ 144 $ 523,687 $ 523,831 $ — Real estate: Commercial real estate 1,885 — 50 1,935 873,394 875,329 — Construction and development — — — — 572,276 572,276 — 1-4 family residential 142 — 32 174 287,260 287,434 — Multi-family residential — — — — 298,396 298,396 — Consumer 19 — — 19 37,956 37,975 — Agriculture — — — — 10,836 10,836 — Other — — — 76,860 76,860 Total loans $ 2,143 $ 47 $ 82 $ 2,272 $ 2,680,665 $ 2,682,937 $ — 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 restructured due to the borrower’s financial difficulties during the nine months ended September 30, 2019 and 2018, which remained outstanding at the end of those periods were as follows: Post-modification recorded investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate September 30, 2019 Commercial and industrial 2 $ 163 $ — $ — $ 163 $ — 1-4 family residential 1 111 — — 115 Total 3 $ 274 $ — $ — $ 278 $ — September 30, 2018 Commercial and industrial 4 $ 967 $ 921 $ — $ 46 $ — Commercial real estate 4 2,184 2,184 — — — Total 8 $ 3,151 $ 3,105 $ — $ 46 $ — The recorded investment in troubled debt restructurings was $8.9 million and $11.4 million as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019 and December 31, 2018, $368,000 and $1.8 million of restructured loans were nonaccrual loans and $8.5 million and $9.6 million of restructured loans were accruing interest as of those periods. At December 31, 2018, the Company had an outstanding commitment to potentially fund $2.1 million on a line of credit restructured prior to 2018. At September 30, 2019, the Company had no outstanding commitments to potentially fund additional funds to borrowers with loans that were restructured. There were no loans modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. For purposes of this disclosure, a default is a loan modified as a troubled debt restructuring where the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2019 and 2018, 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 September 30, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision for loan loss 309 1,021 527 66 318 244 20 28 2,533 Charge-offs (869) (44) — (12) — (88) — (52) (1,065) Recoveries 311 81 — 3 — 15 — 5 415 Net (charge-offs) recoveries (558) 37 — (9) — (73) — (47) (650) Ending balance $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 Period-end amount allocated to: Specific reserve $ 373 $ 22 $ — $ 33 $ — $ 142 $ — $ 22 $ 592 General reserve 7,097 7,766 4,825 2,305 1,829 416 82 664 24,984 Total $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 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 September 30, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 2,218 (3,467) 124 1,126 211 (173) 3 371 413 Charge-offs (1,136) (9) — (3) — (1) — (3) (1,152) Recoveries 424 14 — 5 — 2 — 2 447 Net (charge-offs) recoveries (712) 5 — 2 — 1 — (1) (705) Ending balance $ 8,763 $ 6,913 $ 3,606 $ 2,454 $ 1,630 $ 394 $ 71 $ 655 $ 24,486 Period-end amount allocated to: Specific reserve $ 542 $ 1 $ — $ 115 $ — $ — $ — $ 127 $ 785 General reserve 8,221 6,912 3,606 2,339 1,630 394 71 528 23,701 Total $ 8,763 $ 6,913 $ 3,606 $ 2,454 $ 1,630 $ 394 $ 71 $ 655 $ 24,486 The allowance for loan losses by loan category as of the periods indicated was as follows: September 30, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 7,470 29.2 % $ 7,719 32.6 % Real estate: Commercial real estate 7,788 30.5 % 6,730 28.4 % Construction and development 4,825 18.9 % 4,298 18.1 % 1-4 family residential 2,338 9.1 % 2,281 9.6 % Multi-family residential 1,829 7.1 % 1,511 6.4 % Consumer 558 2.2 % 387 1.6 % Agricultural 82 0.3 % 62 0.3 % Other 686 2.7 % 705 3.0 % Total allowance for loan losses $ 25,576 100.0 % $ 23,693 100.0 % 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 a reserve for loan losses on unfunded commitments of $378,000 recorded in other liabilities as of September 30, 2019 and December 31, 2018. 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 that 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 individually 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 September 30, 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 September 30, 2019 Commercial and industrial $ 507,785 $ 4,160 $ 11,886 $ 523,831 Real estate: Commercial real estate 852,731 20,879 1,719 875,329 Construction and development 558,148 14,128 — 572,276 1-4 family residential 281,463 599 5,372 287,434 Multi-family residential 298,396 — — 298,396 Consumer 37,724 — 251 37,975 Agriculture 10,756 50 30 10,836 Other 70,164 — 6,696 76,860 Total loans $ 2,617,167 $ 39,816 $ 25,954 $ 2,682,937 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 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 September 30, 2019 Commercial and industrial $ 901 $ 343 $ 454 $ 797 $ 373 $ 2,966 Real estate: Commercial real estate 1,527 945 574 1,519 22 2,416 1-4 family residential 4,158 2,227 1,786 4,013 33 4,108 Consumer 221 — 221 221 142 100 Other 6,693 5,451 1,241 6,692 22 6,815 Total loans $ 13,500 $ 8,966 $ 4,276 $ 13,242 $ 592 $ 16,405 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 $517,000 and $808,000 for the nine months ended September 30, 2019 and 2018, respectively. The recorded investment in loans as of the dates shown below by loan class and based on the Company’s impairment methodology was as follows: September 30, 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 $ 797 $ 523,034 $ 523,831 $ 4,277 $ 515,502 $ 519,779 Real estate: Commercial real estate 1,519 873,810 875,329 3,970 791,763 795,733 Construction and development — 572,276 572,276 — 515,533 515,533 1-4 family residential 4,013 283,421 287,434 4,436 277,575 282,011 Multi-family residential — 298,396 298,396 — 221,194 221,194 Consumer 221 37,754 37,975 — 39,421 39,421 Agriculture — 10,836 10,836 — 11,076 11,076 Other 6,692 70,168 76,860 6,813 61,569 68,382 Total $ 13,242 $ 2,669,695 $ 2,682,937 $ 19,496 $ 2,433,633 $ 2,453,129 At September 30, 2019 and December 31, 2018, the allowance allocated to specific reserves for loans individually evaluated for impairment was $592,000 and $758,000, respectively.

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2019 2018 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,875 52,188 Furniture and equipment 15,787 15,426 Vehicles 203 232 Construction in progress 980 177 83,311 81,489 Less accumulated depreciation (32,128) (29,867) Premises and equipment, net $ 51,183 $ 51,622 Depreciation expense was $2.4 million and $2.5 million for the nine months ended September 30, 2019 and 2018, respectively, which is included in net occupancy expense on the Company’s condensed consolidated statements of income. A net loss of $32,000 for dispositions of premises and equipment for the nine months ended September 30, 2019 was recognized and included in net gain on sale of assets in the condensed consolidated statements of income. There were no dispositions of premises and equipment in the nine months ended September 30, 2018.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at September 30, 2019 and December 31, 2018 and there have been no changes in goodwill during the nine months ended September 30, 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 September 30, 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 September 30, 2019 Core deposits 4.5 years $ 13,750 $ (12,883) $ 867 Customer relationships 9.3 years 6,629 (2,541) 4,088 Servicing assets 12.8 years 320 (169) 151 Total other intangible assets, net $ 20,699 $ (15,593) $ 5,106 December 31, 2018 Core deposits 5.2 years $ 13,750 $ (12,561) $ 1,189 Customer relationships 10.0 years 6,629 (2,209) 4,420 Servicing assets 14.4 years 311 (145) 166 Total other intangible assets, net $ 20,690 $ (14,915) $ 5,775 Servicing Assets Changes in the related servicing assets as of the dates indicated below were as follows: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of year $ 166 $ 209 Increase from loan sales 39 38 Decrease from serviced loans paid off or foreclosed (30) (22) Amortization (24) (25) Balance at end of period $ 151 $ 200

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	9 Months Ended
	Sep. 30, 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 in noninterest income upon the death of a covered employee, on receipt of a death notice or other verified evidence. During the nine months ended September 30, 2019, the Company received proceeds in the amount of $4.7 million as the owner and beneficiary under a bank-owned life insurance policy as the result of the death of a former employee, and the Company recorded a gain of $3.3 million. Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: September 30, December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 71,525 $ 68,010 Purchases — 1,700 Redemptions (4,655) — Net change in cash surrender value 4,581 1,815 Balance at end of period $ 71,451 $ 71,525

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2019
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: September 30, December 31, (Dollars in thousands) 2019 2018 Interest-bearing demand accounts $ 337,746 $ 387,457 Money market accounts 739,436 737,770 Saving accounts 91,413 96,962 Certificates and other time deposits, $100,000 or greater 198,561 189,007 Certificates and other time deposits, less than $100,000 180,451 172,028 Total interest-bearing deposits 1,547,607 1,583,224 Noninterest-bearing deposits 1,196,720 1,183,058 Total deposits $ 2,744,327 $ 2,766,282 At September 30, 2019 and December 31, 2018, the Company had $57.3 million and $51.5 million in deposits from public entities and brokered deposits of $117.2 million and $104.5 million, respectively. Accrued interest payable for deposits was $838,000 and $594,000 at September 30, 2019 and December 31, 2018 and is included in other liabilities in the condensed consolidated balance sheets. The Company had no major concentrations of deposits at September 30, 2019 or December 31, 2018 from any single or related groups of depositors.

LINES OF CREDIT

LINES OF CREDIT	9 Months Ended
	Sep. 30, 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 September 30, 2019. As of September 30, 2019, there were no outstanding borrowings on the Line of Credit and the Company has not drawn on this line since the Company entered into the Amended Agreement. Additional Lines of Credit The FHLB allows the Company to borrow on a blanket floating lien status collateralized by certain loans. As of September 30, 2019 and December 31, 2018, total borrowing capacity of $950.8 million and $919.9 million, respectively, was available under this arrangement. During the nine months ended September 30, 2019 and 2018, the Company borrowed under this agreement on a short-term basis. As of September 30, 2019, $120.0 million of FHLB advances were outstanding with maturities of less than thirty days from September 30, 2019. At December 31, 2018, there were no outstanding FHLB advances. The average outstanding balance for FHLB advances for the nine months ended September 30, 2019 and 2018, was $59.1 million and $4.5 million, respectively. The weighted-average rate for the nine months ended September 30, 2019 and 2018, was 2.42% and 2.18%, respectively. As of September 30, 2019 and December 31, 2018, the Company maintained four federal funds lines of credit with commercial banks that provide for the availability to borrow up to an aggregate of $75.0 million, in federal funds. There were no funds under these lines of credit outstanding as of September 30, 2019 or December 31, 2018.

JUNIOR SUBORDINATED DEBT

JUNIOR SUBORDINATED DEBT	9 Months Ended
	Sep. 30, 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 $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	9 Months Ended
	Sep. 30, 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 shareholders 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 $158.7 million and $169.0 million in loans to related parties at September 30, 2019 and December 31, 2018, respectively. As of September 30, 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 September 30, 2019 and December 31, 2018, the Company had approximately $48.9 million and $55.7 million in unfunded loan commitments to related parties, respectively. Deposits —The Company held related party deposits of approximately $234.7 million and $311.2 million at September 30, 2019 and December 31, 2018, respectively.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 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, the Company uses 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 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 nine months ended September 30, 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 estimates of fair value. Fair value estimates are based on judgments 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 judgment 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 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 security’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. Equity securities — Equity securities are classified as available for sale and are recorded at fair value. The fair value measurements are based on observable data obtained from a third-party pricing service. The Company reviews the prices supplied by the services against publicly available information. The equity securities are mutual funds publicly traded on the National Association of Securities Dealers Automated Quotations, or NASDAQ, 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: September 30, December 31, (Dollars in thousands) 2019 2018 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,146 $ 1,088 Level 2 inputs: Debt securities available for sale State and municipal securities 53,094 57,691 U.S. Agency Securities: Debt securities — 16,881 Collateralized mortgage obligations 61,339 65,414 Mortgage-backed securities 112,453 88,859 Interest rate swaps 3,758 962 Total fair value of financial assets $ 231,790 $ 230,895 Fair value of financial liabilities: Level 2 inputs: interest rate swaps $ 3,758 $ 962 Total fair value of financial liabilities $ 3,758 $ 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: September 30, 2019 December 31, 2018 Recorded Recorded Investment Related Investment Related (Dollars in thousands) with Allowance Allowance Net with Allowance Allowance Net Level 3 inputs Impaired loans: Commercial and industrial $ 454 $ 373 $ 81 $ 635 $ 525 $ 110 Commercial real estate 574 22 552 596 44 552 1-4 family residential 1,786 33 1,753 1,824 89 1,735 Consumer 221 142 79 — — — Other 1,241 22 1,219 1,241 100 1,141 Total impaired loans $ 4,276 $ 592 $ 3,684 $ 4,296 $ 758 $ 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 nine months ended September 30, 2019 and during 2018, and there were no outstanding foreclosed assets as of September 30, 2019. The fair value of repossessed real estate and other foreclosed assets is estimated using Level 2 inputs and, as of the date shown below, were as follows: December 31, (Dollars in thousands) 2018 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 13 Charge-offs recognized in the allowance for loan losses (1) Fair value $ 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: September 30, 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 $ 56,416 $ 56,416 $ 54,450 $ 54,450 Interest bearing deposits in banks 232,983 232,983 327,620 327,620 Level 2 inputs: Debt securities held to maturity 31 29 32 31 Bank-owned life insurance 71,451 71,451 71,525 71,525 Accrued interest receivable 8,989 8,989 8,227 8,227 Servicing asset 151 151 166 166 Level 3 inputs: Loans, including held for sale, net 2,681,853 2,651,248 2,432,753 2,423,130 Other investments 19,220 19,220 13,026 13,026 Total financial assets $ 3,071,094 $ 3,040,487 $ 2,907,799 $ 2,898,175 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,196,720 $ 1,196,720 $ 1,183,058 $ 1,183,058 Level 2 inputs: Interest-bearing deposits 1,540,705 1,547,607 1,522,366 1,583,224 Repurchase agreements 1,206 1,208 2,498 2,498 Federal Home Loan Bank advances 118,782 120,000 — — Junior subordinated debt — — 1,571 1,571 Accrued interest payable 918 918 653 653 Total financial liabilities $ 2,858,331 $ 2,866,453 $ 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	9 Months Ended
	Sep. 30, 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 September 30, 2019 and December 31, 2018, no such deterioration was determined by management. At September 30, 2019 and December 31, 2018, the Company had 20 and 13 interest rate swap agreements outstanding with borrowers and financial institutions, respectively. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Fair value amounts are included in other assets and other liabilities. Interest rates on the Company’s swap agreements are based on the London Interbank Offered Rate of the U.S. Dollar deposits in Europe, or LIBOR. Derivative instruments outstanding as of the dates shown below were as follows: Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) September 30, 2019 Interest rate swaps with customers Other Assets $ 74,531 $ 3,758 4.00% - 5.89% LIBOR 1M + 2.50% - 3.25% 6.75 Interest rate swaps with financial institution Other Liabilities 74,531 (3,758) 4.00% - 5.89% LIBOR 1M + 2.50% - 3.25% 6.75 Total derivatives $ 149,062 $ — Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) 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 Interest rate swaps with financial institution Other Assets 32,923 793 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 Interest rate swaps with customers Other Liabilities 32,923 (793) 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 Interest rate swaps with financial institution Other Liabilities 8,901 (169) 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 Total derivatives $ 83,648 $ —

OPERATING LEASES

OPERATING LEASES	9 Months Ended
	Sep. 30, 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. Lease liabilities represent the Company’s liability to make lease payments under these leases, on a discounted basis and at September 30, 2019, totaled $15.5 million. The weighted-average discount rate for the nine months ended September 30, 2019 was 3.56%. Right-of-use assets represent the Company’s right to use, or control the use of, leased assets for their lease term and at September 30, 2019, totaled $12.9 million. During the nine months ended September 30, 2019, the Company obtained $838,000 of right-of-use assets in exchange for new operating lease liabilities related to two leases commenced in that period. The weighted-average remaining lease term for operating leases outstanding at September 30, 2019 was 11.4 years. Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2019 totaled $1.4 million. Lease costs for the period shown below were as follows: Nine Months Ended (Dollars in thousands) September 30, 2019 Operating lease cost $ 1,384 Short-term lease cost 54 Sublease income (128) Total lease cost $ 1,310 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) September 30, 2019 2019 $ 498 2020 2,042 2021 2,108 2022 2,196 2023 2,105 Thereafter 10,954 Total undiscounted lease liability 19,903 Less: Discount on cash flows (3,854) Lease signed, but not yet commenced (536) Total operating lease liability $ 15,513

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit, variable interest rate $ 662,364 $ 726,277 Commitments to extend credit, fixed interest rate 121,527 105,359 $ 783,891 $ 831,636 Standby letters of credit $ 26,712 $ 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 the Company’s 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	9 Months Ended
	Sep. 30, 2019
REVENUE RECOGNITION
REVENUE RECOGNITION	NOTE 18: REVENUE RECOGNITION ASC 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 insurance 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 noninterest income in the condensed consolidated income statements. 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Deposit account service charges $ 1,681 $ 1,597 $ 4,967 $ 4,572 Net gain on sale of assets 190 152 347 492 Card interchange fees 908 922 2,713 2,820 Other noninterest income 906 412 2,303 1,150

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2019 and 2018, the Company contributed $1.5 million and $1.4 million to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one‑fourth of the incentive bonus amount into a deferred compensation account. The deferred amounts accrue at a market rate of interest and are payable to the employees upon separation from the Bank provided vesting arrangements have been met. At September 30, 2019 and December 31, 2018, the amount payable, including interest, for this deferred plan was approximately $2.6 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 $357,000 and $421,000 at September 30, 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 $382,000 and $219,000 at September 30, 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 September 30, 2019 and December 31, 2018, 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	9 Months Ended
	Sep. 30, 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 September 30, 2019, 963,200 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 September 30, 2019, 314,924 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Nine Months Ended September 30, 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 (15,244) 12.74 (25,400) 9.85 Forfeited/expired (4,000) 17.73 — — Outstanding at end of period 213,078 16.92 234,922 16.67 A summary of stock options as of the dates shown below was as follows: September 30, 2019 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 148,879 64,199 213,078 Weighted-average exercise price per share $ 15.62 $ 19.94 $ 16.92 Aggregate intrinsic value (in thousands) $ 1,871 $ 530 $ 2,401 Weighted-average remaining contractual term (years) 5.1 7.2 5.7 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 December 31, 2017 212,580 $ 26.71 — $ — Granted 18,500 29.71 — — Vested — — — — Forfeited — — — — Outstanding at September 30, 2018 231,080 $ 26.95 — $ — Outstanding at December 31, 2018 181,773 27.05 24,000 34.46 Granted 36,992 32.18 — — Vested (3,100) 29.69 — — Forfeited (3,220) 29.99 — — Outstanding at September 30, 2019 212,445 $ 27.86 24,000 $ 34.46 A summary of restricted stock as of the dates shown below was as follows: September 30, 2019 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 212,445 24,000 Weighted-average grant date fair value per share $ 27.86 $ 34.46 Aggregate fair value (in thousands) $ 5,923 $ 677 Weighted-average remaining vesting period (years) 2.9 2.4 The Company’s stock compensation plans allow employees to elect to have shares withheld to satisfy their tax liabilities related to options exercised or restricted stock vested or to pay the exercise price of the options. During the periods shown below, the shares of stock options exercised and restricted stock vested, shares withheld and shares issued were as follows: Three Months Ended September 30, 2019 Exercised/Vested Shares Withheld Shares Issued Stock Options 400 (280) 120 Restricted Stock — — — Nine Months Ended September 30, 2019 Exercised/Vested Shares Withheld Shares Issued Stock Options 15,244 (2,318) 12,926 Restricted Stock 3,100 (658) 2,442 There were no shares withheld for options exercised or restricted stock vested in the nine months ended September 30, 2018. For the three and nine months ended September 30, 2019 and 2018, stock compensation expense was $608,000, $415,000, $1.7 million and $1.2 million, respectively. As of September 30, 2019, there was approximately $5.4 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 2.8 years.

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
	Sep. 30, 2019
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 21: REGULATORY MATTERS 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 September 30, 2019 and December 31, 2018, that the Company and the Bank met all capital adequacy requirements to which they were subject. As of September 30, 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 September 30, 2019 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 437,738 $ 131,426 $ 204,440 N/A N/A Bank Only $ 396,161 $ 131,415 $ 204,424 $ 189,822 Tier I Capital to Risk-Weighted Assets: Consolidated $ 437,738 $ 175,234 $ 248,248 N/A N/A Bank Only $ 396,161 $ 175,220 $ 248,229 $ 233,627 Total Capital to Risk-Weighted Assets: Consolidated $ 463,692 $ 233,646 $ 306,660 N/A N/A Bank Only $ 422,115 $ 233,627 $ 306,635 $ 292,034 Tier 1 Leverage Capital to Average Assets: Consolidated $ 437,738 $ 132,358 $ 132,358 N/A N/A Bank Only $ 396,161 $ 132,344 $ 132,344 $ 165,430 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 Dividend Restrictions In the ordinary course of business, the Company may be dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Provision for income tax expense $ 2,990 $ 3,207 $ 8,666 $ 7,984 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 income and bank‑owned life insurance related earnings.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income for common shareholders $ 13,076 $ 13,023 $ 37,881 $ 33,177 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,923 24,859 24,918 24,850 Dilutive effect of outstanding stock options and unvested restricted stock awards 123 201 135 157 Diluted weighted-average shares outstanding 25,046 25,060 25,053 25,007 Earnings per share: Basic $ 0.52 $ 0.52 $ 1.52 $ 1.34 Diluted $ 0.52 $ 0.52 $ 1.51 $ 1.33

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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 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 September 30, 2019 and December 31, 2018, consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2019 and 2018, and consolidated cash flows for the nine months ended September 30, 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 the Company’s 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 expense and interest expense on Federal Home Loan Bank, or FHLB, advances have been combined and interest expense on notes payable and junior subordinated debt have also been combined. On the December 31, 2018 balance sheet, repossessed real estate and other assets were combined with other assets. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income and consolidated balance sheets. Share Repurchase Program In July 2019, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $40.0 million of the Company’s common stock through September 30, 2020. During the nine months ended September 30, 2019, 100 shares were repurchased at $27.98 per share and retired and returned to the status of authorized but unissued shares.
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, 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 during the first quarter of 2019. 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 finalizing its evaluation of the potential impact of ASU 2016-13 on the consolidated financial statements. The Company has developed a functional working group, with the assistance of an outside consultant, that is comprised of individuals from various areas including credit, risk management, and accounting, among others. The Company is currently finalizing its implementation plan related to the assessment and documentation of the methodology to be utilized, the processes and internal controls related to the estimation process, model development and validation, as well as system configuration. Existing technology is being adapted to conform to the requirements of ASU 2016-13 and the Company has implemented a third-party vendor solution to assist in the application 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 has initiated running a parallel process that encompasses the functionality of the model including the validation and internal controls over the estimate process. The Company expects that the adoption of ASU 2016-13 will result in an increase in the allowance for loan losses as a result of changing from an incurred loss estimate to an expected loss estimate.
Cash Flow Reporting	Cash Flow Reporting Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $18.2 million and $18.5 million at September 30, 2019 and December 31, 2018, respectively. Additionally, as of September 30, 2019 and December 31, 2018, the Company had $3.8 million and $1.6 million, respectively, in cash collateral for interest rate swap transactions. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ 8,823 $ 7,827 Cash paid for interest 12,349 7,243 Supplemental disclosures of non-cash flow information: Dividends accrued 1,317 44 Operating lease right-to-use asset obtained in exchange for lease liabilities 14,046 — Repossessed real estate and other assets 77 312

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Supplemental disclosures of cash flow information: Cash paid for taxes $ 8,823 $ 7,827 Cash paid for interest 12,349 7,243 Supplemental disclosures of non-cash flow information: Dividends accrued 1,317 44 Operating lease right-to-use asset obtained in exchange for lease liabilities 14,046 — Repossessed real estate and other assets 77 312

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019 Debt securities available for sale: State and municipal securities $ 51,240 $ 1,862 $ (8) $ 53,094 U.S. agency securities: Collateralized mortgage obligations 60,974 471 (106) 61,339 Mortgage-backed securities 111,550 1,203 (300) 112,453 Equity securities 1,149 — (3) 1,146 Total $ 224,913 $ 3,536 $ (417) $ 228,032 Debt securities held to maturity: Mortgage-backed securities $ 29 $ 2 $ — $ 31 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 Equity 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	Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value September 30, 2019 Amounts maturing in: 1 year or less $ 2,536 $ 2,542 $ — $ — 1 year through 5 years 3,287 3,354 — — 5 years through 10 years 13,861 14,205 — — After 10 years 205,229 207,931 29 31 $ 224,913 $ 228,032 $ 29 $ 31 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 September 30, 2019 Debt securities available for sale: State and municipal securities $ 2,043 $ (7) $ 106 $ (1) U.S. agency securities: Collateralized mortgage obligations 10,514 (39) 8,580 (67) Mortgage-backed securities 16,946 (40) 27,186 (260) Equity securities — — 1,146 (3) $ 29,503 $ (86) $ 37,018 $ (331) 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) Equity securities — — 1,088 (41) $ 51,491 $ (773) $ 116,894 $ (3,666)

EQUITY INVESTMENTS (Tables)

EQUITY INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
EQUITY INVESTMENTS
Schedule of equity investments that do not have readily determinable fair values	(Dollars in thousands) September 30, 2019 December 31, 2018 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 6,784 1,250 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,024 2,364 $ 19,220 $ 13,026

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2019
LOANS
Loans, by portfolio segment	(Dollars in thousands) September 30, 2019 December 31, 2018 Commercial and industrial $ 523,831 $ 519,779 Real estate: Commercial real estate 875,329 795,733 Construction and development 572,276 515,533 1-4 family residential 287,434 282,011 Multi-family residential 298,396 221,194 Consumer 37,975 39,421 Agriculture 10,836 11,076 Other 76,860 68,382 Total gross loans 2,682,937 2,453,129 Less allowance for loan loss (25,576) (23,693) Less deferred loan fees and unearned discounts (6,113) (6,306) Less loans held for sale — — Loans, net $ 2,651,248 $ 2,423,130
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period September 30, 2019 Commercial real estate $ 1,756 $ 30,330 September 30, 2018 Commercial and industrial $ 7,000 $ — Commercial real estate 24,453 35,000 Construction and development — 5,871 $ 31,453 $ 40,871

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	9 Months Ended
	Sep. 30, 2019
LOAN PERFORMANCE
Nonaccrual loans, segregated by loan class	September 30, December 31, (Dollars in thousands) 2019 2018 Commercial and industrial $ 354 $ 1,317 Real estate: Commercial real estate 159 1,517 1-4 family residential 629 656 Total $ 1,142 $ 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 September 30, 2019 Commercial and industrial $ 97 $ 47 $ — $ 144 $ 523,687 $ 523,831 $ — Real estate: Commercial real estate 1,885 — 50 1,935 873,394 875,329 — Construction and development — — — — 572,276 572,276 — 1-4 family residential 142 — 32 174 287,260 287,434 — Multi-family residential — — — — 298,396 298,396 — Consumer 19 — — 19 37,956 37,975 — Agriculture — — — — 10,836 10,836 — Other — — — 76,860 76,860 Total loans $ 2,143 $ 47 $ 82 $ 2,272 $ 2,680,665 $ 2,682,937 $ — 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 Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate September 30, 2019 Commercial and industrial 2 $ 163 $ — $ — $ 163 $ — 1-4 family residential 1 111 — — 115 Total 3 $ 274 $ — $ — $ 278 $ — September 30, 2018 Commercial and industrial 4 $ 967 $ 921 $ — $ 46 $ — Commercial real estate 4 2,184 2,184 — — — Total 8 $ 3,151 $ 3,105 $ — $ 46 $ —

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision for loan loss 309 1,021 527 66 318 244 20 28 2,533 Charge-offs (869) (44) — (12) — (88) — (52) (1,065) Recoveries 311 81 — 3 — 15 — 5 415 Net (charge-offs) recoveries (558) 37 — (9) — (73) — (47) (650) Ending balance $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 Period-end amount allocated to: Specific reserve $ 373 $ 22 $ — $ 33 $ — $ 142 $ — $ 22 $ 592 General reserve 7,097 7,766 4,825 2,305 1,829 416 82 664 24,984 Total $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 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 September 30, 2018 Beginning balance $ 7,257 $ 10,375 $ 3,482 $ 1,326 $ 1,419 $ 566 $ 68 $ 285 $ 24,778 Provision (recapture) for loan loss 2,218 (3,467) 124 1,126 211 (173) 3 371 413 Charge-offs (1,136) (9) — (3) — (1) — (3) (1,152) Recoveries 424 14 — 5 — 2 — 2 447 Net (charge-offs) recoveries (712) 5 — 2 — 1 — (1) (705) Ending balance $ 8,763 $ 6,913 $ 3,606 $ 2,454 $ 1,630 $ 394 $ 71 $ 655 $ 24,486 Period-end amount allocated to: Specific reserve $ 542 $ 1 $ — $ 115 $ — $ — $ — $ 127 $ 785 General reserve 8,221 6,912 3,606 2,339 1,630 394 71 528 23,701 Total $ 8,763 $ 6,913 $ 3,606 $ 2,454 $ 1,630 $ 394 $ 71 $ 655 $ 24,486
Allowance for loan losses by loan category	September 30, 2019 December 31, 2018 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 7,470 29.2 % $ 7,719 32.6 % Real estate: Commercial real estate 7,788 30.5 % 6,730 28.4 % Construction and development 4,825 18.9 % 4,298 18.1 % 1-4 family residential 2,338 9.1 % 2,281 9.6 % Multi-family residential 1,829 7.1 % 1,511 6.4 % Consumer 558 2.2 % 387 1.6 % Agricultural 82 0.3 % 62 0.3 % Other 686 2.7 % 705 3.0 % Total allowance for loan losses $ 25,576 100.0 % $ 23,693 100.0 %
Loans by risk grades and loan class	Special (Dollars in thousands) Pass Mention Substandard Total Loans September 30, 2019 Commercial and industrial $ 507,785 $ 4,160 $ 11,886 $ 523,831 Real estate: Commercial real estate 852,731 20,879 1,719 875,329 Construction and development 558,148 14,128 — 572,276 1-4 family residential 281,463 599 5,372 287,434 Multi-family residential 298,396 — — 298,396 Consumer 37,724 — 251 37,975 Agriculture 10,756 50 30 10,836 Other 70,164 — 6,696 76,860 Total loans $ 2,617,167 $ 39,816 $ 25,954 $ 2,682,937 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 September 30, 2019 Commercial and industrial $ 901 $ 343 $ 454 $ 797 $ 373 $ 2,966 Real estate: Commercial real estate 1,527 945 574 1,519 22 2,416 1-4 family residential 4,158 2,227 1,786 4,013 33 4,108 Consumer 221 — 221 221 142 100 Other 6,693 5,451 1,241 6,692 22 6,815 Total loans $ 13,500 $ 8,966 $ 4,276 $ 13,242 $ 592 $ 16,405 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	September 30, 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 $ 797 $ 523,034 $ 523,831 $ 4,277 $ 515,502 $ 519,779 Real estate: Commercial real estate 1,519 873,810 875,329 3,970 791,763 795,733 Construction and development — 572,276 572,276 — 515,533 515,533 1-4 family residential 4,013 283,421 287,434 4,436 277,575 282,011 Multi-family residential — 298,396 298,396 — 221,194 221,194 Consumer 221 37,754 37,975 — 39,421 39,421 Agriculture — 10,836 10,836 — 11,076 11,076 Other 6,692 70,168 76,860 6,813 61,569 68,382 Total $ 13,242 $ 2,669,695 $ 2,682,937 $ 19,496 $ 2,433,633 $ 2,453,129

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2019
PREMISES AND EQUIPMENT
Schedule of premises and equipment	September 30, December 31, (Dollars in thousands) 2019 2018 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 52,875 52,188 Furniture and equipment 15,787 15,426 Vehicles 203 232 Construction in progress 980 177 83,311 81,489 Less accumulated depreciation (32,128) (29,867) Premises and equipment, net $ 51,183 $ 51,622

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets	Weighted Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets September 30, 2019 Core deposits 4.5 years $ 13,750 $ (12,883) $ 867 Customer relationships 9.3 years 6,629 (2,541) 4,088 Servicing assets 12.8 years 320 (169) 151 Total other intangible assets, net $ 20,699 $ (15,593) $ 5,106 December 31, 2018 Core deposits 5.2 years $ 13,750 $ (12,561) $ 1,189 Customer relationships 10.0 years 6,629 (2,209) 4,420 Servicing assets 14.4 years 311 (145) 166 Total other intangible assets, net $ 20,690 $ (14,915) $ 5,775
Schedule of changes in related servicing assets	Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of year $ 166 $ 209 Increase from loan sales 39 38 Decrease from serviced loans paid off or foreclosed (30) (22) Amortization (24) (25) Balance at end of period $ 151 $ 200

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	9 Months Ended
	Sep. 30, 2019
BANK OWNED LIFE INSURANCE
Schedule of change in cash surrender value	September 30, December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 71,525 $ 68,010 Purchases — 1,700 Redemptions (4,655) — Net change in cash surrender value 4,581 1,815 Balance at end of period $ 71,451 $ 71,525

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2019
DEPOSITS
Schedule of deposits	September 30, December 31, (Dollars in thousands) 2019 2018 Interest-bearing demand accounts $ 337,746 $ 387,457 Money market accounts 739,436 737,770 Saving accounts 91,413 96,962 Certificates and other time deposits, $100,000 or greater 198,561 189,007 Certificates and other time deposits, less than $100,000 180,451 172,028 Total interest-bearing deposits 1,547,607 1,583,224 Noninterest-bearing deposits 1,196,720 1,183,058 Total deposits $ 2,744,327 $ 2,766,282

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2019
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	September 30, December 31, (Dollars in thousands) 2019 2018 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,146 $ 1,088 Level 2 inputs: Debt securities available for sale State and municipal securities 53,094 57,691 U.S. Agency Securities: Debt securities — 16,881 Collateralized mortgage obligations 61,339 65,414 Mortgage-backed securities 112,453 88,859 Interest rate swaps 3,758 962 Total fair value of financial assets $ 231,790 $ 230,895 Fair value of financial liabilities: Level 2 inputs: interest rate swaps $ 3,758 $ 962 Total fair value of financial liabilities $ 3,758 $ 962
Summary of certain assets measured on a non‑recurring basis	September 30, 2019 December 31, 2018 Recorded Recorded Investment Related Investment Related (Dollars in thousands) with Allowance Allowance Net with Allowance Allowance Net Level 3 inputs Impaired loans: Commercial and industrial $ 454 $ 373 $ 81 $ 635 $ 525 $ 110 Commercial real estate 574 22 552 596 44 552 1-4 family residential 1,786 33 1,753 1,824 89 1,735 Consumer 221 142 79 — — — Other 1,241 22 1,219 1,241 100 1,141 Total impaired loans $ 4,276 $ 592 $ 3,684 $ 4,296 $ 758 $ 3,538
Summary of fair value of repossessed real estate and other foreclosed assets	December 31, (Dollars in thousands) 2018 Foreclosed assets remeasured at initial recognition: Carrying value of foreclosed assets prior to measurement $ 13 Charge-offs recognized in the allowance for loan losses (1) Fair value $ 12
Summary of fair market values of all financial instruments	September 30, 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 $ 56,416 $ 56,416 $ 54,450 $ 54,450 Interest bearing deposits in banks 232,983 232,983 327,620 327,620 Level 2 inputs: Debt securities held to maturity 31 29 32 31 Bank-owned life insurance 71,451 71,451 71,525 71,525 Accrued interest receivable 8,989 8,989 8,227 8,227 Servicing asset 151 151 166 166 Level 3 inputs: Loans, including held for sale, net 2,681,853 2,651,248 2,432,753 2,423,130 Other investments 19,220 19,220 13,026 13,026 Total financial assets $ 3,071,094 $ 3,040,487 $ 2,907,799 $ 2,898,175 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,196,720 $ 1,196,720 $ 1,183,058 $ 1,183,058 Level 2 inputs: Interest-bearing deposits 1,540,705 1,547,607 1,522,366 1,583,224 Repurchase agreements 1,206 1,208 2,498 2,498 Federal Home Loan Bank advances 118,782 120,000 — — Junior subordinated debt — — 1,571 1,571 Accrued interest payable 918 918 653 653 Total financial liabilities $ 2,858,331 $ 2,866,453 $ 2,710,146 $ 2,771,004

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of the derivative instruments outstanding	Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) September 30, 2019 Interest rate swaps with customers Other Assets $ 74,531 $ 3,758 4.00% - 5.89% LIBOR 1M + 2.50% - 3.25% 6.75 Interest rate swaps with financial institution Other Liabilities 74,531 (3,758) 4.00% - 5.89% LIBOR 1M + 2.50% - 3.25% 6.75 Total derivatives $ 149,062 $ — Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) 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 Interest rate swaps with financial institution Other Assets 32,923 793 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 Interest rate swaps with customers Other Liabilities 32,923 (793) 4.00% - 5.37% LIBOR 1M + 2.50% - 3.25% 7.78 Interest rate swaps with financial institution Other Liabilities 8,901 (169) 5.45% - 7.25% LIBOR 1M + 2.50% - 3.20% 6.22 Total derivatives $ 83,648 $ —

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
OPERATING LEASES
Summary of lease costs	Nine Months Ended (Dollars in thousands) September 30, 2019 Operating lease cost $ 1,384 Short-term lease cost 54 Sublease income (128) Total lease cost $ 1,310
Summary of maturity analysis of operating lease liabilities	(Dollars in thousands) September 30, 2019 2019 $ 498 2020 2,042 2021 2,108 2022 2,196 2023 2,105 Thereafter 10,954 Total undiscounted lease liability 19,903 Less: Discount on cash flows (3,854) Lease signed, but not yet commenced (536) Total operating lease liability $ 15,513

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Summary of the various financial instruments whose contract amounts represent credit risk	September 30, December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit, variable interest rate $ 662,364 $ 726,277 Commitments to extend credit, fixed interest rate 121,527 105,359 $ 783,891 $ 831,636 Standby letters of credit $ 26,712 $ 31,729

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2019
REVENUE RECOGNITION
Revenue Recognition	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Deposit account service charges $ 1,681 $ 1,597 $ 4,967 $ 4,572 Net gain on sale of assets 190 152 347 492 Card interchange fees 908 922 2,713 2,820 Other noninterest income 906 412 2,303 1,150

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2019
STOCK-BASED COMPENSATION
Schedule of shares of stock options exercised and restricted stock vested, shares withheld for taxes and shares issued	Three Months Ended September 30, 2019 Exercised/Vested Shares Withheld Shares Issued Stock Options 400 (280) 120 Restricted Stock — — — Nine Months Ended September 30, 2019 Exercised/Vested Shares Withheld Shares Issued Stock Options 15,244 (2,318) 12,926 Restricted Stock 3,100 (658) 2,442
Stock option plan
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Nine Months Ended September 30, 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 (15,244) 12.74 (25,400) 9.85 Forfeited/expired (4,000) 17.73 — — Outstanding at end of period 213,078 16.92 234,922 16.67
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	September 30, 2019 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 148,879 64,199 213,078 Weighted-average exercise price per share $ 15.62 $ 19.94 $ 16.92 Aggregate intrinsic value (in thousands) $ 1,871 $ 530 $ 2,401 Weighted-average remaining contractual term (years) 5.1 7.2 5.7
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 December 31, 2017 212,580 $ 26.71 — $ — Granted 18,500 29.71 — — Vested — — — — Forfeited — — — — Outstanding at September 30, 2018 231,080 $ 26.95 — $ — Outstanding at December 31, 2018 181,773 27.05 24,000 34.46 Granted 36,992 32.18 — — Vested (3,100) 29.69 — — Forfeited (3,220) 29.99 — — Outstanding at September 30, 2019 212,445 $ 27.86 24,000 $ 34.46
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	September 30, 2019 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 212,445 24,000 Weighted-average grant date fair value per share $ 27.86 $ 34.46 Aggregate fair value (in thousands) $ 5,923 $ 677 Weighted-average remaining vesting period (years) 2.9 2.4

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019 Common Equity Tier I to Risk-Weighted Assets: Consolidated $ 437,738 $ 131,426 $ 204,440 N/A N/A Bank Only $ 396,161 $ 131,415 $ 204,424 $ 189,822 Tier I Capital to Risk-Weighted Assets: Consolidated $ 437,738 $ 175,234 $ 248,248 N/A N/A Bank Only $ 396,161 $ 175,220 $ 248,229 $ 233,627 Total Capital to Risk-Weighted Assets: Consolidated $ 463,692 $ 233,646 $ 306,660 N/A N/A Bank Only $ 422,115 $ 233,627 $ 306,635 $ 292,034 Tier 1 Leverage Capital to Average Assets: Consolidated $ 437,738 $ 132,358 $ 132,358 N/A N/A Bank Only $ 396,161 $ 132,344 $ 132,344 $ 165,430 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)	9 Months Ended
	Sep. 30, 2019
INCOME TAXES
Schedule of provision for income tax expense and effective tax rates	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Provision for income tax expense $ 2,990 $ 3,207 $ 8,666 $ 7,984 Effective tax rate

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income for common shareholders $ 13,076 $ 13,023 $ 37,881 $ 33,177 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,923 24,859 24,918 24,850 Dilutive effect of outstanding stock options and unvested restricted stock awards 123 201 135 157 Diluted weighted-average shares outstanding 25,046 25,060 25,053 25,007 Earnings per share: Basic $ 0.52 $ 0.52 $ 1.52 $ 1.34 Diluted $ 0.52 $ 0.52 $ 1.51 $ 1.33

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	9 Months Ended
	Sep. 30, 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 - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019	Jul. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Share repurchase program, authorized amount		$ 40
Stock repurchase program, expiration date	Sep. 30, 2020
Number of shares repurchased	100
Shares repurchased and retired, price per share	$ 27.98

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Recently Adopted (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019	Sep. 30, 2019
Accounting Standards Recently Adopted
Accounting standards recently adopted			false
Practical Expedients	true
Use of hindsight	true
Operating lease right-to-use asset			$ 12,864
Operating lease liabilities			$ 15,513
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_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Due from Banks (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve required at federal reserve bank	$ 18.2	$ 18.5
Cash collateral used in interest rate swap transactions	$ 3.8	$ 1.6

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash Flow Reporting (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Supplemental disclosures of cash flow information:
Cash paid for taxes	$ 8,823	$ 7,827
Cash paid for interest	12,349	7,243
Supplemental disclosures of non-cash flow information:
Dividends accrued	1,317	44
Operating lease right-to-use asset obtained in exchange for lease liabilities	14,046
Repossessed real estate and other assets	$ 77	$ 312

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt securities available for sale:
Amortized cost	$ 224,913	$ 233,699
Fair Value	228,032	229,933
Debt securities held to maturity:
Amortized cost	29	31
Fair Value	31	32
Securities Available for Sale
Debt securities available for sale:
Amortized cost	224,913	233,699
Gross Unrealized Gains	3,536	673
Gross Unrealized Losses	(417)	(4,439)
Fair Value	228,032	229,933
Securities Available for Sale | State and municipal securities
Debt securities available for sale:
Amortized cost	51,240	57,972
Gross Unrealized Gains	1,862	345
Gross Unrealized Losses	(8)	(626)
Fair Value	53,094	57,691
Securities Available for Sale | Debt securities
Debt securities available for sale:
Amortized cost		17,315
Gross Unrealized Losses		(434)
Fair Value		16,881
Securities Available for Sale | Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	60,974	66,438
Gross Unrealized Gains	471	98
Gross Unrealized Losses	(106)	(1,122)
Fair Value	61,339	65,414
Securities Available for Sale | Mortgage-backed securities
Debt securities available for sale:
Amortized cost	111,550	90,845
Gross Unrealized Gains	1,203	230
Gross Unrealized Losses	(300)	(2,216)
Fair Value	112,453	88,859
Securities Available for Sale | Equity securities
Debt securities available for sale:
Amortized cost	1,149	1,129
Gross Unrealized Losses	(3)	(41)
Fair Value	1,146	1,088
Securities Held to Maturity | Mortgage-backed securities
Debt securities held to maturity:
Amortized cost	29	31
Gross Unrealized Gains	2	1
Fair Value	$ 31	$ 32

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 2,536	$ 3,224
Amortized cost, 1 year through 5 years	3,287	22,784
Amortized cost, 5 years through 10 years	13,861	13,127
Amortized cost, After 10 years	205,229	194,564
Available-for-sale Securities, Amortized Cost Basis, Total	224,913	233,699
Available for Sale - Fair Value
Estimated fair value, 1 year or less	2,542	3,188
Estimated fair value, 1 year through 5 years	3,354	22,370
Estimated fair value, 5 years through 10 years	14,205	13,062
Estimated fair value, After 10 years	207,931	191,313
Available-for-sale Securities, Total	228,032	229,933
Held to Maturity - Amortized Cost
Amortized cost, After 10 years	29	31
Held-to-maturity Securities, Total	29	31
Held to Maturity - Fair Value
Estimated fair value, After 10 years	31	32
Held-to-maturity Securities, Fair Value, Total	31	32
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	224,913	233,699
Available for Sale - Fair Value
Available-for-sale Securities, Total	$ 228,032	$ 229,933

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)item
SECURITIES.
Securities sold during the year	$ 20,400	$ 6,600
Carrying value of securities pledged	$ 58,100		$ 49,900
Securities held in a gross unrealized loss position | item	33		100
Impairment loss on securities	$ 0	$ 0

SECURITIES - Securities with gr

SECURITIES - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment securities
Fair Value - Less Than Twelve Months	$ 29,503	$ 51,491
Gross Unrealized Losses - Less Than Twelve Months	(86)	(773)
Fair Value - Twelve Months or More	37,018	116,894
Gross Unrealized Losses - Twelve Months or More	(331)	(3,666)
State and municipal securities
Investment securities
Fair Value - Less Than Twelve Months	2,043	20,892
Gross Unrealized Losses - Less Than Twelve Months	(7)	(324)
Fair Value - Twelve Months or More	106	6,584
Gross Unrealized Losses - Twelve Months or More	(1)	(302)
Debt securities
Investment securities
Fair Value - Twelve Months or More		16,882
Gross Unrealized Losses - Twelve Months or More		(434)
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months	10,514	8,854
Gross Unrealized Losses - Less Than Twelve Months	(39)	(81)
Fair Value - Twelve Months or More	8,580	46,157
Gross Unrealized Losses - Twelve Months or More	(67)	(1,041)
Mortgage-backed securities
Investment securities
Fair Value - Less Than Twelve Months	16,946	21,745
Gross Unrealized Losses - Less Than Twelve Months	(40)	(368)
Fair Value - Twelve Months or More	27,186	46,183
Gross Unrealized Losses - Twelve Months or More	(260)	(1,848)
Equity securities
Investment securities
Fair Value - Twelve Months or More	1,146	1,088
Gross Unrealized Losses - Twelve Months or More	$ (3)	$ (41)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)item$ / shares	Dec. 31, 2018USD ($)
Equity investments
Equity investments, total	$ 19,220	$ 13,026
Number of private investment funds | item	2
Unfunded commitments	$ 2,400	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	$ 6,784	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	$ 3,024	$ 2,364

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Loans
Investment	$ 2,682,937	$ 2,453,129
Percentage of loan	100.00%	100.00%
Less allowance for loan loss	$ (25,576)	$ (23,693)	$ (24,486)	$ (24,778)
Less deferred loan fees and unearned discounts	(6,113)	(6,306)
Loans, net	2,651,248	2,423,130
Accrued interest receivable	8,100	6,800
Commercial and industrial
Loans
Investment	$ 523,831	$ 519,779
Percentage of loan	19.50%	21.20%
Less allowance for loan loss	$ (7,470)	$ (7,719)	(8,763)	(7,257)
Commercial real estate
Loans
Investment	$ 875,329	$ 795,733
Percentage of loan	32.60%	32.40%
Less allowance for loan loss	$ (7,788)	$ (6,730)	(6,913)	(10,375)
Construction and development
Loans
Investment	$ 572,276	$ 515,533
Percentage of loan	21.40%	21.00%
Less allowance for loan loss	$ (4,825)	$ (4,298)	(3,606)	(3,482)
1-4 family residential
Loans
Investment	$ 287,434	$ 282,011
Percentage of loan	10.70%	11.50%
Less allowance for loan loss	$ (2,338)	$ (2,281)	(2,454)	(1,326)
Multi‑family residential
Loans
Investment	$ 298,396	$ 221,194
Percentage of loan	11.10%	9.00%
Less allowance for loan loss	$ (1,829)	$ (1,511)	(1,630)	(1,419)
Consumer
Loans
Investment	$ 37,975	$ 39,421
Percentage of loan	1.40%	1.60%
Less allowance for loan loss	$ (558)	$ (387)	(394)	(566)
Agriculture
Loans
Investment	$ 10,836	$ 11,076
Percentage of loan	0.40%	0.50%
Less allowance for loan loss	$ (82)	$ (62)	(71)	(68)
Other
Loans
Investment	$ 76,860	$ 68,382
Percentage of loan	2.90%	2.80%
Less allowance for loan loss	$ (686)	$ (705)	$ (655)	$ (285)

LOANS - Loan participation and

LOANS - Loan participation and Loan Guarantees (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Loans
Participations purchased during the period	$ 1,756	$ 31,453
Participations sold during the period	30,330	40,871
SBA loans that were sold with servicing retained	2,000	2,000
Commercial and industrial
Loans
Participations purchased during the period		7,000
Commercial real estate
Loans
Participations purchased during the period	1,756	24,453
Participations sold during the period	$ 30,330	35,000
Construction and development
Loans
Participations sold during the period		$ 5,871

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Nonaccrual loans
Nonaccrual loans	$ 1,142	$ 3,490
Commercial and industrial
Nonaccrual loans
Nonaccrual loans	354	1,317
Commercial real estate
Nonaccrual loans
Nonaccrual loans	159	1,517
1-4 family residential
Nonaccrual loans
Nonaccrual loans	$ 629	$ 656

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Aging analysis
Total past due	$ 2,272,000		$ 8,108,000
Total current loans	2,680,665,000		2,445,021,000
Recorded Investment with Allowance	2,682,937,000		2,453,129,000
Interest income that would have been earned under the original terms of the nonaccrual loans	59,000	$ 220,000
30 to 59 days past due
Aging analysis
Total past due	2,143,000		1,028,000
60 to 89 days past due
Aging analysis
Total past due	47,000		6,285,000
90 days or greater past due
Aging analysis
Total past due	82,000		795,000
Commercial and industrial
Aging analysis
Total past due	144,000		1,213,000
Total current loans	523,687,000		518,566,000
Recorded Investment with Allowance	523,831,000		519,779,000
Commercial and industrial | 30 to 59 days past due
Aging analysis
Total past due	97,000		178,000
Commercial and industrial | 60 to 89 days past due
Aging analysis
Total past due	47,000		881,000
Commercial and industrial | 90 days or greater past due
Aging analysis
Total past due			154,000
Commercial real estate
Aging analysis
Total past due	1,935,000		1,762,000
Total current loans	873,394,000		793,971,000
Recorded Investment with Allowance	875,329,000		795,733,000
Commercial real estate | 30 to 59 days past due
Aging analysis
Total past due	1,885,000		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	50,000		605,000
Construction and development
Aging analysis
Total past due			4,563,000
Total current loans	572,276,000		510,970,000
Recorded Investment with Allowance	572,276,000		515,533,000
Construction and development | 30 to 59 days past due
Aging analysis
Total past due			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	174,000		542,000
Total current loans	287,260,000		281,469,000
Recorded Investment with Allowance	287,434,000		282,011,000
1-4 family residential | 30 to 59 days past due
Aging analysis
Total past due	142,000		395,000
1-4 family residential | 60 to 89 days past due
Aging analysis
Total past due			111,000
1-4 family residential | 90 days or greater past due
Aging analysis
Total past due	32,000		36,000
Multi‑family residential
Aging analysis
Total current loans	298,396,000		221,194,000
Recorded Investment with Allowance	298,396,000		221,194,000
Consumer
Aging analysis
Total past due	19,000		28,000
Total current loans	37,956,000		39,393,000
Recorded Investment with Allowance	37,975,000		39,421,000
Consumer | 30 to 59 days past due
Aging analysis
Total past due	19,000		28,000
Agriculture
Aging analysis
Total current loans	10,836,000		11,076,000
Recorded Investment with Allowance	10,836,000		11,076,000
Other
Aging analysis
Total current loans	76,860,000		68,382,000
Recorded Investment with Allowance	$ 76,860,000		$ 68,382,000

LOAN PERFORMANCE - Restructured

LOAN PERFORMANCE - Restructured loans (Details)	9 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)loan	Dec. 31, 2018USD ($)
Restructured loans
Number of loans | loan	3	8
Pre‑modification outstanding Recorded Investment	$ 274,000	$ 3,151,000
Recorded investment in troubled debt restructurings	8,900,000		$ 11,400,000
Restructured loans that are nonaccrual status	368,000		1,800,000
Restructured loans accruing interest	$ 8,500,000		9,600,000
Number of restructured loans for which there was a payment default | loan	0
Restructured Payments
Restructured loans
Post‑modification recorded investment		3,105,000
Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 278,000	$ 46,000
Commercial and industrial
Restructured loans
Number of loans | loan	2	4
Pre‑modification outstanding Recorded Investment	$ 163,000	$ 967,000
Commercial and industrial | Restructured Payments
Restructured loans
Post‑modification recorded investment		921,000
Commercial and industrial | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 163,000	$ 46,000
Commercial real estate
Restructured loans
Number of loans | loan		4
Pre‑modification outstanding Recorded Investment		$ 2,184,000
Commercial real estate | Restructured Payments
Restructured loans
Post‑modification recorded investment		$ 2,184,000
1-4 family residential
Restructured loans
Number of loans | loan	1
Pre‑modification outstanding Recorded Investment	$ 111,000
1-4 family residential | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 115,000
Other
Restructured loans
Commitment to loan additional funds			$ 2,100,000

ALLOWANCE FOR LOAN LOSSES - Seg

ALLOWANCE FOR LOAN LOSSES - Segregated by loan class (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Loan losses segregated by loan class
Beginning balance	$ 23,693,000	$ 24,778,000
Provision (recapture) for loan loss	2,533,000	413,000
Charge-offs	(1,065,000)	(1,152,000)
Recoveries	415,000	447,000
Net (charge-offs) recoveries	(650,000)	(705,000)
Ending balance	25,576,000	24,486,000
Specific reserve
Loan losses segregated by loan class
Ending balance	592,000	785,000
General reserve
Loan losses segregated by loan class
Ending balance	24,984,000	23,701,000
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	7,719,000	7,257,000
Provision (recapture) for loan loss	309,000	2,218,000
Charge-offs	(869,000)	(1,136,000)
Recoveries	311,000	424,000
Net (charge-offs) recoveries	(558,000)	(712,000)
Ending balance	7,470,000	8,763,000
Commercial and industrial | Specific reserve
Loan losses segregated by loan class
Ending balance	373,000	542,000
Commercial and industrial | General reserve
Loan losses segregated by loan class
Ending balance	7,097,000	8,221,000
Commercial real estate
Loan losses segregated by loan class
Beginning balance	6,730,000	10,375,000
Provision (recapture) for loan loss	1,021,000	(3,467,000)
Charge-offs	(44,000)	(9,000)
Recoveries	81,000	14,000
Net (charge-offs) recoveries	37,000	5,000
Ending balance	7,788,000	6,913,000
Commercial real estate | Specific reserve
Loan losses segregated by loan class
Ending balance	22,000	1,000
Commercial real estate | General reserve
Loan losses segregated by loan class
Ending balance	7,766,000	6,912,000
Construction and development
Loan losses segregated by loan class
Beginning balance	4,298,000	3,482,000
Provision (recapture) for loan loss	527,000	124,000
Ending balance	4,825,000	3,606,000
Construction and development | General reserve
Loan losses segregated by loan class
Ending balance	4,825,000	3,606,000
1-4 family residential
Loan losses segregated by loan class
Beginning balance	2,281,000	1,326,000
Provision (recapture) for loan loss	66,000	1,126,000
Charge-offs	(12,000)	(3,000)
Recoveries	3,000	5,000
Net (charge-offs) recoveries	(9,000)	2,000
Ending balance	2,338,000	2,454,000
1-4 family residential | Specific reserve
Loan losses segregated by loan class
Ending balance	33,000	115,000
1-4 family residential | General reserve
Loan losses segregated by loan class
Ending balance	2,305,000	2,339,000
Multi‑family residential
Loan losses segregated by loan class
Beginning balance	1,511,000	1,419,000
Provision (recapture) for loan loss	318,000	211,000
Ending balance	1,829,000	1,630,000
Multi‑family residential | General reserve
Loan losses segregated by loan class
Ending balance	1,829,000	1,630,000
Consumer
Loan losses segregated by loan class
Beginning balance	387,000	566,000
Provision (recapture) for loan loss	244,000	(173,000)
Charge-offs	(88,000)	(1,000)
Recoveries	15,000	2,000
Net (charge-offs) recoveries	(73,000)	1,000
Ending balance	558,000	394,000
Consumer | Specific reserve
Loan losses segregated by loan class
Ending balance	142,000
Consumer | General reserve
Loan losses segregated by loan class
Ending balance	416,000	394,000
Agriculture
Loan losses segregated by loan class
Beginning balance	62,000	68,000
Provision (recapture) for loan loss	20,000	3,000
Ending balance	82,000	71,000
Agriculture | General reserve
Loan losses segregated by loan class
Ending balance	82,000	71,000
Other
Loan losses segregated by loan class
Beginning balance	705,000	285,000
Provision (recapture) for loan loss	28,000	371,000
Charge-offs	(52,000)	(3,000)
Recoveries	5,000	2,000
Net (charge-offs) recoveries	(47,000)	(1,000)
Ending balance	686,000	655,000
Other | Specific reserve
Loan losses segregated by loan class
Ending balance	22,000	127,000
Other | General reserve
Loan losses segregated by loan class
Ending balance	664,000	$ 528,000
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	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Loan Category
Allowance of loan losses	$ 25,576	$ 23,693	$ 24,486	$ 24,778
Allowance for loan losses (as a percent)	100.00%	100.00%
Commercial and industrial
Loan Category
Allowance of loan losses	$ 7,470	$ 7,719	8,763	7,257
Allowance for loan losses (as a percent)	29.20%	32.60%
Commercial real estate
Loan Category
Allowance of loan losses	$ 7,788	$ 6,730	6,913	10,375
Allowance for loan losses (as a percent)	30.50%	28.40%
Construction and development
Loan Category
Allowance of loan losses	$ 4,825	$ 4,298	3,606	3,482
Allowance for loan losses (as a percent)	18.90%	18.10%
1-4 family residential
Loan Category
Allowance of loan losses	$ 2,338	$ 2,281	2,454	1,326
Allowance for loan losses (as a percent)	9.10%	9.60%
Multi‑family residential
Loan Category
Allowance of loan losses	$ 1,829	$ 1,511	1,630	1,419
Allowance for loan losses (as a percent)	7.10%	6.40%
Consumer
Loan Category
Allowance of loan losses	$ 558	$ 387	394	566
Allowance for loan losses (as a percent)	2.20%	1.60%
Agriculture
Loan Category
Allowance of loan losses	$ 82	$ 62	71	68
Allowance for loan losses (as a percent)	0.30%	0.30%
Other
Loan Category
Allowance of loan losses	$ 686	$ 705	$ 655	$ 285
Allowance for loan losses (as a percent)	2.70%	3.00%

ALLOWANCE FOR LOAN LOSSES - Ris

ALLOWANCE FOR LOAN LOSSES - Risk Grading (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Risk Grading
with Allowance	$ 2,682,937	$ 2,453,129
Pass
Risk Grading
with Allowance	2,617,167	2,404,521
Special Mention
Risk Grading
with Allowance	39,816	22,763
Substandard
Risk Grading
with Allowance	25,954	25,845
Loss or Doubtful
Risk Grading
with Allowance	0	0
Commercial and industrial
Risk Grading
with Allowance	523,831	519,779
Commercial and industrial | Pass
Risk Grading
with Allowance	507,785	504,425
Commercial and industrial | Special Mention
Risk Grading
with Allowance	4,160	5,768
Commercial and industrial | Substandard
Risk Grading
with Allowance	11,886	9,586
Commercial real estate
Risk Grading
with Allowance	875,329	795,733
Commercial real estate | Pass
Risk Grading
with Allowance	852,731	781,035
Commercial real estate | Special Mention
Risk Grading
with Allowance	20,879	10,370
Commercial real estate | Substandard
Risk Grading
with Allowance	1,719	4,328
Construction and development
Risk Grading
with Allowance	572,276	515,533
Construction and development | Pass
Risk Grading
with Allowance	558,148	511,329
Construction and development | Special Mention
Risk Grading
with Allowance	14,128	4,204
1-4 family residential
Risk Grading
with Allowance	287,434	282,011
1-4 family residential | Pass
Risk Grading
with Allowance	281,463	274,781
1-4 family residential | Special Mention
Risk Grading
with Allowance	599	2,175
1-4 family residential | Substandard
Risk Grading
with Allowance	5,372	5,055
Multi‑family residential
Risk Grading
with Allowance	298,396	221,194
Multi‑family residential | Pass
Risk Grading
with Allowance	298,396	221,194
Consumer
Risk Grading
with Allowance	37,975	39,421
Consumer | Pass
Risk Grading
with Allowance	37,724	39,140
Consumer | Special Mention
Risk Grading
with Allowance		246
Consumer | Substandard
Risk Grading
with Allowance	251	35
Agriculture
Risk Grading
with Allowance	10,836	11,076
Agriculture | Pass
Risk Grading
with Allowance	10,756	11,048
Agriculture | Special Mention
Risk Grading
with Allowance	50
Agriculture | Substandard
Risk Grading
with Allowance	30	28
Other
Risk Grading
with Allowance	76,860	68,382
Other | Pass
Risk Grading
with Allowance	70,164	61,569
Other | Substandard
Risk Grading
with Allowance	$ 6,696	$ 6,813

ALLOWANCE FOR LOAN LOSSES - Loa

ALLOWANCE FOR LOAN LOSSES - Loan Impairment Assessment (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Loan Impairment Assessment
Unpaid contractual principal balance	$ 13,500,000		$ 19,871,000
Recorded investment with no allowance	8,966,000		15,200,000
Recorded investment with allowance	4,276,000		4,296,000
Total recorded investment	13,242,000		19,496,000
Related allowance	592,000		758,000
Average recorded investment year‑to‑date	16,405,000		24,490,000
Interest income recognized on impaired loans	517,000	$ 808,000
Commercial and industrial
Loan Impairment Assessment
Unpaid contractual principal balance	901,000		4,378,000
Recorded investment with no allowance	343,000		3,642,000
Recorded investment with allowance	454,000		635,000
Total recorded investment	797,000		4,277,000
Related allowance	373,000		525,000
Average recorded investment year‑to‑date	2,966,000		5,771,000
Commercial real estate
Loan Impairment Assessment
Unpaid contractual principal balance	1,527,000		4,128,000
Recorded investment with no allowance	945,000		3,374,000
Recorded investment with allowance	574,000		596,000
Total recorded investment	1,519,000		3,970,000
Related allowance	22,000		44,000
Average recorded investment year‑to‑date	2,416,000		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	4,158,000		4,551,000
Recorded investment with no allowance	2,227,000		2,612,000
Recorded investment with allowance	1,786,000		1,824,000
Total recorded investment	4,013,000		4,436,000
Related allowance	33,000		89,000
Average recorded investment year‑to‑date	4,108,000		4,597,000
Consumer
Loan Impairment Assessment
Unpaid contractual principal balance	221,000
Recorded investment with allowance	221,000
Total recorded investment	221,000
Related allowance	142,000
Average recorded investment year‑to‑date	100,000		7,000
Other
Loan Impairment Assessment
Unpaid contractual principal balance	6,693,000		6,814,000
Recorded investment with no allowance	5,451,000		5,572,000
Recorded investment with allowance	1,241,000		1,241,000
Total recorded investment	6,692,000		6,813,000
Related allowance	22,000		100,000
Average recorded investment year‑to‑date	$ 6,815,000		$ 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 ($)	Sep. 30, 2019	Dec. 31, 2018
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	$ 13,242,000	$ 19,496,000
Loans collectively evaluated for impairment	2,669,695,000	2,433,633,000
Total	2,682,937,000	2,453,129,000
Allowance allocated to specific reserves for loans individually evaluated for impairment	592,000	758,000
Commercial and industrial
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	797,000	4,277,000
Loans collectively evaluated for impairment	523,034,000	515,502,000
Total	523,831,000	519,779,000
Commercial real estate
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	1,519,000	3,970,000
Loans collectively evaluated for impairment	873,810,000	791,763,000
Total	875,329,000	795,733,000
Construction and development
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	572,276,000	515,533,000
Total	572,276,000	515,533,000
1-4 family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	4,013,000	4,436,000
Loans collectively evaluated for impairment	283,421,000	277,575,000
Total	287,434,000	282,011,000
Multi‑family residential
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	298,396,000	221,194,000
Total	298,396,000	221,194,000
Consumer
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	221,000
Loans collectively evaluated for impairment	37,754,000	39,421,000
Total	37,975,000	39,421,000
Agriculture
Allowance for loan losses on the basis of Company's impairment methodology
Loans collectively evaluated for impairment	10,836,000	11,076,000
Total	10,836,000	11,076,000
Other
Allowance for loan losses on the basis of Company's impairment methodology
Loans individually evaluated for impairment	6,692,000	6,813,000
Loans collectively evaluated for impairment	70,168,000	61,569,000
Total	$ 76,860,000	$ 68,382,000

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
PREMISES AND EQUIPMENT
Premises and equipment	$ 83,311,000		$ 81,489,000
Less accumulated depreciation	(32,128,000)		(29,867,000)
Premises and equipment, net	51,183,000		51,622,000
Depreciation expense	2,408,000	$ 2,483,000
Net gains and losses on sale of assets	32,000
Property, Plant and Equipment, Disposals		$ 0
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466,000		13,466,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	52,875,000		52,188,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	15,787,000		15,426,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	203,000		232,000
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 980,000		$ 177,000

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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	20,699	20,690
Accumulated Amortization	(15,593)	(14,915)
Net Intangible Assets	$ 5,106	$ 5,775
Core deposits
Other Intangible Assets, net
Weighted Amortization Period	4 years 6 months	5 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(12,883)	(12,561)
Net Intangible Assets	$ 867	$ 1,189
Customer relationships
Other Intangible Assets, net
Weighted Amortization Period	9 years 3 months 18 days	10 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(2,541)	(2,209)
Net Intangible Assets	$ 4,088	$ 4,420
Servicing assets
Other Intangible Assets, net
Weighted Amortization Period	12 years 9 months 18 days	14 years 4 months 24 days
Gross Intangible Assets	$ 320	$ 311
Accumulated Amortization	(169)	(145)
Net Intangible Assets	$ 151	$ 166

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Servicing Assets
Balance at beginning of year	$ 166	$ 209
Increase from loan sales	39	38
Decrease from serviced loans paid off or foreclosed	(30)	(22)
Amortization	(24)	(25)
Balance at end of period	$ 151	$ 200

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
BANK OWNED LIFE INSURANCE
Proceeds from bank-owned life insurance policy	$ 4,700
Gain from bank-owned life insurance	3,300
Balance at beginning of year	71,525	$ 68,010
Purchases		1,700
Redemptions	(4,655)
Net change in cash surrender value	4,581	1,815
Balance at end of year	$ 71,451	$ 71,525

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
DEPOSITS
Interest-bearing demand accounts	$ 337,746	$ 387,457
Money market accounts	739,436	737,770
Saving accounts	91,413	96,962
Certificates and other time deposits, $100,000 or greater	198,561	189,007
Certificates and other time deposits, less than $100,000	180,451	172,028
Total interest-bearing deposits	1,547,607	1,583,224
Noninterest-bearing deposits	1,196,720	1,183,058
Total deposits	$ 2,744,327	$ 2,766,282

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 57,300,000	$ 51,500,000
Brokered deposits	117,200,000	104,500,000
Accrued interest payable for deposits	$ 838,000	$ 594,000
Major concentrations of deposits from any single or related groups of depositors	0	0

LINES OF CREDIT (Details)

LINES OF CREDIT (Details) $ in Millions	Dec. 13, 2018USD ($)	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)item
NOTES PAYABLE AND LINES OF CREDIT
Capital to risk based assets ratio		15.88%		15.63%
FHLB advances
NOTES PAYABLE AND LINES OF CREDIT
Interest rate		2.42%	2.18%
Federal funds line of credit
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
Line of Credit | FHLB advances
NOTES PAYABLE AND LINES OF CREDIT
Outstanding borrowings		$ 120		$ 0
Total borrowing capacity available		950.8		$ 919.9
Average outstanding balance, FHLB advances		59.1	$ 4.5
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%

JUNIOR SUBORDINATED DEBT (Detai

JUNIOR SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended
	Nov. 30, 2018	Sep. 30, 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	Sep. 30, 2019	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 158.7	$ 169
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	48.9	55.7
Related party deposits	$ 234.7	$ 311.2

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financial Assets
Securities available for sale	$ 228,032,000	$ 229,933,000
Financial Liabilities
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0	0
Transfers into level 3	0	0
Transfers from level 3	0	0
Recurring basis
Financial Assets
Total financial assets	231,790,000	230,895,000
Financial Liabilities
Total financial liabilities	3,758,000	962,000
Level 1 Inputs | Recurring basis | Equity securities
Financial Assets
Securities available for sale	1,146,000	1,088,000
Level 2 Inputs | Recurring basis | Interest rate swaps with customers
Financial Assets
Interest rate swaps assets	3,758,000	962,000
Financial Liabilities
Interest rate swaps liabilities	3,758,000	962,000
Level 2 Inputs | Recurring basis | State and municipal securities
Financial Assets
Securities available for sale	53,094,000	57,691,000
Level 2 Inputs | Recurring basis | Debt securities
Financial Assets
Securities available for sale		16,881,000
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations
Financial Assets
Securities available for sale	61,339,000	65,414,000
Level 2 Inputs | Recurring basis | Mortgage-backed securities
Financial Assets
Securities available for sale	$ 112,453,000	$ 88,859,000

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Impaired Loans
Recorded Investment with Allowance	$ 2,682,937	$ 2,453,129
Related Allowance	25,576	23,693	$ 24,486	$ 24,778
Net	2,651,248	2,423,130
Commercial and industrial
Impaired Loans
Recorded Investment with Allowance	523,831	519,779
Related Allowance	7,470	7,719	8,763	7,257
Commercial real estate
Impaired Loans
Recorded Investment with Allowance	875,329	795,733
Related Allowance	7,788	6,730	6,913	10,375
1-4 family residential
Impaired Loans
Recorded Investment with Allowance	287,434	282,011
Related Allowance	2,338	2,281	2,454	1,326
Consumer
Impaired Loans
Recorded Investment with Allowance	37,975	39,421
Related Allowance	558	387	394	566
Other
Impaired Loans
Recorded Investment with Allowance	76,860	68,382
Related Allowance	686	705	655	$ 285
Non-recurring basis
Impaired Loans
Net	3,684	3,538
Non-recurring basis | Commercial and industrial
Impaired Loans
Net	81	110
Non-recurring basis | Commercial real estate
Impaired Loans
Net	552	552
Non-recurring basis | 1-4 family residential
Impaired Loans
Net	1,753	1,735
Non-recurring basis | Consumer
Impaired Loans
Net	79
Non-recurring basis | Other
Impaired Loans
Net	1,219	1,141
Level 3 Inputs | Non-recurring basis
Impaired Loans
Recorded Investment with Allowance	4,276	4,296
Level 3 Inputs | Non-recurring basis | Commercial and industrial
Impaired Loans
Recorded Investment with Allowance	454	635
Level 3 Inputs | Non-recurring basis | Commercial real estate
Impaired Loans
Recorded Investment with Allowance	574	596
Level 3 Inputs | Non-recurring basis | 1-4 family residential
Impaired Loans
Recorded Investment with Allowance	1,786	1,824
Level 3 Inputs | Non-recurring basis | Consumer
Impaired Loans
Recorded Investment with Allowance	221
Level 3 Inputs | Non-recurring basis | Other
Impaired Loans
Recorded Investment with Allowance	1,241	1,241
Specific reserve
Impaired Loans
Related Allowance	592		785
Specific reserve | Commercial and industrial
Impaired Loans
Related Allowance	373		542
Specific reserve | Commercial real estate
Impaired Loans
Related Allowance	22		1
Specific reserve | 1-4 family residential
Impaired Loans
Related Allowance	33		115
Specific reserve | Consumer
Impaired Loans
Related Allowance	142
Specific reserve | Other
Impaired Loans
Related Allowance	22		$ 127
Specific reserve | Level 3 Inputs | Non-recurring basis
Impaired Loans
Related Allowance	592	758
Specific reserve | Level 3 Inputs | Non-recurring basis | Commercial and industrial
Impaired Loans
Related Allowance	373	525
Specific reserve | Level 3 Inputs | Non-recurring basis | Commercial real estate
Impaired Loans
Related Allowance	22	44
Specific reserve | Level 3 Inputs | Non-recurring basis | 1-4 family residential
Impaired Loans
Related Allowance	33	89
Specific reserve | Level 3 Inputs | Non-recurring basis | Consumer
Impaired Loans
Related Allowance	142
Specific reserve | Level 3 Inputs | Non-recurring basis | Other
Impaired Loans
Related Allowance	$ 22	$ 100

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure	$ 0	$ 0
Foreclosed assets	$ 0
Non-recurring basis | Level 2 Inputs | Previously reported
Non‑Financial Assets and Non‑Financial Liabilities
Carrying value of foreclosed assets prior to measurement			$ 13,000
Charge-offs recognized in the allowance for loan losses			(1,000)
Fair value			$ 12,000

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial Assets:
Interest bearing deposits in banks	$ 232,983	$ 327,620
Securities available for sale	228,032	229,933
Securities held to maturity	29	31
Equity investments	19,220	13,026
Accrued interest receivable	8,100	6,800
Financial Liabilities:
Noninterest-bearing deposits	1,196,720	1,183,058
Interest-bearing deposits	1,547,607	1,583,224
Repurchase agreements	1,208	2,498
Federal Home Loan Bank advances	120,000
Junior subordinated debt		1,571
Fair Value
Financial Assets:
Total financial assets	3,071,094	2,907,799
Financial Liabilities:
Total financial liabilities	2,858,331	2,710,146
Carrying Amount
Financial Assets:
Total financial assets	3,040,487	2,898,175
Financial Liabilities:
Total financial liabilities	2,866,453	2,771,004
Level 1 Inputs | Fair Value
Financial Assets:
Cash and due from banks	56,416	54,450
Interest bearing deposits in banks	232,983	327,620
Financial Liabilities:
Noninterest-bearing deposits	1,196,720	1,183,058
Level 1 Inputs | Carrying Amount
Financial Assets:
Cash and due from banks	56,416	54,450
Interest bearing deposits in banks	232,983	327,620
Financial Liabilities:
Noninterest-bearing deposits	1,196,720	1,183,058
Level 2 Inputs | Fair Value
Financial Assets:
Securities held to maturity	31	32
Bank-owned life insurance	71,451	71,525
Accrued interest receivable	8,989	8,227
Servicing asset	151	166
Financial Liabilities:
Interest-bearing deposits	1,540,705	1,522,366
Repurchase agreements	1,206	2,498
Federal Home Loan Bank advances	118,782
Junior subordinated debt		1,571
Accrued interest payable	918	653
Level 2 Inputs | Carrying Amount
Financial Assets:
Securities held to maturity	29	31
Bank-owned life insurance	71,451	71,525
Accrued interest receivable	8,989	8,227
Servicing asset	151	166
Financial Liabilities:
Interest-bearing deposits	1,547,607	1,583,224
Repurchase agreements	1,208	2,498
Federal Home Loan Bank advances	120,000
Junior subordinated debt		1,571
Accrued interest payable	918	653
Level 3 Inputs | Fair Value
Financial Assets:
Loans, including held for sale, net	2,681,853	2,432,753
Equity investments	19,220	13,026
Level 3 Inputs | Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,651,248	2,423,130
Equity investments	$ 19,220	$ 13,026

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)item	Dec. 31, 2018USD ($)item
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer’s credit worthiness	$ 0	$ 0
Number of interest rate swap agreements | item	20	13
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 149,062,000	$ 83,648,000
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	74,531,000	8,901,000
Fair value asset	$ 3,758,000	$ 169,000
Weighted Average Maturity	6 years 9 months	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		$ 32,923,000
Fair value asset		$ 793,000
Weighted Average Maturity		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		$ 32,923,000
Fair value liability		$ (793,000)
Weighted Average Maturity		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	$ 74,531,000	$ 8,901,000
Fair value liability	$ (3,758,000)	$ (169,000)
Weighted Average Maturity	6 years 9 months	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	4.00%	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%
Minimum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate		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	4.00%	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%
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%
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	5.89%	7.25%
Maximum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate		5.37%
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate		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	5.89%	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	3.25%	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%
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%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.25%	3.20%

OPERATING LEASES (Details)

OPERATING LEASES (Details)	9 Months Ended
	Sep. 30, 2019USD ($)item
OPERATING LEASES
Variable costs	$ 0
Right-of-use assets	12,864,000
New operating lease liabilities	$ 838,000
Number of lease commenced | item	2
Operating lease liabilities	$ 15,513,000
Weighted-average discount rate	3.56%
Weighted-average remaining lease term	11 years 4 months 24 days
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,391,000

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Lease costs
Operating lease cost	$ 1,384
Short-term lease cost	54
Sublease income	(128)
Total lease cost	$ 1,310

OPERATING LEASES - Maturity of

OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2019	$ 498
2020	2,042
2021	2,108
2022	2,196
2023	2,105
Thereafter	10,954
Total undiscounted lease liability	19,903
Less: Discount on cash flows	(3,854)
Less: Lease signed, but not yet commenced	(536)
Total operating lease liability	$ 15,513

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable interest rate	$ 662,364	$ 726,277
Commitments to extend credit, fixed interest rate	121,527	105,359
Total	783,891	831,636
Standby letters of credit	$ 26,712	$ 31,729

REVENUE RECOGNITION - Revenue-g

REVENUE RECOGNITION - Revenue-generating activities within scope of ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Noninterest income
Deposit account service charges	$ 1,681	$ 1,597	$ 4,967	$ 4,572
Net gain on sale of assets	190	152	347	492
Card interchange fees	908	922	2,713	2,820
Other noninterest income	$ 906	$ 412	$ 2,303	$ 1,150

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 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				$ 1,500,000	$ 1,400,000
Aggregate amount paid to employees		$ 13,951,000	$ 12,499,000	$ 41,958,000	$ 37,690,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)				25.00%
Deferred plan liability		2,600,000		$ 2,600,000		$ 2,500,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		357,000		357,000		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		382,000		$ 382,000		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		4,400,000		$ 4,400,000
Deferred compensation expense				$ 0

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)	9 Months Ended
	Sep. 30, 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	963,200
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	314,924

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock option plan - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Number of Shares Underlying Options
Outstanding, beginning of period	232,322	260,322
Exercised	(15,244)	(25,400)
Forfeited	(4,000)
Outstanding, end of period	213,078	234,922
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16.66	$ 16
Exercised	12.74	9.85
Forfeited	17.73
Outstanding, end of period	$ 16.92	$ 16.67

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock option plan - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	148,879
Number of shares underlying options unvested	64,199
Number of shares underlying options outstanding	213,078
Weighted-average exercise price per share exercisable	$ 15.62
Weighted-average exercise price per share unvested	19.94
Weighted-average exercise price per share outstanding	$ 16.92	$ 16.66	$ 16.67	$ 16
Aggregate intrinsic value exercisable	$ 1,871
Aggregate intrinsic value unvested	530
Aggregate intrinsic value outstanding	$ 2,401
Weighted-average remaining contractual term exercisable (years)	5 years 1 month 6 days
Weighted-average remaining contractual term unvested (years)	7 years 2 months 12 days
Weighted-average remaining contractual term outstanding (years)	5 years 8 months 12 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock
Number of Shares
Vested	(3,100)	0
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	36,992	18,500
Vested	(3,100)
Forfeited	(3,220)
Outstanding, end of period	212,445	231,080
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 27.05	$ 26.71
Granted	32.18	29.71
Vested	29.69
Forfeited	29.99
Outstanding, end of period	$ 27.86	$ 26.95

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Non-performance Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	212,445	181,773	231,080	212,580
Weighted-average grant date fair value per share	$ 27.86	$ 27.05	$ 26.95	$ 26.71
Aggregate fair value (in thousands)	$ 5,923
Weighted-average remaining vesting period (years)	2 years 10 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)	$ 677
Weighted-average remaining vesting period (years)	2 years 4 months 24 days

STOCK-BASED COMPENSATION - Shar

STOCK-BASED COMPENSATION - Shares of stock options exercised and restricted stock vested, shares withheld for taxes and shares issued (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Number of Shares
Stock compensation expense	$ 608,000	$ 1,700,000	$ 415,000	$ 1,200,000
Unrecognized compensation expense	$ 5,400,000		$ 5,400,000
Weighted average period			2 years 9 months 18 days
Stock option plan
Number of Shares
Stock Options, Exercised/Vested	400		15,244	0
Stock Options, Shares withheld	(280)		(2,318)
Stock Options, Shares Issued	120		12,926
Restricted Stock
Number of Shares
Restricted Stock, Exercised/Vested			3,100	0
Restricted Stock, Shares withheld			(658)
Restricted Stock, Shares Issued			$ 2,442

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 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	$ 437,738	$ 405,012
Common Equity Tier One Capital Ratio	14.99%	14.71%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 131,426	$ 123,885
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 204,440	$ 192,710
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 437,738	$ 406,257
Actual ratio	14.99%	14.76%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 175,234	$ 165,180
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 248,248	$ 234,005
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 463,692	$ 430,238
Actual ratio	15.88%	15.63%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 233,646	$ 220,240
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 306,660	$ 289,065
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 437,738	$ 406,257
Actual ratio	13.23%	12.74%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 132,358	$ 127,350
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 132,358	$ 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	$ 396,161	$ 363,140
Common Equity Tier One Capital Ratio	13.57%	13.19%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 131,415	$ 123,877
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.50%	4.50%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 204,424	$ 192,697
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 189,822	$ 178,933
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 396,161	$ 363,140
Actual ratio	13.57%	13.19%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 175,220	$ 165,169
Minimum Capital Required for Capital Adequacy Purposes (ratio)	6.00%	6.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 248,229	$ 233,989
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 233,627	$ 220,225
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 422,115	$ 387,211
Actual ratio	14.45%	14.07%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 233,627	$ 220,225
Minimum Capital Required for Capital Adequacy Purposes (ratio)	8.00%	8.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 306,635	$ 289,046
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 292,034	$ 275,282
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 396,161	$ 363,140
Actual ratio	11.97%	11.41%
Minimum Capital Required for Capital Adequacy Purposes (amount)	$ 132,344	$ 127,350
Minimum Capital Required for Capital Adequacy Purposes (ratio)	4.00%	4.00%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 132,344	$ 127,350
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 165,430	$ 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES
Income tax benefit	$ 2,990	$ 3,207	$ 8,666	$ 7,984
Effective tax rate (as a percent)	18.61%	19.76%	18.62%	19.40%
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
EARNINGS PER SHARE
Net income for common shareholders	$ 13,076	$ 13,023	$ 37,881	$ 33,177
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,923	24,859	24,918	24,850
Dilutive effect of outstanding stock options and unvested restricted stock awards	123	201	135	157
Diluted weighted-average shares outstanding	25,046	25,060	25,053	25,007
Earnings per share:
Basic	$ 0.52	$ 0.52	$ 1.52	$ 1.34
Diluted	$ 0.52	$ 0.52	$ 1.51	$ 1.33