Stellar Bancorp (STEL) 10-Q29 Jul 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 24, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity File Number	001-38280
Entity Registrant Name	CBTX, INC.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	20-8339782
Entity Address, Address Line One	9 Greenway Plaza, Suite 110
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77046
City Area Code	713
Local Phone Number	210-7600
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CBTX
Security Exchange Name	NASDAQ
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 Shell Company	false
Entity Common Stock, Shares Outstanding		24,950,715
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001473844
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 60,151	$ 51,259
Interest-bearing deposits at other financial institutions	432,249	320,805
Total cash and cash equivalents	492,400	372,064
Securities	235,438	231,262
Equity investments	18,369	16,710
Loans held for sale		1,463
Loans, net of allowance for credit losses of $39,678 and $25,280 at June 30, 2020 and December 31, 2019, respectively	2,895,210	2,613,805
Premises and equipment, net of accumulated depreciation of $34,315 and $32,923 at June 30, 2020 and December 31, 2019, respectively	50,729	50,875
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $16,213 and $15,809 at June 30, 2020 and December 31, 2019, respectively	4,496	4,938
Bank-owned life insurance	72,709	71,881
Operating lease right-to-use asset	14,081	12,926
Deferred tax asset, net	11,440	7,432
Other assets	25,903	14,238
Total assets	3,901,725	3,478,544
Liabilities
Noninterest-bearing deposits	1,513,748	1,184,861
Interest-bearing deposits	1,740,455	1,667,527
Total deposits	3,254,203	2,852,388
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,500	485
Operating lease liabilities	16,983	15,704
Other liabilities	40,683	24,246
Total liabilities	3,364,369	2,942,823
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, 25,609,456 and 25,837,048 shares issued at June 30, 2020 and December 31, 2019, respectively, 24,754,634 and 24,979,702 shares outstanding at June 30, 2020 and December 31, 2019, respectively	256	258
Additional paid-in capital	342,256	346,559
Retained earnings	202,754	201,080
Treasury stock, at cost, 854,822 and 857,346 shares held at June 30, 2020 and December 31, 2019, respectively	(14,519)	(14,562)
Accumulated other comprehensive gain, net of tax of $1,123 and $634 at June 30, 2020 and December 31, 2019, respectively	6,609	2,386
Total shareholders' equity	537,356	535,721
Total liabilities and shareholders' equity	$ 3,901,725	$ 3,478,544

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets (Unaudited)
Allowance for credit losses on loans	$ 39,678	$ 25,280
Premises and equipment, accumulated depreciation	34,315	32,923
Other intangible assets, accumulated amortization	$ 16,213	$ 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	25,609,456	25,837,048
Common stock, shares outstanding	24,754,634	24,979,702
Treasury stock, shares	854,822	857,346
Accumulated other comprehensive gain (loss), tax	$ 1,123	$ 634

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest income
Interest and fees on loans	$ 32,857	$ 35,608	$ 66,474	$ 69,401
Securities	1,228	1,519	2,591	3,076
Other interest-earning assets	169	1,359	1,224	2,842
Equity investments	171	163	347	315
Total interest income	34,425	38,649	70,636	75,634
Interest expense
Deposits	2,022	3,822	5,788	7,406
Federal Home Loan Bank advances	240	523	461	587
Repurchase agreements	1	1	1	2
Note payable and junior subordinated debt	4	4	8	12
Total interest expense	2,267	4,350	6,258	8,007
Net interest income	32,158	34,299	64,378	67,627
Provision for credit losses for loans	8,537	807	13,276	1,954
Provision for credit losses for unfunded commitments	1,333		1,643
Total provision for credit losses	9,870	807	14,919	1,954
Net interest income after provision for credit losses	22,288	33,492	49,459	65,673
Noninterest income
Deposit account service charges	1,095	1,657	2,580	3,286
Card interchange fees	915	941	1,837	1,805
Earnings on bank-owned life insurance	412	3,721	828	4,151
Net gain on sales of assets	139	69	262	157
Other	348	915	1,729	1,397
Total noninterest income	2,909	7,303	7,236	10,796
Noninterest expense
Salaries and employee benefits	14,012	14,185	28,235	28,007
Occupancy expense	2,558	2,338	4,982	4,605
Professional and director fees	1,541	2,282	2,693	4,373
Data processing and software	1,292	1,086	2,514	2,240
Regulatory fees	476	446	579	910
Advertising, marketing and business development	269	532	633	972
Telephone and communications	392	456	811	834
Security and protection expense	351	367	725	690
Amortization of intangibles	230	225	451	457
Other expenses	1,374	1,486	2,961	2,900
Total noninterest expense	22,495	23,403	44,584	45,988
Net income before income tax expense	2,702	17,392	12,111	30,481
Income tax expense	539	3,077	2,407	5,676
Net income	$ 2,163	$ 14,315	$ 9,704	$ 24,805
Earnings per common share
Basic	$ 0.09	$ 0.57	$ 0.39	$ 1
Diluted	$ 0.09	$ 0.57	$ 0.39	$ 0.99

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 2,163	$ 14,315	$ 9,704	$ 24,805
Change in unrealized gains on securities available for sale arising during the period, net	313	2,721	5,336	5,747
Reclassification adjustments for net realized gains included in net income			10	3
Change in related deferred income tax	(65)	(571)	(1,123)	(1,207)
Other comprehensive income, net of tax	248	2,150	4,223	4,543
Total comprehensive income	$ 2,411	$ 16,465	$ 13,927	$ 29,348

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 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			24,805			24,805
Dividends on common stock, $0.10 and $0.20 per share for the three and six months ended June 30, 2020 and 2019, respectively			(5,030)			(5,030)
Stock-based compensation expense		1,112				1,112
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(19)				(19)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	2,442
Exercise of stock options, net of shares withheld for employee tax liabilities		(95)		$ 217		122
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				12,806
Other comprehensive income, net of tax					4,543	4,543
Ending balance at Jun. 30, 2019	$ 258	345,495	180,401	$ (14,564)	1,568	513,158
Ending balance, shares at Jun. 30, 2019	25,780,135			(857,466)
Beginning balance at Mar. 31, 2019	$ 258	344,971	168,603	$ (14,597)	(582)	498,653
Beginning balance, shares at Mar. 31, 2019	25,777,904			(859,428)
Net income			14,315			14,315
Dividends on common stock, $0.10 and $0.20 per share for the three and six months ended June 30, 2020 and 2019, respectively			(2,517)			(2,517)
Stock-based compensation expense		567				567
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(17)				(17)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	2,231
Exercise of stock options, net of shares withheld for employee tax liabilities		(26)		$ 33		7
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				1,962
Other comprehensive income, net of tax					2,150	2,150
Ending balance at Jun. 30, 2019	$ 258	345,495	180,401	$ (14,564)	1,568	513,158
Ending balance, shares at Jun. 30, 2019	25,780,135			(857,466)
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			9,704			9,704
Dividends on common stock, $0.10 and $0.20 per share for the three and six months ended June 30, 2020 and 2019, respectively			(4,985)			(4,985)
Stock-based compensation expense		1,109				1,109
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(44)				(44)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	12,853
Exercise of stock options, net of shares withheld for employee tax liabilities		(10)		$ 43		33
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				2,524
Shares repurchased	$ (2)	(5,358)				(5,360)
Shares repurchased, Shares	(240,445)
Other comprehensive income, net of tax					4,223	4,223
Ending balance at Jun. 30, 2020	$ 256	342,256	202,754	$ (14,519)	6,609	537,356
Ending balance, shares at Jun. 30, 2020	25,609,456			(854,822)
Beginning balance at Mar. 31, 2020	$ 256	341,713	203,080	$ (14,536)	6,361	536,874
Beginning balance, shares at Mar. 31, 2020	25,601,835			(855,822)
Net income			2,163			2,163
Dividends on common stock, $0.10 and $0.20 per share for the three and six months ended June 30, 2020 and 2019, respectively			(2,489)			(2,489)
Stock-based compensation expense		552				552
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(9)				(9)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	7,621
Exercise of stock options, net of shares withheld for employee tax liabilities				$ 17		17
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)				1,000
Other comprehensive income, net of tax					248	248
Ending balance at Jun. 30, 2020	$ 256	$ 342,256	$ 202,754	$ (14,519)	$ 6,609	$ 537,356
Ending balance, shares at Jun. 30, 2020	25,609,456			(854,822)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.10	$ 0.20	$ 0.20

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 9,704	$ 24,805
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for credit losses	14,919	1,954
Depreciation expense	1,520	1,635
Amortization of intangibles	451	457
Amortization of premiums on securities	835	534
Amortization of lease right-to-use assets	743	659
Accretion of lease liabilities	249	262
Earnings on bank-owned life insurance	(828)	(4,151)
Stock-based compensation expense	1,109	1,112
Deferred income tax provision	(4,321)	(436)
Net gain on sales of assets	(262)	(157)
Earnings on securities	(40)	(16)
Change in operating assets and liabilities:
Loans held for sale	1,665	(1,325)
Other assets	(11,390)	(1,382)
Other liabilities	10,664	646
Total adjustments	15,314	(208)
Net cash provided by operating activities	25,018	24,597
Cash flows from investing activities:
Purchases of securities	(329,452)	(312,001)
Proceeds from sales, calls and maturities of securities	303,005	303,056
Principal repayments of securities	26,832	11,540
Net increase in loans	(294,088)	(226,513)
Sales of loan participations	566	30,330
Purchases of loan participations	(2,500)	(1,256)
Proceeds from sales of Small Business Administration loans	508	1,706
Net contributions to equity investments	(1,659)	(5,896)
Redemption (purchases) of bank-owned life insurance		4,655
Net purchases sales of premises and equipment	(1,374)	(1,391)
Proceeds from sales of repossessed real estate and other assets		45
Proceeds from insurance claims		108
Net cash used in investing activities	(298,162)	(195,617)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	328,887	18,229
Net decrease in interest-bearing deposits	72,928	(45,604)
Net increase in Federal Home Loan Bank advances		90,000
Net increase (decrease) in securities sold under agreements to repurchase	2,015	(1,693)
Redemption of trust preferred securities		(1,571)
Dividends paid on common stock	(4,979)	(3,738)
Payments to tax authorities for stock-based compensation	(44)	(19)
Proceeds from exercise of stock options	33	122
Repurchase of common stock	(5,360)
Net cash provided by financing activities	393,480	55,726
Net decrease in cash, cash equivalents and restricted cash	120,336	(115,294)
Cash, cash equivalents and restricted cash, beginning	372,064	382,070
Cash, cash equivalents and restricted cash, ending	$ 492,400	$ 266,776

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 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 June 30, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three and six months ended June 30, 2020 and 2019, and consolidated cash flows for the six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 2019. Accounting Standards Recently Adopted The Company adopted CECL 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 CECL, 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. not 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 12.5% of the Company’s loans as of June 30, 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 of Dallas or the Federal Reserve Bank, and the reserve requirements for the Bank were $16.2 million and $18.6 million at June 30, 2020 and December 31, 2019, respectively. Additionally, as of June 30, 2020 and December 31, 2019, the Company had $10.1 million and $3.1 million, respectively, in cash collateral on deposit with other financial institution counterparties related to interest rate swap transactions. The reserves maintained with the Federal Reserve Bank and the cash collateral for interest rate swap transactions are considered restricted cash. Supplemental disclosures of cash flow information are as follows for the periods indicated below: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ 3,707 $ 4,323 Cash paid for interest 6,444 7,789 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease liabilities 1,898 13,208 Dividends accrued (6) 1,292 Repossessed real estate and other assets — 77

SECURITIES

SECURITIES	6 Months Ended
SECURITIES	Jun. 30, 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 June 30, 2020 Debt securities available for sale: State and municipal securities $ 61,661 $ 3,246 $ (1) $ 64,906 U.S. agency securities: Collateralized mortgage obligations 43,503 604 (7) 44,100 Mortgage-backed securities 120,722 4,524 (1) 125,245 Equity securities 1,167 20 — 1,187 Total $ 227,053 $ 8,394 $ (9) $ 235,438 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 June 30, 2020 Amounts maturing in: 1 year or less $ 1,751 $ 1,777 1 year through 5 years 3,032 3,122 5 years through 10 years 14,871 15,472 After 10 years 207,399 215,067 $ 227,053 $ 235,438 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 six months ended June 30, 2019. No securities were sold in the six months ended June 30, 2020. At June 30, 2020 and December 31, 2019, securities with a carrying amount of $35.5 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 5 securities at June 30, 2020 and 27 securities at December 31, 2019 that were in a gross unrealized loss position. 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 were temporary. No ACL for available for sale securities has been recorded in the Company’s condensed consolidated balance sheets at June 30, 2020 and upon adoption of CECL. 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 $1.0 million and $1.1 million at June 30, 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 June 30, 2020 Debt securities available for sale: State and municipal securities $ 625 $ (1) $ — $ — U.S. agency securities: Collateralized mortgage obligations 1,822 (7) — — Mortgage-backed securities 2,047 (1) — — Equity securities — — — — $ 4,494 $ (9) $ — $ — 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	6 Months Ended
EQUITY INVESTMENTS	Jun. 30, 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) June 30, 2020 December 31, 2019 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 5,921 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,036 3,049 $ 18,369 $ 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 Bank stock in specific ratios to the Bank’s equity. Although Federal Home Loan Bank and Federal Reserve Bank stock are considered equity securities, they do not have readily determinable fair values because ownership is restricted, and they lack a 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 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 June 30, 2020 and December 31, 2019, the Company had $4.6 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 June 30, 2020.

LOANS

LOANS	6 Months Ended
LOANS	Jun. 30, 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) June 30, 2020 December 31, 2019 Commercial and industrial $ 837,667 28.4% $ 527,607 19.9% Real estate: Commercial real estate 908,027 30.8% 900,746 34.0% Construction and development 552,879 18.8% 527,812 19.9% 1-4 family residential 272,253 9.2% 280,192 10.6% Multi-family residential 255,273 8.7% 277,209 10.5% Consumer 36,338 1.2% 36,782 1.4% Agriculture 7,795 0.3% 9,812 0.4% Other 77,535 2.6% 86,513 3.3% Total gross loans 2,947,767 100.0% 2,646,673 100.0% Less allowance for credit losses for loans (39,678) (25,280) Less deferred loan fees and unearned discounts (12,879) (6,125) Less loans held for sale — (1,463) Loans, net $ 2,895,210 $ 2,613,805 Accrued interest receivable for loans was $12.0 million and $7.5 million at June 30, 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 six months ending June 30, 2020 and 2019, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period June 30, 2020 Commercial $ — $ 566 Commercial real estate 2,500 — June 30, 2019 Commercial real estate $ 1,256 $ 30,330 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 six months ended June 30, 2020 and 2019, totaled $508,000 and $1.7 million, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	6 Months Ended
LOAN PERFORMANCE	Jun. 30, 2020
LOAN PERFORMANCE
LOAN PERFORMANCE	NOTE 5: LOAN PERFORMANCE 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 Total past due and (Dollars in thousands) past due past due past due past due current loans Total loans still accruing June 30, 2020 Commercial and industrial $ 1,256 $ — $ 57 $ 1,313 $ 836,354 $ 837,667 $ — Real estate: Commercial real estate — — — — 908,027 908,027 — Construction and development 386 — — 386 552,493 552,879 — 1-4 family residential 146 — — 146 272,107 272,253 — Multi-family residential — — — — 255,273 255,273 — Consumer 14 — — 14 36,324 36,338 — Agriculture 27 — — 27 7,768 7,795 — Other 3,500 — — 3,500 74,035 77,535 Total loans $ 5,329 $ — $ 57 $ 5,386 $ 2,942,381 $ 2,947,767 $ — 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 $ — The Company places loans on nonaccrual status because of delinquency or because collection of principal or interest is doubtful. Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: (Dollars in thousands) June 30, 2020 December 31, 2019 Commercial and industrial $ 5,519 $ 596 Real estate: Commercial real estate 4,811 67 Construction and development 506 — 1-4 family residential 332 314 Total nonaccrual loans $ 11,168 $ 977 Interest income that would have been earned under the original terms of the nonaccrual loans was $121,000 and $87,000 for the six months ended June 30, 2020 and 2019, respectively. Troubled debt restructurings, or TDRs, are loans restructured due to the borrower’s financial difficulties. The TDRs during the six months ended June 30, 2020 and 2019 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 June 30, 2020 Commercial and industrial 17 $ 3,131 $ 2,899 $ — $ — $ 232 Commercial real estate 8 9,715 9,715 — — — Construction and development 5 12,564 12,032 — — 532 1-4 family residential 5 1,629 1,651 — — — Total 35 $ 27,039 $ 26,297 $ — $ — $ 764 June 30, 2019 Commercial and industrial 1 $ 163 $ — $ — $ — $ 163 1-4 family residential 1 115 — — — 115 Total 2 $ 278 $ — $ — $ — $ 278 Loan modifications related to a loan refinancing or restructuring other than a TDR 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. Restructured or modified loans are not considered past due if they are performing under the terms of the modified or restructured payment schedule. Outstanding loans restructured as a TDR and other loans individually evaluated were as follows for the dates indicated below: (Dollars in thousands) Accruing TDR Non-Accrual TDR Total TDR Other Non-Accrual Other Accruing Total Individually Evaluated June 30, 2020 Commercial and industrial $ 3,147 $ 404 $ 3,551 $ 5,115 $ 748 $ 9,414 Real estate: Commercial real estate 10,631 — 10,631 4,811 — 15,442 Construction and development 12,032 506 12,538 — — 12,538 1-4 family residential 1,699 109 1,808 223 1,710 3,741 Other 6,272 — 6,272 — — 6,272 Total $ 33,781 $ 1,019 $ 34,800 $ 10,149 $ 2,458 $ 47,407 December 31, 2019 Commercial and industrial $ 397 $ 282 $ 679 $ 314 $ 6 $ 999 Real estate: Commercial real estate 1,337 — 1,337 67 — 1,404 1-4 family residential 54 111 165 203 3,283 3,651 Consumer — — — — 210 210 Other 6,653 — 6,653 — — 6,653 Total $ 8,441 $ 393 $ 8,834 $ 584 $ 3,499 $ 12,917 At June 30, 2020 and December 31, 2019, the Company had an outstanding commitment to fund $2.7 million and $2.0 million, respectively, on loans that were previously restructured. There were no loans modified as a TDR 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 TDR where the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. In support of customers impacted by COVID-19 the Company offered payment deferrals. The deferral periods range from one to six-months, with the majority of the deferrals involving three-month arrangements. As of June 30, 2020, the Company entered into deferral arrangements on 689 loans with total outstanding principal of $545.0 million. These arrangements have resulted in the deferral of payments, including principal and interest, totaling $17.0 million, which includes all payments on the loans that are being deferred in accordance with the deferral arrangement.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	6 Months Ended
ALLOWANCE FOR CREDIT LOSSES	Jun. 30, 2020
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES	NOTE 6: ALLOWANCE FOR CREDIT LOSSES The Company’s effective date for the adoption of CECL was January 1, 2020. As a result of this adoption, 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 the 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 segmented the portfolio based on the identified risk characteristics present within each segment. These risk characteristics are determined based various factors including 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. 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 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 As part of its 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 six months ended June 30, 2020, an immediate reversion to historical levels after the two-year forecast period. As of June 30, 2020, the Company continues to believe that 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 held 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 CECL, the Company changed its methodology for determining the ACL for loans. As a result of the adoption of CECL, the ratio of the ACL for loans to total loans increased from 0.96% at December 31, 2019 to 0.99% at January 1, 2020. At June 30, 2020, the ratio of the ACL for loans to total loans was 1.35%, reflecting the expected impact of COVID-19 and the sustained instability in the oil and gas industry during the first and second quarters of 2020 on the local and national economy and on current and forecasted expected credit losses. The total of the Company’s qualitative and quantitative factors ranged from 0.67% to 2.42% at January 1, 2020 and ranged from 1.08% to 2.81% at June 30, 2020. All factors were reassessed at the end of the second quarter. The increase in the ACL in the second quarter of 2020 reflects the Company’s assessment based on the information available at the time. 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 Special Mention “special mention” Substandard “substandard” Doubtful “doubtful” 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 “loss” 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 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 its review on a quarterly basis as part of the Company’s interim and annual consolidated financial statements. The loans by risk grades, loan class and year of origination, or vintage, at June 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 358,270 $ 123,340 $ 59,931 $ 16,374 $ 11,020 $ 7,459 $ 233,552 $ 9,178 $ 819,124 Special mention 49 — 42 15 — — 440 — 546 Substandard 1,000 1,240 4,362 32 309 2,366 3,554 5,134 17,997 Total commercial and industrial 359,319 124,580 64,335 16,421 11,329 9,825 237,546 14,312 837,667 Commercial real estate: Pass 99,446 223,035 191,495 135,581 80,303 116,384 29,130 2,830 878,204 Special mention — 331 — — 1,559 — — — 1,890 Substandard — 1,900 9,690 211 2,609 2,998 10,525 — 27,933 Total commercial real estate 99,446 225,266 201,185 135,792 84,471 119,382 39,655 2,830 908,027 Construction and development: Pass 67,963 176,375 178,456 45,270 8,294 35,021 27,634 1,328 540,341 Substandard — 506 1,500 10,532 — — — — 12,538 Total construction and development 67,963 176,881 179,956 55,802 8,294 35,021 27,634 1,328 552,879 1-4 family residential: Pass 13,806 38,376 62,172 46,787 27,580 66,678 9,719 1,036 266,154 Special mention — — 39 — 388 382 — — 809 Substandard — 545 — 323 18 2,897 — 1,507 5,290 Total 1-4 family residential 13,806 38,921 62,211 47,110 27,986 69,957 9,719 2,543 272,253 Multi-family residential: Pass 6,351 8,951 28,421 46,161 4,325 160,987 77 — 255,273 Total multi-family residential 6,351 8,951 28,421 46,161 4,325 160,987 77 — 255,273 Consumer: Pass 5,589 5,054 2,760 2,282 243 79 19,821 507 36,335 Substandard — — — — — 3 — — 3 Total consumer 5,589 5,054 2,760 2,282 243 82 19,821 507 36,338 Agriculture: Pass 3,034 979 450 124 34 — 3,089 8 7,718 Substandard — — — — — 27 50 — 77 Total agriculture 3,034 979 450 124 34 27 3,139 8 7,795 Other: Pass 3,728 10,316 4,590 155 110 1,515 38,331 12,518 71,263 Substandard — — 1,326 — 1,241 — 3,705 — 6,272 Total other 3,728 10,316 5,916 155 1,351 1,515 42,036 12,518 77,535 Total $ 559,236 $ 590,948 $ 545,234 $ 303,847 $ 138,033 $ 396,796 $ 379,627 $ 34,046 $ 2,947,767 Loans individually evaluated and collectively evaluated as of the dates shown below were as follows: June 30, 2020 December 31, 2019 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 9,414 $ 828,253 $ 837,667 $ 999 $ 526,608 $ 527,607 Real estate: Commercial real estate 15,442 892,585 908,027 1,404 899,342 900,746 Construction and development 12,538 540,341 552,879 — 527,812 527,812 1-4 family residential 3,741 268,512 272,253 3,651 276,541 280,192 Multi-family residential — 255,273 255,273 — 277,209 277,209 Consumer — 36,338 36,338 210 36,572 36,782 Agriculture — 7,795 7,795 — 9,812 9,812 Other 6,272 71,263 77,535 6,653 79,860 86,513 Total $ 47,407 $ 2,900,360 $ 2,947,767 $ 12,917 $ 2,633,756 $ 2,646,673 Loans by risk grades and loan class as of the dates shown below were as follows: (Dollars in thousands) Pass Special Mention Substandard Total Loans June 30, 2020 Commercial and industrial $ 819,124 $ 546 $ 17,997 $ 837,667 Real estate: Commercial real estate 878,204 1,890 27,933 908,027 Construction and development 540,341 — 12,538 552,879 1-4 family residential 266,154 809 5,290 272,253 Multi-family residential 255,273 — — 255,273 Consumer 36,335 — 3 36,338 Agriculture 7,718 — 77 7,795 Other 71,263 — 6,272 77,535 Total loans $ 2,874,412 $ 3,245 $ 70,110 $ 2,947,767 (Dollars in thousands) Pass Special 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 six months ended June 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ — $ (36) $ (42) $ — $ (1) $ (79) Recovery — 2 92 33 19 155 194 495 Total commercial and industrial — 2 92 (3) (23) 155 193 416 Commercial real estate: Charge-off — — — — — (24) — (24) Total commercial real estate loans — — — — — (24) — (24) 1-4 family residential: Charge-off — (65) — — — (1) — (66) Recovery — — — — — 1 — 1 Total 1-4 family residential — (65) — — — — — (65) Consumer: Charge-off — — (8) (95) — — — (103) Recovery 10 — — — — 1 — 11 Total consumer 10 — (8) (95) — 1 — (92) Agriculture Recovery — — — — 12 — — 12 Total agriculture — — — — 12 — — 12 Other: Recovery — — — 1 — — — 1 Total other — — — 1 — — — 1 Total $ 10 $ (63) $ 84 $ (97) $ (11) $ 132 $ 193 $ 248 Activity in the total ACL for loans for the six months ended June 30, 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 June 30, 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 for credit losses for loans 3,169 4,613 2,504 1,256 887 258 (16) 605 13,276 Charge-offs (79) (24) — (66) — (103) — — (272) Recoveries 495 — — 1 — 11 12 1 520 Net (charge-offs) recoveries 416 (24) — (65) — (92) 12 1 248 Ending balance $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Period-end amount allocated to: Specific reserve $ 2,403 $ — $ — $ — $ — $ — $ — $ 468 $ 2,871 General reserve 9,705 12,424 7,050 3,173 2,880 529 134 912 36,807 Total $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 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 257 637 281 (35) 667 143 11 (7) 1,954 Charge-offs (425) — — (12) — (87) — (43) (567) Recoveries 241 4 — 2 — 15 — — 262 Net (charge-offs) recoveries (184) 4 — (10) — (72) — (43) (305) Ending balance $ 7,792 $ 7,371 $ 4,579 $ 2,236 $ 2,178 $ 458 $ 73 $ 655 $ 25,342 Period-end amount allocated to: Specific reserve $ 699 $ 29 $ — $ 46 $ — $ 22 $ — $ — $ 796 General reserve 7,093 7,342 4,579 2,190 2,178 436 73 655 24,546 Total $ 7,792 $ 7,371 $ 4,579 $ 2,236 $ 2,178 $ 458 $ 73 $ 655 $ 25,342 The ACL for loans by loan class as of the periods indicated was as follows: June 30, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 12,108 30.5 % $ 7,671 30.3 % Real estate: Commercial real estate 12,424 31.3 % 7,975 31.6 % Construction and development 7,050 17.8 % 4,446 17.6 % 1-4 family residential 3,173 8.0 % 2,257 8.9 % Multi-family residential 2,880 7.3 % 1,699 6.7 % Consumer 529 1.3 % 388 1.5 % Agriculture 134 0.3 % 74 0.3 % Other 1,380 3.5 % 770 3.1 % Total allowance for credit losses for loans $ 39,678 100.0 % $ 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 Company had no collateral dependent loans pending foreclosure at June 30, 2020. The recorded investment in impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of CECL was as follows: Unpaid Recorded Average Contractual Investment Recorded Total Recorded Principal with No Investment Recorded Related Investment (Dollars in thousands) Balance Allowance with Allowance Investment Allowance Year-to-Date December 31, 2019 Commercial and industrial $ 1,111 $ 300 $ 699 $ 999 $ 416 $ 2,452 Real estate: Commercial real estate 1,407 1,404 — 1,404 — 2,165 1-4 family residential 3,761 2,166 1,485 3,651 15 4,020 Consumer 210 210 210 — 128 Other 6,653 5,411 1,242 6,653 6 6,825 Total loans $ 13,142 $ 9,491 $ 3,426 $ 12,917 $ 437 $ 15,590 (Dollars in thousands) June 30, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 1,643 Ending balance $ 5,002

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	6 Months Ended
PREMISES AND EQUIPMENT	Jun. 30, 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) June 30, 2020 December 31, 2019 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 53,919 53,869 Furniture and equipment 16,067 15,917 Vehicles 203 203 Construction in progress 1,389 343 85,044 83,798 Less accumulated depreciation (34,315) (32,923) Premises and equipment, net $ 50,729 $ 50,875 Depreciation expense was $1.5 million and $1.6 million for the six months ended June 30, 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	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Jun. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at June 30, 2020 and December 31, 2019 and there were no changes in goodwill during the six months ended June 30, 2020 or the year ended December 31, 2019. As of June 30, 2020, the Company evaluated recent potential triggering events, including the economic disruption and uncertainties related to the COVID-19 pandemic and the sustained instability in the oil and gas industry, that could be indicators of impairment. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at June 30, 2020. Other intangibles 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 June 30, 2020 Core deposits 3.8 years $ 13,750 $ (13,153) $ 597 Customer relationships 8.5 years 6,629 (2,873) 3,756 Servicing assets 11.0 years 330 (187) 143 Total other intangible assets, net $ 20,709 $ (16,213) $ 4,496 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: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 9 30 Decrease from serviced loans paid off or foreclosed — (30) Amortization (55) (16) Balance at end of period $ 143 $ 150

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	6 Months Ended
BANK OWNED LIFE INSURANCE	Jun. 30, 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: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions — (4,655) Net change in cash surrender value 828 4,151 Balance at end of period $ 72,709 $ 71,021

DEPOSITS

DEPOSITS	6 Months Ended
DEPOSITS	Jun. 30, 2020
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: (Dollars in thousands) June 30, 2020 December 31, 2019 Interest-bearing demand accounts $ 366,281 $ 369,744 Money market accounts 878,006 805,942 Saving accounts 98,485 92,183 Certificates and other time deposits, $100,000 or greater 200,505 208,018 Certificates and other time deposits, less than $100,000 197,178 191,640 Total interest-bearing deposits 1,740,455 1,667,527 Noninterest-bearing deposits 1,513,748 1,184,861 Total deposits $ 3,254,203 $ 2,852,388 At June 30, 2020 and December 31, 2019, the Company had $44.7 million and $56.8 million in deposits from public entities and brokered deposits of $137.0 million and $128.9 million, respectively. Accrued interest payable for deposits was $737,000 and $931,000 at June 30, 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 June 30, 2020 or December 31, 2019 from any single or related groups of depositors.

LINES OF CREDIT

LINES OF CREDIT	6 Months Ended
LINES OF CREDIT	Jun. 30, 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 June 30, 2020, there were no outstanding borrowings on this Line of Credit and the Company did not draw on this Line of Credit during 2020 or 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 June 30, 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 June 30, 2020 and December 31, 2019. Federal Home Loan Bank advances outstanding totaled $50.0 million at both June 30, 2020 and December 31, 2019, and these borrowings were on a long-term basis. See maturity information below. During the six months ended June 30, 2020 and 2019, the Company also borrowed under this agreement on a short-term basis. The average outstanding balance for Federal Home Loan Bank advances for the six months ended June 30, 2020 and 2019, was $60.4 million and $46.6 million, respectively. The weighted-average rate for the six months ended June 30, 2020 and 2019, was 1.54% and 2.54%, respectively. The scheduled maturities of Federal Home Loan Bank advances as of the date shown below were as follows: (Dollars in thousands) June 30, 2020 2020 $ — 2021 — 2022 10,000 2023 20,000 2024 20,000 Thereafter — Total $ 50,000 At June 30, 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 June 30, 2020 or December 31, 2019.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 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 Unfunded Commitments Deposits

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
FAIR VALUE DISCLOSURES	Jun. 30, 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 liabilities 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 Level 2 Inputs Level 3 Inputs During the six months ended June 30, 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 Equity Securities Available for Sale Interest Rate Swaps 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) June 30, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,187 $ 1,147 Level 2 inputs: Debt securities available for sale State and municipal securities 64,906 53,279 U.S. Agency Securities: Collateralized mortgage obligations 44,100 55,989 Mortgage-backed securities 125,245 120,847 Interest rate swaps 10,111 2,638 Total fair value of financial assets $ 245,549 $ 233,900 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 10,111 $ 2,638 Credit risk participation agreement 67 $ — Total fair value of financial liabilities $ 10,178 $ 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: June 30, 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 $ 7,470 $ 2,403 $ 5,067 $ 699 $ 416 $ 283 1-4 family residential 1,507 — 1,507 1,485 15 1,470 Other 1,241 468 773 1,242 6 1,236 $ 10,218 $ 2,871 $ 7,347 $ 3,426 $ 437 $ 2,989 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 six months ended June 30, 2020 or during 2019. There were no outstanding foreclosed assets at June 30, 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: June 30, 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 $ 492,400 $ 492,400 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 72,709 72,709 71,881 71,881 Accrued interest receivable 12,999 12,999 8,742 8,742 Servicing asset 143 143 189 189 Level 3 inputs: Loans, including held for sale, net 2,911,611 2,895,210 2,654,362 2,615,268 Other investments 18,369 18,369 16,710 16,710 Total financial assets $ 3,508,231 $ 3,491,830 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,513,748 $ 1,513,748 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,802,436 1,740,455 1,651,359 1,667,527 Federal Home Loan Bank advances 51,106 50,000 48,822 50,000 Repurchase agreements 2,499 2,500 485 485 Accrued interest payable 810 810 1,005 1,005 Total financial liabilities $ 3,370,599 $ 3,307,513 $ 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	6 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Jun. 30, 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 June 30, 2020 and December 31, 2019, no such deterioration was determined by management. At June 30, 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. In April 2020, the Company entered into a credit risk participation agreement with another financial institution. Such agreement is associated with an interest rate swap related to a loan for which the Company is the lead agent bank. This agreement provides credit protection to the Company should the borrower fail to perform under the terms of the interest rate swap agreement. The fair value of the agreement is determined based on the market value of the underlying interest rate swap adjusted for credit spreads and recovery rates. 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) June 30, 2020 Interest rate swaps with customers Other Assets $ 143,202 $ 10,111 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Interest rate swaps with financial institution Other Liabilities 143,202 (10,111) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Credit risk participation agreement with financial institution Other Liabilities 14,473 (67) 3.50% LIBOR 1M + 2.50% 9.75 Total derivatives $ 300,877 $ (67) 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	6 Months Ended
OPERATING LEASES	Jun. 30, 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. At June 30, 2020, the Company’s lease liabilities totaled $17.0 million. The weighted-average discount rate for the six months ended June 30, 2020 was 2.70%. Lease costs for the period shown below were as follows: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Operating lease cost $ 993 $ 921 Short-term lease cost 28 42 Sublease income (63) (92) Total lease cost $ 958 $ 871 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) June 30, 2020 2020 $ 765 2021 2,106 2022 2,226 2023 2,227 2024 1,929 Thereafter 11,163 Total undiscounted lease liability 20,416 Less: Discount on cash flows (3,201) Lease signed, but not yet commenced (1,098) Lease terminated after quarter-end 866 Total operating lease liability $ 16,983 The Company terminated a lease in July 2020 related to a branch and the related future liability is not reflected in the maturity information in the table above.

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	6 Months Ended
	Jun. 30, 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) June 30, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 692,538 $ 652,611 Commitments to extend credit, fixed interest rate 108,473 141,439 $ 801,011 $ 794,050 Standby letters of credit $ 31,143 $ 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	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2020 and 2019, the Company contributed $1.2 million and $1.1 million to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one-fourth 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 $291,000 and $335,000 at June 30, 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 $531,000 and $437,000 at June 30, 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	6 Months Ended
STOCK-BASED COMPENSATION	Jun. 30, 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 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 June 30, 2020, 285,422 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Six Months Ended June 30, 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 (2,524) 12.90 (14,844) 12.62 Forfeited/expired — — (2,000) 18.25 Outstanding at end of period 210,554 16.97 215,478 16.93 A summary of stock options as of the date shown below was as follows: June 30, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 172,555 37,999 210,554 Weighted-average exercise price per share $ 16.09 $ 21.00 $ 16.97 Aggregate intrinsic value (in thousands) $ 848 $ — $ 848 Weighted-average remaining contractual term (years) 4.6 7.0 5.0 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 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 and 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 35,687 32.26 — — Vested (3,100) 29.69 — — Forfeited (3,207) 29.98 — — Outstanding at June 30, 2019 211,153 $ 27.85 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 40,594 28.55 — — Vested (14,550) 31.71 — — Forfeited (8,656) 27.22 (750) 31.79 Outstanding at June 30, 2020 178,831 $ 28.04 17,250 $ 34.57 A summary of restricted stock as of the date shown below was as follows: June 30, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 178,831 17,250 Weighted-average grant date fair value per share $ 28.04 $ 34.57 Aggregate fair value (in thousands) $ 3,755 $ 362 Weighted-average remaining vesting period (years) 2.4 2.3 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 Six Months Ended June 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,550 (1,697) 12,853 Performance-based restricted stock — — — Six Months Ended June 30, 2019 Stock options 14,844 (2,038) 12,806 Non-performance based restricted stock 3,100 (658) 2,442 Performance-based restricted stock — — — For the six months ended June 30, 2020 and 2019, stock compensation expense was $1.1 million and $1.1 million, respectively, and for the three months ended June 30, 2020 and 2019, stock compensation expense was $552,000 and $567,000, respectively. As of June 30, 2020, there was approximately $4.6 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 2.4 years.

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
REGULATORY MATTERS	Jun. 30, 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 June 30, 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 determined 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 transition 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 determined not to opt into the transition 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 June 30, 2020 and December 31, 2019, that the Company and the Bank met all capital adequacy requirements to which they were subject. At June 30, 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 June 30, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 446,215 15.30% $ 204,094 7.00% N/A N/A Bank Only $ 409,242 14.04% $ 204,078 7.00% $ 189,501 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 446,215 15.30% $ 247,828 8.50% N/A N/A Bank Only $ 409,242 14.04% $ 247,809 8.50% $ 233,232 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 482,762 16.56% $ 360,140 10.50% N/A N/A Bank Only $ 445,787 15.29% $ 306,117 10.50% $ 291,540 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 446,215 11.96% $ 149,278 4.00% N/A N/A Bank Only $ 409,242 10.97% $ 149,256 4.00% $ 186,570 5.00% December 31, 2019 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 448,445 15.52% $ 202,218 7.00% N/A N/A Bank Only $ 406,675 14.08% $ 202,203 7.00% $ 187,760 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 448,445 15.52% $ 245,550 8.50% N/A N/A Bank Only $ 406,675 14.08% $ 245,532 8.50% $ 231,089 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 474,104 16.41% $ 303,327 10.50% N/A N/A Bank Only $ 432,334 14.97% $ 303,304 10.50% $ 288,861 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 448,445 13.11% $ 136,798 4.00% N/A N/A Bank Only $ 406,675 11.90% $ 136,754 4.00% $ 170,943 5.00% Dividend Restrictions In the ordinary course of business, the Company may be dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 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 June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Income tax expense $ 539 $ 3,077 $ 2,407 $ 5,676 Effective tax rate 19.95% 17.69% 19.87% 18.62% 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	6 Months Ended
EARNINGS PER SHARE	Jun. 30, 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 below was as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income for common shareholders $ 2,163 $ 14,315 $ 9,704 $ 24,805 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,752 24,921 24,839 24,916 Dilutive effect of outstanding stock options and unvested restricted stock awards 28 121 46 131 Diluted weighted-average shares outstanding 24,780 25,042 24,885 25,047 Earnings per share: Basic $ 0.09 $ 0.57 $ 0.39 $ 1.00 Diluted $ 0.09 $ 0.57 $ 0.39 $ 0.99 For the three and six months ended June 30, 2020, the Company has excluded from diluted weighted-average shares, the impact of 80,000 stock options and the non-performance based restricted stock awards as they are anti-dilutive. The performance-based restricted stock was excluded as they are contingently issuable and the performance conditions for these issuances have not been met.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 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 June 30, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three and six months ended June 30, 2020 and 2019, and consolidated cash flows for the six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 2019.
Accounting Standards Recently Adopted	Accounting Standards Recently Adopted The Company adopted CECL 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 CECL, 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. not
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 12.5% of the Company’s loans as of June 30, 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 of Dallas or the Federal Reserve Bank, and the reserve requirements for the Bank were $16.2 million and $18.6 million at June 30, 2020 and December 31, 2019, respectively. Additionally, as of June 30, 2020 and December 31, 2019, the Company had $10.1 million and $3.1 million, respectively, in cash collateral on deposit with other financial institution counterparties related to interest rate swap transactions. The reserves maintained with the Federal Reserve Bank and the cash collateral for interest rate swap transactions are considered restricted cash.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Six Months Ended June 30, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ 3,707 $ 4,323 Cash paid for interest 6,444 7,789 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease liabilities 1,898 13,208 Dividends accrued (6) 1,292 Repossessed real estate and other assets — 77

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
SECURITIES (Tables)	Jun. 30, 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 June 30, 2020 Debt securities available for sale: State and municipal securities $ 61,661 $ 3,246 $ (1) $ 64,906 U.S. agency securities: Collateralized mortgage obligations 43,503 604 (7) 44,100 Mortgage-backed securities 120,722 4,524 (1) 125,245 Equity securities 1,167 20 — 1,187 Total $ 227,053 $ 8,394 $ (9) $ 235,438 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 June 30, 2020 Amounts maturing in: 1 year or less $ 1,751 $ 1,777 1 year through 5 years 3,032 3,122 5 years through 10 years 14,871 15,472 After 10 years 207,399 215,067 $ 227,053 $ 235,438 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 June 30, 2020 Debt securities available for sale: State and municipal securities $ 625 $ (1) $ — $ — U.S. agency securities: Collateralized mortgage obligations 1,822 (7) — — Mortgage-backed securities 2,047 (1) — — Equity securities — — — — $ 4,494 $ (9) $ — $ — 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)	6 Months Ended
EQUITY INVESTMENTS (Tables)	Jun. 30, 2020
EQUITY INVESTMENTS
Schedule of equity investments that do not have readily determinable fair values	(Dollars in thousands) June 30, 2020 December 31, 2019 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 5,921 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,036 3,049 $ 18,369 $ 16,710

LOANS (Tables)

LOANS (Tables)	6 Months Ended
LOANS (Tables)	Jun. 30, 2020
LOANS
Loans, by portfolio segment	(Dollars in thousands) June 30, 2020 December 31, 2019 Commercial and industrial $ 837,667 28.4% $ 527,607 19.9% Real estate: Commercial real estate 908,027 30.8% 900,746 34.0% Construction and development 552,879 18.8% 527,812 19.9% 1-4 family residential 272,253 9.2% 280,192 10.6% Multi-family residential 255,273 8.7% 277,209 10.5% Consumer 36,338 1.2% 36,782 1.4% Agriculture 7,795 0.3% 9,812 0.4% Other 77,535 2.6% 86,513 3.3% Total gross loans 2,947,767 100.0% 2,646,673 100.0% Less allowance for credit losses for loans (39,678) (25,280) Less deferred loan fees and unearned discounts (12,879) (6,125) Less loans held for sale — (1,463) Loans, net $ 2,895,210 $ 2,613,805
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period June 30, 2020 Commercial $ — $ 566 Commercial real estate 2,500 — June 30, 2019 Commercial real estate $ 1,256 $ 30,330

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	6 Months Ended
LOAN PERFORMANCE (Tables)	Jun. 30, 2020
LOAN PERFORMANCE
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 Total past due and (Dollars in thousands) past due past due past due past due current loans Total loans still accruing June 30, 2020 Commercial and industrial $ 1,256 $ — $ 57 $ 1,313 $ 836,354 $ 837,667 $ — Real estate: Commercial real estate — — — — 908,027 908,027 — Construction and development 386 — — 386 552,493 552,879 — 1-4 family residential 146 — — 146 272,107 272,253 — Multi-family residential — — — — 255,273 255,273 — Consumer 14 — — 14 36,324 36,338 — Agriculture 27 — — 27 7,768 7,795 — Other 3,500 — — 3,500 74,035 77,535 Total loans $ 5,329 $ — $ 57 $ 5,386 $ 2,942,381 $ 2,947,767 $ — 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 $ —
Nonaccrual loans, segregated by loan class	(Dollars in thousands) June 30, 2020 December 31, 2019 Commercial and industrial $ 5,519 $ 596 Real estate: Commercial real estate 4,811 67 Construction and development 506 — 1-4 family residential 332 314 Total nonaccrual loans $ 11,168 $ 977
Troubled debt restructurings 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 June 30, 2020 Commercial and industrial 17 $ 3,131 $ 2,899 $ — $ — $ 232 Commercial real estate 8 9,715 9,715 — — — Construction and development 5 12,564 12,032 — — 532 1-4 family residential 5 1,629 1,651 — — — Total 35 $ 27,039 $ 26,297 $ — $ — $ 764 June 30, 2019 Commercial and industrial 1 $ 163 $ — $ — $ — $ 163 1-4 family residential 1 115 — — — 115 Total 2 $ 278 $ — $ — $ — $ 278
Outstanding TDRs and other loans individually evaluated	(Dollars in thousands) Accruing TDR Non-Accrual TDR Total TDR Other Non-Accrual Other Accruing Total Individually Evaluated June 30, 2020 Commercial and industrial $ 3,147 $ 404 $ 3,551 $ 5,115 $ 748 $ 9,414 Real estate: Commercial real estate 10,631 — 10,631 4,811 — 15,442 Construction and development 12,032 506 12,538 — — 12,538 1-4 family residential 1,699 109 1,808 223 1,710 3,741 Other 6,272 — 6,272 — — 6,272 Total $ 33,781 $ 1,019 $ 34,800 $ 10,149 $ 2,458 $ 47,407 December 31, 2019 Commercial and industrial $ 397 $ 282 $ 679 $ 314 $ 6 $ 999 Real estate: Commercial real estate 1,337 — 1,337 67 — 1,404 1-4 family residential 54 111 165 203 3,283 3,651 Consumer — — — — 210 210 Other 6,653 — 6,653 — — 6,653 Total $ 8,441 $ 393 $ 8,834 $ 584 $ 3,499 $ 12,917

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Tables)	Jun. 30, 2020
ALLOWANCE FOR CREDIT LOSSES
Loans by risk grades, loan class and vintage	The loans by risk grades, loan class and year of origination, or vintage, at June 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 358,270 $ 123,340 $ 59,931 $ 16,374 $ 11,020 $ 7,459 $ 233,552 $ 9,178 $ 819,124 Special mention 49 — 42 15 — — 440 — 546 Substandard 1,000 1,240 4,362 32 309 2,366 3,554 5,134 17,997 Total commercial and industrial 359,319 124,580 64,335 16,421 11,329 9,825 237,546 14,312 837,667 Commercial real estate: Pass 99,446 223,035 191,495 135,581 80,303 116,384 29,130 2,830 878,204 Special mention — 331 — — 1,559 — — — 1,890 Substandard — 1,900 9,690 211 2,609 2,998 10,525 — 27,933 Total commercial real estate 99,446 225,266 201,185 135,792 84,471 119,382 39,655 2,830 908,027 Construction and development: Pass 67,963 176,375 178,456 45,270 8,294 35,021 27,634 1,328 540,341 Substandard — 506 1,500 10,532 — — — — 12,538 Total construction and development 67,963 176,881 179,956 55,802 8,294 35,021 27,634 1,328 552,879 1-4 family residential: Pass 13,806 38,376 62,172 46,787 27,580 66,678 9,719 1,036 266,154 Special mention — — 39 — 388 382 — — 809 Substandard — 545 — 323 18 2,897 — 1,507 5,290 Total 1-4 family residential 13,806 38,921 62,211 47,110 27,986 69,957 9,719 2,543 272,253 Multi-family residential: Pass 6,351 8,951 28,421 46,161 4,325 160,987 77 — 255,273 Total multi-family residential 6,351 8,951 28,421 46,161 4,325 160,987 77 — 255,273 Consumer: Pass 5,589 5,054 2,760 2,282 243 79 19,821 507 36,335 Substandard — — — — — 3 — — 3 Total consumer 5,589 5,054 2,760 2,282 243 82 19,821 507 36,338 Agriculture: Pass 3,034 979 450 124 34 — 3,089 8 7,718 Substandard — — — — — 27 50 — 77 Total agriculture 3,034 979 450 124 34 27 3,139 8 7,795 Other: Pass 3,728 10,316 4,590 155 110 1,515 38,331 12,518 71,263 Substandard — — 1,326 — 1,241 — 3,705 — 6,272 Total other 3,728 10,316 5,916 155 1,351 1,515 42,036 12,518 77,535 Total $ 559,236 $ 590,948 $ 545,234 $ 303,847 $ 138,033 $ 396,796 $ 379,627 $ 34,046 $ 2,947,767
Loans by risk grades and loan class	(Dollars in thousands) Pass Special Mention Substandard Total Loans June 30, 2020 Commercial and industrial $ 819,124 $ 546 $ 17,997 $ 837,667 Real estate: Commercial real estate 878,204 1,890 27,933 908,027 Construction and development 540,341 — 12,538 552,879 1-4 family residential 266,154 809 5,290 272,253 Multi-family residential 255,273 — — 255,273 Consumer 36,335 — 3 36,338 Agriculture 7,718 — 77 7,795 Other 71,263 — 6,272 77,535 Total loans $ 2,874,412 $ 3,245 $ 70,110 $ 2,947,767
Schedule of Charge-offs and recoveries by loan type and vintage
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 June 30, 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 for credit losses for loans 3,169 4,613 2,504 1,256 887 258 (16) 605 13,276 Charge-offs (79) (24) — (66) — (103) — — (272) Recoveries 495 — — 1 — 11 12 1 520 Net (charge-offs) recoveries 416 (24) — (65) — (92) 12 1 248 Ending balance $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Period-end amount allocated to: Specific reserve $ 2,403 $ — $ — $ — $ — $ — $ — $ 468 $ 2,871 General reserve 9,705 12,424 7,050 3,173 2,880 529 134 912 36,807 Total $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total June 30, 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 257 637 281 (35) 667 143 11 (7) 1,954 Charge-offs (425) — — (12) — (87) — (43) (567) Recoveries 241 4 — 2 — 15 — — 262 Net (charge-offs) recoveries (184) 4 — (10) — (72) — (43) (305) Ending balance $ 7,792 $ 7,371 $ 4,579 $ 2,236 $ 2,178 $ 458 $ 73 $ 655 $ 25,342 Period-end amount allocated to: Specific reserve $ 699 $ 29 $ — $ 46 $ — $ 22 $ — $ — $ 796 General reserve 7,093 7,342 4,579 2,190 2,178 436 73 655 24,546 Total $ 7,792 $ 7,371 $ 4,579 $ 2,236 $ 2,178 $ 458 $ 73 $ 655 $ 25,342
Allowance for loan losses by loan category	June 30, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 12,108 30.5 % $ 7,671 30.3 % Real estate: Commercial real estate 12,424 31.3 % 7,975 31.6 % Construction and development 7,050 17.8 % 4,446 17.6 % 1-4 family residential 3,173 8.0 % 2,257 8.9 % Multi-family residential 2,880 7.3 % 1,699 6.7 % Consumer 529 1.3 % 388 1.5 % Agriculture 134 0.3 % 74 0.3 % Other 1,380 3.5 % 770 3.1 % Total allowance for credit losses for loans $ 39,678 100.0 % $ 25,280 100.0 %
Loans individually evaluated and collectively evaluated	June 30, 2020 December 31, 2019 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 9,414 $ 828,253 $ 837,667 $ 999 $ 526,608 $ 527,607 Real estate: Commercial real estate 15,442 892,585 908,027 1,404 899,342 900,746 Construction and development 12,538 540,341 552,879 — 527,812 527,812 1-4 family residential 3,741 268,512 272,253 3,651 276,541 280,192 Multi-family residential — 255,273 255,273 — 277,209 277,209 Consumer — 36,338 36,338 210 36,572 36,782 Agriculture — 7,795 7,795 — 9,812 9,812 Other 6,272 71,263 77,535 6,653 79,860 86,513 Total $ 47,407 $ 2,900,360 $ 2,947,767 $ 12,917 $ 2,633,756 $ 2,646,673
Recorded investment in impaired loans in accordance with ASC 310	Unpaid Recorded Average Contractual Investment Recorded Total Recorded Principal with No Investment Recorded Related Investment (Dollars in thousands) Balance Allowance with Allowance Investment Allowance Year-to-Date December 31, 2019 Commercial and industrial $ 1,111 $ 300 $ 699 $ 999 $ 416 $ 2,452 Real estate: Commercial real estate 1,407 1,404 — 1,404 — 2,165 1-4 family residential 3,761 2,166 1,485 3,651 15 4,020 Consumer 210 210 210 — 128 Other 6,653 5,411 1,242 6,653 6 6,825 Total loans $ 13,142 $ 9,491 $ 3,426 $ 12,917 $ 437 $ 15,590
Schedule of allowance for credit losses for unfunded commitments	(Dollars in thousands) June 30, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 1,643 Ending balance $ 5,002

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	6 Months Ended
PREMISES AND EQUIPMENT (Tables)	Jun. 30, 2020
PREMISES AND EQUIPMENT
Schedule of premises and equipment	(Dollars in thousands) June 30, 2020 December 31, 2019 Land $ 13,466 $ 13,466 Buildings and leasehold improvements 53,919 53,869 Furniture and equipment 16,067 15,917 Vehicles 203 203 Construction in progress 1,389 343 85,044 83,798 Less accumulated depreciation (34,315) (32,923) Premises and equipment, net $ 50,729 $ 50,875

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Jun. 30, 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 June 30, 2020 Core deposits 3.8 years $ 13,750 $ (13,153) $ 597 Customer relationships 8.5 years 6,629 (2,873) 3,756 Servicing assets 11.0 years 330 (187) 143 Total other intangible assets, net $ 20,709 $ (16,213) $ 4,496 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	Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 9 30 Decrease from serviced loans paid off or foreclosed — (30) Amortization (55) (16) Balance at end of period $ 143 $ 150

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	6 Months Ended
BANK OWNED LIFE INSURANCE (Tables)	Jun. 30, 2020
BANK OWNED LIFE INSURANCE.
Schedule of change in cash surrender value	Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions — (4,655) Net change in cash surrender value 828 4,151 Balance at end of period $ 72,709 $ 71,021

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
DEPOSITS (Tables)	Jun. 30, 2020
DEPOSITS
Schedule of deposits	(Dollars in thousands) June 30, 2020 December 31, 2019 Interest-bearing demand accounts $ 366,281 $ 369,744 Money market accounts 878,006 805,942 Saving accounts 98,485 92,183 Certificates and other time deposits, $100,000 or greater 200,505 208,018 Certificates and other time deposits, less than $100,000 197,178 191,640 Total interest-bearing deposits 1,740,455 1,667,527 Noninterest-bearing deposits 1,513,748 1,184,861 Total deposits $ 3,254,203 $ 2,852,388

LINES OF CREDIT (Tables)

LINES OF CREDIT (Tables)	6 Months Ended
LINES OF CREDIT (Tables)	Jun. 30, 2020
LINES OF CREDIT
Schedule of maturity of FHLB advances	(Dollars in thousands) June 30, 2020 2020 $ — 2021 — 2022 10,000 2023 20,000 2024 20,000 Thereafter — Total $ 50,000

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
FAIR VALUE DISCLOSURES (Tables)	Jun. 30, 2020
FAIR VALUE DISCLOSURES
Summary financial assets and financial liabilities measured at fair value on a recurring basis	(Dollars in thousands) June 30, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,187 $ 1,147 Level 2 inputs: Debt securities available for sale State and municipal securities 64,906 53,279 U.S. Agency Securities: Collateralized mortgage obligations 44,100 55,989 Mortgage-backed securities 125,245 120,847 Interest rate swaps 10,111 2,638 Total fair value of financial assets $ 245,549 $ 233,900 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 10,111 $ 2,638 Credit risk participation agreement 67 $ — Total fair value of financial liabilities $ 10,178 $ 2,638
Summary of certain assets measured on a nonrecurring basis	June 30, 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 $ 7,470 $ 2,403 $ 5,067 $ 699 $ 416 $ 283 1-4 family residential 1,507 — 1,507 1,485 15 1,470 Other 1,241 468 773 1,242 6 1,236 $ 10,218 $ 2,871 $ 7,347 $ 3,426 $ 437 $ 2,989
Summary of fair market values of all financial instruments	June 30, 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 $ 492,400 $ 492,400 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 72,709 72,709 71,881 71,881 Accrued interest receivable 12,999 12,999 8,742 8,742 Servicing asset 143 143 189 189 Level 3 inputs: Loans, including held for sale, net 2,911,611 2,895,210 2,654,362 2,615,268 Other investments 18,369 18,369 16,710 16,710 Total financial assets $ 3,508,231 $ 3,491,830 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,513,748 $ 1,513,748 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,802,436 1,740,455 1,651,359 1,667,527 Federal Home Loan Bank advances 51,106 50,000 48,822 50,000 Repurchase agreements 2,499 2,500 485 485 Accrued interest payable 810 810 1,005 1,005 Total financial liabilities $ 3,370,599 $ 3,307,513 $ 2,886,532 $ 2,903,878

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 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) June 30, 2020 Interest rate swaps with customers Other Assets $ 143,202 $ 10,111 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Interest rate swaps with financial institution Other Liabilities 143,202 (10,111) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.65 Credit risk participation agreement with financial institution Other Liabilities 14,473 (67) 3.50% LIBOR 1M + 2.50% 9.75 Total derivatives $ 300,877 $ (67) 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)	6 Months Ended
OPERATING LEASES (Tables)	Jun. 30, 2020
OPERATING LEASES
Summary of lease costs	Six Months Ended June 30, (Dollars in thousands) 2020 2019 Operating lease cost $ 993 $ 921 Short-term lease cost 28 42 Sublease income (63) (92) Total lease cost $ 958 $ 871
Summary of maturity analysis of operating lease liabilities	(Dollars in thousands) June 30, 2020 2020 $ 765 2021 2,106 2022 2,226 2023 2,227 2024 1,929 Thereafter 11,163 Total undiscounted lease liability 20,416 Less: Discount on cash flows (3,201) Lease signed, but not yet commenced (1,098) Lease terminated after quarter-end 866 Total operating lease liability $ 16,983

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	6 Months Ended
	Jun. 30, 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) June 30, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 692,538 $ 652,611 Commitments to extend credit, fixed interest rate 108,473 141,439 $ 801,011 $ 794,050 Standby letters of credit $ 31,143 $ 23,547

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2020
STOCK-BASED COMPENSATION
Schedule of summary of restricted stock	June 30, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 178,831 17,250 Weighted-average grant date fair value per share $ 28.04 $ 34.57 Aggregate fair value (in thousands) $ 3,755 $ 362 Weighted-average remaining vesting period (years) 2.4 2.3
Schedule of shares of stock options exercised and restricted stock vested, shares withheld for taxes and shares issued	Exercised/Vested Shares Withheld Shares Issued Six Months Ended June 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,550 (1,697) 12,853 Performance-based restricted stock — — — Six Months Ended June 30, 2019 Stock options 14,844 (2,038) 12,806 Non-performance based restricted stock 3,100 (658) 2,442 Performance-based restricted stock — — —
Stock options
STOCK-BASED COMPENSATION
Schedule of summary of activity under the stock option plans	Six Months Ended June 30, 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 (2,524) 12.90 (14,844) 12.62 Forfeited/expired — — (2,000) 18.25 Outstanding at end of period 210,554 16.97 215,478 16.93
Schedule of exercisable, unvested and outstanding of stock options and restricted stock	June 30, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 172,555 37,999 210,554 Weighted-average exercise price per share $ 16.09 $ 21.00 $ 16.97 Aggregate intrinsic value (in thousands) $ 848 $ — $ 848 Weighted-average remaining contractual term (years) 4.6 7.0 5.0
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 35,687 32.26 — — Vested (3,100) 29.69 — — Forfeited (3,207) 29.98 — — Outstanding at June 30, 2019 211,153 $ 27.85 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 40,594 28.55 — — Vested (14,550) 31.71 — — Forfeited (8,656) 27.22 (750) 31.79 Outstanding at June 30, 2020 178,831 $ 28.04 17,250 $ 34.57

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
REGULATORY MATTERS (Tables)	Jun. 30, 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 June 30, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 446,215 15.30% $ 204,094 7.00% N/A N/A Bank Only $ 409,242 14.04% $ 204,078 7.00% $ 189,501 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 446,215 15.30% $ 247,828 8.50% N/A N/A Bank Only $ 409,242 14.04% $ 247,809 8.50% $ 233,232 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 482,762 16.56% $ 360,140 10.50% N/A N/A Bank Only $ 445,787 15.29% $ 306,117 10.50% $ 291,540 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 446,215 11.96% $ 149,278 4.00% N/A N/A Bank Only $ 409,242 10.97% $ 149,256 4.00% $ 186,570 5.00% December 31, 2019 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 448,445 15.52% $ 202,218 7.00% N/A N/A Bank Only $ 406,675 14.08% $ 202,203 7.00% $ 187,760 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 448,445 15.52% $ 245,550 8.50% N/A N/A Bank Only $ 406,675 14.08% $ 245,532 8.50% $ 231,089 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 474,104 16.41% $ 303,327 10.50% N/A N/A Bank Only $ 432,334 14.97% $ 303,304 10.50% $ 288,861 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 448,445 13.11% $ 136,798 4.00% N/A N/A Bank Only $ 406,675 11.90% $ 136,754 4.00% $ 170,943 5.00%

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
INCOME TAXES (Tables)	Jun. 30, 2020
INCOME TAXES
Schedule of provision for income tax expense and effective tax rates	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Income tax expense $ 539 $ 3,077 $ 2,407 $ 5,676 Effective tax rate 19.95% 17.69% 19.87% 18.62%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 30, 2020
EARNINGS PER SHARE
Schedule of basic and diluted earnings per common share	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income for common shareholders $ 2,163 $ 14,315 $ 9,704 $ 24,805 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,752 24,921 24,839 24,916 Dilutive effect of outstanding stock options and unvested restricted stock awards 28 121 46 131 Diluted weighted-average shares outstanding 24,780 25,042 24,885 25,047 Earnings per share: Basic $ 0.09 $ 0.57 $ 0.39 $ 1.00 Diluted $ 0.09 $ 0.57 $ 0.39 $ 0.99

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	Jun. 30, 2020location
Operating branches	35
Houston market area
Operating branches	19
Beaumont/East Texas market area
Operating branches	15
Dallas market area
Operating branches	1

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 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 ($)	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Accounting Standards Recently Adopted
Purchased financial assets with credit deterioration	$ 0
Operating lease right-to-use asset		$ 14,081,000	$ 12,926,000
Operating lease liabilities		$ 16,983,000	$ 15,704,000
LIBOR \| Interest rate swaps
Accounting Standards Recently Adopted
Percentage of Loans		12.5
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 flow reporting (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve required at federal reserve bank	$ 16,200		$ 18,600
Cash collateral used in interest rate swap transactions	10,100		$ 3,100
Supplemental disclosures of cash flow information:
Cash paid for taxes	3,707	$ 4,323
Cash paid for interest	6,444	7,789
Supplemental disclosures of non-cash flow information:
Operating lease right-to-use asset obtained in exchange for lease liabilities	1,898	13,208
Dividends accrued	$ (6)	1,292
Repossessed real estate and other assets		$ 77

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt securities available for sale:
Amortized cost	$ 227,053	$ 228,251
Fair Value	235,438	231,262
Securities Available for Sale
Debt securities available for sale:
Amortized cost	227,053	228,251
Gross Unrealized Gains	8,394	3,400
Gross Unrealized Losses	(9)	(389)
Fair Value	235,438	231,262
Securities Available for Sale \| State and municipal securities
Debt securities available for sale:
Amortized cost	61,661	51,525
Gross Unrealized Gains	3,246	1,761
Gross Unrealized Losses	(1)	(7)
Fair Value	64,906	53,279
Securities Available for Sale \| Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	43,503	55,784
Gross Unrealized Gains	604	324
Gross Unrealized Losses	(7)	(119)
Fair Value	44,100	55,989
Securities Available for Sale \| Mortgage-backed securities
Debt securities available for sale:
Amortized cost	120,722	119,787
Gross Unrealized Gains	4,524	1,315
Gross Unrealized Losses	(1)	(255)
Fair Value	125,245	120,847
Securities Available for Sale \| Equity securities
Debt securities available for sale:
Amortized cost	1,167	1,155
Gross Unrealized Gains	20
Gross Unrealized Losses		(8)
Fair Value	$ 1,187	$ 1,147

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 1,751	$ 2,535
Amortized cost, 1 year through 5 years	3,032	3,081
Amortized cost, 5 years through 10 years	14,871	14,564
Amortized cost, After 10 years	207,399	208,071
Available-for-sale Securities, Amortized Cost Basis, Total	227,053	228,251
Available for Sale - Fair Value
Estimated fair value, 1 year or less	1,777	2,532
Estimated fair value, 1 year through 5 years	3,122	3,145
Estimated fair value, 5 years through 10 years	15,472	14,874
Estimated fair value, After 10 years	215,067	210,711
Available-for-sale Securities, Total	235,438	231,262
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	227,053	228,251
Available for Sale - Fair Value
Available-for-sale Securities, Total	$ 235,438	$ 231,262

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details)	6 Months Ended	12 Months Ended
SECURITIES - Securities carrying amount (Details)	Jun. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security	Jun. 30, 2019USD ($)
SECURITIES.
Securities sold during the year	$ 0
Carrying amount of securities sold in the period			$ 358,000
Carrying value of securities pledged	$ 35,500,000	$ 50,800,000
Securities held in a gross unrealized loss position \| security	5	27
Impairment loss on securities	$ 0
Accrued interest receivable for securities	$ 1	$ 1,100,000

SECURITIES - Securities with un

SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investment securities
Fair Value - Less Than Twelve Months	$ 4,494	$ 25,854
Gross Unrealized Losses - Less Than Twelve Months	(9)	(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	625	3,539
Gross Unrealized Losses - Less Than Twelve Months	(1)	(7)
Fair Value - Twelve Months or More		106
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months	1,822	10,687
Gross Unrealized Losses - Less Than Twelve Months	(7)	(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	2,047	11,628
Gross Unrealized Losses - Less Than Twelve Months	$ (1)	(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	Jun. 30, 2020	Dec. 31, 2019
Equity investments
Equity investments, total	$ 18,369	$ 16,710
Unfunded commitments	4,600	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	$ 5,921	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	$ 3,036	$ 3,049

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans
Total loans	$ 2,947,767	$ 2,646,673
Percentage of loan	100.00%	100.00%
Less allowance for credit losses for loans	$ (39,678)	$ (25,280)	$ (25,342)	$ (23,693)
Less deferred loan fees and unearned discounts	$ (12,879)	(6,125)
Less loans held for sale		$ (1,463)
Loans And Leases Receivable Allowance, Percent	100.00%	100.00%
Loans, net	$ 2,895,210	$ 2,613,805
Accrued interest receivable	12,000	7,500
Commercial and industrial
Loans
Total loans	$ 837,667	$ 527,607
Percentage of loan	28.40%	19.90%
Less allowance for credit losses for loans	$ (12,108)	$ (7,671)	(7,792)	(7,719)
Loans And Leases Receivable Allowance, Percent	30.50%	30.30%
Commercial real estate
Loans
Total loans	$ 908,027	$ 900,746
Percentage of loan	30.80%	34.00%
Less allowance for credit losses for loans	$ (12,424)	$ (7,975)	(7,371)	(6,730)
Loans And Leases Receivable Allowance, Percent	31.30%	31.60%
Construction and development
Loans
Total loans	$ 552,879	$ 527,812
Percentage of loan	18.80%	19.90%
Less allowance for credit losses for loans	$ (7,050)	$ (4,446)	(4,579)	(4,298)
Loans And Leases Receivable Allowance, Percent	17.80%	17.60%
1-4 family residential
Loans
Total loans	$ 272,253	$ 280,192
Percentage of loan	9.20%	10.60%
Less allowance for credit losses for loans	$ (3,173)	$ (2,257)	(2,236)	(2,281)
Loans And Leases Receivable Allowance, Percent	8.00%	8.90%
Multifamily residential
Loans
Total loans	$ 255,273	$ 277,209
Percentage of loan	8.70%	10.50%
Less allowance for credit losses for loans	$ (2,880)	$ (1,699)	(2,178)	(1,511)
Loans And Leases Receivable Allowance, Percent	7.30%	6.70%
Consumer
Loans
Total loans	$ 36,338	$ 36,782
Percentage of loan	1.20%	1.40%
Less allowance for credit losses for loans	$ (529)	$ (388)	(458)	(387)
Loans And Leases Receivable Allowance, Percent	1.30%	1.50%
Agriculture
Loans
Total loans	$ 7,795	$ 9,812
Percentage of loan	0.30%	0.40%
Less allowance for credit losses for loans	$ (134)	$ (74)	(73)	(62)
Loans And Leases Receivable Allowance, Percent	0.30%	0.30%
Other
Loans
Total loans	$ 77,535	$ 86,513
Percentage of loan	2.60%	3.30%
Less allowance for credit losses for loans	$ (1,380)	$ (770)	$ (655)	$ (705)
Loans And Leases Receivable Allowance, Percent	3.50%	3.10%

LOANS - Loan participations pur

LOANS - Loan participations purchased and sold and Loans Guaranteed (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Loans
SBA loans that were sold with servicing retained	$ 508,000	$ 1,700,000
Commercial
Loans
Participations sold during the period	566,000
Commercial and industrial
Loans
Participations purchased during the period		1,256,000
Participations sold during the period		$ 30,330,000
Commercial real estate
Loans
Participations purchased during the period	$ 2,500,000

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of loan past due (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Aging analysis
Total past due	$ 5,386,000		$ 2,874,000
Total current loans	2,942,381,000		2,643,799,000
Total Loans	2,947,767,000		2,646,673,000
Interest income that would have been earned under the original terms of the nonaccrual loans	121,000	$ 87,000
30 to 59 days past due
Aging analysis
Total past due	5,329,000		2,071,000
60 to 89 days past due
Aging analysis
Total past due			563,000
90 days or greater past due
Aging analysis
Total past due	57,000		240,000
Commercial and industrial
Aging analysis
Total past due	1,313,000		935,000
Total current loans	836,354,000		526,672,000
Total Loans	837,667,000		527,607,000
Commercial and industrial \| 30 to 59 days past due
Aging analysis
Total past due	1,256,000		664,000
Commercial and industrial \| 60 to 89 days past due
Aging analysis
Total past due			31,000
Commercial and industrial \| 90 days or greater past due
Aging analysis
Total past due	57,000		240,000
Commercial real estate
Aging analysis
Total past due			865,000
Total current loans	908,027,000		899,881,000
Total Loans	908,027,000		900,746,000
Commercial real estate \| 30 to 59 days past due
Aging analysis
Total past due			865,000
Construction and development
Aging analysis
Total past due	386,000		532,000
Total current loans	552,493,000		527,280,000
Total Loans	552,879,000		527,812,000
Construction and development \| 30 to 59 days past due
Aging analysis
Total past due	386,000
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	146,000		499,000
Total current loans	272,107,000		279,693,000
Total Loans	272,253,000		280,192,000
1-4 family residential \| 30 to 59 days past due
Aging analysis
Total past due	146,000		499,000
Multifamily residential
Aging analysis
Total current loans	255,273,000		277,209,000
Total Loans	255,273,000		277,209,000
Consumer
Aging analysis
Total past due	14,000		43,000
Total current loans	36,324,000		36,739,000
Total Loans	36,338,000		36,782,000
Consumer \| 30 to 59 days past due
Aging analysis
Total past due	14,000		43,000
Agriculture
Aging analysis
Total past due	27,000
Total current loans	7,768,000		9,812,000
Total Loans	7,795,000		9,812,000
Agriculture \| 30 to 59 days past due
Aging analysis
Total past due	27,000
Other
Aging analysis
Total past due	3,500,000
Total current loans	74,035,000		86,513,000
Total Loans	77,535,000		$ 86,513,000
Other \| 30 to 59 days past due
Aging analysis
Total past due	$ 3,500,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Nonaccrual loans
Total nonaccrual loans	$ 11,168	$ 977
Commercial and industrial
Nonaccrual loans
Total nonaccrual loans	5,519	596
Commercial real estate
Nonaccrual loans
Total nonaccrual loans	4,811	67
Construction and development
Nonaccrual loans
Total nonaccrual loans	506
1-4 family residential
Nonaccrual loans
Total nonaccrual loans	$ 332	$ 314

LOAN PERFORMANCE - Troubled deb

LOAN PERFORMANCE - Troubled debt restructurings due to borrower's financial difficulties (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)loan	Jun. 30, 2019USD ($)loan
Restructured loans
Number of loans \| loan	35	2
Premodification outstanding Recorded Investment	$ 27,039	$ 278
Restructured Payments
Restructured loans
Postmodification recorded investment	26,297
Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 764	$ 278
Commercial and industrial
Restructured loans
Number of loans \| loan	17	1
Premodification outstanding Recorded Investment	$ 3,131	$ 163
Commercial and industrial \| Restructured Payments
Restructured loans
Postmodification recorded investment	2,899
Commercial and industrial \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 232	$ 163
Commercial real estate
Restructured loans
Number of loans \| loan	8
Premodification outstanding Recorded Investment	$ 9,715
Commercial real estate \| Restructured Payments
Restructured loans
Postmodification recorded investment	$ 9,715
Construction and development
Restructured loans
Number of loans \| loan	5
Premodification outstanding Recorded Investment	$ 12,564
Construction and development \| Restructured Payments
Restructured loans
Postmodification recorded investment	12,032
Construction and development \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 532
1-4 family residential
Restructured loans
Number of loans \| loan	5	1
Premodification outstanding Recorded Investment	$ 1,629	$ 115
1-4 family residential \| Restructured Payments
Restructured loans
Postmodification recorded investment	$ 1,651
1-4 family residential \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment		$ 115

LOAN PERFORMANCE - Outstanding

LOAN PERFORMANCE - Outstanding Troubled debt restructurings and other loans individually evaluated (Details)	12 Months Ended
	Dec. 31, 2019USD ($)	Jun. 30, 2020USD ($)
Restructured loans
Accruing TDR	$ 8,441,000	$ 33,781,000
Non-Accrual TDR	393,000	1,019,000
Total TDR	8,834,000	34,800,000
Other Non-Accrual	584,000	10,149,000
Other Accruing	3,499,000	2,458,000
Total Individually Evaluated	12,917,000	47,407,000
Commitment to fund on loans that were previously restructured	$ 2,000,000	2,700,000
Loans modified as a troubled debt restructured loan	0
Commercial and industrial
Restructured loans
Accruing TDR	$ 397,000	3,147,000
Non-Accrual TDR	282,000	404,000
Total TDR	679,000	3,551,000
Other Non-Accrual	314,000	5,115,000
Other Accruing	6,000	748,000
Total Individually Evaluated	999,000	9,414,000
Commercial real estate
Restructured loans
Accruing TDR	1,337,000	10,631,000
Total TDR	1,337,000	10,631,000
Other Non-Accrual	67,000	4,811,000
Total Individually Evaluated	1,404,000	15,442,000
Construction and development
Restructured loans
Accruing TDR		12,032,000
Non-Accrual TDR		506,000
Total TDR		12,538,000
Total Individually Evaluated		12,538,000
1-4 family residential
Restructured loans
Accruing TDR	54,000	1,699,000
Non-Accrual TDR	111,000	109,000
Total TDR	165,000	1,808,000
Other Non-Accrual	203,000	223,000
Other Accruing	3,283,000	1,710,000
Total Individually Evaluated	3,651,000	3,741,000
Other
Restructured loans
Accruing TDR	6,653,000	6,272,000
Total TDR	6,653,000	6,272,000
Total Individually Evaluated	6,653,000	$ 6,272,000
Consumer
Restructured loans
Other Accruing	210,000
Total Individually Evaluated	$ 210,000

LOAN PERFORMANCE - COVID-19 (De

LOAN PERFORMANCE - COVID-19 (Details) - One-month to six-month deferral periods $ in Millions	Jun. 30, 2020USD ($)loan
Restructured loans
Number of loans deferred due to customers impacted by COVID-19 \| loan	689
Outstanding principal amount deferred due to COVID-19	$ 545
Principal and interest payments deferred due to COVID-19	$ 17

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - ASU 2016-13	Jan. 01, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)		1.35
Minimum
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)			0.96
Total factors (as a percent)	0.67	1.08
Maximum
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)	0.99
Total factors (as a percent)	2.42	2.81

ALLOWANCE FOR CREDIT LOSSES - L

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
2020	$ 559,236
2019	590,948
2018	545,234
2017	303,847
2016	138,033
Prior	396,796
Revolving Loans	379,627
Converted revolving loan	34,046
Total Loans	2,947,767	$ 2,646,673
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	837,667	527,607
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	908,027	900,746
Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	552,879	527,812
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	272,253	280,192
Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	255,273	277,209
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	36,338	36,782
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,795	9,812
Other
Financing Receivable, Recorded Investment [Line Items]
Total Loans	77,535	86,513
Loans by risk grades
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,947,767	2,646,673
Loans by risk grades \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	359,319
2019	124,580
2018	64,335
2017	16,421
2016	11,329
Prior	9,825
Revolving Loans	237,546
Converted revolving loan	14,312
Total Loans	837,667	527,607
Loans by risk grades \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	99,446
2019	225,266
2018	201,185
2017	135,792
2016	84,471
Prior	119,382
Revolving Loans	39,655
Converted revolving loan	2,830
Total Loans	908,027	900,746
Loans by risk grades \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	67,963
2019	176,881
2018	179,956
2017	55,802
2016	8,294
Prior	35,021
Revolving Loans	27,634
Converted revolving loan	1,328
Total Loans	552,879	527,812
Loans by risk grades \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	13,806
2019	38,921
2018	62,211
2017	47,110
2016	27,986
Prior	69,957
Revolving Loans	9,719
Converted revolving loan	2,543
Total Loans	272,253	280,192
Loans by risk grades \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2020	6,351
2019	8,951
2018	28,421
2017	46,161
2016	4,325
Prior	160,987
Revolving Loans	77
Total Loans	255,273	277,209
Loans by risk grades \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	5,589
2019	5,054
2018	2,760
2017	2,282
2016	243
Prior	82
Revolving Loans	19,821
Converted revolving loan	507
Total Loans	36,338	36,782
Loans by risk grades \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	3,034
2019	979
2018	450
2017	124
2016	34
Prior	27
Revolving Loans	3,139
Converted revolving loan	8
Total Loans	7,795	9,812
Loans by risk grades \| Other
Financing Receivable, Recorded Investment [Line Items]
2020	3,728
2019	10,316
2018	5,916
2017	155
2016	1,351
Prior	1,515
Revolving Loans	42,036
Converted revolving loan	12,518
Total Loans	77,535	86,513
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,874,412	2,582,970
Pass \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	358,270
2019	123,340
2018	59,931
2017	16,374
2016	11,020
Prior	7,459
Revolving Loans	233,552
Converted revolving loan	9,178
Total Loans	819,124	513,417
Pass \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	99,446
2019	223,035
2018	191,495
2017	135,581
2016	80,303
Prior	116,384
Revolving Loans	29,130
Converted revolving loan	2,830
Total Loans	878,204	876,207
Pass \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	67,963
2019	176,375
2018	178,456
2017	45,270
2016	8,294
Prior	35,021
Revolving Loans	27,634
Converted revolving loan	1,328
Total Loans	540,341	515,247
Pass \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	13,806
2019	38,376
2018	62,172
2017	46,787
2016	27,580
Prior	66,678
Revolving Loans	9,719
Converted revolving loan	1,036
Total Loans	266,154	274,731
Pass \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2020	6,351
2019	8,951
2018	28,421
2017	46,161
2016	4,325
Prior	160,987
Revolving Loans	77
Total Loans	255,273	277,209
Pass \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	5,589
2019	5,054
2018	2,760
2017	2,282
2016	243
Prior	79
Revolving Loans	19,821
Converted revolving loan	507
Total Loans	36,335	36,566
Pass \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	3,034
2019	979
2018	450
2017	124
2016	34
Revolving Loans	3,089
Converted revolving loan	8
Total Loans	7,718	9,733
Pass \| Other
Financing Receivable, Recorded Investment [Line Items]
2020	3,728
2019	10,316
2018	4,590
2017	155
2016	110
Prior	1,515
Revolving Loans	38,331
Converted revolving loan	12,518
Total Loans	71,263	79,860
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,245	34,742
Special Mention \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	49
2018	42
2017	15
Revolving Loans	440
Total Loans	546	2,963
Special Mention \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	331
2016	1,559
Total Loans	1,890	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	39
2016	388
Prior	382
Total Loans	809	594
Special Mention \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans		50
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	70,110	28,961
Substandard \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	1,000
2019	1,240
2018	4,362
2017	32
2016	309
Prior	2,366
Revolving Loans	3,554
Converted revolving loan	5,134
Total Loans	17,997	11,227
Substandard \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	1,900
2018	9,690
2017	211
2016	2,609
Prior	2,998
Revolving Loans	10,525
Total Loans	27,933	5,969
Substandard \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2019	506
2018	1,500
2017	10,532
Total Loans	12,538
Substandard \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2019	545
2017	323
2016	18
Prior	2,897
Converted revolving loan	1,507
Total Loans	5,290	4,867
Substandard \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Prior	3
Total Loans	3	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	1,326
2016	1,241
Revolving Loans	3,705
Total Loans	$ 6,272	$ 6,653

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Loans individually evaluated and collectively evaluated (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loan Impairment Assessment
Individually Evaluated Loans	$ 47,407	$ 12,917
Collectively Evaluated Loans	2,900,360	2,633,756
Total Loans	2,947,767	2,646,673
Commercial and industrial
Loan Impairment Assessment
Individually Evaluated Loans	9,414	999
Collectively Evaluated Loans	828,253	526,608
Total Loans	837,667	527,607
Commercial real estate
Loan Impairment Assessment
Individually Evaluated Loans	15,442	1,404
Collectively Evaluated Loans	892,585	899,342
Total Loans	908,027	900,746
Construction and development
Loan Impairment Assessment
Individually Evaluated Loans	12,538
Collectively Evaluated Loans	540,341	527,812
Total Loans	552,879	527,812
1-4 family residential
Loan Impairment Assessment
Individually Evaluated Loans	3,741	3,651
Collectively Evaluated Loans	268,512	276,541
Total Loans	272,253	280,192
Multifamily residential
Loan Impairment Assessment
Collectively Evaluated Loans	255,273	277,209
Total Loans	255,273	277,209
Consumer
Loan Impairment Assessment
Individually Evaluated Loans		210
Collectively Evaluated Loans	36,338	36,572
Total Loans	36,338	36,782
Agriculture
Loan Impairment Assessment
Collectively Evaluated Loans	7,795	9,812
Total Loans	7,795	9,812
Other
Loan Impairment Assessment
Individually Evaluated Loans	6,272	6,653
Collectively Evaluated Loans	71,263	79,860
Total Loans	$ 77,535	$ 86,513

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades and loan class (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized cost of loans by loan type
Total loans	$ 2,947,767	$ 2,646,673
Loans by risk grades
Amortized cost of loans by loan type
Total loans	2,947,767	2,646,673
Pass
Amortized cost of loans by loan type
Total loans	2,874,412	2,582,970
Special Mention
Amortized cost of loans by loan type
Total loans	3,245	34,742
Substandard
Amortized cost of loans by loan type
Total loans	70,110	28,961
Commercial and industrial
Amortized cost of loans by loan type
Total loans	837,667	527,607
Commercial and industrial \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	837,667	527,607
Commercial and industrial \| Pass
Amortized cost of loans by loan type
Total loans	819,124	513,417
Commercial and industrial \| Special Mention
Amortized cost of loans by loan type
Total loans	546	2,963
Commercial and industrial \| Substandard
Amortized cost of loans by loan type
Total loans	17,997	11,227
Commercial real estate
Amortized cost of loans by loan type
Total loans	908,027	900,746
Commercial real estate \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	908,027	900,746
Commercial real estate \| Pass
Amortized cost of loans by loan type
Total loans	878,204	876,207
Commercial real estate \| Special Mention
Amortized cost of loans by loan type
Total loans	1,890	18,570
Commercial real estate \| Substandard
Amortized cost of loans by loan type
Total loans	27,933	5,969
Construction and development
Amortized cost of loans by loan type
Total loans	552,879	527,812
Construction and development \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	552,879	527,812
Construction and development \| Pass
Amortized cost of loans by loan type
Total loans	540,341	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	12,538
1-4 family residential
Amortized cost of loans by loan type
Total loans	272,253	280,192
1-4 family residential \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	272,253	280,192
1-4 family residential \| Pass
Amortized cost of loans by loan type
Total loans	266,154	274,731
1-4 family residential \| Special Mention
Amortized cost of loans by loan type
Total loans	809	594
1-4 family residential \| Substandard
Amortized cost of loans by loan type
Total loans	5,290	4,867
Multifamily residential
Amortized cost of loans by loan type
Total loans	255,273	277,209
Multifamily residential \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	255,273	277,209
Multifamily residential \| Pass
Amortized cost of loans by loan type
Total loans	255,273	277,209
Consumer
Amortized cost of loans by loan type
Total loans	36,338	36,782
Consumer \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	36,338	36,782
Consumer \| Pass
Amortized cost of loans by loan type
Total loans	36,335	36,566
Consumer \| Substandard
Amortized cost of loans by loan type
Total loans	3	216
Agriculture
Amortized cost of loans by loan type
Total loans	7,795	9,812
Agriculture \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	7,795	9,812
Agriculture \| Pass
Amortized cost of loans by loan type
Total loans	7,718	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	77,535	86,513
Other \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	77,535	86,513
Other \| Pass
Amortized cost of loans by loan type
Total loans	71,263	79,860
Other \| Substandard
Amortized cost of loans by loan type
Total loans	$ 6,272	$ 6,653

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan class and vintage (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	$ (272)	$ (567)
Recovery	520	262
Net (charge-offs) recoveries	248	(305)
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(79)	(425)
Recovery	495	241
Net (charge-offs) recoveries	416	(184)
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(24)
Recovery		4
Net (charge-offs) recoveries	(24)	4
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(66)	(12)
Recovery	1	2
Net (charge-offs) recoveries	(65)	(10)
Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(103)	(87)
Recovery	11	15
Net (charge-offs) recoveries	(92)	(72)
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	12
Net (charge-offs) recoveries	12
Other
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(43)
Recovery	1
Net (charge-offs) recoveries	1	$ (43)
2020.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	10
2020. \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	10
Net (charge-offs) recoveries	10
2019.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	(63)
2019. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	2
Net (charge-offs) recoveries	2
2019. \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(65)
Net (charge-offs) recoveries	(65)
2018.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	84
2018. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	92
Net (charge-offs) recoveries	92
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	(97)
2017. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(36)
Recovery	33
Net (charge-offs) recoveries	(3)
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	(11)
2016. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(42)
Recovery	19
Net (charge-offs) recoveries	(23)
2016. \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	12
Net (charge-offs) recoveries	12
Prior.
Financing Receivable, Recorded Investment [Line Items]
Net (charge-offs) recoveries	132
Prior. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	155
Net (charge-offs) recoveries	155
Prior. \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(24)
Net (charge-offs) recoveries	(24)
Prior. \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Recovery	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	193
Revolving Loans. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Recovery	194
Net (charge-offs) recoveries	$ 193

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - Activity in the total ACL for loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Loan losses segregated by loan class
Beginning balance			$ 25,280	$ 23,693
Impact of CECL adoption			874
Provision for Credit Loan Losses	$ 8,537	$ 807	13,276	1,954
Charge-offs			(272)	(567)
Recoveries			520	262
Financing Receivable, Allowance for Credit Losses	39,678	25,342	25,280	25,342
Net (charge-offs) recoveries			248	(305)
Ending balance	39,678	25,342	39,678	25,342
Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,871	796	2,871	796
Ending balance	2,871	796	2,871	796
General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	36,807	24,546	36,807	24,546
Ending balance	36,807	24,546	36,807	24,546
Commercial and industrial
Loan losses segregated by loan class
Beginning balance			7,671	7,719
Impact of CECL adoption			852
Provision for Credit Loan Losses			3,169	257
Charge-offs			(79)	(425)
Recoveries			495	241
Financing Receivable, Allowance for Credit Losses	12,108	7,792	7,671	7,792
Net (charge-offs) recoveries			416	(184)
Ending balance	12,108	7,792	12,108	7,792
Commercial and industrial \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,403	699	2,403	699
Ending balance	2,403	699	2,403	699
Commercial and industrial \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	9,705	7,093	9,705	7,093
Ending balance	9,705	7,093	9,705	7,093
Commercial real estate
Loan losses segregated by loan class
Beginning balance			7,975	6,730
Impact of CECL adoption			(140)
Provision for Credit Loan Losses			4,613	637
Charge-offs			(24)
Recoveries				4
Financing Receivable, Allowance for Credit Losses	12,424	7,371	7,975	7,371
Net (charge-offs) recoveries			(24)	4
Ending balance	12,424	7,371	12,424	7,371
Commercial real estate \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		29		29
Ending balance		29		29
Commercial real estate \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	12,424	7,342	12,424	7,342
Ending balance	12,424	7,342	12,424	7,342
Construction and development
Loan losses segregated by loan class
Beginning balance			4,446	4,298
Impact of CECL adoption			100
Provision for Credit Loan Losses			2,504	281
Financing Receivable, Allowance for Credit Losses	7,050	4,579	4,446	4,579
Ending balance	7,050	4,579	7,050	4,579
Construction and development \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	7,050	4,579	7,050	4,579
Ending balance	7,050	4,579	7,050	4,579
1-4 family residential
Loan losses segregated by loan class
Beginning balance			2,257	2,281
Impact of CECL adoption			(275)
Provision for Credit Loan Losses			1,256	(35)
Charge-offs			(66)	(12)
Recoveries			1	2
Financing Receivable, Allowance for Credit Losses	3,173	2,236	3,173	2,236
Net (charge-offs) recoveries			(65)	(10)
Ending balance	3,173	2,236	3,173	2,236
1-4 family residential \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		46		46
Ending balance		46		46
1-4 family residential \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	3,173	2,190	3,173	2,190
Ending balance	3,173	2,190	3,173	2,190
Multifamily residential
Loan losses segregated by loan class
Beginning balance			1,699	1,511
Impact of CECL adoption			294
Provision for Credit Loan Losses			887	667
Financing Receivable, Allowance for Credit Losses	2,880	2,178	1,699	2,178
Ending balance	2,880	2,178	2,880	2,178
Multifamily residential \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,880	2,178	2,880	2,178
Ending balance	2,880	2,178	2,880	2,178
Consumer
Loan losses segregated by loan class
Beginning balance			388	387
Impact of CECL adoption			(25)
Provision for Credit Loan Losses			258	143
Charge-offs			(103)	(87)
Recoveries			11	15
Financing Receivable, Allowance for Credit Losses	529	458	388	458
Net (charge-offs) recoveries			(92)	(72)
Ending balance	529	458	529	458
Consumer \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		22		22
Ending balance		22		22
Consumer \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	529	436	529	436
Ending balance	529	436	529	436
Agriculture
Loan losses segregated by loan class
Beginning balance			74	62
Impact of CECL adoption			64
Provision for Credit Loan Losses			(16)	11
Recoveries			12
Financing Receivable, Allowance for Credit Losses	134	73	74	73
Net (charge-offs) recoveries			12
Ending balance	134	73	134	73
Agriculture \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	134	73	134	73
Ending balance	134	73	134	73
Other
Loan losses segregated by loan class
Beginning balance			770	705
Impact of CECL adoption			4
Provision for Credit Loan Losses			605	(7)
Charge-offs				(43)
Recoveries			1
Financing Receivable, Allowance for Credit Losses	1,380	655	770	655
Net (charge-offs) recoveries			1	(43)
Ending balance	1,380	655	1,380	655
Other \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	468		468
Ending balance	468		468
Other \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	912	655	912	655
Ending balance	912	$ 655	912	$ 655
Unfunded Commitment
Loan losses segregated by loan class
Beginning balance			378
Financing Receivable, Allowance for Credit Losses	5,002		5,002
Ending balance	$ 5,002		$ 5,002

ALLOWANCE FOR LOAN LOSSES - ACL

ALLOWANCE FOR LOAN LOSSES - ACL for loans by loan class (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Loan Category
Allowance for credit losses on loans	$ 39,678	$ 25,280	$ 25,342	$ 23,693
Allowance for loan losses (as a percent)	100.00%	100.00%
Commercial and industrial
Loan Category
Allowance for credit losses on loans	$ 12,108	$ 7,671	7,792	7,719
Allowance for loan losses (as a percent)	30.50%	30.30%
Commercial real estate
Loan Category
Allowance for credit losses on loans	$ 12,424	$ 7,975	7,371	6,730
Allowance for loan losses (as a percent)	31.30%	31.60%
Construction and development
Loan Category
Allowance for credit losses on loans	$ 7,050	$ 4,446	4,579	4,298
Allowance for loan losses (as a percent)	17.80%	17.60%
1-4 family residential
Loan Category
Allowance for credit losses on loans	$ 3,173	$ 2,257	2,236	2,281
Allowance for loan losses (as a percent)	8.00%	8.90%
Multifamily residential
Loan Category
Allowance for credit losses on loans	$ 2,880	$ 1,699	2,178	1,511
Allowance for loan losses (as a percent)	7.30%	6.70%
Consumer
Loan Category
Allowance for credit losses on loans	$ 529	$ 388	458	387
Allowance for loan losses (as a percent)	1.30%	1.50%
Agriculture
Loan Category
Allowance for credit losses on loans	$ 134	$ 74	73	62
Allowance for loan losses (as a percent)	0.30%	0.30%
Other
Loan Category
Allowance for credit losses on loans	$ 1,380	$ 770	$ 655	$ 705
Allowance for loan losses (as a percent)	3.50%	3.10%

ALLOWANCE FOR CREDIT LOSSES - R

ALLOWANCE FOR CREDIT LOSSES - Recorded investment in impaired loans in accordance with ASC 310 (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Loan Impairment Assessment
Unpaid Contractual Principal Balance	$ 13,142
Recorded Investment with No Allowance	9,491
Recorded Investment with Allowance	3,426
Total Recorded Investment	12,917
Related Allowance	437
Average Recorded Investment YeartoDate	15,590
Commercial and industrial
Loan Impairment Assessment
Unpaid Contractual Principal Balance	1,111
Recorded Investment with No Allowance	300
Recorded Investment with Allowance	699
Total Recorded Investment	999
Related Allowance	416
Average Recorded Investment YeartoDate	2,452
Commercial real estate
Loan Impairment Assessment
Unpaid Contractual Principal Balance	1,407
Recorded Investment with No Allowance	1,404
Total Recorded Investment	1,404
Average Recorded Investment YeartoDate	2,165
1-4 family residential
Loan Impairment Assessment
Unpaid Contractual Principal Balance	3,761
Recorded Investment with No Allowance	2,166
Recorded Investment with Allowance	1,485
Total Recorded Investment	3,651
Related Allowance	15
Average Recorded Investment YeartoDate	4,020
Consumer
Loan Impairment Assessment
Unpaid Contractual Principal Balance	210
Recorded Investment with No Allowance	210
Total Recorded Investment	210
Average Recorded Investment YeartoDate	128
Other
Loan Impairment Assessment
Unpaid Contractual Principal Balance	6,653
Recorded Investment with No Allowance	5,411
Recorded Investment with Allowance	1,242
Total Recorded Investment	6,653
Related Allowance	6
Average Recorded Investment YeartoDate	$ 6,825

ALLOWANCE FOR CREDIT LOSSES -_4

ALLOWANCE FOR CREDIT LOSSES - Allowance for credit losses for unfunded commitments (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 25,280
Ending balance	39,678
Unfunded Commitment
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	378
Impact of implementation	2,981
Provision for credit losses for unfunded commitments	1,643
Ending balance	$ 5,002

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
PREMISES AND EQUIPMENT
Premises and equipment	$ 85,044		$ 83,798
Less accumulated depreciation	(34,315)		(32,923)
Premises and equipment, net	50,729		50,875
Depreciation expense	1,520	$ 1,635
Land
PREMISES AND EQUIPMENT
Premises and equipment	13,466		13,466
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	53,919		53,869
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	16,067		15,917
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	203		203
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 1,389		$ 343

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Other Intangible Assets, net
Gross Intangible Assets	20,709	20,747
Accumulated Amortization	(16,213)	(15,809)
Net Intangible Assets	$ 4,496	$ 4,938
Core deposits
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	3 years 9 months 18 days	4 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(13,153)	(12,979)
Net Intangible Assets	$ 597	$ 771
Customer relationships
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	8 years 6 months	9 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(2,873)	(2,651)
Net Intangible Assets	$ 3,756	$ 3,978
Servicing assets
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	11 years	12 years 9 months 18 days
Gross Intangible Assets	$ 330	$ 368
Accumulated Amortization	(187)	(179)
Net Intangible Assets	$ 143	$ 189

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Servicing Assets
Balance at beginning of year	$ 189	$ 166
Increase from loan sales	9	30
Decrease from serviced loans paid off or foreclosed		(30)
Amortization	(55)	(16)
Balance at end of period	143	$ 150
Estimated future amortization for intangible assets
Net Intangible Assets	$ 4,496		$ 4,938

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
BANK OWNED LIFE INSURANCE.
Balance at beginning of year	$ 71,881	$ 71,525
Redemptions		(4,655)
Net change in cash surrender value	828	4,151
Balance at end of year	$ 72,709	$ 71,021

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
DEPOSITS
Interest-bearing demand accounts	$ 366,281	$ 369,744
Money market accounts	878,006	805,942
Saving accounts	98,485	92,183
Certificates and other time deposits, $100,000 or greater	200,505	208,018
Certificates and other time deposits, less than $100,000	197,178	191,640
Total interest-bearing deposits	1,740,455	1,667,527
Noninterest-bearing deposits	1,513,748	1,184,861
Total deposits	$ 3,254,203	$ 2,852,388

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 44,700,000	$ 56,800,000
Brokered deposits	137,000,000	128,900,000
Accrued interest payable for deposits	$ 737,000	$ 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 ($)	6 Months Ended
LINES OF CREDIT (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
LINES OF CREDIT
Capital to risk based assets ratio	16.56%		16.41%
Frost Line of Credit
LINES OF CREDIT
Outstanding borrowings	$ 0		$ 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		$ 1,000,000,000
Average outstanding balance, FHLB advances	$ 60,400,000	$ 46,600,000
Interest rate	1.54%	2.54%
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	Jun. 30, 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	$ 75,000
Outstanding borrowings	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 154.6	$ 158.7
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	50.6	48.7
Related party deposits	$ 209.2	$ 233.9

FAIR VALUE DISCLOSURES - Financ

FAIR VALUE DISCLOSURES - Financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Financial Assets
Securities available for sale		$ 235,438,000	$ 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		245,549,000	233,900,000
Financial Liabilities
Total financial liabilities		10,178,000	2,638,000
Level 1 Inputs \| Recurring basis \| Equity securities
Financial Assets
Securities available for sale		1,187,000	1,147,000
Level 2 Inputs \| Recurring basis
Financial Liabilities
Credit risk participation agreement		67,000
Level 2 Inputs \| Recurring basis \| Interest rate swaps with customers
Financial Assets
Interest rate swaps assets		10,111,000	2,638,000
Level 2 Inputs \| Recurring basis \| Interest rate swaps
Financial Liabilities
Interest rate swaps liabilities		10,111,000	2,638,000
Level 2 Inputs \| Recurring basis \| State and municipal securities
Financial Assets
Securities available for sale		64,906,000	53,279,000
Level 2 Inputs \| Recurring basis \| Collateralized mortgage obligations
Financial Assets
Securities available for sale		44,100,000	55,989,000
Level 2 Inputs \| Recurring basis \| Mortgage-backed securities
Financial Assets
Securities available for sale		$ 125,245,000	$ 120,847,000

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Loan Impairment Assessment
Recorded Investment		$ 3,426
Related Allowance		437
Total Recorded Investment		12,917
Risk rating	$ 2,895,210	2,613,805
Financing Receivable, Allowance for Credit Losses	39,678	25,280	$ 25,342	$ 23,693
Total loans	2,947,767	2,646,673
Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	10,218	3,426
Related Allowance	2,871	437
Total Recorded Investment	7,347	2,989
Commercial and industrial
Loan Impairment Assessment
Recorded Investment		699
Related Allowance		416
Total Recorded Investment		999
Financing Receivable, Allowance for Credit Losses	12,108	7,671	7,792	7,719
Total loans	837,667	527,607
Commercial and industrial \| Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	7,470	699
Related Allowance	2,403	416
Total Recorded Investment	5,067	283
Commercial real estate
Loan Impairment Assessment
Total Recorded Investment		1,404
Financing Receivable, Allowance for Credit Losses	12,424	7,975	7,371	6,730
Total loans	908,027	900,746
1-4 family residential
Loan Impairment Assessment
Recorded Investment		1,485
Related Allowance		15
Total Recorded Investment		3,651
Financing Receivable, Allowance for Credit Losses	3,173	2,257	2,236	2,281
Total loans	272,253	280,192
1-4 family residential \| Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	1,507	1,485
Related Allowance		15
Total Recorded Investment	1,507	1,470
Consumer
Loan Impairment Assessment
Total Recorded Investment		210
Financing Receivable, Allowance for Credit Losses	529	388	458	387
Total loans	36,338	36,782
Agriculture
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	134	74	73	62
Total loans	7,795	9,812
Other
Loan Impairment Assessment
Recorded Investment		1,242
Related Allowance		6
Total Recorded Investment		6,653
Financing Receivable, Allowance for Credit Losses	1,380	770	655	$ 705
Total loans	77,535	86,513
Other \| Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	1,241	1,242
Related Allowance	468	6
Total Recorded Investment	773	$ 1,236
Specific reserve
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	2,871		796
Specific reserve \| Commercial and industrial
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	2,403		699
Specific reserve \| Commercial real estate
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			29
Specific reserve \| 1-4 family residential
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			46
Specific reserve \| Consumer
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			$ 22
Specific reserve \| Other
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	$ 468

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 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	Jun. 30, 2020	Dec. 31, 2019
Financial Assets:
Accrued interest receivable	$ 12,000	$ 7,500
Equity investments	18,369	16,710
Financial Liabilities:
Noninterest-bearing deposits	1,513,748	1,184,861
Interest-bearing deposits	1,740,455	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,500	485
Fair Value
Financial Assets:
Total financial assets	3,508,231	3,123,948
Financial Liabilities:
Total financial liabilities	3,370,599	2,886,532
Carrying Amount
Financial Assets:
Total financial assets	3,491,830	3,084,854
Financial Liabilities:
Total financial liabilities	3,307,513	2,903,878
Level 1 Inputs \| Fair Value
Financial Assets:
Cash and due from banks	492,400	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,513,748	1,184,861
Level 1 Inputs \| Carrying Amount
Financial Assets:
Cash and due from banks	492,400	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,513,748	1,184,861
Level 2 Inputs \| Fair Value
Financial Assets:
Bank-owned life insurance	72,709	71,881
Accrued interest receivable	12,999	8,742
Servicing asset	143	189
Financial Liabilities:
Interest-bearing deposits	1,802,436	1,651,359
Federal Home Loan Bank advances	51,106	48,822
Repurchase agreements	2,499	485
Accrued interest payable	810	1,005
Level 2 Inputs \| Carrying Amount
Financial Assets:
Bank-owned life insurance	72,709	71,881
Accrued interest receivable	12,999	8,742
Servicing asset	143	189
Financial Liabilities:
Interest-bearing deposits	1,740,455	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,500	485
Accrued interest payable	810	1,005
Level 3 Inputs \| Fair Value
Financial Assets:
Loans, including held for sale, net	2,911,611	2,654,362
Equity investments	18,369	16,710
Level 3 Inputs \| Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,895,210	2,615,268
Equity investments	$ 18,369	$ 16,710

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details)	6 Months Ended	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Jun. 30, 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
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 300,877,000	$ 150,352,000
Fair Value	(67,000)
Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	143,202,000	69,189,000
Fair value asset	$ 10,111,000	$ 2,599,000
Weighted Average Maturity	6 years 7 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 15 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 15 days
Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 143,202,000	$ 69,189,000
Fair value liability	$ (10,111,000)	$ (2,599,000)
Weighted Average Maturity	6 years 7 months 24 days	6 years 7 months 24 days
Not Designated as Hedging Instruments \| Other liabilities. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 14,473,000
Fair Value	$ (67,000)
Weighted Average Maturity	9 years 9 months
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%
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 \| Not Designated as Hedging Instruments \| Other liabilities. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.50%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate		2.50%
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 ($)	6 Months Ended
OPERATING LEASES (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
OPERATING LEASES
Right-of-use assets	$ 14,081,000	$ 12,926,000
Operating lease liabilities	16,983,000	$ 15,704,000
Increase in right-of-use asset in exchange for new operating lease liabilities	878,000
Increase to both right-of-use asset and lease liability due to lease modification	$ 1,000,000
Weighted-average discount rate	2.70%
Weighted-average remaining lease term	11 years 3 months 18 days
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,100,000

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Lease costs
Operating lease cost	$ 993	$ 921
Short-term lease cost	28	42
Sublease income	(63)	(92)
Total lease cost	$ 958	$ 871

OPERATING LEASES - Maturity of

OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 765
2021	2,106
2022	2,226
2023	2,227
2024	1,929
Thereafter	11,163
Total undiscounted lease liability	20,416
Less: Discount on cash flows	(3,201)
Lease signed, but not yet commenced	(1,098)
Lease terminated after quarter-end	866
Total operating lease liability	$ 16,983	$ 15,704

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable interest rate	$ 692,538	$ 652,611
Commitments to extend credit, fixed interest rate	108,473	141,439
Total	801,011	794,050
Standby letters of credit	$ 31,143	$ 23,547

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	6 Months Ended
	Oct. 31, 2017	Jun. 30, 2020	Jun. 30, 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		$ 1,200,000	$ 1,100,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)		25.00%
Deferred plan liability		$ 2,000,000		$ 2,700,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		291,000		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		$ 531,000		$ 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)	6 Months Ended
STOCK-BASED COMPENSATION - Narrative (Details)	Jun. 30, 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	285,422

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Number of Shares Underlying Options
Outstanding, beginning of period	213,078	232,322
Exercised	(2,524)	(14,844)
Forfeited/expired		(2,000)
Outstanding, end of period	210,554	215,478
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16.92	$ 16.66
Exercised	12.90	12.62
Forfeited/expired		18.25
Outstanding, end of period	$ 16.97	$ 16.93

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	172,555
Number of shares underlying options unvested	37,999
Number of shares underlying options outstanding	210,554
Weighted-average exercise price per share exercisable	$ 16.09
Weighted-average exercise price per share unvested	21
Weighted-average exercise price per share outstanding	$ 16.97	$ 16.92	$ 16.93	$ 16.66
Aggregate intrinsic value exercisable	$ 848
Aggregate intrinsic value outstanding	$ 848
Weighted-average remaining contractual term exercisable (years)	4 years 7 months 6 days
Weighted-average remaining contractual term unvested (years)	7 years
Weighted-average remaining contractual term outstanding (years)	5 years

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Performance-based restricted stock
Number of Shares
Outstanding, beginning of period	18,000	24,000
Forfeited	(750)
Outstanding, end of period	17,250	24,000
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 34.46	$ 34.46
Forfeited	31.79
Outstanding, end of period	$ 34.57	$ 34.46
Non-performance based restricted stock
Number of Shares
Outstanding, beginning of period	161,443	181,773
Granted	40,594	35,687
Vested	(14,550)	(3,100)
Forfeited	(8,656)	(3,207)
Outstanding, end of period	178,831	211,153
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 28.20	$ 27.05
Granted	28.55	32.26
Vested	31.71	29.69
Forfeited	27.22	29.98
Outstanding, end of period	$ 28.04	$ 27.85

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 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	178,831	161,443	211,153	181,773
Weighted-average grant date fair value per share	$ 28.04	$ 28.20	$ 27.85	$ 27.05
Aggregate fair value (in thousands)	$ 3,755
Weighted-average remaining vesting period (years)	2 years 4 months 24 days
Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	17,250	18,000	24,000	24,000
Weighted-average grant date fair value per share	$ 34.57	$ 34.46	$ 34.46	$ 34.46
Aggregate fair value (in thousands)	$ 362
Weighted-average remaining vesting period (years)	2 years 3 months 18 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Number of Shares
Stock compensation expense	$ 552,000	$ 567,000	$ 1,100,000	$ 1,100,000
Unrecognized compensation expense	$ 4,600,000		$ 4,600,000
Weighted average period			2 years 4 months 24 days
Stock options
Number of Shares
Stock Options, Exercised/Vested			2,524	14,844
Stock Options, Shares withheld				(2,038)
Stock Options, Shares Issued			2,524	12,806
Non-performance based restricted stock
Number of Shares
Restricted Stock, Exercised/Vested			14,550	3,100
Restricted Stock, Shares withheld			(1,697)	(658)
Restricted Stock, Shares Issued			$ 12,853	$ 2,442

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Common Equity Tier I to RiskWeighted Assets
Dividend restrictions term	2 years
Actual amount	$ 446,215	$ 448,445
Common Equity Tier One Capital Ratio	15.30%	15.52%
Minimum Capital Required Basel III (amount)	$ 204,094	$ 202,218
Minimum Capital RequiredBasel III (ratio)	7.00%	7.00%
Tier I Capital to RiskWeighted Assets
Actual amount	$ 446,215	$ 448,445
Actual ratio	15.30%	15.52%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 247,828	$ 245,550
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	8.50%	8.50%
Total Capital to RiskWeighted Assets
Actual amount	$ 482,762	$ 474,104
Actual ratio	16.56%	16.41%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 360,140	$ 303,327
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	10.50%	10.50%
Leverage Ratio
Actual amount	$ 446,215	$ 448,445
Actual ratio	11.96%	13.11%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 149,278	$ 136,798
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	4.00%	4.00%
Bank Only
Common Equity Tier I to RiskWeighted Assets
Actual amount	$ 409,242	$ 406,675
Common Equity Tier One Capital Ratio	14.04%	14.08%
Minimum Capital Required Basel III (amount)	$ 204,078	$ 202,203
Minimum Capital RequiredBasel III (ratio)	7.00%	7.00%
Required to be Considered Well Capitalized, amount	$ 189,501	$ 187,760
Required to be Considered Well Capitalized, ratio	6.50%	6.50%
Tier I Capital to RiskWeighted Assets
Actual amount	$ 409,242	$ 406,675
Actual ratio	14.04%	14.08%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 247,809	$ 245,532
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	8.50%	8.50%
Required to be Considered Well Capitalized, amount	$ 233,232	$ 231,089
Required to be Considered Well Capitalized, ratio	8.00%	8.00%
Total Capital to RiskWeighted Assets
Actual amount	$ 445,787	$ 432,334
Actual ratio	15.29%	14.97%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 306,117	$ 303,304
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	10.50%	10.50%
Required to be Considered Well Capitalized, amount	$ 291,540	$ 288,861
Required to be Considered Well Capitalized, ratio	10.00%	10.00%
Leverage Ratio
Actual amount	$ 409,242	$ 406,675
Actual ratio	10.97%	11.90%
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 149,256	$ 136,754
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	4.00%	4.00%
Required to be Considered Well Capitalized, amount	$ 186,570	$ 170,943
Required to be Considered Well Capitalized, ratio	5.00%	5.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INCOME TAXES
Income tax benefit	$ 539	$ 3,077	$ 2,407	$ 5,676
Effective tax rate (as a percent)	19.95%	17.69%	19.87%	18.62%
Statutory rate (as a percent)			21.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
EARNINGS PER SHARE
Net income for common shareholders	$ 2,163	$ 14,315	$ 9,704	$ 24,805
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,752,000	24,921,000	24,839,000	24,916,000
Dilutive effect of outstanding stock options and unvested restricted stock awards	28,000	121,000	46,000	131,000
Diluted weighted-average shares outstanding	24,780,000	25,042,000	24,885,000	25,047,000
Earnings per share:
Basic	$ 0.09	$ 0.57	$ 0.39	$ 1
Diluted	$ 0.09	$ 0.57	$ 0.39	$ 0.99
Excluded from diluted weighted-average share, number of stock options	80,000		80,000