Stellar Bancorp (STEL) 10-Q28 Apr 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	Apr. 25, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
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		24,606,405
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001473844
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Cash and due from banks	$ 47,718	$ 27,689
Interest-bearing deposits at other financial institutions	723,273	922,457
Total cash and cash equivalents	770,991	950,146
Securities	547,979	425,046
Equity investments	17,101	17,727
Loans held for sale	748	164
Loans, net of allowance for credit losses of $31,442 and $31,345 at March 31, 2022 and December 31, 2021, respectively	2,848,438	2,836,179
Premises and equipment, net of accumulated depreciation of $38,912 and $39,196 at March 31, 2022 and December 31, 2021, respectively	56,665	58,417
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $17,526 and $17,345 at March 31, 2022 and December 31, 2021, respectively	3,540	3,658
Bank-owned life insurance	73,527	73,156
Operating lease right-to-use assets	10,850	11,191
Deferred tax assets, net	16,724	9,973
Other assets	18,464	19,394
Total assets	4,445,977	4,486,001
Liabilities:
Noninterest-bearing deposits	1,801,323	1,784,981
Interest-bearing deposits	2,019,902	2,046,303
Total deposits	3,821,225	3,831,284
Federal Home Loan Bank advances	50,000	50,000
Operating lease liabilities	13,752	14,142
Other liabilities	21,277	28,450
Total liabilities	3,906,254	3,923,876
Commitments and contingencies (Note 16)
Shareholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued
Common stock, $0.01 par value, 90,000,000 shares authorized, 25,338,008 and 25,323,558 shares issued at March 31, 2022 and December 31, 2021, respectively; 24,502,180 and 24,487,730 shares outstanding at March 31, 2022 and December 31, 2021, respectively	253	253
Additional paid-in capital	336,214	335,846
Retained earnings	244,672	237,165
Treasury stock, at cost, 835,828 shares held at both March 31, 2022 and December 31, 2021	(14,196)	(14,196)
Accumulated other comprehensive income (loss), net of tax of $(7,236) and $813 at March 31, 2022 and December 31, 2021, respectively	(27,220)	3,057
Total shareholders' equity	539,723	562,125
Total liabilities and shareholders' equity	$ 4,445,977	$ 4,486,001

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Allowance for credit losses on loans	$ 31,442	$ 31,345
Premises and equipment, accumulated depreciation	38,912	39,196
Other intangible assets, accumulated amortization	$ 17,526	$ 17,345
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	25,338,008	25,323,558
Common stock, shares outstanding	24,502,180	24,487,730
Treasury stock, shares	835,828	835,828
Accumulated other comprehensive income, tax	$ (7,236)	$ 813

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income
Interest and fees on loans	$ 31,221	$ 33,165
Securities	2,292	1,173
Interest-bearing deposits at other financial institutions	348	177
Equity investments	154	146
Total interest income	34,015	34,661
Interest expense
Deposits	1,164	1,350
Federal Home Loan Bank advances	221	221
Total interest expense	1,385	1,571
Net interest income	32,630	33,090
Provision for credit losses:
Provision for credit losses for loans	20	286
Provision for credit losses for unfunded commitments	415	126
Total provision for credit losses	435	412
Net interest income after provision for credit losses	32,195	32,678
Noninterest income
Total noninterest income	5,329	3,111
Noninterest expense
Salaries and employee benefits	15,254	14,188
Occupancy expense	2,371	2,521
Professional and director fees	879	1,703
Data processing and software	1,763	1,576
Regulatory fees	614	556
Advertising, marketing and business development	249	285
Telephone and communications	454	463
Security and protection expense	324	390
Amortization of intangibles	181	191
Other expenses	2,563	1,412
Total noninterest expense	24,652	23,285
Net income before income tax expense	12,872	12,504
Income tax expense	2,277	2,485
Net income	$ 10,595	$ 10,019
Earnings per common share
Basic	$ 0.43	$ 0.41
Diluted	$ 0.43	$ 0.41
Deposit account service charges
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,370	$ 1,193
Card interchange fees
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	1,037	976
Earnings on bank-owned life insurance
Noninterest income
Revenue Not from Contract with Customer, Excluding Interest Income	371	390
Net gain on sales of assets
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	530	192
Other.
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 2,021	$ 360

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 10,595	$ 10,019
Change in unrealized losses on securities available for sale arising during the period	(38,325)	(4,339)
Change in related deferred income tax	8,048	911
Other comprehensive income (loss), net of tax	(30,277)	(3,428)
Total comprehensive income	$ (19,682)	$ 6,591

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2020	$ 255	$ 339,334	$ 214,456	$ (14,369)	$ 6,775	$ 546,451
Beginning balance, shares at Dec. 31, 2020	25,458,816			(845,988)
Net income			10,019			10,019
Dividends on common stock			(3,196)			(3,196)
Stock-based compensation expense		541				541
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(70)				(70)
Vesting of restricted stock, net of shares withheld for employee tax liabilities, shares	10,727
Shares repurchased	$ (2)	(4,966)				(4,968)
Shares repurchased, shares	(181,089)
Other comprehensive income (loss), net of tax					(3,428)	(3,428)
Ending balance at Mar. 31, 2021	$ 253	334,839	221,279	$ (14,369)	3,347	545,349
Ending balance, shares at Mar. 31, 2021	25,288,454			(845,988)
Beginning balance at Dec. 31, 2021	$ 253	335,846	237,165	$ (14,196)	3,057	562,125
Beginning balance, shares at Dec. 31, 2021	25,323,558			(835,828)
Net income			10,595			10,595
Dividends on common stock			(3,088)			(3,088)
Stock-based compensation expense		483				483
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(115)				(115)
Vesting of restricted stock, net of shares withheld for employee tax liabilities, shares	14,450
Other comprehensive income (loss), net of tax					(30,277)	(30,277)
Ending balance at Mar. 31, 2022	$ 253	$ 336,214	$ 244,672	$ (14,196)	$ (27,220)	$ 539,723
Ending balance, shares at Mar. 31, 2022	25,338,008			(835,828)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
0Condensed Consolidated Statements of Changes in Shareholders' Equity
Dividends on Common Stock	$ 0.13	$ 0.13

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Condensed Consolidated Statements of Cash Flows - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 10,595,000	$ 10,019,000
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for credit losses	435,000	412,000
Depreciation expense	840,000	863,000
Amortization of intangibles	181,000	191,000
Amortization of premiums on securities	298,000	400,000
Amortization of lease right-to-use assets	341,000	385,000
Accretion of lease liabilities	86,000	100,000
Earnings on bank-owned life insurance	(371,000)	(390,000)
Stock-based compensation expense	483,000	541,000
Deferred income tax provision	1,297,000	611,000
Net gain on sales of assets	(530,000)	(192,000)
Net loss on securities	52,000	16,000
Change in operating assets and liabilities:
Loans held for sale	(184,000)	1,900,000
Other assets	930,000	4,426,000
Other liabilities	(7,949,000)	(3,382,000)
Total adjustments	(4,091,000)	5,881,000
Net cash provided by operating activities	6,504,000	15,900,000
Cash flows from investing activities:
Purchases of securities	(324,328,000)	(227,793,000)
Proceeds from sales, calls and maturities of securities	151,385,000	152,530,000
Principal repayments of securities	11,335,000	18,698,000
Net decrease in loans	17,334,000	31,956,000
Net purchases of loan participations	(32,415,000)
Proceeds from sales of Small Business Administration loans	2,802,000	374,000
Net return of capital (contributions) to equity investments	1,843,000	(134,000)
Net purchases of premises and equipment	(238,000)	(313,000)
Net cash used in investing activities	(172,282,000)	(24,682,000)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	16,342,000	144,983,000
Net increase in interest-bearing deposits	(26,401,000)	(62,030,000)
Dividends paid on common stock	(3,203,000)	(2,469,000)
Payments to tax authorities for stock-based compensation	(115,000)	(70,000)
Repurchase of common stock		(4,968,000)
Net cash (used) provided by financing activities	(13,377,000)	75,446,000
Net increase (decrease) in cash, cash equivalents and restricted cash	(179,155,000)	66,664,000
Cash, cash equivalents and restricted cash, beginning	950,146,000	538,007,000
Cash, cash equivalents and restricted cash, ending	$ 770,991,000	$ 604,671,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2022
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 34 branches, 18 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 medium-sized businesses and professionals with operations within the Bank’s markets. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2022 and December 31, 2021 and consolidated results of operations, consolidated shareholders’ equity and consolidated cash flows for the three months ended March 31, 2022 and 2021. 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, 2021 included within the Company’s Annual Report on Form 10-K. Share Repurchase Program Accounting Standards Not Yet Adopted Cash Flow Reporting Supplemental disclosures of cash flow information were as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,413 $ 1,688 Supplemental disclosures of non-cash flow information: Change in liability for dividends accrued 115 (727) Repossessed real estate and other assets — 106

SECURITIES

SECURITIES	3 Months Ended
SECURITIES	Mar. 31, 2022
SECURITIES.
SECURITIES	NOTE 2: SECURITIES The amortized cost, related gross unrealized gains and losses and fair values of investments in securities as of the dates indicated below were as follows: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2022 Debt securities available for sale: State and municipal securities $ 171,658 $ 488 $ (16,372) $ 155,774 U.S. Treasury securities 110,597 — (1,553) 109,044 U.S. agency securities: Callable debentures 3,000 — (193) 2,807 Collateralized mortgage obligations 94,876 2 (4,954) 89,924 Mortgage-backed securities 201,184 258 (12,133) 189,309 Equity securities 1,193 — (72) 1,121 Total $ 582,508 $ 748 $ (35,277) $ 547,979 December 31, 2021 Debt securities available for sale: State and municipal securities $ 168,541 $ 4,451 $ (392) $ 172,600 U.S. Treasury securities 11,888 — (91) 11,797 U.S. agency securities: Callable debentures 3,000 — (27) 2,973 Collateralized mortgage obligations 63,129 115 (862) 62,382 Mortgage-backed securities 173,446 1,805 (1,130) 174,121 Equity securities 1,189 — (16) 1,173 Total $ 421,193 $ 6,371 $ (2,518) $ 425,046 The amortized cost and estimated fair value of securities, by contractual maturities, as of the dates indicated below were as follows: (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total March 31, 2022 Amortized cost: Debt securities available for sale: State and municipal securities $ — $ 507 $ 15,874 $ 155,277 $ 171,658 U.S. Treasury securities 10,129 94,708 5,760 — 110,597 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 3,834 91,042 94,876 Mortgage-backed securities — 851 13,835 186,498 201,184 Equity securities 1,193 — — — 1,193 Total $ 11,322 $ 96,066 $ 42,303 $ 432,817 $ 582,508 Fair value: Debt securities available for sale: State and municipal securities $ — $ 508 $ 15,646 $ 139,620 $ 155,774 U.S. Treasury securities 10,076 93,567 5,401 — 109,044 U.S. agency securities: Callable debentures — — 2,807 — 2,807 Collateralized mortgage obligations — — 3,815 86,109 89,924 Mortgage-backed securities — 869 13,823 174,617 189,309 Equity securities 1,121 — — — 1,121 Total $ 11,197 $ 94,944 $ 41,492 $ 400,346 $ 547,979 (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total December 31, 2021 Amortized cost: Debt securities available for sale: State and municipal securities $ 881 $ — $ 12,339 $ 155,321 $ 168,541 U.S. Treasury securities — 6,138 5,750 — 11,888 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 4,528 58,601 63,129 Mortgage-backed securities — 953 4,056 168,437 173,446 Equity securities 1,189 — — — 1,189 Total $ 2,070 $ 7,091 $ 29,673 $ 382,359 $ 421,193 Fair value: Debt securities available for sale: State and municipal securities $ 883 $ — $ 12,905 $ 158,812 $ 172,600 U.S. Treasury securities — 6,072 5,725 — 11,797 U.S. agency securities: Callable debentures — — 2,973 — 2,973 Collateralized mortgage obligations — — 4,591 57,791 62,382 Mortgage-backed securities — 994 4,166 168,961 174,121 Equity securities 1,173 — — — 1,173 Total $ 2,056 $ 7,066 $ 30,360 $ 385,564 $ 425,046 Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. No securities were sold in the three months ended March 31, 2022 and 2021. At March 31, 2022 and December 31, 2021, securities with a carrying amount of $26.8 million and $25.6 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Management did not believe that any of the securities the Company held at March 31, 2022 or December 31, 2021 were impaired due to credit quality. Accordingly, no ACL was recorded in the Company’s condensed consolidated balance sheets at March 31, 2022 or during 2021. Accrued interest receivable for securities was $1.5 million and $2.0 million at March 31, 2022 and December 31, 2021, respectively, and is included in other assets in the condensed consolidated balance sheets. The Company held 334 and 115 securities at March 31, 2022 and December 31, 2021, respectively, that were in a gross unrealized loss position. Securities with unrealized losses as of the dates indicated below, aggregated by category and the length of time, were as follows: Less than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses March 31, 2022 Debt securities available for sale: State and municipal securities $ 117,448 $ (15,734) $ 3,269 $ (638) U.S. Treasury securities 109,044 (1,553) — — U.S. agency securities: Callable debentures 2,807 (193) — — Collateralized mortgage obligations 77,644 (3,692) 11,189 (1,262) Mortgage-backed securities 149,009 (9,777) 19,934 (2,356) Equity securities 1,121 (72) — — $ 457,073 $ (31,021) $ 34,392 $ (4,256) December 31, 2021 Debt securities available for sale: State and municipal securities $ 36,962 $ (387) $ 257 $ (5) U.S. Treasury securities 11,797 (91) — — U.S. agency securities: Callable debentures 2,973 (27) — — Collateralized mortgage obligations 40,776 (860) 241 (2) Mortgage-backed securities 87,220 (1,130) — — Equity securities 1,173 (16) — — $ 180,901 $ (2,511) $ 498 $ (7)

EQUITY INVESTMENTS

EQUITY INVESTMENTS	3 Months Ended
EQUITY INVESTMENTS	Mar. 31, 2022
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 as of the dates indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,973 3,967 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,716 4,348 $ 17,101 $ 17,727 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 March 31, 2022 and December 31, 2021, the Company had $5.9 million and $6.3 million, respectively, in outstanding unfunded commitments to these funds, which are subject to call. During the three months ended March 31, 2022, two of these investment funds sold underlying investments for more than their book value and the Company recorded a total gain of $1.2 million, which is included in net gains on sales of assets in the condensed consolidated income statement. The Company’s equity investments are evaluated for impairment based on an assessment of qualitative indicators, which include, but are not limited to: (i) a significant deterioration in the earnings, performance, credit rating, asset quality or business prospects of the investee; (ii) a significant adverse change in the regulatory, economic or technological environment of the investee; (iii) a significant adverse change in the general market conditions of either the geographical area or the industry in which the investee operates; and (iv) a bona fide offer to purchase, an offer by the investee to sell, or completed auction process for the same or similar investment for an amount less than the carrying amount of the investment. There were no such qualitative indicators as of March 31, 2022.

LOANS

LOANS	3 Months Ended
LOANS	Mar. 31, 2022
LOANS
LOANS	NOTE 4: LOANS Loans by loan class, or major loan category, as of the dates indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Commercial and industrial $ 600,990 20.8% $ 634,384 22.0% Real estate: Commercial real estate 1,142,646 39.5% 1,091,969 38.0% Construction and development 473,326 16.4% 460,719 16.0% 1-4 family residential 263,213 9.1% 277,273 9.6% Multi-family residential 279,099 9.7% 286,396 10.0% Consumer 28,230 1.0% 28,090 1.0% Agriculture 6,287 0.2% 7,941 0.3% Other 95,187 3.3% 89,655 3.1% Total gross loans 2,888,978 100.0% 2,876,427 100.0% Less allowance for credit losses for loans (31,442) (31,345) Less deferred loan fees and unearned discounts (8,350) (8,739) Less loans held for sale (748) (164) Loans, net $ 2,848,438 $ 2,836,179 Accrued interest receivable for loans was $9.3 million and $9.6 million at March 31, 2022 and December 31, 2021, respectively, and was 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. The Company did not purchase or sell loan participations during the three months ended March 31, 2021. Loan participations purchased and sold during the three months ending March 31, 2022 by loan class, were as follows: Participations Participations (Dollars in thousands) Purchased Sold March 31, 2022 Commercial and industrial $ 15,844 $ 1,943 Commercial real estate 17,955 1,247 Construction and development — — Other 1,806 — $ 35,605 $ 3,190 The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the three months ended March 31, 2022 and 2021, totaled $2.8 million and $374,000, respectively. Net gains recognized on sales of SBA loans were $343,000 and $60,000 for the three months ended March 31, 2022 and 2021, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	3 Months Ended
LOAN PERFORMANCE	Mar. 31, 2022
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 indicated 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 March 31, 2022 Commercial and industrial $ 3,517 $ 498 $ — $ 4,015 $ 596,975 $ 600,990 $ — Real estate: Commercial real estate 9,941 — — 9,941 1,132,705 1,142,646 — Construction and development — — 140 140 473,186 473,326 — 1-4 family residential 145 1,534 — 1,679 261,534 263,213 — Multi-family residential — — — — 279,099 279,099 — Consumer — — — — 28,230 28,230 — Agriculture — — — — 6,287 6,287 — Other — — — — 95,187 95,187 — Total gross loans $ 13,603 $ 2,032 $ 140 $ 15,775 $ 2,873,203 $ 2,888,978 $ — December 31, 2021 Commercial and industrial $ 14 $ — $ — $ 14 $ 634,370 $ 634,384 $ — Real estate: Commercial real estate 650 — 55 705 1,091,264 1,091,969 — Construction and development — — 142 142 460,577 460,719 — 1-4 family residential 150 34 — 184 277,089 277,273 — Multi-family residential — — — — 286,396 286,396 — Consumer 50 — — 50 28,040 28,090 — Agriculture — — — — 7,941 7,941 — Other 41 — — 41 89,614 89,655 — Total gross loans $ 905 $ 34 $ 197 $ 1,136 $ 2,875,291 $ 2,876,427 $ — 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 indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Commercial and industrial $ 8,765 $ 9,090 Real estate: Commercial real estate 11,363 11,512 Construction and development 140 142 1-4 family residential 1,777 1,784 Consumer 38 40 Total nonaccrual loans $ 22,083 $ 22,568 Interest income that would have been earned under the original terms of the nonaccrual loans was $249,000 and $191,000 for the three months ended March 31, 2022 and 2021, respectively. Loans restructured due to the borrower’s financial difficulties, or troubled debt restructurings, during the three months ended March 31, 2022 and 2021, that remained outstanding as of the end of those periods were as follows: Post-modification Recorded Investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate March 31, 2022 Commercial and industrial 7 $ 3,870 $ 1,093 $ — $ — $ 2,777 Real estate: Commercial real estate 1 234 — — — 245 Total 8 $ 4,104 $ 1,093 $ — $ — $ 3,022 March 31, 2021 Real estate: Commercial real estate 1 $ 1,206 $ 1,206 $ — $ — $ — 1-4 family residential 1 1,548 1,548 — — — Total 2 $ 2,754 $ 2,754 $ — $ — $ — Loan modifications related to a loan refinancing or restructuring other than a troubled debt restructuring are accounted for as a new loan if the terms provided to the borrower are at least as favorable to the Company as terms for comparable loans to other borrowers with similar collection risks that is not a loan refinancing or restructuring. If the loan refinancing or restructuring does not meet this condition or if only minor modifications are made to the original loan contract, it is not considered a new loan and is considered a renewal or modification of the original contract. Restructured or modified loans are not considered past due if they are performing under the terms of the modified or restructured payment schedule. A troubled debt restructuring is considered in default when a payment in accordance with the terms of the restructuring is more than 30 days past due. All loans restructured in a troubled debt restructuring are individually evaluated based on the underlying collateral for the determination of an ACL. There were no troubled debt restructurings with payment defaults during the twelve months ended March 31, 2022 and troubled debt restructuring during the twelve months ended March 31, 2021 with payment defaults were as follows: March 31, 2021 Number (Dollars in thousands) of Loans Balance Commercial and industrial 5 $ 7,904 Real estate: Commercial real estate 4 8,114 Construction and development 3 11,882 1-4 family residential 2 102 Total 14 $ 28,002 At March 31, 2022 and December 31, 2021, the Company had an outstanding commitment to fund $5.7 million and $2.5 million, respectively, for loans that were previously restructured. Loans individually evaluated for credit losses were as follows for the dates indicated below: Troubled Debt Restructurings Total Loans (Dollars in thousands) Accruing Non-Accrual Total Other Non-Accrual Other Accruing Individually Evaluated March 31, 2022 Commercial and industrial $ 6,606 $ 8,700 $ 15,306 $ 65 $ 1,081 $ 16,452 Real estate: Commercial real estate 5,863 11,258 17,121 105 2,040 19,266 Construction and development 12,261 — 12,261 140 292 12,693 1-4 family residential 1,547 1,724 3,271 53 — 3,324 Consumer — 38 38 — 81 119 Other 2,151 — 2,151 — — 2,151 Total $ 28,428 $ 21,720 $ 50,148 $ 363 $ 3,494 $ 54,005 December 31, 2021 Commercial and industrial $ 5,661 $ 6,851 $ 12,512 $ 2,239 $ 1,828 $ 16,579 Real estate: Commercial real estate 5,755 11,401 17,156 111 3,790 21,057 Construction and development 12,282 — 12,282 142 292 12,716 1-4 family residential 1,571 1,727 3,298 57 — 3,355 Consumer — 40 40 — 85 125 Other 5,440 — 5,440 — — 5,440 Total $ 30,709 $ 20,019 $ 50,728 $ 2,549 $ 5,995 $ 59,272

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
ALLOWANCE FOR CREDIT LOSSES	Mar. 31, 2022
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES	NOTE 6: ALLOWANCE FOR CREDIT LOSSES The Company primarily manages credit quality and credit risk associated with its loan portfolio based on the risk grading assigned to each individual loan within the loan class. Each loan class is a grouping of loan receivables within the portfolio based on risk characteristics and the method for monitoring and assessing the associated credit risks. 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 individual evaluation, approve specific reserves. Pass Special Mention Substandard Doubtful Loss The Company had no loans graded loss or doubtful at March 31, 2022 or December 31, 2021. At March 31, 2022 and December 31, 2021, the ratio of the ACL for loans to loans excluding loans held for sale was 1.09% and 1.09%, respectively. The ACL increased from $31.3 million at December 31, 2021 to $31.4 million at March 31, 2022, The total of the Company’s qualitative and quantitative factors ranged from 0.63% to 2.04% and 0.62% to 2.08% at March 31, 2022 and December 31, 2021, respectively. All factors are reassessed at the end of each 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. The ACL at March 31, 2022, reflects the Company’s assessment based on the information available at that time. Loans by risk grades, loan class and vintage, at March 31, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 44,587 $ 176,013 $ 45,558 $ 49,416 $ 18,908 $ 11,813 $ 228,831 $ 4,861 $ 579,987 Special mention — — — — 10 — 2,924 — 2,934 Substandard — — 999 2,905 6,538 367 2,289 4,971 18,069 Total commercial and industrial 44,587 176,013 46,557 52,321 25,456 12,180 234,044 9,832 600,990 Commercial real estate: Pass 177,416 221,547 196,087 188,977 115,515 129,496 54,617 13,666 1,097,321 Special mention — — — 848 — 31 — — 879 Substandard — 52 2,926 12,764 14,449 3,543 — 10,712 44,446 Total commercial real estate 177,416 221,599 199,013 202,589 129,964 133,070 54,617 24,378 1,142,646 Construction and development: Pass 39,508 208,277 89,540 36,188 6,638 15,647 64,276 91 460,165 Special mention — — 468 — — — — — 468 Substandard — — 292 — 1,500 10,901 — — 12,693 Total construction and development 39,508 208,277 90,300 36,188 8,138 26,548 64,276 91 473,326 1-4 family residential: Pass 16,917 109,806 21,599 14,350 25,034 65,027 5,320 193 258,246 Substandard — — 1,548 504 898 515 — 1,502 4,967 Total 1-4 family residential 16,917 109,806 23,147 14,854 25,932 65,542 5,320 1,695 263,213 Multi-family residential: Pass 2,274 18,557 18,145 6,420 57,240 175,895 568 — 279,099 Total multi-family residential 2,274 18,557 18,145 6,420 57,240 175,895 568 — 279,099 Consumer: Pass 2,171 4,993 3,348 986 556 207 15,059 691 28,011 Substandard — — 38 — — — 81 100 219 Total consumer 2,171 4,993 3,386 986 556 207 15,140 791 28,230 Agriculture: Pass 523 1,213 394 33 53 32 3,784 189 6,221 Substandard — — — — — 17 49 — 66 Total agriculture 523 1,213 394 33 53 49 3,833 189 6,287 Other: Pass 7,874 31,941 2,986 620 1,480 1,194 49,053 39 95,187 Total other 7,874 31,941 2,986 620 1,480 1,194 49,053 39 95,187 Total Pass 291,270 772,347 377,657 296,990 225,424 399,311 421,508 19,730 2,804,237 Special mention — — 468 848 10 31 2,924 — 4,281 Substandard — 52 5,803 16,173 23,385 15,343 2,419 17,285 80,460 Total gross loans $ 291,270 $ 772,399 $ 383,928 $ 314,011 $ 248,819 $ 414,685 $ 426,851 $ 37,015 $ 2,888,978 Loans by risk grades, loan class and vintage, at December 31, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 230,432 $ 53,744 $ 60,514 $ 21,059 $ 8,117 $ 5,533 $ 228,247 $ 5,773 $ 613,419 Special mention — — 290 15 — — 3,177 — 3,482 Substandard — 1,014 1,852 7,075 4 391 1,647 5,500 17,483 Total commercial and industrial 230,432 54,758 62,656 28,149 8,121 5,924 233,071 11,273 634,384 Commercial real estate: Pass 243,666 197,625 232,074 141,591 69,995 84,398 55,253 13,799 1,038,401 Special mention — — 859 7,934 — 62 — — 8,855 Substandard — 2,953 12,967 14,556 334 3,046 — 10,857 44,713 Total commercial real estate 243,666 200,578 245,900 164,081 70,329 87,506 55,253 24,656 1,091,969 Construction and development: Pass 197,900 99,420 54,017 7,127 16,133 142 72,698 96 447,533 Special mention — 470 — — — — — — 470 Substandard — 292 — 1,500 10,207 717 — — 12,716 Total construction and development 197,900 100,182 54,017 8,627 26,340 859 72,698 96 460,719 1-4 family residential: Pass 115,451 23,298 20,210 31,416 21,607 53,253 6,516 466 272,217 Substandard — 1,548 514 902 126 464 1,502 — 5,056 Total 1-4 family residential 115,451 24,846 20,724 32,318 21,733 53,717 8,018 466 277,273 Multi-family residential: Pass 16,744 18,236 6,473 58,750 9,784 167,033 9,376 — 286,396 Total multi-family residential 16,744 18,236 6,473 58,750 9,784 167,033 9,376 — 286,396 Consumer: Pass 6,427 3,637 1,199 714 277 11 14,921 679 27,865 Substandard — 40 — — — — 85 100 225 Total consumer 6,427 3,677 1,199 714 277 11 15,006 779 28,090 Agriculture: Pass 2,954 423 42 57 35 — 4,198 190 7,899 Substandard — — — — — 18 24 — 42 Total agriculture 2,954 423 42 57 35 18 4,222 190 7,941 Other: Pass 27,656 3,744 630 1,509 10 2,157 53,906 43 89,655 Total other 27,656 3,744 630 1,509 10 2,157 53,906 43 89,655 Total Pass 841,230 400,127 375,159 262,223 125,958 312,527 445,115 21,046 2,783,385 Special mention — 470 1,149 7,949 — 62 3,177 — 12,807 Substandard — 5,847 15,333 24,033 10,671 4,636 3,258 16,457 80,235 Total gross loans $ 841,230 $ 406,444 $ 391,641 $ 294,205 $ 136,629 $ 317,225 $ 451,550 $ 37,503 $ 2,876,427 Loans by risk grades and loan class as of the dates indicated below were as follows: (Dollars in thousands) Pass Special Mention Substandard Total Loans March 31, 2022 Commercial and industrial $ 579,987 $ 2,934 $ 18,069 $ 600,990 Real estate: Commercial real estate 1,097,321 879 44,446 1,142,646 Construction and development 460,165 468 12,693 473,326 1-4 family residential 258,246 — 4,967 263,213 Multi-family residential 279,099 — — 279,099 Consumer 28,011 — 219 28,230 Agriculture 6,221 — 66 6,287 Other 95,187 — — 95,187 Total gross loans $ 2,804,237 $ 4,281 $ 80,460 $ 2,888,978 December 31, 2021 Commercial and industrial $ 613,419 $ 3,482 $ 17,483 $ 634,384 Real estate: Commercial real estate 1,038,401 8,855 44,713 1,091,969 Construction and development 447,533 470 12,716 460,719 1-4 family residential 272,217 — 5,056 277,273 Multi-family residential 286,396 — — 286,396 Consumer 27,865 — 225 28,090 Agriculture 7,899 — 42 7,941 Other 89,655 — — 89,655 Total gross loans $ 2,783,385 $ 12,807 $ 80,235 $ 2,876,427 Loans individually evaluated and collectively evaluated as of the dates indicated below were as follows: March 31, 2022 December 31, 2021 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 16,452 $ 584,538 $ 600,990 $ 16,579 $ 617,805 $ 634,384 Real estate: Commercial real estate 19,266 1,123,380 1,142,646 21,057 1,070,912 1,091,969 Construction and development 12,693 460,633 473,326 12,716 448,003 460,719 1-4 family residential 3,324 259,889 263,213 3,355 273,918 277,273 Multi-family residential — 279,099 279,099 — 286,396 286,396 Consumer 119 28,111 28,230 125 27,965 28,090 Agriculture — 6,287 6,287 — 7,941 7,941 Other 2,151 93,036 95,187 5,440 84,215 89,655 Total gross loans $ 54,005 $ 2,834,973 $ 2,888,978 $ 59,272 $ 2,817,155 $ 2,876,427 The Company had collateral dependent loans totaling $1.5 million pending foreclosure at both March 31, 2022 and December 31, 2021. Activity in the ACL for loans, segregated by loan class for the three months ended March 31, 2022 and 2021, was as follows: Real Estate Commercial Construction and Commercial and 1-4 Family Multi-family (Dollars in thousands) Industrial Real Estate Development Residential Residential Consumer Agriculture Other Total March 31, 2022 Beginning balance $ 11,214 $ 11,015 $ 3,310 $ 2,105 $ 1,781 $ 406 $ 88 $ 1,426 $ 31,345 Provision (recapture) (383) 282 119 (81) (11) (5) (28) 127 20 Charge-offs — — — (2) — — — — (2) Recoveries 64 — — 3 — 2 10 — 79 Net recoveries 64 — — 1 — 2 10 — 77 Ending balance $ 10,895 $ 11,297 $ 3,429 $ 2,025 $ 1,770 $ 403 $ 70 $ 1,553 $ 31,442 Period-end amount allocated to: Specific reserve $ 3,686 $ 98 $ — $ — $ — $ 119 $ — $ — $ 3,903 General reserve 7,209 11,199 3,429 2,025 1,770 284 70 1,553 27,539 Total $ 10,895 $ 11,297 $ 3,429 $ 2,025 $ 1,770 $ 403 $ 70 $ 1,553 $ 31,442 March 31, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) 872 482 (644) (120) 201 (10) (72) (423) 286 Charge-offs (309) — — — — — — — (309) Recoveries 214 — — — — 4 42 — 260 Net (charge-offs) recoveries (95) — — — — 4 42 — (49) Ending balance $ 13,812 $ 14,280 $ 5,445 $ 2,458 $ 2,714 $ 434 $ 107 $ 1,624 $ 40,874 Period-end amount allocated to: Specific reserve $ 5,476 $ 274 $ — $ — $ — $ 6 $ — $ — $ 5,756 General reserve 8,336 14,006 5,445 2,458 2,714 428 107 1,624 35,118 Total $ 13,812 $ 14,280 $ 5,445 $ 2,458 $ 2,714 $ 434 $ 107 $ 1,624 $ 40,874 The ACL for loans by loan class as of the dates indicated was as follows: March 31, 2022 December 31, 2021 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 10,895 34.7 % $ 11,214 35.7 % Real estate: Commercial real estate 11,297 35.9 % 11,015 35.1 % Construction and development 3,429 10.9 % 3,310 10.6 % 1-4 family residential 2,025 6.4 % 2,105 6.7 % Multi-family residential 1,770 5.6 % 1,781 5.7 % Consumer 403 1.3 % 406 1.3 % Agriculture 70 0.3 % 88 0.3 % Other 1,553 4.9 % 1,426 4.6 % Total allowance for credit losses for loans $ 31,442 100.0 % $ 31,345 100.0 % Loans excluding loans held for sale 2,879,880 2,867,524 ACL for loans to loans excluding loans held for sale 1.09% 1.09% Allocation of a portion of the ACL to one class of loans above does not preclude its availability to absorb losses in other classes. Nonaccrual loans are included in individually evaluated loans and $16.7 million and $16.0 million of nonaccrual loans had no related ACL at March 31, 2022 and December 31, 2021, respectively. Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Recovery $ — $ — $ — $ — $ 12 $ 20 $ 32 $ — $ 64 Total commercial and industrial — — — — 12 20 32 — 64 1-4 family residential: Charge-off — — — — (2) — — — (2) Recovery — — — — — 3 — — 3 Total 1-4 family residential — — — — (2) 3 — — 1 Consumer: Recovery 1 — — 1 — — — — 2 Total consumer 1 — — 1 — — — — 2 Agriculture: Recovery — — — — — 10 — — 10 Total agriculture — — — — — 10 — — 10 Total: Charge-off — — — — (2) — — — (2) Recovery 1 — — 1 12 33 32 — 79 Total $ 1 $ — $ — $ 1 $ 10 $ 33 $ 32 $ — $ 77 Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ (191) $ (74) $ — $ — $ (44) $ — $ (309) Recovery — — 1 13 33 158 9 — 214 Total commercial and industrial — — (190) (61) 33 158 (35) — (95) Consumer: Recovery 3 — 1 — — — — — 4 Total consumer 3 — 1 — — — — — 4 Agriculture: Recovery — — — — — 42 — — 42 Total agriculture — — — — — 42 — — 42 Total: Charge-off — — (191) (74) — — (44) — (309) Recovery 3 — 2 13 33 200 9 — 260 Total $ 3 $ — $ (189) $ (61) $ 33 $ 200 $ (35) $ — $ (49) The Company has unfunded commitments, comprised of letters of credit and commitments to extend credit that are not unconditionally cancellable by the Company. See Note 16: Commitments and Contingencies and Financial Instruments with Off-Balance-Sheet Risk. Unfunded commitments have similar characteristics as loans and their ACL was determined using the model and methodology for loans noted above as well as historical and expected utilization levels. Activity in the ACL for unfunded commitments for the three months ended March 31, 2022 and 2021, was as follows: March 31, (Dollars in thousands) 2022 2021 Beginning balance $ 3,266 $ 4,177 Provision 415 126 Ending balance $ 3,681 $ 4,303

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	3 Months Ended
PREMISES AND EQUIPMENT	Mar. 31, 2022
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT	NOTE 7: PREMISES AND EQUIPMENT The components of premises and equipment as of the dates indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 62,227 64,298 Furniture and equipment 17,122 17,087 Vehicles 248 248 Construction in progress 496 496 95,577 97,613 Less accumulated depreciation (38,912) (39,196) Premises and equipment, net $ 56,665 $ 58,417 Depreciation expense was $840,000 and $863,000 for the three months ended March 31, 2022 and 2021, respectively. Depreciation expense is included in net occupancy expense in the Company’s condensed consolidated statements of income. During the three months ended March 31, 2022, the Company recorded a loss of $1.2 million, which is included in net gains on sales of assets in the condensed consolidated income statement, for disposals of buildings and improvements and furniture and equipment for a land lease that was terminated early at the request of the lessor.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Mar. 31, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at March 31, 2022 and December 31, 2021 and there were no changes in goodwill during the three months ended March 31, 2022 or the year ended December 31, 2021. Based on the results of the Company’s assessment, management does not believe any impairment of goodwill or other intangible assets existed at March 31, 2022 or December 31, 2021. Other intangibles as of the dates indicated below were as follows: Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2022 Core deposits 2.2 years $ 13,750 $ (13,582) $ 168 Customer relationships 6.8 years 6,629 (3,646) 2,983 Servicing assets 10.0 years 687 (298) 389 Total other intangible assets, net $ 21,066 $ (17,526) $ 3,540 December 31, 2021 Core deposits 2.4 years $ 13,750 $ (13,538) $ 212 Customer relationships 7.0 years 6,629 (3,535) 3,094 Servicing assets 11.5 years 624 (272) 352 Total other intangible assets, net $ 21,003 $ (17,345) $ 3,658 Servicing Assets Changes in servicing assets as of the dates indicated below were as follows: March 31, (Dollars in thousands) 2022 2021 Balance at beginning of year $ 352 $ 190 Increase from loan sales 63 11 Amortization (26) (13) Balance at end of period $ 389 $ 188

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	3 Months Ended
BANK OWNED LIFE INSURANCE	Mar. 31, 2022
BANK OWNED LIFE INSURANCE.
BANK OWNED LIFE INSURANCE	NOTE 9: BANK-OWNED LIFE INSURANCE Bank-owned life insurance policies and the net change in cash surrender value during the periods indicated below were as follows: March 31, (Dollars in thousands) 2022 2021 Balance at beginning of period $ 73,156 $ 72,338 Net change in cash surrender value 371 390 Balance at end of period $ 73,527 $ 72,728

DEPOSITS

DEPOSITS	3 Months Ended
DEPOSITS	Mar. 31, 2022
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Interest-bearing demand accounts $ 444,571 $ 468,361 Money market accounts 1,218,082 1,209,659 Savings accounts 130,218 127,031 Certificates and other time deposits, $100,000 or greater 127,798 134,775 Certificates and other time deposits, less than $100,000 99,233 106,477 Total interest-bearing deposits 2,019,902 2,046,303 Noninterest-bearing deposits 1,801,323 1,784,981 Total deposits $ 3,821,225 $ 3,831,284 At March 31, 2022 and December 31, 2021, the Company had $36.9 million and $37.3 million in deposits from public entities and brokered deposits of $46.4 million and $52.9 million, respectively. At March 31, 2022 and December 31, 2021, overdrafts of $322,000 and $402,000, respectively, were reclassified to loans. Accrued interest payable for deposits was $100,000 and $128,000 at March 31, 2022 and December 31, 2021, respectively, which was included in other liabilities in the condensed consolidated balance sheets. The Company had no major concentrations of deposits at March 31, 2022 or December 31, 2021 from any single or related groups of depositors. At March 31, 2022 and December 31, 2021, the Company had $65.8 million and $70.5 million, respectively, of certificates of deposits or other time deposits that were uninsured. Securities pledged and the letter of credit issued under the Company’s Federal Home Loan blanket lien arrangement which secure public deposits were not considered in determining the amount of uninsured time deposits.

LINES OF CREDIT

LINES OF CREDIT	3 Months Ended
LINES OF CREDIT	Mar. 31, 2022
LINES OF CREDIT
LINES OF CREDIT	NOTE 11: LINES OF CREDIT Line of Credit The Company has entered into a loan agreement with another financial institution, or Loan Agreement, which has been periodically amended and provides for a $30.0 million revolving line of credit. At March 31, 2022, there were no outstanding borrowings on this line of credit and the Company did not draw on this line of credit during 2022 or 2021. The Company can make draws on the line of credit for a period of 12 months, which began on December 13, 2021, after which the Company will not be permitted to make further draws and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a rate equal to the maximum “Latest” U.S. prime rate of interest per annum and payable quarterly in the first 12 months and thereafter, quarterly principal and interest payments are required over a term of 60 months. The entire outstanding balance and unpaid interest is payable in full on December 13, 2027. 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 $300.0 million, the Company maintaining a free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank Texas Ratio (as defined in the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at March 31, 2022. Additional Lines of Credit The Federal Home Loan Bank allows the Company to borrow on a blanket floating lien status collateralized by certain loans and the blanket lien amount was $1.1 billion at March 31, 2022 and $999.3 million at December 31, 2021. Federal Home Loan Bank advances outstanding totaled $50.0 million at both March 31, 2022 and December 31, 2021, and these borrowings mature as shown below. At both March 31, 2022 and December 31, 2021, there were $26.0 million letters of credit outstanding that were issued under this agreement and used as collateral to secure certain public deposits. After considering the outstanding advances and letters of credit, the net capacity available under the Federal Home Loan Bank facility was $1.0 billion at March 31, 2022 and $923.3 million at December 31, 2021. The Company has historically borrowed under this agreement on a short-term basis but did not during the three months ended March 31, 2022 and 2021. The weighted-average interest rate for Federal Home Loan Bank advances for the three months ended March 31, 2022 and 2021 was 1.79% and 1.79%, respectively. The scheduled maturities of Federal Home Loan Bank advances as of the date indicated below were as follows: (Dollars in thousands) March 31, 2022 2022 10,000 2023 20,000 2024 20,000 Total $ 50,000 At March 31, 2022 and December 31, 2021, the Company maintained federal funds lines of credit with commercial banks that provided for the availability to borrow up to an aggregate of $65.0 million. There were no funds under these lines of credit outstanding at March 31, 2022 or December 31, 2021.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Mar. 31, 2022
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	3 Months Ended
FAIR VALUE DISCLOSURES	Mar. 31, 2022
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 three months ended March 31, 2022 and the year ended December 31, 2021, 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 credit information and the security’s terms and conditions, among other things. The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies for reasonableness. Equity Securities Interest Rate Swaps Financial assets and financial liabilities measured at fair value on a recurring basis as of the dates indicated below were as follows: (Dollars in thousands) March 31, 2022 December 31, 2021 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,121 $ 1,173 Debt securities available for sale - U.S. Treasury securities 109,044 11,797 Level 2 inputs: Debt securities available for sale: State and municipal securities 155,774 172,600 U.S. agency securities: Callable debentures 2,807 2,973 Collateralized mortgage obligations 89,924 62,382 Mortgage-backed securities 189,309 174,121 Interest rate swaps 4,469 3,543 Level 3 inputs: Credit risk participation agreement 9 15 Total fair value of financial assets $ 552,457 $ 428,604 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 4,469 $ 3,543 Total fair value of financial liabilities $ 4,469 $ 3,543 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 individually evaluated loans and as of the dates indicated below were as follows: March 31, 2022 December 31, 2021 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs: Loans evaluated individually Commercial and industrial $ 9,188 $ 3,686 $ 5,502 $ 9,624 $ 3,986 $ 5,638 Commercial real estate 824 98 726 2,629 609 2,020 Consumer 119 119 — 125 125 — Total $ 10,131 $ 3,903 $ 6,228 $ 12,378 $ 4,720 $ 7,658 Non-Financial Assets and Non-Financial Liabilities Measured at Fair Value on a Non-recurring Basis The Company’s non-financial assets measured at fair value on a non-recurring basis for the periods reported are foreclosed assets (upon initial recognition or subsequent impairment). The Company’s other non-financial assets whose fair value may be measured on a non-recurring basis when there is evidence of impairment and may be subject to impairment adjustments include goodwill and intangible assets, among other assets. The fair value of foreclosed assets may be estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria less estimated selling costs. There were no write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure during the three months ended March 31, 2022 or during 2021. There were no outstanding foreclosed assets at March 31, 2022 or December 31, 2021. Financial Instruments Reported at Amortized Cost Fair market values and carrying amounts of financial instruments that are reported at cost as of the dates indicated below were as follows: March 31, 2022 December 31, 2021 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 770,991 $ 770,991 $ 950,146 $ 950,146 Level 2 inputs: Bank-owned life insurance 73,527 73,527 73,156 73,156 Accrued interest receivable 10,925 10,925 11,616 11,616 Servicing asset 389 389 352 352 Level 3 inputs: Loans, including held for sale, net 2,810,655 2,849,186 2,864,663 2,836,343 Other investments 17,101 17,101 17,727 17,727 Total financial assets $ 3,683,588 $ 3,722,119 $ 3,917,660 $ 3,889,340 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,801,323 $ 1,801,323 $ 1,784,981 $ 1,784,981 Level 2 inputs: Interest-bearing deposits 1,919,719 2,019,902 2,040,794 2,046,303 Federal Home Loan Bank advances 49,416 50,000 50,591 50,000 Accrued interest payable 174 174 201 201 Total financial liabilities $ 3,770,632 $ 3,871,399 $ 3,876,567 $ 3,881,485 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value and as such the fair values shown above are not necessarily indicative of the amounts the Company will realize. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Mar. 31, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 14: DERIVATIVE FINANCIAL INSTRUMENTS The Company has outstanding interest rate swap contracts with certain customers and equal and offsetting interest rate swaps with other financial institutions entered into at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk. The objective of the transactions is to allow customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Company agreed 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 Company agreed 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 Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and do not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At March 31, 2022 and December 31, 2021, management determined there was no such deterioration. At March 31, 2022 and December 31, 2021, the Company had 18 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 other noninterest income. Fair value amounts are included in other assets and other liabilities. The Company has a credit risk participation agreement with another financial institution that is associated with an interest rate swap related to a loan for which the Company is the lead agent bank and the other financial institution 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 indicated below were as follows: Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) March 31, 2022 Interest rate swaps with customers Other assets $ 31,514 $ 184 4.85 - 5.60% LIBOR 1M + 2.50% - 3.00% 4.34 Interest rate swaps with financial institutions Other assets 88,755 4,203 3.25% - 5.15% LIBOR 1M + 2.50% - 3.00% 5.41 Interest rate swaps with customers Other assets 5,113 82 4.99% U.S. Prime 5.71 Interest rate swaps with financial institutions Other liabilities 5,113 (82) 4.99% U.S. Prime 5.71 Interest rate swaps with financial institutions Other liabilities 31,514 (184) 4.85 - 5.60% LIBOR 1M + 2.50% - 3.00% 4.34 Interest rate swaps with customers Other liabilities 88,755 (4,203) 3.25% - 5.15% LIBOR 1M + 2.50% 5.41 Credit risk participation agreement with financial institution Other assets 13,433 9 3.50% LIBOR 1M + 2.50% 7.99 Total derivatives $ 264,197 $ 9 December 31, 2021 Interest rate swaps with customers Other assets $ 56,440 $ 2,474 4.00% - 5.60% LIBOR 1M + 2.50% - 3.00% 5.10 Interest rate swaps with financial institutions Other assets 66,650 875 3.25% - 3.50% LIBOR 1M + 2.50% 5.59 Interest rate swaps with customers Other assets 5,141 194 4.99% U.S. Prime 5.96 Interest rate swaps with financial institutions Other liabilities 5,141 (194) 4.99% U.S. Prime 5.96 Interest rate swaps with financial institutions Other liabilities 56,440 (2,474) 4.00% - 5.60% LIBOR 1M + 2.50% - 3.00% 5.10 Interest rate swaps with customers Other liabilities 66,650 (875) 3.25% - 3.50% LIBOR 1M + 2.50% 5.59 Credit risk participation agreement with financial institution Other assets 13,563 15 3.50% LIBOR 1M + 2.50% 8.24 Total derivatives $ 270,025 $ 15

OPERATING LEASES

OPERATING LEASES	3 Months Ended
OPERATING LEASES	Mar. 31, 2022
OPERATING LEASES
OPERATING LEASES	NOTE 15: OPERATING LEASES The Company leases certain office space, stand-alone buildings and land, which are recognized as operating lease right-of-use assets in the consolidated balance sheets and operating lease liabilities in the consolidated balance sheets represent the Company’s liability to make lease payments under these operating leases, on a discounted basis. The Company excludes short-term leases, defined as lease terms of 12 months or less from its operating lease right-of-use assets and operating lease liabilities. Lease costs for the periods indicated below were as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 427 $ 485 Short-term lease cost 4 4 Sublease income (157) (161) Total lease cost $ 274 $ 328 Other information related to operating leases for the periods indicated below was as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Amortization of lease right-to-use asset $ 341 $ 385 Accretion of lease liabilities 86 100 Cash paid for amounts included in the measurement of lease liabilities 476 487 Weighted-average remaining lease term in years 10.4 10.7 Weighted-average discount rate 2.65% 2.64% A maturity analysis of operating lease liabilities as of the date indicated below was as follows: (Dollars in thousands) March 31, 2022 1 year or less $ 1,835 Over 1 year through 2 years 1,970 Over 2 years through 3 years 1,805 Over 3 years through 4 years 1,807 Over 4 years through 5 years 1,695 Thereafter 7,212 Total undiscounted lease liability 16,324 Less: Discount on cash flows (2,572) Total operating lease liability $ 13,752 During the three months ended March 31, 2022, the Company terminated a land lease at the request of the lessor. The Company received a payment of $1.5 million from the lessor for the early termination of the lease, which is reflected in other noninterest income in the condensed consolidated income statements.

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	3 Months Ended
	Mar. 31, 2022
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 - - Financial Instruments with Off-Balance-Sheet Risk The Company enters into commitments to extend credit and standby letters of credit to meet customer financing needs and, in accordance with GAAP, these commitments are not reflected as liabilities in the consolidated balance sheets. Due to the nature of these commitments, the amounts disclosed in the tables below do not necessarily represent future cash requirements. Commitments to extend credit and standby letters of credit as of the dates indicated below were as follows: March 31, December 31, (Dollars in thousands) March 31, 2022 December 31, 2021 Commitments to extend credit, variable interest rate $ 810,482 $ 714,084 Commitments to extend credit, fixed interest rate 96,610 60,876 Total commitments $ 907,092 $ 774,960 Standby letters of credit $ 16,972 $ 18,109 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, generally have fixed expiration dates or other termination clauses and may expire without being fully drawn upon. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to the Company’s customers. Litigation The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Company, it is the opinion of management that the disposition or ultimate determination of such claims and lawsuits will not have a material adverse effect on the financial position or results of operations of the Company.

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	3 Months Ended
	Mar. 31, 2022
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS	NOTE 17: EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS Employee Benefit Plans The Company maintains a 401(k) employee benefit plan and substantially all employees that complete three months of service may participate. The Company matches a portion of each employee’s contribution and may, at its discretion, make additional contributions. During the three months ended March 31, 2022 and 2021, the Company contributed $804,000 and $726,000 to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one-fourth Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and Chief Executive Officer, or 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 $130,000 and $153,000 at March 31, 2022 and December 31, 2021, 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 $962,000 and $900,000 at March 31, 2022 and December 31, 2021, respectively, which is included in other liabilities in the condensed consolidated balance sheets. The liability will continue to accrue over the remaining period until payments commence such that the accrued amount at the eligibility date will equal the present value of all the future benefits expected to be paid.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Mar. 31, 2022
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, or the 2006 Plan. At the merger date, all outstanding options under this plan became fully vested and exercisable. The plan expired in 2016 and no additional options may be granted under its terms. As of March 31, 2022, there were options outstanding to acquire 35,560 shares of the Company’s common stock under the 2006 Plan, all of which will expire in 2022 if not exercised. In 2014, the Company adopted the 2014 Stock Option Plan, or the 2014 Plan, which 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 2017, the Company adopted the 2017 Omnibus Incentive Plan, or the 2017 Plan. The 2017 Plan authorizes the Company to grant options, 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. As of March 31, 2022, 243,138 shares were available for future grant under the 2017 Plan. Stock option activity for the periods indicated below was as follows: Three Months Ended March 31, 2022 2021 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 191,560 $ 17.53 201,720 $ 17.22 Granted — — — — Exercised — — — — Forfeited/expired — — — — Outstanding at end of period 191,560 $ 17.53 201,720 $ 17.22 A summary of stock options as of the date indicated below was as follows: March 31, 2022 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 175,561 15,999 191,560 Weighted-average exercise price per share $ 17.22 $ 21.00 $ 17.53 Aggregate intrinsic value (in thousands) $ 2,420 160 2,580 Weighted-average remaining contractual term (years) 3.4 5.3 3.5 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. Restricted stock activity for the periods indicated 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, 2020 129,667 $ 28.22 2,250 $ 34.40 Granted 33,285 26.32 — — Vested (13,369) 30.72 — — Forfeited — — — — Outstanding at March 31, 2021 149,583 27.58 2,250 34.40 Outstanding at December 31, 2021 83,563 27.85 2,250 34.40 Granted 38,457 29.42 — — Vested (18,342) 29.39 — — Forfeited (1,703) 33.63 — — Outstanding at March 31, 2022 101,975 28.07 2,250 34.40 A summary of restricted stock as of the date indicated below was as follows: March 31, 2022 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 101,975 2,250 Weighted-average grant date fair value per share $ 28.07 $ 34.40 Aggregate fair value (in thousands) $ 3,161 $ 70 Weighted-average remaining vesting period (years) 1.5 1.5 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. The shares of stock subject to options exercised, restricted stock vested, shares withheld and shares issued for the periods indicated below were as follows: Exercised/Vested Shares Withheld Shares Issued Three Months Ended March 31, 2022 Non-performance based restricted stock 18,342 (3,892) 14,450 Three Months Ended March 31, 2021 Non-performance based restricted stock 13,369 (2,642) 10,727 For the three months ended March 31, 2022 and 2021, stock compensation expense was $483,000 and $541,000, respectively. As of March 31, 2022, there was approximately $2.2 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 1.5 years.

REGULATORY MATTERS

REGULATORY MATTERS	3 Months Ended
REGULATORY MATTERS	Mar. 31, 2022
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 19: REGULATORY MATTERS Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Company and the Bank’s Common Equity Tier 1 capital includes common stock and related capital surplus, net of treasury stock, and retained earnings. In connection with the adoption of the Basel III Capital Rules, the Company and the Bank elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for both the Company and the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. The Basel III Capital Rules require the Company and the Bank to maintain: (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0%); (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio, effectively resulting in a minimum Tier 1 capital ratio of 8.5%); (iii) a minimum ratio of total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio, effectively resulting in a minimum total capital ratio of 10.5%); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company and the Bank. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. In November 2019, the federal bank regulatory 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. 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. A qualifying community banking organization that elects to use the Framework and that maintains a Tier 1 capital-to-adjusted total assets ratio, or leverage capital ratio, of greater than 9.0% is considered to have satisfied the generally applicable risk-based and leverage capital requirements under the Basel III Capital Rules and, if applicable, is considered to have met the “well capitalized” ratio requirements for purposes of its primary federal regulator’s prompt corrective action rules. 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 year ended December 31, 2020. In April 2020, the federal bank regulatory agencies announced two interim final rules to provide relief associated with Section 4012 of the Coronavirus Aid Relief and Economic Security Act, or CARES Act. For institutions that elect the Framework, the interim rules temporarily lowered 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 and greater than 9.0% thereafter. 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 federal bank regulatory agencies finalized an interim final rule that allows banking organizations to mitigate the effects of CECL on their regulatory capital computations. The rule permitted banking organizations that were required to adopt CECL for purposes of GAAP (as in effect January 1, 2021) for a fiscal year beginning 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 each reporting period thereafter in its regulatory capital calculation and ratios. The Company is subject to the regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and, for the Bank, those administered by the Office of Comptroller of Currency, or OCC. Regulatory authorities can initiate certain mandatory actions if the Company or the Bank fail to meet the minimum capital requirements, which could have a direct material effect on the Company’s financial statements. Management believes, as of March 31, 2022 and December 31, 2021, that the Company and the Bank met all capital adequacy requirements to which they were subject. On June 18, 2021, the Bank and the OCC entered into a formal agreement, or the Formal Agreement, with regard to Bank Secrecy Act, or BSA, and anti-money laundering, or AML, compliance matters. On September 7, 2021, the OCC terminated the Formal Agreement, dated June 18, 2021 between the Bank and the OCC relating to the Bank’s BSA/AML compliance program. To resolve the BSA/AML compliance matters, on December 16, 2021, the Bank, entered into an OCC Consent Order. Under the OCC Consent Order, the Bank paid a civil money penalty of $1.0 million. On December 15, 2021, the Bank entered into a FinCEN Consent Order. Under the terms of the FinCEN Consent Order, the Bank paid a civil money penalty of $8.0 million; provided, however, that FinCEN agreed to credit the Bank the $1.0 million civil money penalty imposed by the OCC described above. As a result, the Bank paid an aggregate sum of $8.0 million, which is included in Regulatory fees in the consolidated statements of income, under the OCC Consent Order and the FinCEN Consent Order. The OCC Consent Order and the FinCEN Consent Order each settled the civil money proceedings against the Bank initiated by the OCC and FinCEN. At March 31, 2022 and December 31, 2021, the Company and the Bank were “well capitalized” based on the ratios presented below. Actual and required capital ratios for the Company and the Bank were as follows for the dates presented: Minimum Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2022 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 483,115 14.97% $ 225,939 7.00% N/A N/A Bank Only $ 456,183 14.13% $ 225,917 7.00% $ 209,780 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 483,115 14.97% $ 274,354 8.50% N/A N/A Bank Only $ 456,183 14.13% $ 274,328 8.50% $ 258,191 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 518,239 16.06% $ 338,908 10.50% N/A N/A Bank Only $ 491,307 15.22% $ 338,876 10.50% $ 322,739 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 483,115 11.08% $ 174,353 4.00% N/A N/A Bank Only $ 456,183 10.47% $ 174,248 4.00% $ 217,810 5.00% December 31, 2021 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 475,154 15.31% $ 217,300 7.00% N/A N/A Bank Only $ 447,819 14.43% $ 217,270 7.00% $ 201,757 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 475,154 15.31% $ 263,864 8.50% N/A N/A Bank Only $ 447,819 14.43% $ 263,836 8.50% $ 248,316 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 509,766 16.42% $ 325,950 10.50% N/A N/A Bank Only $ 482,431 15.54% $ 325,915 10.50% $ 310,395 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 475,154 11.22% $ 169,470 4.00% N/A N/A Bank Only $ 447,819 10.58% $ 169,381 4.00% $ 211,726 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	3 Months Ended
INCOME TAXES	Mar. 31, 2022
INCOME TAXES
INCOME TAXES	NOTE 20: INCOME TAXES The provision for income tax expense and effective tax rates for the periods indicated below were as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Income tax expense $ 2,277 $ 2,485 Effective tax rate 17.69% 19.87% 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, bank-owned life insurance related earnings and merger-related costs.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
EARNINGS PER SHARE	Mar. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 21: EARNINGS PER SHARE The computation of basic and diluted earnings per share for the periods indicated below was as follows: Three Months Ended March 31, (Dollars in thousands, except per share data) 2022 2021 Net income for common shareholders $ 10,595 $ 10,019 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,497 24,508 Dilutive effect of outstanding stock options and unvested restricted stock awards 108 108 Diluted weighted-average shares outstanding 24,605 24,616 Earnings per share: Basic $ 0.43 $ 0.41 Diluted $ 0.43 $ 0.41 For the three months ended March 31, 2022 and 2021, the Company excluded the impact of 32,998 and 1,800 shares of unvested restricted stock, respectively, from diluted weighted-average shares as they were anti-dilutive. The Company also excluded the impact of 2,250 shares of performance based restricted stock awards for the three months ended March 31, 2022 and 2021 as they are contingently issuable and the performance conditions for these awards have not been met.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2022 and December 31, 2021 and consolidated results of operations, consolidated shareholders’ equity and consolidated cash flows for the three months ended March 31, 2022 and 2021. 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, 2021 included within the Company’s Annual Report on Form 10-K.
Share Repurchase Program	Share Repurchase Program
Accounting Standards Recently Adopted	Accounting Standards Not Yet Adopted
Cash Flow Reporting	Supplemental disclosures of cash flow information were as follows for the periods indicated below: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,413 $ 1,688 Supplemental disclosures of non-cash flow information: Change in liability for dividends accrued 115 (727) Repossessed real estate and other assets — 106

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Three Months Ended March 31, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,413 $ 1,688 Supplemental disclosures of non-cash flow information: Change in liability for dividends accrued 115 (727) Repossessed real estate and other assets — 106

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
SECURITIES (Tables)	Mar. 31, 2022
SECURITIES.
Amortized cost and estimated fair values of investments in securities	Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2022 Debt securities available for sale: State and municipal securities $ 171,658 $ 488 $ (16,372) $ 155,774 U.S. Treasury securities 110,597 — (1,553) 109,044 U.S. agency securities: Callable debentures 3,000 — (193) 2,807 Collateralized mortgage obligations 94,876 2 (4,954) 89,924 Mortgage-backed securities 201,184 258 (12,133) 189,309 Equity securities 1,193 — (72) 1,121 Total $ 582,508 $ 748 $ (35,277) $ 547,979 December 31, 2021 Debt securities available for sale: State and municipal securities $ 168,541 $ 4,451 $ (392) $ 172,600 U.S. Treasury securities 11,888 — (91) 11,797 U.S. agency securities: Callable debentures 3,000 — (27) 2,973 Collateralized mortgage obligations 63,129 115 (862) 62,382 Mortgage-backed securities 173,446 1,805 (1,130) 174,121 Equity securities 1,189 — (16) 1,173 Total $ 421,193 $ 6,371 $ (2,518) $ 425,046
Amortized cost and estimated fair value of securities by contractual maturities	(Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total March 31, 2022 Amortized cost: Debt securities available for sale: State and municipal securities $ — $ 507 $ 15,874 $ 155,277 $ 171,658 U.S. Treasury securities 10,129 94,708 5,760 — 110,597 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 3,834 91,042 94,876 Mortgage-backed securities — 851 13,835 186,498 201,184 Equity securities 1,193 — — — 1,193 Total $ 11,322 $ 96,066 $ 42,303 $ 432,817 $ 582,508 Fair value: Debt securities available for sale: State and municipal securities $ — $ 508 $ 15,646 $ 139,620 $ 155,774 U.S. Treasury securities 10,076 93,567 5,401 — 109,044 U.S. agency securities: Callable debentures — — 2,807 — 2,807 Collateralized mortgage obligations — — 3,815 86,109 89,924 Mortgage-backed securities — 869 13,823 174,617 189,309 Equity securities 1,121 — — — 1,121 Total $ 11,197 $ 94,944 $ 41,492 $ 400,346 $ 547,979 (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total December 31, 2021 Amortized cost: Debt securities available for sale: State and municipal securities $ 881 $ — $ 12,339 $ 155,321 $ 168,541 U.S. Treasury securities — 6,138 5,750 — 11,888 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 4,528 58,601 63,129 Mortgage-backed securities — 953 4,056 168,437 173,446 Equity securities 1,189 — — — 1,189 Total $ 2,070 $ 7,091 $ 29,673 $ 382,359 $ 421,193 Fair value: Debt securities available for sale: State and municipal securities $ 883 $ — $ 12,905 $ 158,812 $ 172,600 U.S. Treasury securities — 6,072 5,725 — 11,797 U.S. agency securities: Callable debentures — — 2,973 — 2,973 Collateralized mortgage obligations — — 4,591 57,791 62,382 Mortgage-backed securities — 994 4,166 168,961 174,121 Equity securities 1,173 — — — 1,173 Total $ 2,056 $ 7,066 $ 30,360 $ 385,564 $ 425,046
Securities with unrealized losses, aggregated by category and length of time	Less than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses March 31, 2022 Debt securities available for sale: State and municipal securities $ 117,448 $ (15,734) $ 3,269 $ (638) U.S. Treasury securities 109,044 (1,553) — — U.S. agency securities: Callable debentures 2,807 (193) — — Collateralized mortgage obligations 77,644 (3,692) 11,189 (1,262) Mortgage-backed securities 149,009 (9,777) 19,934 (2,356) Equity securities 1,121 (72) — — $ 457,073 $ (31,021) $ 34,392 $ (4,256) December 31, 2021 Debt securities available for sale: State and municipal securities $ 36,962 $ (387) $ 257 $ (5) U.S. Treasury securities 11,797 (91) — — U.S. agency securities: Callable debentures 2,973 (27) — — Collateralized mortgage obligations 40,776 (860) 241 (2) Mortgage-backed securities 87,220 (1,130) — — Equity securities 1,173 (16) — — $ 180,901 $ (2,511) $ 498 $ (7)

EQUITY INVESTMENTS (Tables)

EQUITY INVESTMENTS (Tables)	3 Months Ended
EQUITY INVESTMENTS (Tables)	Mar. 31, 2022
EQUITY INVESTMENTS
Unconsolidated investments considered equity securities	(Dollars in thousands) March 31, 2022 December 31, 2021 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,973 3,967 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,716 4,348 $ 17,101 $ 17,727

LOANS (Tables)

LOANS (Tables)	3 Months Ended
LOANS (Tables)	Mar. 31, 2022
LOANS
Loans, by loan class	(Dollars in thousands) March 31, 2022 December 31, 2021 Commercial and industrial $ 600,990 20.8% $ 634,384 22.0% Real estate: Commercial real estate 1,142,646 39.5% 1,091,969 38.0% Construction and development 473,326 16.4% 460,719 16.0% 1-4 family residential 263,213 9.1% 277,273 9.6% Multi-family residential 279,099 9.7% 286,396 10.0% Consumer 28,230 1.0% 28,090 1.0% Agriculture 6,287 0.2% 7,941 0.3% Other 95,187 3.3% 89,655 3.1% Total gross loans 2,888,978 100.0% 2,876,427 100.0% Less allowance for credit losses for loans (31,442) (31,345) Less deferred loan fees and unearned discounts (8,350) (8,739) Less loans held for sale (748) (164) Loans, net $ 2,848,438 $ 2,836,179
Loan participations purchased and sold	Participations Participations (Dollars in thousands) Purchased Sold March 31, 2022 Commercial and industrial $ 15,844 $ 1,943 Commercial real estate 17,955 1,247 Construction and development — — Other 1,806 — $ 35,605 $ 3,190

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	3 Months Ended
LOAN PERFORMANCE (Tables)	Mar. 31, 2022
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 March 31, 2022 Commercial and industrial $ 3,517 $ 498 $ — $ 4,015 $ 596,975 $ 600,990 $ — Real estate: Commercial real estate 9,941 — — 9,941 1,132,705 1,142,646 — Construction and development — — 140 140 473,186 473,326 — 1-4 family residential 145 1,534 — 1,679 261,534 263,213 — Multi-family residential — — — — 279,099 279,099 — Consumer — — — — 28,230 28,230 — Agriculture — — — — 6,287 6,287 — Other — — — — 95,187 95,187 — Total gross loans $ 13,603 $ 2,032 $ 140 $ 15,775 $ 2,873,203 $ 2,888,978 $ — December 31, 2021 Commercial and industrial $ 14 $ — $ — $ 14 $ 634,370 $ 634,384 $ — Real estate: Commercial real estate 650 — 55 705 1,091,264 1,091,969 — Construction and development — — 142 142 460,577 460,719 — 1-4 family residential 150 34 — 184 277,089 277,273 — Multi-family residential — — — — 286,396 286,396 — Consumer 50 — — 50 28,040 28,090 — Agriculture — — — — 7,941 7,941 — Other 41 — — 41 89,614 89,655 — Total gross loans $ 905 $ 34 $ 197 $ 1,136 $ 2,875,291 $ 2,876,427 $ —
Nonaccrual loans, segregated by loan class	(Dollars in thousands) March 31, 2022 December 31, 2021 Commercial and industrial $ 8,765 $ 9,090 Real estate: Commercial real estate 11,363 11,512 Construction and development 140 142 1-4 family residential 1,777 1,784 Consumer 38 40 Total nonaccrual loans $ 22,083 $ 22,568
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 March 31, 2022 Commercial and industrial 7 $ 3,870 $ 1,093 $ — $ — $ 2,777 Real estate: Commercial real estate 1 234 — — — 245 Total 8 $ 4,104 $ 1,093 $ — $ — $ 3,022 March 31, 2021 Real estate: Commercial real estate 1 $ 1,206 $ 1,206 $ — $ — $ — 1-4 family residential 1 1,548 1,548 — — — Total 2 $ 2,754 $ 2,754 $ — $ — $ —
Outstanding TDRs and other loans individually evaluated for credit losses	Troubled Debt Restructurings Total Loans (Dollars in thousands) Accruing Non-Accrual Total Other Non-Accrual Other Accruing Individually Evaluated March 31, 2022 Commercial and industrial $ 6,606 $ 8,700 $ 15,306 $ 65 $ 1,081 $ 16,452 Real estate: Commercial real estate 5,863 11,258 17,121 105 2,040 19,266 Construction and development 12,261 — 12,261 140 292 12,693 1-4 family residential 1,547 1,724 3,271 53 — 3,324 Consumer — 38 38 — 81 119 Other 2,151 — 2,151 — — 2,151 Total $ 28,428 $ 21,720 $ 50,148 $ 363 $ 3,494 $ 54,005 December 31, 2021 Commercial and industrial $ 5,661 $ 6,851 $ 12,512 $ 2,239 $ 1,828 $ 16,579 Real estate: Commercial real estate 5,755 11,401 17,156 111 3,790 21,057 Construction and development 12,282 — 12,282 142 292 12,716 1-4 family residential 1,571 1,727 3,298 57 — 3,355 Consumer — 40 40 — 85 125 Other 5,440 — 5,440 — — 5,440 Total $ 30,709 $ 20,019 $ 50,728 $ 2,549 $ 5,995 $ 59,272
TDRs with payment defaults after restructuring
Schedule of TDRs	March 31, 2021 Number (Dollars in thousands) of Loans Balance Commercial and industrial 5 $ 7,904 Real estate: Commercial real estate 4 8,114 Construction and development 3 11,882 1-4 family residential 2 102 Total 14 $ 28,002

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Tables)	Mar. 31, 2022
ALLOWANCE FOR CREDIT LOSSES
Loans by risk grades, loan class and vintage	Loans by risk grades, loan class and vintage, at March 31, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 44,587 $ 176,013 $ 45,558 $ 49,416 $ 18,908 $ 11,813 $ 228,831 $ 4,861 $ 579,987 Special mention — — — — 10 — 2,924 — 2,934 Substandard — — 999 2,905 6,538 367 2,289 4,971 18,069 Total commercial and industrial 44,587 176,013 46,557 52,321 25,456 12,180 234,044 9,832 600,990 Commercial real estate: Pass 177,416 221,547 196,087 188,977 115,515 129,496 54,617 13,666 1,097,321 Special mention — — — 848 — 31 — — 879 Substandard — 52 2,926 12,764 14,449 3,543 — 10,712 44,446 Total commercial real estate 177,416 221,599 199,013 202,589 129,964 133,070 54,617 24,378 1,142,646 Construction and development: Pass 39,508 208,277 89,540 36,188 6,638 15,647 64,276 91 460,165 Special mention — — 468 — — — — — 468 Substandard — — 292 — 1,500 10,901 — — 12,693 Total construction and development 39,508 208,277 90,300 36,188 8,138 26,548 64,276 91 473,326 1-4 family residential: Pass 16,917 109,806 21,599 14,350 25,034 65,027 5,320 193 258,246 Substandard — — 1,548 504 898 515 — 1,502 4,967 Total 1-4 family residential 16,917 109,806 23,147 14,854 25,932 65,542 5,320 1,695 263,213 Multi-family residential: Pass 2,274 18,557 18,145 6,420 57,240 175,895 568 — 279,099 Total multi-family residential 2,274 18,557 18,145 6,420 57,240 175,895 568 — 279,099 Consumer: Pass 2,171 4,993 3,348 986 556 207 15,059 691 28,011 Substandard — — 38 — — — 81 100 219 Total consumer 2,171 4,993 3,386 986 556 207 15,140 791 28,230 Agriculture: Pass 523 1,213 394 33 53 32 3,784 189 6,221 Substandard — — — — — 17 49 — 66 Total agriculture 523 1,213 394 33 53 49 3,833 189 6,287 Other: Pass 7,874 31,941 2,986 620 1,480 1,194 49,053 39 95,187 Total other 7,874 31,941 2,986 620 1,480 1,194 49,053 39 95,187 Total Pass 291,270 772,347 377,657 296,990 225,424 399,311 421,508 19,730 2,804,237 Special mention — — 468 848 10 31 2,924 — 4,281 Substandard — 52 5,803 16,173 23,385 15,343 2,419 17,285 80,460 Total gross loans $ 291,270 $ 772,399 $ 383,928 $ 314,011 $ 248,819 $ 414,685 $ 426,851 $ 37,015 $ 2,888,978 Loans by risk grades, loan class and vintage, at December 31, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 230,432 $ 53,744 $ 60,514 $ 21,059 $ 8,117 $ 5,533 $ 228,247 $ 5,773 $ 613,419 Special mention — — 290 15 — — 3,177 — 3,482 Substandard — 1,014 1,852 7,075 4 391 1,647 5,500 17,483 Total commercial and industrial 230,432 54,758 62,656 28,149 8,121 5,924 233,071 11,273 634,384 Commercial real estate: Pass 243,666 197,625 232,074 141,591 69,995 84,398 55,253 13,799 1,038,401 Special mention — — 859 7,934 — 62 — — 8,855 Substandard — 2,953 12,967 14,556 334 3,046 — 10,857 44,713 Total commercial real estate 243,666 200,578 245,900 164,081 70,329 87,506 55,253 24,656 1,091,969 Construction and development: Pass 197,900 99,420 54,017 7,127 16,133 142 72,698 96 447,533 Special mention — 470 — — — — — — 470 Substandard — 292 — 1,500 10,207 717 — — 12,716 Total construction and development 197,900 100,182 54,017 8,627 26,340 859 72,698 96 460,719 1-4 family residential: Pass 115,451 23,298 20,210 31,416 21,607 53,253 6,516 466 272,217 Substandard — 1,548 514 902 126 464 1,502 — 5,056 Total 1-4 family residential 115,451 24,846 20,724 32,318 21,733 53,717 8,018 466 277,273 Multi-family residential: Pass 16,744 18,236 6,473 58,750 9,784 167,033 9,376 — 286,396 Total multi-family residential 16,744 18,236 6,473 58,750 9,784 167,033 9,376 — 286,396 Consumer: Pass 6,427 3,637 1,199 714 277 11 14,921 679 27,865 Substandard — 40 — — — — 85 100 225 Total consumer 6,427 3,677 1,199 714 277 11 15,006 779 28,090 Agriculture: Pass 2,954 423 42 57 35 — 4,198 190 7,899 Substandard — — — — — 18 24 — 42 Total agriculture 2,954 423 42 57 35 18 4,222 190 7,941 Other: Pass 27,656 3,744 630 1,509 10 2,157 53,906 43 89,655 Total other 27,656 3,744 630 1,509 10 2,157 53,906 43 89,655 Total Pass 841,230 400,127 375,159 262,223 125,958 312,527 445,115 21,046 2,783,385 Special mention — 470 1,149 7,949 — 62 3,177 — 12,807 Substandard — 5,847 15,333 24,033 10,671 4,636 3,258 16,457 80,235 Total gross loans $ 841,230 $ 406,444 $ 391,641 $ 294,205 $ 136,629 $ 317,225 $ 451,550 $ 37,503 $ 2,876,427
Loans by risk grades and loan class	(Dollars in thousands) Pass Special Mention Substandard Total Loans March 31, 2022 Commercial and industrial $ 579,987 $ 2,934 $ 18,069 $ 600,990 Real estate: Commercial real estate 1,097,321 879 44,446 1,142,646 Construction and development 460,165 468 12,693 473,326 1-4 family residential 258,246 — 4,967 263,213 Multi-family residential 279,099 — — 279,099 Consumer 28,011 — 219 28,230 Agriculture 6,221 — 66 6,287 Other 95,187 — — 95,187 Total gross loans $ 2,804,237 $ 4,281 $ 80,460 $ 2,888,978 December 31, 2021 Commercial and industrial $ 613,419 $ 3,482 $ 17,483 $ 634,384 Real estate: Commercial real estate 1,038,401 8,855 44,713 1,091,969 Construction and development 447,533 470 12,716 460,719 1-4 family residential 272,217 — 5,056 277,273 Multi-family residential 286,396 — — 286,396 Consumer 27,865 — 225 28,090 Agriculture 7,899 — 42 7,941 Other 89,655 — — 89,655 Total gross loans $ 2,783,385 $ 12,807 $ 80,235 $ 2,876,427
Loans individually evaluated and collectively evaluated	March 31, 2022 December 31, 2021 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 16,452 $ 584,538 $ 600,990 $ 16,579 $ 617,805 $ 634,384 Real estate: Commercial real estate 19,266 1,123,380 1,142,646 21,057 1,070,912 1,091,969 Construction and development 12,693 460,633 473,326 12,716 448,003 460,719 1-4 family residential 3,324 259,889 263,213 3,355 273,918 277,273 Multi-family residential — 279,099 279,099 — 286,396 286,396 Consumer 119 28,111 28,230 125 27,965 28,090 Agriculture — 6,287 6,287 — 7,941 7,941 Other 2,151 93,036 95,187 5,440 84,215 89,655 Total gross loans $ 54,005 $ 2,834,973 $ 2,888,978 $ 59,272 $ 2,817,155 $ 2,876,427
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 March 31, 2022 Beginning balance $ 11,214 $ 11,015 $ 3,310 $ 2,105 $ 1,781 $ 406 $ 88 $ 1,426 $ 31,345 Provision (recapture) (383) 282 119 (81) (11) (5) (28) 127 20 Charge-offs — — — (2) — — — — (2) Recoveries 64 — — 3 — 2 10 — 79 Net recoveries 64 — — 1 — 2 10 — 77 Ending balance $ 10,895 $ 11,297 $ 3,429 $ 2,025 $ 1,770 $ 403 $ 70 $ 1,553 $ 31,442 Period-end amount allocated to: Specific reserve $ 3,686 $ 98 $ — $ — $ — $ 119 $ — $ — $ 3,903 General reserve 7,209 11,199 3,429 2,025 1,770 284 70 1,553 27,539 Total $ 10,895 $ 11,297 $ 3,429 $ 2,025 $ 1,770 $ 403 $ 70 $ 1,553 $ 31,442 March 31, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) 872 482 (644) (120) 201 (10) (72) (423) 286 Charge-offs (309) — — — — — — — (309) Recoveries 214 — — — — 4 42 — 260 Net (charge-offs) recoveries (95) — — — — 4 42 — (49) Ending balance $ 13,812 $ 14,280 $ 5,445 $ 2,458 $ 2,714 $ 434 $ 107 $ 1,624 $ 40,874 Period-end amount allocated to: Specific reserve $ 5,476 $ 274 $ — $ — $ — $ 6 $ — $ — $ 5,756 General reserve 8,336 14,006 5,445 2,458 2,714 428 107 1,624 35,118 Total $ 13,812 $ 14,280 $ 5,445 $ 2,458 $ 2,714 $ 434 $ 107 $ 1,624 $ 40,874
ACL for loans by loan class	March 31, 2022 December 31, 2021 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 10,895 34.7 % $ 11,214 35.7 % Real estate: Commercial real estate 11,297 35.9 % 11,015 35.1 % Construction and development 3,429 10.9 % 3,310 10.6 % 1-4 family residential 2,025 6.4 % 2,105 6.7 % Multi-family residential 1,770 5.6 % 1,781 5.7 % Consumer 403 1.3 % 406 1.3 % Agriculture 70 0.3 % 88 0.3 % Other 1,553 4.9 % 1,426 4.6 % Total allowance for credit losses for loans $ 31,442 100.0 % $ 31,345 100.0 % Loans excluding loans held for sale 2,879,880 2,867,524 ACL for loans to loans excluding loans held for sale 1.09% 1.09%
Charge-offs and recoveries by loan class and vintage	Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Recovery $ — $ — $ — $ — $ 12 $ 20 $ 32 $ — $ 64 Total commercial and industrial — — — — 12 20 32 — 64 1-4 family residential: Charge-off — — — — (2) — — — (2) Recovery — — — — — 3 — — 3 Total 1-4 family residential — — — — (2) 3 — — 1 Consumer: Recovery 1 — — 1 — — — — 2 Total consumer 1 — — 1 — — — — 2 Agriculture: Recovery — — — — — 10 — — 10 Total agriculture — — — — — 10 — — 10 Total: Charge-off — — — — (2) — — — (2) Recovery 1 — — 1 12 33 32 — 79 Total $ 1 $ — $ — $ 1 $ 10 $ 33 $ 32 $ — $ 77 Charge-offs and recoveries by loan class and vintage for the three months ended March 31, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ (191) $ (74) $ — $ — $ (44) $ — $ (309) Recovery — — 1 13 33 158 9 — 214 Total commercial and industrial — — (190) (61) 33 158 (35) — (95) Consumer: Recovery 3 — 1 — — — — — 4 Total consumer 3 — 1 — — — — — 4 Agriculture: Recovery — — — — — 42 — — 42 Total agriculture — — — — — 42 — — 42 Total: Charge-off — — (191) (74) — — (44) — (309) Recovery 3 — 2 13 33 200 9 — 260 Total $ 3 $ — $ (189) $ (61) $ 33 $ 200 $ (35) $ — $ (49)
Activity in the ACL for unfunded commitments	March 31, (Dollars in thousands) 2022 2021 Beginning balance $ 3,266 $ 4,177 Provision 415 126 Ending balance $ 3,681 $ 4,303

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	3 Months Ended
PREMISES AND EQUIPMENT (Tables)	Mar. 31, 2022
PREMISES AND EQUIPMENT
Components of premises and equipment	(Dollars in thousands) March 31, 2022 December 31, 2021 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 62,227 64,298 Furniture and equipment 17,122 17,087 Vehicles 248 248 Construction in progress 496 496 95,577 97,613 Less accumulated depreciation (38,912) (39,196) Premises and equipment, net $ 56,665 $ 58,417

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Mar. 31, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
Other intangibles	Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets March 31, 2022 Core deposits 2.2 years $ 13,750 $ (13,582) $ 168 Customer relationships 6.8 years 6,629 (3,646) 2,983 Servicing assets 10.0 years 687 (298) 389 Total other intangible assets, net $ 21,066 $ (17,526) $ 3,540 December 31, 2021 Core deposits 2.4 years $ 13,750 $ (13,538) $ 212 Customer relationships 7.0 years 6,629 (3,535) 3,094 Servicing assets 11.5 years 624 (272) 352 Total other intangible assets, net $ 21,003 $ (17,345) $ 3,658
Changes in related servicing assets	March 31, (Dollars in thousands) 2022 2021 Balance at beginning of year $ 352 $ 190 Increase from loan sales 63 11 Amortization (26) (13) Balance at end of period $ 389 $ 188

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	3 Months Ended
BANK OWNED LIFE INSURANCE (Tables)	Mar. 31, 2022
BANK OWNED LIFE INSURANCE.
Bank-owned life insurance policies and net change in cash surrender value	March 31, (Dollars in thousands) 2022 2021 Balance at beginning of period $ 73,156 $ 72,338 Net change in cash surrender value 371 390 Balance at end of period $ 73,527 $ 72,728

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
DEPOSITS (Tables)	Mar. 31, 2022
DEPOSITS
Schedule of deposits	(Dollars in thousands) March 31, 2022 December 31, 2021 Interest-bearing demand accounts $ 444,571 $ 468,361 Money market accounts 1,218,082 1,209,659 Savings accounts 130,218 127,031 Certificates and other time deposits, $100,000 or greater 127,798 134,775 Certificates and other time deposits, less than $100,000 99,233 106,477 Total interest-bearing deposits 2,019,902 2,046,303 Noninterest-bearing deposits 1,801,323 1,784,981 Total deposits $ 3,821,225 $ 3,831,284

LINES OF CREDIT (Tables)

LINES OF CREDIT (Tables)	3 Months Ended
LINES OF CREDIT (Tables)	Mar. 31, 2022
LINES OF CREDIT
Scheduled maturities of Federal Home Loan Bank advances	(Dollars in thousands) March 31, 2022 2022 10,000 2023 20,000 2024 20,000 Total $ 50,000

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
FAIR VALUE DISCLOSURES (Tables)	Mar. 31, 2022
FAIR VALUE DISCLOSURES
Financial assets and financial liabilities measured at fair value on a recurring basis	(Dollars in thousands) March 31, 2022 December 31, 2021 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,121 $ 1,173 Debt securities available for sale - U.S. Treasury securities 109,044 11,797 Level 2 inputs: Debt securities available for sale: State and municipal securities 155,774 172,600 U.S. agency securities: Callable debentures 2,807 2,973 Collateralized mortgage obligations 89,924 62,382 Mortgage-backed securities 189,309 174,121 Interest rate swaps 4,469 3,543 Level 3 inputs: Credit risk participation agreement 9 15 Total fair value of financial assets $ 552,457 $ 428,604 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 4,469 $ 3,543 Total fair value of financial liabilities $ 4,469 $ 3,543
Financial assets measured at fair value on a non-recurring basis are certain impaired loans	March 31, 2022 December 31, 2021 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs: Loans evaluated individually Commercial and industrial $ 9,188 $ 3,686 $ 5,502 $ 9,624 $ 3,986 $ 5,638 Commercial real estate 824 98 726 2,629 609 2,020 Consumer 119 119 — 125 125 — Total $ 10,131 $ 3,903 $ 6,228 $ 12,378 $ 4,720 $ 7,658
Fair market values and carrying amounts of financial instruments that are reported at cost	March 31, 2022 December 31, 2021 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 770,991 $ 770,991 $ 950,146 $ 950,146 Level 2 inputs: Bank-owned life insurance 73,527 73,527 73,156 73,156 Accrued interest receivable 10,925 10,925 11,616 11,616 Servicing asset 389 389 352 352 Level 3 inputs: Loans, including held for sale, net 2,810,655 2,849,186 2,864,663 2,836,343 Other investments 17,101 17,101 17,727 17,727 Total financial assets $ 3,683,588 $ 3,722,119 $ 3,917,660 $ 3,889,340 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,801,323 $ 1,801,323 $ 1,784,981 $ 1,784,981 Level 2 inputs: Interest-bearing deposits 1,919,719 2,019,902 2,040,794 2,046,303 Federal Home Loan Bank advances 49,416 50,000 50,591 50,000 Accrued interest payable 174 174 201 201 Total financial liabilities $ 3,770,632 $ 3,871,399 $ 3,876,567 $ 3,881,485

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Mar. 31, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative instruments outstanding	Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) March 31, 2022 Interest rate swaps with customers Other assets $ 31,514 $ 184 4.85 - 5.60% LIBOR 1M + 2.50% - 3.00% 4.34 Interest rate swaps with financial institutions Other assets 88,755 4,203 3.25% - 5.15% LIBOR 1M + 2.50% - 3.00% 5.41 Interest rate swaps with customers Other assets 5,113 82 4.99% U.S. Prime 5.71 Interest rate swaps with financial institutions Other liabilities 5,113 (82) 4.99% U.S. Prime 5.71 Interest rate swaps with financial institutions Other liabilities 31,514 (184) 4.85 - 5.60% LIBOR 1M + 2.50% - 3.00% 4.34 Interest rate swaps with customers Other liabilities 88,755 (4,203) 3.25% - 5.15% LIBOR 1M + 2.50% 5.41 Credit risk participation agreement with financial institution Other assets 13,433 9 3.50% LIBOR 1M + 2.50% 7.99 Total derivatives $ 264,197 $ 9 December 31, 2021 Interest rate swaps with customers Other assets $ 56,440 $ 2,474 4.00% - 5.60% LIBOR 1M + 2.50% - 3.00% 5.10 Interest rate swaps with financial institutions Other assets 66,650 875 3.25% - 3.50% LIBOR 1M + 2.50% 5.59 Interest rate swaps with customers Other assets 5,141 194 4.99% U.S. Prime 5.96 Interest rate swaps with financial institutions Other liabilities 5,141 (194) 4.99% U.S. Prime 5.96 Interest rate swaps with financial institutions Other liabilities 56,440 (2,474) 4.00% - 5.60% LIBOR 1M + 2.50% - 3.00% 5.10 Interest rate swaps with customers Other liabilities 66,650 (875) 3.25% - 3.50% LIBOR 1M + 2.50% 5.59 Credit risk participation agreement with financial institution Other assets 13,563 15 3.50% LIBOR 1M + 2.50% 8.24 Total derivatives $ 270,025 $ 15

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	3 Months Ended
OPERATING LEASES (Tables)	Mar. 31, 2022
OPERATING LEASES
Lease costs	Three Months Ended March 31, (Dollars in thousands) 2022 2021 Operating lease cost $ 427 $ 485 Short-term lease cost 4 4 Sublease income (157) (161) Total lease cost $ 274 $ 328
Schedule of other information related to operating leases	Three Months Ended March 31, (Dollars in thousands) 2022 2021 Amortization of lease right-to-use asset $ 341 $ 385 Accretion of lease liabilities 86 100 Cash paid for amounts included in the measurement of lease liabilities 476 487 Weighted-average remaining lease term in years 10.4 10.7 Weighted-average discount rate 2.65% 2.64%
Maturity analysis of operating lease liabilities	(Dollars in thousands) March 31, 2022 1 year or less $ 1,835 Over 1 year through 2 years 1,970 Over 2 years through 3 years 1,805 Over 3 years through 4 years 1,807 Over 4 years through 5 years 1,695 Thereafter 7,212 Total undiscounted lease liability 16,324 Less: Discount on cash flows (2,572) Total operating lease liability $ 13,752

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	3 Months Ended
	Mar. 31, 2022
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit and standby letters of credit	March 31, December 31, (Dollars in thousands) March 31, 2022 December 31, 2021 Commitments to extend credit, variable interest rate $ 810,482 $ 714,084 Commitments to extend credit, fixed interest rate 96,610 60,876 Total commitments $ 907,092 $ 774,960 Standby letters of credit $ 16,972 $ 18,109

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
STOCK-BASED COMPENSATION (Tables)	Mar. 31, 2022
STOCK-BASED COMPENSATION
Shares of stock options exercised, restricted stock vested, shares withheld and shares issued	Exercised/Vested Shares Withheld Shares Issued Three Months Ended March 31, 2022 Non-performance based restricted stock 18,342 (3,892) 14,450 Three Months Ended March 31, 2021 Non-performance based restricted stock 13,369 (2,642) 10,727
Stock options
STOCK-BASED COMPENSATION
Stock option activity	Three Months Ended March 31, 2022 2021 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 191,560 $ 17.53 201,720 $ 17.22 Granted — — — — Exercised — — — — Forfeited/expired — — — — Outstanding at end of period 191,560 $ 17.53 201,720 $ 17.22
Summary of stock options	March 31, 2022 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 175,561 15,999 191,560 Weighted-average exercise price per share $ 17.22 $ 21.00 $ 17.53 Aggregate intrinsic value (in thousands) $ 2,420 160 2,580 Weighted-average remaining contractual term (years) 3.4 5.3 3.5
Unvested 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, 2020 129,667 $ 28.22 2,250 $ 34.40 Granted 33,285 26.32 — — Vested (13,369) 30.72 — — Forfeited — — — — Outstanding at March 31, 2021 149,583 27.58 2,250 34.40 Outstanding at December 31, 2021 83,563 27.85 2,250 34.40 Granted 38,457 29.42 — — Vested (18,342) 29.39 — — Forfeited (1,703) 33.63 — — Outstanding at March 31, 2022 101,975 28.07 2,250 34.40
Summary of restricted stock	March 31, 2022 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 101,975 2,250 Weighted-average grant date fair value per share $ 28.07 $ 34.40 Aggregate fair value (in thousands) $ 3,161 $ 70 Weighted-average remaining vesting period (years) 1.5 1.5

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	3 Months Ended
REGULATORY MATTERS (Tables)	Mar. 31, 2022
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 March 31, 2022 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 483,115 14.97% $ 225,939 7.00% N/A N/A Bank Only $ 456,183 14.13% $ 225,917 7.00% $ 209,780 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 483,115 14.97% $ 274,354 8.50% N/A N/A Bank Only $ 456,183 14.13% $ 274,328 8.50% $ 258,191 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 518,239 16.06% $ 338,908 10.50% N/A N/A Bank Only $ 491,307 15.22% $ 338,876 10.50% $ 322,739 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 483,115 11.08% $ 174,353 4.00% N/A N/A Bank Only $ 456,183 10.47% $ 174,248 4.00% $ 217,810 5.00% December 31, 2021 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 475,154 15.31% $ 217,300 7.00% N/A N/A Bank Only $ 447,819 14.43% $ 217,270 7.00% $ 201,757 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 475,154 15.31% $ 263,864 8.50% N/A N/A Bank Only $ 447,819 14.43% $ 263,836 8.50% $ 248,316 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 509,766 16.42% $ 325,950 10.50% N/A N/A Bank Only $ 482,431 15.54% $ 325,915 10.50% $ 310,395 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 475,154 11.22% $ 169,470 4.00% N/A N/A Bank Only $ 447,819 10.58% $ 169,381 4.00% $ 211,726 5.00%

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
INCOME TAXES (Tables)	Mar. 31, 2022
INCOME TAXES
Provision for income tax expense and effective tax rates	Three Months Ended March 31, (Dollars in thousands) 2022 2021 Income tax expense $ 2,277 $ 2,485 Effective tax rate 17.69% 19.87%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
EARNINGS PER SHARE (Tables)	Mar. 31, 2022
EARNINGS PER SHARE
Computations of basic and diluted earnings per share	Three Months Ended March 31, (Dollars in thousands, except per share data) 2022 2021 Net income for common shareholders $ 10,595 $ 10,019 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,497 24,508 Dilutive effect of outstanding stock options and unvested restricted stock awards 108 108 Diluted weighted-average shares outstanding 24,605 24,616 Earnings per share: Basic $ 0.43 $ 0.41 Diluted $ 0.43 $ 0.41

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	Mar. 31, 2022location
Operating branches	34
Houston market area
Operating branches	18
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	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares repurchased	0	181,089
Shares repurchased and retired, price per share		$ 27.44

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash flow reporting (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash collateral used in interest rate swap transactions	$ 220,000		$ 1,800,000
Supplemental disclosures of cash flow information:
Cash paid for interest	1,413,000	$ 1,688,000
Supplemental disclosures of non-cash flow information:
Change in liability for dividends accrued	$ 115,000	(727,000)
Repossessed real estate and other assets		$ 106,000

SECURITIES - Amortized cost, re

SECURITIES - Amortized cost, related gross unrealized gains and losses and estimated fair values of investments in securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt securities available for sale:
Amortized cost	$ 582,508	$ 421,193
Gross Unrealized Gains	748	6,371
Gross Unrealized Losses	(35,277)	(2,518)
Fair Value	547,979	425,046
Equity Securities
Equity securities, Amortized Cost	1,193
Equity securities, Fair Value	1,121
State and municipal securities
Debt securities available for sale:
Amortized cost	171,658	168,541
Gross Unrealized Gains	488	4,451
Gross Unrealized Losses	(16,372)	(392)
Fair Value	155,774	172,600
U.S. Treasury securities
Debt securities available for sale:
Amortized cost	110,597	11,888
Gross Unrealized Losses	(1,553)	(91)
Fair Value	109,044	11,797
Callable debentures
Debt securities available for sale:
Amortized cost	3,000	3,000
Gross Unrealized Losses	(193)	(27)
Fair Value	2,807	2,973
Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	94,876	63,129
Gross Unrealized Gains	2	115
Gross Unrealized Losses	(4,954)	(862)
Fair Value	89,924	62,382
Mortgage-backed securities
Debt securities available for sale:
Amortized cost	201,184	173,446
Gross Unrealized Gains	258	1,805
Gross Unrealized Losses	(12,133)	(1,130)
Fair Value	189,309	174,121
Equity securities
Equity Securities
Equity securities, Amortized Cost	1,193	1,189
Gross Unrealized Losses	(72)	(16)
Equity securities, Fair Value	$ 1,121	$ 1,173

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 11,322	$ 2,070
Amortized cost, 1 year through 5 years	96,066	7,091
Amortized cost, 5 years through 10 years	42,303	29,673
Amortized cost, After 10 years	432,817	382,359
Available-for-sale Securities, Amortized Cost Basis, Total	582,508	421,193
Available for Sale - Fair Value
Estimated fair value, 1 year or less	11,197	2,056
Estimated fair value, 1 year through 5 years	94,944	7,066
Estimated fair value, 5 years through 10 years	41,492	30,360
Estimated fair value, After 10 years	400,346	385,564
Available-for-sale Securities, Total	547,979	425,046
Equity securities - Amortized Cost
Equity securities, Amortized Cost	1,193
Equity securities - Fair Value
Equity securities, Fair Value	1,121
State and municipal securities
Available for Sale - Amortized Cost
Amortized cost, 1 year or less		881
Amortized cost, 1 year through 5 years	507
Amortized cost, 5 years through 10 years	15,874	12,339
Amortized cost, After 10 years	155,277	155,321
Available-for-sale Securities, Amortized Cost Basis, Total	171,658	168,541
Available for Sale - Fair Value
Estimated fair value, 1 year or less		883
Estimated fair value, 1 year through 5 years	508
Estimated fair value, 5 years through 10 years	15,646	12,905
Estimated fair value, After 10 years	139,620	158,812
Available-for-sale Securities, Total	155,774	172,600
U.S. Treasury securities
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	10,129
Amortized cost, 1 year through 5 years	94,708	6,138
Amortized cost, 5 years through 10 years	5,760	5,750
Available-for-sale Securities, Amortized Cost Basis, Total	110,597	11,888
Available for Sale - Fair Value
Estimated fair value, 1 year or less	10,076
Estimated fair value, 1 year through 5 years	93,567	6,072
Estimated fair value, 5 years through 10 years	5,401	5,725
Available-for-sale Securities, Total	109,044	11,797
Callable debentures
Available for Sale - Amortized Cost
Amortized cost, 5 years through 10 years	3,000	3,000
Available-for-sale Securities, Amortized Cost Basis, Total	3,000	3,000
Available for Sale - Fair Value
Estimated fair value, 5 years through 10 years	2,807	2,973
Available-for-sale Securities, Total	2,807	2,973
Collateralized mortgage obligations
Available for Sale - Amortized Cost
Amortized cost, 5 years through 10 years	3,834	4,528
Amortized cost, After 10 years	91,042	58,601
Available-for-sale Securities, Amortized Cost Basis, Total	94,876	63,129
Available for Sale - Fair Value
Estimated fair value, 5 years through 10 years	3,815	4,591
Estimated fair value, After 10 years	86,109	57,791
Available-for-sale Securities, Total	89,924	62,382
Mortgage-backed securities
Available for Sale - Amortized Cost
Amortized cost, 1 year through 5 years	851	953
Amortized cost, 5 years through 10 years	13,835	4,056
Amortized cost, After 10 years	186,498	168,437
Available-for-sale Securities, Amortized Cost Basis, Total	201,184	173,446
Available for Sale - Fair Value
Estimated fair value, 1 year through 5 years	869	994
Estimated fair value, 5 years through 10 years	13,823	4,166
Estimated fair value, After 10 years	174,617	168,961
Available-for-sale Securities, Total	189,309	174,121
Equity securities
Available for Sale - Fair Value
Estimated fair value, 1 year or less		1,173
Equity securities - Amortized Cost
Equity securities, Amortized Cost	1,193	1,189
Equity securities - Fair Value
Equity securities, Fair Value	$ 1,121	$ 1,173

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details)	3 Months Ended	12 Months Ended
SECURITIES - Securities carrying amount (Details)	Mar. 31, 2022USD ($)security	Dec. 31, 2021USD ($)security	Mar. 31, 2021USD ($)
SECURITIES.
Carrying amount of securities sold in the period	$ 0		$ 0
Carrying value of securities pledged	26,800,000	$ 25,600,000
Securities, ACL recorded	0	0
Accrued interest receivable for securities	$ 1,500,000	$ 2,000,000
Securities held in a gross unrealized loss position \| security	334	115

SECURITIES - Securities with un

SECURITIES - Securities with unrealized losses, aggregated by category and the length of time (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment securities
Fair Value - Less Than Twelve Months	$ 457,073	$ 180,901
Gross Unrealized Losses - Less Than Twelve Months	(31,021)	(2,511)
Fair Value - Twelve Months or More	34,392	498
Gross Unrealized Losses - Twelve Months or More	(4,256)	(7)
State and municipal securities
Investment securities
Fair Value - Less Than Twelve Months	117,448	36,962
Gross Unrealized Losses - Less Than Twelve Months	(15,734)	(387)
Fair Value - Twelve Months or More	3,269	257
Gross Unrealized Losses - Twelve Months or More	(638)	(5)
U.S. Treasury securities
Investment securities
Fair Value - Less Than Twelve Months	109,044	11,797
Gross Unrealized Losses - Less Than Twelve Months	(1,553)	(91)
Callable debentures
Investment securities
Fair Value - Less Than Twelve Months	2,807	2,973
Gross Unrealized Losses - Less Than Twelve Months	(193)	(27)
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months	77,644	40,776
Gross Unrealized Losses - Less Than Twelve Months	(3,692)	(860)
Fair Value - Twelve Months or More	11,189	241
Gross Unrealized Losses - Twelve Months or More	(1,262)	(2)
Mortgage-backed securities
Investment securities
Fair Value - Less Than Twelve Months	149,009	87,220
Gross Unrealized Losses - Less Than Twelve Months	(9,777)	(1,130)
Fair Value - Twelve Months or More	19,934
Gross Unrealized Losses - Twelve Months or More	(2,356)
Equity securities
Investment securities
Fair Value - Less Than Twelve Months	1,121	1,173
Gross Unrealized Losses - Less Than Twelve Months	$ (72)	$ (16)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)fund$ / shares	Dec. 31, 2021USD ($)
Equity investments
Equity investments, total	$ 17,101	$ 17,727
Number of private investments \| fund	2
Gain on sale of investments	$ 1,200
Federal Reserve stock
Equity investments
Equity investments, total	9,271	9,271
Federal Home Loan Bank Stock
Equity investments
Equity investments, total	$ 3,973	3,967
Par value (in dollars per share) \| $ / shares	$ 100
The Independent Bankers Financial Corporation stock
Equity investments
Equity investments, total	$ 141	141
Community Reinvestment Act investments
Equity investments
Equity investments, total	3,716	4,348
Unfunded commitments	$ 5,900	$ 6,300
U.S. agency securities:
Equity investments
Par value (in dollars per share) \| $ / shares	$ 100

LOANS - By portfolio segment (D

LOANS - By portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans
Total gross loans	$ 2,888,978	$ 2,876,427
Percentage of loan	100.00%	100.00%
Less allowance for credit losses for loans	$ (31,442)	$ (31,345)	$ (40,874)	$ (40,637)
Less deferred loan fees and unearned discounts	(8,350)	(8,739)
Less loans held for sale	(748)	(164)
Loans, net	2,848,438	2,836,179
Accrued interest receivable	9,300	9,600
Commercial and industrial
Loans
Total gross loans	$ 600,990	$ 634,384
Percentage of loan	20.80%	22.00%
Less allowance for credit losses for loans	$ (10,895)	$ (11,214)	(13,812)	(13,035)
Commercial real estate
Loans
Total gross loans	$ 1,142,646	$ 1,091,969
Percentage of loan	39.50%	38.00%
Less allowance for credit losses for loans	$ (11,297)	$ (11,015)	(14,280)	(13,798)
Construction and development
Loans
Total gross loans	$ 473,326	$ 460,719
Percentage of loan	16.40%	16.00%
Less allowance for credit losses for loans	$ (3,429)	$ (3,310)	(5,445)	(6,089)
1-4 family residential
Loans
Total gross loans	$ 263,213	$ 277,273
Percentage of loan	9.10%	9.60%
Less allowance for credit losses for loans	$ (2,025)	$ (2,105)	(2,458)	(2,578)
Multifamily residential
Loans
Total gross loans	$ 279,099	$ 286,396
Percentage of loan	9.70%	10.00%
Less allowance for credit losses for loans	$ (1,770)	$ (1,781)	(2,714)	(2,513)
Consumer
Loans
Total gross loans	$ 28,230	$ 28,090
Percentage of loan	1.00%	1.00%
Less allowance for credit losses for loans	$ (403)	$ (406)	(434)	(440)
Agriculture
Loans
Total gross loans	$ 6,287	$ 7,941
Percentage of loan	0.20%	0.30%
Less allowance for credit losses for loans	$ (70)	$ (88)	(107)	(137)
Other
Loans
Total gross loans	$ 95,187	$ 89,655
Percentage of loan	3.30%	3.10%
Less allowance for credit losses for loans	$ (1,553)	$ (1,426)	$ (1,624)	$ (2,047)

LOANS - Loan participations pur

LOANS - Loan participations purchased and sold and loans guaranteed (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loans
Participations Purchased	$ 35,605,000
Participations Sold	3,190,000
Net gains recognized on sales of SBA loans	343,000	$ 60,000
SBA loans that were sold with servicing retained	2,800,000	$ 374,000
Commercial and industrial
Loans
Participations Purchased	15,844,000
Participations Sold	1,943,000
Commercial real estate
Loans
Participations Purchased	17,955,000
Participations Sold	1,247,000
Other
Loans
Participations Purchased	$ 1,806,000

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of past due loans, by loan class (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Aging analysis
Total current loans	$ 2,873,203,000		$ 2,875,291,000
Total gross loans	2,888,978,000		2,876,427,000
Interest income that would have been earned under the original terms of the nonaccrual loans	249,000	$ 191,000
30 to 59 days past due
Aging analysis
Total current loans	13,603,000		905,000
60 to 89 days past due
Aging analysis
Total current loans	2,032,000		34,000
90 days or greater past due
Aging analysis
Total current loans	140,000		197,000
Total Past Due
Aging analysis
Total current loans	15,775,000		1,136,000
Commercial and industrial
Aging analysis
Total current loans	596,975,000		634,370,000
Total gross loans	600,990,000		634,384,000
Commercial and industrial \| 30 to 59 days past due
Aging analysis
Total current loans	3,517,000		14,000
Commercial and industrial \| 60 to 89 days past due
Aging analysis
Total current loans	498,000
Commercial and industrial \| Total Past Due
Aging analysis
Total current loans	4,015,000		14,000
Commercial real estate
Aging analysis
Total current loans	1,132,705,000		1,091,264,000
Total gross loans	1,142,646,000		1,091,969,000
Commercial real estate \| 30 to 59 days past due
Aging analysis
Total current loans	9,941,000		650,000
Commercial real estate \| 90 days or greater past due
Aging analysis
Total current loans			55,000
Commercial real estate \| Total Past Due
Aging analysis
Total current loans	9,941,000		705,000
Construction and development
Aging analysis
Total current loans	473,186,000		460,577,000
Total gross loans	473,326,000		460,719,000
Construction and development \| 90 days or greater past due
Aging analysis
Total current loans	140,000		142,000
Construction and development \| Total Past Due
Aging analysis
Total current loans	140,000		142,000
1-4 family residential
Aging analysis
Total current loans	261,534,000		277,089,000
Total gross loans	263,213,000		277,273,000
1-4 family residential \| 30 to 59 days past due
Aging analysis
Total current loans	145,000		150,000
1-4 family residential \| 60 to 89 days past due
Aging analysis
Total current loans	1,534,000		34,000
1-4 family residential \| Total Past Due
Aging analysis
Total current loans	1,679,000		184,000
Multifamily residential
Aging analysis
Total current loans	279,099,000		286,396,000
Total gross loans	279,099,000		286,396,000
Consumer
Aging analysis
Total current loans	28,230,000		28,040,000
Total gross loans	28,230,000		28,090,000
Consumer \| 30 to 59 days past due
Aging analysis
Total current loans			50,000
Consumer \| Total Past Due
Aging analysis
Total current loans			50,000
Agriculture
Aging analysis
Total current loans	6,287,000		7,941,000
Total gross loans	6,287,000		7,941,000
Other
Aging analysis
Total gross loans	95,187,000		89,655,000
Other:
Aging analysis
Total current loans	95,187,000		89,614,000
Total gross loans	$ 95,187,000		89,655,000
Other: \| 30 to 59 days past due
Aging analysis
Total current loans			41,000
Other: \| Total Past Due
Aging analysis
Total current loans			$ 41,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Nonaccrual loans
Total nonaccrual loans	$ 22,083	$ 22,568
Commercial and industrial
Nonaccrual loans
Total nonaccrual loans	8,765	9,090
Commercial real estate
Nonaccrual loans
Total nonaccrual loans	11,363	11,512
Construction and development
Nonaccrual loans
Total nonaccrual loans	140	142
1-4 family residential
Nonaccrual loans
Total nonaccrual loans	1,777	1,784
Other:
Nonaccrual loans
Total nonaccrual loans	$ 38	$ 40

LOAN PERFORMANCE - Troubled deb

LOAN PERFORMANCE - Troubled debt restructurings granted (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)loan	Mar. 31, 2021USD ($)loan
Restructured loans
Number of loans \| loan	8	2
Premodification outstanding Recorded Investment	$ 4,104	$ 2,754
Restructured Payments
Restructured loans
Postmodification recorded investment	1,093	$ 2,754
Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 3,022
Commercial and industrial
Restructured loans
Number of loans \| loan	7
Premodification outstanding Recorded Investment	$ 3,870
Commercial and industrial \| Restructured Payments
Restructured loans
Postmodification recorded investment	1,093
Commercial and industrial \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 2,777
Commercial real estate
Restructured loans
Number of loans \| loan	1	1
Premodification outstanding Recorded Investment	$ 234	$ 1,206
Commercial real estate \| Restructured Payments
Restructured loans
Postmodification recorded investment		$ 1,206
Commercial real estate \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 245
1-4 family residential
Restructured loans
Number of loans \| loan		1
Premodification outstanding Recorded Investment		$ 1,548
1-4 family residential \| Restructured Payments
Restructured loans
Postmodification recorded investment		$ 1,548

LOAN PERFORMANCE - Troubled d_2

LOAN PERFORMANCE - Troubled debt restructurings with payment defaults (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2021USD ($)loan	Mar. 31, 2022USD ($)
Restructured loans
TDRs with payment defaults, Balance		$ 0
TDRs with payment defaults after restructuring
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	14
TDRs with payment defaults, Balance	$ 28,002,000
Commercial and industrial \| TDRs with payment defaults after restructuring
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	5
TDRs with payment defaults, Balance	$ 7,904,000
Commercial real estate \| TDRs with payment defaults after restructuring
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	4
TDRs with payment defaults, Balance	$ 8,114,000
Construction and development \| TDRs with payment defaults after restructuring
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	3
TDRs with payment defaults, Balance	$ 11,882,000
1-4 family residential \| TDRs with payment defaults after restructuring
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	2
TDRs with payment defaults, Balance	$ 102,000

LOAN PERFORMANCE - Outstanding

LOAN PERFORMANCE - Outstanding Troubled debt restructurings and other loans individually evaluated (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Restructured loans
Accruing TDR	$ 28,428	$ 30,709
Non-Accrual TDR	21,720	20,019
Total TDR	50,148	50,728
Other Non-Accrual	363	2,549
Other Accruing	3,494	5,995
Total Individually Evaluated	54,005	59,272
Commercial and industrial
Restructured loans
Accruing TDR	6,606	5,661
Non-Accrual TDR	8,700	6,851
Total TDR	15,306	12,512
Other Non-Accrual	65	2,239
Other Accruing	1,081	1,828
Total Individually Evaluated	16,452	16,579
Commercial real estate
Restructured loans
Accruing TDR	5,863	5,755
Non-Accrual TDR	11,258	11,401
Total TDR	17,121	17,156
Other Non-Accrual	105	111
Other Accruing	2,040	3,790
Total Individually Evaluated	19,266	21,057
Construction and development
Restructured loans
Accruing TDR	12,261	12,282
Total TDR	12,261	12,282
Other Non-Accrual	140	142
Other Accruing	292	292
Total Individually Evaluated	12,693	12,716
1-4 family residential
Restructured loans
Accruing TDR	1,547	1,571
Non-Accrual TDR	1,724	1,727
Total TDR	3,271	3,298
Other Non-Accrual	53	57
Total Individually Evaluated	3,324	3,355
Consumer
Restructured loans
Non-Accrual TDR	38	40
Total TDR	38	40
Other Accruing	81	85
Total Individually Evaluated	119	125
Other:
Restructured loans
Accruing TDR	2,151	5,440
Total TDR	2,151	5,440
Total Individually Evaluated	2,151	5,440
Unfunded Commitment
Restructured loans
Commitment to fund on loans that were previously restructured	$ 5,700	$ 2,500

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) $ in Millions	3 Months Ended	12 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Details) $ in Millions	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Financing Receivable, Recorded Investment [Line Items]
Allowance for credit losses for loans (as a percent)	1.09	1.09
ACL balance	$ 31.4	$ 31.3
Minimum
Financing Receivable, Recorded Investment [Line Items]
Total factors (as a percent)	0.63	0.62
Maximum
Financing Receivable, Recorded Investment [Line Items]
Total factors (as a percent)	2.04	2.08

ALLOWANCE FOR CREDIT LOSSES - L

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
2022	$ 291,270
2021	772,399	$ 841,230
2020	383,928	406,444
2019	314,011	391,641
2018	248,819	294,205
2017		136,629
Prior	414,685	317,225
Revolving Loans	426,851	451,550
Converted revolving loan	37,015	37,503
Total Loans	2,888,978	2,876,427
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	600,990	634,384
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,142,646	1,091,969
Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	473,326	460,719
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	263,213	277,273
Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	279,099	286,396
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	28,230	28,090
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,287	7,941
Other:
Financing Receivable, Recorded Investment [Line Items]
Total Loans	95,187	89,655
Loans by risk grades \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	44,587
2021	176,013	230,432
2020	46,557	54,758
2019	52,321	62,656
2018	25,456	28,149
2017		8,121
Prior	12,180	5,924
Revolving Loans	234,044	233,071
Converted revolving loan	9,832	11,273
Total Loans	600,990	634,384
Loans by risk grades \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2022	177,416
2021	221,599	243,666
2020	199,013	200,578
2019	202,589	245,900
2018	129,964	164,081
2017		70,329
Prior	133,070	87,506
Revolving Loans	54,617	55,253
Converted revolving loan	24,378	24,656
Total Loans	1,142,646	1,091,969
Loans by risk grades \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	39,508
2021	208,277	197,900
2020	90,300	100,182
2019	36,188	54,017
2018	8,138	8,627
2017		26,340
Prior	26,548	859
Revolving Loans	64,276	72,698
Converted revolving loan	91	96
Total Loans	473,326	460,719
Loans by risk grades \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2022	16,917
2021	109,806	115,451
2020	23,147	24,846
2019	14,854	20,724
2018	25,932	32,318
2017		21,733
Prior	65,542	53,717
Revolving Loans	5,320	8,018
Converted revolving loan	1,695	466
Total Loans	263,213	277,273
Loans by risk grades \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2022	2,274
2021	18,557	16,744
2020	18,145	18,236
2019	6,420	6,473
2018	57,240	58,750
2017		9,784
Prior	175,895	167,033
Revolving Loans	568	9,376
Total Loans	279,099	286,396
Loans by risk grades \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2022	2,171
2021	4,993	6,427
2020	3,386	3,677
2019	986	1,199
2018	556	714
2017		277
Prior	207	11
Revolving Loans	15,140	15,006
Converted revolving loan	791	779
Total Loans	28,230	28,090
Loans by risk grades \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2022	523
2021	1,213	2,954
2020	394	423
2019	33	42
2018	53	57
2017		35
Prior	49	18
Revolving Loans	3,833	4,222
Converted revolving loan	189	190
Total Loans	6,287	7,941
Loans by risk grades \| Other:
Financing Receivable, Recorded Investment [Line Items]
2022	7,874
2021	31,941	27,656
2020	2,986	3,744
2019	620	630
2018	1,480	1,509
2017		10
Prior	1,194	2,157
Revolving Loans	49,053	53,906
Converted revolving loan	39	43
Total Loans	95,187	89,655
Pass
Financing Receivable, Recorded Investment [Line Items]
2022	291,270
2021	772,347	841,230
2020	377,657	400,127
2019	296,990	375,159
2018	225,424	262,223
2017		125,958
Prior	399,311	312,527
Revolving Loans	421,508	445,115
Converted revolving loan	19,730	21,046
Total Loans	2,804,237	2,783,385
Pass \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	44,587
2021	176,013	230,432
2020	45,558	53,744
2019	49,416	60,514
2018	18,908	21,059
2017		8,117
Prior	11,813	5,533
Revolving Loans	228,831	228,247
Converted revolving loan	4,861	5,773
Total Loans	579,987	613,419
Pass \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2022	177,416
2021	221,547	243,666
2020	196,087	197,625
2019	188,977	232,074
2018	115,515	141,591
2017		69,995
Prior	129,496	84,398
Revolving Loans	54,617	55,253
Converted revolving loan	13,666	13,799
Total Loans	1,097,321	1,038,401
Pass \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	39,508
2021	208,277	197,900
2020	89,540	99,420
2019	36,188	54,017
2018	6,638	7,127
2017		16,133
Prior	15,647	142
Revolving Loans	64,276	72,698
Converted revolving loan	91	96
Total Loans	460,165	447,533
Pass \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2022	16,917
2021	109,806	115,451
2020	21,599	23,298
2019	14,350	20,210
2018	25,034	31,416
2017		21,607
Prior	65,027	53,253
Revolving Loans	5,320	6,516
Converted revolving loan	193	466
Total Loans	258,246	272,217
Pass \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2022	2,274
2021	18,557	16,744
2020	18,145	18,236
2019	6,420	6,473
2018	57,240	58,750
2017		9,784
Prior	175,895	167,033
Revolving Loans	568	9,376
Total Loans	279,099	286,396
Pass \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2022	2,171
2021	4,993	6,427
2020	3,348	3,637
2019	986	1,199
2018	556	714
2017		277
Prior	207	11
Revolving Loans	15,059	14,921
Converted revolving loan	691	679
Total Loans	28,011	27,865
Pass \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2022	523
2021	1,213	2,954
2020	394	423
2019	33	42
2018	53	57
2017		35
Prior	32
Revolving Loans	3,784	4,198
Converted revolving loan	189	190
Total Loans	6,221	7,899
Pass \| Other:
Financing Receivable, Recorded Investment [Line Items]
2022	7,874
2021	31,941	27,656
2020	2,986	3,744
2019	620	630
2018	1,480	1,509
2017		10
Prior	1,194	2,157
Revolving Loans	49,053	53,906
Converted revolving loan	39	43
Total Loans	95,187	89,655
Special Mention
Financing Receivable, Recorded Investment [Line Items]
2020	468	470
2019	848	1,149
2018	10	7,949
Prior	31	62
Revolving Loans	2,924	3,177
Total Loans	4,281	12,807
Special Mention \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2019		290
2018	10	15
Revolving Loans	2,924	3,177
Total Loans	2,934	3,482
Special Mention \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019	848	859
2018		7,934
Prior	31	62
Total Loans	879	8,855
Special Mention \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	468	470
Total Loans	468	470
Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	52
2020	5,803	5,847
2019	16,173	15,333
2018	23,385	24,033
2017		10,671
Prior	15,343	4,636
Revolving Loans	2,419	3,258
Converted revolving loan	17,285	16,457
Total Loans	80,460	80,235
Substandard \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020	999	1,014
2019	2,905	1,852
2018	6,538	7,075
2017		4
Prior	367	391
Revolving Loans	2,289	1,647
Converted revolving loan	4,971	5,500
Total Loans	18,069	17,483
Substandard \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2021	52
2020	2,926	2,953
2019	12,764	12,967
2018	14,449	14,556
2017		334
Prior	3,543	3,046
Converted revolving loan	10,712	10,857
Total Loans	44,446	44,713
Substandard \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	292	292
2018	1,500	1,500
2017		10,207
Prior	10,901	717
Total Loans	12,693	12,716
Substandard \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2020	1,548	1,548
2019	504	514
2018	898	902
2017		126
Prior	515	464
Revolving Loans		1,502
Converted revolving loan	1,502
Total Loans	4,967	5,056
Substandard \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	38	40
Revolving Loans	81	85
Converted revolving loan	100	100
Total Loans	219	225
Substandard \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Prior	17	18
Revolving Loans	49	24
Total Loans	$ 66	$ 42

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades and loan class (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized cost of loans by loan type
Total gross loans	$ 2,888,978	$ 2,876,427
Pass
Amortized cost of loans by loan type
Total gross loans	2,804,237	2,783,385
Special Mention
Amortized cost of loans by loan type
Total gross loans	4,281	12,807
Substandard
Amortized cost of loans by loan type
Total gross loans	80,460	80,235
Commercial and industrial
Amortized cost of loans by loan type
Total gross loans	600,990	634,384
Commercial and industrial \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	600,990	634,384
Commercial and industrial \| Pass
Amortized cost of loans by loan type
Total gross loans	579,987	613,419
Commercial and industrial \| Special Mention
Amortized cost of loans by loan type
Total gross loans	2,934	3,482
Commercial and industrial \| Substandard
Amortized cost of loans by loan type
Total gross loans	18,069	17,483
Commercial real estate
Amortized cost of loans by loan type
Total gross loans	1,142,646	1,091,969
Commercial real estate \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	1,142,646	1,091,969
Commercial real estate \| Pass
Amortized cost of loans by loan type
Total gross loans	1,097,321	1,038,401
Commercial real estate \| Special Mention
Amortized cost of loans by loan type
Total gross loans	879	8,855
Commercial real estate \| Substandard
Amortized cost of loans by loan type
Total gross loans	44,446	44,713
Construction and development
Amortized cost of loans by loan type
Total gross loans	473,326	460,719
Construction and development \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	473,326	460,719
Construction and development \| Pass
Amortized cost of loans by loan type
Total gross loans	460,165	447,533
Construction and development \| Special Mention
Amortized cost of loans by loan type
Total gross loans	468	470
Construction and development \| Substandard
Amortized cost of loans by loan type
Total gross loans	12,693	12,716
1-4 family residential
Amortized cost of loans by loan type
Total gross loans	263,213	277,273
1-4 family residential \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	263,213	277,273
1-4 family residential \| Pass
Amortized cost of loans by loan type
Total gross loans	258,246	272,217
1-4 family residential \| Substandard
Amortized cost of loans by loan type
Total gross loans	4,967	5,056
Multifamily residential
Amortized cost of loans by loan type
Total gross loans	279,099	286,396
Multifamily residential \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	279,099	286,396
Multifamily residential \| Pass
Amortized cost of loans by loan type
Total gross loans	279,099	286,396
Consumer
Amortized cost of loans by loan type
Total gross loans	28,230	28,090
Consumer \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	28,230	28,090
Consumer \| Pass
Amortized cost of loans by loan type
Total gross loans	28,011	27,865
Consumer \| Substandard
Amortized cost of loans by loan type
Total gross loans	219	225
Agriculture
Amortized cost of loans by loan type
Total gross loans	6,287	7,941
Agriculture \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	6,287	7,941
Agriculture \| Pass
Amortized cost of loans by loan type
Total gross loans	6,221	7,899
Agriculture \| Substandard
Amortized cost of loans by loan type
Total gross loans	66	42
Other
Amortized cost of loans by loan type
Total gross loans	95,187	$ 89,655
Other \| Pass
Amortized cost of loans by loan type
Total gross loans	$ 95,187

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Loans individually evaluated and collectively evaluated (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Loan Impairment Assessment
Individually Evaluated Loans	$ 54,005	$ 59,272
Collectively Evaluated Loans	2,834,973	2,817,155
Total Loans	2,888,978	2,876,427
Loans Collateral	1,500	1,500
Nonaccrual loans had no related ACL	16,700	16,000
Nonaccrual loans ACL	0	0
Commercial and industrial
Loan Impairment Assessment
Individually Evaluated Loans	16,452	16,579
Collectively Evaluated Loans	584,538	617,805
Total Loans	600,990	634,384
Commercial real estate
Loan Impairment Assessment
Individually Evaluated Loans	19,266	21,057
Collectively Evaluated Loans	1,123,380	1,070,912
Total Loans	1,142,646	1,091,969
Construction and development
Loan Impairment Assessment
Individually Evaluated Loans	12,693	12,716
Collectively Evaluated Loans	460,633	448,003
Total Loans	473,326	460,719
1-4 family residential
Loan Impairment Assessment
Individually Evaluated Loans	3,324	3,355
Collectively Evaluated Loans	259,889	273,918
Total Loans	263,213	277,273
Multifamily residential
Loan Impairment Assessment
Collectively Evaluated Loans	279,099	286,396
Total Loans	279,099	286,396
Consumer
Loan Impairment Assessment
Individually Evaluated Loans	119	125
Collectively Evaluated Loans	28,111	27,965
Total Loans	28,230	28,090
Agriculture
Loan Impairment Assessment
Collectively Evaluated Loans	6,287	7,941
Total Loans	6,287	7,941
Other
Loan Impairment Assessment
Individually Evaluated Loans	2,151	5,440
Collectively Evaluated Loans	93,036	84,215
Total Loans	$ 95,187	$ 89,655

ALLOWANCE FOR CREDIT LOSSES - A

ALLOWANCE FOR CREDIT LOSSES - Activity in the total ACL for loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loan losses segregated by loan class
Beginning balance	$ 31,345	$ 40,637
Provision for credit losses for loans	20	286
Charge-offs	(2)	(309)
Recoveries	79	260
Net (Charge-off) Recovery	77	(49)
Ending balance	31,442	40,874
Specific reserve
Loan losses segregated by loan class
Ending balance	3,903	5,756
General reserve
Loan losses segregated by loan class
Ending balance	27,539	35,118
Commercial and industrial
Loan losses segregated by loan class
Beginning balance	11,214	13,035
Provision for credit losses for loans	(383)	872
Charge-offs		(309)
Recoveries	64	214
Net (Charge-off) Recovery	64	(95)
Ending balance	10,895	13,812
Commercial and industrial \| Specific reserve
Loan losses segregated by loan class
Ending balance	3,686	5,476
Commercial and industrial \| General reserve
Loan losses segregated by loan class
Ending balance	7,209	8,336
Commercial real estate
Loan losses segregated by loan class
Beginning balance	11,015	13,798
Provision for credit losses for loans	282	482
Ending balance	11,297	14,280
Commercial real estate \| Specific reserve
Loan losses segregated by loan class
Ending balance	98	274
Commercial real estate \| General reserve
Loan losses segregated by loan class
Ending balance	11,199	14,006
Construction and development
Loan losses segregated by loan class
Beginning balance	3,310	6,089
Provision for credit losses for loans	119	(644)
Ending balance	3,429	5,445
Construction and development \| General reserve
Loan losses segregated by loan class
Ending balance	3,429	5,445
1-4 family residential
Loan losses segregated by loan class
Beginning balance	2,105	2,578
Provision for credit losses for loans	(81)	(120)
Charge-offs	(2)
Recoveries	3
Net (Charge-off) Recovery	1
Ending balance	2,025	2,458
1-4 family residential \| General reserve
Loan losses segregated by loan class
Ending balance	2,025	2,458
Multifamily residential
Loan losses segregated by loan class
Beginning balance	1,781	2,513
Provision for credit losses for loans	(11)	201
Ending balance	1,770	2,714
Multifamily residential \| General reserve
Loan losses segregated by loan class
Ending balance	1,770	2,714
Consumer
Loan losses segregated by loan class
Beginning balance	406	440
Provision for credit losses for loans	(5)	(10)
Recoveries	2	4
Net (Charge-off) Recovery	2	4
Ending balance	403	434
Consumer \| Specific reserve
Loan losses segregated by loan class
Ending balance	119	6
Consumer \| General reserve
Loan losses segregated by loan class
Ending balance	284	428
Agriculture
Loan losses segregated by loan class
Beginning balance	88	137
Provision for credit losses for loans	(28)	(72)
Recoveries	10	42
Net (Charge-off) Recovery	10	42
Ending balance	70	107
Agriculture \| General reserve
Loan losses segregated by loan class
Ending balance	70	107
Other
Loan losses segregated by loan class
Beginning balance	1,426	2,047
Provision for credit losses for loans	127	(423)
Ending balance	1,553	1,624
Other \| General reserve
Loan losses segregated by loan class
Ending balance	1,553	1,624
Unfunded Commitment
Loan losses segregated by loan class
Beginning balance	3,266	4,177
Ending balance	$ 3,681	$ 4,303

ALLOWANCE FOR CREDIT LOSSES -_4

ALLOWANCE FOR CREDIT LOSSES - ACL for loans by loan class (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loan Category
Allowance for credit losses on loans	$ 31,442	$ 31,345	$ 40,874	$ 40,637
Allowance for loan losses (as a percent)	100.00%	100.00%
Loans excluding loans held for sale	$ 2,879,880	$ 2,867,524
ACL for loans to loans excluding loans held for sale	1.09%	1.09%
Commercial and industrial
Loan Category
Allowance for credit losses on loans	$ 10,895	$ 11,214	13,812	13,035
Allowance for loan losses (as a percent)	34.70%	35.70%
Commercial real estate
Loan Category
Allowance for credit losses on loans	$ 11,297	$ 11,015	14,280	13,798
Allowance for loan losses (as a percent)	35.90%	35.10%
Construction and development
Loan Category
Allowance for credit losses on loans	$ 3,429	$ 3,310	5,445	6,089
Allowance for loan losses (as a percent)	10.90%	10.60%
1-4 family residential
Loan Category
Allowance for credit losses on loans	$ 2,025	$ 2,105	2,458	2,578
Allowance for loan losses (as a percent)	6.40%	6.70%
Multifamily residential
Loan Category
Allowance for credit losses on loans	$ 1,770	$ 1,781	2,714	2,513
Allowance for loan losses (as a percent)	5.60%	5.70%
Consumer
Loan Category
Allowance for credit losses on loans	$ 403	$ 406	434	440
Allowance for loan losses (as a percent)	1.30%	1.30%
Agriculture
Loan Category
Allowance for credit losses on loans	$ 70	$ 88	$ 107	$ 137
Allowance for loan losses (as a percent)	0.30%	0.30%
Other:
Loan Category
Allowance for credit losses on loans	$ 1,553	$ 1,426
Allowance for loan losses (as a percent)	4.90%	4.60%

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan class and vintage (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	$ (2)	$ (309)
Recovery	79	260
Net (Charge-off) Recovery	77	(49)
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(309)
Recovery	64	214
Net (Charge-off) Recovery	64	(95)
Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	2	4
Net (Charge-off) Recovery	2	4
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	10	42
Net (Charge-off) Recovery	10	42
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(2)
Recovery	3
Net (Charge-off) Recovery	1
2022
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (Charge-off) Recovery	1
2022 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	1
Net (Charge-off) Recovery	1
2021
Financing Receivable, Recorded Investment [Line Items]
Recovery		3
Net (Charge-off) Recovery		3
2021 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery		3
Net (Charge-off) Recovery		3
2019
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(191)
Recovery	1	2
Net (Charge-off) Recovery	1	(189)
2019 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(191)
Recovery		1
Net (Charge-off) Recovery		(190)
2019 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	1	1
Net (Charge-off) Recovery	1	1
2018
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(2)	(74)
Recovery	12	13
Net (Charge-off) Recovery	10	(61)
2018 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(74)
Recovery	12	13
Net (Charge-off) Recovery	12	(61)
2018 \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(2)
Net (Charge-off) Recovery	(2)
2017
Financing Receivable, Recorded Investment [Line Items]
Recovery		33
Net (Charge-off) Recovery		33
2017 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery		33
Net (Charge-off) Recovery		33
Prior
Financing Receivable, Recorded Investment [Line Items]
Recovery	33	200
Net (Charge-off) Recovery	33	200
Prior \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	20	158
Net (Charge-off) Recovery	20	158
Prior \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	10	42
Net (Charge-off) Recovery	10	42
Prior \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Recovery	3
Net (Charge-off) Recovery	3
Revolving Loans
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(44)
Recovery	32	9
Net (Charge-off) Recovery	32	(35)
Revolving Loans \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(44)
Recovery	32	9
Net (Charge-off) Recovery	$ 32	$ (35)

ALLOWANCE FOR CREDIT LOSSES -_5

ALLOWANCE FOR CREDIT LOSSES - Allowance for credit losses for unfunded commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 31,345	$ 40,637
Ending balance	31,442	40,874
Unfunded Commitment
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	3,266	4,177
Provision (recapture)	415	126
Ending balance	$ 3,681	$ 4,303

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
PREMISES AND EQUIPMENT
Premises and equipment	$ 95,577,000		$ 97,613,000
Less accumulated depreciation	(38,912,000)		(39,196,000)
Premises and equipment, net	56,665,000		58,417,000
Depreciation expense	840,000	$ 863,000
Loss on sale of premises and equipment	1,200,000
Proceeds from lessor for early termination of lease	1,500,000
Land
PREMISES AND EQUIPMENT
Premises and equipment	15,484,000		15,484,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	62,227,000		64,298,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	17,122,000		17,087,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	248,000		248,000
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 496,000		$ 496,000

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Changes in goodwill	0	0
Impairment of goodwill	0	0
Impairment of intangible assets	0	0
Other Intangible Assets, net
Gross Intangible Assets	21,066	21,003
Accumulated Amortization	(17,526)	(17,345)
Net Intangible Assets	$ 3,540	$ 3,658
Core deposits
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	2 years 2 months 12 days	2 years 4 months 24 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(13,582)	(13,538)
Net Intangible Assets	$ 168	$ 212
Customer relationships
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	6 years 9 months 18 days	7 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(3,646)	(3,535)
Net Intangible Assets	$ 2,983	$ 3,094
Servicing assets
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	10 years	11 years 6 months
Gross Intangible Assets	$ 687	$ 624
Accumulated Amortization	(298)	(272)
Net Intangible Assets	$ 389	$ 352

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Servicing Assets
Balance at beginning of year	$ 352	$ 190
Increase from loan sales	63	11
Amortization	(26)	(13)
Balance at end of period	$ 389	$ 188

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
BANK OWNED LIFE INSURANCE.
Balance at beginning of year	$ 73,156	$ 72,338
Net change in cash surrender value	371	390
Balance at end of year	$ 73,527	$ 72,728

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
DEPOSITS
Interest-bearing demand accounts	$ 444,571	$ 468,361
Money market accounts	1,218,082	1,209,659
Savings accounts	130,218	127,031
Certificates and other time deposits, $100,000 or greater	127,798	134,775
Certificates and other time deposits, less than $100,000	99,233	106,477
Total interest-bearing deposits	2,019,902	2,046,303
Noninterest-bearing deposits	1,801,323	1,784,981
Total deposits	$ 3,821,225	$ 3,831,284

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 36,900,000	$ 37,300,000
Brokered deposits	46,400,000	52,900,000
Overdrafts reclassified to loans	322,000	402,000
Accrued interest payable for deposits	$ 100,000	$ 128,000
Major concentrations of deposits from any single or related groups of depositors	0	0
Certificates of deposits or other time deposits were uninsured	$ 65,800,000	$ 70,500,000

LINES OF CREDIT (Details)

LINES OF CREDIT (Details) $ in Millions	3 Months Ended
LINES OF CREDIT (Details) $ in Millions	Mar. 31, 2022USD ($)	Mar. 31, 2021	Dec. 31, 2021USD ($)
LINES OF CREDIT
Capital to risk based assets ratio	16.06		16.42
FHLB advances
LINES OF CREDIT
Weighted-average interest rate , FHLB advances	1.79%	1.79%
Line of Credit \| FHLB advances
LINES OF CREDIT
Outstanding borrowings	$ 50		$ 50
Total borrowing capacity available	1,100		999.3
Letter of credit	26		26
Net capacity available	1,000		$ 923.3
Line of Credit \| Frost Line of Credit
LINES OF CREDIT
Revolving line of credit available	$ 30
Revolving line of credit draw period	12 months
Line of credit payment terms	payable quarterly in the first 12 months and thereafter, quarterly principal and interest payments are required over a term of 60 months
Debt term	60 months
Outstanding borrowings	$ 0
Line of Credit \| Frost Line of Credit \| Minimum
LINES OF CREDIT
Tangible capital	$ 300
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 of F

LINES OF CREDIT - Maturity of Federal Home Loan Bank advances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
FHLB advances Maturity
2022	$ 10,000
2023	20,000
2024	20,000
Total	50,000
Federal funds line of credit
FHLB advances Maturity
Revolving line of credit available	65,000	$ 65,000
Outstanding borrowings	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 157.7	$ 138.1
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0	0
Unfunded loan commitments to related parties	67.3	55.6
Related party deposits	$ 278.2	$ 249.9

FAIR VALUE DISCLOSURES - Financ

FAIR VALUE DISCLOSURES - Financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Financial Assets
Equity securities	$ 1,121
Debt securities available for sale	547,979	$ 425,046
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 out of level 3	0	0
U.S. Treasury securities
Financial Assets
Debt securities available for sale	109,044	11,797
State and municipal securities
Financial Assets
Debt securities available for sale	155,774	172,600
Callable debentures
Financial Assets
Debt securities available for sale	2,807	2,973
Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	89,924	62,382
Mortgage-backed securities
Financial Assets
Debt securities available for sale	189,309	174,121
Equity securities
Financial Assets
Equity securities	1,121	1,173
Recurring basis
Financial Assets
Total financial assets	552,457	428,604
Financial Liabilities
Total financial liabilities	4,469	3,543
Level 1 Inputs \| Recurring basis
Financial Assets
Equity securities	1,121	1,173
Level 1 Inputs \| Recurring basis \| U.S. Treasury securities
Financial Assets
Debt securities available for sale	109,044	11,797
Level 2 Inputs \| Recurring basis
Financial Assets
Interest rate swaps assets	4,469	3,543
Financial Liabilities
Interest rate swaps liabilities	4,469	3,543
Level 2 Inputs \| Recurring basis \| State and municipal securities
Financial Assets
Debt securities available for sale	155,774	172,600
Level 2 Inputs \| Recurring basis \| Callable debentures
Financial Assets
Debt securities available for sale	2,807	2,973
Level 2 Inputs \| Recurring basis \| Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	89,924	62,382
Level 2 Inputs \| Recurring basis \| Mortgage-backed securities
Financial Assets
Debt securities available for sale	189,309	174,121
Level 3 Inputs \| Recurring basis
Financial Assets
Credit risk participation agreement	$ 9	$ 15

FAIR VALUE DISCLOSURES - Certai

FAIR VALUE DISCLOSURES - Certain individually evaluated loans on a non recurring basis (Details) - Non-recurring basis - Level 3 Inputs - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loan Impairment Assessment
Recorded Investment	$ 10,131	$ 12,378
Specific ACL	3,903	4,720
Net	6,228	7,658
Commercial and industrial
Loan Impairment Assessment
Recorded Investment	9,188	9,624
Specific ACL	3,686	3,986
Net	5,502	5,638
Commercial real estate
Loan Impairment Assessment
Recorded Investment	824	2,629
Specific ACL	98	609
Net	726	2,020
Consumer:
Loan Impairment Assessment
Recorded Investment	119	125
Specific ACL	$ 119	$ 125

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - Non-recurring basis - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure	$ 0	$ 0
Foreclosed assets	$ 0	$ 0

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial Assets:
Accrued interest receivable	$ 9,300	$ 9,600
Financial Liabilities:
Noninterest-bearing deposits	1,801,323	1,784,981
Interest-bearing deposits	2,019,902	2,046,303
Federal Home Loan Bank advances	50,000	50,000
Fair Value
Financial Assets:
Total financial assets	3,683,588	3,917,660
Financial Liabilities:
Total financial liabilities	3,770,632	3,876,567
Carrying Amount
Financial Assets:
Total financial assets	3,722,119	3,889,340
Financial Liabilities:
Total financial liabilities	3,871,399	3,881,485
Level 1 Inputs \| Fair Value
Financial Assets:
Cash and due from banks	770,991	950,146
Financial Liabilities:
Noninterest-bearing deposits	1,801,323	1,784,981
Level 1 Inputs \| Carrying Amount
Financial Assets:
Cash and due from banks	770,991	950,146
Financial Liabilities:
Noninterest-bearing deposits	1,801,323	1,784,981
Level 2 Inputs \| Fair Value
Financial Assets:
Bank-owned life insurance	73,527	73,156
Accrued interest receivable	10,925	11,616
Servicing asset	389	352
Financial Liabilities:
Interest-bearing deposits	1,919,719	2,040,794
Federal Home Loan Bank advances	49,416	50,591
Accrued interest payable	174	201
Level 2 Inputs \| Carrying Amount
Financial Assets:
Bank-owned life insurance	73,527	73,156
Accrued interest receivable	10,925	11,616
Servicing asset	389	352
Financial Liabilities:
Interest-bearing deposits	2,019,902	2,046,303
Federal Home Loan Bank advances	50,000	50,000
Accrued interest payable	174	201
Level 3 Inputs \| Fair Value
Financial Assets:
Loans, including held for sale, net	2,810,655	2,864,663
Other investments	17,101	17,727
Level 3 Inputs \| Carrying Amount
Financial Assets:
Loans, including held for sale, net	2,849,186	2,836,343
Other investments	$ 17,101	$ 17,727

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	3 Months Ended	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	Mar. 31, 2022USD ($)DerivativeInstrument	Dec. 31, 2021USD ($)DerivativeInstrument
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer's credit worthiness	$ 0	$ 0
Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	7 years 11 months 26 days
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 264,197	270,025
Fair Value	$ 9	$ 15
Not Designated as Hedging Instruments \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Number of derivative instruments \| DerivativeInstrument	18	19
Not Designated as Hedging Instruments \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset		$ 13,563
Fair value asset		$ 15
Fixed rate	3.50%	3.50%
LIBOR \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	4 years 4 months 2 days	5 years 1 month 6 days
LIBOR \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 4 months 28 days	5 years 7 months 2 days
LIBOR \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity		8 years 2 months 26 days
LIBOR \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 4 months 28 days	5 years 7 months 2 days
LIBOR \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	4 years 4 months 2 days	5 years 1 month 6 days
LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 31,514	$ 56,440
Fair value asset	184	2,474
LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	88,755	66,650
Fair value asset	4,203	$ 875
Floating rate		2.50%
LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	13,433
Fair value asset	$ 9
Floating rate	2.50%	2.50%
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 88,755	$ 66,650
Fair value liability	$ (4,203)	$ (875)
Floating rate	2.50%	2.50%
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 31,514	$ 56,440
Fair value liability	$ (184)	$ (2,474)
U.S. Prime \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 8 months 15 days	5 years 11 months 15 days
U.S. Prime \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 8 months 15 days	5 years 11 months 15 days
U.S. Prime \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 5,113	$ 5,141
Fair value asset	$ 82	$ 194
Fixed rate	4.99%	4.99%
U.S. Prime \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 5,113	$ 5,141
Fair value liability	$ (82)	$ (194)
Fixed rate	4.99%	4.99%
Maximum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.60%	5.60%
Maximum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.15%	3.50%
Maximum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.15%	3.50%
Maximum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.60%	5.60%
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 Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	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%
Minimum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	4.85%	4.00%
Minimum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.25%	3.25%
Minimum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	3.25%	3.25%
Minimum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	4.85%	4.00%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%
Minimum \| LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lease costs
Operating lease cost	$ 427	$ 485
Short-term lease cost	4	4
Sublease income	(157)	(161)
Total lease cost	$ 274	$ 328

OPERATING LEASES - Other Inform

OPERATING LEASES - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other information
Amortization of lease right-to-use asset	$ 341	$ 385
Accretion of lease liabilities	86	100
Cash paid for amounts included in the measurement of operating lease liabilities	$ 476	$ 487
Weighted-average remaining lease term in years	10 years 4 months 24 days	10 years 8 months 12 days
Weighted-average discount rate	2.65%	2.64%

OPERATING LEASES - Maturity ana

OPERATING LEASES - Maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
1 year or less	$ 1,835
Over 1 year through 2 years	1,970
Over 2 years through 3 years	1,805
Over 3 years through 4 years	1,807
Over 4 years through 5 years	1,695
Thereafter	7,212
Total undiscounted lease liability	16,324
Less: Discount on cash flows	(2,572)
Total operating lease liability	$ 13,752	$ 14,142

OPERATING LEASES - Narrative (D

OPERATING LEASES - Narrative (Details) $ in Millions	3 Months Ended
OPERATING LEASES - Narrative (Details) $ in Millions	Mar. 31, 2022USD ($)
OPERATING LEASES
Loss on sale of premises and equipment	$ 1.2
Proceeds from lessor for early termination of lease	$ 1.5

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Commitments to extend credit, variable interest rate	$ 810,482	$ 714,084
Commitments to extend credit, fixed interest rate	96,610	60,876
Total commitments	907,092	774,960
Standby letters of credit
Loss Contingencies [Line Items]
Total commitments	$ 16,972	$ 18,109

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2017	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Term of service for 401K participation		3 months
Company's contributions to the 401K plan		$ 804,000	$ 726,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)		25.00%
Deferred plan liability		$ 1,700,000		$ 1,700,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		130,000		153,000
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		$ 962,000		$ 900,000
Annual compensation payment amount	$ 200,000
Contractual term	10 years
Commencement age	70 years

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - shares	3 Months Ended
STOCK-BASED COMPENSATION - Narrative (Details) - shares	Mar. 31, 2022	Mar. 31, 2021
Non-performance based restricted stock
STOCK-BASED COMPENSATION
Options issued	14,450	10,727
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
Number of options outstanding	35,560
2014 Plan
STOCK-BASED COMPENSATION
Number of options authorized	1,127,200
Options issued	0
Option expiration term	10 years
Options available for future grant	963,200
2014 Plan \| Granted after May 20, 2024
STOCK-BASED COMPENSATION
Number of options granted	0
2014 Plan \| Minimum
STOCK-BASED COMPENSATION
Vesting period	1 year
2014 Plan \| Maximum
STOCK-BASED COMPENSATION
Vesting period	5 years
2017 Plan
STOCK-BASED COMPENSATION
Number of options authorized	600,000
Options available for future grant	243,138

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Number of Shares Underlying Options
Outstanding at beginning of period	191,560	201,720
Exercised	0	0
Outstanding at end of period	191,560	201,720
Weighted Average Exercise Price
Outstanding at beginning of period	$ 17.53	$ 17.22
Exercised	0	0
Outstanding at end of period	$ 17.53	$ 17.22

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	175,561
Number of shares underlying options unvested	15,999
Number of shares underlying options outstanding	191,560
Weighted-average exercise price per share exercisable	$ 17.22
Weighted-average exercise price per share unvested	21
Weighted-average exercise price per share outstanding	$ 17.53	$ 17.53	$ 17.22	$ 17.22
Aggregate intrinsic value exercisable	$ 2,420
Aggregate intrinsic value unvested	160
Aggregate intrinsic value outstanding	$ 2,580
Weighted-average remaining contractual term exercisable (years)	3 years 4 months 24 days
Weighted-average remaining contractual term unvested (years)	5 years 3 months 18 days
Weighted-average remaining contractual term outstanding (years)	3 years 6 months

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Performance-based restricted stock
Number of Shares
Outstanding, beginning of period	2,250	2,250
Outstanding, end of period	2,250	2,250
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 34.40	$ 34.40
Outstanding, end of period	$ 34.40	$ 34.40
Non-performance based restricted stock
Number of Shares
Outstanding, beginning of period	83,563	129,667
Granted	38,457	33,285
Vested	(18,342)	(13,369)
Forfeited	(1,703)
Outstanding, end of period	101,975	149,583
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 27.85	$ 28.22
Granted	29.42	26.32
Vested	29.39	30.72
Forfeited	33.63
Outstanding, end of period	$ 28.07	$ 27.58

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Non-performance based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	101,975	83,563	149,583	129,667
Weighted-average grant date fair value per share	$ 28.07	$ 27.85	$ 27.58	$ 28.22
Aggregate fair value (in thousands)	$ 3,161
Weighted-average remaining vesting period (years)	1 year 6 months
Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares underlying restricted stock	2,250	2,250	2,250	2,250
Weighted-average grant date fair value per share	$ 34.40	$ 34.40	$ 34.40	$ 34.40
Aggregate fair value (in thousands)	$ 70
Weighted-average remaining vesting period (years)	1 year 6 months

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Stock options exercised, restricted stock vested, shares withheld and shares issued (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Number of Shares
Stock compensation expense	$ 483,000	$ 541,000
Unrecognized compensation expense	$ 2,200,000
Weighted average period	1 year 6 months
Non-performance based restricted stock
Number of Shares
Restricted Stock, Exercised/Vested	18,342	13,369
Restricted Stock, Shares withheld	(3,892)	(2,642)
Stock Options, Shares Issued	14,450	10,727

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($)	Dec. 15, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 16, 2021
Common Equity Tier I to RiskWeighted Assets
Dividend restrictions term		2 years
Actual amount		$ 483,115,000		$ 475,154,000
Common Equity Tier One Capital Ratio		14.97		15.31
Capital conversion buffer (as a percent)		2.50%
Minimum Capital Required Basel III (amount)		$ 225,939,000		$ 217,300,000
Minimum Capital RequiredBasel III (ratio)		7		7
Required to be Considered Well Capitalized, ratio		4.5
Tier I Capital to RiskWeighted Assets
Actual amount		$ 483,115,000		$ 475,154,000
Actual ratio		14.97		15.31
Minimum Capital Required for Capital Adequacy Purposes (amount)		$ 7
Minimum Capital Required for Capital Adequacy Purposes (ratio)		6.00%		4.50%
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 274,354,000		$ 263,864,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		8.50		8.50
Required to be Considered Well Capitalized, ratio		8
Total Capital to RiskWeighted Assets
Actual amount		$ 518,239,000		$ 509,766,000
Actual ratio		16.06		16.42
Minimum Capital Required for Capital Adequacy Purposes (ratio)		8.00%
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 338,908,000		$ 325,950,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		10.50		10.50
Leverage Ratio
Actual amount		$ 483,115,000		$ 475,154,000
Actual ratio		11.08		11.22
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 174,353,000		$ 169,470,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		4		4
Regulatory fees in the consolidated statements of income		$ 614,000	$ 556,000
Subsidiaries [Member]
Common Equity Tier I to RiskWeighted Assets
Actual amount		$ 456,183,000		$ 447,819,000
Common Equity Tier One Capital Ratio		14.13		14.43
Minimum Capital Required Basel III (amount)		$ 225,917,000		$ 217,270,000
Minimum Capital RequiredBasel III (ratio)		7		7
Required to be Considered Well Capitalized, amount		$ 209,780,000		$ 201,757,000
Required to be Considered Well Capitalized, ratio		6.50		6.50
Tier I Capital to RiskWeighted Assets
Actual amount		$ 456,183,000		$ 447,819,000
Actual ratio		14.13		14.43
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 274,328,000		$ 263,836,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		8.50		8.50
Required to be Considered Well Capitalized, amount		$ 258,191,000		$ 248,316,000
Required to be Considered Well Capitalized, ratio		8		8
Total Capital to RiskWeighted Assets
Actual amount		$ 491,307,000		$ 482,431,000
Actual ratio		15.22		15.54
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 338,876,000		$ 325,915,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		10.50		10.50
Required to be Considered Well Capitalized, amount		$ 322,739,000		$ 310,395,000
Required to be Considered Well Capitalized, ratio		10		10
Leverage Ratio
Actual amount		$ 456,183,000		$ 447,819,000
Actual ratio		10.47		10.58
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 174,248,000		$ 169,381,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		4		4
Required to be Considered Well Capitalized, amount		$ 217,810,000		$ 211,726,000
Required to be Considered Well Capitalized, ratio		5		5
OCC Consent Order
Leverage Ratio
Civil money penalty					$ 1,000,000
FinCEN Consent Order
Leverage Ratio
Civil money penalty	$ 8,000,000
Penalty paid (credited)	(1,000,000)
OCC and Fincen Consent Order [Member]
Leverage Ratio
Regulatory fees in the consolidated statements of income	$ 8,000,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
INCOME TAXES
Income tax expense	$ 2,277	$ 2,485
Effective tax rate (as a percent)	17.69%	19.87%
Statutory rate (as a percent)	21.00%	21.00%

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
EARNINGS PER SHARE
Net income for common shareholders	$ 10,595	$ 10,019
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,497	24,508
Dilutive effect of outstanding stock options and unvested restricted stock awards	108	108
Diluted weighted-average shares outstanding	24,605	24,616
Earnings per share:
Basic	$ 0.43	$ 0.41
Diluted	$ 0.43	$ 0.41

EARNINGS PER SHARE - Anti-dilut

EARNINGS PER SHARE - Anti-dilutive shares (Details) - shares	3 Months Ended		15 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding	24,605,000	24,616,000
Performance-based restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding			2,250
Non-performance based restricted stock \| Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from diluted weighted-average shares	32,998	1,800