Stellar Bancorp (STEL) 10-Q 30 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 25, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, INC.
Entity Central Index Key	0001473844
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		24,949,027
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 47,895	$ 51,259
Interest-bearing deposits at other financial institutions	237,003	320,805
Total cash and cash equivalents	284,898	372,064
Securities	234,014	231,262
Equity investments	16,807	16,710
Loans held for sale	882	1,463
Loans, net of allowance for credit losses of $31,194 and $25,280 at March 31, 2020 and December 31, 2019, respectively	2,640,393	2,613,805
Premises and equipment, net of accumulated depreciation of $33,665 and $32,923 at March 31, 2020 and December 31, 2019, respectively	50,243	50,875
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $16,020 and $15,809 at March 31, 2020 and December 31, 2019, respectively	4,700	4,938
Bank-owned life insurance	72,297	71,881
Operating lease right-to-use asset	12,577	12,926
Deferred tax asset, net	7,026	7,432
Other assets	20,863	14,238
Total assets	3,425,650	3,478,544
Liabilities
Noninterest-bearing deposits	1,195,541	1,184,861
Interest-bearing deposits	1,596,692	1,667,527
Total deposits	2,792,233	2,852,388
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	1,415	485
Operating lease liabilities	15,356	15,704
Other liabilities	29,772	24,246
Total liabilities	2,888,776	2,942,823
Commitments and contingencies (Note 16)
Shareholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued
Common stock, $0.01 par value, 90,000,000 shares authorized, 25,601,835 and 25,837,048 shares issued at March 31, 2020 and December 31, 2019, respectively, 24,746,013 and 24,979,702 shares outstanding at March 31, 2020 and December 31, 2019, respectively	256	258
Additional paid-in capital	341,713	346,559
Retained earnings	203,080	201,080
Treasury stock, at cost, 855,822 and 857,346 shares held at March 31, 2020 and December 31, 2019, respectively	(14,536)	(14,562)
Accumulated other comprehensive gain, net of tax of $1,058 and $634 at March 31, 2020 and December 31, 2019, respectively	6,361	2,386
Total shareholders’ equity	536,874	535,721
Total liabilities and shareholders’ equity	$ 3,425,650	$ 3,478,544

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Allowance for credit losses on loans	$ 31,194	$ 25,280
Premises and equipment, accumulated depreciation	33,665	32,923
Other intangible assets, accumulated amortization	$ 16,020	$ 15,809
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	25,601,835	25,837,048
Common stock, shares outstanding	24,746,013	24,979,702
Treasury stock, shares	855,822	857,346
Accumulated other comprehensive gain (loss), tax	$ 1,058	$ 634

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income
Interest and fees on loans	$ 33,617	$ 33,793
Securities	1,363	1,557
Other interest-earning assets	1,055	1,483
Equity investments	176	152
Total interest income	36,211	36,985
Interest expense
Deposits	3,766	3,584
Federal Home Loan Bank advances	221	64
Repurchase agreements		1
Note payable and junior subordinated debt	4	8
Total interest expense	3,991	3,657
Net interest income	32,220	33,328
Provision for credit losses for loans	4,739	1,147
Provision for credit losses for unfunded commitments	310
Total provision for credit losses	5,049	1,147
Net interest income after provision for credit losses	27,171	32,181
Noninterest income
Deposit account service charges	1,485	1,629
Card interchange fees	922	864
Earnings on bank-owned life insurance	416	430
Net gain on sales of assets	123	88
Other	1,381	482
Total noninterest income	4,327	3,493
Noninterest expense
Salaries and employee benefits	14,223	13,822
Occupancy expense	2,424	2,267
Professional and director fees	1,152	2,091
Data processing and software	1,222	1,154
Regulatory fees	103	464
Advertising, marketing and business development	364	440
Telephone and communications	419	378
Security and protection expense	374	323
Amortization of intangibles	221	232
Other expenses	1,587	1,414
Total noninterest expense	22,089	22,585
Net income before income tax expense	9,409	13,089
Income tax expense	1,868	2,599
Net income	$ 7,541	$ 10,490
Earnings per common share
Basic	$ 0.30	$ 0.42
Diluted	$ 0.30	$ 0.42

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 7,541	$ 10,490
Change in unrealized gains on securities available for sale arising during the period, net	5,023	3,027
Reclassification adjustments for net realized gains included in net income	10	3
Change in related deferred income tax	(1,058)	(637)
Other comprehensive income, net of tax	3,975	2,393
Total comprehensive income	$ 11,516	$ 12,883

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2018	$ 258	$ 344,497	$ 160,626	$ (14,781)	$ (2,975)	$ 487,625
Beginning balance, shares at Dec. 31, 2018	25,777,693			(870,272)
Net income			10,490			10,490
Dividends on common stock, $0.10 and $0.10 per share for the three months ended March 31, 2020 and 2019, respectively			(2,513)			(2,513)
Stock-based compensation expense		545				545
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(2)				(2)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	211
Exercise of stock options, net of shares withheld for employee tax liabilities		(69)		$ 184		115
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				10,844
Other comprehensive income, net of tax					2,393	2,393
Ending balance at Mar. 31, 2019	$ 258	344,971	168,603	$ (14,597)	(582)	498,653
Ending balance, shares at Mar. 31, 2019	25,777,904			(859,428)
CECL implementation, net of deferred tax asset | ASU 2016-13			(3,045)			(3,045)
Beginning balance at Dec. 31, 2019	$ 258	346,559	201,080	$ (14,562)	2,386	535,721
Beginning balance, shares at Dec. 31, 2019	25,837,048			(857,346)
Net income			7,541			7,541
Dividends on common stock, $0.10 and $0.10 per share for the three months ended March 31, 2020 and 2019, respectively			(2,496)			(2,496)
Stock-based compensation expense		557				557
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(35)				(35)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	5,232
Exercise of stock options, net of shares withheld for employee tax liabilities		(10)		$ 26		16
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				1,524
Shares repurchased	$ (2)	(5,358)				(5,360)
Shares repurchased, Shares	(240,445)
Other comprehensive income, net of tax					3,975	3,975
Ending balance at Mar. 31, 2020	$ 256	$ 341,713	$ 203,080	$ (14,536)	$ 6,361	$ 536,874
Ending balance, shares at Mar. 31, 2020	25,601,835			(855,822)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Changes in Shareholders Equity
Dividends on Common Stock	$ 0.10	$ 0.10

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 7,541	$ 10,490
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for credit losses	5,049	1,147
Depreciation expense	775	824
Amortization of intangibles	221	232
Amortization of premiums on securities	368	256
Amortization of lease right-to-use assets	349	329
Accretion of lease liabilities	133	131
Earnings on bank-owned life insurance	(416)	(430)
Stock-based compensation expense	557	545
Deferred income tax provision	158	622
Net gain on sales of assets	(123)	(88)
Earnings on securities	(24)	(9)
Change in operating assets and liabilities:
Loans held for sale	670	(820)
Other assets	(6,625)	303
Other liabilities	1,759	(3,517)
Total adjustments	2,851	(475)
Net cash provided by operating activities	10,392	10,015
Cash flows from investing activities:
Purchases of securities	(160,580)	(153,962)
Proceeds from sales, calls and maturities of securities	153,005	153,056
Principal repayments of securities	9,522	4,969
Net increase in loans	(30,168)	(97,639)
Purchases of loan participations	(2,500)	(1,256)
Proceeds from sales of Small Business Administration loans	508	818
Net contributions to equity investments	(97)	(2,039)
Net purchases sales of premises and equipment	(143)
Proceeds from sales of repossessed real estate and other assets		20
Proceeds from insurance claims		(653)
Net cash used in investing activities	(30,453)	(96,686)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	10,680	46,114
Net decrease in interest-bearing deposits	(70,835)	(61,397)
Net increase (decrease) in securities sold under agreements to repurchase	930	(898)
Redemption of trust preferred securities		(1,571)
Dividends paid on common stock	(2,501)	(1,245)
Payments to tax authorities for stock-based compensation	(35)	(2)
Proceeds from exercise of stock options	16	115
Repurchase of common stock	(5,360)
Net cash provided by financing activities	(67,105)	(18,884)
Net decrease in cash, cash equivalents and restricted cash	(87,166)	(105,555)
Cash, cash equivalents and restricted cash, beginning	372,064	382,070
Cash, cash equivalents and restricted cash, ending	$ 284,898	$ 276,515

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three months ended March 31, 2020 and 2019, and consolidated cash flows for the three months ended March 31, 2020 and 2019. 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, 2019 included within the Company’s Annual Report on Form 10-K. Reclassification—Within noninterest expense for 2019, data processing and software have been combined together. In addition, printing, stationary and office, correspondent bank and customer related transaction fees, loan processing costs and repossessed real estate and other asset expenses have been combined with other expenses. These reclassifications were made to conform to the 2020 financial statement presentation in the condensed consolidated statements of income. Share Repurchase Program During the three months ended March 31, 2020, 240,445 shares were repurchased under the Company’s share repurchase program at an average price of $22.29 per share and retired and returned to the status of authorized but unissued shares. There were no shares repurchased during the three months ended March 31, 2019. Accounting Standards Recently Adopted The Company adopted Accounting Standards Update, or ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments effective January 1, 2020. The scope of ASU 2016-13 includes loans, debt securities classified as held to maturity, other receivables, off-balance sheet credit exposures and any other financial assets not excluded from the scope that have the contractual right to receive cash. In addition, ASU 2016-13 amends the accounting and reporting for credit losses on available for sale securities. 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. As part of the implementation of ASU 2016-13, the Company changed its methodology of determining the allowance for credit losses, or ACL, for loans and for determining an ACL associated with the Company’s off-balance sheet credit exposures, which are primarily unfunded commitments to borrowers. Through a one-time cumulative effect reduction of retained earnings of $3.0 million, the adoption of ASU 2016-13 increased the ACL for loans by $874,000, increased the liability related to the ACL for unfunded commitments by $2.9 million, with the associated deferred tax assets increasing by $809,000. The adoption of ASU 2016-13 did not have any impact on held-to-maturity securities as the Company did not hold any as of January 1, 2020. Additionally, the Company assessed the impact of ASU 2016-13 on its available for sale securities utilizing various qualitative factors and determined there were no credit losses within the portfolio requiring an allowance upon adoption. The Company did not have any purchased financial assets with credit deterioration as of January 1, 2020. See Note 6 —Allowance for Credit Losses for further discussion related to ASC 2016-13 and related disclosures. Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued, if certain criteria are met. LIBOR is used as an index rate for the Company’s interest-rate swaps and approximately 12.9% of the Company’s loans as of March 31, 2020. If reference rates are discontinued, the existing contracts will be modified to replace the discontinued rate with a replacement rate. For accounting purposes, such contract modifications would have to be evaluated to determine whether the modified contract is a new contract or a continuation of an existing contract. If they are considered new contracts, the previous contract would be extinguished. Under one of the optional expedients of ASU 2020-04, modifications of contracts within the scope of Topic 310, Receivables, and 470, Debt, will be accounted for by prospectively adjusting the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the impact of this pronouncement on those financial assets where LIBOR is used as an index rate. Cash Flow Reporting The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $17.2 million and $18.6 million at March 31, 2020 and December 31, 2019, respectively. Additionally, as of March 31, 2020 and December 31, 2019, the Company had $9.3 million and $3.1 million, respectively, in cash collateral for interest rate swap transactions. The reserves maintained with the Federal Reserve Bank and the cash collateral used in interest rate swap transactions are considered restricted cash. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest 3,944 3,599 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease liabilities — 13,208 Dividends accrued 5 1,268 Repossessed real estate and other assets — 41

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
SECURITIES.
SECURITIES	NOTE 2: SECURITIES The amortized cost and fair values of investments in securities, including the gross unrealized gains and losses reported net of tax in other comprehensive income, as of the dates shown below were as follows: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2020 Debt securities available for sale: State and municipal securities $ 48,988 $ 1,898 $ — $ 50,886 U.S. agency securities: Collateralized mortgage obligations 51,433 1,632 — 53,065 Mortgage-backed securities 124,370 4,522 — 128,892 Equity securities 1,161 10 — 1,171 Total $ 225,952 $ 8,062 $ — $ 234,014 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019 Debt securities available for sale: State and municipal securities $ 51,525 $ 1,761 $ (7) $ 53,279 U.S. agency securities: Collateralized mortgage obligations 55,784 324 (119) 55,989 Mortgage-backed securities 119,787 1,315 (255) 120,847 Equity securities 1,155 — (8) 1,147 Total $ 228,251 $ 3,400 $ (389) $ 231,262 The amortized cost and estimated fair value of securities, by contractual maturities, as of the dates shown below were as follows: Available for Sale Amortized Fair (Dollars in thousands) Cost Value March 31, 2020 Amounts maturing in: 1 year or less $ 1,759 $ 1,776 1 year through 5 years 3,050 3,131 5 years through 10 years 15,042 15,536 After 10 years 206,101 213,571 $ 225,952 $ 234,014 December 31, 2019 Amounts maturing in: 1 year or less $ 2,535 $ 2,532 1 year through 5 years 3,081 3,145 5 years through 10 years 14,564 14,874 After 10 years 208,071 210,711 $ 228,251 $ 231,262 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 $358,000 were sold in the three months ended March 31, 2019. No securities were sold in the three months ended March 31, 2020. At March 31, 2020 and December 31, 2019, securities with a carrying amount of $51.5 million and $50.8 million, respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. The Company held 3 securities at March 31, 2020 and 27 securities at December 31, 2019, respectively, that were in a gross unrealized loss position. Total gross unrealized losses at March 31, 2020 was below $1,000. The unrealized losses are attributable primarily to changes in market interest rates relative to those available when the securities were acquired. There are multiple qualitative factors considered by the Company in its assessment to determine if an ACL was necessary for those securities where the amortized cost basis exceeds the fair value. These factors include, among other things, (i) the extent to which the fair value was less than the amortized cost basis of the security and the length of time; (ii) the structure of the payments and likelihood that the issuer has the ability to make future payments; (iii) adverse conditions related to the security, industry or geographic area; (iv) changes in any credit ratings or financial conditions of the issuer; (v) failure by the issuer to make previous payments; and (vi) past events related to the security, current economic conditions and reasonable and supportable forecasts. Management did not believe that any of the securities the Company held were impaired due to reasons of credit quality and believed the unrealized losses detailed in the tables below were temporary. No ACL for available for sale securities has been recorded in the Company’s condensed consolidated balance sheets at March 31, 2020 and upon adoption of ASU 2016-03. Amortized costs, as defined by GAAP, includes acquisition costs, applicable accrued interest and accretion or amortization of premiums and discounts. The Company made a policy election to exclude accrued interest from amortized costs in the determination of ACL. The Company continues its policy of reversing previously accrued interest when it has been deemed uncollectible. Accrued interest receivable for securities was $674,000 and $1.1 million at March 31, 2020 and December 31, 2019, respectively, and is included in other assets in the condensed consolidated balance sheets. Securities with unrealized losses as of the dates shown below, aggregated by category and the length of time were as follows: Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses March 31, 2020 Debt securities available for sale: State and municipal securities $ 489 $ — $ — $ — U.S. agency securities: Collateralized mortgage obligations — — — — Mortgage-backed securities — — — — Equity securities — — — — $ 489 $ — $ — $ — December 31, 2019 Debt securities available for sale: State and municipal securities $ 3,539 $ (7) $ 106 $ — U.S. agency securities: Debt securities — — — Collateralized mortgage obligations 10,687 (46) 7,994 (73) Mortgage-backed securities 11,628 (26) 21,745 (229) Equity securities — — 1,147 (8) $ 25,854 $ (79) $ 30,992 $ (310)

EQUITY INVESTMENTS

EQUITY INVESTMENTS	3 Months Ended
	Mar. 31, 2020
EQUITY INVESTMENTS
EQUITY INVESTMENTS	NOTE 3: EQUITY INVESTMENTS The Company’s unconsolidated investments that are considered equity securities as they represent ownership interests, such as common or preferred stock, were as follows for the dates indicated below: (Dollars in thousands) March 31, 2020 December 31, 2019 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 4,286 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,109 3,049 $ 16,807 $ 16,710 Banks that are members of the Federal Home Loan Bank are required to maintain a stock investment in the Federal Home Loan Bank calculated as a percentage of aggregate outstanding mortgages, outstanding Federal Home Loan Bank advances and other financial instruments. As a member of the Federal Reserve, the Bank is required to annually subscribe to Federal Reserve stock in specific ratios to the Bank’s equity. Although Federal Home Loan Bank and Federal Reserve stock are considered equity securities, they do not have readily determinable fair values because ownership is restricted, and they lack a readily-available 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 the 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, which has limited marketability. As a result, this investment is carried at cost and evaluated for impairment. The Company has investments in investment funds and limited partnerships that are qualified Community Reinvestment Act, or CRA, and investments under the Small Business Investment Company program of the Small Business Administration, or SBA. There are limited to no observable price changes in orderly transactions for identical investments or similar investments from the same issuers that are actively traded and, as a result, these investments are stated at cost. At March 31, 2020 and December 31, 2019, the Company had $4.8 million and $4.9 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, and (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 the investment. There were no such qualitative indicators as of March 31, 2020.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2020
LOANS
LOANS	NOTE 4: LOANS Loans by loan class, or major loan category, as of the dates shown below were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 542,650 $ 527,607 Real estate: Commercial real estate 904,395 900,746 Construction and development 558,343 527,812 1-4 family residential 276,142 280,192 Multi-family residential 267,152 277,209 Consumer 38,133 36,782 Agriculture 7,520 9,812 Other 84,076 86,513 Total gross loans 2,678,411 2,646,673 Less allowance for credit losses for loans (31,194) (25,280) Less deferred loan fees and unearned discounts (5,942) (6,125) Less loans held for sale (882) (1,463) Loans, net $ 2,640,393 $ 2,613,805 Accrued interest receivable for loans was $7.8 million and $7.5 million at March 31, 2020 and December 31, 2019, respectively, and is included in other assets in the condensed consolidated balance sheets. From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the three months ending March 31, 2020 and 2019, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period March 31, 2020 Commercial real estate $ 2,500 $ — March 31, 2019 Commercial real estate $ 1,256 $ — The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the three months ended March 31, 2020 and 2019, totaled $508,000 and $818,000, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	3 Months Ended
	Mar. 31, 2020
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 5: LOAN PERFORMANCE Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 449 $ 596 Real estate: Commercial real estate 67 67 Construction and development 519 — 1-4 family residential 413 314 Total nonaccrual loans $ 1,448 $ 977 Interest income that would have been earned under the original terms of the nonaccrual loans was $33,000 and $48,000 for the three months ended March 31, 2020 and 2019, respectively. The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below: 90 days or 90 days 30 to 59 days 60 to 89 days greater Total past Total current past due and (Dollars in thousands) past due past due past due due loans Total loans still accruing March 31, 2020 Commercial and industrial $ 1,549 $ 7 $ — $ 1,556 $ 541,094 $ 542,650 $ — Real estate: Commercial real estate 1,532 — — 1,532 902,863 904,395 — Construction and development 2,973 — — 2,973 555,370 558,343 — 1-4 family residential 133 — 32 165 275,977 276,142 — Multi-family residential — — — — 267,152 267,152 — Consumer 15 — — 15 38,118 38,133 — Agriculture — — — — 7,520 7,520 — Other — — — 84,076 84,076 Total loans $ 6,202 $ 7 $ 32 $ 6,241 $ 2,672,170 $ 2,678,411 $ — December 31, 2019 Commercial and industrial $ 664 $ 31 $ 240 $ 935 $ 526,672 $ 527,607 $ — Real estate: Commercial real estate 865 — 865 899,881 900,746 — Construction and development — 532 — 532 527,280 527,812 — 1-4 family residential 499 — 499 279,693 280,192 — Multi-family residential — — — — 277,209 277,209 — Consumer 43 — — 43 36,739 36,782 — Agriculture — — — — 9,812 9,812 — Other — — — 86,513 86,513 — Total loans $ 2,071 $ 563 $ 240 $ 2,874 $ 2,643,799 $ 2,646,673 $ — There were no loans restructured due to borrower’s financial difficulties during the three months ended March 31, 2019. Loans restructured due to the borrower’s financial difficulties during the three months ending March 31, 2020, which remained outstanding as of the end of that period 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 March 31, 2020 Commercial and industrial 3 $ 657 $ 426 $ — $ 231 $ — Commercial real estate 3 4,813 4,813 — — — Total 6 $ 5,470 $ 5,239 $ — $ 231 $ — The recorded investment in troubled debt restructurings was $15.9 million and $8.8 million as of March 31, 2020 and December 31, 2019, respectively. At March 31, 2020 and December 31, 2019, $1.0 million and $393,000 of restructured loans were nonaccrual loans and $14.9 million and $8.4 million of restructured loans were accruing interest as of those periods, respectively. At December 31, 2019, the Company had an outstanding commitment to fund $2.0 million on a line of credit previously restructured. The Company had no such commitment at March 31, 2020. 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. Loan modifications related to a loan refinancing or restructuring other than a troubled debt restructuring are accounted for as a new loan if the terms provided to the borrower are at least as favorable to the Company as terms for comparable loans to other borrowers with similar collection risks that is not a loan refinancing or restructuring. If the loan refinancing or restructuring does not meet this condition or if only minor modifications are made to the original loan contract, it is not considered a new loan and is considered a renewal or modification of the original contract. In support of customers impacted by the corona-virus, or COVID-19, the Company began providing short-term loan modifications by offering relief through payment deferrals during the first quarter of 2020. The Company has deferred payments, including principal and interest, totaling $936,000 as of March 31, 2020. The majority of the deferral arrangements provide for one-month to six-month deferral periods. Under regulatory guidance, there short-term deferrals are not assessed as troubled debt restructurings.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
	Mar. 31, 2020
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES	NOTE 6: ALLOWANCE FOR CREDIT LOSSES Effective on January 1, 2020 upon adoption of Topic 326, the Company’s ACL for the loan portfolio has two main components: a reserve for expected losses determined from the historical loss rates, adjusted for qualitative factors, and forecasted expected losses on the segments associated with the individual loan classes with similar risk characteristics, or general reserve, and a separate allowance representing the reserves assigned to individually evaluated loans that do not share similar risk characteristics with other loans, or specific reserve. The Company defines the loan class to be the grouping of the loan receivable based on risk characteristics and the method for monitoring and assessing credit risk, which is represented by the loan type or major category of loans. For specific reserves, loans identified as not sharing similar risk characteristics with other assets are individually evaluated for the net amount expected to be collected and reserves are determined for them outside of general reserve computation. For determination of credit losses on loans individually evaluated, the Company utilizes various methods such as discounted cash flow analysis, appraisal valuation on collateral, among others, to determine any impairment of the loan and need for additional allowance for expected losses. For the general reserve computation, the Company selected an aged-based vintage model, or the Vintage model, based on the model’s ability to predict credit risks associated with the loan portfolio and capture the expected life of loan losses associated with each segment of loans. The Company primarily manages credit quality and determines credit risk of its loans based on the risk grade assigned to each individual loan within the loan class. See risk grade discussion later in this footnote. The factors considered include the age of the loan, interest rate, loan size, payment structure, term, risk ratings, loan to value, collateral type, geographical pattern, and industrial sector. The breakdown of the loan classes into portfolio segments was a judgement election based upon identified risk criteria. The Company has limited specific historical loss experience to directly tie to an attribute and thus the use of one factor over another is based on management’s perceived risk of the identified factor in combination with the data analyzed. After consideration of the factors previously discussed, the Company determined segmenting the portfolio into 16 segments, plus overdrafts, based on the identified risk characteristics present within each segment. These risk characteristics are determined based on call code, collateral types, and loan terms. The Company believes that this segmentation best represents the portfolio segments at a level to develop the systematic methodology in the determination of the ACL. Certain loans were aggregated and disaggregated to align with the concentrations of risk and expected loss exposures associated with those loans. Oil and gas loans were carved out of commercial and industrial loans and oil and gas real estate loans were carved out of commercial real estate loans due to the inherent risk related to the oil and gas industry, the volatile nature of the price of oil and its potential impact on the local economy of the Company’s primary geographical area. Commercial and industrial loans were divided into two pools based on terms greater than one year and less than or equal to one year. Commercial and industrial loans with terms less than or equal to one year are typically revolving credits and have different risk characteristics based on the short-term nature of the loan than commercial and industrial loans with terms longer than one year. Commercial real estate loans are split out further into owner occupied and non-owner occupied based on their different risk profiles. Community development loans were split-out as a separate component of construction and multi-family residential loans based on the unique underwriting of these loans and some underlying guarantees which impact the risk profile of these loans. The remaining construction loans were split between 1-4 family primary construction and 1-4 family single family residential construction loans as they are deemed to have differing risk profiles. The loans were then subdivided by year of origination or vintage, as determined by an identifiable credit decision date. See the table that follows this discussion. Historical net losses are used to calculate a historical loss rate for each vintage within each portfolio segment and then subjective adjustments for internal and external qualitative risk factors are applied to the historical loss rates to generate a total expected loss rate for each vintage within each portfolio segment. For portfolio segments of loans with no historical losses, the Company is using the weighted average of its the annual historical loss rates as a proxy loss rate floor or, specifically for oil and gas and oil and gas real estate portfolio segments, historical average loss rate based on peer group data. There are multiple qualitative factors, both internal and external, that could impact potential collectability of the underlying loans. The various internal factors that may be considered include, among other things, (i) effectiveness of loan policies, procedures and internal controls; (ii) portfolio growth and changes in loan concentrations; (iii) changes in loan quality; (iv) experience, ability and effectiveness of lending management and staff; (v) legal and regulatory compliance requirements associated with underwriting, originating and servicing a loan and the impact of exceptions; and (vi) the effectiveness of the internal loan review function. The various external factors that may be considered include, among other things, (i) current national and local economic conditions; (ii) changes in the political, legal and regulatory landscape; (iii) industry trends, in particular those related to loan quality and (iv) forecasted changes in the economy. As part of this assessment, the Company considers the need to adjust historical information to reflect the extent to which current conditions and forecasts differ from the conditions that existed for the period over which historical information was evaluated. The Company uses an economic forecast qualitative factor as noted above to adjust the expected loss rates for the effects of forecasted changes in the economy. The Company uses economic indicators and indexes including, but not limited to, inflation indexes, unemployment rates, fluctuations of interest rates, economic growth, government expenditures, gross domestic product indexes, productivity indicators, leading indexes and debt levels and narratives such as those supplied by the Federal Reserve’s beige book and Moody’s Analytics that provide information for determining an appropriate impact ratio for macro-economic conditions. The Company has determined that a two-year forecast period provides a balance between the level of forecast periods reasonably available and forecast accuracy. The Company utilized, at adoption and during the three-month period ending March 31, 2020, an immediate reversion to historical levels after the two-year forecast period. The Company believes a two-year period is the limit of a reasonable and supportable forecast and chose to revert to historical levels immediately afterward as current adjusted loss history is the more relevant indicator of expected losses beyond the forecast period. The historical loss rates, adjusted for current conditions and forecasting assumptions, are multiplied by the respective loan’s amortized cost balances in each vintage within each segment to compute an estimated quantitative reserve for expected losses in the portfolio. The quantitative reserve for expected loan losses and the qualitative reserve for expected loan losses combined together make up the total estimated loan loss reserve. Loan amortized costs, as defined by GAAP, includes principal, deferred fees or costs associated with the loan, premiums, discounts and accrued interest. The Company made a policy election to exclude accrued interest in the determination of an ACL. The Company continues its policy of reversing previously accrued interest when it has been deemed uncollectible and accrued interest receivable is included in other assets in the consolidated balance sheets. Loans available for sale are excluded from the computation of expected loan loss as they are carried at the lower of cost or market value. As part of the implementation of ASU 2016-13, the Company changed its methodology for determining the ACLs for loans. As a result of this adoption, the percentage of the ACL for loans to loans increased from 0.96% to 0.99%, effective January 1, 2020. At March 31, 2020, the percentage of the ACL for loans to total loans increased to 1.16%, reflecting the impact of current and forecasted economic factors for the local and national economy due to the impact of COVID-19 and the drop in the price of oil and gas during the first quarter of 2020. The Company’s total factors ranged from 0.67% to 2.42% at January 1, 2020 and ranged from 0.85% to 2.61% at March 31, 2020 and all factors were reassessed at the end of the first quarter. At the time of the assessment, there was limited economic forecasted data related to COVID-19 and the drop in the price of oil and gas. The increase in the ACL related to these events reflects the Company’s assessment based on the information available at March 31, 2020. Risk Grading As part of the on‑going monitoring of the credit quality of the Company’s loan portfolio, 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 a 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 methodology used by the Company in the determination of its ACL, which is performed at least on a quarterly basis, is designed to be responsive to changes in the credit quality of the loan portfolio as well as forecasted economic conditions. The credit quality of the loan portfolio is assessed through different processes. At origination, a risk grade is assigned to each loan based on underwriting procedures and criteria. The Company monitors the credit quality of the loan portfolio on an on-going basis by performing loan reviews, both internally and through a third-party vendor, on loans meeting certain risk and exposure criteria. Through these reviews, loans that require risk grade changes are approved by executive management. In addition, executive management reviews classified and criticized loans on to assess changes in credit quality of the underlying loan, and when determined appropriate based on an individual evaluation, approve specific reserves. The review of the appropriateness of the ACL, which includes evaluation of historical loss trends, qualitative adjustments and forecasted economic conditions applied to general reserves, is performed by executive management and presented to the board of directors for their review on a quarterly basis as part of our interim and annual consolidated financial statements. The loans by risk grades, loan class and vintage at March 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 16,734 $ 120,547 $ 67,560 $ 19,418 $ 12,466 $ 9,688 $ 270,877 $ 11,585 $ 528,875 Special mention 33 266 — 15 — — 436 — 750 Substandard 1,000 786 464 39 354 2,406 4,012 3,964 13,025 Total commercial and industrial 17,767 121,599 68,024 19,472 12,820 12,094 275,325 15,549 542,650 Commercial real estate: Pass 57,116 213,693 214,659 139,415 86,079 129,764 36,851 2,322 879,899 Special mention — — — — 1,587 — — 11,000 12,587 Substandard — 1,926 4,967 216 1,600 3,200 — — 11,909 Total commercial real estate 57,116 215,619 219,626 139,631 89,266 132,964 36,851 13,322 904,395 Construction and development: Pass 35,419 184,260 196,235 45,597 8,477 35,240 40,564 — 545,792 Substandard — 519 1,500 10,532 — — — — 12,551 Total construction and development 35,419 184,779 197,735 56,129 8,477 35,240 40,564 — 558,343 1-4 family residential: Pass 7,110 35,961 66,602 49,164 27,973 70,808 11,094 1,277 269,989 Special mention — — 40 — 392 386 — — 818 Substandard — 547 — 249 20 3,034 — 1,485 5,335 Total 1-4 family residential 7,110 36,508 66,642 49,413 28,385 74,228 11,094 2,762 276,142 Multi-family residential: Pass 7,770 8,527 23,743 50,750 4,361 172,001 — — 267,152 Total multi-family residential 7,770 8,527 23,743 50,750 4,361 172,001 — — 267,152 Consumer: Pass 3,020 6,506 3,443 2,528 323 411 19,689 2,208 38,128 Substandard — — — — — 5 — — 5 Total consumer 3,020 6,506 3,443 2,528 323 416 19,689 2,208 38,133 Agriculture: Pass 936 1,701 547 162 38 5 3,975 79 7,443 Substandard — — — — — 27 50 — 77 Total agriculture 936 1,701 547 162 38 32 4,025 79 7,520 Other: Pass 623 15,233 5,026 162 128 1,551 35,662 17,424 75,809 Substandard — — 1,381 — 1,241 — 5,645 — 8,267 Total other 623 15,233 6,407 162 1,369 1,551 41,307 17,424 84,076 Total $ 129,761 $ 590,472 $ 586,167 $ 318,247 $ 145,039 $ 428,526 $ 428,855 $ 51,344 $ 2,678,411 Loans by risk grades and loan class as of the date shown below were as follows: Special (Dollars in thousands) Pass Mention Substandard Total Loans December 31, 2019 Commercial and industrial $ 513,417 $ 2,963 $ 11,227 $ 527,607 Real estate: Commercial real estate 876,207 18,570 5,969 900,746 Construction and development 515,247 12,565 — 527,812 1-4 family residential 274,731 594 4,867 280,192 Multi-family residential 277,209 — — 277,209 Consumer 36,566 — 216 36,782 Agriculture 9,733 50 29 9,812 Other 79,860 — 6,653 86,513 Total loans $ 2,582,970 $ 34,742 $ 28,961 $ 2,646,673 Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ — $ (29) $ — $ — $ (1) $ (30) Recovery — 2 87 16 10 133 180 428 Total commercial and industrial — 2 87 (13) 10 133 179 398 1-4 family residential: Charge-off — — — — — — — — Recovery — — — — — 1 — 1 Total 1-4 family residential — — — — — 1 — 1 Consumer: Charge-off — — (8) (95) — — — (103) Recovery 3 — — — — 1 — 4 Total consumer 3 — (8) (95) — 1 — (99) Other: Charge-off — — — — — — — — Recovery — — — 1 — — — 1 Total other — — — 1 — — — 1 Total $ 3 $ 2 $ 79 $ (107) $ 10 $ 135 $ 179 $ 301 Activity in the total ACL for loans for the three months ended March 31, 2020 and 2019, was as follows: Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total March 31, 2020 Beginning balance $ 7,671 $ 7,975 $ 4,446 $ 2,257 $ 1,699 $ 388 $ 74 $ 770 $ 25,280 Impact of CECL adoption 852 (140) 100 (275) 294 (25) 64 4 874 Provision (recapture) for credit losses for loans 614 1,741 1,249 447 420 213 (9) 64 4,739 Charge-offs (30) — — — — (103) — — (133) Recoveries 428 — — 1 — 4 — 1 434 Net (charge-offs) recoveries 398 — — 1 — (99) — 1 301 Ending balance $ 9,535 $ 9,576 $ 5,795 $ 2,430 $ 2,413 $ 477 $ 129 $ 839 $ 31,194 Period-end amount allocated to: Specific reserve $ 409 $ — $ — $ — $ — $ — $ — $ — $ 409 General reserve 9,126 9,576 5,795 2,430 2,413 477 129 839 30,785 Total $ 9,535 $ 9,576 $ 5,795 $ 2,430 $ 2,413 $ 477 $ 129 $ 839 $ 31,194 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total March 31, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision (recapture) for credit losses for loans 903 52 402 (33) (54) (36) (12) (75) 1,147 Charge-offs (280) — — — — (4) — — (284) Recoveries 74 2 — 1 — 10 — — 87 Net (charge-offs) recoveries (206) 2 — 1 — 6 — — (197) Ending balance $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 Period-end amount allocated to: Specific reserve $ 582 $ 33 $ — $ 77 $ — $ — $ — $ 96 $ 788 General reserve 7,834 6,751 4,700 2,172 1,457 357 50 534 23,855 Total $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 The ACL for loans by loan class as of the periods indicated was as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 9,535 30.6 % $ 7,671 30.3 % Real estate: Commercial real estate 9,576 30.7 % 7,975 31.6 % Construction and development 5,795 18.6 % 4,446 17.6 % 1-4 family residential 2,430 7.8 % 2,257 8.9 % Multi-family residential 2,413 7.7 % 1,699 6.7 % Consumer 477 1.5 % 388 1.5 % Agriculture 129 0.4 % 74 0.3 % Other 839 2.7 % 770 3.1 % Total allowance for credit losses for loans $ 31,194 100.0 % $ 25,280 100.0 % Allocation of a portion of the ACL to one class of loans above does not preclude its availability to absorb losses in other classes. The loans evaluated individually and the related specific ACL at the dates shown below were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Loans evaluated individually Commercial and industrial $ 1,528 $ 409 $ 1,119 $ 999 $ 416 $ 583 Commercial real estate 5,818 — 5,818 1,404 — 1,404 Construction and development 519 — 519 — — — 1-4 family residential 3,703 — 3,703 3,651 15 3,636 Consumer — — — 210 — 210 Other 8,267 — 8,267 6,653 6 6,647 Total $ 19,835 $ 409 $ 19,426 $ 12,917 $ 437 $ 12,480 At March 31, 2020, the Company had one 1-4 family residential collateral dependent loan with a principal balance of $32,000. (Dollars in thousands) March 31, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 310 Ending balance $ 3,669

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	3 Months Ended
	Mar. 31, 2020
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 7: PREMISES AND EQUIPMENT The components of premises and equipment as of the dates shown below were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 53,874 53,869 Furniture and equipment 16,022 15,917 Vehicles 203 203 Construction in progress 343 343 83,908 83,798 Less accumulated depreciation (33,665) (32,923) Premises and equipment, net $ 50,243 $ 50,875 Depreciation expense was $775,000 and $824,000 for the three months ended March 31, 2020 and 2019, respectively, which is included in net occupancy expense on the Company’s condensed consolidated statements of income.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at March 31, 2020 and December 31, 2019 and there were no changes in goodwill during the three months ended March 31, 2020 or the year ended December 31, 2019. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at March 31, 2020 or December 31, 2019. Other intangibles, net of accumulated amortization, were as follows as of the dates shown below: Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2020 Core deposits 3.9 years $ 13,750 $ (13,069) $ 681 Customer relationships 8.8 years 6,629 (2,762) 3,867 Servicing assets 11.2 years 341 (189) 152 Total other intangible assets, net $ 20,720 $ (16,020) $ 4,700 December 31, 2019 Core deposits 4.2 years $ 13,750 $ (12,979) $ 771 Customer relationships 9.0 years 6,629 (2,651) 3,978 Servicing assets 12.8 years 368 (179) 189 Total other intangible assets, net $ 20,747 $ (15,809) $ 4,938 Servicing Assets Changes in the related servicing assets as of the dates indicated below were as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 9 14 Decrease from serviced loans paid off or foreclosed (26) (19) Amortization (20) (8) Balance at end of period $ 152 $ 153

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	3 Months Ended
	Mar. 31, 2020
BANK OWNED LIFE INSURANCE.
BANK OWNED LIFE INSURANCE	NOTE 9: BANK OWNED LIFE INSURANCE Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions — — Net change in cash surrender value 416 430 Balance at end of period $ 72,297 $ 71,955

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2020
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Interest-bearing demand accounts $ 359,943 $ 369,744 Money market accounts 760,036 805,942 Saving accounts 90,227 92,183 Certificates and other time deposits, $100,000 or greater 212,341 208,018 Certificates and other time deposits, less than $100,000 174,145 191,640 Total interest-bearing deposits 1,596,692 1,667,527 Noninterest-bearing deposits 1,195,541 1,184,861 Total deposits $ 2,792,233 $ 2,852,388 At March 31, 2020 and December 31, 2019, the Company had $60.4 million and $56.8 million in deposits from public entities and brokered deposits of $112.4 million and $128.9 million, respectively. Accrued interest payable for deposits was $976,000 and $931,000 at March 31, 2020 and December 31, 2019 and is included in other liabilities in the condensed consolidated balance sheets. The Company had no major concentrations of deposits at March 31, 2020 or December 31, 2019 from any single or related groups of depositors.

LINES OF CREDIT

LINES OF CREDIT	3 Months Ended
	Mar. 31, 2020
LINES OF CREDIT
LINES OF CREDIT	NOTE 11: LINES OF CREDIT Frost Line of Credit The Company has entered into a loan agreement with Frost Bank, or Loan Agreement, which has been periodically amended and provides for a $30.0 million revolving line of credit, or Line of Credit. At March 31, 2020, there were no outstanding borrowings on this Line of Credit and the Company did not draw on this Line of Credit during 2019. The Company can make draws on the Line of Credit for a period of 24 months, which began on December 13, 2019, 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 over 24 months beginning December 13, 2019, 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, 2026. The Company may prepay the principal amount of the Line of Credit without premium or penalty. The obligations of the Company under the Loan Agreement are secured by a valid and perfected first priority lien on all of the issued and outstanding shares of capital stock of the Bank. Covenants made under the Loan Agreement include, among other things, the Company maintaining tangible net worth of not less than $300 million, the Company maintaining a free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank’s Texas Ratio (as defined in the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at March 31, 2020. Additional Lines of Credit The Federal Home Loan Bank allows the Company to borrow on a blanket floating lien status collateralized by certain loans. Total borrowing capacity available under this agreement was $1.0 billion at both March 31, 2020 and December 31, 2019. Federal Home Loan Bank advances outstanding totaled $50.0 million both March 31, 2020 and December 31, 2019, and these borrowings were on a long-term basis. See maturity information below. There were no borrowings under this agreement during the three months ended March 31, 2020. During the three months ended March 31, 2019, the Company borrowed under this agreement on a short-term basis. The average outstanding balance for Federal Home Loan Bank advances for the three months ended March 31, 2020 and 2019, was $50.0 million and $9.7 million, respectively. The weighted-average rate for the three months ended March 31, 2020 and 2019, was 1.78% and 2.67%, respectively. The scheduled maturities of Federal Home Loan Bank advances as of the date shown below were as follows: (Dollars in thousands) March 31, 2020 2020 $ — 2021 — 2022 10,000 2023 20,000 2024 20,000 Thereafter — Total $ 50,000 At March 31, 2020 and December 31, 2019, 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 at March 31, 2020 or December 31, 2019.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12: 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 who 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 $155.8 million and $158.7 million in loans to related parties at March 31, 2020 and December 31, 2019, respectively. At March 31, 2020 and December 31, 2019, there were no loans made to related parties deemed nonaccrual, past due, restructured in a trouble debt restructuring or classified as potential problem loans. Unfunded Commitments —At March 31, 2020 and December 31, 2019, the Company had approximately $52.2 million and $48.7 million in unfunded loan commitments to related parties, respectively. Deposits —The Company held related party deposits of approximately $233.8 million and $233.9 million at March 31, 2020 and December 31, 2019, respectively.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2020
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES	NOTE 13: 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 three months ended March 31, 2020 and the year ended December 31, 2019, 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. Equity Securities Available for Sale —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: (Dollars in thousands) March 31, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,171 $ 1,147 Level 2 inputs: Debt securities available for sale State and municipal securities 50,886 53,279 U.S. Agency Securities: Collateralized mortgage obligations 53,065 55,989 Mortgage-backed securities 128,892 120,847 Interest rate swaps 9,092 2,638 Total fair value of financial assets $ 243,106 $ 233,900 Fair value of financial liabilities: Level 2 inputs: interest rate swaps $ 9,092 $ 2,638 Total fair value of financial liabilities $ 9,092 $ 2,638 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. Financial assets measured at fair value on a non-recurring basis during the dates shown below include certain loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral or a discounted cash flow method if not. Prior to foreclosure, estimated fair values for collateral is estimated based on Level 3 inputs based on customized discounting criteria. The Company’s financial assets measured at fair value on a non-recurring basis are certain impaired loans and as of the dates shown below were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs Loans evaluated individually Commercial and industrial $ 1,528 $ 409 $ 1,119 $ 999 $ 416 $ 583 1-4 family residential 3,703 — 3,703 3,651 15 3,636 Other 8,267 — 8,267 6,653 6 6,647 $ 13,498 $ 409 $ 13,089 $ 11,303 $ 437 $ 10,866 Non-Financial Assets and Non-Financial Liabilities Measured on a Non-recurring Basis The Company’s non-financial assets measured at fair value on a non-recurring basis for the periods reported are foreclosed assets (upon initial recognition or subsequent impairment). The Company’s other non-financial assets whose fair value may be measured on a non-recurring basis when there is evidence of impairment and may be subject to impairment adjustments include goodwill and intangible assets, among other assets. The fair value of foreclosed assets may be estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria less estimated selling costs. There were no write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure during the three months ended March 31, 2020 and during 2019. There were no outstanding foreclosed assets at March 31, 2020 and December 31, 2019. Financial Instruments Reported at Amortized Cost Fair market values and carrying amounts of financial instruments that are reported at cost as of the dates shown below were as follows: March 31, 2020 December 31, 2019 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 284,898 $ 284,898 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 72,297 72,297 71,881 71,881 Accrued interest receivable 8,653 8,653 8,742 8,742 Servicing asset 152 152 189 189 Level 3 inputs: Loans, including held for sale, net 2,611,139 2,641,275 2,654,362 2,615,268 Other investments 16,807 16,807 16,710 16,710 Total financial assets $ 2,993,946 $ 3,024,082 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,214,222 $ 1,195,541 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,595,014 1,596,692 1,651,359 1,667,527 Federal Home Loan Bank advances 50,727 50,000 48,822 50,000 Repurchase agreements 1,414 1,415 485 485 Accrued interest payable 1,049 1,049 1,005 1,005 Total financial liabilities $ 2,862,426 $ 2,844,697 $ 2,886,532 $ 2,903,878 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value and as such the fair values shown above are not necessarily indicative of the amounts the Company will realize. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 14: DERIVATIVE FINANCIAL INSTRUMENTS The Company, through the Bank, has outstanding interest rate swap contracts in which the Bank entered into an interest rate swap with a customer and entered into an equal and offsetting interest rate swap with another financial institution at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk of the Bank. The objective of the transactions is to allow the Bank’s customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Bank agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Bank agrees to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. Because the Bank acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and would not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At March 31, 2020 and December 31, 2019, no such deterioration was determined by management. At March 31, 2020 and December 31, 2019, the Company had 22 and 19 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. 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) March 31, 2020 Interest rate swaps with customers Other Assets $ 144,101 $ 9,092 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.90 Interest rate swaps with financial institution Other Liabilities 144,101 (9,092) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.90 Total derivatives $ 288,202 $ — Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) December 31, 2019 Interest rate swaps with customers Other Assets $ 69,189 $ 2,599 4.40% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Interest rate swaps with financial institution Other Assets 5,987 39 4.00% LIBOR 1M + 2.50% 6.71 Interest rate swaps with customers Other Liabilities 5,987 (39) 4.00% LIBOR 1M + 2.50% 6.71 Interest rate swaps with financial institution Other Liabilities 69,189 (2,599) 4.40% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Total derivatives $ 150,352 $ —

OPERATING LEASES

OPERATING LEASES	3 Months Ended
	Mar. 31, 2020
OPERATING LEASES
OPERATING LEASES	NOTE 15: OPERATING LEASES The Company’s lease liabilities represent the Company’s liability to make lease payments under operating leases of office space, stand-alone buildings and land leases, on a discounted basis and at March 31, 2020, totaled $15.4 million. The weighted-average discount rate for the three months ended March 31, 2020 was 3.50%. Right-of-use assets represent the Company’s right to use, or control the use of, leased assets for their lease term and at March 31, 2020, totaled $12.6 million. The weighted-average remaining lease term for operating leases outstanding at March 31, 2020 was 11.1 years. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2020 totaled $481,000. Lease costs for the period shown below were as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 481 $ 461 Short-term lease cost 17 19 Sublease income (25) (6) Total lease cost $ 473 $ 474 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) March 31, 2020 2020 $ 2,140 2021 2,423 2022 2,482 2023 2,405 2024 1,812 Thereafter 9,792 Total undiscounted lease liability 21,054 Less: Discount on cash flows (3,658) Lease signed, but not yet commenced (2,040) Total operating lease liability $ 15,356

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	3 Months Ended
	Mar. 31, 2020
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	NOTE 16: 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: (Dollars in thousands) March 31, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 603,620 $ 652,611 Commitments to extend credit, fixed interest rate 145,160 141,439 $ 748,780 $ 794,050 Standby letters of credit $ 28,440 $ 23,547 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 may 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 .

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	3 Months Ended
	Mar. 31, 2020
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	NOTE 17: EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS Employee Benefit Plans The Company maintains a 401(k) employee benefit plan and substantially all employees that complete three months of service may participate. The Company matches a portion of each employee’s contribution and may, at its discretion, make additional contributions. During the three months ended March 31, 2020 and 2019, the Company contributed $758,000 and $683,000 to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one‑fourth of the incentive bonus amount into a deferred compensation account. The deferred amounts accrue at a market rate of interest and are payable to the employees upon separation from the Bank provided vesting arrangements have been met. At March 31, 2020 and December 31, 2019, the amount payable, including interest, for this deferred plan was approximately $2.7 million and $2.7 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 $313,000 and $335,000 at March 31, 2020 and December 31, 2019, 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 $476,000 and $437,000 at March 31, 2020 and December 31, 2019, 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.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 18: STOCK-BASED COMPENSATION The Company acquired a stock option plan which originated under VB Texas, Inc. as a part of a merger of the two companies. The options granted to employees under this plan 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 to acquire the Company’s common stock at an exchange ratio equal to the acquisition exchange rate for common shares. No options were granted under this plan after October 24, 2016. In May 2014, the Company adopted the 2014 Stock Option Plan, or the 2014 Plan. The 2014 Plan was approved by the Company’s shareholders and limits the number of shares that may be optioned to 1,127,200. The 2014 Plan provides that no options may be granted after May 20, 2024. Options granted under the 2014 Plan expire 10 years from the date of grant and become exercisable in installments over a period of one to five years, beginning on the first anniversary of the date of grant. At March 31, 2020, 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 March 31, 2020, 279,228 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Three Months Ended March 31, 2020 2019 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 213,078 $ 16.92 232,322 $ 16.66 Granted — — — — Exercised (1,524) 10.34 (10,844) 10.68 Forfeited/expired — — — — Outstanding at end of period 211,554 16.97 221,478 16.96 A summary of stock options as of the dates shown below was as follows: March 31, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 161,355 50,199 211,554 Weighted-average exercise price per share $ 15.78 $ 20.81 $ 16.97 Aggregate intrinsic value (in thousands) $ 425 $ 2 $ 427 Weighted-average remaining contractual term (years) 4.7 7.2 5.3 The fair value of the Company’s restricted stock awards is estimated based on the market value of the Company’s common stock at the date of grant. Restricted stock shares are considered fully issued at the time of the grant and the grantee becomes the record owner of the restricted stock and has voting, dividend and other shareholder rights. The shares of restricted stock are non-transferable and subject to forfeiture until the restricted stock vests and any dividends with respect to the restricted stock are subject to the same restrictions, including the risk of forfeiture. Non-performance based restricted stock grants vest over the service period in equal increments over a period of two to five years, beginning on the first anniversary of the date of grant. 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, 2018 181,773 $ 27.05 24,000 $ 34.46 Granted 19,187 32.25 — — Vested (300) 29.27 — — Forfeited — — — — Outstanding at March 31, 2019 200,660 $ 27.54 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 37,107 29.55 — — Vested (6,450) 32.11 — — Forfeited (204) 30.64 — — Outstanding at March 31, 2020 191,896 $ 28.33 18,000 $ 34.46 A summary of restricted stock as of the dates shown below was as follows: March 31, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 191,896 18,000 Weighted-average grant date fair value per share $ 28.33 $ 34.46 Aggregate fair value (in thousands) $ 3,410 $ 320 Weighted-average remaining vesting period (years) 2.6 2.6 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 subject to options exercised, restricted stock vested, shares withheld, and shares issued were as follows: Exercised/Vested Shares Withheld Shares Issued Three Months Ended March 31, 2020 Stock options 1,524 — 1,524 Non-performance based restricted stock 6,450 (1,218) 5,232 Performance-based restricted stock — — — Three Months Ended March 31, 2019 Stock options 10,844 — 10,844 Non-performance based restricted stock 300 (89) 211 Performance-based restricted stock — — — For the three months ended March 31, 2020 and 2019, stock compensation expense was $557,000 and $545,000, respectively. As of March 31, 2020, there was approximately $5.3 million of total unrecognized compensation expense related to the unvested stock options, non-performance based restricted stock and performance-based restricted stock, which is expected to be recognized in the Company’s consolidated statements of income over a weighted-average period of 2.5 years.

REGULATORY MATTERS

REGULATORY MATTERS	3 Months Ended
	Mar. 31, 2020
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 19: 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 capital. Common Equity Tier 1 capital for both the Company and the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. 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, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk‑weighted assets of at least 7.0%), (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, effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (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, effectively resulting in a minimum total capital ratio of 10.5%); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. 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. In October 2019, the federal bank regulatory agencies, or the Agencies, issued a final rule, the Community Bank Leverage Ratio Framework, or the Framework, to simplify capital calculations for community banks. The Framework provides for a simple measure of capital adequacy for certain community banking organizations and is consistent with Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act. The Framework is optional and is designed to reduce burden by removing requirements for calculating and reporting risk-based capital ratios. Depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9%, are considered qualifying community banking organizations and are eligible to opt into the Framework. The final rule became effective January 1, 2020, and organizations that opt into the Framework and meet the criteria established by the rule can use the Framework for regulatory reports for the quarter ending March 31, 2020. In April 2020, the Agencies announced two interim final rules to provide relief associated with Section 4012 of the Coronavirus Aid, Relief and Economic Security Act. For institutions that elect the Framework, the interim rules temporarily lower the leverage ratio requirement to 8% for the second quarter of 2020 through the end of calendar year 2020 and to 8.5% for the 2021 calendar year. An institution will have until January 1, 2022 before the 9% leverage ratio requirement is re-established. The Company has elected not to opt into the Framework and will continue to compute regulatory capital ratios based on the Basel III Capital Rules discussed above. In March 2020, the Agencies issued an interim final rule that allows banking organizations to mitigate the effects of CECL on their regulatory capital computations. This interim rule is in addition to the three-year transition period already in place under the capital transition rule previously issued in February 2019. Banking organizations that are required under U.S. accounting standards to adopt CECL in 2020 can mitigate the estimated cumulative regulatory capital effects for an additional two years. This rule allows an institution to defer the full effect of adopting CECL in January 2020 and transitioning that impact into its regulatory capital calculation, including ratios, over an extended period. Additionally, the interim rule extends the transition period whereby an institution can defer the impact from CECL on the current period, determined based on the difference between the new CECL ACL and the allowance for loan losses under the incurred loss method from previous GAAP, for up to two years. The total impact related to CECL would then be transitioned into regulatory capital and the associated ratios over a three-year transition period, beginning after the initial two-year deferral period, for a total transition period of five years. The Company has elected not to opt into the transition election and has reported the full effect of CECL upon adoption and for the current reporting period in its regulatory capital calculation and ratios. The Company is subject to the regulatory capital requirements administered by the Federal Reserve and, for the Bank, those administered by the OCC. Regulatory authorities can initiate certain mandatory actions if the Company or the Bank fail to meet the minimum capital requirements, which could have a direct material effect on the Company’s financial statements. Management believes, as of March 31, 2020 and December 31, 2019, that the Company and the Bank met all capital adequacy requirements to which they were subject. At March 31, 2020 and December 31, 2019, 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 Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 445,818 $ 204,968 N/A N/A Bank Only $ 408,922 $ 204,950 $ 190,311 Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 445,818 $ 248,889 N/A N/A Bank Only $ 408,922 $ 248,868 $ 234,229 Total Capital to Risk-Weighted Assets: Consolidated $ 480,681 $ 307,451 N/A N/A Bank Only $ 443,785 $ 307,425 $ 292,786 Tier 1 Leverage Capital to Average Assets: Consolidated $ 445,819 $ 135,334 N/A N/A Bank Only $ 408,922 $ 135,307 $ 169,133 December 31, 2019 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 448,445 $ 202,218 N/A N/A Bank Only $ 406,675 $ 202,203 $ 187,760 Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 448,445 $ 245,550 N/A N/A Bank Only $ 406,675 $ 245,532 $ 231,089 Total Capital to Risk-Weighted Assets: Consolidated $ 474,104 $ 303,327 N/A N/A Bank Only $ 432,334 $ 303,304 $ 288,861 Tier 1 Leverage Capital to Average Assets: Consolidated $ 448,445 $ 136,798 N/A N/A Bank Only $ 406,675 $ 136,754 $ 170,943 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	3 Months Ended
	Mar. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 20: INCOME TAXES The provision for income tax expense and effective tax rates for the periods shown below was as follows: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Income tax expense $ 1,868 $ 2,599 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	3 Months Ended
	Mar. 31, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 21: EARNINGS PER SHARE The computation of basic and diluted earnings per share for the periods shown was as follows: Three Months Ended March 31, (Dollars in thousands, except per share data) 2020 2019 Net income for common shareholders $ 7,541 $ 10,490 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,926 24,910 Dilutive effect of outstanding stock options and unvested restricted stock awards 74 144 Diluted weighted-average shares outstanding 25,000 25,054 Earnings per share: Basic $ 0.30 $ 0.42 Diluted $ 0.30 $ 0.42

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three months ended March 31, 2020 and 2019, and consolidated cash flows for the three months ended March 31, 2020 and 2019. 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, 2019 included within the Company’s Annual Report on Form 10-K. Reclassification—Within noninterest expense for 2019, data processing and software have been combined together. In addition, printing, stationary and office, correspondent bank and customer related transaction fees, loan processing costs and repossessed real estate and other asset expenses have been combined with other expenses. These reclassifications were made to conform to the 2020 financial statement presentation in the condensed consolidated statements of income.
Share Repurchase Program	Share Repurchase Program During the three months ended March 31, 2020, 240,445 shares were repurchased under the Company’s share repurchase program at an average price of $22.29 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 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments effective January 1, 2020. The scope of ASU 2016-13 includes loans, debt securities classified as held to maturity, other receivables, off-balance sheet credit exposures and any other financial assets not excluded from the scope that have the contractual right to receive cash. In addition, ASU 2016-13 amends the accounting and reporting for credit losses on available for sale securities. 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. As part of the implementation of ASU 2016-13, the Company changed its methodology of determining the allowance for credit losses, or ACL, for loans and for determining an ACL associated with the Company’s off-balance sheet credit exposures, which are primarily unfunded commitments to borrowers. Through a one-time cumulative effect reduction of retained earnings of $3.0 million, the adoption of ASU 2016-13 increased the ACL for loans by $874,000, increased the liability related to the ACL for unfunded commitments by $2.9 million, with the associated deferred tax assets increasing by $809,000. The adoption of ASU 2016-13 did not have any impact on held-to-maturity securities as the Company did not hold any as of January 1, 2020. Additionally, the Company assessed the impact of ASU 2016-13 on its available for sale securities utilizing various qualitative factors and determined there were no credit losses within the portfolio requiring an allowance upon adoption. The Company did not have any purchased financial assets with credit deterioration as of January 1, 2020. See Note 6 —Allowance for Credit Losses for further discussion related to ASC 2016-13 and related disclosures.
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate, or LIBOR, or another reference rate expected to be discontinued, if certain criteria are met. LIBOR is used as an index rate for the Company’s interest-rate swaps and approximately 12.9% of the Company’s loans as of March 31, 2020. If reference rates are discontinued, the existing contracts will be modified to replace the discontinued rate with a replacement rate. For accounting purposes, such contract modifications would have to be evaluated to determine whether the modified contract is a new contract or a continuation of an existing contract. If they are considered new contracts, the previous contract would be extinguished. Under one of the optional expedients of ASU 2020-04, modifications of contracts within the scope of Topic 310, Receivables, and 470, Debt, will be accounted for by prospectively adjusting the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the impact of this pronouncement on those financial assets where LIBOR is used as an index rate.
Cash Flow Reporting	Cash Flow Reporting The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $17.2 million and $18.6 million at March 31, 2020 and December 31, 2019, respectively. Additionally, as of March 31, 2020 and December 31, 2019, the Company had $9.3 million and $3.1 million, respectively, in cash collateral for interest rate swap transactions. The reserves maintained with the Federal Reserve Bank and the cash collateral used in interest rate swap transactions are considered restricted cash. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest 3,944 3,599 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease liabilities — 13,208 Dividends accrued 5 1,268 Repossessed real estate and other assets — 41

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Three Months Ended March 31, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ — $ — Cash paid for interest 3,944 3,599 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease liabilities — 13,208 Dividends accrued 5 1,268 Repossessed real estate and other assets — 41

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
SECURITIES.
The amortized cost and estimated fair values of investments in securities	Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2020 Debt securities available for sale: State and municipal securities $ 48,988 $ 1,898 $ — $ 50,886 U.S. agency securities: Collateralized mortgage obligations 51,433 1,632 — 53,065 Mortgage-backed securities 124,370 4,522 — 128,892 Equity securities 1,161 10 — 1,171 Total $ 225,952 $ 8,062 $ — $ 234,014 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019 Debt securities available for sale: State and municipal securities $ 51,525 $ 1,761 $ (7) $ 53,279 U.S. agency securities: Collateralized mortgage obligations 55,784 324 (119) 55,989 Mortgage-backed securities 119,787 1,315 (255) 120,847 Equity securities 1,155 — (8) 1,147 Total $ 228,251 $ 3,400 $ (389) $ 231,262
Schedule of amortized cost and estimated fair value of securities by contractual maturities	Available for Sale Amortized Fair (Dollars in thousands) Cost Value March 31, 2020 Amounts maturing in: 1 year or less $ 1,759 $ 1,776 1 year through 5 years 3,050 3,131 5 years through 10 years 15,042 15,536 After 10 years 206,101 213,571 $ 225,952 $ 234,014 December 31, 2019 Amounts maturing in: 1 year or less $ 2,535 $ 2,532 1 year through 5 years 3,081 3,145 5 years through 10 years 14,564 14,874 After 10 years 208,071 210,711 $ 228,251 $ 231,262
Information pertaining to securities with gross unrealized losses	Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses March 31, 2020 Debt securities available for sale: State and municipal securities $ 489 $ — $ — $ — U.S. agency securities: Collateralized mortgage obligations — — — — Mortgage-backed securities — — — — Equity securities — — — — $ 489 $ — $ — $ — December 31, 2019 Debt securities available for sale: State and municipal securities $ 3,539 $ (7) $ 106 $ — U.S. agency securities: Debt securities — — — Collateralized mortgage obligations 10,687 (46) 7,994 (73) Mortgage-backed securities 11,628 (26) 21,745 (229) Equity securities — — 1,147 (8) $ 25,854 $ (79) $ 30,992 $ (310)

EQUITY INVESTMENTS (Tables)

EQUITY INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
EQUITY INVESTMENTS
Schedule of equity investments that do not have readily determinable fair values	(Dollars in thousands) March 31, 2020 December 31, 2019 Federal Reserve stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 4,286 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,109 3,049 $ 16,807 $ 16,710

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2020
LOANS
Loans, by portfolio segment	(Dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 542,650 $ 527,607 Real estate: Commercial real estate 904,395 900,746 Construction and development 558,343 527,812 1-4 family residential 276,142 280,192 Multi-family residential 267,152 277,209 Consumer 38,133 36,782 Agriculture 7,520 9,812 Other 84,076 86,513 Total gross loans 2,678,411 2,646,673 Less allowance for credit losses for loans (31,194) (25,280) Less deferred loan fees and unearned discounts (5,942) (6,125) Less loans held for sale (882) (1,463) Loans, net $ 2,640,393 $ 2,613,805
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period March 31, 2020 Commercial real estate $ 2,500 $ — March 31, 2019 Commercial real estate $ 1,256 $ —

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	3 Months Ended
	Mar. 31, 2020
LOAN PERFORMANCE
Nonaccrual loans, segregated by loan class	(Dollars in thousands) March 31, 2020 December 31, 2019 Commercial and industrial $ 449 $ 596 Real estate: Commercial real estate 67 67 Construction and development 519 — 1-4 family residential 413 314 Total nonaccrual loans $ 1,448 $ 977
Aging analysis of loans past due segregated by loan class	90 days or 90 days 30 to 59 days 60 to 89 days greater Total past Total current past due and (Dollars in thousands) past due past due past due due loans Total loans still accruing March 31, 2020 Commercial and industrial $ 1,549 $ 7 $ — $ 1,556 $ 541,094 $ 542,650 $ — Real estate: Commercial real estate 1,532 — — 1,532 902,863 904,395 — Construction and development 2,973 — — 2,973 555,370 558,343 — 1-4 family residential 133 — 32 165 275,977 276,142 — Multi-family residential — — — — 267,152 267,152 — Consumer 15 — — 15 38,118 38,133 — Agriculture — — — — 7,520 7,520 — Other — — — 84,076 84,076 Total loans $ 6,202 $ 7 $ 32 $ 6,241 $ 2,672,170 $ 2,678,411 $ — December 31, 2019 Commercial and industrial $ 664 $ 31 $ 240 $ 935 $ 526,672 $ 527,607 $ — Real estate: Commercial real estate 865 — 865 899,881 900,746 — Construction and development — 532 — 532 527,280 527,812 — 1-4 family residential 499 — 499 279,693 280,192 — Multi-family residential — — — — 277,209 277,209 — Consumer 43 — — 43 36,739 36,782 — Agriculture — — — — 9,812 9,812 — Other — — — 86,513 86,513 — Total loans $ 2,071 $ 563 $ 240 $ 2,874 $ 2,643,799 $ 2,646,673 $ —
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 March 31, 2020 Commercial and industrial 3 $ 657 $ 426 $ — $ 231 $ — Commercial real estate 3 4,813 4,813 — — — Total 6 $ 5,470 $ 5,239 $ — $ 231 $ —

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
ALLOWANCE FOR CREDIT LOSSES
Loans by risk grades, loan class and vintage	The loans by risk grades, loan class and vintage at March 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 16,734 $ 120,547 $ 67,560 $ 19,418 $ 12,466 $ 9,688 $ 270,877 $ 11,585 $ 528,875 Special mention 33 266 — 15 — — 436 — 750 Substandard 1,000 786 464 39 354 2,406 4,012 3,964 13,025 Total commercial and industrial 17,767 121,599 68,024 19,472 12,820 12,094 275,325 15,549 542,650 Commercial real estate: Pass 57,116 213,693 214,659 139,415 86,079 129,764 36,851 2,322 879,899 Special mention — — — — 1,587 — — 11,000 12,587 Substandard — 1,926 4,967 216 1,600 3,200 — — 11,909 Total commercial real estate 57,116 215,619 219,626 139,631 89,266 132,964 36,851 13,322 904,395 Construction and development: Pass 35,419 184,260 196,235 45,597 8,477 35,240 40,564 — 545,792 Substandard — 519 1,500 10,532 — — — — 12,551 Total construction and development 35,419 184,779 197,735 56,129 8,477 35,240 40,564 — 558,343 1-4 family residential: Pass 7,110 35,961 66,602 49,164 27,973 70,808 11,094 1,277 269,989 Special mention — — 40 — 392 386 — — 818 Substandard — 547 — 249 20 3,034 — 1,485 5,335 Total 1-4 family residential 7,110 36,508 66,642 49,413 28,385 74,228 11,094 2,762 276,142 Multi-family residential: Pass 7,770 8,527 23,743 50,750 4,361 172,001 — — 267,152 Total multi-family residential 7,770 8,527 23,743 50,750 4,361 172,001 — — 267,152 Consumer: Pass 3,020 6,506 3,443 2,528 323 411 19,689 2,208 38,128 Substandard — — — — — 5 — — 5 Total consumer 3,020 6,506 3,443 2,528 323 416 19,689 2,208 38,133 Agriculture: Pass 936 1,701 547 162 38 5 3,975 79 7,443 Substandard — — — — — 27 50 — 77 Total agriculture 936 1,701 547 162 38 32 4,025 79 7,520 Other: Pass 623 15,233 5,026 162 128 1,551 35,662 17,424 75,809 Substandard — — 1,381 — 1,241 — 5,645 — 8,267 Total other 623 15,233 6,407 162 1,369 1,551 41,307 17,424 84,076 Total $ 129,761 $ 590,472 $ 586,167 $ 318,247 $ 145,039 $ 428,526 $ 428,855 $ 51,344 $ 2,678,411
Loans by risk grades and loan class	Special (Dollars in thousands) Pass Mention Substandard Total Loans December 31, 2019 Commercial and industrial $ 513,417 $ 2,963 $ 11,227 $ 527,607 Real estate: Commercial real estate 876,207 18,570 5,969 900,746 Construction and development 515,247 12,565 — 527,812 1-4 family residential 274,731 594 4,867 280,192 Multi-family residential 277,209 — — 277,209 Consumer 36,566 — 216 36,782 Agriculture 9,733 50 29 9,812 Other 79,860 — 6,653 86,513 Total loans $ 2,582,970 $ 34,742 $ 28,961 $ 2,646,673
Schedule of Charge-offs and recoveries by loan type and vintage	Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ — $ (29) $ — $ — $ (1) $ (30) Recovery — 2 87 16 10 133 180 428 Total commercial and industrial — 2 87 (13) 10 133 179 398 1-4 family residential: Charge-off — — — — — — — — Recovery — — — — — 1 — 1 Total 1-4 family residential — — — — — 1 — 1 Consumer: Charge-off — — (8) (95) — — — (103) Recovery 3 — — — — 1 — 4 Total consumer 3 — (8) (95) — 1 — (99) Other: Charge-off — — — — — — — — Recovery — — — 1 — — — 1 Total other — — — 1 — — — 1 Total $ 3 $ 2 $ 79 $ (107) $ 10 $ 135 $ 179 $ 301
Activity in the total allowance for credit losses for loans	Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total March 31, 2020 Beginning balance $ 7,671 $ 7,975 $ 4,446 $ 2,257 $ 1,699 $ 388 $ 74 $ 770 $ 25,280 Impact of CECL adoption 852 (140) 100 (275) 294 (25) 64 4 874 Provision (recapture) for credit losses for loans 614 1,741 1,249 447 420 213 (9) 64 4,739 Charge-offs (30) — — — — (103) — — (133) Recoveries 428 — — 1 — 4 — 1 434 Net (charge-offs) recoveries 398 — — 1 — (99) — 1 301 Ending balance $ 9,535 $ 9,576 $ 5,795 $ 2,430 $ 2,413 $ 477 $ 129 $ 839 $ 31,194 Period-end amount allocated to: Specific reserve $ 409 $ — $ — $ — $ — $ — $ — $ — $ 409 General reserve 9,126 9,576 5,795 2,430 2,413 477 129 839 30,785 Total $ 9,535 $ 9,576 $ 5,795 $ 2,430 $ 2,413 $ 477 $ 129 $ 839 $ 31,194 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total March 31, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision (recapture) for credit losses for loans 903 52 402 (33) (54) (36) (12) (75) 1,147 Charge-offs (280) — — — — (4) — — (284) Recoveries 74 2 — 1 — 10 — — 87 Net (charge-offs) recoveries (206) 2 — 1 — 6 — — (197) Ending balance $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643 Period-end amount allocated to: Specific reserve $ 582 $ 33 $ — $ 77 $ — $ — $ — $ 96 $ 788 General reserve 7,834 6,751 4,700 2,172 1,457 357 50 534 23,855 Total $ 8,416 $ 6,784 $ 4,700 $ 2,249 $ 1,457 $ 357 $ 50 $ 630 $ 24,643
Allowance for loan losses by loan category	March 31, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 9,535 30.6 % $ 7,671 30.3 % Real estate: Commercial real estate 9,576 30.7 % 7,975 31.6 % Construction and development 5,795 18.6 % 4,446 17.6 % 1-4 family residential 2,430 7.8 % 2,257 8.9 % Multi-family residential 2,413 7.7 % 1,699 6.7 % Consumer 477 1.5 % 388 1.5 % Agriculture 129 0.4 % 74 0.3 % Other 839 2.7 % 770 3.1 % Total allowance for credit losses for loans $ 31,194 100.0 % $ 25,280 100.0 %
Loans evaluated individually and the related specific ACL	March 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Loans evaluated individually Commercial and industrial $ 1,528 $ 409 $ 1,119 $ 999 $ 416 $ 583 Commercial real estate 5,818 — 5,818 1,404 — 1,404 Construction and development 519 — 519 — — — 1-4 family residential 3,703 — 3,703 3,651 15 3,636 Consumer — — — 210 — 210 Other 8,267 — 8,267 6,653 6 6,647 Total $ 19,835 $ 409 $ 19,426 $ 12,917 $ 437 $ 12,480
Schedule of allowance for credit losses for unfunded commitments	(Dollars in thousands) March 31, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 310 Ending balance $ 3,669

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2020
PREMISES AND EQUIPMENT
Schedule of premises and equipment	(Dollars in thousands) March 31, 2020 December 31, 2019 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 53,874 53,869 Furniture and equipment 16,022 15,917 Vehicles 203 203 Construction in progress 343 343 83,908 83,798 Less accumulated depreciation (33,665) (32,923) Premises and equipment, net $ 50,243 $ 50,875

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of intangible assets	Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2020 Core deposits 3.9 years $ 13,750 $ (13,069) $ 681 Customer relationships 8.8 years 6,629 (2,762) 3,867 Servicing assets 11.2 years 341 (189) 152 Total other intangible assets, net $ 20,720 $ (16,020) $ 4,700 December 31, 2019 Core deposits 4.2 years $ 13,750 $ (12,979) $ 771 Customer relationships 9.0 years 6,629 (2,651) 3,978 Servicing assets 12.8 years 368 (179) 189 Total other intangible assets, net $ 20,747 $ (15,809) $ 4,938
Schedule of changes in related servicing assets	Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 9 14 Decrease from serviced loans paid off or foreclosed (26) (19) Amortization (20) (8) Balance at end of period $ 152 $ 153

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	3 Months Ended
	Mar. 31, 2020
BANK OWNED LIFE INSURANCE.
Schedule of change in cash surrender value	Three Months Ended March 31, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions — — Net change in cash surrender value 416 430 Balance at end of period $ 72,297 $ 71,955

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2020
DEPOSITS
Schedule of deposits	(Dollars in thousands) March 31, 2020 December 31, 2019 Interest-bearing demand accounts $ 359,943 $ 369,744 Money market accounts 760,036 805,942 Saving accounts 90,227 92,183 Certificates and other time deposits, $100,000 or greater 212,341 208,018 Certificates and other time deposits, less than $100,000 174,145 191,640 Total interest-bearing deposits 1,596,692 1,667,527 Noninterest-bearing deposits 1,195,541 1,184,861 Total deposits $ 2,792,233 $ 2,852,388

LINES OF CREDIT (Tables)

LINES OF CREDIT (Tables)	3 Months Ended
	Mar. 31, 2020
LINES OF CREDIT
Schedule of maturity of FHLB advances	(Dollars in thousands) March 31, 2020 2020 $ — 2021 — 2022 10,000 2023 20,000 2024 20,000 Thereafter — Total $ 50,000

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2020
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	(Dollars in thousands) March 31, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,171 $ 1,147 Level 2 inputs: Debt securities available for sale State and municipal securities 50,886 53,279 U.S. Agency Securities: Collateralized mortgage obligations 53,065 55,989 Mortgage-backed securities 128,892 120,847 Interest rate swaps 9,092 2,638 Total fair value of financial assets $ 243,106 $ 233,900 Fair value of financial liabilities: Level 2 inputs: interest rate swaps $ 9,092 $ 2,638 Total fair value of financial liabilities $ 9,092 $ 2,638
Summary of certain assets measured on a non‑recurring basis	March 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs Loans evaluated individually Commercial and industrial $ 1,528 $ 409 $ 1,119 $ 999 $ 416 $ 583 1-4 family residential 3,703 — 3,703 3,651 15 3,636 Other 8,267 — 8,267 6,653 6 6,647 $ 13,498 $ 409 $ 13,089 $ 11,303 $ 437 $ 10,866
Summary of fair market values of all financial instruments	March 31, 2020 December 31, 2019 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 284,898 $ 284,898 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 72,297 72,297 71,881 71,881 Accrued interest receivable 8,653 8,653 8,742 8,742 Servicing asset 152 152 189 189 Level 3 inputs: Loans, including held for sale, net 2,611,139 2,641,275 2,654,362 2,615,268 Other investments 16,807 16,807 16,710 16,710 Total financial assets $ 2,993,946 $ 3,024,082 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,214,222 $ 1,195,541 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,595,014 1,596,692 1,651,359 1,667,527 Federal Home Loan Bank advances 50,727 50,000 48,822 50,000 Repurchase agreements 1,414 1,415 485 485 Accrued interest payable 1,049 1,049 1,005 1,005 Total financial liabilities $ 2,862,426 $ 2,844,697 $ 2,886,532 $ 2,903,878

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
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) March 31, 2020 Interest rate swaps with customers Other Assets $ 144,101 $ 9,092 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.90 Interest rate swaps with financial institution Other Liabilities 144,101 (9,092) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.90 Total derivatives $ 288,202 $ — Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) December 31, 2019 Interest rate swaps with customers Other Assets $ 69,189 $ 2,599 4.40% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Interest rate swaps with financial institution Other Assets 5,987 39 4.00% LIBOR 1M + 2.50% 6.71 Interest rate swaps with customers Other Liabilities 5,987 (39) 4.00% LIBOR 1M + 2.50% 6.71 Interest rate swaps with financial institution Other Liabilities 69,189 (2,599) 4.40% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Total derivatives $ 150,352 $ —

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
OPERATING LEASES
Summary of lease costs	Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 481 $ 461 Short-term lease cost 17 19 Sublease income (25) (6) Total lease cost $ 473 $ 474
Summary of maturity analysis of operating lease liabilities	(Dollars in thousands) March 31, 2020 2020 $ 2,140 2021 2,423 2022 2,482 2023 2,405 2024 1,812 Thereafter 9,792 Total undiscounted lease liability 21,054 Less: Discount on cash flows (3,658) Lease signed, but not yet commenced (2,040) Total operating lease liability $ 15,356

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	3 Months Ended
	Mar. 31, 2020
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Summary of the various financial instruments whose contract amounts represent credit risk	(Dollars in thousands) March 31, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 603,620 $ 652,611 Commitments to extend credit, fixed interest rate 145,160 141,439 $ 748,780 $ 794,050 Standby letters of credit $ 28,440 $ 23,547

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
STOCK-BASED COMPENSATION
Schedule of summary of restricted stock	March 31, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 191,896 18,000 Weighted-average grant date fair value per share $ 28.33 $ 34.46 Aggregate fair value (in thousands) $ 3,410 $ 320 Weighted-average remaining vesting period (years) 2.6 2.6
Schedule of shares of stock options exercised and restricted stock vested, shares withheld for taxes and shares issued	Exercised/Vested Shares Withheld Shares Issued Three Months Ended March 31, 2020 Stock options 1,524 — 1,524 Non-performance based restricted stock 6,450 (1,218) 5,232 Performance-based restricted stock — — — Three Months Ended March 31, 2019 Stock options 10,844 — 10,844 Non-performance based restricted stock 300 (89) 211 Performance-based restricted stock — — —
Stock options
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Three Months Ended March 31, 2020 2019 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 213,078 $ 16.92 232,322 $ 16.66 Granted — — — — Exercised (1,524) 10.34 (10,844) 10.68 Forfeited/expired — — — — Outstanding at end of period 211,554 16.97 221,478 16.96
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	March 31, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 161,355 50,199 211,554 Weighted-average exercise price per share $ 15.78 $ 20.81 $ 16.97 Aggregate intrinsic value (in thousands) $ 425 $ 2 $ 427 Weighted-average remaining contractual term (years) 4.7 7.2 5.3
Restricted Stock
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Non-performance Based Performance-based Weighted Weighted Average Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at December 31, 2018 181,773 $ 27.05 24,000 $ 34.46 Granted 19,187 32.25 — — Vested (300) 29.27 — — Forfeited — — — — Outstanding at March 31, 2019 200,660 $ 27.54 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 37,107 29.55 — — Vested (6,450) 32.11 — — Forfeited (204) 30.64 — — Outstanding at March 31, 2020 191,896 $ 28.33 18,000 $ 34.46

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	3 Months Ended
	Mar. 31, 2020
REGULATORY MATTERS
Summary of actual and required capital ratios for the Company and Bank under the Basel III Capital Rules	Minimum Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 445,818 $ 204,968 N/A N/A Bank Only $ 408,922 $ 204,950 $ 190,311 Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 445,818 $ 248,889 N/A N/A Bank Only $ 408,922 $ 248,868 $ 234,229 Total Capital to Risk-Weighted Assets: Consolidated $ 480,681 $ 307,451 N/A N/A Bank Only $ 443,785 $ 307,425 $ 292,786 Tier 1 Leverage Capital to Average Assets: Consolidated $ 445,819 $ 135,334 N/A N/A Bank Only $ 408,922 $ 135,307 $ 169,133 December 31, 2019 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 448,445 $ 202,218 N/A N/A Bank Only $ 406,675 $ 202,203 $ 187,760 Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 448,445 $ 245,550 N/A N/A Bank Only $ 406,675 $ 245,532 $ 231,089 Total Capital to Risk-Weighted Assets: Consolidated $ 474,104 $ 303,327 N/A N/A Bank Only $ 432,334 $ 303,304 $ 288,861 Tier 1 Leverage Capital to Average Assets: Consolidated $ 448,445 $ 136,798 N/A N/A Bank Only $ 406,675 $ 136,754 $ 170,943

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2020
INCOME TAXES
Schedule of provision for income tax expense and effective tax rates	Three Months Ended March 31, (Dollars in thousands) 2020 2019 Income tax expense $ 1,868 $ 2,599 Effective tax rate

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended March 31, (Dollars in thousands, except per share data) 2020 2019 Net income for common shareholders $ 7,541 $ 10,490 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,926 24,910 Dilutive effect of outstanding stock options and unvested restricted stock awards 74 144 Diluted weighted-average shares outstanding 25,000 25,054 Earnings per share: Basic $ 0.30 $ 0.42 Diluted $ 0.30 $ 0.42

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2020location
Number of Operating Segments	35
Houston market area
Number of Operating Segments	19
Beaumont/East Texas market area
Number of Operating Segments	15
Dallas market area
Number of Operating Segments	1

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares repurchased	240,445	0
Shares repurchased and retired, price per share	$ 22.29

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Recently Adopted (Details)	Jan. 01, 2020USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Accounting Standards Recently Adopted
Purchased financial assets with credit deterioration	$ 0
Operating lease right-to-use asset		$ 12,577,000	$ 12,926,000
Operating lease liabilities		$ 15,356,000	$ 15,704,000
LIBOR | Interest rate swaps
Accounting Standards Recently Adopted
Percentage of Loans		12.9
ASU 2016-13
Accounting Standards Recently Adopted
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Cumulative Effect on Retained Earnings, Net of Tax		$ (3,000,000)
Increase in allowance for credit losses	$ 874,000
Allowance for credit losses, unfunded commitments	2,900,000
Fresh-Start Adjustment, Increase (Decrease), Deferred Income Tax Assets, Noncurrent		$ 809,000
Amount of Credit Losses	$ 0
Accounting standards recently adopted	true

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Due from Banks (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve required at federal reserve bank	$ 17.2	$ 18.6
Cash collateral used in interest rate swap transactions	$ 9.3	$ 3.1

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash flow reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 3,944	$ 3,599
Supplemental disclosures of non-cash flow information:
Dividends accrued		13,208
Operating lease right-to-use asset obtained in exchange for lease liabilities	$ 5	1,268
Repossessed real estate and other assets		$ 41

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt securities available for sale:
Amortized cost	$ 225,952	$ 228,251
Fair Value	234,014	231,262
Securities Available for Sale
Debt securities available for sale:
Amortized cost	225,952	228,251
Gross Unrealized Gains	8,062	3,400
Gross Unrealized Losses		(389)
Fair Value	234,014	231,262
Securities Available for Sale | State and municipal securities
Debt securities available for sale:
Amortized cost	48,988	51,525
Gross Unrealized Gains	1,898	1,761
Gross Unrealized Losses		(7)
Fair Value	50,886	53,279
Securities Available for Sale | Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	51,433	55,784
Gross Unrealized Gains	1,632	324
Gross Unrealized Losses		(119)
Fair Value	53,065	55,989
Securities Available for Sale | Mortgage-backed securities
Debt securities available for sale:
Amortized cost	124,370	119,787
Gross Unrealized Gains	4,522	1,315
Gross Unrealized Losses		(255)
Fair Value	128,892	120,847
Securities Available for Sale | Equity securities
Debt securities available for sale:
Amortized cost	1,161	1,155
Gross Unrealized Gains	10
Gross Unrealized Losses		(8)
Fair Value	$ 1,171	$ 1,147

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 1,759	$ 2,535
Amortized cost, 1 year through 5 years	3,050	3,081
Amortized cost, 5 years through 10 years	15,042	14,564
Amortized cost, After 10 years	206,101	208,071
Available-for-sale Securities, Amortized Cost Basis, Total	225,952	228,251
Available for Sale - Fair Value
Estimated fair value, 1 year or less	1,776	2,532
Estimated fair value, 1 year through 5 years	3,131	3,145
Estimated fair value, 5 years through 10 years	15,536	14,874
Estimated fair value, After 10 years	213,571	210,711
Available-for-sale Securities, Total	234,014	231,262
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	225,952	228,251
Available for Sale - Fair Value
Available-for-sale Securities, Total	$ 234,014	$ 231,262

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)item	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)item
SECURITIES.
Securities sold during the year	$ 0
Carrying amount of securities sold in the period		$ 358,000
Carrying value of securities pledged	$ 51,500,000		$ 50,800,000
Securities held in a gross unrealized loss position | item	3		27
Immaterial amount threshold	$ 1,000
Impairment loss on securities	0	$ 0
Accrued interest receivable for securities	$ 674,000		$ 1,100,000

SECURITIES - Securities with un

SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment securities
Fair Value - Less Than Twelve Months	$ 489	$ 25,854
Gross Unrealized Losses - Less Than Twelve Months		(79)
Fair Value - Twelve Months or More		30,992
Gross Unrealized Losses - Twelve Months or More		(310)
State and municipal securities
Investment securities
Fair Value - Less Than Twelve Months	$ 489	3,539
Gross Unrealized Losses - Less Than Twelve Months		(7)
Fair Value - Twelve Months or More		106
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months		10,687
Gross Unrealized Losses - Less Than Twelve Months		(46)
Fair Value - Twelve Months or More		7,994
Gross Unrealized Losses - Twelve Months or More		(73)
Mortgage-backed securities
Investment securities
Fair Value - Less Than Twelve Months		11,628
Gross Unrealized Losses - Less Than Twelve Months		(26)
Fair Value - Twelve Months or More		21,745
Gross Unrealized Losses - Twelve Months or More		(229)
Equity securities
Investment securities
Fair Value - Twelve Months or More		1,147
Gross Unrealized Losses - Twelve Months or More		$ (8)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Equity investments
Equity investments, total	$ 16,807	$ 16,710
Unfunded commitments	4,800	4,900
Federal Reserve stock
Equity investments
Equity investments, total	$ 9,271	9,271
Par value (in dollars per share)	$ 100
Federal Home Loan Bank stock
Equity investments
Equity investments, total	$ 4,286	4,249
Par value (in dollars per share)	$ 100
The Independent Bankers Financial Corporation stock
Equity investments
Equity investments, total	$ 141	141
Community Reinvestment Act investments
Equity investments
Equity investments, total	$ 3,109	$ 3,049

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans
Total loans	$ 2,678,411	$ 2,646,673
Percentage of loan	100.00%	100.00%
Less allowance for credit losses for loans	$ (31,194)	$ (25,280)	$ (24,643)	$ (23,693)
Less deferred loan fees and unearned discounts	(5,942)	(6,125)
Less loans held for sale	$ (882)	$ (1,463)
Loans And Leases Receivable Allowance, Percent	100.00%	100.00%
Loans, net	$ 2,640,393	$ 2,613,805
Accrued interest receivable	7,800	7,500
Commercial and industrial
Loans
Total loans	$ 542,650	$ 527,607
Percentage of loan	20.30%	19.90%
Less allowance for credit losses for loans	$ (9,535)	$ (7,671)	(8,416)	(7,719)
Loans And Leases Receivable Allowance, Percent	30.60%	30.30%
Commercial real estate
Loans
Total loans	$ 904,395	$ 900,746
Percentage of loan	33.80%	34.00%
Less allowance for credit losses for loans	$ (9,576)	$ (7,975)	(6,784)	(6,730)
Loans And Leases Receivable Allowance, Percent	30.70%	31.60%
Construction and development
Loans
Total loans	$ 558,343	$ 527,812
Percentage of loan	20.80%	19.90%
Less allowance for credit losses for loans	$ (5,795)	$ (4,446)	(4,700)	(4,298)
Loans And Leases Receivable Allowance, Percent	18.60%	17.60%
1-4 family residential
Loans
Total loans	$ 276,142	$ 280,192
Percentage of loan	10.30%	10.60%
Less allowance for credit losses for loans	$ (2,430)	$ (2,257)	(2,249)	(2,281)
Loans And Leases Receivable Allowance, Percent	7.80%	8.90%
Multi‑family residential
Loans
Total loans	$ 267,152	$ 277,209
Percentage of loan	10.00%	10.50%
Less allowance for credit losses for loans	$ (2,413)	$ (1,699)	(1,457)	(1,511)
Loans And Leases Receivable Allowance, Percent	7.70%	6.70%
Consumer
Loans
Total loans	$ 38,133	$ 36,782
Percentage of loan	1.40%	1.40%
Less allowance for credit losses for loans	$ (477)	$ (388)	(357)	(387)
Loans And Leases Receivable Allowance, Percent	1.50%	1.50%
Agriculture
Loans
Total loans	$ 7,520	$ 9,812
Percentage of loan	0.30%	0.40%
Less allowance for credit losses for loans	$ (129)	$ (74)	(50)	(62)
Loans And Leases Receivable Allowance, Percent	0.40%	0.30%
Other
Loans
Total loans	$ 84,076	$ 86,513
Percentage of loan	3.10%	3.30%
Less allowance for credit losses for loans	$ (839)	$ (770)	$ (630)	$ (705)
Loans And Leases Receivable Allowance, Percent	2.70%	3.10%

LOANS - Loan participations pur

LOANS - Loan participations purchased and sold and Loans Guaranteed (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Loans
SBA loans that were sold with servicing retained	$ 508,000	$ 818,000
Commercial and industrial
Loans
Participations purchased during the period		$ 1,256,000
Commercial real estate
Loans
Participations purchased during the period	$ 2,500,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Nonaccrual loans
Total nonaccrual loans	$ 1,448	$ 977
Commercial and industrial
Nonaccrual loans
Total nonaccrual loans	449	596
Commercial real estate
Nonaccrual loans
Total nonaccrual loans	67	67
Construction and development
Nonaccrual loans
Total nonaccrual loans	519
1-4 family residential
Nonaccrual loans
Total nonaccrual loans	$ 413	$ 314

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Aging analysis
Total past due	$ 6,241,000		$ 2,874,000
Total current loans	2,672,170,000		2,643,799,000
Total Loans	2,678,411,000		2,646,673,000
Interest income that would have been earned under the original terms of the nonaccrual loans	33,000	$ 48,000
30 to 59 days past due
Aging analysis
Total past due	6,202,000		2,071,000
60 to 89 days past due
Aging analysis
Total past due	7,000		563,000
90 days or greater past due
Aging analysis
Total past due	32,000		240,000
Commercial and industrial
Aging analysis
Total past due	1,556,000		935,000
Total current loans	541,094,000		526,672,000
Total Loans	542,650,000		527,607,000
Commercial and industrial | 30 to 59 days past due
Aging analysis
Total past due	1,549,000		664,000
Commercial and industrial | 60 to 89 days past due
Aging analysis
Total past due	7,000		31,000
Commercial and industrial | 90 days or greater past due
Aging analysis
Total past due			240,000
Commercial real estate
Aging analysis
Total past due	1,532,000		865,000
Total current loans	902,863,000		899,881,000
Total Loans	904,395,000		900,746,000
Commercial real estate | 30 to 59 days past due
Aging analysis
Total past due	1,532,000		865,000
Construction and development
Aging analysis
Total past due	2,973,000		532,000
Total current loans	555,370,000		527,280,000
Total Loans	558,343,000		527,812,000
Construction and development | 30 to 59 days past due
Aging analysis
Total past due	2,973,000
Construction and development | 60 to 89 days past due
Aging analysis
Total past due			532,000
1-4 family residential
Aging analysis
Total past due	165,000		499,000
Total current loans	275,977,000		279,693,000
Total Loans	276,142,000		280,192,000
1-4 family residential | 30 to 59 days past due
Aging analysis
Total past due	133,000		499,000
1-4 family residential | 90 days or greater past due
Aging analysis
Total past due	32,000
Multi‑family residential
Aging analysis
Total current loans	267,152,000		277,209,000
Total Loans	267,152,000		277,209,000
Consumer
Aging analysis
Total past due	15,000		43,000
Total current loans	38,118,000		36,739,000
Total Loans	38,133,000		36,782,000
Consumer | 30 to 59 days past due
Aging analysis
Total past due	15,000		43,000
Agriculture
Aging analysis
Total current loans	7,520,000		9,812,000
Total Loans	7,520,000		9,812,000
Other
Aging analysis
Total current loans	84,076,000		86,513,000
Total Loans	$ 84,076,000		$ 86,513,000

LOAN PERFORMANCE - Restructured

LOAN PERFORMANCE - Restructured loans (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019loan	Dec. 31, 2019USD ($)
Restructured loans
Number of loans	6,000	0
Pre‑modification outstanding Recorded Investment	$ 5,470,000
Recorded investment in troubled debt restructurings	15,900,000		$ 8,800,000
Restructured loans that are nonaccrual status	1,000,000		393,000
Restructured loans accruing interest	14,900,000		8,400,000
Commitment to loan additional funds	0		$ 2,000,000
Loans modified as a troubled debt restructured loan			0
Restructured Payments
Restructured loans
Post‑modification recorded investment	5,239,000
Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	231,000
One-month to six-month deferral periods
Restructured loans
Recorded investment in troubled debt restructurings	$ 936,000
Commercial and industrial
Restructured loans
Number of loans	3,000
Pre‑modification outstanding Recorded Investment	$ 657,000
Commercial and industrial | Restructured Payments
Restructured loans
Post‑modification recorded investment	426,000
Commercial and industrial | Extended Maturity and Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 231,000
1-4 family residential
Restructured loans
Number of loans	3,000
Pre‑modification outstanding Recorded Investment	$ 4,813,000
1-4 family residential | Restructured Payments
Restructured loans
Post‑modification recorded investment	$ 4,813,000

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details)	Jan. 01, 2020	Mar. 31, 2020segment
Financing Receivable, Recorded Investment [Line Items]
Number of portfolio segments		16
ASU 2016-13
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)		1.16
Minimum | ASU 2016-13
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)	0.96
Total factors (as a percent)	0.67	0.85
Maximum | ASU 2016-13
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)	0.99
Total factors (as a percent)	2.42	2.61

ALLOWANCE FOR CREDIT LOSSES - L

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
2020	$ 129,761
2019	590,472
2018	586,167
2017	318,247
2016	145,039
Prior	428,526
Revolving Loans	428,855
Converted revolving loan	51,344
Total Loans	2,678,411	$ 2,646,673
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	542,650	527,607
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	904,395	900,746
Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	558,343	527,812
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	276,142	280,192
Multi‑family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	267,152	277,209
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	38,133	36,782
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,520	9,812
Other
Financing Receivable, Recorded Investment [Line Items]
Total Loans	84,076	86,513
Loans by risk grades
Financing Receivable, Recorded Investment [Line Items]
Total Loans		2,646,673
Loans by risk grades | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	17,767
2019	121,599
2018	68,024
2017	19,472
2016	12,820
Prior	12,094
Revolving Loans	275,325
Converted revolving loan	15,549
Total Loans	542,650	527,607
Loans by risk grades | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	57,116
2019	215,619
2018	219,626
2017	139,631
2016	89,266
Prior	132,964
Revolving Loans	36,851
Converted revolving loan	13,322
Total Loans	904,395	900,746
Loans by risk grades | Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	35,419
2019	184,779
2018	197,735
2017	56,129
2016	8,477
Prior	35,240
Revolving Loans	40,564
Total Loans	558,343	527,812
Loans by risk grades | 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	7,110
2019	36,508
2018	66,642
2017	49,413
2016	28,385
Prior	74,228
Revolving Loans	11,094
Converted revolving loan	2,762
Total Loans	276,142	280,192
Loans by risk grades | Multi‑family residential
Financing Receivable, Recorded Investment [Line Items]
2020	7,770
2019	8,527
2018	23,743
2017	50,750
2016	4,361
Prior	172,001
Total Loans	267,152	277,209
Loans by risk grades | Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	3,020
2019	6,506
2018	3,443
2017	2,528
2016	323
Prior	416
Revolving Loans	19,689
Converted revolving loan	2,208
Total Loans	38,133	36,782
Loans by risk grades | Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	936
2019	1,701
2018	547
2017	162
2016	38
Prior	32
Revolving Loans	4,025
Converted revolving loan	79
Total Loans	7,520	9,812
Loans by risk grades | Other
Financing Receivable, Recorded Investment [Line Items]
2020	623
2019	15,233
2018	6,407
2017	162
2016	1,369
Prior	1,551
Revolving Loans	41,307
Converted revolving loan	17,424
Total Loans	84,076	86,513
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans		2,582,970
Pass | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	16,734
2019	120,547
2018	67,560
2017	19,418
2016	12,466
Prior	9,688
Revolving Loans	270,877
Converted revolving loan	11,585
Total Loans	528,875	513,417
Pass | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	57,116
2019	213,693
2018	214,659
2017	139,415
2016	86,079
Prior	129,764
Revolving Loans	36,851
Converted revolving loan	2,322
Total Loans	879,899	876,207
Pass | Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	35,419
2019	184,260
2018	196,235
2017	45,597
2016	8,477
Prior	35,240
Revolving Loans	40,564
Total Loans	545,792	515,247
Pass | 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	7,110
2019	35,961
2018	66,602
2017	49,164
2016	27,973
Prior	70,808
Revolving Loans	11,094
Converted revolving loan	1,277
Total Loans	269,989	274,731
Pass | Multi‑family residential
Financing Receivable, Recorded Investment [Line Items]
2020	7,770
2019	8,527
2018	23,743
2017	50,750
2016	4,361
Prior	172,001
Total Loans	267,152	277,209
Pass | Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	3,020
2019	6,506
2018	3,443
2017	2,528
2016	323
Prior	411
Revolving Loans	19,689
Converted revolving loan	2,208
Total Loans	38,128	36,566
Pass | Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	936
2019	1,701
2018	547
2017	162
2016	38
Prior	5
Revolving Loans	3,975
Converted revolving loan	79
Total Loans	7,443	9,733
Pass | Other
Financing Receivable, Recorded Investment [Line Items]
2020	623
2019	15,233
2018	5,026
2017	162
2016	128
Prior	1,551
Revolving Loans	35,662
Converted revolving loan	17,424
Total Loans	75,809	79,860
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans		34,742
Special Mention | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	33
2019	266
2017	15
Revolving Loans	436
Total Loans	750	2,963
Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2016	1,587
Converted revolving loan	11,000
Total Loans	12,587	18,570
Special Mention | Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans		12,565
Special Mention | 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2018	40
2016	392
Prior	386
Total Loans	818	594
Special Mention | Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans		50
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans		28,961
Substandard | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	1,000
2019	786
2018	464
2017	39
2016	354
Prior	2,406
Revolving Loans	4,012
Converted revolving loan	3,964
Total Loans	13,025	11,227
Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	1,926
2018	4,967
2017	216
2016	1,600
Prior	3,200
Total Loans	11,909	5,969
Substandard | Construction and development
Financing Receivable, Recorded Investment [Line Items]
2019	519
2018	1,500
2017	10,532
Total Loans	12,551
Substandard | 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2019	547
2017	249
2016	20
Prior	3,034
Converted revolving loan	1,485
Total Loans	5,335	4,867
Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Prior	5
Total Loans	5	216
Substandard | Agriculture
Financing Receivable, Recorded Investment [Line Items]
Prior	27
Revolving Loans	50
Total Loans	77	29
Substandard | Other
Financing Receivable, Recorded Investment [Line Items]
2018	1,381
2016	1,241
Revolving Loans	5,645
Total Loans	$ 8,267	$ 6,653

ALLOWANCE FOR CREDIT LOSSES - R

ALLOWANCE FOR CREDIT LOSSES - Risk Grades and loan class (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized cost of loans by loan type
Total loans	$ 2,678,411	$ 2,646,673
Loans by risk grades
Amortized cost of loans by loan type
Total loans		2,646,673
Pass
Amortized cost of loans by loan type
Total loans		2,582,970
Special Mention
Amortized cost of loans by loan type
Total loans		34,742
Substandard
Amortized cost of loans by loan type
Total loans		28,961
Commercial and industrial
Amortized cost of loans by loan type
Total loans	542,650	527,607
Commercial and industrial | Loans by risk grades
Amortized cost of loans by loan type
Total loans	542,650	527,607
Commercial and industrial | Pass
Amortized cost of loans by loan type
Total loans	528,875	513,417
Commercial and industrial | Special Mention
Amortized cost of loans by loan type
Total loans	750	2,963
Commercial and industrial | Substandard
Amortized cost of loans by loan type
Total loans	13,025	11,227
Commercial real estate
Amortized cost of loans by loan type
Total loans	904,395	900,746
Commercial real estate | Loans by risk grades
Amortized cost of loans by loan type
Total loans	904,395	900,746
Commercial real estate | Pass
Amortized cost of loans by loan type
Total loans	879,899	876,207
Commercial real estate | Special Mention
Amortized cost of loans by loan type
Total loans	12,587	18,570
Commercial real estate | Substandard
Amortized cost of loans by loan type
Total loans	11,909	5,969
Construction and development
Amortized cost of loans by loan type
Total loans	558,343	527,812
Construction and development | Loans by risk grades
Amortized cost of loans by loan type
Total loans	558,343	527,812
Construction and development | Pass
Amortized cost of loans by loan type
Total loans	545,792	515,247
Construction and development | Special Mention
Amortized cost of loans by loan type
Total loans		12,565
Construction and development | Substandard
Amortized cost of loans by loan type
Total loans	12,551
1-4 family residential
Amortized cost of loans by loan type
Total loans	276,142	280,192
1-4 family residential | Loans by risk grades
Amortized cost of loans by loan type
Total loans	276,142	280,192
1-4 family residential | Pass
Amortized cost of loans by loan type
Total loans	269,989	274,731
1-4 family residential | Special Mention
Amortized cost of loans by loan type
Total loans	818	594
1-4 family residential | Substandard
Amortized cost of loans by loan type
Total loans	5,335	4,867
Multi‑family residential
Amortized cost of loans by loan type
Total loans	267,152	277,209
Multi‑family residential | Loans by risk grades
Amortized cost of loans by loan type
Total loans	267,152	277,209
Multi‑family residential | Pass
Amortized cost of loans by loan type
Total loans	267,152	277,209
Consumer
Amortized cost of loans by loan type
Total loans	38,133	36,782
Consumer | Loans by risk grades
Amortized cost of loans by loan type
Total loans	38,133	36,782
Consumer | Pass
Amortized cost of loans by loan type
Total loans	38,128	36,566
Consumer | Substandard
Amortized cost of loans by loan type
Total loans	5	216
Agriculture
Amortized cost of loans by loan type
Total loans	7,520	9,812
Agriculture | Loans by risk grades
Amortized cost of loans by loan type
Total loans	7,520	9,812
Agriculture | Pass
Amortized cost of loans by loan type
Total loans	7,443	9,733
Agriculture | Special Mention
Amortized cost of loans by loan type
Total loans		50
Agriculture | Substandard
Amortized cost of loans by loan type
Total loans	77	29
Other
Amortized cost of loans by loan type
Total loans	84,076	86,513
Other | Loans by risk grades
Amortized cost of loans by loan type
Total loans	84,076	86,513
Other | Pass
Amortized cost of loans by loan type
Total loans	75,809	79,860
Other | Substandard
Amortized cost of loans by loan type
Total loans	$ 8,267	$ 6,653

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan type and vintage (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	$ (133)	$ (284)
Recovery	434	87
Net (charge-offs) recoveries	301	(197)
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(30)	(280)
Recovery	428	74
Net (charge-offs) recoveries	398	(206)
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Recovery	1	1
Net (charge-offs) recoveries	1	1
Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(103)	(4)
Recovery	4	10
Net (charge-offs) recoveries	(99)	$ 6
Other
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
2020.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	3
2020. | Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	3
Net (charge-offs) recoveries	3
2019.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	2
2019. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	2
Net (charge-offs) recoveries	2
2018.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	79
2018. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	87
Net (charge-offs) recoveries	87
2018. | Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(8)
Net (charge-offs) recoveries	(8)
2017.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	(107)
2017. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(29)
Recovery	16
Net (charge-offs) recoveries	(13)
2017. | Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(95)
Net (charge-offs) recoveries	(95)
2017. | Other
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
2016.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	10
2016. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	10
Net (charge-offs) recoveries	10
Prior.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	135
Prior. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	133
Net (charge-offs) recoveries	133
Prior. | 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
Prior. | Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
Revolving Loans.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	179
Revolving Loans. | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Recovery	180
Net (charge-offs) recoveries	$ 179

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - Activity in the allowance for loan losses, segregated by loan class (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Loan losses segregated by loan class
Beginning balance	$ 25,280	$ 23,693
CECL implementation	874
Provision for Credit Loan Losses	4,739	1,147
Charge-offs	(133)	(284)
Recoveries	434	87
Financing Receivable, Allowance for Credit Losses	31,194	24,643
Net (charge-offs) recoveries	301	(197)
Ending balance	31,194	24,643
Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	409	788
Ending balance	409	788
General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	30,785	23,855
Ending balance	30,785	23,855
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	7,671	7,719
CECL implementation	852
Provision for Credit Loan Losses	614	903
Charge-offs	(30)	(280)
Recoveries	428	74
Financing Receivable, Allowance for Credit Losses	9,535	8,416
Net (charge-offs) recoveries	398	(206)
Ending balance	9,535	8,416
Commercial and industrial | Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	409	582
Ending balance	409	582
Commercial and industrial | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	9,126	7,834
Ending balance	9,126	7,834
Commercial real estate
Loan losses segregated by loan class
Beginning balance	7,975	6,730
CECL implementation	(140)
Provision for Credit Loan Losses	1,741	52
Recoveries		2
Financing Receivable, Allowance for Credit Losses	9,576	6,784
Net (charge-offs) recoveries		2
Ending balance	9,576	6,784
Commercial real estate | Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		33
Ending balance		33
Commercial real estate | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	9,576	6,751
Ending balance	9,576	6,751
Construction and development
Loan losses segregated by loan class
Beginning balance	4,446	4,298
CECL implementation	100
Provision for Credit Loan Losses	1,249	402
Financing Receivable, Allowance for Credit Losses	5,795	4,700
Ending balance	5,795	4,700
Construction and development | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	5,795	4,700
Ending balance	5,795	4,700
1-4 family residential
Loan losses segregated by loan class
Beginning balance	2,257	2,281
CECL implementation	(275)
Provision for Credit Loan Losses	447	(33)
Recoveries	1	1
Financing Receivable, Allowance for Credit Losses	2,430	2,249
Net (charge-offs) recoveries	1	1
Ending balance	2,430	2,249
1-4 family residential | Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		77
Ending balance		77
1-4 family residential | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,430	2,172
Ending balance	2,430	2,172
Multi‑family residential
Loan losses segregated by loan class
Beginning balance	1,699	1,511
CECL implementation	294
Provision for Credit Loan Losses	420	(54)
Financing Receivable, Allowance for Credit Losses	2,413	1,457
Ending balance	2,413	1,457
Multi‑family residential | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,413	1,457
Ending balance	2,413	1,457
Consumer
Loan losses segregated by loan class
Beginning balance	388	387
CECL implementation	(25)
Provision for Credit Loan Losses	213	(36)
Charge-offs	(103)	(4)
Recoveries	4	10
Financing Receivable, Allowance for Credit Losses	477	357
Net (charge-offs) recoveries	(99)	6
Ending balance	477	357
Consumer | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	477	357
Ending balance	477	357
Agriculture
Loan losses segregated by loan class
Beginning balance	74	62
CECL implementation	64
Provision for Credit Loan Losses	(9)	(12)
Financing Receivable, Allowance for Credit Losses	129	50
Ending balance	129	50
Agriculture | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	129	50
Ending balance	129	50
Other
Loan losses segregated by loan class
Beginning balance	770	705
CECL implementation	4
Provision for Credit Loan Losses	64	(75)
Recoveries	1
Financing Receivable, Allowance for Credit Losses	839	630
Net (charge-offs) recoveries	1
Ending balance	839	630
Other | Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		96
Ending balance		96
Other | General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	839	534
Ending balance	839	$ 534
Unfunded Commitment
Loan losses segregated by loan class
Beginning balance	378
Financing Receivable, Allowance for Credit Losses	3,669
Ending balance	$ 3,669

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Loans evaluated individually and the related specific allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	$ 19,835	$ 12,917
Loans evaluated individually, Specific ACL	409	437
Loans evaluated individually, Net	19,426	12,480
Commercial and industrial
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	1,528	999
Loans evaluated individually, Specific ACL	409	416
Loans evaluated individually, Net	1,119	583
Commercial real estate
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	5,818	1,404
Loans evaluated individually, Net	5,818	1,404
Construction and development
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	519
Loans evaluated individually, Net	519
1-4 family residential
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	3,703	3,651
Loans evaluated individually, Specific ACL		15
Loans evaluated individually, Net	3,703	3,636
Loans Collateral	32,000
Consumer
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment		210
Loans evaluated individually, Net		210
Other
Loan Impairment Assessment
Loans evaluated individually, Recorded Investment	8,267	6,653
Loans evaluated individually, Specific ACL		6
Loans evaluated individually, Net	$ 8,267	$ 6,647

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Allowance for credit losses for unfunded commitments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 25,280
Ending balance	31,194
Unfunded Commitment
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	378
Impact of implementation	2,981
Provision for credit losses for unfunded commitments	310
Ending balance	$ 3,669

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
PREMISES AND EQUIPMENT
Premises and equipment	$ 83,908		$ 83,798
Less accumulated depreciation	(33,665)		(32,923)
Premises and equipment, net	50,243		50,875
Depreciation expense	775	$ 824
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466		13,466
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	53,874		53,869
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	16,022		15,917
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	203		203
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 343		$ 343

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Changes in goodwill	0	0
Other Intangible Assets, net
Gross Intangible Assets	20,720	20,747
Accumulated Amortization	(16,020)	(15,809)
Net Intangible Assets	$ 4,700	$ 4,938
Core deposits
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	3 years 10 months 24 days	4 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(13,069)	(12,979)
Net Intangible Assets	$ 681	$ 771
Customer relationships
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	8 years 9 months 18 days	9 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(2,762)	(2,651)
Net Intangible Assets	$ 3,867	$ 3,978
Servicing assets
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	11 years 2 months 12 days	12 years 9 months 18 days
Gross Intangible Assets	$ 341	$ 368
Accumulated Amortization	(189)	(179)
Net Intangible Assets	$ 152	$ 189

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Servicing Assets
Balance at beginning of year	$ 189	$ 166
Increase from loan sales	9	14
Decrease from serviced loans paid off or foreclosed	(26)	(19)
Amortization	(20)	(8)
Balance at end of period	152	$ 153
Estimated future amortization for intangible assets
Net Intangible Assets	$ 4,700		$ 4,938

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
BANK OWNED LIFE INSURANCE.
Balance at beginning of year	$ 71,881	$ 71,525
Net change in cash surrender value	416	430
Balance at end of year	$ 72,297	$ 71,955

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
DEPOSITS
Interest-bearing demand accounts	$ 359,943	$ 369,744
Money market accounts	760,036	805,942
Saving accounts	90,227	92,183
Certificates and other time deposits, $100,000 or greater	212,341	208,018
Certificates and other time deposits, less than $100,000	174,145	191,640
Total interest-bearing deposits	1,596,692	1,667,527
Noninterest-bearing deposits	1,195,541	1,184,861
Total deposits	$ 2,792,233	$ 2,852,388

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 60,400,000	$ 56,800,000
Brokered deposits	112,400,000	128,900,000
Accrued interest payable for deposits	$ 976,000	$ 931,000
Major concentrations of deposits from any single or related groups of depositors	0	0

LINES OF CREDIT (Details)

LINES OF CREDIT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
LINES OF CREDIT
Capital to risk based assets ratio	16.42%		16.41%
FHLB advances
LINES OF CREDIT
Interest rate	1.78%	2.67%
Frost Line of Credit
LINES OF CREDIT
Outstanding borrowings			$ 0
Line of Credit | FHLB advances
LINES OF CREDIT
Outstanding borrowings	$ 50,000,000		50,000,000
Total borrowing capacity available			$ 1,000,000,000
Average outstanding balance, FHLB advances	50,000,000	$ 9,700,000
Line of Credit | Frost Line of Credit
LINES OF CREDIT
Revolving line of credit available	$ 30,000,000
Revolving line of credit draw period	24 months
Line of credit payment terms	payable quarterly over 24 months beginning December 13, 2019, and thereafter, quarterly principal and interest payments are required over a term of 60 months
Debt term	60 months
Line of Credit | Frost Line of Credit | Minimum
LINES OF CREDIT
Tangible capital	$ 300,000,000
Free cash flow coverage ratio	1.00%
Capital to risk based assets ratio	12.00%
Line of Credit | Frost Line of Credit | Maximum
LINES OF CREDIT
Free cash flow coverage ratio	1.25%
Capital to risk based assets ratio	15.00%

LINES OF CREDIT - Maturity and

LINES OF CREDIT - Maturity and Federal Funds Lines of Credit (Details) $ in Thousands	Mar. 31, 2020USD ($)item	Dec. 31, 2019USD ($)item
FHLB advances Maturity
2020	$ 0
2021	0
2022	10,000
2023	20,000
2024	20,000
Thereafter	0
Total	50,000
FHLB advances | Line of Credit
FHLB advances Maturity
Outstanding borrowings	$ 50,000	$ 50,000
Federal funds line of credit
FHLB advances Maturity
Number of federal funds line of credit | item	4	4
Revolving line of credit available	$ 75,000
Outstanding borrowings	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 155.8	$ 158.7
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	52.2	48.7
Related party deposits	$ 233.8	$ 233.9

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Financial Assets
Securities available for sale	$ 234,014,000	$ 231,262,000
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	243,106,000	233,900,000
Financial Liabilities
Total financial liabilities	9,092,000	2,638,000
Level 1 Inputs | Recurring basis | Equity securities
Financial Assets
Securities available for sale	1,171,000	1,147,000
Level 2 Inputs | Recurring basis | Interest rate swaps with customers
Financial Assets
Interest rate swaps assets	9,092,000	2,638,000
Financial Liabilities
Interest rate swaps liabilities	9,092,000	2,638,000
Level 2 Inputs | Recurring basis | State and municipal securities
Financial Assets
Securities available for sale	50,886,000	53,279,000
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations
Financial Assets
Securities available for sale	53,065,000	55,989,000
Level 2 Inputs | Recurring basis | Mortgage-backed securities
Financial Assets
Securities available for sale	$ 128,892,000	$ 120,847,000

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loan Impairment Assessment
Risk rating	$ 2,640,393	$ 2,613,805
Financing Receivable, Allowance for Credit Losses	31,194	25,280	$ 24,643	$ 23,693
Total loans	2,678,411	2,646,673
Commercial and industrial
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	9,535	7,671	8,416	7,719
Total loans	542,650	527,607
Commercial real estate
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	9,576	7,975	6,784	6,730
Total loans	904,395	900,746
1-4 family residential
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	2,430	2,257	2,249	2,281
Total loans	276,142	280,192
Consumer
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	477	388	357	387
Total loans	38,133	36,782
Agriculture
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	129	74	50	62
Total loans	7,520	9,812
Other
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	839	770	630	$ 705
Total loans	84,076	86,513
Level 3 Inputs | Non-recurring basis
Loan Impairment Assessment
Recorded Investment	13,498	11,303
Specific ACL	409	437
Net	13,089	10,866
Level 3 Inputs | Non-recurring basis | Commercial and industrial
Loan Impairment Assessment
Recorded Investment	1,528	999
Specific ACL	409	416
Net	1,119	583
Level 3 Inputs | Non-recurring basis | 1-4 family residential
Loan Impairment Assessment
Recorded Investment	3,703	3,651
Specific ACL		15
Net	3,703	3,636
Level 3 Inputs | Non-recurring basis | Other
Loan Impairment Assessment
Recorded Investment	8,267	6,653
Specific ACL		6
Net	8,267	$ 6,647
Specific reserve
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	409		788
Specific reserve | Commercial and industrial
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	$ 409		582
Specific reserve | Commercial real estate
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			33
Specific reserve | 1-4 family residential
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			77
Specific reserve | Other
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			$ 96

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
FAIR VALUE DISCLOSURES
Write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure	$ 0	$ 0
Foreclosed assets	$ 0	$ 0

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial Assets:
Accrued interest receivable	$ 7,800	$ 7,500
Equity investments	16,807	16,710
Financial Liabilities:
Noninterest-bearing deposits	1,195,541	1,184,861
Interest-bearing deposits	1,596,692	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	1,415	485
Fair Value
Financial Assets:
Total financial assets	2,993,946	3,123,948
Financial Liabilities:
Total financial liabilities	2,862,426	2,886,532
Carrying Amount
Financial Assets:
Total financial assets	3,024,082	3,084,854
Financial Liabilities:
Total financial liabilities	2,844,697	2,903,878
Level 1 Inputs | Fair Value
Financial Assets:
Cash and due from banks	284,898	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,214,222	1,184,861
Level 1 Inputs | Carrying Amount
Financial Assets:
Cash and due from banks	284,898	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,195,541	1,184,861
Level 2 Inputs | Fair Value
Financial Assets:
Bank-owned life insurance	72,297	71,881
Accrued interest receivable	8,653	8,742
Servicing asset	152	189
Financial Liabilities:
Interest-bearing deposits	1,595,014	1,651,359
Federal Home Loan Bank advances	50,727	48,822
Repurchase agreements	1,414	485
Accrued interest payable	1,049	1,005
Level 2 Inputs | Carrying Amount
Financial Assets:
Bank-owned life insurance	72,297	71,881
Accrued interest receivable	8,653	8,742
Servicing asset	152	189
Financial Liabilities:
Interest-bearing deposits	1,596,692	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	1,415	485
Accrued interest payable	1,049	1,005
Level 3 Inputs | Fair Value
Financial Assets:
Loans, including held for sale, net	2,611,139	2,654,362
Equity investments	16,807	16,710
Level 3 Inputs | Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,641,275	2,615,268
Equity investments	$ 16,807	$ 16,710

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)item	Dec. 31, 2019USD ($)item
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer’s credit worthiness	$ 0	$ 0
Number of interest rate swap agreements | item	22	19
Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	6 years 10 months 24 days
Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	6 years 10 months 24 days
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 288,202,000	$ 150,352,000
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	144,101,000	69,189,000
Fair value asset	$ 9,092,000	$ 2,599,000
Weighted Average Maturity	6 years 10 months 24 days	6 years 7 months 24 days
Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset		$ 5,987,000
Fair value asset		$ 39,000
Weighted Average Maturity		6 years 8 months 16 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability		$ 5,987,000
Fair value liability		$ (39,000)
Weighted Average Maturity		6 years 8 months 16 days
Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 144,101,000	$ 69,189,000
Fair value liability	$ (9,092,000)	$ (2,599,000)
Weighted Average Maturity	6 years 10 months 24 days	6 years 7 months 24 days
Minimum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.25%	4.40%
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	3.25%	4.40%
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%	5.89%
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%	5.89%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.00%	3.00%
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3.00%	3.00%

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
OPERATING LEASES
Right-of-use assets	$ 12,577,000	$ 12,926,000
Operating lease liabilities	$ 15,356,000	$ 15,704,000
Weighted-average discount rate	3.50%
Weighted-average remaining lease term	11 years 1 month 6 days
Cash paid for amounts included in the measurement of operating lease liabilities	$ 481,000

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lease costs
Operating lease cost	$ 481	$ 461
Short-term lease cost	17	19
Sublease income	(25)	(6)
Total lease cost	$ 473	$ 474

OPERATING LEASES - Maturity of

OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 2,140
2021	2,423
2022	2,482
2023	2,405
2024	1,812
Thereafter	9,792
Total undiscounted lease liability	21,054
Less: Discount on cash flows	(3,658)
Less: Lease signed, but not yet commenced	(2,040)
Total operating lease liability	$ 15,356	$ 15,704

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable interest rate	$ 603,620	$ 652,611
Commitments to extend credit, fixed interest rate	145,160	141,439
Total	748,780	794,050
Standby letters of credit	$ 28,440	$ 23,547

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Term of service for 401K participation		3 months
Company's contributions to the 401K plan		$ 758,000	$ 683,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)		25.00%
Deferred plan liability		$ 2,700,000		$ 2,700,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		313,000		335,000
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		$ 476,000		$ 437,000
Annual compensation payment amount	$ 200,000
Contractual term	10 years
Commencement age	70 years

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)	3 Months Ended
	Mar. 31, 2020shares
Non-performance based restricted stock | Minimum
STOCK-BASED COMPENSATION
Vesting period	2 years
Non-performance based restricted stock | Maximum
STOCK-BASED COMPENSATION
Vesting period	5 years
Performance-based restricted stock
STOCK-BASED COMPENSATION
Performance conditions goals achieved within period, years	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	279,228

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Number of Shares Underlying Options
Outstanding, beginning of period	213,078	232,322
Exercised	(1,524)	(10,844)
Outstanding, end of period	211,554	221,478
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16.92	$ 16.66
Exercised	10.34	10.68
Outstanding, end of period	$ 16.97	$ 16.96

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	161,355
Number of shares underlying options unvested	50,199
Number of shares underlying options outstanding	211,554
Weighted-average exercise price per share exercisable	$ 15.78
Weighted-average exercise price per share unvested	20.81
Weighted-average exercise price per share outstanding	$ 16.97	$ 16.92	$ 16.96	$ 16.66
Aggregate intrinsic value exercisable	$ 425
Aggregate intrinsic value unvested	2
Aggregate intrinsic value outstanding	$ 427
Weighted-average remaining contractual term exercisable (years)	4 years 8 months 12 days
Weighted-average remaining contractual term unvested (years)	7 years 2 months 12 days
Weighted-average remaining contractual term outstanding (years)	5 years 3 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Performance-based restricted stock
Number of Shares
Outstanding, beginning of period	18,000	24,000
Outstanding, end of period	18,000	24,000
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 34.46	$ 34.46
Outstanding, end of period	$ 34.46	$ 34.46
Non-performance based restricted stock
Number of Shares
Outstanding, beginning of period	161,443	181,773
Granted	37,107	19,187
Vested	(6,450)	(300)
Forfeited	(204)
Outstanding, end of period	191,896	200,660
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 28.20	$ 27.05
Granted	29.55	32.25
Vested	32.11	29.27
Forfeited	30.64
Outstanding, end of period	$ 28.33	$ 27.54

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Non-performance based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	191,896	161,443	200,660	181,773
Weighted-average grant date fair value per share	$ 28.33	$ 28.20	$ 27.54	$ 27.05
Aggregate fair value (in thousands)	$ 3,410
Weighted-average remaining vesting period (years)	2 years 7 months 6 days
Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	18,000	18,000	24,000	24,000
Weighted-average grant date fair value per share	$ 34.46	$ 34.46	$ 34.46	$ 34.46
Aggregate fair value (in thousands)	$ 320
Weighted-average remaining vesting period (years)	2 years 7 months 6 days

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Stock options exercised, restricted stock vested, shares withheld and shares issued (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Number of Shares
Stock compensation expense	$ 557,000	$ 545,000
Unrecognized compensation expense	$ 5,300,000
Weighted average period	2 years 6 months
Stock options
Number of Shares
Stock Options, Exercised/Vested	1,524	10,844
Stock Options, Shares Issued	1,524	10,844
Non-performance based restricted stock
Number of Shares
Restricted Stock, Exercised/Vested	6,450	300
Restricted Stock, Shares withheld	(1,218)	(89)
Restricted Stock, Shares Issued	$ 5,232	$ 211

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Common Equity Tier I to Risk‑Weighted Assets
Dividend restrictions term	2 years
Actual amount	$ 445,818	$ 448,445
Common Equity Tier One Capital Ratio	15.23%	15.52%
Minimum Capital Required Basel III (amount)	$ 204,968	$ 202,218
Minimum Capital Required‑Basel III (ratio)	7.00%	7.00%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 445,818	$ 448,445
Actual ratio	15.23%	15.52%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 248,889	$ 245,550
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 480,681	$ 474,104
Actual ratio	16.42%	16.41%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 307,451	$ 303,327
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 445,819	$ 448,445
Actual ratio	13.18%	13.11%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 135,334	$ 136,798
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	$ 408,922	$ 406,675
Common Equity Tier One Capital Ratio	13.97%	14.08%
Minimum Capital Required Basel III (amount)	$ 204,950	$ 202,203
Minimum Capital Required‑Basel III (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 190,311	$ 187,760
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to Risk‑Weighted Assets
Actual amount	$ 408,922	$ 406,675
Actual ratio	13.97%	14.08%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 248,868	$ 245,532
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 234,229	$ 231,089
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to Risk‑Weighted Assets
Actual amount	$ 443,785	$ 432,334
Actual ratio	15.16%	14.97%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 307,425	$ 303,304
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 292,786	$ 288,861
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 408,922	$ 406,675
Actual ratio	12.09%	11.90%
Minimum Capital Required‑Basel III Fully Phased‑in (amount)	$ 135,307	$ 136,754
Minimum Capital Required‑Basel III Fully Phased‑in (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 169,133	$ 170,943
Required to be Considered Well Capitalized, ratio	5.00%	5.00%

INCOME TAXES - Components of pr

INCOME TAXES - Components of provision for income tax expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INCOME TAXES
Deferred tax provision (benefit)	$ 158	$ 622
Effective Income Tax Rate Reconciliation, Percent	19.85%	19.86%
Total income tax expense	$ 1,868	$ 2,599
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
EARNINGS PER SHARE
Net income for common shareholders	$ 7,541	$ 10,490
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,926	24,910
Dilutive effect of outstanding stock options and unvested restricted stock awards	74	144
Diluted weighted-average shares outstanding	25,000	25,054
Earnings per share:
Basic	$ 0.30	$ 0.42
Diluted	$ 0.30	$ 0.42