Stellar Bancorp (STEL) 10-Q28 Oct 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 23, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 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		24,844,548
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001473844
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 46,127	$ 51,259
Interest-bearing deposits at other financial institutions	331,445	320,805
Total cash and cash equivalents	377,572	372,064
Securities	226,101	231,262
Equity investments	18,532	16,710
Loans held for sale	1,763	1,463
Loans, net of allowance for credit losses of $44,069 and $25,280 at September 30, 2020 and December 31, 2019, respectively	2,920,457	2,613,805
Premises and equipment, net of accumulated depreciation of $34,996 and $32,923 at September 30, 2020 and December 31, 2019, respectively	61,732	50,875
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $16,411 and $15,809 at September 30, 2020 and December 31, 2019, respectively	4,303	4,938
Bank-owned life insurance	71,931	71,881
Operating lease right-to-use asset	12,893	12,926
Deferred tax asset, net	12,072	7,432
Other assets	26,366	14,238
Total assets	3,814,672	3,478,544
Liabilities
Noninterest-bearing deposits	1,460,983	1,184,861
Interest-bearing deposits	1,709,681	1,667,527
Total deposits	3,170,664	2,852,388
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,153	485
Operating lease liabilities	15,759	15,704
Other liabilities	35,175	24,246
Total liabilities	3,273,751	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, 25,567,735 and 25,837,048 shares issued at September 30, 2020 and December 31, 2019, respectively, 24,712,913 and 24,979,702 shares outstanding at September 30, 2020 and December 31, 2019, respectively	256	258
Additional paid-in capital	342,153	346,559
Retained earnings	206,680	201,080
Treasury stock, at cost, 854,822 and 857,346 shares held at September 30, 2020 and December 31, 2019, respectively	(14,519)	(14,562)
Accumulated other comprehensive gain, net of tax of $1,688 and $634 at September 30, 2020 and December 31, 2019, respectively	6,351	2,386
Total shareholders' equity	540,921	535,721
Total liabilities and shareholders' equity	$ 3,814,672	$ 3,478,544

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets (Unaudited)
Allowance for credit losses on loans	$ 44,069	$ 25,280
Premises and equipment, accumulated depreciation	34,996	32,923
Other intangible assets, accumulated amortization	$ 16,411	$ 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	25,567,735	25,837,048
Common stock, shares outstanding	24,712,913	24,979,702
Treasury stock, shares	854,822	857,346
Accumulated other comprehensive gain, tax	$ 1,688	$ 634

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income
Interest and fees on loans	$ 32,318	$ 36,353	$ 98,792	$ 105,754
Securities	1,107	1,436	3,698	4,512
Other interest-earning assets	176	1,212	1,400	4,054
Equity investments	162	192	509	507
Total interest income	33,763	39,193	104,399	114,827
Interest expense
Deposits	1,831	4,130	7,619	11,536
Federal Home Loan Bank advances	221	483	682	1,070
Repurchase agreements		1	1	3
Note payable and junior subordinated debt	3	4	11	16
Total interest expense	2,055	4,618	8,313	12,625
Net interest income	31,708	34,575	96,086	102,202
Provision for credit losses for loans	4,569	579	17,845	2,533
Provision (recapture) for credit losses for unfunded commitments	(461)		1,182
Total provision for credit losses	4,108	579	19,027	2,533
Net interest income after provision for credit losses	27,600	33,996	77,059	99,669
Noninterest income
Total noninterest income	4,023	4,115	11,259	14,911
Noninterest expense
Salaries and employee benefits	14,332	13,951	42,567	41,958
Occupancy expense	2,496	2,484	7,478	7,089
Professional and director fees	2,446	1,455	5,139	5,828
Data processing and software	1,525	1,121	4,039	3,361
Regulatory fees	471	144	1,050	1,054
Advertising, marketing and business development	429	407	1,062	1,379
Telephone and communications	486	434	1,297	1,268
Security and protection expense	299	410	1,024	1,100
Amortization of intangibles	198	221	649	678
Other expenses	1,176	1,418	4,137	4,318
Total noninterest expense	23,858	22,045	68,442	68,033
Net income before income tax expense	7,765	16,066	19,876	46,547
Income tax expense	1,344	2,990	3,751	8,666
Net income	$ 6,421	$ 13,076	$ 16,125	$ 37,881
Earnings per common share
Basic	$ 0.26	$ 0.52	$ 0.65	$ 1.52
Diluted	$ 0.26	$ 0.52	$ 0.65	$ 1.51
Deposit account service charges
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,176	$ 1,681	$ 3,756	$ 4,967
Card interchange fees
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	995	908	2,832	2,713
Earnings on bank-owned life insurance
Noninterest income
Revenue Not from Contract with Customer, Excluding Interest Income	1,187	430	2,015	4,581
Net gain on sales of assets
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	114	190	376	347
Other.
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 551	$ 906	$ 2,280	$ 2,303

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 6,421	$ 13,076	$ 16,125	$ 37,881
Change in unrealized gains on securities available for sale arising during the period, net of tax	(327)	1,084	5,010	6,831
Reclassification adjustments for net realized gains included in net income		54	10	57
Change in related deferred income tax	69	(239)	(1,055)	(1,446)
Other comprehensive income, net of tax	(258)	899	3,965	5,442
Total comprehensive income	$ 6,163	$ 13,975	$ 20,090	$ 43,323

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained EarningsCumulative effect of accounting changes from adoption	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Cumulative effect of accounting changes from adoption	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				37,881				37,881
Dividends on common stock, $0.10 and $0.30 per share for the three and nine months ended September 30, 2020 and 2019, respectively				(7,547)				(7,547)
Stock-based compensation expense		1,720						1,720
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(19)						(19)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	2,442
Exercise of stock options, net of shares withheld for employee tax liabilities		(98)			$ 219			121
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)					12,926
Shares repurchased		(3)						(3)
Shares repurchased, Shares	(100)
Other comprehensive income, net of tax						5,442		5,442
Ending balance at Sep. 30, 2019	$ 258	346,097		190,960	$ (14,562)	2,467		525,220
Ending balance, shares at Sep. 30, 2019	25,780,035				(857,346)
Beginning balance at Jun. 30, 2019	$ 258	345,495		180,401	$ (14,564)	1,568		513,158
Beginning balance, shares at Jun. 30, 2019	25,780,135				(857,466)
Net income				13,076				13,076
Dividends on common stock, $0.10 and $0.30 per share for the three and nine months ended September 30, 2020 and 2019, respectively				(2,517)				(2,517)
Stock-based compensation expense		608						608
Exercise of stock options, net of shares withheld for employee tax liabilities		(3)			$ 2			(1)
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares)					120
Shares repurchased		(3)						(3)
Shares repurchased, Shares	(100)
Other comprehensive income, net of tax						899		899
Ending balance at Sep. 30, 2019	$ 258	346,097		190,960	$ (14,562)	2,467		525,220
Ending balance, shares at Sep. 30, 2019	25,780,035				(857,346)
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				16,125				16,125
Dividends on common stock, $0.10 and $0.30 per share for the three and nine months ended September 30, 2020 and 2019, respectively				(7,480)				(7,480)
Stock-based compensation expense		1,691						1,691
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(45)						(45)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	13,050
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)	(6,042)						(6,044)
Shares repurchased, Shares	(282,363)
Other comprehensive income, net of tax						3,965		3,965
Ending balance at Sep. 30, 2020	$ 256	342,153		206,680	$ (14,519)	6,351		540,921
Ending balance, shares at Sep. 30, 2020	25,567,735				(854,822)
Beginning balance at Jun. 30, 2020	$ 256	342,256		202,754	$ (14,519)	6,609		537,356
Beginning balance, shares at Jun. 30, 2020	25,609,456				(854,822)
Net income				6,421				6,421
Dividends on common stock, $0.10 and $0.30 per share for the three and nine months ended September 30, 2020 and 2019, respectively				(2,495)				(2,495)
Stock-based compensation expense		582						582
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(1)						(1)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	197
Shares repurchased		(684)						(684)
Shares repurchased, Shares	(41,918)
Other comprehensive income, net of tax						(258)		(258)
Ending balance at Sep. 30, 2020	$ 256	$ 342,153		$ 206,680	$ (14,519)	$ 6,351		$ 540,921
Ending balance, shares at Sep. 30, 2020	25,567,735				(854,822)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.10	$ 0.30	$ 0.30

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 16,125	$ 37,881
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for credit losses	19,027	2,533
Depreciation expense	2,341	2,408
Amortization of intangibles	649	678
Amortization of premiums on securities	1,357	881
Amortization of lease right-to-use assets	1,100	987
Accretion of lease liabilities	352	397
Earnings on bank-owned life insurance	(2,015)	(4,581)
Stock-based compensation expense	1,691	1,720
Deferred income tax provision	(4,885)	(1,339)
Net gain on sales of assets	(376)	(347)
Earnings on securities	(44)	(17)
Change in operating assets and liabilities:
Loans held for sale	14	162
Other assets	(11,888)	(784)
Other liabilities	5,137	3,624
Total adjustments	12,460	6,322
Net cash provided by operating activities	28,585	44,203
Cash flows from investing activities:
Purchases of securities	(493,825)	(487,603)
Proceeds from sales, calls and maturities of securities	453,665	475,549
Principal repayments of securities	49,038	20,037
Net increase in loans	(325,302)	(261,172)
Sales of loan participations	1,725	30,330
Purchases of loan participations	(2,500)	(1,756)
Proceeds from sales of Small Business Administration loans	769	2,017
Net contributions to equity investments	(1,822)	(6,194)
Redemption (purchases) of bank-owned life insurance	1,965	4,655
Net purchases sales of premises and equipment	(13,223)	(2,001)
Proceeds from sales of repossessed real estate and other assets		103
Proceeds from insurance claims		108
Net cash used in investing activities	(329,510)	(225,927)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	276,122	13,662
Net increase (decrease) in interest-bearing deposits	42,154	(35,617)
Net increase in Federal Home Loan Bank advances		120,000
Net increase (decrease) in securities sold under agreements to repurchase	1,668	(1,290)
Redemption of trust preferred securities		(1,571)
Dividends paid on common stock	(7,455)	(6,230)
Payments to tax authorities for stock-based compensation	(45)	(19)
Proceeds from exercise of stock options	33	121
Repurchase of common stock	(6,044)	(3)
Net cash provided by financing activities	306,433	89,053
Net increase (decrease) in cash, cash equivalents and restricted cash	5,508	(92,671)
Cash, cash equivalents and restricted cash, beginning	372,064	382,070
Cash, cash equivalents and restricted cash, ending	$ 377,572	$ 289,399

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 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 September 30, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2020 and 2019, and consolidated cash flows for the nine months ended September 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, stationery 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 nine months ended September 30, 2020, 282,363 shares were repurchased under the Company’s share repurchase program at an average price of $21.41 per share and retired and returned to the status of authorized but unissued shares. During the nine months ended September 30, 2019, 100 shares were repurchased at an average price of $27.98 and retired and returned to the status of authorized but unissued shares. 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 12.5% of the Company’s loans as of September 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 $19.8 million and $18.6 million at September 30, 2020 and December 31, 2019, respectively. Additionally, as of September 30, 2020 and December 31, 2019, the Company had $9.7 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: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ 9,207 $ 8,823 Cash paid for interest 8,661 12,349 Supplemental disclosures of non-cash flow information: Net operating lease right-to-use asset obtained in exchange for lease liabilities 1,067 14,046 Dividends accrued (25) 1,317 Repossessed real estate and other assets — 77

SECURITIES

SECURITIES	9 Months Ended
SECURITIES	Sep. 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 September 30, 2020 Debt securities available for sale: State and municipal securities $ 75,298 $ 3,355 (75) $ 78,578 U.S. agency securities: Collateralized mortgage obligations 34,040 477 (5) 34,512 Mortgage-backed securities 107,532 4,287 — 111,819 Equity securities 1,172 20 — 1,192 Total $ 218,042 $ 8,139 $ (80) $ 226,101 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 date shown below were as follows: Available for Sale Amortized Fair (Dollars in thousands) Cost Value September 30, 2020 Amounts maturing in: 1 year or less $ 1,731 $ 1,757 1 year through 5 years 2,711 2,792 5 years through 10 years 15,499 16,102 After 10 years 198,101 205,450 $ 218,042 $ 226,101 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 $20.4 million were sold in the nine months ended September 30, 2019. No securities were sold in the nine months ended September 30, 2020. At September 30, 2020 and December 31, 2019, securities with a carrying amount of $33.9 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 19 and 27 securities at September 30, 2020 and December 31, 2019, respectively, 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 September 30, 2020 and upon adoption of CECL. Amortized costs, as defined by GAAP, include 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 $736,000 and $1.1 million at September 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 September 30, 2020 Debt securities available for sale: State and municipal securities $ 8,502 $ (75) $ — $ — U.S. agency securities: Collateralized mortgage obligations 1,042 (5) — — Mortgage-backed securities — — — — Equity securities — — — — $ 9,544 $ (80) $ — $ — December 31, 2019 Debt securities available for sale: State and municipal securities $ 3,539 $ (7) $ 106 $ — U.S. agency 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	9 Months Ended
EQUITY INVESTMENTS	Sep. 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) September 30, 2020 December 31, 2019 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 5,934 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,186 3,049 $ 18,532 $ 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, investments 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 September 30, 2020 and December 31, 2019, the Company had $4.5 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 September 30, 2020.

LOANS

LOANS	9 Months Ended
LOANS	Sep. 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) September 30, 2020 December 31, 2019 Commercial and industrial $ 832,686 28.0% $ 527,607 19.9% Real estate: Commercial real estate 949,933 31.9% 900,746 34.0% Construction and development 506,216 17.0% 527,812 19.9% 1-4 family residential 253,868 8.5% 280,192 10.6% Multi-family residential 298,733 10.0% 277,209 10.5% Consumer 35,637 1.2% 36,782 1.4% Agriculture 9,753 0.3% 9,812 0.4% Other 91,501 3.1% 86,513 3.3% Total gross loans 2,978,327 100.0% 2,646,673 100.0% Less allowance for credit losses for loans (44,069) (25,280) Less deferred loan fees and unearned discounts (12,038) (6,125) Less loans held for sale (1,763) (1,463) Loans, net $ 2,920,457 $ 2,613,805 Accrued interest receivable for loans was $12.9 million and $7.5 million at September 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 nine months ending September 30, 2020 and 2019, by loan class, were as follows: Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period September 30, 2020 Commercial $ — $ 1,725 Commercial real estate 2,500 — September 30, 2019 Commercial real estate $ 1,756 $ 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 nine months ended September 30, 2020 and 2019, totaled $769,000 and $2.0 million, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	9 Months Ended
LOAN PERFORMANCE	Sep. 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 September 30, 2020 Commercial and industrial $ 2,179 $ 1,576 $ 1,494 $ 5,249 $ 827,437 $ 832,686 $ — Real estate: Commercial real estate 293 5,857 — 6,150 943,783 949,933 — Construction and development 12,041 — — 12,041 494,175 506,216 — 1-4 family residential 110 — 109 219 253,649 253,868 — Multi-family residential — — — — 298,733 298,733 — Consumer 6 31 — 37 35,600 35,637 — Agriculture — — — — 9,753 9,753 — Other — — 3,500 3,500 88,001 91,501 — Total loans $ 14,629 $ 7,464 $ 5,103 $ 27,196 $ 2,951,131 $ 2,978,327 $ — 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) September 30, 2020 December 31, 2019 Commercial and industrial $ 6,699 $ 596 Real estate: Commercial real estate 4,811 67 Construction and development 241 — 1-4 family residential 325 314 Other 3,500 — Total nonaccrual loans $ 15,576 $ 977 Interest income that would have been earned under the original terms of the nonaccrual loans was $417,000 and $59,000 for the nine months ended September 30, 2020 and 2019, respectively. Troubled debt restructurings, or TDRs, are loans restructured due to the borrower’s financial difficulties. The TDRs granted during the nine months ended September 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 September 30, 2020 Commercial and industrial 19 $ 8,019 $ 6,645 $ — $ 1,143 $ 231 Commercial real estate 9 14,459 14,459 — — — 1-4 family residential 5 1,629 1,651 — — — Construction and development 4 12,289 12,032 — — 257 Total 37 $ 36,396 $ 34,787 $ — $ 1,143 $ 488 September 30, 2019 Commercial and industrial 2 $ 163 $ — $ — $ 163 $ — 1-4 family residential 1 111 — — 115 — Total 3 $ 274 $ — $ — $ 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. A TDR is considered in default when a payment in accordance with the terms of the restructuring is more than 30 days past due. All TDRs are individually evaluated based on the underlying collateral for the determination of an ACL. See Note 6: Allowance for Credit Losses for further discussions on specific reserves. TDRs restructured during the twelve months ended indicated below with payment defaults were as follows: September 30, 2020 September 30, 2019 Number Number (Dollars in thousands) of Loans Balance of Loans Balance Commercial and industrial 3 $ 1,983 1 $ 67 Commercial real estate — — — — 1-4 family residential 1 20 — — Construction and development 4 12,274 — — Total 8 $ 14,277 1 $ 67 Outstanding loans restructured as a TDR and other loans individually evaluated for credit losses 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 September 30, 2020 Commercial and industrial $ 3,621 $ 5,029 $ 8,650 $ 1,670 $ 2,323 $ 12,643 Real estate: Commercial real estate 9,746 4,744 14,490 67 5,857 20,414 Construction and development 12,032 241 12,273 — — 12,273 1-4 family residential 1,692 109 1,801 216 1,664 3,681 Other 8,403 — 8,403 3,500 — 11,903 Total $ 35,494 $ 10,123 $ 45,617 $ 5,453 $ 9,844 $ 60,914 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 September 30, 2020 and December 31, 2019, the Company had an outstanding commitment to fund $127,000 and $2.0 million, respectively, on loans that were previously restructured. In support of customers impacted by COVID-19, the Company provided contract modifications through the deferral of principal and/or interest payments, or COVID-19 deferrals. The deferral periods granted range from one

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	9 Months Ended
ALLOWANCE FOR CREDIT LOSSES	Sep. 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 reserves. 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 any additional allowance for expected losses. For the general reserve computation, the Company utilized 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 on 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 the 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 determined that a two-year forecast period provides a balance between the level of forecast periods reasonably available and forecast accuracy and choose to revert to historical levels immediately afterward as adjusted current 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 credit losses and the qualitative reserve for expected credit losses combined together make up the total estimated credit 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 and deferred fees and costs in the determination of an ACL. The Company continues its policy of reversing previously accrued interest when it has been deemed uncollectible. 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 September 30, 2020, the ratio of the ACL for loans to total loans was 1.49%, reflecting the expected impact of COVID-19 and the sustained instability in the oil and gas industry during 2020 on the local and national economy and on current and forecasted expected credit losses. Additionally, the increase in adversely graded loans within the portfolio has resulted in an increase in the ACL related to those individually evaluated loans. The total of the Company’s qualitative and quantitative factors ranged from 0.67% to 2.42% at January 1, 2020 and ranged from 0.99% to 2.71% at September 30, 2020. All factors were reassessed at the end of the third quarter. 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 ACL at September 30, 2020, reflects the Company’s assessment based on the information available at the time. Risk Grading 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 risk grades used are described below. 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. Pass Special Mention “special mention” Substandard “substandard” Doubtful “doubtful” Loss “loss” The loans by risk grades, loan class and year of origination, or vintage, at September 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 381,205 $ 119,542 $ 52,803 $ 15,038 $ 9,567 $ 4,334 $ 226,019 $ 2,537 $ 811,045 Special mention 10 — 38 — — — 440 — 488 Substandard 1,000 2,605 4,247 21 308 2,270 5,482 5,220 21,153 Total commercial and industrial 382,215 122,147 57,088 15,059 9,875 6,604 231,941 7,757 832,686 Commercial real estate: Pass 156,257 206,313 210,817 133,253 74,720 93,190 32,795 4,661 912,006 Special mention — 5,081 — — — — — — 5,081 Substandard — 7,748 9,645 496 2,560 2,322 10,075 — 32,846 Total commercial real estate 156,257 219,142 220,462 133,749 77,280 95,512 42,870 4,661 949,933 Construction and development: Pass 122,943 178,201 99,321 35,810 8,082 391 43,490 — 488,238 Substandard — 242 6,588 10,532 — 616 — — 17,978 Total construction and development 122,943 178,443 105,909 46,342 8,082 1,007 43,490 — 506,216 1-4 family residential: Pass 21,562 33,323 53,836 41,711 26,479 62,839 7,931 442 248,123 Special mention — — — — 384 — — — 384 Substandard — 538 82 314 17 2,903 — 1,507 5,361 Total 1-4 family residential 21,562 33,861 53,918 42,025 26,880 65,742 7,931 1,949 253,868 Multi-family residential: Pass 6,500 3,159 54,133 35,777 4,288 194,783 93 — 298,733 Total multi-family residential 6,500 3,159 54,133 35,777 4,288 194,783 93 — 298,733 Consumer: Pass 7,414 3,955 2,394 2,059 183 25 19,116 459 35,605 Substandard — — 31 — — 1 — — 32 Total consumer 7,414 3,955 2,425 2,059 183 26 19,116 459 35,637 Agriculture: Pass 4,717 305 420 120 30 — 4,078 8 9,678 Substandard — — — — — 25 50 — 75 Total agriculture 4,717 305 420 120 30 25 4,128 8 9,753 Other: Pass 8,839 3,905 3,624 28 96 1,491 61,615 — 79,598 Substandard 2,530 3,500 — — — — 5,873 — 11,903 Total other 11,369 7,405 3,624 28 96 1,491 67,488 — 91,501 Total Pass 709,437 548,703 477,348 263,796 123,445 357,053 395,137 8,107 2,883,026 Special mention 10 5,081 38 — 384 — 440 — 5,953 Substandard 3,530 14,633 20,593 11,363 2,885 8,137 21,480 6,727 89,348 Total $ 712,977 $ 568,417 $ 497,979 $ 275,159 $ 126,714 $ 365,190 $ 417,057 $ 14,834 $ 2,978,327 Loans individually evaluated and collectively evaluated as of the dates shown below were as follows: September 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 $ 12,643 $ 820,043 $ 832,686 $ 999 $ 526,608 $ 527,607 Real estate: Commercial real estate 20,414 929,519 949,933 1,404 899,342 900,746 Construction and development 12,273 493,943 506,216 — 527,812 527,812 1-4 family residential 3,681 250,187 253,868 3,651 276,541 280,192 Multi-family residential — 298,733 298,733 — 277,209 277,209 Consumer — 35,637 35,637 210 36,572 36,782 Agriculture — 9,753 9,753 — 9,812 9,812 Other 11,903 79,598 91,501 6,653 79,860 86,513 Total $ 60,914 $ 2,917,413 $ 2,978,327 $ 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 September 30, 2020 Commercial and industrial $ 811,045 $ 488 $ 21,153 $ 832,686 Real estate: Commercial real estate 912,006 5,081 32,846 949,933 Construction and development 488,238 — 17,978 506,216 1-4 family residential 248,123 384 5,361 253,868 Multi-family residential 298,733 — — 298,733 Consumer 35,605 — 32 35,637 Agriculture 9,678 — 75 9,753 Other 79,598 — 11,903 91,501 Total loans $ 2,883,026 $ 5,953 $ 89,348 $ 2,978,327 (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 nine months ended September 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ (38) $ (57) $ (35) $ (42) $ — $ (102) $ — $ (274) Recovery — 3 158 41 25 227 177 28 659 Total commercial and industrial — (35) 101 6 (17) 227 75 28 385 Commercial real estate: Charge-off — — — — — (163) — — (163) Recovery — — 2 — — 2 — — 4 Total commercial real estate loans — — 2 — — (161) — — (159) 1-4 family residential: Charge-off — (65) — — — (6) — — (71) Recovery — — — — — 1 — — 1 Total 1-4 family residential — (65) — — — (5) — — (70) Consumer: Charge-off — (4) (8) (95) — — — — (107) Recovery 6 1 — — — 1 — — 8 Total consumer 6 (3) (8) (95) — 1 — — (99) Agriculture: Recovery — — — — 12 — — — 12 Total agriculture — — — — 12 — — — 12 Other: Recovery — — — 1 — — — — 1 Total other — — — 1 — — — — 1 Total: Charge-off — (107) (65) (130) (42) (169) (102) — (615) Recovery 6 4 160 42 37 231 177 28 685 Total $ 6 $ (103) $ 95 $ (88) $ (5) $ 62 $ 75 $ 28 $ 70 Activity in the total ACL for loans for the nine months ended September 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 September 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 4,439 5,069 1,788 959 1,124 243 14 4,209 17,845 Charge-offs (274) (163) — (71) — (107) — — (615) Recoveries 659 4 — 1 — 8 12 1 685 Net (charge-offs) recoveries 385 (159) — (70) — (99) 12 1 70 Ending balance $ 13,347 $ 12,745 $ 6,334 $ 2,871 $ 3,117 $ 507 $ 164 $ 4,984 $ 44,069 Period-end amount allocated to: Specific reserve $ 4,111 $ — $ — $ — $ — $ — $ — $ 3,952 $ 8,063 General reserve 9,236 12,745 6,334 2,871 3,117 507 164 1,032 36,006 Total $ 13,347 $ 12,745 $ 6,334 $ 2,871 $ 3,117 $ 507 $ 164 $ 4,984 $ 44,069 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total September 30, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision for credit losses for loans 309 1,021 527 66 318 244 20 28 2,533 Charge-offs (869) (44) — (12) — (88) — (52) (1,065) Recoveries 311 81 — 3 — 15 — 5 415 Net (charge-offs) recoveries (558) 37 — (9) — (73) — (47) (650) Ending balance $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 Period-end amount allocated to: Specific reserve $ 373 $ 22 $ — $ 33 $ — $ 142 $ — $ 22 $ 592 General reserve 7,097 7,766 4,825 2,305 1,829 416 82 664 24,984 Total $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 The ACL for loans by loan class as of the periods indicated was as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 13,347 30.3 % $ 7,671 30.3 % Real estate: Commercial real estate 12,745 28.9 % 7,975 31.6 % Construction and development 6,334 14.3 % 4,446 17.6 % 1-4 family residential 2,871 6.5 % 2,257 8.9 % Multi-family residential 3,117 7.1 % 1,699 6.7 % Consumer 507 1.2 % 388 1.5 % Agriculture 164 0.4 % 74 0.3 % Other 4,984 11.3 % 770 3.1 % Total allowance for credit losses for loans $ 44,069 100.0 % $ 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 September 30, 2020. The recorded investment in impaired loans as of December 31, 2019, 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) September 30, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 1,182 Ending balance $ 4,541

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	9 Months Ended
PREMISES AND EQUIPMENT	Sep. 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) September 30, 2020 December 31, 2019 Land $ 15,539 $ 13,466 Buildings and leasehold improvements 62,770 53,869 Furniture and equipment 16,462 15,917 Vehicles 203 203 Construction in progress 1,754 343 96,728 83,798 Less accumulated depreciation (34,996) (32,923) Premises and equipment, net $ 61,732 $ 50,875 Depreciation expense was $2.3 million and $2.4 million for the nine months ended September 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	9 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Sep. 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 September 30, 2020 and December 31, 2019 and there were no changes in goodwill during the nine months ended September 30, 2020 or the year ended December 31, 2019. As of September 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 September 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 September 30, 2020 Core deposits 3.4 years $ 13,750 $ (13,232) $ 518 Customer relationships 8.3 years 6,629 (2,983) 3,646 Servicing assets 10.8 years 335 (196) 139 Total other intangible assets, net $ 20,714 $ (16,411) $ 4,303 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: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 14 39 Decrease from serviced loans paid off or foreclosed — (30) Amortization (64) (24) Balance at end of period $ 139 $ 151

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	9 Months Ended
BANK OWNED LIFE INSURANCE	Sep. 30, 2020
BANK OWNED LIFE INSURANCE.
BANK OWNED LIFE INSURANCE	NOTE 9: BANK-OWNED LIFE INSURANCE During the nine months ended September 30, 2020, the Company received proceeds in the amount of $2.0 million as the owner and beneficiary under a bank-owned insurance policy as the result of the death of a former employee, and the Company recorded a gain of $769,000. Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions (1,965) (4,655) Net change in cash surrender value 2,015 4,581 Balance at end of period $ 71,931 $ 71,451

DEPOSITS

DEPOSITS	9 Months Ended
DEPOSITS	Sep. 30, 2020
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: (Dollars in thousands) September 30, 2020 December 31, 2019 Interest-bearing demand accounts $ 346,406 $ 369,744 Money market accounts 916,668 805,942 Saving accounts 103,062 92,183 Certificates and other time deposits, $100,000 or greater 171,854 208,018 Certificates and other time deposits, less than $100,000 171,691 191,640 Total interest-bearing deposits 1,709,681 1,667,527 Noninterest-bearing deposits 1,460,983 1,184,861 Total deposits $ 3,170,664 $ 2,852,388 At September 30, 2020 and December 31, 2019, the Company had $35.5 million and $56.8 million in deposits from public entities and brokered deposits of $113.2 million and $128.9 million, respectively. At September 30, 2020, overdrafts of $384,000 were reclassified to loans. Accrued interest payable for deposits was $572,000 and $931,000 at September 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 September 30, 2020 or December 31, 2019 from any single or related groups of depositors. At September 30, 2020, $81.7 million of certificates of deposits or other time deposits were uninsured.

LINES OF CREDIT

LINES OF CREDIT	9 Months Ended
LINES OF CREDIT	Sep. 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 September 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 September 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 $992.0 million at September 30, 2020 and $1.0 billion at December 31, 2019. Federal Home Loan Bank advances outstanding totaled $50.0 million at both September 30, 2020 and December 31, 2019, and these borrowings were on a long-term basis. See maturity information below. During the nine months ended September 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 nine months ended September 30, 2020 and 2019, was $56.9 million and $59.1 million, respectively. The weighted-average rate for the nine months ended September 30, 2020 and 2019, was 1.60% and 2.42%, respectively. The scheduled maturities of Federal Home Loan Bank advances as of the date shown below were as follows: (Dollars in thousands) September 30, 2020 2020 $ — 2021 — 2022 10,000 2023 20,000 2024 20,000 Thereafter — Total $ 50,000 At September 30, 2020 and December 31, 2019, the Company maintained federal funds lines of credit with commercial banks that provided for the availability to borrow up to an aggregate of $85.0 million at September 30, 2020 and $75.0 million at December 31, 2019. There were no funds under these lines of credit outstanding at September 30, 2020 or December 31, 2019.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 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	9 Months Ended
FAIR VALUE DISCLOSURES	Sep. 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 nine months ended September 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) September 30, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,192 $ 1,147 Level 2 inputs: Debt securities available for sale: State and municipal securities 78,578 53,279 U.S. Agency Securities: Collateralized mortgage obligations 34,512 55,989 Mortgage-backed securities 111,819 120,847 Interest rate swaps 9,581 2,638 Credit risk participation agreement 58 — Total fair value of financial assets $ 235,740 $ 233,900 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 9,581 $ 2,638 Total fair value of financial liabilities $ 9,581 $ 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: September 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 $ 9,955 $ 4,111 $ 5,844 $ 699 $ 416 $ 283 1-4 family residential 1,507 — 1,507 1,485 15 1,470 Other 4,741 3,952 789 1,242 6 1,236 Total $ 16,203 $ 8,063 $ 8,140 $ 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 nine months ended September 30, 2020 or during 2019. There were no outstanding foreclosed assets at September 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: September 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 $ 377,572 $ 377,572 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 71,931 71,931 71,881 71,881 Accrued interest receivable 13,790 13,790 8,742 8,742 Servicing asset 139 139 189 189 Level 3 inputs: Loans, including held for sale, net 2,953,530 2,922,220 2,654,362 2,615,268 Other investments 18,532 18,532 16,710 16,710 Total financial assets $ 3,435,494 $ 3,404,184 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,460,983 $ 1,460,983 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,775,189 1,709,681 1,651,359 1,667,527 Federal Home Loan Bank advances 51,854 50,000 48,822 50,000 Repurchase agreements 2,152 2,153 485 485 Accrued interest payable 646 646 1,005 1,005 Total financial liabilities $ 3,290,824 $ 3,223,463 $ 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	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Sep. 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 September 30, 2020 and December 31, 2019, no such deterioration was determined by management. At September 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) September 30, 2020 Interest rate swaps with customers Other Assets $ 142,270 $ 9,581 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.39 Interest rate swaps with financial institution Other Liabilities 142,270 (9,581) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.39 Credit risk participation agreement with financial institution Other Assets 14,213 58 3.50% LIBOR 1M + 2.50% 9.49 Total derivatives $ 298,753 $ 58 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	9 Months Ended
OPERATING LEASES	Sep. 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 September 30, 2020, the Company’s lease liabilities totaled $15.8 million. The weighted-average discount rate for the nine months ended September 30, 2020 was 2.70%. Lease costs for the period shown below were as follows: Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Operating lease cost $ 1,458 $ 1,384 Short-term lease cost 30 54 Sublease income (221) (128) Total lease cost $ 1,267 $ 1,310 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) September 30, 2020 2020 $ 309 2021 2,105 2022 2,225 2023 2,227 2024 1,930 Thereafter 11,161 Total undiscounted lease liability 19,957 Less: Discount on cash flows (3,100) Lease signed, but not yet commenced (1,098) Total operating lease liability $ 15,759

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	9 Months Ended
	Sep. 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) September 30, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 690,386 $ 652,611 Commitments to extend credit, fixed interest rate 87,355 141,439 $ 777,741 $ 794,050 Standby letters of credit $ 28,088 $ 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2020 and 2019, the Company contributed $1.6 million and $1.5 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 including interest, for this deferred plan was approximately $2.0 million and $2.7 million, respectively, which is included in other liabilities in the condensed consolidated balance sheets. Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and CEO that calls for payments of $100,000 per year for a period of 10 years commencing at age 65. Payments under the plan began during 2014. The Company’s liability was $268,000 and $335,000 at September 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 $585,000 and $437,000 at September 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	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 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 awards and other awards that are not stock-based to eligible employees, consultants and non-employee directors up to an aggregate of 600,000 shares of common stock. At September 30, 2020, 285,262 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Nine Months Ended September 30, 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 (15,244) 12.74 Forfeited/expired — — (4,000) 17.73 Outstanding at end of period 210,554 16.97 213,078 16.92 A summary of stock options as of the date shown below was as follows: September 30, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 178,555 31,999 210,554 Weighted-average exercise price per share $ 16.25 $ 21.00 $ 16.97 Aggregate intrinsic value (in thousands) $ 274 $ — $ 274 Weighted-average remaining contractual term (years) 4.4 6.8 4.8 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 36,992 32.18 — — Vested (3,100) 29.69 — — Forfeited (3,220) 29.99 — — Outstanding at September 30, 2019 212,445 $ 27.86 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 41,594 28.24 — — Vested (14,811) 31.68 — — Forfeited (9,432) 27.40 (750) 31.79 Outstanding at September 30, 2020 178,794 $ 27.96 17,250 $ 34.57 A summary of restricted stock as of the date shown below was as follows: September 30, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 178,794 17,250 Weighted-average grant date fair value per share $ 27.96 $ 34.57 Aggregate fair value (in thousands) $ 2,921 $ 282 Weighted-average remaining vesting period (years) 2.2 2.1 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 Nine Months Ended September 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,811 (1,761) 13,050 Nine Months Ended September 30, 2019 Stock options 15,244 (2,318) 12,926 Non-performance based restricted stock 3,100 (658) 2,442 For the nine months ended September 30, 2020 and 2019, stock compensation expense was $1.7 million and $1.7 million, respectively, and for the three months ended September 30, 2020 and 2019, stock compensation expense was $582,000 and $608,000, respectively. As of September 30, 2020, there was approximately $4.1 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 2.2 years.

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
REGULATORY MATTERS	Sep. 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 2.50% “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 November 2019, the federal bank regulatory agencies, or the Agencies, published 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 $10.0 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9.0%, 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 September 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 8.0% 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 9.0% 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 September 2020, the Agencies finalized an interim final rule that allows banking organizations to mitigate the effects of CECL on their regulatory capital computations. The rule permits banking organizations that were required to adopt CECL for purposes of GAAP (as in effect January 1, 2020) for a fiscal year that begins during the calendar year 2020, the option to delay for up to two years an estimate of CECL’s effect on regulatory capital, followed by a three-year transition period (i.e., a transition period of five years in total). The Company determined not to use the transition provision 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 September 30, 2020 and December 31, 2019, that the Company and the Bank met all capital adequacy requirements to which they were subject. At September 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 September 30, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 450,191 15.41% $ 204,470 7.00% N/A N/A Bank Only $ 413,710 14.16% $ 204,454 7.00% $ 189,850 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 450,191 15.41% $ 248,285 8.50% N/A N/A Bank Only $ 413,710 14.16% $ 248,266 8.50% $ 233,662 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 486,853 16.67% $ 306,704 10.50% N/A N/A Bank Only $ 450,369 15.42% $ 306,681 10.50% $ 292,078 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 450,191 11.90% $ 151,295 4.00% N/A N/A Bank Only $ 413,710 10.94% $ 151,276 4.00% $ 189,094 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	9 Months Ended
INCOME TAXES	Sep. 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Income tax expense $ 1,344 $ 2,990 $ 3,751 $ 8,666 Effective tax rate 17.31% 18.61% 18.87% 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	9 Months Ended
EARNINGS PER SHARE	Sep. 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 September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income for common shareholders $ 6,421 $ 13,076 $ 16,125 $ 37,881 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,748 24,923 24,808 24,918 Dilutive effect of outstanding stock options and unvested restricted stock awards 22 123 39 135 Diluted weighted-average shares outstanding 24,770 25,046 24,847 25,053 Earnings per share: Basic $ 0.26 $ 0.52 $ 0.65 $ 1.52 Diluted $ 0.26 $ 0.52 $ 0.65 $ 1.51 For the three and nine months ended September 30, 2020, the Company has excluded from diluted weighted-average shares, the impact of 150,000 and 80,000 stock options and 163,667 and 174,307 non-performance based restricted stock awards, respectively, 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)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 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 September 30, 2020 and December 31, 2019, consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2020 and 2019, and consolidated cash flows for the nine months ended September 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, stationery 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 nine months ended September 30, 2020, 282,363 shares were repurchased under the Company’s share repurchase program at an average price of $21.41 per share and retired and returned to the status of authorized but unissued shares. During the nine months ended September 30, 2019, 100 shares were repurchased at an average price of $27.98 and retired and returned to the status of authorized but unissued shares.
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 12.5% of the Company’s loans as of September 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 $19.8 million and $18.6 million at September 30, 2020 and December 31, 2019, respectively. Additionally, as of September 30, 2020 and December 31, 2019, the Company had $9.7 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)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Supplemental disclosures of cash flow information: Cash paid for taxes $ 9,207 $ 8,823 Cash paid for interest 8,661 12,349 Supplemental disclosures of non-cash flow information: Net operating lease right-to-use asset obtained in exchange for lease liabilities 1,067 14,046 Dividends accrued (25) 1,317 Repossessed real estate and other assets — 77

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
SECURITIES (Tables)	Sep. 30, 2020
SECURITIES.
Amortized cost and estimated fair values of investments in securities	Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value September 30, 2020 Debt securities available for sale: State and municipal securities $ 75,298 $ 3,355 (75) $ 78,578 U.S. agency securities: Collateralized mortgage obligations 34,040 477 (5) 34,512 Mortgage-backed securities 107,532 4,287 — 111,819 Equity securities 1,172 20 — 1,192 Total $ 218,042 $ 8,139 $ (80) $ 226,101 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
Amortized cost and estimated fair value of securities by contractual maturities	Available for Sale Amortized Fair (Dollars in thousands) Cost Value September 30, 2020 Amounts maturing in: 1 year or less $ 1,731 $ 1,757 1 year through 5 years 2,711 2,792 5 years through 10 years 15,499 16,102 After 10 years 198,101 205,450 $ 218,042 $ 226,101 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
Securities with unrealized losses, aggregated by category and the length of time	Less Than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses September 30, 2020 Debt securities available for sale: State and municipal securities $ 8,502 $ (75) $ — $ — U.S. agency securities: Collateralized mortgage obligations 1,042 (5) — — Mortgage-backed securities — — — — Equity securities — — — — $ 9,544 $ (80) $ — $ — December 31, 2019 Debt securities available for sale: State and municipal securities $ 3,539 $ (7) $ 106 $ — U.S. agency 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)	9 Months Ended
EQUITY INVESTMENTS (Tables)	Sep. 30, 2020
EQUITY INVESTMENTS
Unconsolidated investments considered equity securities	(Dollars in thousands) September 30, 2020 December 31, 2019 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 5,934 4,249 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,186 3,049 $ 18,532 $ 16,710

LOANS (Tables)

LOANS (Tables)	9 Months Ended
LOANS (Tables)	Sep. 30, 2020
LOANS
Loans, by loan class	(Dollars in thousands) September 30, 2020 December 31, 2019 Commercial and industrial $ 832,686 28.0% $ 527,607 19.9% Real estate: Commercial real estate 949,933 31.9% 900,746 34.0% Construction and development 506,216 17.0% 527,812 19.9% 1-4 family residential 253,868 8.5% 280,192 10.6% Multi-family residential 298,733 10.0% 277,209 10.5% Consumer 35,637 1.2% 36,782 1.4% Agriculture 9,753 0.3% 9,812 0.4% Other 91,501 3.1% 86,513 3.3% Total gross loans 2,978,327 100.0% 2,646,673 100.0% Less allowance for credit losses for loans (44,069) (25,280) Less deferred loan fees and unearned discounts (12,038) (6,125) Less loans held for sale (1,763) (1,463) Loans, net $ 2,920,457 $ 2,613,805
Loan participations purchased and sold	Participations Participations Purchased Sold During the During the (Dollars in thousands) Period Period September 30, 2020 Commercial $ — $ 1,725 Commercial real estate 2,500 — September 30, 2019 Commercial real estate $ 1,756 $ 30,330

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	9 Months Ended
LOAN PERFORMANCE (Tables)	Sep. 30, 2020
Aging analysis of past due loans, 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 September 30, 2020 Commercial and industrial $ 2,179 $ 1,576 $ 1,494 $ 5,249 $ 827,437 $ 832,686 $ — Real estate: Commercial real estate 293 5,857 — 6,150 943,783 949,933 — Construction and development 12,041 — — 12,041 494,175 506,216 — 1-4 family residential 110 — 109 219 253,649 253,868 — Multi-family residential — — — — 298,733 298,733 — Consumer 6 31 — 37 35,600 35,637 — Agriculture — — — — 9,753 9,753 — Other — — 3,500 3,500 88,001 91,501 — Total loans $ 14,629 $ 7,464 $ 5,103 $ 27,196 $ 2,951,131 $ 2,978,327 $ — 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) September 30, 2020 December 31, 2019 Commercial and industrial $ 6,699 $ 596 Real estate: Commercial real estate 4,811 67 Construction and development 241 — 1-4 family residential 325 314 Other 3,500 — Total nonaccrual loans $ 15,576 $ 977
Schedule of TDRs	Post-modification recorded investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate September 30, 2020 Commercial and industrial 19 $ 8,019 $ 6,645 $ — $ 1,143 $ 231 Commercial real estate 9 14,459 14,459 — — — 1-4 family residential 5 1,629 1,651 — — — Construction and development 4 12,289 12,032 — — 257 Total 37 $ 36,396 $ 34,787 $ — $ 1,143 $ 488 September 30, 2019 Commercial and industrial 2 $ 163 $ — $ — $ 163 $ — 1-4 family residential 1 111 — — 115 — Total 3 $ 274 $ — $ — $ 278 $ —
Outstanding TDRs and other loans individually evaluated for credit losses	(Dollars in thousands) Accruing TDR Non-Accrual TDR Total TDR Other Non-Accrual Other Accruing Total Individually Evaluated September 30, 2020 Commercial and industrial $ 3,621 $ 5,029 $ 8,650 $ 1,670 $ 2,323 $ 12,643 Real estate: Commercial real estate 9,746 4,744 14,490 67 5,857 20,414 Construction and development 12,032 241 12,273 — — 12,273 1-4 family residential 1,692 109 1,801 216 1,664 3,681 Other 8,403 — 8,403 3,500 — 11,903 Total $ 35,494 $ 10,123 $ 45,617 $ 5,453 $ 9,844 $ 60,914 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
TDRs with payment defaults after restructuring
Schedule of TDRs	September 30, 2020 September 30, 2019 Number Number (Dollars in thousands) of Loans Balance of Loans Balance Commercial and industrial 3 $ 1,983 1 $ 67 Commercial real estate — — — — 1-4 family residential 1 20 — — Construction and development 4 12,274 — — Total 8 $ 14,277 1 $ 67

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	9 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Tables)	Sep. 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 September 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 381,205 $ 119,542 $ 52,803 $ 15,038 $ 9,567 $ 4,334 $ 226,019 $ 2,537 $ 811,045 Special mention 10 — 38 — — — 440 — 488 Substandard 1,000 2,605 4,247 21 308 2,270 5,482 5,220 21,153 Total commercial and industrial 382,215 122,147 57,088 15,059 9,875 6,604 231,941 7,757 832,686 Commercial real estate: Pass 156,257 206,313 210,817 133,253 74,720 93,190 32,795 4,661 912,006 Special mention — 5,081 — — — — — — 5,081 Substandard — 7,748 9,645 496 2,560 2,322 10,075 — 32,846 Total commercial real estate 156,257 219,142 220,462 133,749 77,280 95,512 42,870 4,661 949,933 Construction and development: Pass 122,943 178,201 99,321 35,810 8,082 391 43,490 — 488,238 Substandard — 242 6,588 10,532 — 616 — — 17,978 Total construction and development 122,943 178,443 105,909 46,342 8,082 1,007 43,490 — 506,216 1-4 family residential: Pass 21,562 33,323 53,836 41,711 26,479 62,839 7,931 442 248,123 Special mention — — — — 384 — — — 384 Substandard — 538 82 314 17 2,903 — 1,507 5,361 Total 1-4 family residential 21,562 33,861 53,918 42,025 26,880 65,742 7,931 1,949 253,868 Multi-family residential: Pass 6,500 3,159 54,133 35,777 4,288 194,783 93 — 298,733 Total multi-family residential 6,500 3,159 54,133 35,777 4,288 194,783 93 — 298,733 Consumer: Pass 7,414 3,955 2,394 2,059 183 25 19,116 459 35,605 Substandard — — 31 — — 1 — — 32 Total consumer 7,414 3,955 2,425 2,059 183 26 19,116 459 35,637 Agriculture: Pass 4,717 305 420 120 30 — 4,078 8 9,678 Substandard — — — — — 25 50 — 75 Total agriculture 4,717 305 420 120 30 25 4,128 8 9,753 Other: Pass 8,839 3,905 3,624 28 96 1,491 61,615 — 79,598 Substandard 2,530 3,500 — — — — 5,873 — 11,903 Total other 11,369 7,405 3,624 28 96 1,491 67,488 — 91,501 Total Pass 709,437 548,703 477,348 263,796 123,445 357,053 395,137 8,107 2,883,026 Special mention 10 5,081 38 — 384 — 440 — 5,953 Substandard 3,530 14,633 20,593 11,363 2,885 8,137 21,480 6,727 89,348 Total $ 712,977 $ 568,417 $ 497,979 $ 275,159 $ 126,714 $ 365,190 $ 417,057 $ 14,834 $ 2,978,327
Loans individually evaluated and collectively evaluated	September 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 $ 12,643 $ 820,043 $ 832,686 $ 999 $ 526,608 $ 527,607 Real estate: Commercial real estate 20,414 929,519 949,933 1,404 899,342 900,746 Construction and development 12,273 493,943 506,216 — 527,812 527,812 1-4 family residential 3,681 250,187 253,868 3,651 276,541 280,192 Multi-family residential — 298,733 298,733 — 277,209 277,209 Consumer — 35,637 35,637 210 36,572 36,782 Agriculture — 9,753 9,753 — 9,812 9,812 Other 11,903 79,598 91,501 6,653 79,860 86,513 Total $ 60,914 $ 2,917,413 $ 2,978,327 $ 12,917 $ 2,633,756 $ 2,646,673
Loans by risk grades and loan class	(Dollars in thousands) Pass Special Mention Substandard Total Loans September 30, 2020 Commercial and industrial $ 811,045 $ 488 $ 21,153 $ 832,686 Real estate: Commercial real estate 912,006 5,081 32,846 949,933 Construction and development 488,238 — 17,978 506,216 1-4 family residential 248,123 384 5,361 253,868 Multi-family residential 298,733 — — 298,733 Consumer 35,605 — 32 35,637 Agriculture 9,678 — 75 9,753 Other 79,598 — 11,903 91,501 Total loans $ 2,883,026 $ 5,953 $ 89,348 $ 2,978,327 (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	Charge-offs and recoveries by loan class and vintage for the nine months ended September 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ (38) $ (57) $ (35) $ (42) $ — $ (102) $ — $ (274) Recovery — 3 158 41 25 227 177 28 659 Total commercial and industrial — (35) 101 6 (17) 227 75 28 385 Commercial real estate: Charge-off — — — — — (163) — — (163) Recovery — — 2 — — 2 — — 4 Total commercial real estate loans — — 2 — — (161) — — (159) 1-4 family residential: Charge-off — (65) — — — (6) — — (71) Recovery — — — — — 1 — — 1 Total 1-4 family residential — (65) — — — (5) — — (70) Consumer: Charge-off — (4) (8) (95) — — — — (107) Recovery 6 1 — — — 1 — — 8 Total consumer 6 (3) (8) (95) — 1 — — (99) Agriculture: Recovery — — — — 12 — — — 12 Total agriculture — — — — 12 — — — 12 Other: Recovery — — — 1 — — — — 1 Total other — — — 1 — — — — 1 Total: Charge-off — (107) (65) (130) (42) (169) (102) — (615) Recovery 6 4 160 42 37 231 177 28 685 Total $ 6 $ (103) $ 95 $ (88) $ (5) $ 62 $ 75 $ 28 $ 70
Activity in the total ACL 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 September 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 4,439 5,069 1,788 959 1,124 243 14 4,209 17,845 Charge-offs (274) (163) — (71) — (107) — — (615) Recoveries 659 4 — 1 — 8 12 1 685 Net (charge-offs) recoveries 385 (159) — (70) — (99) 12 1 70 Ending balance $ 13,347 $ 12,745 $ 6,334 $ 2,871 $ 3,117 $ 507 $ 164 $ 4,984 $ 44,069 Period-end amount allocated to: Specific reserve $ 4,111 $ — $ — $ — $ — $ — $ — $ 3,952 $ 8,063 General reserve 9,236 12,745 6,334 2,871 3,117 507 164 1,032 36,006 Total $ 13,347 $ 12,745 $ 6,334 $ 2,871 $ 3,117 $ 507 $ 164 $ 4,984 $ 44,069 Real Estate Commercial Construction and Commercial and 1-4 family Multi-family (Dollars in thousands) industrial real estate development residential residential Consumer Agriculture Other Total September 30, 2019 Beginning balance $ 7,719 $ 6,730 $ 4,298 $ 2,281 $ 1,511 $ 387 $ 62 $ 705 $ 23,693 Provision for credit losses for loans 309 1,021 527 66 318 244 20 28 2,533 Charge-offs (869) (44) — (12) — (88) — (52) (1,065) Recoveries 311 81 — 3 — 15 — 5 415 Net (charge-offs) recoveries (558) 37 — (9) — (73) — (47) (650) Ending balance $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576 Period-end amount allocated to: Specific reserve $ 373 $ 22 $ — $ 33 $ — $ 142 $ — $ 22 $ 592 General reserve 7,097 7,766 4,825 2,305 1,829 416 82 664 24,984 Total $ 7,470 $ 7,788 $ 4,825 $ 2,338 $ 1,829 $ 558 $ 82 $ 686 $ 25,576
ACL for loans by loan class	September 30, 2020 December 31, 2019 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 13,347 30.3 % $ 7,671 30.3 % Real estate: Commercial real estate 12,745 28.9 % 7,975 31.6 % Construction and development 6,334 14.3 % 4,446 17.6 % 1-4 family residential 2,871 6.5 % 2,257 8.9 % Multi-family residential 3,117 7.1 % 1,699 6.7 % Consumer 507 1.2 % 388 1.5 % Agriculture 164 0.4 % 74 0.3 % Other 4,984 11.3 % 770 3.1 % Total allowance for credit losses for loans $ 44,069 100.0 % $ 25,280 100.0 %
Recorded investment in impaired loans prior to adoption of CECL	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
Activity in the ACL for unfunded commitments	(Dollars in thousands) September 30, 2020 Beginning balance $ 378 Impact of CECL adoption 2,981 Provision for credit losses for unfunded commitments 1,182 Ending balance $ 4,541

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	9 Months Ended
PREMISES AND EQUIPMENT (Tables)	Sep. 30, 2020
PREMISES AND EQUIPMENT
Components of premises and equipment	(Dollars in thousands) September 30, 2020 December 31, 2019 Land $ 15,539 $ 13,466 Buildings and leasehold improvements 62,770 53,869 Furniture and equipment 16,462 15,917 Vehicles 203 203 Construction in progress 1,754 343 96,728 83,798 Less accumulated depreciation (34,996) (32,923) Premises and equipment, net $ 61,732 $ 50,875

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Sep. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Other intangibles	Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets September 30, 2020 Core deposits 3.4 years $ 13,750 $ (13,232) $ 518 Customer relationships 8.3 years 6,629 (2,983) 3,646 Servicing assets 10.8 years 335 (196) 139 Total other intangible assets, net $ 20,714 $ (16,411) $ 4,303 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
Changes in related servicing assets	Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Balance at beginning of year $ 189 $ 166 Increase from loan sales 14 39 Decrease from serviced loans paid off or foreclosed — (30) Amortization (64) (24) Balance at end of period $ 139 $ 151

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	9 Months Ended
BANK OWNED LIFE INSURANCE (Tables)	Sep. 30, 2020
BANK OWNED LIFE INSURANCE.
Bank-owned life insurance policies and net change in cash surrender value	Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Balance at beginning of period $ 71,881 $ 71,525 Purchases — — Redemptions (1,965) (4,655) Net change in cash surrender value 2,015 4,581 Balance at end of period $ 71,931 $ 71,451

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
DEPOSITS (Tables)	Sep. 30, 2020
DEPOSITS
Schedule of deposits	(Dollars in thousands) September 30, 2020 December 31, 2019 Interest-bearing demand accounts $ 346,406 $ 369,744 Money market accounts 916,668 805,942 Saving accounts 103,062 92,183 Certificates and other time deposits, $100,000 or greater 171,854 208,018 Certificates and other time deposits, less than $100,000 171,691 191,640 Total interest-bearing deposits 1,709,681 1,667,527 Noninterest-bearing deposits 1,460,983 1,184,861 Total deposits $ 3,170,664 $ 2,852,388

LINES OF CREDIT (Tables)

LINES OF CREDIT (Tables)	9 Months Ended
LINES OF CREDIT (Tables)	Sep. 30, 2020
LINES OF CREDIT
Scheduled maturities of Federal Home Loan Bank advances	(Dollars in thousands) September 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)	9 Months Ended
FAIR VALUE DISCLOSURES (Tables)	Sep. 30, 2020
FAIR VALUE DISCLOSURES
Financial assets and financial liabilities measured at fair value on a recurring basis	(Dollars in thousands) September 30, 2020 December 31, 2019 Fair value of financial assets: Level 1 inputs: securities available for sale - equity securities $ 1,192 $ 1,147 Level 2 inputs: Debt securities available for sale: State and municipal securities 78,578 53,279 U.S. Agency Securities: Collateralized mortgage obligations 34,512 55,989 Mortgage-backed securities 111,819 120,847 Interest rate swaps 9,581 2,638 Credit risk participation agreement 58 — Total fair value of financial assets $ 235,740 $ 233,900 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 9,581 $ 2,638 Total fair value of financial liabilities $ 9,581 $ 2,638
Financial assets measured at fair value on a non-recurring basis are certain impaired loans	September 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 $ 9,955 $ 4,111 $ 5,844 $ 699 $ 416 $ 283 1-4 family residential 1,507 — 1,507 1,485 15 1,470 Other 4,741 3,952 789 1,242 6 1,236 Total $ 16,203 $ 8,063 $ 8,140 $ 3,426 $ 437 $ 2,989
Fair market values and carrying amounts of financial instruments that are reported at cost	September 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 $ 377,572 $ 377,572 $ 372,064 $ 372,064 Level 2 inputs: Bank-owned life insurance 71,931 71,931 71,881 71,881 Accrued interest receivable 13,790 13,790 8,742 8,742 Servicing asset 139 139 189 189 Level 3 inputs: Loans, including held for sale, net 2,953,530 2,922,220 2,654,362 2,615,268 Other investments 18,532 18,532 16,710 16,710 Total financial assets $ 3,435,494 $ 3,404,184 $ 3,123,948 $ 3,084,854 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,460,983 $ 1,460,983 $ 1,184,861 $ 1,184,861 Level 2 inputs: Interest-bearing deposits 1,775,189 1,709,681 1,651,359 1,667,527 Federal Home Loan Bank advances 51,854 50,000 48,822 50,000 Repurchase agreements 2,152 2,153 485 485 Accrued interest payable 646 646 1,005 1,005 Total financial liabilities $ 3,290,824 $ 3,223,463 $ 2,886,532 $ 2,903,878

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative instruments outstanding	Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) September 30, 2020 Interest rate swaps with customers Other Assets $ 142,270 $ 9,581 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.39 Interest rate swaps with financial institution Other Liabilities 142,270 (9,581) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.39 Credit risk participation agreement with financial institution Other Assets 14,213 58 3.50% LIBOR 1M + 2.50% 9.49 Total derivatives $ 298,753 $ 58 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)	9 Months Ended
OPERATING LEASES (Tables)	Sep. 30, 2020
OPERATING LEASES
Lease costs	Nine Months Ended September 30, (Dollars in thousands) 2020 2019 Operating lease cost $ 1,458 $ 1,384 Short-term lease cost 30 54 Sublease income (221) (128) Total lease cost $ 1,267 $ 1,310
Maturity analysis of operating lease liabilities	(Dollars in thousands) September 30, 2020 2020 $ 309 2021 2,105 2022 2,225 2023 2,227 2024 1,930 Thereafter 11,161 Total undiscounted lease liability 19,957 Less: Discount on cash flows (3,100) Lease signed, but not yet commenced (1,098) Total operating lease liability $ 15,759

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit and standby letters of credit	(Dollars in thousands) September 30, 2020 December 31, 2019 Commitments to extend credit, variable interest rate $ 690,386 $ 652,611 Commitments to extend credit, fixed interest rate 87,355 141,439 $ 777,741 $ 794,050 Standby letters of credit $ 28,088 $ 23,547

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2020
STOCK-BASED COMPENSATION
Summary of restricted stock	September 30, 2020 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 178,794 17,250 Weighted-average grant date fair value per share $ 27.96 $ 34.57 Aggregate fair value (in thousands) $ 2,921 $ 282 Weighted-average remaining vesting period (years) 2.2 2.1
Shares of stock options exercised, restricted stock vested, shares withheld and shares issued	Exercised/Vested Shares Withheld Shares Issued Nine Months Ended September 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,811 (1,761) 13,050 Nine Months Ended September 30, 2019 Stock options 15,244 (2,318) 12,926 Non-performance based restricted stock 3,100 (658) 2,442
Stock options
STOCK-BASED COMPENSATION
Stock option activity	Nine Months Ended September 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 (15,244) 12.74 Forfeited/expired — — (4,000) 17.73 Outstanding at end of period 210,554 16.97 213,078 16.92
Summary of stock options	September 30, 2020 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 178,555 31,999 210,554 Weighted-average exercise price per share $ 16.25 $ 21.00 $ 16.97 Aggregate intrinsic value (in thousands) $ 274 $ — $ 274 Weighted-average remaining contractual term (years) 4.4 6.8 4.8
Restricted Stock
STOCK-BASED COMPENSATION
Stock option activity	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 36,992 32.18 — — Vested (3,100) 29.69 — — Forfeited (3,220) 29.99 — — Outstanding at September 30, 2019 212,445 $ 27.86 24,000 $ 34.46 Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 41,594 28.24 — — Vested (14,811) 31.68 — — Forfeited (9,432) 27.40 (750) 31.79 Outstanding at September 30, 2020 178,794 $ 27.96 17,250 $ 34.57

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
REGULATORY MATTERS (Tables)	Sep. 30, 2020
REGULATORY MATTERS
Actual and required capital ratios for the Company and Bank	Minimum Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 450,191 15.41% $ 204,470 7.00% N/A N/A Bank Only $ 413,710 14.16% $ 204,454 7.00% $ 189,850 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 450,191 15.41% $ 248,285 8.50% N/A N/A Bank Only $ 413,710 14.16% $ 248,266 8.50% $ 233,662 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 486,853 16.67% $ 306,704 10.50% N/A N/A Bank Only $ 450,369 15.42% $ 306,681 10.50% $ 292,078 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 450,191 11.90% $ 151,295 4.00% N/A N/A Bank Only $ 413,710 10.94% $ 151,276 4.00% $ 189,094 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)	9 Months Ended
INCOME TAXES (Tables)	Sep. 30, 2020
INCOME TAXES
Provision for income tax expense and effective tax rates	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2020 2019 2020 2019 Income tax expense $ 1,344 $ 2,990 $ 3,751 $ 8,666 Effective tax rate 17.31% 18.61% 18.87% 18.62%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2020
EARNINGS PER SHARE
Computations of basic and diluted earnings per share	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Net income for common shareholders $ 6,421 $ 13,076 $ 16,125 $ 37,881 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,748 24,923 24,808 24,918 Dilutive effect of outstanding stock options and unvested restricted stock awards 22 123 39 135 Diluted weighted-average shares outstanding 24,770 25,046 24,847 25,053 Earnings per share: Basic $ 0.26 $ 0.52 $ 0.65 $ 1.52 Diluted $ 0.26 $ 0.52 $ 0.65 $ 1.51

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	Sep. 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	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares repurchased	282,363	100
Shares repurchased and retired, price per share	$ 21.41	$ 27.98

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Recently Adopted (Details)	Jan. 01, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Accounting Standards Recently Adopted
Retained Earnings (Accumulated Deficit)		$ 206,680,000	$ 201,080,000
Purchased financial assets with credit deterioration	$ 0
Operating lease right-to-use asset		12,893,000	12,926,000
Operating lease liabilities		$ 15,759,000	$ 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
Amount of Credit Losses	$ 0
Accounting standards recently adopted	true
Cumulative effect of accounting changes from adoption \| ASU 2016-13
Accounting Standards Recently Adopted
Retained Earnings (Accumulated Deficit)	$ (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

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash flow reporting (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserve required at federal reserve bank	$ 19,800		$ 18,600
Cash collateral used in interest rate swap transactions	9,700		$ 3,100
Supplemental disclosures of cash flow information:
Cash paid for taxes	9,207	$ 8,823
Cash paid for interest	8,661	12,349
Supplemental disclosures of non-cash flow information:
Net operating lease right-to-use asset obtained in exchange for lease liabilities	1,067	14,046
Dividends accrued	$ (25)	1,317
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	Sep. 30, 2020	Dec. 31, 2019
Debt securities available for sale:
Amortized cost	$ 218,042	$ 228,251
Fair Value	226,101	231,262
Securities Available for Sale
Debt securities available for sale:
Amortized cost	218,042	228,251
Gross Unrealized Gains	8,139	3,400
Gross Unrealized Losses	(80)	(389)
Fair Value	226,101	231,262
Securities Available for Sale \| State and municipal securities
Debt securities available for sale:
Amortized cost	75,298	51,525
Gross Unrealized Gains	3,355	1,761
Gross Unrealized Losses	(75)	(7)
Fair Value	78,578	53,279
Securities Available for Sale \| Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	34,040	55,784
Gross Unrealized Gains	477	324
Gross Unrealized Losses	(5)	(119)
Fair Value	34,512	55,989
Securities Available for Sale \| Mortgage-backed securities
Debt securities available for sale:
Amortized cost	107,532	119,787
Gross Unrealized Gains	4,287	1,315
Gross Unrealized Losses		(255)
Fair Value	111,819	120,847
Securities Available for Sale \| Equity securities
Debt securities available for sale:
Amortized cost	1,172	1,155
Gross Unrealized Gains	20
Gross Unrealized Losses		(8)
Fair Value	$ 1,192	$ 1,147

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 1,731	$ 2,535
Amortized cost, 1 year through 5 years	2,711	3,081
Amortized cost, 5 years through 10 years	15,499	14,564
Amortized cost, After 10 years	198,101	208,071
Available-for-sale Securities, Amortized Cost Basis, Total	218,042	228,251
Available for Sale - Fair Value
Estimated fair value, 1 year or less	1,757	2,532
Estimated fair value, 1 year through 5 years	2,792	3,145
Estimated fair value, 5 years through 10 years	16,102	14,874
Estimated fair value, After 10 years	205,450	210,711
Available-for-sale Securities, Total	226,101	231,262
Securities Available for Sale
Available for Sale - Amortized Cost
Available-for-sale Securities, Amortized Cost Basis, Total	218,042	228,251
Available for Sale - Fair Value
Available-for-sale Securities, Total	$ 226,101	$ 231,262

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details)	3 Months Ended	9 Months Ended	12 Months Ended
SECURITIES - Securities carrying amount (Details)	Sep. 30, 2020USD ($)security	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)security	Sep. 30, 2019USD ($)
SECURITIES.
Securities sold during the year		$ 0
Carrying amount of securities sold in the period				$ 20,400,000
Carrying value of securities pledged	$ 33,900,000	33,900,000	$ 50,800,000
Securities held in a gross unrealized loss position \| security	19		27
Impairment loss on securities		0
Accrued interest receivable for securities	$ 736,000	$ 736,000	$ 1,100,000

SECURITIES - Securities with un

SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment securities
Fair Value - Less Than Twelve Months	$ 9,544	$ 25,854
Gross Unrealized Losses - Less Than Twelve Months	(80)	(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	8,502	3,539
Gross Unrealized Losses - Less Than Twelve Months	(75)	(7)
Fair Value - Twelve Months or More		106
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months	1,042	10,687
Gross Unrealized Losses - Less Than Twelve Months	$ (5)	(46)
Fair Value - Twelve Months or More		7,994
Gross Unrealized Losses - Twelve Months or More		(73)
Mortgage-backed securities
Investment securities
Fair Value - Less Than Twelve Months		11,628
Gross Unrealized Losses - Less Than Twelve Months		(26)
Fair Value - Twelve Months or More		21,745
Gross Unrealized Losses - Twelve Months or More		(229)
Equity securities
Investment securities
Fair Value - Twelve Months or More		1,147
Gross Unrealized Losses - Twelve Months or More		$ (8)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Equity investments
Equity investments, total	$ 18,532	$ 16,710
Unfunded commitments	4,500	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	$ 5,934	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	$ 3,186	$ 3,049

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Loans
Total loans	$ 2,978,327	$ 2,646,673
Percentage of loan	100.00%	100.00%
Less allowance for credit losses for loans	$ (44,069)	$ (25,280)	$ (25,576)	$ (23,693)
Less deferred loan fees and unearned discounts	(12,038)	(6,125)
Less loans held for sale	$ (1,763)	$ (1,463)
Loans And Leases Receivable Allowance, Percent	100.00%	100.00%
Loans, net	$ 2,920,457	$ 2,613,805
Accrued interest receivable	12,900	7,500
Commercial and industrial
Loans
Total loans	$ 832,686	$ 527,607
Percentage of loan	28.00%	19.90%
Less allowance for credit losses for loans	$ (13,347)	$ (7,671)	(7,470)	(7,719)
Loans And Leases Receivable Allowance, Percent	30.30%	30.30%
Commercial real estate
Loans
Total loans	$ 949,933	$ 900,746
Percentage of loan	31.90%	34.00%
Less allowance for credit losses for loans	$ (12,745)	$ (7,975)	(7,788)	(6,730)
Loans And Leases Receivable Allowance, Percent	28.90%	31.60%
Construction and development
Loans
Total loans	$ 506,216	$ 527,812
Percentage of loan	17.00%	19.90%
Less allowance for credit losses for loans	$ (6,334)	$ (4,446)	(4,825)	(4,298)
Loans And Leases Receivable Allowance, Percent	14.30%	17.60%
1-4 family residential
Loans
Total loans	$ 253,868	$ 280,192
Percentage of loan	8.50%	10.60%
Less allowance for credit losses for loans	$ (2,871)	$ (2,257)	(2,338)	(2,281)
Loans And Leases Receivable Allowance, Percent	6.50%	8.90%
Multifamily residential
Loans
Total loans	$ 298,733	$ 277,209
Percentage of loan	10.00%	10.50%
Less allowance for credit losses for loans	$ (3,117)	$ (1,699)	(1,829)	(1,511)
Loans And Leases Receivable Allowance, Percent	7.10%	6.70%
Consumer
Loans
Total loans	$ 35,637	$ 36,782
Percentage of loan	1.20%	1.40%
Less allowance for credit losses for loans	$ (507)	$ (388)	(558)	(387)
Loans And Leases Receivable Allowance, Percent	1.20%	1.50%
Agriculture
Loans
Total loans	$ 9,753	$ 9,812
Percentage of loan	0.30%	0.40%
Less allowance for credit losses for loans	$ (164)	$ (74)	(82)	(62)
Loans And Leases Receivable Allowance, Percent	0.40%	0.30%
Other
Loans
Total loans	$ 91,501	$ 86,513
Less allowance for credit losses for loans	(4,984)	(770)	$ (686)	$ (705)
Other
Loans
Total loans	$ 91,501	$ 86,513
Percentage of loan	3.10%	3.30%
Less allowance for credit losses for loans	$ (4,984)	$ (770)
Loans And Leases Receivable Allowance, Percent	11.30%	3.10%

LOANS - Loan participations pur

LOANS - Loan participations purchased and sold and Loans Guaranteed (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Loans
SBA loans that were sold with servicing retained	$ 769,000	$ 2,000,000
Commercial
Loans
Participations sold during the period	1,725,000
Commercial real estate
Loans
Participations purchased during the period	$ 2,500,000	1,756,000
Participations sold during the period		$ 30,330,000

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of past due loans, by loan class (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Aging analysis
Total past due	$ 27,196,000		$ 2,874,000
Total current loans	2,951,131,000		2,643,799,000
Total Loans	2,978,327,000		2,646,673,000
Interest income that would have been earned under the original terms of the nonaccrual loans	417,000	$ 59,000
30 to 59 days past due
Aging analysis
Total past due	14,629,000		2,071,000
60 to 89 days past due
Aging analysis
Total past due	7,464,000		563,000
90 days or greater past due
Aging analysis
Total past due	5,103,000		240,000
Commercial and industrial
Aging analysis
Total past due	5,249,000		935,000
Total current loans	827,437,000		526,672,000
Total Loans	832,686,000		527,607,000
Commercial and industrial \| 30 to 59 days past due
Aging analysis
Total past due	2,179,000		664,000
Commercial and industrial \| 60 to 89 days past due
Aging analysis
Total past due	1,576,000		31,000
Commercial and industrial \| 90 days or greater past due
Aging analysis
Total past due	1,494,000		240,000
Commercial real estate
Aging analysis
Total past due	6,150,000		865,000
Total current loans	943,783,000		899,881,000
Total Loans	949,933,000		900,746,000
Commercial real estate \| 30 to 59 days past due
Aging analysis
Total past due	293,000		865,000
Commercial real estate \| 60 to 89 days past due
Aging analysis
Total past due	5,857,000
Construction and development
Aging analysis
Total past due	12,041,000		532,000
Total current loans	494,175,000		527,280,000
Total Loans	506,216,000		527,812,000
Construction and development \| 30 to 59 days past due
Aging analysis
Total past due	12,041,000
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	219,000		499,000
Total current loans	253,649,000		279,693,000
Total Loans	253,868,000		280,192,000
1-4 family residential \| 30 to 59 days past due
Aging analysis
Total past due	110,000		499,000
1-4 family residential \| 90 days or greater past due
Aging analysis
Total past due	109,000
Multifamily residential
Aging analysis
Total current loans	298,733,000		277,209,000
Total Loans	298,733,000		277,209,000
Consumer
Aging analysis
Total past due	37,000		43,000
Total current loans	35,600,000		36,739,000
Total Loans	35,637,000		36,782,000
Consumer \| 30 to 59 days past due
Aging analysis
Total past due	6,000		43,000
Consumer \| 60 to 89 days past due
Aging analysis
Total past due	31,000
Agriculture
Aging analysis
Total current loans	9,753,000		9,812,000
Total Loans	9,753,000		9,812,000
Other
Aging analysis
Total Loans	91,501,000		86,513,000
Other
Aging analysis
Total past due	3,500,000
Total current loans	88,001,000		86,513,000
Total Loans	91,501,000		$ 86,513,000
Other \| 90 days or greater 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	Sep. 30, 2020	Dec. 31, 2019
Nonaccrual loans
Total nonaccrual loans	$ 15,576	$ 977
Commercial and industrial
Nonaccrual loans
Total nonaccrual loans	6,699	596
Commercial real estate
Nonaccrual loans
Total nonaccrual loans	4,811	67
Construction and development
Nonaccrual loans
Total nonaccrual loans	241
1-4 family residential
Nonaccrual loans
Total nonaccrual loans	325	$ 314
Other
Nonaccrual loans
Total nonaccrual loans	$ 3,500

LOAN PERFORMANCE - Troubled deb

LOAN PERFORMANCE - Troubled debt restructurings granted (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan
Restructured loans
Number of loans \| loan	37	3
Premodification outstanding Recorded Investment	$ 36,396	$ 274
Restructured Payments
Restructured loans
Postmodification recorded investment	34,787
Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment	1,143	$ 278
Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 488
Commercial and industrial
Restructured loans
Number of loans \| loan	19	2
Premodification outstanding Recorded Investment	$ 8,019	$ 163
Commercial and industrial \| Restructured Payments
Restructured loans
Postmodification recorded investment	6,645
Commercial and industrial \| Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment	1,143	$ 163
Commercial and industrial \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 231
Commercial real estate
Restructured loans
Number of loans \| loan	9
Premodification outstanding Recorded Investment	$ 14,459
Commercial real estate \| Restructured Payments
Restructured loans
Postmodification recorded investment	$ 14,459
Construction and development
Restructured loans
Number of loans \| loan	4
Premodification outstanding Recorded Investment	$ 12,289
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	$ 257
1-4 family residential
Restructured loans
Number of loans \| loan	5	1
Premodification outstanding Recorded Investment	$ 1,629	$ 111
1-4 family residential \| Restructured Payments
Restructured loans
Postmodification recorded investment	$ 1,651
1-4 family residential \| Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment		$ 115

LOAN PERFORMANCE - Troubled d_2

LOAN PERFORMANCE - Troubled debt restructurings with payment defaults (Details) - TDRs with payment defaults after restructuring $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	8	1
TDRs with payment defaults, Balance \| $	$ 14,277	$ 67
Commercial and industrial
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	3	1
TDRs with payment defaults, Balance \| $	$ 1,983	$ 67
1-4 family residential
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	1
TDRs with payment defaults, Balance \| $	$ 20
Construction and development
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	4
TDRs with payment defaults, Balance \| $	$ 12,274

LOAN PERFORMANCE - Outstanding

LOAN PERFORMANCE - Outstanding Troubled debt restructurings and other loans individually evaluated (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Restructured loans
Accruing TDR	$ 35,494,000	$ 8,441,000
Non-Accrual TDR	10,123,000	393,000
Total TDR	45,617,000	8,834,000
Other Non-Accrual	5,453,000	584,000
Other Accruing	9,844,000	3,499,000
Total Individually Evaluated	60,914,000	12,917,000
Commitment to fund on loans that were previously restructured	127,000	2,000,000
Commercial and industrial
Restructured loans
Accruing TDR	3,621,000	397,000
Non-Accrual TDR	5,029,000	282,000
Total TDR	8,650,000	679,000
Other Non-Accrual	1,670,000	314,000
Other Accruing	2,323,000	6,000
Total Individually Evaluated	12,643,000	999,000
Commercial real estate
Restructured loans
Accruing TDR	9,746,000	1,337,000
Non-Accrual TDR	4,744,000
Total TDR	14,490,000	1,337,000
Other Non-Accrual	67,000	67,000
Other Accruing	5,857,000
Total Individually Evaluated	20,414,000	1,404,000
Construction and development
Restructured loans
Accruing TDR	12,032,000
Non-Accrual TDR	241,000
Total TDR	12,273,000
Total Individually Evaluated	12,273,000
1-4 family residential
Restructured loans
Accruing TDR	1,692,000	54,000
Non-Accrual TDR	109,000	111,000
Total TDR	1,801,000	165,000
Other Non-Accrual	216,000	203,000
Other Accruing	1,664,000	3,283,000
Total Individually Evaluated	3,681,000	3,651,000
Other
Restructured loans
Accruing TDR	8,403,000	6,653,000
Total TDR	8,403,000	6,653,000
Other Non-Accrual	3,500,000
Total Individually Evaluated	$ 11,903,000	6,653,000
Consumer
Restructured loans
Other Accruing		210,000
Total Individually Evaluated		$ 210,000

LOAN PERFORMANCE - COVID-19 (De

LOAN PERFORMANCE - COVID-19 (Details) $ in Millions	9 Months Ended
LOAN PERFORMANCE - COVID-19 (Details) $ in Millions	Sep. 30, 2020USD ($)loan	Jun. 30, 2020USD ($)loan
Restructured loans
Period of deferrals, COVID-19	6 months
Number of loans deferred due to customers impacted by COVID-19 \| loan	41	689
Outstanding principal amount deferred due to COVID-19 \| $	$ 82.4	$ 545
Minimum
Restructured loans
Period of deferrals, COVID-19	1 month
Majority
Restructured loans
Period of deferrals, COVID-19	3 months

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - ASU 2016-13	Jan. 01, 2020	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)		1.49
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	0.99
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	2.71

ALLOWANCE FOR CREDIT LOSSES - L

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
2020	$ 712,977
2019	568,417
2018	497,979
2017	275,159
2016	126,714
Prior	365,190
Revolving Loans	417,057
Converted revolving loan	14,834
Total Loans	2,978,327	$ 2,646,673
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	832,686	527,607
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	949,933	900,746
Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	506,216	527,812
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	253,868	280,192
Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	298,733	277,209
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	35,637	36,782
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans	9,753	9,812
Other
Financing Receivable, Recorded Investment [Line Items]
Total Loans	91,501	86,513
Loans by risk grades
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,978,327	2,646,673
Loans by risk grades \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	382,215
2019	122,147
2018	57,088
2017	15,059
2016	9,875
Prior	6,604
Revolving Loans	231,941
Converted revolving loan	7,757
Total Loans	832,686	527,607
Loans by risk grades \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	156,257
2019	219,142
2018	220,462
2017	133,749
2016	77,280
Prior	95,512
Revolving Loans	42,870
Converted revolving loan	4,661
Total Loans	949,933	900,746
Loans by risk grades \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	122,943
2019	178,443
2018	105,909
2017	46,342
2016	8,082
Prior	1,007
Revolving Loans	43,490
Total Loans	506,216	527,812
Loans by risk grades \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	21,562
2019	33,861
2018	53,918
2017	42,025
2016	26,880
Prior	65,742
Revolving Loans	7,931
Converted revolving loan	1,949
Total Loans	253,868	280,192
Loans by risk grades \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2020	6,500
2019	3,159
2018	54,133
2017	35,777
2016	4,288
Prior	194,783
Revolving Loans	93
Total Loans	298,733	277,209
Loans by risk grades \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	7,414
2019	3,955
2018	2,425
2017	2,059
2016	183
Prior	26
Revolving Loans	19,116
Converted revolving loan	459
Total Loans	35,637	36,782
Loans by risk grades \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	4,717
2019	305
2018	420
2017	120
2016	30
Prior	25
Revolving Loans	4,128
Converted revolving loan	8
Total Loans	9,753	9,812
Loans by risk grades \| Other
Financing Receivable, Recorded Investment [Line Items]
2020	11,369
2019	7,405
2018	3,624
2017	28
2016	96
Prior	1,491
Revolving Loans	67,488
Total Loans	91,501
Pass
Financing Receivable, Recorded Investment [Line Items]
2020	709,437
2019	548,703
2018	477,348
2017	263,796
2016	123,445
Prior	357,053
Revolving Loans	395,137
Converted revolving loan	8,107
Total Loans	2,883,026	2,582,970
Pass \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	381,205
2019	119,542
2018	52,803
2017	15,038
2016	9,567
Prior	4,334
Revolving Loans	226,019
Converted revolving loan	2,537
Total Loans	811,045	513,417
Pass \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2020	156,257
2019	206,313
2018	210,817
2017	133,253
2016	74,720
Prior	93,190
Revolving Loans	32,795
Converted revolving loan	4,661
Total Loans	912,006	876,207
Pass \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	122,943
2019	178,201
2018	99,321
2017	35,810
2016	8,082
Prior	391
Revolving Loans	43,490
Total Loans	488,238	515,247
Pass \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	21,562
2019	33,323
2018	53,836
2017	41,711
2016	26,479
Prior	62,839
Revolving Loans	7,931
Converted revolving loan	442
Total Loans	248,123	274,731
Pass \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2020	6,500
2019	3,159
2018	54,133
2017	35,777
2016	4,288
Prior	194,783
Revolving Loans	93
Total Loans	298,733	277,209
Pass \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	7,414
2019	3,955
2018	2,394
2017	2,059
2016	183
Prior	25
Revolving Loans	19,116
Converted revolving loan	459
Total Loans	35,605	36,566
Pass \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2020	4,717
2019	305
2018	420
2017	120
2016	30
Revolving Loans	4,078
Converted revolving loan	8
Total Loans	9,678	9,733
Pass \| Other
Financing Receivable, Recorded Investment [Line Items]
2020	8,839
2019	3,905
2018	3,624
2017	28
2016	96
Prior	1,491
Revolving Loans	61,615
Total Loans	79,598
Special Mention
Financing Receivable, Recorded Investment [Line Items]
2020	10
2019	5,081
2018	38
2016	384
Revolving Loans	440
Total Loans	5,953	34,742
Special Mention \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	10
2018	38
Revolving Loans	440
Total Loans	488	2,963
Special Mention \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	5,081
Total Loans	5,081	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]
2016	384
Total Loans	384	594
Special Mention \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans		50
Substandard
Financing Receivable, Recorded Investment [Line Items]
2020	3,530
2019	14,633
2018	20,593
2017	11,363
2016	2,885
Prior	8,137
Revolving Loans	21,480
Converted revolving loan	6,727
Total Loans	89,348	28,961
Substandard \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	1,000
2019	2,605
2018	4,247
2017	21
2016	308
Prior	2,270
Revolving Loans	5,482
Converted revolving loan	5,220
Total Loans	21,153	11,227
Substandard \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	7,748
2018	9,645
2017	496
2016	2,560
Prior	2,322
Revolving Loans	10,075
Total Loans	32,846	5,969
Substandard \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2019	242
2018	6,588
2017	10,532
Prior	616
Total Loans	17,978
Substandard \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2019	538
2018	82
2017	314
2016	17
Prior	2,903
Converted revolving loan	1,507
Total Loans	5,361	4,867
Substandard \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2018	31
Prior	1
Total Loans	32	216
Substandard \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Prior	25
Revolving Loans	50
Total Loans	75	$ 29
Substandard \| Other
Financing Receivable, Recorded Investment [Line Items]
2020	2,530
2019	3,500
Revolving Loans	5,873
Total Loans	$ 11,903

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Loans individually evaluated and collectively evaluated (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loan Impairment Assessment
Individually Evaluated Loans	$ 60,914	$ 12,917
Collectively Evaluated Loans	2,917,413	2,633,756
Total Loans	2,978,327	2,646,673
Commercial and industrial
Loan Impairment Assessment
Individually Evaluated Loans	12,643	999
Collectively Evaluated Loans	820,043	526,608
Total Loans	832,686	527,607
Commercial real estate
Loan Impairment Assessment
Individually Evaluated Loans	20,414	1,404
Collectively Evaluated Loans	929,519	899,342
Total Loans	949,933	900,746
Construction and development
Loan Impairment Assessment
Individually Evaluated Loans	12,273
Collectively Evaluated Loans	493,943	527,812
Total Loans	506,216	527,812
1-4 family residential
Loan Impairment Assessment
Individually Evaluated Loans	3,681	3,651
Collectively Evaluated Loans	250,187	276,541
Total Loans	253,868	280,192
Multifamily residential
Loan Impairment Assessment
Collectively Evaluated Loans	298,733	277,209
Total Loans	298,733	277,209
Consumer
Loan Impairment Assessment
Individually Evaluated Loans		210
Collectively Evaluated Loans	35,637	36,572
Total Loans	35,637	36,782
Agriculture
Loan Impairment Assessment
Collectively Evaluated Loans	9,753	9,812
Total Loans	9,753	9,812
Other
Loan Impairment Assessment
Individually Evaluated Loans	11,903	6,653
Collectively Evaluated Loans	79,598	79,860
Total Loans	$ 91,501	$ 86,513

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades and loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized cost of loans by loan type
Total loans	$ 2,978,327	$ 2,646,673
Loans by risk grades
Amortized cost of loans by loan type
Total loans	2,978,327	2,646,673
Pass
Amortized cost of loans by loan type
Total loans	2,883,026	2,582,970
Special Mention
Amortized cost of loans by loan type
Total loans	5,953	34,742
Substandard
Amortized cost of loans by loan type
Total loans	89,348	28,961
Commercial and industrial
Amortized cost of loans by loan type
Total loans	832,686	527,607
Commercial and industrial \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	832,686	527,607
Commercial and industrial \| Pass
Amortized cost of loans by loan type
Total loans	811,045	513,417
Commercial and industrial \| Special Mention
Amortized cost of loans by loan type
Total loans	488	2,963
Commercial and industrial \| Substandard
Amortized cost of loans by loan type
Total loans	21,153	11,227
Commercial real estate
Amortized cost of loans by loan type
Total loans	949,933	900,746
Commercial real estate \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	949,933	900,746
Commercial real estate \| Pass
Amortized cost of loans by loan type
Total loans	912,006	876,207
Commercial real estate \| Special Mention
Amortized cost of loans by loan type
Total loans	5,081	18,570
Commercial real estate \| Substandard
Amortized cost of loans by loan type
Total loans	32,846	5,969
Construction and development
Amortized cost of loans by loan type
Total loans	506,216	527,812
Construction and development \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	506,216	527,812
Construction and development \| Pass
Amortized cost of loans by loan type
Total loans	488,238	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	17,978
1-4 family residential
Amortized cost of loans by loan type
Total loans	253,868	280,192
1-4 family residential \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	253,868	280,192
1-4 family residential \| Pass
Amortized cost of loans by loan type
Total loans	248,123	274,731
1-4 family residential \| Special Mention
Amortized cost of loans by loan type
Total loans	384	594
1-4 family residential \| Substandard
Amortized cost of loans by loan type
Total loans	5,361	4,867
Multifamily residential
Amortized cost of loans by loan type
Total loans	298,733	277,209
Multifamily residential \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	298,733	277,209
Multifamily residential \| Pass
Amortized cost of loans by loan type
Total loans	298,733	277,209
Consumer
Amortized cost of loans by loan type
Total loans	35,637	36,782
Consumer \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	35,637	36,782
Consumer \| Pass
Amortized cost of loans by loan type
Total loans	35,605	36,566
Consumer \| Substandard
Amortized cost of loans by loan type
Total loans	32	216
Agriculture
Amortized cost of loans by loan type
Total loans	9,753	9,812
Agriculture \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	9,753	9,812
Agriculture \| Pass
Amortized cost of loans by loan type
Total loans	9,678	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	75	29
Other
Amortized cost of loans by loan type
Total loans	91,501	86,513
Other \| Loans by risk grades
Amortized cost of loans by loan type
Total loans	91,501	86,513
Other \| Pass
Amortized cost of loans by loan type
Total loans	79,598	79,860
Other \| Substandard
Amortized cost of loans by loan type
Total loans	$ 11,903	$ 6,653

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan class and vintage (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	$ (615)	$ (1,065)
Recovery	685	415
Net (charge-offs) recoveries	70	(650)
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(274)	(869)
Recovery	659	311
Net (charge-offs) recoveries	385	(558)
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(163)	(44)
Recovery	4	81
Net (charge-offs) recoveries	(159)	37
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(71)	(12)
Recovery	1	3
Net (charge-offs) recoveries	(70)	(9)
Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(107)	(88)
Recovery	8	15
Net (charge-offs) recoveries	(99)	$ (73)
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	12
Net (charge-offs) recoveries	12
Other
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
2020.
Financing Receivable, Recorded Investment [Line Items]
Recovery	6
Net (charge-offs) recoveries	6
2020. \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	6
Net (charge-offs) recoveries	6
2019.
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(107)
Recovery	4
Net (charge-offs) recoveries	(103)
2019. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(38)
Recovery	3
Net (charge-offs) recoveries	(35)
2019. \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(65)
Net (charge-offs) recoveries	(65)
2019. \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(4)
Recovery	1
Net (charge-offs) recoveries	(3)
2018.
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(65)
Recovery	160
Net (charge-offs) recoveries	95
2018. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(57)
Recovery	158
Net (charge-offs) recoveries	101
2018. \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Recovery	2
Net (charge-offs) recoveries	2
2018. \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(8)
Net (charge-offs) recoveries	(8)
2017.
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(130)
Recovery	42
Net (charge-offs) recoveries	(88)
2017. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(35)
Recovery	41
Net (charge-offs) recoveries	6
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]
Charge-offs	(42)
Recovery	37
Net (charge-offs) recoveries	(5)
2016. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(42)
Recovery	25
Net (charge-offs) recoveries	(17)
2016. \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	12
Net (charge-offs) recoveries	12
Prior.
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(169)
Recovery	231
Net (charge-offs) recoveries	62
Prior. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	227
Net (charge-offs) recoveries	227
Prior. \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(163)
Recovery	2
Net (charge-offs) recoveries	(161)
Prior. \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(6)
Recovery	1
Net (charge-offs) recoveries	(5)
Prior. \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (charge-offs) recoveries	1
Revolving Loans.
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(102)
Recovery	177
Net (charge-offs) recoveries	75
Revolving Loans. \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(102)
Recovery	177
Net (charge-offs) recoveries	75
Converted Revolving Loans
Financing Receivable, Recorded Investment [Line Items]
Recovery	28
Net (charge-offs) recoveries	28
Converted Revolving Loans \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	28
Net (charge-offs) recoveries	$ 28

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - Activity in the total ACL for loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Loan losses segregated by loan class
Beginning balance			$ 25,280	$ 23,693
Impact of CECL adoption			874
Provision for credit losses for loans	$ 4,569	$ 579	17,845	2,533
Charge-offs			(615)	(1,065)
Recoveries			685	415
Financing Receivable, Allowance for Credit Losses	44,069	25,576	25,280	25,576
Net (charge-offs) recoveries			70	(650)
Ending balance	44,069	25,576	44,069	25,576
Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	8,063	592	8,063	592
Ending balance	8,063	592	8,063	592
General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	36,006	24,984	36,006	24,984
Ending balance	36,006	24,984	36,006	24,984
Commercial and industrial
Loan losses segregated by loan class
Beginning balance			7,671	7,719
Impact of CECL adoption			852
Provision for credit losses for loans			4,439	309
Charge-offs			(274)	(869)
Recoveries			659	311
Financing Receivable, Allowance for Credit Losses	13,347	7,470	13,347	7,470
Net (charge-offs) recoveries			385	(558)
Ending balance	13,347	7,470	13,347	7,470
Commercial and industrial \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	4,111	373	4,111	373
Ending balance	4,111	373	4,111	373
Commercial and industrial \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	9,236	7,097	9,236	7,097
Ending balance	9,236	7,097	9,236	7,097
Commercial real estate
Loan losses segregated by loan class
Beginning balance			7,975	6,730
Impact of CECL adoption			(140)
Provision for credit losses for loans			5,069	1,021
Charge-offs			(163)	(44)
Recoveries			4	81
Financing Receivable, Allowance for Credit Losses	12,745	7,788	12,745	7,788
Net (charge-offs) recoveries			(159)	37
Ending balance	12,745	7,788	12,745	7,788
Commercial real estate \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		22		22
Ending balance		22		22
Commercial real estate \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	12,745	7,766	12,745	7,766
Ending balance	12,745	7,766	12,745	7,766
Construction and development
Loan losses segregated by loan class
Beginning balance			4,446	4,298
Impact of CECL adoption			100
Provision for credit losses for loans			1,788	527
Financing Receivable, Allowance for Credit Losses	6,334	4,825	6,334	4,825
Ending balance	6,334	4,825	6,334	4,825
Construction and development \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	6,334	4,825	6,334	4,825
Ending balance	6,334	4,825	6,334	4,825
1-4 family residential
Loan losses segregated by loan class
Beginning balance			2,257	2,281
Impact of CECL adoption			(275)
Provision for credit losses for loans			959	66
Charge-offs			(71)	(12)
Recoveries			1	3
Financing Receivable, Allowance for Credit Losses	2,871	2,338	2,871	2,338
Net (charge-offs) recoveries			(70)	(9)
Ending balance	2,871	2,338	2,871	2,338
1-4 family residential \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		33		33
Ending balance		33		33
1-4 family residential \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	2,871	2,305	2,871	2,305
Ending balance	2,871	2,305	2,871	2,305
Multifamily residential
Loan losses segregated by loan class
Beginning balance			1,699	1,511
Impact of CECL adoption			294
Provision for credit losses for loans			1,124	318
Financing Receivable, Allowance for Credit Losses	3,117	1,829	3,117	1,829
Ending balance	3,117	1,829	3,117	1,829
Multifamily residential \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	3,117	1,829	3,117	1,829
Ending balance	3,117	1,829	3,117	1,829
Consumer
Loan losses segregated by loan class
Beginning balance			388	387
Impact of CECL adoption			(25)
Provision for credit losses for loans			243	244
Charge-offs			(107)	(88)
Recoveries			8	15
Financing Receivable, Allowance for Credit Losses	507	558	507	558
Net (charge-offs) recoveries			(99)	(73)
Ending balance	507	558	507	558
Consumer \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses		142		142
Ending balance		142		142
Consumer \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	507	416	507	416
Ending balance	507	416	507	416
Agriculture
Loan losses segregated by loan class
Beginning balance			74	62
Impact of CECL adoption			64
Provision for credit losses for loans			14	20
Recoveries			12
Financing Receivable, Allowance for Credit Losses	164	82	164	82
Net (charge-offs) recoveries			12
Ending balance	164	82	164	82
Agriculture \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	164	82	164	82
Ending balance	164	82	164	82
Other
Loan losses segregated by loan class
Beginning balance			770	705
Impact of CECL adoption			4
Provision for credit losses for loans			4,209	28
Charge-offs				(52)
Recoveries			1	5
Financing Receivable, Allowance for Credit Losses	4,984	686	4,984	686
Net (charge-offs) recoveries			1	(47)
Ending balance	4,984	686	4,984	686
Other \| Specific reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	3,952	22	3,952	22
Ending balance	3,952	22	3,952	22
Other \| General reserve
Loan losses segregated by loan class
Financing Receivable, Allowance for Credit Losses	1,032	664	1,032	664
Ending balance	1,032	$ 664	1,032	$ 664
Unfunded Commitment
Loan losses segregated by loan class
Beginning balance			378
Financing Receivable, Allowance for Credit Losses	4,541		4,541
Ending balance	$ 4,541		$ 4,541

ALLOWANCE FOR LOAN LOSSES - ACL

ALLOWANCE FOR LOAN LOSSES - ACL for loans by loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Loan Category
Allowance for credit losses on loans	$ 44,069	$ 25,280	$ 25,576	$ 23,693
Allowance for loan losses (as a percent)	100.00%	100.00%
Commercial and industrial
Loan Category
Allowance for credit losses on loans	$ 13,347	$ 7,671	7,470	7,719
Allowance for loan losses (as a percent)	30.30%	30.30%
Commercial real estate
Loan Category
Allowance for credit losses on loans	$ 12,745	$ 7,975	7,788	6,730
Allowance for loan losses (as a percent)	28.90%	31.60%
Construction and development
Loan Category
Allowance for credit losses on loans	$ 6,334	$ 4,446	4,825	4,298
Allowance for loan losses (as a percent)	14.30%	17.60%
1-4 family residential
Loan Category
Allowance for credit losses on loans	$ 2,871	$ 2,257	2,338	2,281
Allowance for loan losses (as a percent)	6.50%	8.90%
Multifamily residential
Loan Category
Allowance for credit losses on loans	$ 3,117	$ 1,699	1,829	1,511
Allowance for loan losses (as a percent)	7.10%	6.70%
Consumer
Loan Category
Allowance for credit losses on loans	$ 507	$ 388	558	387
Allowance for loan losses (as a percent)	1.20%	1.50%
Agriculture
Loan Category
Allowance for credit losses on loans	$ 164	$ 74	$ 82	$ 62
Allowance for loan losses (as a percent)	0.40%	0.30%
Other
Loan Category
Allowance for credit losses on loans	$ 4,984	$ 770
Allowance for loan losses (as a percent)	11.30%	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	9 Months Ended
	Sep. 30, 2020USD ($)
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 25,280
Ending balance	44,069
Unfunded Commitment
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	378
Impact of implementation	2,981
Provision for credit losses for unfunded commitments	1,182
Ending balance	$ 4,541

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
PREMISES AND EQUIPMENT
Premises and equipment	$ 96,728		$ 83,798
Less accumulated depreciation	(34,996)		(32,923)
Premises and equipment, net	61,732		50,875
Depreciation expense	2,341	$ 2,408
Land
PREMISES AND EQUIPMENT
Premises and equipment	15,539		13,466
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	62,770		53,869
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	16,462		15,917
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	203		203
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 1,754		$ 343

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Changes in goodwill	0	0
Other Intangible Assets, net
Gross Intangible Assets	20,714	20,747
Accumulated Amortization	(16,411)	(15,809)
Net Intangible Assets	$ 4,303	$ 4,938
Core deposits
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	3 years 4 months 24 days	4 years 2 months 12 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(13,232)	(12,979)
Net Intangible Assets	$ 518	$ 771
Customer relationships
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	8 years 3 months 18 days	9 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(2,983)	(2,651)
Net Intangible Assets	$ 3,646	$ 3,978
Servicing assets
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	10 years 9 months 18 days	12 years 9 months 18 days
Gross Intangible Assets	$ 335	$ 368
Accumulated Amortization	(196)	(179)
Net Intangible Assets	$ 139	$ 189

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Servicing Assets
Balance at beginning of year	$ 189	$ 166
Increase from loan sales	14	39
Decrease from serviced loans paid off or foreclosed		(30)
Amortization	(64)	(24)
Balance at end of period	139	$ 151
Estimated future amortization for intangible assets
Net Intangible Assets	$ 4,303		$ 4,938

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($)	9 Months Ended
BANK OWNED LIFE INSURANCE (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019
BANK OWNED LIFE INSURANCE.
Proceeds from bank-owned life insurance policy	$ 2,000,000
Gain from bank-owned life insurance	769,000
Balance at beginning of year	71,881,000	$ 71,525,000
Redemptions	(1,965,000)	(4,655,000)
Net change in cash surrender value	2,015,000	4,581,000
Balance at end of year	$ 71,931,000	$ 71,451,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
DEPOSITS
Interest-bearing demand accounts	$ 346,406	$ 369,744
Money market accounts	916,668	805,942
Saving accounts	103,062	92,183
Certificates and other time deposits, $100,000 or greater	171,854	208,018
Certificates and other time deposits, less than $100,000	171,691	191,640
Total interest-bearing deposits	1,709,681	1,667,527
Noninterest-bearing deposits	1,460,983	1,184,861
Total deposits	$ 3,170,664	$ 2,852,388

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 35,500,000	$ 56,800,000
Brokered deposits	113,200,000	128,900,000
Overdrafts reclassified to loans	384,000
Accrued interest payable for deposits	$ 572,000	$ 931,000
Major concentrations of deposits from any single or related groups of depositors	0	0
Certificates of deposits or other time deposits were uninsured	$ 81,700,000

LINES OF CREDIT (Details)

LINES OF CREDIT (Details)	9 Months Ended
LINES OF CREDIT (Details)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
LINES OF CREDIT
Capital to risk based assets ratio	0.1667		0.1641
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	992,000,000		$ 1,000,000,000
Average outstanding balance, FHLB advances	$ 56,900,000	$ 59,100,000
Interest rate	1.60%	2.42%
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
Capital to risk based assets ratio	12
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

LINES OF CREDIT - Maturity and

LINES OF CREDIT - Maturity and Federal Funds Lines of Credit (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
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
Revolving line of credit available	85,000	75,000
Outstanding borrowings	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 152.8	$ 158.7
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	62.2	48.7
Related party deposits	$ 196.6	$ 233.9

FAIR VALUE DISCLOSURES - Financ

FAIR VALUE DISCLOSURES - Financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Financial Assets
Securities available for sale	$ 226,101,000	$ 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	235,740,000	233,900,000
Financial Liabilities
Total financial liabilities	9,581,000	2,638,000
Level 1 Inputs \| Recurring basis \| Equity securities
Financial Assets
Securities available for sale	1,192,000	1,147,000
Level 2 Inputs \| Recurring basis
Financial Assets
Credit risk participation agreement	58,000
Level 2 Inputs \| Recurring basis \| Interest rate swaps with customers
Financial Assets
Interest rate swaps assets	9,581,000	2,638,000
Level 2 Inputs \| Recurring basis \| Interest rate swaps
Financial Liabilities
Interest rate swaps liabilities	9,581,000	2,638,000
Level 2 Inputs \| Recurring basis \| State and municipal securities
Financial Assets
Securities available for sale	78,578,000	53,279,000
Level 2 Inputs \| Recurring basis \| Collateralized mortgage obligations
Financial Assets
Securities available for sale	34,512,000	55,989,000
Level 2 Inputs \| Recurring basis \| Mortgage-backed securities
Financial Assets
Securities available for sale	$ 111,819,000	$ 120,847,000

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain assets measured on a non recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Loan Impairment Assessment
Recorded Investment		$ 3,426
Related Allowance		437
Total Recorded Investment		12,917
Risk rating	$ 2,920,457	2,613,805
Financing Receivable, Allowance for Credit Losses	44,069	25,280	$ 25,576	$ 23,693
Total loans	2,978,327	2,646,673
Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	16,203	3,426
Related Allowance	8,063	437
Total Recorded Investment	8,140	2,989
Commercial and industrial
Loan Impairment Assessment
Recorded Investment		699
Related Allowance		416
Total Recorded Investment		999
Financing Receivable, Allowance for Credit Losses	13,347	7,671	7,470	7,719
Total loans	832,686	527,607
Commercial and industrial \| Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	9,955	699
Related Allowance	4,111	416
Total Recorded Investment	5,844	283
Commercial real estate
Loan Impairment Assessment
Total Recorded Investment		1,404
Financing Receivable, Allowance for Credit Losses	12,745	7,975	7,788	6,730
Total loans	949,933	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	2,871	2,257	2,338	2,281
Total loans	253,868	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	507	388	558	387
Total loans	35,637	36,782
Agriculture
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	164	74	82	$ 62
Total loans	9,753	9,812
Other
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	4,984	770
Total loans	91,501	86,513
Other \| Non-recurring basis \| Level 3 Inputs
Loan Impairment Assessment
Recorded Investment	4,741	1,242
Related Allowance	3,952	6
Total Recorded Investment	789	$ 1,236
Specific reserve
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	8,063		592
Specific reserve \| Commercial and industrial
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses	$ 4,111		373
Specific reserve \| Commercial real estate
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			22
Specific reserve \| 1-4 family residential
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			33
Specific reserve \| Consumer
Loan Impairment Assessment
Financing Receivable, Allowance for Credit Losses			$ 142

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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	Sep. 30, 2020	Dec. 31, 2019
Financial Assets:
Accrued interest receivable	$ 12,900	$ 7,500
Equity investments	18,532	16,710
Financial Liabilities:
Noninterest-bearing deposits	1,460,983	1,184,861
Interest-bearing deposits	1,709,681	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,153	485
Fair Value
Financial Assets:
Total financial assets	3,435,494	3,123,948
Financial Liabilities:
Total financial liabilities	3,290,824	2,886,532
Carrying Amount
Financial Assets:
Total financial assets	3,404,184	3,084,854
Financial Liabilities:
Total financial liabilities	3,223,463	2,903,878
Level 1 Inputs \| Fair Value
Financial Assets:
Cash and due from banks	377,572	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,460,983	1,184,861
Level 1 Inputs \| Carrying Amount
Financial Assets:
Cash and due from banks	377,572	372,064
Financial Liabilities:
Noninterest-bearing deposits	1,460,983	1,184,861
Level 2 Inputs \| Fair Value
Financial Assets:
Bank-owned life insurance	71,931	71,881
Accrued interest receivable	13,790	8,742
Servicing asset	139	189
Financial Liabilities:
Interest-bearing deposits	1,775,189	1,651,359
Federal Home Loan Bank advances	51,854	48,822
Repurchase agreements	2,152	485
Accrued interest payable	646	1,005
Level 2 Inputs \| Carrying Amount
Financial Assets:
Bank-owned life insurance	71,931	71,881
Accrued interest receivable	13,790	8,742
Servicing asset	139	189
Financial Liabilities:
Interest-bearing deposits	1,709,681	1,667,527
Federal Home Loan Bank advances	50,000	50,000
Repurchase agreements	2,153	485
Accrued interest payable	646	1,005
Level 3 Inputs \| Fair Value
Financial Assets:
Loans, including held for sale, net	2,953,530	2,654,362
Equity investments	18,532	16,710
Level 3 Inputs \| Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,922,220	2,615,268
Equity investments	$ 18,532	$ 16,710

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details)	9 Months Ended	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Sep. 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
Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	6 years 4 months 20 days	6 years 7 months 24 days
Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity		6 years 8 months 15 days
Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity		6 years 8 months 15 days
Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	6 years 4 months 20 days	6 years 7 months 24 days
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 298,753,000	$ 150,352,000
Fair Value	58,000
Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	142,270,000
Fair value asset	9,581,000	2,599,000
Notional Amount		69,189,000
Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fair value asset		39,000
Notional Amount		5,987,000
Not Designated as Hedging Instruments \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	14,213,000
Fair Value	$ 58,000
Weighted Average Maturity	9 years 5 months 26 days
Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fair value liability		(39,000)
Notional Amount		5,987,000
Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 142,270,000
Fair value liability	$ (9,581,000)	(2,599,000)
Notional Amount		$ 69,189,000
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%
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate		2.50%
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 \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate		4.00%
Minimum \| 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 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. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.50%
Minimum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.25%	4.40%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other 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 ($)	9 Months Ended
OPERATING LEASES (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
OPERATING LEASES
Right-of-use assets	$ 12,893,000	$ 12,926,000
Operating lease liabilities	15,759,000	$ 15,704,000
Increase in right-of-use asset in exchange for new operating lease liabilities	878,000
Decrease in right of use asset	831,000
Decrease in operating lease liability	866,000
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 2 months 12 days
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,600,000

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Lease costs
Operating lease cost	$ 1,458	$ 1,384
Short-term lease cost	30	54
Sublease income	(221)	(128)
Total lease cost	$ 1,267	$ 1,310

OPERATING LEASES - Maturity of

OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 309
2021	2,105
2022	2,225
2023	2,227
2024	1,930
Thereafter	11,161
Total undiscounted lease liability	19,957
Less: Discount on cash flows	(3,100)
Lease signed, but not yet commenced	(1,098)
Total operating lease liability	$ 15,759	$ 15,704

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit, variable interest rate	$ 690,386	$ 652,611
Commitments to extend credit, fixed interest rate	87,355	141,439
Total	777,741	794,050
Standby letters of credit	$ 28,088	$ 23,547

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	9 Months Ended
	Oct. 31, 2017	Sep. 30, 2020	Sep. 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		$ 1,600,000	$ 1,500,000
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		268,000		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		$ 585,000		$ 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)	9 Months Ended
STOCK-BASED COMPENSATION - Narrative (Details)	Sep. 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	285,262

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Number of Shares Underlying Options
Outstanding, beginning of period	213,078	232,322
Exercised	(2,524)	(15,244)
Forfeited/expired		(4,000)
Outstanding, end of period	210,554	213,078
Weighted Average Exercise Price
Outstanding, beginning of period	$ 16.92	$ 16.66
Exercised	12.90	12.74
Forfeited/expired		17.73
Outstanding, end of period	$ 16.97	$ 16.92

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	178,555
Number of shares underlying options unvested	31,999
Number of shares underlying options outstanding	210,554
Weighted-average exercise price per share exercisable	$ 16.25
Weighted-average exercise price per share unvested	21
Weighted-average exercise price per share outstanding	$ 16.97	$ 16.92	$ 16.92	$ 16.66
Aggregate intrinsic value exercisable	$ 274
Aggregate intrinsic value outstanding	$ 274
Weighted-average remaining contractual term exercisable (years)	4 years 4 months 24 days
Weighted-average remaining contractual term unvested (years)	6 years 9 months 18 days
Weighted-average remaining contractual term outstanding (years)	4 years 9 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 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	41,594	36,992
Vested	(14,811)	(3,100)
Forfeited	(9,432)	(3,220)
Outstanding, end of period	178,794	212,445
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 28.20	$ 27.05
Granted	28.24	32.18
Vested	31.68	29.69
Forfeited	27.40	29.99
Outstanding, end of period	$ 27.96	$ 27.86

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 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	178,794	161,443	212,445	181,773
Weighted-average grant date fair value per share	$ 27.96	$ 28.20	$ 27.86	$ 27.05
Aggregate fair value (in thousands)	$ 2,921
Weighted-average remaining vesting period (years)	2 years 2 months 12 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)	$ 282
Weighted-average remaining vesting period (years)	2 years 1 month 6 days

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Stock options exercised, restricted stock vested, shares withheld and shares issued (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Number of Shares
Stock compensation expense	$ 582,000	$ 608,000	$ 1,700,000	$ 1,700,000
Unrecognized compensation expense	$ 4,100,000		$ 4,100,000
Weighted average period			2 years 2 months 12 days
Stock options
Number of Shares
Stock Options, Exercised/Vested			2,524	15,244
Stock Options, Shares withheld				(2,318)
Stock Options, Shares Issued			2,524	12,926
Non-performance based restricted stock
Number of Shares
Restricted Stock, Exercised/Vested			14,811	3,100
Restricted Stock, Shares withheld			(1,761)	(658)
Restricted Stock, Shares Issued			$ 13,050	$ 2,442

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Common Equity Tier I to RiskWeighted Assets
Dividend restrictions term	2 years
Actual amount	$ 450,191	$ 448,445
Common Equity Tier One Capital Ratio	0.1541	0.1552
Minimum Capital Required Basel III (amount)	$ 204,470	$ 202,218
Minimum Capital RequiredBasel III (ratio)	0.0700	0.0700
Tier I Capital to RiskWeighted Assets
Actual amount	$ 450,191	$ 448,445
Actual ratio	0.1541	0.1552
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 248,285	$ 245,550
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.0850	0.0850
Total Capital to RiskWeighted Assets
Actual amount	$ 486,853	$ 474,104
Actual ratio	0.1667	0.1641
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 306,704	$ 303,327
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.1050	0.1050
Leverage Ratio
Actual amount	$ 450,191	$ 448,445
Actual ratio	0.1190	0.1311
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 151,295	$ 136,798
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.0400	0.0400
Bank Only
Common Equity Tier I to RiskWeighted Assets
Actual amount	$ 413,710	$ 406,675
Common Equity Tier One Capital Ratio	0.1416	0.1408
Minimum Capital Required Basel III (amount)	$ 204,454	$ 202,203
Minimum Capital RequiredBasel III (ratio)	0.0700	0.0700
Required to be Considered Well Capitalized, amount	$ 189,850	$ 187,760
Required to be Considered Well Capitalized, ratio	0.0650	0.0650
Tier I Capital to RiskWeighted Assets
Actual amount	$ 413,710	$ 406,675
Actual ratio	0.1416	0.1408
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 248,266	$ 245,532
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.0850	0.0850
Required to be Considered Well Capitalized, amount	$ 233,662	$ 231,089
Required to be Considered Well Capitalized, ratio	0.0800	0.0800
Total Capital to RiskWeighted Assets
Actual amount	$ 450,369	$ 432,334
Actual ratio	0.1542	0.1497
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 306,681	$ 303,304
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.1050	0.1050
Required to be Considered Well Capitalized, amount	$ 292,078	$ 288,861
Required to be Considered Well Capitalized, ratio	0.1000	0.1000
Leverage Ratio
Actual amount	$ 413,710	$ 406,675
Actual ratio	0.1094	0.1190
Minimum Capital RequiredBasel III Fully Phasedin (amount)	$ 151,276	$ 136,754
Minimum Capital RequiredBasel III Fully Phasedin (ratio)	0.0400	0.0400
Required to be Considered Well Capitalized, amount	$ 189,094	$ 170,943
Required to be Considered Well Capitalized, ratio	0.0500	0.0500

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INCOME TAXES
Income tax benefit	$ 1,344	$ 2,990	$ 3,751	$ 8,666
Effective tax rate (as a percent)	17.31%	18.61%	18.87%	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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net income for common shareholders	$ 6,421	$ 13,076	$ 16,125	$ 37,881
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,748,000	24,923,000	24,808,000	24,918,000
Dilutive effect of outstanding stock options and unvested restricted stock awards	22,000	123,000	39,000	135,000
Diluted weighted-average shares outstanding	24,770,000	25,046,000	24,847,000	25,053,000
Earnings per share:
Basic	$ 0.26	$ 0.52	$ 0.65	$ 1.52
Diluted	$ 0.26	$ 0.52	$ 0.65	$ 1.51
Stock options
Earnings per share:
Excluded from diluted weighted-average share, number of stock options	150,000		80,000
Non-performance based restricted stock
Earnings per share:
Excluded from diluted weighted-average share, number of stock options	163,667		174,307