Stellar Bancorp (STEL) 10-Q28 Oct 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Oct. 24, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	001-38280
Entity Registrant Name	Stellar Bancorp, 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	STEL
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		52,297,690
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001473844
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and due from banks	$ 41,219	$ 27,689
Interest-bearing deposits at other financial institutions	329,229	922,457
Total cash and cash equivalents	370,448	950,146
Securities	511,282	425,046
Equity investments	17,835	17,727
Loans held for sale		164
Loans, net of allowance for credit losses of $32,577 and $31,345 at September 30, 2022 and December 31, 2021, respectively	3,093,844	2,836,179
Premises and equipment, net of accumulated depreciation of $40,493 and $39,196 at September 30, 2022 and December 31, 2021, respectively	55,594	58,417
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $17,863 and $17,345 at September 30, 2022 and December 31, 2021, respectively	3,188	3,658
Bank-owned life insurance	74,274	73,156
Operating lease right-to-use assets	10,992	11,191
Deferred tax assets, net	29,581	9,973
Other assets	23,843	19,394
Total assets	4,271,831	4,486,001
Liabilities:
Noninterest-bearing deposits	1,780,473	1,784,981
Interest-bearing deposits	1,943,301	2,046,303
Total deposits	3,723,774	3,831,284
Federal Home Loan Bank advances		50,000
Operating lease liabilities	13,748	14,142
Other liabilities	32,884	28,450
Total liabilities	3,770,406	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, 24,015,272 and 25,323,558 shares issued at September 30, 2022 and December 31, 2021, respectively; 24,015,272 and 24,487,730 shares outstanding at September 30, 2022 and December 31, 2021, respectively	240	253
Additional paid-in capital	308,197	335,846
Retained earnings	262,804	237,165
Treasury stock, at cost, 835,828 shares held at December 31, 2021		(14,196)
Accumulated other comprehensive income (loss), net of tax of $(18,559) and $813 at September 30, 2022 and December 31, 2021, respectively	(69,816)	3,057
Total shareholders' equity	501,425	562,125
Total liabilities and shareholders' equity	$ 4,271,831	$ 4,486,001

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Allowance for credit losses on loans	$ 32,577	$ 31,345
Premises and equipment, accumulated depreciation	40,493	39,196
Other intangible assets, accumulated amortization	$ 17,863	$ 17,345
Preferred stock par value	$ 0.01
Preferred stock shares authorized	10,000,000
Preferred stock, shares issued	0
Common stock par value	$ 0.01
Common stock shares authorized	90,000,000
Common stock, shares issued	24,015,272	25,323,558
Common stock, shares outstanding	24,015,272	24,487,730
Treasury stock, shares	835,828
Accumulated other comprehensive income, tax	$ (18,559)	$ 813

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income
Interest and fees on loans	$ 39,058	$ 30,765	$ 102,047	$ 94,723
Securities	3,046	1,435	8,275	3,940
Interest-bearing deposits at other financial institutions	2,408	340	3,994	740
Equity investments	161	157	473	461
Total interest income	44,673	32,697	114,789	99,864
Interest expense
Deposits	1,661	1,227	4,003	3,844
Federal Home Loan Bank advances		221	272	663
Total interest expense	1,661	1,448	4,275	4,507
Net interest income	43,012	31,249	110,514	95,357
Provision (recapture) for credit losses:
Provision (recapture) for credit losses for loans	523	(5,057)	1,022	(8,961)
Provision (recapture) for credit losses for unfunded commitments	489	162	551	(605)
Total provision (recapture) for credit losses	1,012	(4,895)	1,573	(9,566)
Net interest income after provision (recapture) for credit losses	42,000	36,144	108,941	104,923
Noninterest income
Total noninterest income	3,449	5,562	12,324	12,164
Noninterest expense
Salaries and employee benefits	16,453	15,000	46,405	43,922
Occupancy expense	2,595	2,660	7,362	7,778
Professional and director fees	942	1,567	2,963	5,711
Data processing and software	1,502	1,629	4,723	4,866
Regulatory fees	599	478	2,016	1,535
Advertising, marketing and business development	350	493	965	1,288
Telephone and communications	348	516	1,151	1,529
Security and protection expense	386	425	880	1,352
Amortization of intangibles	165	182	518	559
Other expenses	5,981	1,422	10,748	4,314
Total noninterest expense	29,321	24,372	77,731	72,854
Net income before income tax expense	16,128	17,334	43,534	44,233
Income tax expense	3,381	2,913	8,485	8,090
Net income	$ 12,747	$ 14,421	$ 35,049	$ 36,143
Earnings per common share
Basic	$ 0.52	$ 0.59	$ 1.43	$ 1.48
Diluted	$ 0.52	$ 0.59	$ 1.43	$ 1.47
Deposit account service charges
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,320	$ 1,352	$ 4,076	$ 3,712
Card interchange fees
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	1,056	1,048	3,228	3,119
Earnings on bank-owned life insurance
Noninterest income
Revenue Not from Contract with Customer, Excluding Interest Income	376	2,323	1,118	3,103
Net gain on sales of assets
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	85	360	673	918
Other.
Noninterest income
Revenue from Contract with Customer, Excluding Assessed Tax	$ 612	$ 479	$ 3,229	$ 1,312

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 12,747	$ 14,421	$ 35,049	$ 36,143
Change in unrealized gains (losses) on securities available for sale arising during the period	(29,119)	(3,446)	(92,244)	(5,493)
Change in related deferred income tax	6,115	723	19,371	1,154
Other comprehensive income (loss), net of tax	(23,004)	(2,723)	(72,873)	(4,339)
Total comprehensive income (loss)	$ (10,257)	$ 11,698	$ (37,824)	$ 31,804

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Treasury stock				$ (14,369,000)
Treasury Stock, shares				(845,988)
Beginning balance at Dec. 31, 2020	$ 255,000	$ 339,334,000	$ 214,456,000		$ 6,775,000	$ 546,451,000
Beginning balance, shares at Dec. 31, 2020	25,458,816
Net income			36,143,000			36,143,000
Dividends on common stock			(9,587,000)			(9,587,000)
Stock-based compensation expense		1,813,000				1,813,000
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(87,000)				(87,000)
Vesting of restricted stock, net of shares withheld for employee tax liabilities, shares	18,997
Shares repurchased	$ (2,000)	(5,823,000)				(5,825,000)
Shares repurchased, shares	(214,219)
Other comprehensive income (loss), net of tax					(4,339,000)	(4,339,000)
Exercise of stock options, net of shares withheld for employee tax liabilities		(11,000)		$ 35,000		$ 24,000
Exercise of stock options, net of shares withheld for employee tax liabilities, shares				2,032
Retired treasury shares						214,219
Ending balance at Sep. 30, 2021	$ 253,000	335,226,000	241,012,000		2,436,000	$ 564,593,000
Ending balance, shares at Sep. 30, 2021	25,263,594
Treasury stock				$ (14,369,000)
Treasury Stock, shares				(845,988)
Beginning balance at Jun. 30, 2021	$ 253,000	335,399,000	229,785,000		5,159,000	556,227,000
Beginning balance, shares at Jun. 30, 2021	25,296,385
Net income			14,421,000			14,421,000
Dividends on common stock			(3,194,000)			(3,194,000)
Stock-based compensation expense		698,000				698,000
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(3,000)				(3,000)
Vesting of restricted stock, net of shares withheld for employee tax liabilities, shares	339
Shares repurchased		(857,000)				(857,000)
Shares repurchased, shares	(33,130)
Other comprehensive income (loss), net of tax					(2,723,000)	(2,723,000)
Exercise of stock options, net of shares withheld for employee tax liabilities		(11,000)		$ 35,000		24,000
Exercise of stock options, net of shares withheld for employee tax liabilities, shares				2,032
Ending balance at Sep. 30, 2021	$ 253,000	335,226,000	241,012,000		2,436,000	564,593,000
Ending balance, shares at Sep. 30, 2021	25,263,594
Treasury stock				$ (14,334,000)
Treasury Stock, shares				(843,956)
Treasury stock				$ (14,196,000)		(14,196,000)
Treasury Stock, shares				(835,828)
Beginning balance at Dec. 31, 2021	$ 253,000	335,846,000	237,165,000		3,057,000	562,125,000
Beginning balance, shares at Dec. 31, 2021	25,323,558
Net income			35,049,000			35,049,000
Dividends on common stock			(9,410,000)			(9,410,000)
Stock-based compensation expense		1,537,000				1,537,000
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(135,000)				(135,000)
Vesting of restricted stock, net of shares withheld for employee tax liabilities, shares	22,463
Shares repurchased	$ (5,000)	(15,036,000)				(15,041,000)
Shares repurchased, shares	(510,161)
Other comprehensive income (loss), net of tax					(72,873,000)	(72,873,000)
Exercise of stock options, net of shares withheld for employee tax liabilities	$ 6,407	23,000		$ 150,000		$ 173,000
Exercise of stock options, net of shares withheld for employee tax liabilities, shares				8,833
Retirement of Treasury Stock	$ (8,000)	(14,038,000)
Retired treasury shares	826,995					510,161
Retirement of treasury stock				$ 14,046,000
Retirement of treasury stock, shares				826,995
Ending balance at Sep. 30, 2022	$ 240,000	308,197,000	262,804,000		(69,816,000)	$ 501,425,000
Ending balance, shares at Sep. 30, 2022	24,015,272
Treasury stock				$ (14,046,000)
Treasury Stock, shares				(826,995)
Beginning balance at Jun. 30, 2022	$ 253,000	334,104,000	253,180,000		(46,812,000)	526,679,000
Beginning balance, shares at Jun. 30, 2022	25,252,256
Net income			12,747,000			12,747,000
Dividends on common stock			(3,123,000)			(3,123,000)
Stock-based compensation expense		515,000				515,000
Vesting of restricted stock, net of shares withheld for employee tax liabilities	$ 350	(4,000)				(4,000)
Shares repurchased	$ (5,000)	(12,453,000)				(12,458,000)
Shares repurchased, shares	(416,746)
Other comprehensive income (loss), net of tax					(23,004,000)	(23,004,000)
Exercise of stock options, net of shares withheld for employee tax liabilities		73,000				73,000
Exercise of stock options, net of shares withheld for employee tax liabilities, shares	6,407
Retirement of Treasury Stock	$ (8,000)	(14,038,000)				$ (14,000,000)
Retired treasury shares	826,995					826,995
Retirement of treasury stock				$ 14,046,000
Retirement of treasury stock, shares				826,995
Ending balance at Sep. 30, 2022	$ 240,000	$ 308,197,000	$ 262,804,000		$ (69,816,000)	$ 501,425,000
Ending balance, shares at Sep. 30, 2022	24,015,272
Treasury Stock, shares						(835,828)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Condensed Consolidated Statements of Changes in Shareholders' Equity
Dividends on Common Stock	$ 0.13	$ 0.13	$ 0.39	$ 0.39

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
Condensed Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 35,049,000	$ 36,143,000
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision (recapture) for credit losses	1,573,000	(9,566,000)
Depreciation expense	2,520,000	2,602,000
Amortization of intangibles	518,000	559,000
Amortization of premiums on securities	480,000	1,181,000
Amortization of lease right-to-use assets	1,008,000	1,141,000
Accretion of lease liabilities	260,000	294,000
Earnings on bank-owned life insurance	(1,118,000)	(3,103,000)
Stock-based compensation expense	1,537,000	1,813,000
Deferred income tax provision	(76,000)	2,094,000
Net gain on sales of assets	(673,000)	(918,000)
Net loss on securities	128,000	12,000
Change in operating assets and liabilities:
Loans held for sale	539,000	3,191,000
Other assets	(4,451,000)	8,061,000
Other liabilities	2,429,000	11,476,000
Total adjustments	4,674,000	18,837,000
Net cash provided by operating activities	39,723,000	54,980,000
Cash flows from investing activities:
Purchases of securities	(662,554,000)	(630,233,000)
Proceeds from sales, calls and maturities of securities	451,400,000	453,260,000
Principal repayments of securities	32,066,000	48,029,000
Net increase in loans	(204,893,000)
Net decrease in loans		312,736,000
Net (purchases) sales of loan participations	(56,596,000)	(208,000)
Proceeds from sales of Small Business Administration loans	2,802,000	3,719,000
Net return of capital from equity investments	1,302,000	1,303,000
Redemptions of bank-owned life insurance		2,670,000
Net purchases of premises and equipment	(857,000)	(710,000)
Proceeds from sales of repossessed real estate and other assets		112,000
Net cash (used in) provided by investing activities	(437,330,000)	190,678,000
Cash flows from financing activities:
Net (decrease) increase in noninterest-bearing deposits	(4,508,000)	151,719,000
Net (decrease) increase in interest-bearing deposits	(103,002,000)	78,122,000
Repayment of Federal Home Loan advances	(50,000,000)
Dividends paid on common stock	(9,578,000)	(8,833,000)
Payments to tax authorities for stock-based compensation	(135,000)	(87,000)
Proceeds from exercise of stock options	173,000	24,000
Repurchase of common stock	(15,041,000)	(5,825,000)
Net cash (used) provided by financing activities	(182,091,000)	215,120,000
Net increase (decrease) in cash, cash equivalents and restricted cash	(579,698,000)	460,778,000
Cash, cash equivalents and restricted cash, beginning	950,146,000	538,007,000
Cash, cash equivalents and restricted cash, ending	$ 370,448,000	$ 998,785,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Stellar Bancorp, Inc., formerly known as CBTX, Inc., or the Company, operated 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, as of September 30, 2022. Effective October 1, 2022, the Company completed its previously announced merger of equals, or the Merger, with Allegiance Bancshares, Inc. or Allegiance and changed its name to Stellar Bancorp, Inc. See Note: 22. Subsequent Events for further discussion regarding the Merger. 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 September 30, 2022 and December 31, 2021 and consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2022 and 2021 and consolidated cash flows for the nine months ended September 30, 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. Treasury Stock Share Repurchase Program Accounting Standards Not Yet Adopted In lieu of the TDR accounting model, creditors will apply the general loan modification guidance in Subtopic 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (i) the terms of the new loan are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks; and (ii) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the old loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. This update will become effective for the Company for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, and is not expected to have a significant impact on the Company’s financial statements. Cash Flow Reporting Supplemental disclosures of cash flow information were as follows for the periods indicated below: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for taxes $ 6,750 $ 4,559 Cash paid for interest 4,171 4,694 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset increased (decreased) in exchange for lease liabilities 809 (617) Change in liability for dividends accrued 167 (755)

SECURITIES

SECURITIES	9 Months Ended
SECURITIES	Sep. 30, 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 September 30, 2022 Debt securities available for sale: State and municipal securities $ 175,763 $ — $ (40,665) $ 135,098 U.S. Treasury securities 111,045 — (3,786) 107,259 U.S. agency securities: Callable debentures 3,000 — (436) 2,564 Collateralized mortgage obligations 97,307 — (12,909) 84,398 Mortgage-backed securities 211,497 — (30,579) 180,918 Equity securities 1,201 — (156) 1,045 Total $ 599,813 $ — $ (88,531) $ 511,282 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 September 30, 2022 Amortized cost: Debt securities available for sale: State and municipal securities $ — $ 506 $ 21,400 $ 153,857 $ 175,763 U.S. Treasury securities 69,486 38,655 2,904 — 111,045 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 2,487 94,820 97,307 Mortgage-backed securities 2 593 24,013 186,889 211,497 Equity securities 1,201 — — — 1,201 Total $ 70,689 $ 39,754 $ 53,804 $ 435,566 $ 599,813 Fair value: Debt securities available for sale: State and municipal securities $ — $ 484 $ 19,797 $ 114,817 $ 135,098 U.S. Treasury securities 68,069 36,672 2,518 — 107,259 U.S. agency securities: Callable debentures — — 2,564 — 2,564 Collateralized mortgage obligations — — 2,408 81,990 84,398 Mortgage-backed securities 2 575 22,280 158,061 180,918 Equity securities 1,045 — — — 1,045 Total $ 69,116 $ 37,731 $ 49,567 $ 354,868 $ 511,282 (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 nine months ended September 30, 2022 and 2021. At September 30, 2022 and December 31, 2021, securities with a carrying amount of $25.4 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 September 30, 2022 or December 31, 2021 were impaired due to credit quality. Accordingly, no allowance for credit losses, or ACL, was recorded in the Company’s condensed consolidated balance sheets at September 30, 2022 or during 2021. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accrued interest receivable for securities was $1.7 million and $2.0 million at September 30, 2022 and December 31, 2021, respectively, and is included in other assets in the condensed consolidated balance sheets. The Company held 472 and 115 securities at September 30, 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 September 30, 2022 Debt securities available for sale: State and municipal securities $ 110,933 $ (28,504) $ 24,165 $ (12,161) U.S. Treasury securities 104,544 (3,427) 2,715 (359) U.S. agency securities: Callable debentures 2,564 (436) — — Collateralized mortgage obligations 62,830 (8,187) 21,568 (4,722) Mortgage-backed securities 138,312 (20,371) 42,529 (10,208) Equity securities — — 1,045 (156) $ 419,183 $ (60,925) $ 92,022 $ (27,606) 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	9 Months Ended
EQUITY INVESTMENTS	Sep. 30, 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) September 30, 2022 December 31, 2021 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,991 3,967 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 4,432 4,348 $ 17,835 $ 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 September 30, 2022 and December 31, 2021, the Company had $7.9 million and $6.3 million, respectively, in outstanding unfunded commitments to these funds, which are subject to call. During the nine months ended September 30, 2022, two of these investment funds sold underlying investments for more than their book value and the Company recorded a total gain of $1.4 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 September 30, 2022.

LOANS

LOANS	9 Months Ended
LOANS	Sep. 30, 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) September 30, 2022 December 31, 2021 Commercial and industrial $ 568,071 18.1% $ 634,384 22.0% Real estate: Commercial real estate 1,242,118 39.6% 1,091,969 38.0% Construction and development 507,570 16.2% 460,719 16.0% 1-4 family residential 288,456 9.2% 277,273 9.6% Multi-family residential 370,391 11.8% 286,396 10.0% Consumer 24,509 0.8% 28,090 1.0% Agriculture 11,185 0.4% 7,941 0.3% Other 123,591 3.9% 89,655 3.1% Total gross loans 3,135,891 100.0% 2,876,427 100.0% Less allowance for credit losses for loans (32,577) (31,345) Less deferred loan fees and unearned discounts (9,470) (8,739) Less loans held for sale — (164) Loans, net $ 3,093,844 $ 2,836,179 Accrued interest receivable for loans was $9.0 million and $9.6 million at September 30, 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. Loan participations purchased and sold during the nine months ending September 30, 2022 and 2021, by loan class, were as follows: Participations Participations (Dollars in thousands) Purchased Sold September 30, 2022 Commercial and industrial $ 24,192 1,943 Commercial real estate 30,455 1,247 Construction and development — 122 Other 5,261 — $ 59,908 $ 3,312 September 30, 2021 Commercial and industrial $ — $ 1,336 Commercial real estate — 375 Construction and development — 22 Other 1,941 — $ 1,941 $ 1,733 The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the nine months ended September 30, 2022 and 2021, totaled $2.8 million and $3.7 million, respectively. Net gains recognized on sales of SBA loans were $328,000 and $436,000 for the nine months ended September 30, 2022 and 2021, respectively.

LOAN PERFORMANCE

LOAN PERFORMANCE	9 Months Ended
LOAN PERFORMANCE	Sep. 30, 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 September 30, 2022 Commercial and industrial $ 4,374 $ 3,416 $ 281 $ 8,071 $ 560,000 $ 568,071 $ — Real estate: Commercial real estate 5,360 4,447 — 9,807 1,232,311 1,242,118 — Construction and development 1,350 — — 1,350 506,220 507,570 — 1-4 family residential — 1,309 1,601 2,910 285,546 288,456 — Multi-family residential — — — — 370,391 370,391 — Consumer — — — — 24,509 24,509 — Agriculture 15 — — 15 11,170 11,185 — Other — — — — 123,591 123,591 — Total gross loans $ 11,099 $ 9,172 $ 1,882 $ 22,153 $ 3,113,738 $ 3,135,891 $ — 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) September 30, 2022 December 31, 2021 Commercial and industrial $ 7,985 $ 9,090 Real estate: Commercial real estate 11,076 11,512 Construction and development 139 142 1-4 family residential 3,176 1,784 Consumer 34 40 Total nonaccrual loans $ 22,410 $ 22,568 Interest income that would have been earned under the original terms of the nonaccrual loans was $809,000 and $568,000 for the nine months ended September 30, 2022 and 2021, respectively. Loans restructured due to the borrower’s financial difficulties, or troubled debt restructurings, during the nine months ended September 30, 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 September 30, 2022 Commercial and industrial 7 $ 3,870 $ 1,093 $ — $ — $ 2,777 Real estate: Commercial real estate 2 2,273 — — 2,040 245 Construction and development 3 431 — — 431 — Total 12 $ 6,574 $ 1,093 $ — $ 2,471 $ 3,022 September 30, 2021 Commercial and industrial 3 $ 3,256 $ 3,256 $ — $ — $ — Real estate: Commercial real estate 1 1,206 1,206 — — — 1-4 family residential 1 1,548 1,548 — — — Consumer 1 42 — — 42 — Total 6 $ 6,052 $ 6,010 $ — $ 42 $ — 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 four commercial and industrial loans totaling $1.7 million and one commercial and industrial loan of $1.5 million that were troubled debt restructurings and have payment defaults during the twelve months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021, the Company had an outstanding commitment to fund $1.1 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 September 30, 2022 Commercial and industrial $ 1,870 $ 7,934 $ 9,804 $ 51 $ 1,077 $ 10,932 Real estate: Commercial real estate 7,629 10,980 18,609 96 — 18,705 Construction and development 10,325 139 10,464 — — 10,464 1-4 family residential 26 3,149 3,175 27 — 3,202 Consumer — 34 34 — 82 116 Other 8,523 — 8,523 — — 8,523 Total $ 28,373 $ 22,236 $ 50,609 $ 174 $ 1,159 $ 51,942 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	9 Months Ended
ALLOWANCE FOR CREDIT LOSSES	Sep. 30, 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 estimated loss that is probable to be incurred. Loans deemed substandard and on nonaccrual status are individually evaluated for expected credit losses. Doubtful Loss The Company had no loans graded loss or doubtful At September 30, 2022 and December 31, 2021, the ratio of the ACL for loans to loans excluding loans held for sale was 1.04% and 1.09%, respectively. The ACL increased from $31.3 million at December 31, 2021 to $32.6 million at September 30, 2022, The total of the Company’s qualitative and quantitative factors ranged from 0.64% to 1.92% and 0.62% to 2.08% at September 30, 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 September 30, 2022, reflects the Company’s assessment based on the information available at that time. Loans by risk grades, loan class and vintage, at September 30, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 97,529 $ 131,496 $ 29,688 $ 41,184 $ 15,542 $ 5,762 $ 210,724 $ 23,616 $ 555,541 Substandard — — — 2,745 3,585 300 1,540 4,360 12,530 Total commercial and industrial 97,529 131,496 29,688 43,929 19,127 6,062 212,264 27,976 568,071 Commercial real estate: Pass 409,433 226,016 196,281 159,697 80,581 77,497 42,858 17,631 1,209,994 Special mention — — — — 2,161 — — — 2,161 Substandard — 47 1,083 8,132 6,746 3,470 — 10,485 29,963 Total commercial real estate 409,433 226,063 197,364 167,829 89,488 80,967 42,858 28,116 1,242,118 Construction and development: Pass 169,575 183,167 27,542 24,518 5,889 11,691 74,221 82 496,685 Special mention 421 — — — — — — — 421 Substandard — — 291 — 2,700 7,473 — — 10,464 Total construction and development 169,996 183,167 27,833 24,518 8,589 19,164 74,221 82 507,570 1-4 family residential: Pass 64,430 107,974 19,278 11,647 22,871 48,751 7,289 246 282,486 Substandard — 1,310 1,548 494 891 226 — 1,501 5,970 Total 1-4 family residential 64,430 109,284 20,826 12,141 23,762 48,977 7,289 1,747 288,456 Multi-family residential: Pass 50,748 35,442 59,609 17,732 35,974 170,319 567 — 370,391 Total multi-family residential 50,748 35,442 59,609 17,732 35,974 170,319 567 — 370,391 Consumer: Pass 5,356 3,290 2,485 558 446 48 12,095 — 24,278 Substandard — — 34 — — — 197 — 231 Total consumer 5,356 3,290 2,519 558 446 48 12,292 — 24,509 Agriculture: Pass 4,680 722 362 24 26 28 5,284 — 11,126 Substandard — — — — — 15 44 — 59 Total agriculture 4,680 722 362 24 26 43 5,328 — 11,185 Other: Pass 22,473 34,745 1,198 — 1,255 1,149 62,770 — 123,590 Substandard — — — 1 — — — — 1 Total other 22,473 34,745 1,198 1 1,255 1,149 62,770 — 123,591 Total Pass 824,224 722,852 336,443 255,360 162,584 315,245 415,808 41,575 3,074,091 Special mention 421 — — — 2,161 — — — 2,582 Substandard — 1,357 2,956 11,372 13,922 11,484 1,781 16,346 59,218 Total gross loans $ 824,645 $ 724,209 $ 339,399 $ 266,732 $ 178,667 $ 326,729 $ 417,589 $ 57,921 $ 3,135,891 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 September 30, 2022 Commercial and industrial $ 555,541 $ — $ 12,530 $ 568,071 Real estate: Commercial real estate 1,209,994 2,161 29,963 1,242,118 Construction and development 496,685 421 10,464 507,570 1-4 family residential 282,486 — 5,970 288,456 Multi-family residential 370,391 — — 370,391 Consumer 24,278 — 231 24,509 Agriculture 11,126 — 59 11,185 Other 123,590 — 1 123,591 Total gross loans $ 3,074,091 $ 2,582 $ 59,218 $ 3,135,891 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: September 30, 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 $ 10,932 $ 557,139 $ 568,071 $ 16,579 $ 617,805 $ 634,384 Real estate: Commercial real estate 18,705 1,223,413 1,242,118 21,057 1,070,912 1,091,969 Construction and development 10,464 497,106 507,570 12,716 448,003 460,719 1-4 family residential 3,202 285,254 288,456 3,355 273,918 277,273 Multi-family residential — 370,391 370,391 — 286,396 286,396 Consumer 116 24,393 24,509 125 27,965 28,090 Agriculture — 11,185 11,185 — 7,941 7,941 Other 8,523 115,068 123,591 5,440 84,215 89,655 Total gross loans $ 51,942 $ 3,083,949 $ 3,135,891 $ 59,272 $ 2,817,155 $ 2,876,427 The Company had collateral dependent loans totaling $1.5 million pending foreclosure at both September 30, 2022 and December 31, 2021. Activity in the ACL for loans, segregated by loan class for the nine months ended September 30, 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 September 30, 2022 Beginning balance $ 11,214 $ 11,015 $ 3,310 $ 2,105 $ 1,781 $ 406 $ 88 $ 1,426 $ 31,345 Provision (recapture) (2,101) 1,195 654 152 723 22 24 353 1,022 Charge-offs (44) (25) — (8) — (63) — — (140) Recoveries 328 — — 6 — 6 10 — 350 Net recoveries 284 (25) — (2) — (57) 10 — 210 Ending balance $ 9,397 $ 12,185 $ 3,964 $ 2,255 $ 2,504 $ 371 $ 122 $ 1,779 $ 32,577 Period-end amount allocated to: Specific reserve $ 2,517 $ 28 $ — $ — $ — $ 116 $ — $ — $ 2,661 General reserve 6,880 12,157 3,964 2,255 2,504 255 122 1,779 29,916 Total $ 9,397 $ 12,185 $ 3,964 $ 2,255 $ 2,504 $ 371 $ 122 $ 1,779 $ 32,577 September 30, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) (2,028) (2,054) (2,755) (875) (357) (85) (75) (732) (8,961) Charge-offs (495) — — (3) — (13) — — (511) Recoveries 889 — — — — 107 47 — 1,043 Net (charge-offs) recoveries 394 — — (3) — 94 47 — 532 Ending balance $ 11,401 $ 11,744 $ 3,334 $ 1,700 $ 2,156 $ 449 $ 109 $ 1,315 $ 32,208 Period-end amount allocated to: Specific reserve $ 4,343 $ 670 $ — $ — $ — $ 131 $ — $ — $ 5,144 General reserve 7,058 11,074 3,334 1,700 2,156 318 109 1,315 27,064 Total $ 11,401 $ 11,744 $ 3,334 $ 1,700 $ 2,156 $ 449 $ 109 $ 1,315 $ 32,208 The ACL for loans by loan class as of the dates indicated was as follows: September 30, 2022 December 31, 2021 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 9,397 28.9 % $ 11,214 35.7 % Real estate: Commercial real estate 12,185 37.4 % 11,015 35.1 % Construction and development 3,964 12.2 % 3,310 10.6 % 1-4 family residential 2,255 6.9 % 2,105 6.7 % Multi-family residential 2,504 7.7 % 1,781 5.7 % Consumer 371 1.1 % 406 1.3 % Agriculture 122 0.4 % 88 0.3 % Other 1,779 5.4 % 1,426 4.6 % Total allowance for credit losses for loans $ 32,577 100.0 % $ 31,345 100.0 % Loans excluding loans held for sale 3,126,421 2,867,524 ACL for loans to loans excluding loans held for sale 1.04% 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 $15.9 million and $16.0 million of nonaccrual loans had no related ACL at September 30, 2022 and December 31, 2021, respectively. Charge-offs and recoveries by loan class and vintage for the nine months ended September 30, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ (43) $ — $ — $ — $ — $ (1) $ — $ — $ (44) Recovery 1 — — — 207 55 65 — 328 Total commercial and industrial (42) — — — 207 54 65 — 284 Commercial real estate: Charge-off — — — (25) — — — — (25) Total commercial real estate loans — — — (25) — — — — (25) 1-4 family residential: Charge-off — — — — (2) (6) — — (8) Recovery — — — — — 6 — — 6 Total 1-4 family residential — — — — (2) — — — (2) Consumer: Charge-off — — (12) — — — (1) (50) (63) Recovery — — — 1 — 3 — 2 6 Total consumer — — (12) 1 — 3 (1) (48) (57) Agriculture: Recovery — — — — — 10 — — 10 Total agriculture — — — — — 10 — — 10 Total: Charge-off (43) — (12) (25) (2) (7) (1) (50) (140) Recovery 1 — — 1 207 74 65 2 350 Total $ (42) $ — $ (12) $ (24) $ 205 $ 67 $ 64 $ (48) $ 210 Charge-offs and recoveries by loan class and vintage for the nine months ended September 30, 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) $ (260) $ — $ — $ — $ (44) $ (495) Recovery — — 5 39 43 762 40 889 Total commercial and industrial — — (186) (221) 43 762 — (4) 394 1-4 family residential: Charge-off — — — — — (3) — — (3) Total 1-4 family residential — — — — — (3) — — (3) Consumer: Charge-off (10) — (3) — — — — — (13) Recovery 4 — 4 — — 99 — — 107 Total consumer (6) — 1 — — 99 — — 94 Agriculture: Recovery — — — — — 47 — — 47 Total agriculture — — — — — 47 — — 47 Total: Charge-off (10) — (194) (260) — (3) — (44) (511) Recovery 4 — 9 39 43 908 — 40 1,043 Total $ (6) $ — $ (185) $ (221) $ 43 $ 905 $ — $ (4) $ 532 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 nine months ended September 30, 2022 and 2021, was as follows: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Beginning balance $ 3,266 $ 4,177 Provision (recapture) 551 (605) Ending balance $ 3,817 $ 3,572

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	9 Months Ended
PREMISES AND EQUIPMENT	Sep. 30, 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) September 30, 2022 December 31, 2021 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 62,260 64,298 Furniture and equipment 17,619 17,087 Vehicles 248 248 Construction in progress 476 496 96,087 97,613 Less accumulated depreciation (40,493) (39,196) Premises and equipment, net $ 55,594 $ 58,417 Depreciation expense was $2.5 million and $2.6 million for the nine months ended September 30, 2022 and 2021, respectively and $842,000 and $871,000 for the three months ended September 30, 2022 and 2021, respectively. Depreciation expense is included in net occupancy expense in the Company’s condensed consolidated statements of income. During the nine months ended September 30, 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	9 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Sep. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at September 30, 2022 and December 31, 2021 and there were no changes in goodwill during the nine months ended September 30, 2022 or the year ended December 31, 2021. Based on the results of the Company’s assessment, management does not believe any other intangible assets 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 September 30, 2022 Core deposits 1.9 years $ 13,750 (13,653) $ 97 Customer relationships 6.3 years 6,629 (3,866) 2,763 Servicing assets 7.3 years 672 (344) 328 Total other intangible assets, net $ 21,051 $ (17,863) $ 3,188 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: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Balance at beginning of year $ 352 $ 190 Increase from loan sales 62 92 Decrease from serviced loans paid off or foreclosed (14) (2) Amortization (72) (44) Balance at end of period $ 328 $ 236

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	9 Months Ended
BANK OWNED LIFE INSURANCE	Sep. 30, 2022
BANK OWNED LIFE INSURANCE.
BANK OWNED LIFE INSURANCE	NOTE 9: BANK-OWNED LIFE INSURANCE During the nine months ended September 30, 2021, the Company received proceeds in the amount of $2.7 million as the owner and beneficiary under a bank-owned insurance policy as the result of claims submitted on a covered individual and the Company recorded a gain of $1.9 million. Bank-owned life insurance policies and the net change in cash surrender value during the periods indicated below were as follows: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Balance at beginning of period $ 73,156 $ 72,338 Redemptions — (2,670) Net change in cash surrender value 1,118 3,103 Balance at end of period $ 74,274 $ 72,771

DEPOSITS

DEPOSITS	9 Months Ended
DEPOSITS	Sep. 30, 2022
DEPOSITS
DEPOSITS	NOTE 10: DEPOSITS Deposits as of the dates indicated below were as follows: (Dollars in thousands) September 30, 2022 December 31, 2021 Interest-bearing demand accounts $ 415,970 $ 468,361 Money market accounts 1,144,969 1,209,659 Savings accounts 128,886 127,031 Certificates and other time deposits, $100,000 or greater 161,975 134,775 Certificates and other time deposits, less than $100,000 91,501 106,477 Total interest-bearing deposits 1,943,301 2,046,303 Noninterest-bearing deposits 1,780,473 1,784,981 Total deposits $ 3,723,774 $ 3,831,284 At September 30, 2022 and December 31, 2021, the Company had $37.6 million and $37.3 million in deposits from public entities and brokered deposits of $39.8 million and $52.9 million, respectively. At September 30, 2022 and December 31, 2021, overdrafts of $986,000 and $402,000, respectively, were reclassified to loans. Accrued interest payable for deposits was $306,000 and $128,000 at September 30, 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 September 30, 2022 or December 31, 2021 from any single or related groups of depositors. At September 30, 2022 and December 31, 2021, the Company had $101.9 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	9 Months Ended
LINES OF CREDIT	Sep. 30, 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 September 30, 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 September 30, 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 $1.2 billion at September 30, 2022 and $999.3 million at December 31, 2021. Federal Home Loan Bank advances outstanding totaled $50.0 million at December 31, 2021. These borrowings were paid in full during the nine months ended September 30, 2022. At September 30, 2022 and December 31, 2021, there were $27.0 million and $26.0 million, respectively, of 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 $1.2 billion at September 30, 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 nine months ended September 30, 2022 and 2021. The weighted-average interest rate for Federal Home Loan Bank advances for the nine months ended September 30, 2022 and 2021 was 1.99% and 1.77%, respectively. At September 30, 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 $45.0 million and $65.0 million, respectively. There were no funds under these lines of credit outstanding at September 30, 2022 or December 31, 2021.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 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	9 Months Ended
FAIR VALUE DISCLOSURES	Sep. 30, 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 nine months ended September 30, 2022 and the year ended December 31, 2021, there were no transfers assets or liabilities In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use observable market-based parameters as inputs. Valuation adjustments may be made to ensure that assets and liabilities are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value could result in different estimates of fair value. Fair value estimates are based on judgments regarding current economic conditions, risk characteristics of the various instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Financial Instruments Measured at Fair Value on a Recurring Basis The Company’s assets and liabilities measured at fair value on a recurring basis include the following: Debt Securities Available for Sale Equity Securities Interest Rate Swaps independent pricing service which uses the income approach. The income approach calls for the utilization of valuation techniques to convert future cash flows as due to be exchanged per the terms of the financial instrument, into a single present value amount. Measurement is based on the value indicated by the market expectations about those future amounts as of the measurement date. The proprietary curves of the independent pricing service utilize pricing models derived from industry standard analytic tools, considering both Level 1 and Level 2 inputs. Interest rate swaps are classified as Level 2. 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) September 30, 2022 December 31, 2021 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,045 $ 1,173 Debt securities available for sale - U.S. Treasury securities 107,259 11,797 Level 2 inputs: Debt securities available for sale: State and municipal securities 135,098 172,600 U.S. agency securities: Callable debentures 2,564 2,973 Collateralized mortgage obligations 84,398 62,382 Mortgage-backed securities 180,918 174,121 Interest rate swaps 9,944 3,543 Level 3 inputs: Credit risk participation agreement 27 15 Total fair value of financial assets $ 521,253 $ 428,604 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 9,944 $ 3,543 Total fair value of financial liabilities $ 9,944 $ 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: September 30, 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 $ 9,205 $ 2,517 $ 6,688 $ 9,624 $ 3,986 $ 5,638 Commercial real estate 733 28 705 2,629 609 2,020 Consumer 116 116 — 125 125 — Total $ 10,054 $ 2,661 $ 7,393 $ 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 nine months ended September 30, 2022 or during 2021. There were no outstanding foreclosed assets at September 30, 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: September 30, 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 $ 370,448 $ 370,448 $ 950,146 $ 950,146 Level 2 inputs: Bank-owned life insurance 74,274 74,274 73,156 73,156 Accrued interest receivable 10,777 10,777 11,616 11,616 Servicing asset 328 328 352 352 Level 3 inputs: Loans, including held for sale, net 2,906,108 3,093,844 2,864,663 2,836,343 Other investments 17,835 17,835 17,727 17,727 Total financial assets $ 3,379,770 $ 3,567,506 $ 3,917,660 $ 3,889,340 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,780,473 $ 1,780,473 $ 1,784,981 $ 1,784,981 Level 2 inputs: Interest-bearing deposits 1,938,023 1,943,301 2,040,794 2,046,303 Federal Home Loan Bank advances — — 50,591 50,000 Accrued interest payable 306 306 201 201 Total financial liabilities $ 3,718,802 $ 3,724,080 $ 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	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Sep. 30, 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 September 30, 2022 and December 31, 2021, management determined there was no such deterioration. At September 30, 2022 and December 31, 2021, the Company had 14 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. At September 30, 2022 and December 31, 2021, the Company had three and one credit risk participation agreements with another financial institution, respectively, that are associated with interest rate swaps related to loans 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 agreements. The fair value of the agreements is determined based on the market value of the underlying interest rate swaps 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) September 30, 2022 Interest rate swaps with financial institutions Other assets $ 87,537 $ 8,485 3.25% - 5.58% LIBOR 1M + 2.50% - 3.00% 4.58 Interest rate swaps with customers Other assets 22,676 1,021 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Interest rate swaps with financial institutions Other assets 5,057 438 4.99% U.S. Prime 5.21 Interest rate swaps with customers Other liabilities 5,057 (438) 4.99% U.S. Prime 5.21 Interest rate swaps with financial institutions Other liabilities 22,676 (1,021) 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Interest rate swaps with customers Other liabilities 87,537 (8,485) 3.25% - 5.58% LIBOR 1M + 2.50% - 3.00% 4.58 Credit risk participation agreement with financial institution Other assets 13,163 2 3.50% LIBOR 1M + 2.50% 7.49 Credit risk participation agreement with financial institution Other assets 8,503 25 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Total derivatives $ 252,206 $ 27 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	9 Months Ended
OPERATING LEASES	Sep. 30, 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 condensed consolidated balance sheets and operating lease liabilities in the condensed 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: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Operating lease cost $ 1,244 $ 1,436 Short-term lease cost 15 13 Sublease income (469) (472) Total lease cost $ 790 $ 977 Other information related to operating leases for the periods indicated below was as follows: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Amortization of lease right-to-use assets $ 1,008 $ 1,141 Accretion of lease liabilities 260 294 Cash paid for amounts included in the measurement of lease liabilities 1,461 1,566 Weighted-average remaining lease term in years 10.1 10.7 Weighted-average discount rate 2.63% 2.63% A maturity analysis of operating lease liabilities as of the date indicated below was as follows: (Dollars in thousands) September 30, 2022 1 year or less $ 1,775 Over 1 year through 2 years 1,928 Over 2 years through 3 years 1,966 Over 3 years through 4 years 1,928 Over 4 years through 5 years 1,821 Thereafter 6,836 Total undiscounted lease liability 16,254 Less: Discount on cash flows (2,506) Total operating lease liability $ 13,748 During the nine months ended September 30, 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. During the nine months ended September 30, 2022, the operating lease right-of-use asset and liabilities

COMMITMENTS AND CONTINGENCIES A

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK	9 Months Ended
	Sep. 30, 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 condensed 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: (Dollars in thousands) September 30, 2022 December 31, 2021 Commitments to extend credit, variable interest rate $ 853,644 $ 714,084 Commitments to extend credit, fixed interest rate 135,404 60,876 Total commitments $ 989,048 $ 774,960 Standby letters of credit $ 11,611 $ 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	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2022 and 2021, the Company contributed $1.7 million and $1.7 million to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one-fourth Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and 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 $82,000 and $153,000 at September 30, 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 $1.5 million and $900,000 at September 30, 2022 and December 31, 2021, respectively, which is included in other liabilities in the condensed consolidated balance sheets. The liability stopped accruing on October 1, 2022 and was paid in full as a result of the Merger.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 30, 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 September 30, 2022, there were options outstanding to acquire 10,160 shares of the Company’s common stock under the 2006 Plan, 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 September 30, 2022, 244,140 shares were available for future grant under the 2017 Plan. In connection with the closing of the Merger on October 1, 2022, the 2022 Omnibus Incentive Plan approved by the Company’s shareholders at the special meeting of shareholders on May 23, 2022 became effective and no grants or future awards may be made under the 2014 Plan or the 2017 Plans, or the Prior Plans. In addition, all restricted stock awards outstanding under the Prior Plans as of the effective time of the Merger became fully vested and exercisable, other than certain restricted stock awards granted to the Company’s non-employee directors on February 1, 2022. All outstanding options were fully vested prior to September 30, 2022. See Note 22: Subsequent Events. Stock option activity for the periods indicated below was as follows: Nine Months Ended September 30, 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 (15,240) 11.32 (2,032) 11.32 Forfeited/expired (10,160) 11.32 — — Outstanding at end of period 166,160 $ 18.48 199,688 $ 17.28 A summary of stock options as of the date indicated below was as follows: September 30, 2022 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 166,160 — 166,160 Weighted-average exercise price per share $ 18.48 $ — $ 18.48 Aggregate intrinsic value (in thousands) $ 1,789 $ — $ 1,789 Weighted-average remaining contractual term (years) 3.5 — 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 awards are considered legally 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 awards are non-transferable and subject to forfeiture until the restricted stock awards vest and any dividends with respect to the restricted stock awards are subject to the same restrictions, including the risk of forfeiture. Non-performance based restricted stock awards 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. 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 51,665 26.31 — — Vested (22,210) 30.57 — — Forfeited (1,411) 28.82 — — Outstanding at September 30, 2021 157,711 27.26 2,250 34.40 Outstanding at December 31, 2021 83,563 27.85 2,250 34.40 Granted 38,457 29.42 — — Vested (27,083) 29.70 — — Forfeited (1,977) 33.04 — — Outstanding at September 30, 2022 92,960 27.86 2,250 34.40 A summary of restricted stock as of the date indicated below was as follows: September 30, 2022 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 92,960 2,250 Weighted-average grant date fair value per share $ 27.86 $ 34.40 Aggregate fair value (in thousands) $ 2,719 $ 66 Weighted-average remaining vesting period (years) — — 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 Nine Months Ended September 30, 2022 Stock options 15,240 — 15,240 Non-performance based restricted stock 27,083 (4,620) 22,463 Nine Months Ended September 30, 2021 Stock options 2,032 — 2,032 Non-performance based restricted stock 22,210 (3,213) 18,997 For the nine months ended September 30, 2022 and 2021, stock compensation expense was $1.5 million and $1.8 million, respectively, and for the three months ended September 30, 2022 and 2021, stock compensation expense was $515,000 and $698,000, respectively. As of September 30, 2022, there was approximately $962,000 of total unrecognized compensation expense related to the unvested restricted stock awards. .

REGULATORY MATTERS

REGULATORY MATTERS	9 Months Ended
REGULATORY MATTERS	Sep. 30, 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 September 30, 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 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 September 30, 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 September 30, 2022 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 487,717 14.05% $ 243,053 7.00% N/A N/A Bank Only $ 479,175 13.81% $ 242,969 7.00% $ 225,614 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 487,717 14.05% $ 295,135 8.50% N/A N/A Bank Only $ 479,175 13.81% $ 295,034 8.50% $ 277,679 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 524,112 15.09% $ 364,579 10.50% N/A N/A Bank Only $ 515,570 14.85% $ 364,454 10.50% $ 347,099 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 487,717 11.42% $ 170,891 4.00% N/A N/A Bank Only $ 479,175 11.22% $ 170,856 4.00% $ 213,570 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	9 Months Ended
INCOME TAXES	Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2022 2021 2022 2021 Income tax expense $ 3,381 $ 2,913 $ 8,485 $ 8,090 Effective tax rate 20.96% 16.81% 19.49% 18.29% 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 costs related to the Merger.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2022 2021 2022 2021 Net income for common shareholders $ 12,747 $ 14,421 $ 35,049 $ 36,143 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,345 24,432 24,445 24,462 Dilutive effect of outstanding stock options and unvested restricted stock awards 119 112 107 110 Diluted weighted-average shares outstanding 24,464 24,544 24,552 24,572 Earnings per share: Basic $ 0.52 $ 0.59 $ 1.43 $ 1.48 Diluted $ 0.52 $ 0.59 $ 1.43 $ 1.47 For the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, the impact of 1,802, 5,907 and 14,858, respectively, shares of unvested restricted stock were excluded 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 and nine months ended September 30, 2021 as they are contingently issuable and the performance conditions for these awards were not deemed likely to be met at that time.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 22: SUBSEQUENT EVENTS Effective October 1, 2022, or the Effective Time, the Company completed its previously announced merger of equals with Allegiance, a Texas corporation, pursuant to an Agreement and Plan of Merger, or the Merger Agreement, dated as of November 5, 2021, by and between the Company and Allegiance. At the Effective Time, Allegiance merged with and into the Company, with the Company as the surviving corporation. At the Effective Time, the Company changed its name from CBTX, Inc. to Stellar Bancorp, Inc. and changed its ticker symbol to “STEL”. Immediately after the Merger, the Company’s wholly owned bank subsidiary, CommunityBank of Texas, N.A., merged with and into Allegiance’s wholly owned bank subsidiary, Allegiance Bank, a Texas state banking association, or Allegiance Bank, with Allegiance Bank as the surviving entity. Pursuant to the Merger Agreement, each share of Allegiance common stock, $1.00 par value per share, or Allegiance common stock, outstanding as of immediately prior to the Effective Time, other than certain shares of Allegiance common stock held by Allegiance or the Company, was converted into the right to receive 1.4184 shares, or the Exchange Ratio, of common stock of the Company, $0.01 par value per share, or the Company common stock, with cash to be paid in lieu of fractional shares, or the Merger Consideration. As a result of the Merger, Allegiance shareholders hold shares which represent approximately 53.9% of outstanding Company common stock. Each outstanding share of Company common stock remained outstanding and was unaffected by the Merger In connection with the closing of the Merger, the Company also amended and restated its certificate of formation, which among other things, increased the number of authorized shares of Company common stock from 90,000,000 to 140,000,000 shares. At the Effective Time, each outstanding equity award of the Company under the Company’s equity compensation plans fully vested, other than the restricted stock awards granted to the Company’s non-employee directors on February 1, 2022. The vesting of the non-employee director restricted stock awards was prorated based on the number of days that elapsed from January 1, 2022 through September 30, 2022 and the remaining unvested shares of restricted stock were forfeited at the Effective Time. The Merger will be accounted for as a reverse acquisition in accordance with the provisions of Accounting Standards Codification Topic 805-10, Business Combinations Additional disclosures required by ASC 805 have been omitted from this report because the information required for the disclosures, including the purchase price accounting fair value adjustments, are not available due to the close proximity of the closing of the transaction with the date the accompanying condensed consolidated financial statements were issued. Future filings will include the financial statements of Stellar for all periods presented, with recognition of the Company’s activity from the date the Merger was completed. The Company’s financial statements for all periods through the date of the Merger will not be included in future filings. The tables below present condensed financial information of Allegiance as of and for the period indicated, which is not included in the accompanying condensed financial statements of the Company. Allegiance Bancshares, Inc. Condensed Balance Sheet (Unaudited) (Dollars in thousands) September 30, 2022 Assets: Cash and cash equivalents $ 118,567 Securities 1,618,995 Loans held for investment 4,591,912 Allowance for credit losses for loans (52,147) Loans, net 4,539,765 Premises and equipment 57,837 Goodwill 223,642 Other assets 171,536 Total assets $ 6,730,342 Liabilities: Noninterest-bearing deposits $ 2,465,839 Interest-bearing deposits 3,194,880 Total deposits 5,660,719 Borrowed funds 257,000 Subordinated debt 109,241 Other liabilities 47,080 Total liabilities 6,074,040 Total shareholders’ equity 656,302 Total liabilities and shareholders’ equity $ 6,730,342 Allegiance Bancshares, Inc. Condensed Statements of Income (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2022 September 30, 2022 Net interest income $ 60,690 $ 173,344 Provision for credit losses 1,962 5,919 Net interest income after provision for credit losses 58,728 167,425 Noninterest income 2,995 9,717 Noninterest expense 44,031 116,452 Net income before income tax expense 17,692 60,690 Income tax expense 3,406 11,310 Net income $ 14,286 $ 49,380 Earnings per common share Basic $ 0.72 $ 2.44 Diluted $ 0.71 $ 2.42

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 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 September 30, 2022 and December 31, 2021 and consolidated results of operations and consolidated shareholders’ equity for the three and nine months ended September 30, 2022 and 2021 and consolidated cash flows for the nine months ended September 30, 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.
Treasury Stock	Treasury Stock
Share Repurchase Program	Share Repurchase Program
Accounting Standards Not Yet Adopted	In lieu of the TDR accounting model, creditors will apply the general loan modification guidance in Subtopic 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (i) the terms of the new loan are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks; and (ii) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the old loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. This update will become effective for the Company for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, and is not expected to have a significant impact on the Company’s financial statements.
Cash Flow Reporting	Supplemental disclosures of cash flow information were as follows for the periods indicated below: Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for taxes $ 6,750 $ 4,559 Cash paid for interest 4,171 4,694 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset increased (decreased) in exchange for lease liabilities 809 (617) Change in liability for dividends accrued 167 (755)

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Supplemental disclosures of cash flow information	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Supplemental disclosures of cash flow information: Cash paid for taxes $ 6,750 $ 4,559 Cash paid for interest 4,171 4,694 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset increased (decreased) in exchange for lease liabilities 809 (617) Change in liability for dividends accrued 167 (755)

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
SECURITIES (Tables)	Sep. 30, 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 September 30, 2022 Debt securities available for sale: State and municipal securities $ 175,763 $ — $ (40,665) $ 135,098 U.S. Treasury securities 111,045 — (3,786) 107,259 U.S. agency securities: Callable debentures 3,000 — (436) 2,564 Collateralized mortgage obligations 97,307 — (12,909) 84,398 Mortgage-backed securities 211,497 — (30,579) 180,918 Equity securities 1,201 — (156) 1,045 Total $ 599,813 $ — $ (88,531) $ 511,282 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 September 30, 2022 Amortized cost: Debt securities available for sale: State and municipal securities $ — $ 506 $ 21,400 $ 153,857 $ 175,763 U.S. Treasury securities 69,486 38,655 2,904 — 111,045 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 2,487 94,820 97,307 Mortgage-backed securities 2 593 24,013 186,889 211,497 Equity securities 1,201 — — — 1,201 Total $ 70,689 $ 39,754 $ 53,804 $ 435,566 $ 599,813 Fair value: Debt securities available for sale: State and municipal securities $ — $ 484 $ 19,797 $ 114,817 $ 135,098 U.S. Treasury securities 68,069 36,672 2,518 — 107,259 U.S. agency securities: Callable debentures — — 2,564 — 2,564 Collateralized mortgage obligations — — 2,408 81,990 84,398 Mortgage-backed securities 2 575 22,280 158,061 180,918 Equity securities 1,045 — — — 1,045 Total $ 69,116 $ 37,731 $ 49,567 $ 354,868 $ 511,282 (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 September 30, 2022 Debt securities available for sale: State and municipal securities $ 110,933 $ (28,504) $ 24,165 $ (12,161) U.S. Treasury securities 104,544 (3,427) 2,715 (359) U.S. agency securities: Callable debentures 2,564 (436) — — Collateralized mortgage obligations 62,830 (8,187) 21,568 (4,722) Mortgage-backed securities 138,312 (20,371) 42,529 (10,208) Equity securities — — 1,045 (156) $ 419,183 $ (60,925) $ 92,022 $ (27,606) 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)	9 Months Ended
EQUITY INVESTMENTS (Tables)	Sep. 30, 2022
EQUITY INVESTMENTS
Unconsolidated investments considered equity securities	(Dollars in thousands) September 30, 2022 December 31, 2021 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,991 3,967 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 4,432 4,348 $ 17,835 $ 17,727

LOANS (Tables)

LOANS (Tables)	9 Months Ended
LOANS (Tables)	Sep. 30, 2022
LOANS
Loans, by loan class	(Dollars in thousands) September 30, 2022 December 31, 2021 Commercial and industrial $ 568,071 18.1% $ 634,384 22.0% Real estate: Commercial real estate 1,242,118 39.6% 1,091,969 38.0% Construction and development 507,570 16.2% 460,719 16.0% 1-4 family residential 288,456 9.2% 277,273 9.6% Multi-family residential 370,391 11.8% 286,396 10.0% Consumer 24,509 0.8% 28,090 1.0% Agriculture 11,185 0.4% 7,941 0.3% Other 123,591 3.9% 89,655 3.1% Total gross loans 3,135,891 100.0% 2,876,427 100.0% Less allowance for credit losses for loans (32,577) (31,345) Less deferred loan fees and unearned discounts (9,470) (8,739) Less loans held for sale — (164) Loans, net $ 3,093,844 $ 2,836,179
Loan participations purchased and sold	Participations Participations (Dollars in thousands) Purchased Sold September 30, 2022 Commercial and industrial $ 24,192 1,943 Commercial real estate 30,455 1,247 Construction and development — 122 Other 5,261 — $ 59,908 $ 3,312 September 30, 2021 Commercial and industrial $ — $ 1,336 Commercial real estate — 375 Construction and development — 22 Other 1,941 — $ 1,941 $ 1,733

LOAN PERFORMANCE (Tables)

LOAN PERFORMANCE (Tables)	9 Months Ended
LOAN PERFORMANCE (Tables)	Sep. 30, 2022
LOAN PERFORMANCE
Aging analysis of past due loans, by loan class	90 Days or 90 Days 30 to 59 Days 60 to 89 Days Greater Total Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans Total Loans Still Accruing September 30, 2022 Commercial and industrial $ 4,374 $ 3,416 $ 281 $ 8,071 $ 560,000 $ 568,071 $ — Real estate: Commercial real estate 5,360 4,447 — 9,807 1,232,311 1,242,118 — Construction and development 1,350 — — 1,350 506,220 507,570 — 1-4 family residential — 1,309 1,601 2,910 285,546 288,456 — Multi-family residential — — — — 370,391 370,391 — Consumer — — — — 24,509 24,509 — Agriculture 15 — — 15 11,170 11,185 — Other — — — — 123,591 123,591 — Total gross loans $ 11,099 $ 9,172 $ 1,882 $ 22,153 $ 3,113,738 $ 3,135,891 $ — 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) September 30, 2022 December 31, 2021 Commercial and industrial $ 7,985 $ 9,090 Real estate: Commercial real estate 11,076 11,512 Construction and development 139 142 1-4 family residential 3,176 1,784 Consumer 34 40 Total nonaccrual loans $ 22,410 $ 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 September 30, 2022 Commercial and industrial 7 $ 3,870 $ 1,093 $ — $ — $ 2,777 Real estate: Commercial real estate 2 2,273 — — 2,040 245 Construction and development 3 431 — — 431 — Total 12 $ 6,574 $ 1,093 $ — $ 2,471 $ 3,022 September 30, 2021 Commercial and industrial 3 $ 3,256 $ 3,256 $ — $ — $ — Real estate: Commercial real estate 1 1,206 1,206 — — — 1-4 family residential 1 1,548 1,548 — — — Consumer 1 42 — — 42 — Total 6 $ 6,052 $ 6,010 $ — $ 42 $ —
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 September 30, 2022 Commercial and industrial $ 1,870 $ 7,934 $ 9,804 $ 51 $ 1,077 $ 10,932 Real estate: Commercial real estate 7,629 10,980 18,609 96 — 18,705 Construction and development 10,325 139 10,464 — — 10,464 1-4 family residential 26 3,149 3,175 27 — 3,202 Consumer — 34 34 — 82 116 Other 8,523 — 8,523 — — 8,523 Total $ 28,373 $ 22,236 $ 50,609 $ 174 $ 1,159 $ 51,942 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 (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	9 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Tables)	Sep. 30, 2022
ALLOWANCE FOR CREDIT LOSSES
Loans by risk grades, loan class and vintage	Loans by risk grades, loan class and vintage, at September 30, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 97,529 $ 131,496 $ 29,688 $ 41,184 $ 15,542 $ 5,762 $ 210,724 $ 23,616 $ 555,541 Substandard — — — 2,745 3,585 300 1,540 4,360 12,530 Total commercial and industrial 97,529 131,496 29,688 43,929 19,127 6,062 212,264 27,976 568,071 Commercial real estate: Pass 409,433 226,016 196,281 159,697 80,581 77,497 42,858 17,631 1,209,994 Special mention — — — — 2,161 — — — 2,161 Substandard — 47 1,083 8,132 6,746 3,470 — 10,485 29,963 Total commercial real estate 409,433 226,063 197,364 167,829 89,488 80,967 42,858 28,116 1,242,118 Construction and development: Pass 169,575 183,167 27,542 24,518 5,889 11,691 74,221 82 496,685 Special mention 421 — — — — — — — 421 Substandard — — 291 — 2,700 7,473 — — 10,464 Total construction and development 169,996 183,167 27,833 24,518 8,589 19,164 74,221 82 507,570 1-4 family residential: Pass 64,430 107,974 19,278 11,647 22,871 48,751 7,289 246 282,486 Substandard — 1,310 1,548 494 891 226 — 1,501 5,970 Total 1-4 family residential 64,430 109,284 20,826 12,141 23,762 48,977 7,289 1,747 288,456 Multi-family residential: Pass 50,748 35,442 59,609 17,732 35,974 170,319 567 — 370,391 Total multi-family residential 50,748 35,442 59,609 17,732 35,974 170,319 567 — 370,391 Consumer: Pass 5,356 3,290 2,485 558 446 48 12,095 — 24,278 Substandard — — 34 — — — 197 — 231 Total consumer 5,356 3,290 2,519 558 446 48 12,292 — 24,509 Agriculture: Pass 4,680 722 362 24 26 28 5,284 — 11,126 Substandard — — — — — 15 44 — 59 Total agriculture 4,680 722 362 24 26 43 5,328 — 11,185 Other: Pass 22,473 34,745 1,198 — 1,255 1,149 62,770 — 123,590 Substandard — — — 1 — — — — 1 Total other 22,473 34,745 1,198 1 1,255 1,149 62,770 — 123,591 Total Pass 824,224 722,852 336,443 255,360 162,584 315,245 415,808 41,575 3,074,091 Special mention 421 — — — 2,161 — — — 2,582 Substandard — 1,357 2,956 11,372 13,922 11,484 1,781 16,346 59,218 Total gross loans $ 824,645 $ 724,209 $ 339,399 $ 266,732 $ 178,667 $ 326,729 $ 417,589 $ 57,921 $ 3,135,891 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 September 30, 2022 Commercial and industrial $ 555,541 $ — $ 12,530 $ 568,071 Real estate: Commercial real estate 1,209,994 2,161 29,963 1,242,118 Construction and development 496,685 421 10,464 507,570 1-4 family residential 282,486 — 5,970 288,456 Multi-family residential 370,391 — — 370,391 Consumer 24,278 — 231 24,509 Agriculture 11,126 — 59 11,185 Other 123,590 — 1 123,591 Total gross loans $ 3,074,091 $ 2,582 $ 59,218 $ 3,135,891 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	September 30, 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 $ 10,932 $ 557,139 $ 568,071 $ 16,579 $ 617,805 $ 634,384 Real estate: Commercial real estate 18,705 1,223,413 1,242,118 21,057 1,070,912 1,091,969 Construction and development 10,464 497,106 507,570 12,716 448,003 460,719 1-4 family residential 3,202 285,254 288,456 3,355 273,918 277,273 Multi-family residential — 370,391 370,391 — 286,396 286,396 Consumer 116 24,393 24,509 125 27,965 28,090 Agriculture — 11,185 11,185 — 7,941 7,941 Other 8,523 115,068 123,591 5,440 84,215 89,655 Total gross loans $ 51,942 $ 3,083,949 $ 3,135,891 $ 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 September 30, 2022 Beginning balance $ 11,214 $ 11,015 $ 3,310 $ 2,105 $ 1,781 $ 406 $ 88 $ 1,426 $ 31,345 Provision (recapture) (2,101) 1,195 654 152 723 22 24 353 1,022 Charge-offs (44) (25) — (8) — (63) — — (140) Recoveries 328 — — 6 — 6 10 — 350 Net recoveries 284 (25) — (2) — (57) 10 — 210 Ending balance $ 9,397 $ 12,185 $ 3,964 $ 2,255 $ 2,504 $ 371 $ 122 $ 1,779 $ 32,577 Period-end amount allocated to: Specific reserve $ 2,517 $ 28 $ — $ — $ — $ 116 $ — $ — $ 2,661 General reserve 6,880 12,157 3,964 2,255 2,504 255 122 1,779 29,916 Total $ 9,397 $ 12,185 $ 3,964 $ 2,255 $ 2,504 $ 371 $ 122 $ 1,779 $ 32,577 September 30, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) (2,028) (2,054) (2,755) (875) (357) (85) (75) (732) (8,961) Charge-offs (495) — — (3) — (13) — — (511) Recoveries 889 — — — — 107 47 — 1,043 Net (charge-offs) recoveries 394 — — (3) — 94 47 — 532 Ending balance $ 11,401 $ 11,744 $ 3,334 $ 1,700 $ 2,156 $ 449 $ 109 $ 1,315 $ 32,208 Period-end amount allocated to: Specific reserve $ 4,343 $ 670 $ — $ — $ — $ 131 $ — $ — $ 5,144 General reserve 7,058 11,074 3,334 1,700 2,156 318 109 1,315 27,064 Total $ 11,401 $ 11,744 $ 3,334 $ 1,700 $ 2,156 $ 449 $ 109 $ 1,315 $ 32,208
ACL for loans by loan class	September 30, 2022 December 31, 2021 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 9,397 28.9 % $ 11,214 35.7 % Real estate: Commercial real estate 12,185 37.4 % 11,015 35.1 % Construction and development 3,964 12.2 % 3,310 10.6 % 1-4 family residential 2,255 6.9 % 2,105 6.7 % Multi-family residential 2,504 7.7 % 1,781 5.7 % Consumer 371 1.1 % 406 1.3 % Agriculture 122 0.4 % 88 0.3 % Other 1,779 5.4 % 1,426 4.6 % Total allowance for credit losses for loans $ 32,577 100.0 % $ 31,345 100.0 % Loans excluding loans held for sale 3,126,421 2,867,524 ACL for loans to loans excluding loans held for sale 1.04% 1.09%
Charge-offs and recoveries by loan class and vintage	Charge-offs and recoveries by loan class and vintage for the nine months ended September 30, 2022 were as follows: (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ (43) $ — $ — $ — $ — $ (1) $ — $ — $ (44) Recovery 1 — — — 207 55 65 — 328 Total commercial and industrial (42) — — — 207 54 65 — 284 Commercial real estate: Charge-off — — — (25) — — — — (25) Total commercial real estate loans — — — (25) — — — — (25) 1-4 family residential: Charge-off — — — — (2) (6) — — (8) Recovery — — — — — 6 — — 6 Total 1-4 family residential — — — — (2) — — — (2) Consumer: Charge-off — — (12) — — — (1) (50) (63) Recovery — — — 1 — 3 — 2 6 Total consumer — — (12) 1 — 3 (1) (48) (57) Agriculture: Recovery — — — — — 10 — — 10 Total agriculture — — — — — 10 — — 10 Total: Charge-off (43) — (12) (25) (2) (7) (1) (50) (140) Recovery 1 — — 1 207 74 65 2 350 Total $ (42) $ — $ (12) $ (24) $ 205 $ 67 $ 64 $ (48) $ 210 Charge-offs and recoveries by loan class and vintage for the nine months ended September 30, 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) $ (260) $ — $ — $ — $ (44) $ (495) Recovery — — 5 39 43 762 40 889 Total commercial and industrial — — (186) (221) 43 762 — (4) 394 1-4 family residential: Charge-off — — — — — (3) — — (3) Total 1-4 family residential — — — — — (3) — — (3) Consumer: Charge-off (10) — (3) — — — — — (13) Recovery 4 — 4 — — 99 — — 107 Total consumer (6) — 1 — — 99 — — 94 Agriculture: Recovery — — — — — 47 — — 47 Total agriculture — — — — — 47 — — 47 Total: Charge-off (10) — (194) (260) — (3) — (44) (511) Recovery 4 — 9 39 43 908 — 40 1,043 Total $ (6) $ — $ (185) $ (221) $ 43 $ 905 $ — $ (4) $ 532
Activity in the ACL for unfunded commitments	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Beginning balance $ 3,266 $ 4,177 Provision (recapture) 551 (605) Ending balance $ 3,817 $ 3,572

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	9 Months Ended
PREMISES AND EQUIPMENT (Tables)	Sep. 30, 2022
PREMISES AND EQUIPMENT
Components of premises and equipment	(Dollars in thousands) September 30, 2022 December 31, 2021 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 62,260 64,298 Furniture and equipment 17,619 17,087 Vehicles 248 248 Construction in progress 476 496 96,087 97,613 Less accumulated depreciation (40,493) (39,196) Premises and equipment, net $ 55,594 $ 58,417

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Sep. 30, 2022
GOODWILL AND OTHER INTANGIBLE ASSETS
Other intangibles	Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets September 30, 2022 Core deposits 1.9 years $ 13,750 (13,653) $ 97 Customer relationships 6.3 years 6,629 (3,866) 2,763 Servicing assets 7.3 years 672 (344) 328 Total other intangible assets, net $ 21,051 $ (17,863) $ 3,188 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	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Balance at beginning of year $ 352 $ 190 Increase from loan sales 62 92 Decrease from serviced loans paid off or foreclosed (14) (2) Amortization (72) (44) Balance at end of period $ 328 $ 236

BANK OWNED LIFE INSURANCE (Tabl

BANK OWNED LIFE INSURANCE (Tables)	9 Months Ended
BANK OWNED LIFE INSURANCE (Tables)	Sep. 30, 2022
BANK OWNED LIFE INSURANCE.
Bank-owned life insurance policies and net change in cash surrender value	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Balance at beginning of period $ 73,156 $ 72,338 Redemptions — (2,670) Net change in cash surrender value 1,118 3,103 Balance at end of period $ 74,274 $ 72,771

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
DEPOSITS (Tables)	Sep. 30, 2022
DEPOSITS
Schedule of deposits	(Dollars in thousands) September 30, 2022 December 31, 2021 Interest-bearing demand accounts $ 415,970 $ 468,361 Money market accounts 1,144,969 1,209,659 Savings accounts 128,886 127,031 Certificates and other time deposits, $100,000 or greater 161,975 134,775 Certificates and other time deposits, less than $100,000 91,501 106,477 Total interest-bearing deposits 1,943,301 2,046,303 Noninterest-bearing deposits 1,780,473 1,784,981 Total deposits $ 3,723,774 $ 3,831,284

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
FAIR VALUE DISCLOSURES (Tables)	Sep. 30, 2022
FAIR VALUE DISCLOSURES
Financial assets and financial liabilities measured at fair value on a recurring basis	(Dollars in thousands) September 30, 2022 December 31, 2021 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,045 $ 1,173 Debt securities available for sale - U.S. Treasury securities 107,259 11,797 Level 2 inputs: Debt securities available for sale: State and municipal securities 135,098 172,600 U.S. agency securities: Callable debentures 2,564 2,973 Collateralized mortgage obligations 84,398 62,382 Mortgage-backed securities 180,918 174,121 Interest rate swaps 9,944 3,543 Level 3 inputs: Credit risk participation agreement 27 15 Total fair value of financial assets $ 521,253 $ 428,604 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 9,944 $ 3,543 Total fair value of financial liabilities $ 9,944 $ 3,543
Financial assets measured at fair value on a non-recurring basis are certain impaired loans	September 30, 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 $ 9,205 $ 2,517 $ 6,688 $ 9,624 $ 3,986 $ 5,638 Commercial real estate 733 28 705 2,629 609 2,020 Consumer 116 116 — 125 125 — Total $ 10,054 $ 2,661 $ 7,393 $ 12,378 $ 4,720 $ 7,658
Fair market values and carrying amounts of financial instruments that are reported at cost	September 30, 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 $ 370,448 $ 370,448 $ 950,146 $ 950,146 Level 2 inputs: Bank-owned life insurance 74,274 74,274 73,156 73,156 Accrued interest receivable 10,777 10,777 11,616 11,616 Servicing asset 328 328 352 352 Level 3 inputs: Loans, including held for sale, net 2,906,108 3,093,844 2,864,663 2,836,343 Other investments 17,835 17,835 17,727 17,727 Total financial assets $ 3,379,770 $ 3,567,506 $ 3,917,660 $ 3,889,340 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,780,473 $ 1,780,473 $ 1,784,981 $ 1,784,981 Level 2 inputs: Interest-bearing deposits 1,938,023 1,943,301 2,040,794 2,046,303 Federal Home Loan Bank advances — — 50,591 50,000 Accrued interest payable 306 306 201 201 Total financial liabilities $ 3,718,802 $ 3,724,080 $ 3,876,567 $ 3,881,485

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative instruments outstanding	Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) September 30, 2022 Interest rate swaps with financial institutions Other assets $ 87,537 $ 8,485 3.25% - 5.58% LIBOR 1M + 2.50% - 3.00% 4.58 Interest rate swaps with customers Other assets 22,676 1,021 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Interest rate swaps with financial institutions Other assets 5,057 438 4.99% U.S. Prime 5.21 Interest rate swaps with customers Other liabilities 5,057 (438) 4.99% U.S. Prime 5.21 Interest rate swaps with financial institutions Other liabilities 22,676 (1,021) 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Interest rate swaps with customers Other liabilities 87,537 (8,485) 3.25% - 5.58% LIBOR 1M + 2.50% - 3.00% 4.58 Credit risk participation agreement with financial institution Other assets 13,163 2 3.50% LIBOR 1M + 2.50% 7.49 Credit risk participation agreement with financial institution Other assets 8,503 25 5.35% - 5.40% SOFR CME 1M + 2.50% 10.22 Total derivatives $ 252,206 $ 27 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)	9 Months Ended
OPERATING LEASES (Tables)	Sep. 30, 2022
OPERATING LEASES
Lease costs	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Operating lease cost $ 1,244 $ 1,436 Short-term lease cost 15 13 Sublease income (469) (472) Total lease cost $ 790 $ 977
Schedule of other information related to operating leases	Nine Months Ended September 30, (Dollars in thousands) 2022 2021 Amortization of lease right-to-use assets $ 1,008 $ 1,141 Accretion of lease liabilities 260 294 Cash paid for amounts included in the measurement of lease liabilities 1,461 1,566 Weighted-average remaining lease term in years 10.1 10.7 Weighted-average discount rate 2.63% 2.63%
Maturity analysis of operating lease liabilities	(Dollars in thousands) September 30, 2022 1 year or less $ 1,775 Over 1 year through 2 years 1,928 Over 2 years through 3 years 1,966 Over 3 years through 4 years 1,928 Over 4 years through 5 years 1,821 Thereafter 6,836 Total undiscounted lease liability 16,254 Less: Discount on cash flows (2,506) Total operating lease liability $ 13,748

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
Commitments to extend credit and standby letters of credit	(Dollars in thousands) September 30, 2022 December 31, 2021 Commitments to extend credit, variable interest rate $ 853,644 $ 714,084 Commitments to extend credit, fixed interest rate 135,404 60,876 Total commitments $ 989,048 $ 774,960 Standby letters of credit $ 11,611 $ 18,109

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2022
STOCK-BASED COMPENSATION
Shares of stock options exercised, restricted stock vested, shares withheld and shares issued	Exercised/Vested Shares Withheld Shares Issued Nine Months Ended September 30, 2022 Stock options 15,240 — 15,240 Non-performance based restricted stock 27,083 (4,620) 22,463 Nine Months Ended September 30, 2021 Stock options 2,032 — 2,032 Non-performance based restricted stock 22,210 (3,213) 18,997
Stock options
STOCK-BASED COMPENSATION
Stock option activity	Nine Months Ended September 30, 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 (15,240) 11.32 (2,032) 11.32 Forfeited/expired (10,160) 11.32 — — Outstanding at end of period 166,160 $ 18.48 199,688 $ 17.28
Summary of stock options	September 30, 2022 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 166,160 — 166,160 Weighted-average exercise price per share $ 18.48 $ — $ 18.48 Aggregate intrinsic value (in thousands) $ 1,789 $ — $ 1,789 Weighted-average remaining contractual term (years) 3.5 — 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 51,665 26.31 — — Vested (22,210) 30.57 — — Forfeited (1,411) 28.82 — — Outstanding at September 30, 2021 157,711 27.26 2,250 34.40 Outstanding at December 31, 2021 83,563 27.85 2,250 34.40 Granted 38,457 29.42 — — Vested (27,083) 29.70 — — Forfeited (1,977) 33.04 — — Outstanding at September 30, 2022 92,960 27.86 2,250 34.40
Summary of restricted stock	September 30, 2022 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 92,960 2,250 Weighted-average grant date fair value per share $ 27.86 $ 34.40 Aggregate fair value (in thousands) $ 2,719 $ 66 Weighted-average remaining vesting period (years) — —

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	9 Months Ended
REGULATORY MATTERS (Tables)	Sep. 30, 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 September 30, 2022 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 487,717 14.05% $ 243,053 7.00% N/A N/A Bank Only $ 479,175 13.81% $ 242,969 7.00% $ 225,614 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 487,717 14.05% $ 295,135 8.50% N/A N/A Bank Only $ 479,175 13.81% $ 295,034 8.50% $ 277,679 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 524,112 15.09% $ 364,579 10.50% N/A N/A Bank Only $ 515,570 14.85% $ 364,454 10.50% $ 347,099 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 487,717 11.42% $ 170,891 4.00% N/A N/A Bank Only $ 479,175 11.22% $ 170,856 4.00% $ 213,570 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)	9 Months Ended
INCOME TAXES (Tables)	Sep. 30, 2022
INCOME TAXES
Provision for income tax expense and effective tax rates	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2022 2021 2022 2021 Income tax expense $ 3,381 $ 2,913 $ 8,485 $ 8,090 Effective tax rate 20.96% 16.81% 19.49% 18.29%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2022
EARNINGS PER SHARE
Computations of basic and diluted earnings per share	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2022 2021 2022 2021 Net income for common shareholders $ 12,747 $ 14,421 $ 35,049 $ 36,143 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,345 24,432 24,445 24,462 Dilutive effect of outstanding stock options and unvested restricted stock awards 119 112 107 110 Diluted weighted-average shares outstanding 24,464 24,544 24,552 24,572 Earnings per share: Basic $ 0.52 $ 0.59 $ 1.43 $ 1.48 Diluted $ 0.52 $ 0.59 $ 1.43 $ 1.47

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	9 Months Ended
SUBSEQUENT EVENTS (Tables)	Sep. 30, 2022
SUBSEQUENT EVENTS
Condensed financial information of Allegiance	Allegiance Bancshares, Inc. Condensed Balance Sheet (Unaudited) (Dollars in thousands) September 30, 2022 Assets: Cash and cash equivalents $ 118,567 Securities 1,618,995 Loans held for investment 4,591,912 Allowance for credit losses for loans (52,147) Loans, net 4,539,765 Premises and equipment 57,837 Goodwill 223,642 Other assets 171,536 Total assets $ 6,730,342 Liabilities: Noninterest-bearing deposits $ 2,465,839 Interest-bearing deposits 3,194,880 Total deposits 5,660,719 Borrowed funds 257,000 Subordinated debt 109,241 Other liabilities 47,080 Total liabilities 6,074,040 Total shareholders’ equity 656,302 Total liabilities and shareholders’ equity $ 6,730,342 Allegiance Bancshares, Inc. Condensed Statements of Income (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2022 September 30, 2022 Net interest income $ 60,690 $ 173,344 Provision for credit losses 1,962 5,919 Net interest income after provision for credit losses 58,728 167,425 Noninterest income 2,995 9,717 Noninterest expense 44,031 116,452 Net income before income tax expense 17,692 60,690 Income tax expense 3,406 11,310 Net income $ 14,286 $ 49,380 Earnings per common share Basic $ 0.72 $ 2.44 Diluted $ 0.71 $ 2.42

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	Sep. 30, 2022 location
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 - Treasury stock and share repurchase program (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Retired treasury shares	826,995	510,161	214,219
Retirement of Treasury Stock	$ 14
Shares repurchased and retired, price per share		$ 29.48	$ 27.19

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash flow reporting (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash collateral used in interest rate swap transactions	$ 0		$ 1,800,000
Supplemental disclosures of cash flow information:
Cash paid for taxes	6,750,000	$ 4,559,000
Cash paid for interest	4,171,000	4,694,000
Supplemental disclosures of non-cash flow information:
Operating lease right-of-use asset, increase	809,000
Operating lease right-to-use asset increased (decreased) exchange for lease liabilities	809,000	(617,000)
Change in liability for dividends accrued	$ 167,000	$ (755,000)

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	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt securities available for sale:
Amortized cost	$ 599,813	$ 421,193
Gross Unrealized Gains		6,371
Gross Unrealized Losses	(88,531)	(2,518)
Fair Value	511,282	425,046
Equity Securities
Equity securities, Amortized Cost	1,201
Equity securities, Fair Value	1,045
State and municipal securities
Debt securities available for sale:
Amortized cost	175,763	168,541
Gross Unrealized Gains		4,451
Gross Unrealized Losses	(40,665)	(392)
Fair Value	135,098	172,600
U.S. Treasury securities
Debt securities available for sale:
Amortized cost	111,045	11,888
Gross Unrealized Losses	(3,786)	(91)
Fair Value	107,259	11,797
Callable debentures
Debt securities available for sale:
Amortized cost	3,000	3,000
Gross Unrealized Losses	(436)	(27)
Fair Value	2,564	2,973
Collateralized mortgage obligations
Debt securities available for sale:
Amortized cost	97,307	63,129
Gross Unrealized Gains		115
Gross Unrealized Losses	(12,909)	(862)
Fair Value	84,398	62,382
Mortgage-backed securities
Debt securities available for sale:
Amortized cost	211,497	173,446
Gross Unrealized Gains		1,805
Gross Unrealized Losses	(30,579)	(1,130)
Fair Value	180,918	174,121
Equity securities
Equity Securities
Equity securities, Amortized Cost	1,201	1,189
Gross Unrealized Losses	(156)	(16)
Equity securities, Fair Value	$ 1,045	$ 1,173

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	$ 70,689	$ 2,070
Amortized cost, 1 year through 5 years	39,754	7,091
Amortized cost, 5 years through 10 years	53,804	29,673
Amortized cost, After 10 years	435,566	382,359
Available-for-sale Securities, Amortized Cost Basis, Total	599,813	421,193
Available for Sale - Fair Value
Estimated fair value, 1 year or less	69,116	2,056
Estimated fair value, 1 year through 5 years	37,731	7,066
Estimated fair value, 5 years through 10 years	49,567	30,360
Estimated fair value, After 10 years	354,868	385,564
Available-for-sale Securities, Total	511,282	425,046
Equity securities - Amortized Cost
Equity securities, Amortized Cost	1,201
Equity securities - Fair Value
Equity securities, Fair Value	1,045
State and municipal securities
Available for Sale - Amortized Cost
Amortized cost, 1 year or less		881
Amortized cost, 1 year through 5 years	506
Amortized cost, 5 years through 10 years	21,400	12,339
Amortized cost, After 10 years	153,857	155,321
Available-for-sale Securities, Amortized Cost Basis, Total	175,763	168,541
Available for Sale - Fair Value
Estimated fair value, 1 year or less		883
Estimated fair value, 1 year through 5 years	484
Estimated fair value, 5 years through 10 years	19,797	12,905
Estimated fair value, After 10 years	114,817	158,812
Available-for-sale Securities, Total	135,098	172,600
U.S. Treasury securities
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	69,486
Amortized cost, 1 year through 5 years	38,655	6,138
Amortized cost, 5 years through 10 years	2,904	5,750
Available-for-sale Securities, Amortized Cost Basis, Total	111,045	11,888
Available for Sale - Fair Value
Estimated fair value, 1 year or less	68,069
Estimated fair value, 1 year through 5 years	36,672	6,072
Estimated fair value, 5 years through 10 years	2,518	5,725
Available-for-sale Securities, Total	107,259	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	2,564	2,973
Available-for-sale Securities, Total	2,564	2,973
Collateralized mortgage obligations
Available for Sale - Amortized Cost
Amortized cost, 5 years through 10 years	2,487	4,528
Amortized cost, After 10 years	94,820	58,601
Available-for-sale Securities, Amortized Cost Basis, Total	97,307	63,129
Available for Sale - Fair Value
Estimated fair value, 5 years through 10 years	2,408	4,591
Estimated fair value, After 10 years	81,990	57,791
Available-for-sale Securities, Total	84,398	62,382
Mortgage-backed securities
Available for Sale - Amortized Cost
Amortized cost, 1 year or less	2
Amortized cost, 1 year through 5 years	593	953
Amortized cost, 5 years through 10 years	24,013	4,056
Amortized cost, After 10 years	186,889	168,437
Available-for-sale Securities, Amortized Cost Basis, Total	211,497	173,446
Available for Sale - Fair Value
Estimated fair value, 1 year or less	2
Estimated fair value, 1 year through 5 years	575	994
Estimated fair value, 5 years through 10 years	22,280	4,166
Estimated fair value, After 10 years	158,061	168,961
Available-for-sale Securities, Total	180,918	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	1,201	1,189
Equity securities - Fair Value
Equity securities, Fair Value	$ 1,045	$ 1,173

SECURITIES - Securities carryin

SECURITIES - Securities carrying amount (Details)	9 Months Ended	12 Months Ended
SECURITIES - Securities carrying amount (Details)	Sep. 30, 2022 USD ($) security	Dec. 31, 2021 USD ($) security	Sep. 30, 2021 USD ($)
SECURITIES.
Carrying amount of securities sold in the period	$ 0		$ 0
Carrying value of securities pledged	25,400,000	$ 25,600,000
Securities, ACL recorded	0
Accrued interest receivable for securities	$ 1,700,000	$ 2,000,000
Securities held in a gross unrealized loss position \| security	472	115

SECURITIES - Securities with un

SECURITIES - Securities with unrealized losses, aggregated by category and the length of time (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investment securities
Fair Value - Less Than Twelve Months	$ 419,183	$ 180,901
Gross Unrealized Losses - Less Than Twelve Months	(60,925)	(2,511)
Fair Value - Twelve Months or More	92,022	498
Gross Unrealized Losses - Twelve Months or More	(27,606)	(7)
State and municipal securities
Investment securities
Fair Value - Less Than Twelve Months	110,933	36,962
Gross Unrealized Losses - Less Than Twelve Months	(28,504)	(387)
Fair Value - Twelve Months or More	24,165	257
Gross Unrealized Losses - Twelve Months or More	(12,161)	(5)
U.S. Treasury securities
Investment securities
Fair Value - Less Than Twelve Months	104,544	11,797
Gross Unrealized Losses - Less Than Twelve Months	(3,427)	(91)
Fair Value - Twelve Months or More	2,715
Gross Unrealized Losses - Twelve Months or More	(359)
Callable debentures
Investment securities
Fair Value - Less Than Twelve Months	2,564	2,973
Gross Unrealized Losses - Less Than Twelve Months	(436)	(27)
Collateralized mortgage obligations
Investment securities
Fair Value - Less Than Twelve Months	62,830	40,776
Gross Unrealized Losses - Less Than Twelve Months	(8,187)	(860)
Fair Value - Twelve Months or More	21,568	241
Gross Unrealized Losses - Twelve Months or More	(4,722)	(2)
Mortgage-backed securities
Investment securities
Fair Value - Less Than Twelve Months	138,312	87,220
Gross Unrealized Losses - Less Than Twelve Months	(20,371)	(1,130)
Fair Value - Twelve Months or More	42,529
Gross Unrealized Losses - Twelve Months or More	(10,208)
Equity securities
Investment securities
Fair Value - Less Than Twelve Months		1,173
Gross Unrealized Losses - Less Than Twelve Months		$ (16)
Fair Value - Twelve Months or More	1,045
Gross Unrealized Losses - Twelve Months or More	$ (156)

EQUITY INVESTMENTS - Equity Inv

EQUITY INVESTMENTS - Equity Investments (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) fund $ / shares	Dec. 31, 2021 USD ($)
Equity investments
Equity investments, total	$ 17,835	$ 17,727
Number of private investments \| fund	2
Gain on sale of investments	$ 1,400
Federal Reserve stock
Equity investments
Equity investments, total	9,271	9,271
Federal Home Loan Bank Stock
Equity investments
Equity investments, total	$ 3,991	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	4,432	4,348
Unfunded commitments	$ 7,900	$ 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	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Loans
Total gross loans	$ 3,135,891	$ 2,876,427
Percentage of loan	100%	100%
Less allowance for credit losses for loans	$ (32,577)	$ (31,345)	$ (32,208)	$ (40,637)
Less deferred loan fees and unearned discounts	(9,470)	(8,739)
Less loans held for sale		(164)
Loans, net	3,093,844	2,836,179
Accrued interest receivable	9,000	9,600
Commercial and industrial
Loans
Total gross loans	$ 568,071	$ 634,384
Percentage of loan	18.10%	22%
Less allowance for credit losses for loans	$ (9,397)	$ (11,214)	(11,401)	(13,035)
Commercial real estate
Loans
Total gross loans	$ 1,242,118	$ 1,091,969
Percentage of loan	39.60%	38%
Less allowance for credit losses for loans	$ (12,185)	$ (11,015)	(11,744)	(13,798)
Construction and development
Loans
Total gross loans	$ 507,570	$ 460,719
Percentage of loan	16.20%	16%
Less allowance for credit losses for loans	$ (3,964)	$ (3,310)	(3,334)	(6,089)
1-4 family residential
Loans
Total gross loans	$ 288,456	$ 277,273
Percentage of loan	9.20%	9.60%
Less allowance for credit losses for loans	$ (2,255)	$ (2,105)	(1,700)	(2,578)
Multifamily residential
Loans
Total gross loans	$ 370,391	$ 286,396
Percentage of loan	11.80%	10%
Less allowance for credit losses for loans	$ (2,504)	$ (1,781)	(2,156)	(2,513)
Consumer
Loans
Total gross loans	$ 24,509	$ 28,090
Percentage of loan	0.80%	1%
Less allowance for credit losses for loans	$ (371)	$ (406)	(449)	(440)
Agriculture
Loans
Total gross loans	$ 11,185	$ 7,941
Percentage of loan	0.40%	0.30%
Less allowance for credit losses for loans	$ (122)	$ (88)	(109)	(137)
Other
Loans
Total gross loans	$ 123,591	$ 89,655
Percentage of loan	3.90%	3.10%
Less allowance for credit losses for loans	$ (1,779)	$ (1,426)	$ (1,315)	$ (2,047)

LOANS - Loan participations pur

LOANS - Loan participations purchased and sold and loans guaranteed (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Loans
Participations Purchased	$ 59,908,000	$ 1,941,000
Participations Sold	3,312,000	1,733,000
Net gains recognized on sales of SBA loans	328,000	436,000
SBA loans that were sold with servicing retained	2,800,000	3,700,000
Commercial and industrial
Loans
Participations Purchased	24,192,000
Participations Sold	1,943,000	1,336,000
Commercial real estate
Loans
Participations Purchased	30,455,000
Participations Sold	1,247,000	375,000
Construction and development
Loans
Participations Sold	122,000	22,000
Other
Loans
Participations Purchased	$ 5,261,000	$ 1,941,000

LOAN PERFORMANCE - Aging analys

LOAN PERFORMANCE - Aging analysis of past due loans, by loan class (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Aging analysis
Total gross loans	$ 3,135,891,000		$ 2,876,427,000
Interest income that would have been earned under the original terms of the nonaccrual loans	809,000	$ 568,000
Total Current Loans
Aging analysis
Loans	3,113,738,000		2,875,291,000
30 to 59 days past due
Aging analysis
Loans	11,099,000		905,000
60 to 89 days past due
Aging analysis
Loans	9,172,000		34,000
90 days or greater past due
Aging analysis
Loans	1,882,000		197,000
Total Past Due
Aging analysis
Loans	22,153,000		1,136,000
Commercial and industrial
Aging analysis
Total gross loans	568,071,000		634,384,000
Commercial and industrial \| Total Current Loans
Aging analysis
Loans	560,000,000		634,370,000
Commercial and industrial \| 30 to 59 days past due
Aging analysis
Loans	4,374,000		14,000
Commercial and industrial \| 60 to 89 days past due
Aging analysis
Loans	3,416,000
Commercial and industrial \| 90 days or greater past due
Aging analysis
Loans	281,000
Commercial and industrial \| Total Past Due
Aging analysis
Loans	8,071,000		14,000
Commercial real estate
Aging analysis
Total gross loans	1,242,118,000		1,091,969,000
Commercial real estate \| Total Current Loans
Aging analysis
Loans	1,232,311,000		1,091,264,000
Commercial real estate \| 30 to 59 days past due
Aging analysis
Loans	5,360,000		650,000
Commercial real estate \| 60 to 89 days past due
Aging analysis
Loans	4,447,000
Commercial real estate \| 90 days or greater past due
Aging analysis
Loans			55,000
Commercial real estate \| Total Past Due
Aging analysis
Loans	9,807,000		705,000
Construction and development
Aging analysis
Total gross loans	507,570,000		460,719,000
Construction and development \| Total Current Loans
Aging analysis
Loans	506,220,000		460,577,000
Construction and development \| 30 to 59 days past due
Aging analysis
Loans	1,350,000
Construction and development \| 90 days or greater past due
Aging analysis
Loans			142,000
Construction and development \| Total Past Due
Aging analysis
Loans	1,350,000		142,000
1-4 family residential
Aging analysis
Total gross loans	288,456,000		277,273,000
1-4 family residential \| Total Current Loans
Aging analysis
Loans	285,546,000		277,089,000
1-4 family residential \| 30 to 59 days past due
Aging analysis
Loans			150,000
1-4 family residential \| 60 to 89 days past due
Aging analysis
Loans	1,309,000		34,000
1-4 family residential \| 90 days or greater past due
Aging analysis
Loans	1,601,000
1-4 family residential \| Total Past Due
Aging analysis
Loans	2,910,000		184,000
Multifamily residential
Aging analysis
Total gross loans	370,391,000		286,396,000
Multifamily residential \| Total Current Loans
Aging analysis
Loans	370,391,000		286,396,000
Consumer
Aging analysis
Total gross loans	24,509,000		28,090,000
Consumer \| Total Current Loans
Aging analysis
Loans	24,509,000		28,040,000
Consumer \| 30 to 59 days past due
Aging analysis
Loans			50,000
Consumer \| Total Past Due
Aging analysis
Loans			50,000
Agriculture
Aging analysis
Total gross loans	11,185,000		7,941,000
Agriculture \| Total Current Loans
Aging analysis
Loans	11,170,000		7,941,000
Agriculture \| 30 to 59 days past due
Aging analysis
Loans	15,000
Agriculture \| Total Past Due
Aging analysis
Loans	15,000
Other
Aging analysis
Total gross loans	123,591,000		89,655,000
Other:
Aging analysis
Total gross loans	123,591,000		89,655,000
Other: \| Total Current Loans
Aging analysis
Loans	$ 123,591,000		89,614,000
Other: \| 30 to 59 days past due
Aging analysis
Loans			41,000
Other: \| Total Past Due
Aging analysis
Loans			$ 41,000

LOAN PERFORMANCE - Nonaccrual l

LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Nonaccrual loans
Total nonaccrual loans	$ 22,410	$ 22,568
Commercial and industrial
Nonaccrual loans
Total nonaccrual loans	7,985	9,090
Commercial real estate
Nonaccrual loans
Total nonaccrual loans	11,076	11,512
Construction and development
Nonaccrual loans
Total nonaccrual loans	139	142
1-4 family residential
Nonaccrual loans
Total nonaccrual loans	3,176	1,784
Other:
Nonaccrual loans
Total nonaccrual loans	$ 34	$ 40

LOAN PERFORMANCE - Troubled deb

LOAN PERFORMANCE - Troubled debt restructurings granted (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan
Restructured loans
Number of loans \| loan	12	6
Premodification outstanding Recorded Investment	$ 6,574	$ 6,052
Restructured Payments
Restructured loans
Postmodification recorded investment	1,093	6,010
Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment	2,471	$ 42
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	3
Premodification outstanding Recorded Investment	$ 3,870	$ 3,256
Commercial and industrial \| Restructured Payments
Restructured loans
Postmodification recorded investment	1,093	$ 3,256
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	2	1
Premodification outstanding Recorded Investment	$ 2,273	$ 1,206
Commercial real estate \| Restructured Payments
Restructured loans
Postmodification recorded investment		$ 1,206
Commercial real estate \| Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment	2,040
Commercial real estate \| Extended Maturity, Restructured Payments and Adjusted Interest Rate
Restructured loans
Postmodification recorded investment	$ 245
Construction and development
Restructured loans
Number of loans \| loan	3
Premodification outstanding Recorded Investment	$ 431
Construction and development \| Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment	$ 431
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
Consumer
Restructured loans
Number of loans \| loan		1
Premodification outstanding Recorded Investment		$ 42
Consumer \| Extended Maturity and Restructured Payments
Restructured loans
Postmodification recorded investment		$ 42

LOAN PERFORMANCE - Troubled d_2

LOAN PERFORMANCE - Troubled debt restructurings with payment defaults (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan
Restructured loans
TDRs with payment defaults, Balance \| $	$ 1.7	$ 1.5
Commercial and industrial
Restructured loans
TDRs with payment defaults, Number of Loans \| loan	4	1

LOAN PERFORMANCE - Outstanding

LOAN PERFORMANCE - Outstanding Troubled debt restructurings and other loans individually evaluated (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Restructured loans
Accruing TDR	$ 28,373	$ 30,709
Non-Accrual TDR	22,236	20,019
Total TDR	50,609	50,728
Other Non-Accrual	174	2,549
Other Accruing	1,159	5,995
Total Individually Evaluated	51,942	59,272
Commercial and industrial
Restructured loans
Accruing TDR	1,870	5,661
Non-Accrual TDR	7,934	6,851
Total TDR	9,804	12,512
Other Non-Accrual	51	2,239
Other Accruing	1,077	1,828
Total Individually Evaluated	10,932	16,579
Commercial real estate
Restructured loans
Accruing TDR	7,629	5,755
Non-Accrual TDR	10,980	11,401
Total TDR	18,609	17,156
Other Non-Accrual	96	111
Other Accruing		3,790
Total Individually Evaluated	18,705	21,057
Construction and development
Restructured loans
Accruing TDR	10,325	12,282
Non-Accrual TDR	139
Total TDR	10,464	12,282
Other Non-Accrual		142
Other Accruing		292
Total Individually Evaluated	10,464	12,716
1-4 family residential
Restructured loans
Accruing TDR	26	1,571
Non-Accrual TDR	3,149	1,727
Total TDR	3,175	3,298
Other Non-Accrual	27	57
Total Individually Evaluated	3,202	3,355
Consumer
Restructured loans
Non-Accrual TDR	34	40
Total TDR	34	40
Other Accruing	82	85
Total Individually Evaluated	116	125
Other:
Restructured loans
Accruing TDR	8,523	5,440
Total TDR	8,523	5,440
Total Individually Evaluated	8,523	5,440
Unfunded Commitment
Restructured loans
Commitment to fund on loans that were previously restructured	$ 1,100	$ 2,500

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details)	9 Months Ended	12 Months Ended
ALLOWANCE FOR CREDIT LOSSES (Details)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 3,135,891,000	$ 2,876,427,000
Allowance for credit losses for loans (as a percent)	1.04	1.09
ACL balance	$ 32,600,000	$ 31,300,000
Loss
Financing Receivable, Recorded Investment [Line Items]
Total loans	0
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0
Minimum
Financing Receivable, Recorded Investment [Line Items]
Total factors (as a percent)	0.64	0.62
Maximum
Financing Receivable, Recorded Investment [Line Items]
Total factors (as a percent)	1.92	2.08

ALLOWANCE FOR CREDIT LOSSES - L

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
2022	$ 824,645,000
2021	724,209,000	$ 841,230,000
2020	339,399,000	406,444,000
2019	266,732,000	391,641,000
2018	178,667,000	294,205,000
2017		136,629,000
Prior	326,729,000	317,225,000
Revolving Loans	417,589,000	451,550,000
Converted revolving loan	57,921,000	37,503,000
Total Loans	3,135,891,000	2,876,427,000
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	568,071,000	634,384,000
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,242,118,000	1,091,969,000
Construction and development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	507,570,000	460,719,000
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	288,456,000	277,273,000
Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	370,391,000	286,396,000
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	24,509,000	28,090,000
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Total Loans	11,185,000	7,941,000
Other:
Financing Receivable, Recorded Investment [Line Items]
Total Loans	123,591,000	89,655,000
Loans by risk grades \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	97,529,000
2021	131,496,000	230,432,000
2020	29,688,000	54,758,000
2019	43,929,000	62,656,000
2018	19,127,000	28,149,000
2017		8,121,000
Prior	6,062,000	5,924,000
Revolving Loans	212,264,000	233,071,000
Converted revolving loan	27,976,000	11,273,000
Total Loans	568,071,000	634,384,000
Loans by risk grades \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2022	409,433,000
2021	226,063,000	243,666,000
2020	197,364,000	200,578,000
2019	167,829,000	245,900,000
2018	89,488,000	164,081,000
2017		70,329,000
Prior	80,967,000	87,506,000
Revolving Loans	42,858,000	55,253,000
Converted revolving loan	28,116,000	24,656,000
Total Loans	1,242,118,000	1,091,969,000
Loans by risk grades \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	169,996,000
2021	183,167,000	197,900,000
2020	27,833,000	100,182,000
2019	24,518,000	54,017,000
2018	8,589,000	8,627,000
2017		26,340,000
Prior	19,164,000	859,000
Revolving Loans	74,221,000	72,698,000
Converted revolving loan	82,000	96,000
Total Loans	507,570,000	460,719,000
Loans by risk grades \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2022	64,430,000
2021	109,284,000	115,451,000
2020	20,826,000	24,846,000
2019	12,141,000	20,724,000
2018	23,762,000	32,318,000
2017		21,733,000
Prior	48,977,000	53,717,000
Revolving Loans	7,289,000	8,018,000
Converted revolving loan	1,747,000	466,000
Total Loans	288,456,000	277,273,000
Loans by risk grades \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2022	50,748,000
2021	35,442,000	16,744,000
2020	59,609,000	18,236,000
2019	17,732,000	6,473,000
2018	35,974,000	58,750,000
2017		9,784,000
Prior	170,319,000	167,033,000
Revolving Loans	567,000	9,376,000
Total Loans	370,391,000	286,396,000
Loans by risk grades \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2022	5,356,000
2021	3,290,000	6,427,000
2020	2,519,000	3,677,000
2019	558,000	1,199,000
2018	446,000	714,000
2017		277,000
Prior	48,000	11,000
Revolving Loans	12,292,000	15,006,000
Converted revolving loan		779,000
Total Loans	24,509,000	28,090,000
Loans by risk grades \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2022	4,680,000
2021	722,000	2,954,000
2020	362,000	423,000
2019	24,000	42,000
2018	26,000	57,000
2017		35,000
Prior	43,000	18,000
Revolving Loans	5,328,000	4,222,000
Converted revolving loan		190,000
Total Loans	11,185,000	7,941,000
Loans by risk grades \| Other:
Financing Receivable, Recorded Investment [Line Items]
2022	22,473,000
2021	34,745,000	27,656,000
2020	1,198,000	3,744,000
2019	1,000	630,000
2018	1,255,000	1,509,000
2017		10,000
Prior	1,149,000	2,157,000
Revolving Loans	62,770,000	53,906,000
Converted revolving loan		43,000
Total Loans	123,591,000	89,655,000
Pass
Financing Receivable, Recorded Investment [Line Items]
2022	824,224,000
2021	722,852,000	841,230,000
2020	336,443,000	400,127,000
2019	255,360,000	375,159,000
2018	162,584,000	262,223,000
2017		125,958,000
Prior	315,245,000	312,527,000
Revolving Loans	415,808,000	445,115,000
Converted revolving loan	41,575,000	21,046,000
Total Loans	3,074,091,000	2,783,385,000
Pass \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2022	97,529,000
2021	131,496,000	230,432,000
2020	29,688,000	53,744,000
2019	41,184,000	60,514,000
2018	15,542,000	21,059,000
2017		8,117,000
Prior	5,762,000	5,533,000
Revolving Loans	210,724,000	228,247,000
Converted revolving loan	23,616,000	5,773,000
Total Loans	555,541,000	613,419,000
Pass \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2022	409,433,000
2021	226,016,000	243,666,000
2020	196,281,000	197,625,000
2019	159,697,000	232,074,000
2018	80,581,000	141,591,000
2017		69,995,000
Prior	77,497,000	84,398,000
Revolving Loans	42,858,000	55,253,000
Converted revolving loan	17,631,000	13,799,000
Total Loans	1,209,994,000	1,038,401,000
Pass \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	169,575,000
2021	183,167,000	197,900,000
2020	27,542,000	99,420,000
2019	24,518,000	54,017,000
2018	5,889,000	7,127,000
2017		16,133,000
Prior	11,691,000	142,000
Revolving Loans	74,221,000	72,698,000
Converted revolving loan	82,000	96,000
Total Loans	496,685,000	447,533,000
Pass \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2022	64,430,000
2021	107,974,000	115,451,000
2020	19,278,000	23,298,000
2019	11,647,000	20,210,000
2018	22,871,000	31,416,000
2017		21,607,000
Prior	48,751,000	53,253,000
Revolving Loans	7,289,000	6,516,000
Converted revolving loan	246,000	466,000
Total Loans	282,486,000	272,217,000
Pass \| Multifamily residential
Financing Receivable, Recorded Investment [Line Items]
2022	50,748,000
2021	35,442,000	16,744,000
2020	59,609,000	18,236,000
2019	17,732,000	6,473,000
2018	35,974,000	58,750,000
2017		9,784,000
Prior	170,319,000	167,033,000
Revolving Loans	567,000	9,376,000
Total Loans	370,391,000	286,396,000
Pass \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2022	5,356,000
2021	3,290,000	6,427,000
2020	2,485,000	3,637,000
2019	558,000	1,199,000
2018	446,000	714,000
2017		277,000
Prior	48,000	11,000
Revolving Loans	12,095,000	14,921,000
Converted revolving loan		679,000
Total Loans	24,278,000	27,865,000
Pass \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
2022	4,680,000
2021	722,000	2,954,000
2020	362,000	423,000
2019	24,000	42,000
2018	26,000	57,000
2017		35,000
Prior	28,000
Revolving Loans	5,284,000	4,198,000
Converted revolving loan		190,000
Total Loans	11,126,000	7,899,000
Pass \| Other:
Financing Receivable, Recorded Investment [Line Items]
2022	22,473,000
2021	34,745,000	27,656,000
2020	1,198,000	3,744,000
2019		630,000
2018	1,255,000	1,509,000
2017		10,000
Prior	1,149,000	2,157,000
Revolving Loans	62,770,000	53,906,000
Converted revolving loan		43,000
Total Loans	123,590,000	89,655,000
Special Mention
Financing Receivable, Recorded Investment [Line Items]
2022	421,000
2020		470,000
2019		1,149,000
2018	2,161,000	7,949,000
Prior		62,000
Revolving Loans		3,177,000
Total Loans	2,582,000	12,807,000
Special Mention \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2019		290,000
2018		15,000
Revolving Loans		3,177,000
Total Loans		3,482,000
Special Mention \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2019		859,000
2018	2,161,000	7,934,000
Prior		62,000
Total Loans	2,161,000	8,855,000
Special Mention \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2022	421,000
2020		470,000
Total Loans	421,000	470,000
Substandard
Financing Receivable, Recorded Investment [Line Items]
2021	1,357,000
2020	2,956,000	5,847,000
2019	11,372,000	15,333,000
2018	13,922,000	24,033,000
2017		10,671,000
Prior	11,484,000	4,636,000
Revolving Loans	1,781,000	3,258,000
Converted revolving loan	16,346,000	16,457,000
Total Loans	59,218,000	80,235,000
Substandard \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
2020		1,014,000
2019	2,745,000	1,852,000
2018	3,585,000	7,075,000
2017		4,000
Prior	300,000	391,000
Revolving Loans	1,540,000	1,647,000
Converted revolving loan	4,360,000	5,500,000
Total Loans	12,530,000	17,483,000
Substandard \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
2021	47,000
2020	1,083,000	2,953,000
2019	8,132,000	12,967,000
2018	6,746,000	14,556,000
2017		334,000
Prior	3,470,000	3,046,000
Converted revolving loan	10,485,000	10,857,000
Total Loans	29,963,000	44,713,000
Substandard \| Construction and development
Financing Receivable, Recorded Investment [Line Items]
2020	291,000	292,000
2018	2,700,000	1,500,000
2017		10,207,000
Prior	7,473,000	717,000
Total Loans	10,464,000	12,716,000
Substandard \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
2021	1,310,000
2020	1,548,000	1,548,000
2019	494,000	514,000
2018	891,000	902,000
2017		126,000
Prior	226,000	464,000
Revolving Loans		1,502,000
Converted revolving loan	1,501,000
Total Loans	5,970,000	5,056,000
Substandard \| Consumer
Financing Receivable, Recorded Investment [Line Items]
2020	34,000	40,000
Revolving Loans	197,000	85,000
Converted revolving loan		100,000
Total Loans	231,000	225,000
Substandard \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Prior	15,000	18,000
Revolving Loans	44,000	24,000
Total Loans	59,000	$ 42,000
Substandard \| Other:
Financing Receivable, Recorded Investment [Line Items]
2019	1,000
Total Loans	1,000
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 0

ALLOWANCE FOR CREDIT LOSSES -_2

ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades and loan class (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Amortized cost of loans by loan type
Total gross loans	$ 3,135,891,000	$ 2,876,427,000
Pass
Amortized cost of loans by loan type
Total gross loans	3,074,091,000	2,783,385,000
Special Mention
Amortized cost of loans by loan type
Total gross loans	2,582,000	12,807,000
Substandard
Amortized cost of loans by loan type
Total gross loans	59,218,000	80,235,000
Doubtful
Amortized cost of loans by loan type
Total gross loans	0
Commercial and industrial
Amortized cost of loans by loan type
Total gross loans	568,071,000	634,384,000
Commercial and industrial \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	568,071,000	634,384,000
Commercial and industrial \| Pass
Amortized cost of loans by loan type
Total gross loans	555,541,000	613,419,000
Commercial and industrial \| Special Mention
Amortized cost of loans by loan type
Total gross loans		3,482,000
Commercial and industrial \| Substandard
Amortized cost of loans by loan type
Total gross loans	12,530,000	17,483,000
Commercial real estate
Amortized cost of loans by loan type
Total gross loans	1,242,118,000	1,091,969,000
Commercial real estate \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	1,242,118,000	1,091,969,000
Commercial real estate \| Pass
Amortized cost of loans by loan type
Total gross loans	1,209,994,000	1,038,401,000
Commercial real estate \| Special Mention
Amortized cost of loans by loan type
Total gross loans	2,161,000	8,855,000
Commercial real estate \| Substandard
Amortized cost of loans by loan type
Total gross loans	29,963,000	44,713,000
Construction and development
Amortized cost of loans by loan type
Total gross loans	507,570,000	460,719,000
Construction and development \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	507,570,000	460,719,000
Construction and development \| Pass
Amortized cost of loans by loan type
Total gross loans	496,685,000	447,533,000
Construction and development \| Special Mention
Amortized cost of loans by loan type
Total gross loans	421,000	470,000
Construction and development \| Substandard
Amortized cost of loans by loan type
Total gross loans	10,464,000	12,716,000
1-4 family residential
Amortized cost of loans by loan type
Total gross loans	288,456,000	277,273,000
1-4 family residential \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	288,456,000	277,273,000
1-4 family residential \| Pass
Amortized cost of loans by loan type
Total gross loans	282,486,000	272,217,000
1-4 family residential \| Substandard
Amortized cost of loans by loan type
Total gross loans	5,970,000	5,056,000
Multifamily residential
Amortized cost of loans by loan type
Total gross loans	370,391,000	286,396,000
Multifamily residential \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	370,391,000	286,396,000
Multifamily residential \| Pass
Amortized cost of loans by loan type
Total gross loans	370,391,000	286,396,000
Consumer
Amortized cost of loans by loan type
Total gross loans	24,509,000	28,090,000
Consumer \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	24,509,000	28,090,000
Consumer \| Pass
Amortized cost of loans by loan type
Total gross loans	24,278,000	27,865,000
Consumer \| Substandard
Amortized cost of loans by loan type
Total gross loans	231,000	225,000
Agriculture
Amortized cost of loans by loan type
Total gross loans	11,185,000	7,941,000
Agriculture \| Loans by risk grades
Amortized cost of loans by loan type
Total gross loans	11,185,000	7,941,000
Agriculture \| Pass
Amortized cost of loans by loan type
Total gross loans	11,126,000	7,899,000
Agriculture \| Substandard
Amortized cost of loans by loan type
Total gross loans	59,000	42,000
Other
Amortized cost of loans by loan type
Total gross loans	123,591,000	$ 89,655,000
Other \| Pass
Amortized cost of loans by loan type
Total gross loans	123,590,000
Other \| Substandard
Amortized cost of loans by loan type
Total gross loans	$ 1,000

ALLOWANCE FOR CREDIT LOSSES -_3

ALLOWANCE FOR CREDIT LOSSES - Loans individually evaluated and collectively evaluated (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loan Impairment Assessment
Individually Evaluated Loans	$ 51,942	$ 59,272
Collectively Evaluated Loans	3,083,949	2,817,155
Total Loans	3,135,891	2,876,427
Loans Collateral	1,500
Nonaccrual loans had no related ACL	15,900	16,000
Nonaccrual loans ACL	0
Commercial and industrial
Loan Impairment Assessment
Individually Evaluated Loans	10,932	16,579
Collectively Evaluated Loans	557,139	617,805
Total Loans	568,071	634,384
Commercial real estate
Loan Impairment Assessment
Individually Evaluated Loans	18,705	21,057
Collectively Evaluated Loans	1,223,413	1,070,912
Total Loans	1,242,118	1,091,969
Construction and development
Loan Impairment Assessment
Individually Evaluated Loans	10,464	12,716
Collectively Evaluated Loans	497,106	448,003
Total Loans	507,570	460,719
1-4 family residential
Loan Impairment Assessment
Individually Evaluated Loans	3,202	3,355
Collectively Evaluated Loans	285,254	273,918
Total Loans	288,456	277,273
Multifamily residential
Loan Impairment Assessment
Collectively Evaluated Loans	370,391	286,396
Total Loans	370,391	286,396
Consumer
Loan Impairment Assessment
Individually Evaluated Loans	116	125
Collectively Evaluated Loans	24,393	27,965
Total Loans	24,509	28,090
Agriculture
Loan Impairment Assessment
Collectively Evaluated Loans	11,185	7,941
Total Loans	11,185	7,941
Other
Loan Impairment Assessment
Individually Evaluated Loans	8,523	5,440
Collectively Evaluated Loans	115,068	84,215
Total Loans	$ 123,591	$ 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Loan losses segregated by loan class
Beginning balance			$ 31,345	$ 40,637
Provision (recapture) for credit losses for loans	$ 523	$ (5,057)	1,022	(8,961)
Charge-offs			(140)	(511)
Recoveries			350	1,043
Net (Charge-off) Recovery			210	532
Ending balance	32,577	32,208	32,577	32,208
Specific reserve
Loan losses segregated by loan class
Ending balance	2,661	5,144	2,661	5,144
General reserve
Loan losses segregated by loan class
Ending balance	29,916	27,064	29,916	27,064
Commercial and industrial
Loan losses segregated by loan class
Beginning balance			11,214	13,035
Provision (recapture) for credit losses for loans			(2,101)	(2,028)
Charge-offs			(44)	(495)
Recoveries			328	889
Net (Charge-off) Recovery			284	394
Ending balance	9,397	11,401	9,397	11,401
Commercial and industrial \| Specific reserve
Loan losses segregated by loan class
Ending balance	2,517	4,343	2,517	4,343
Commercial and industrial \| General reserve
Loan losses segregated by loan class
Ending balance	6,880	7,058	6,880	7,058
Commercial real estate
Loan losses segregated by loan class
Beginning balance			11,015	13,798
Provision (recapture) for credit losses for loans			1,195	(2,054)
Charge-offs			(25)
Net (Charge-off) Recovery			(25)
Ending balance	12,185	11,744	12,185	11,744
Commercial real estate \| Specific reserve
Loan losses segregated by loan class
Ending balance	28	670	28	670
Commercial real estate \| General reserve
Loan losses segregated by loan class
Ending balance	12,157	11,074	12,157	11,074
Construction and development
Loan losses segregated by loan class
Beginning balance			3,310	6,089
Provision (recapture) for credit losses for loans			654	(2,755)
Ending balance	3,964	3,334	3,964	3,334
Construction and development \| General reserve
Loan losses segregated by loan class
Ending balance	3,964	3,334	3,964	3,334
1-4 family residential
Loan losses segregated by loan class
Beginning balance			2,105	2,578
Provision (recapture) for credit losses for loans			152	(875)
Charge-offs			(8)	(3)
Recoveries			6
Net (Charge-off) Recovery			(2)	(3)
Ending balance	2,255	1,700	2,255	1,700
1-4 family residential \| General reserve
Loan losses segregated by loan class
Ending balance	2,255	1,700	2,255	1,700
Multifamily residential
Loan losses segregated by loan class
Beginning balance			1,781	2,513
Provision (recapture) for credit losses for loans			723	(357)
Ending balance	2,504	2,156	2,504	2,156
Multifamily residential \| General reserve
Loan losses segregated by loan class
Ending balance	2,504	2,156	2,504	2,156
Consumer
Loan losses segregated by loan class
Beginning balance			406	440
Provision (recapture) for credit losses for loans			22	(85)
Charge-offs			(63)	(13)
Recoveries			6	107
Net (Charge-off) Recovery			(57)	94
Ending balance	371	449	371	449
Consumer \| Specific reserve
Loan losses segregated by loan class
Ending balance	116	131	116	131
Consumer \| General reserve
Loan losses segregated by loan class
Ending balance	255	318	255	318
Agriculture
Loan losses segregated by loan class
Beginning balance			88	137
Provision (recapture) for credit losses for loans			24	(75)
Recoveries			10	47
Net (Charge-off) Recovery			10	47
Ending balance	122	109	122	109
Agriculture \| General reserve
Loan losses segregated by loan class
Ending balance	122	109	122	109
Other
Loan losses segregated by loan class
Beginning balance			1,426	2,047
Provision (recapture) for credit losses for loans			353	(732)
Ending balance	1,779	1,315	1,779	1,315
Other \| General reserve
Loan losses segregated by loan class
Ending balance	1,779	1,315	1,779	1,315
Unfunded Commitment
Loan losses segregated by loan class
Beginning balance			3,266	4,177
Ending balance	$ 3,817	$ 3,572	$ 3,817	$ 3,572

ALLOWANCE FOR CREDIT LOSSES -_4

ALLOWANCE FOR CREDIT LOSSES - ACL for loans by loan class (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Loan Category
Allowance for credit losses on loans	$ 32,577	$ 31,345	$ 32,208	$ 40,637
Allowance for loan losses (as a percent)	100%	100%
Loans excluding loans held for sale	$ 3,126,421	$ 2,867,524
ACL for loans to loans excluding loans held for sale	1.04%	1.09%
Commercial and industrial
Loan Category
Allowance for credit losses on loans	$ 9,397	$ 11,214	11,401	13,035
Allowance for loan losses (as a percent)	28.90%	35.70%
Commercial real estate
Loan Category
Allowance for credit losses on loans	$ 12,185	$ 11,015	11,744	13,798
Allowance for loan losses (as a percent)	37.40%	35.10%
Construction and development
Loan Category
Allowance for credit losses on loans	$ 3,964	$ 3,310	3,334	6,089
Allowance for loan losses (as a percent)	12.20%	10.60%
1-4 family residential
Loan Category
Allowance for credit losses on loans	$ 2,255	$ 2,105	1,700	2,578
Allowance for loan losses (as a percent)	6.90%	6.70%
Multifamily residential
Loan Category
Allowance for credit losses on loans	$ 2,504	$ 1,781	2,156	2,513
Allowance for loan losses (as a percent)	7.70%	5.70%
Consumer
Loan Category
Allowance for credit losses on loans	$ 371	$ 406	449	440
Allowance for loan losses (as a percent)	1.10%	1.30%
Agriculture
Loan Category
Allowance for credit losses on loans	$ 122	$ 88	$ 109	$ 137
Allowance for loan losses (as a percent)	0.40%	0.30%
Other:
Loan Category
Allowance for credit losses on loans	$ 1,779	$ 1,426
Allowance for loan losses (as a percent)	5.40%	4.60%

ALLOWANCE FOR CREDIT LOSSES - C

ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan class and vintage (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	$ (140)	$ (511)
Recovery	350	1,043
Net (Charge-off) Recovery	210	532
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(44)	(495)
Recovery	328	889
Net (Charge-off) Recovery	284	394
Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(63)	(13)
Recovery	6	107
Net (Charge-off) Recovery	(57)	94
Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	10	47
Net (Charge-off) Recovery	10	47
1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(8)	(3)
Recovery	6
Net (Charge-off) Recovery	(2)	(3)
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(25)
Net (Charge-off) Recovery	(25)
2022
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(43)
Recovery	1
Net (Charge-off) Recovery	(42)
2022 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(43)
Recovery	1
Net (Charge-off) Recovery	(42)
2021
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(10)
Recovery		4
Net (Charge-off) Recovery		(6)
2021 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(10)
Recovery		4
Net (Charge-off) Recovery		(6)
2020
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(12)
Net (Charge-off) Recovery	(12)
2020 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(12)
Net (Charge-off) Recovery	(12)
2019
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(25)	(194)
Recovery	1	9
Net (Charge-off) Recovery	(24)	(185)
2019 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(191)
Recovery		5
Net (Charge-off) Recovery		(186)
2019 \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(3)
Recovery	1	4
Net (Charge-off) Recovery	1	1
2019 \| Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(25)
Net (Charge-off) Recovery	(25)
2018
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(2)	(260)
Recovery	207	39
Net (Charge-off) Recovery	205	(221)
2018 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(260)
Recovery	207	39
Net (Charge-off) Recovery	207	(221)
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		43
Net (Charge-off) Recovery		43
2017 \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery		43
Net (Charge-off) Recovery		43
Prior
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(7)	(3)
Recovery	74	908
Net (Charge-off) Recovery	67	905
Prior \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Recovery	55	762
Net (Charge-off) Recovery	54	762
Prior \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Recovery	3	99
Net (Charge-off) Recovery	3	99
Prior \| Agriculture
Financing Receivable, Recorded Investment [Line Items]
Recovery	10	47
Net (Charge-off) Recovery	10	47
Prior \| 1-4 family residential
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(6)	(3)
Recovery	6
Net (Charge-off) Recovery		(3)
Revolving Loans
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Recovery	65
Net (Charge-off) Recovery	64
Revolving Loans \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Recovery	65
Net (Charge-off) Recovery	65
Revolving Loans \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(1)
Net (Charge-off) Recovery	(1)
Converted Revolving Loans
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(50)	(44)
Recovery	2	40
Net (Charge-off) Recovery	(48)	(4)
Converted Revolving Loans \| Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Charge-offs		(44)
Recovery		40
Net (Charge-off) Recovery		$ (4)
Converted Revolving Loans \| Consumer
Financing Receivable, Recorded Investment [Line Items]
Charge-offs	(50)
Recovery	2
Net (Charge-off) Recovery	$ (48)

ALLOWANCE FOR CREDIT LOSSES -_5

ALLOWANCE FOR CREDIT LOSSES - Allowance for credit losses for unfunded commitments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 31,345	$ 40,637
Ending balance	32,577	32,208
Unfunded Commitment
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	3,266	4,177
Provision (recapture)	551	(605)
Ending balance	$ 3,817	$ 3,572

PREMISES AND EQUIPMENT - Compon

PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
PREMISES AND EQUIPMENT
Premises and equipment	$ 96,087,000		$ 96,087,000		$ 97,613,000
Less accumulated depreciation	(40,493,000)		(40,493,000)		(39,196,000)
Premises and equipment, net	55,594,000		55,594,000		58,417,000
Depreciation expense	842,000	$ 871,000	2,520,000	$ 2,602,000
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		15,484,000
Buildings and leasehold improvements
PREMISES AND EQUIPMENT
Premises and equipment	62,260,000		62,260,000		64,298,000
Furniture and equipment
PREMISES AND EQUIPMENT
Premises and equipment	17,619,000		17,619,000		17,087,000
Vehicles
PREMISES AND EQUIPMENT
Premises and equipment	248,000		248,000		248,000
Construction in progress
PREMISES AND EQUIPMENT
Premises and equipment	$ 476,000		$ 476,000		$ 496,000

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 80,950	$ 80,950
Changes in goodwill	0	0
Impairment of goodwill	0
Impairment of intangible assets	0
Other Intangible Assets, net
Gross Intangible Assets	21,051	21,003
Accumulated Amortization	(17,863)	(17,345)
Net Intangible Assets	$ 3,188	$ 3,658
Core deposits
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	1 year 10 months 24 days	2 years 4 months 24 days
Gross Intangible Assets	$ 13,750	$ 13,750
Accumulated Amortization	(13,653)	(13,538)
Net Intangible Assets	$ 97	$ 212
Customer relationships
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	6 years 3 months 18 days	7 years
Gross Intangible Assets	$ 6,629	$ 6,629
Accumulated Amortization	(3,866)	(3,535)
Net Intangible Assets	$ 2,763	$ 3,094
Servicing assets
Other Intangible Assets, net
Finite-Lived Intangible Asset, Useful Life	7 years 3 months 18 days	11 years 6 months
Gross Intangible Assets	$ 672	$ 624
Accumulated Amortization	(344)	(272)
Net Intangible Assets	$ 328	$ 352

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Servicing Assets
Balance at beginning of year	$ 352	$ 190
Increase from loan sales	62	92
Decrease from serviced loans paid off or foreclosed	(14)	(2)
Amortization	(72)	(44)
Balance at end of period	$ 328	$ 236

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
BANK OWNED LIFE INSURANCE.
Proceeds from bank-owned life insurance policy		$ 2,700
Gain from bank-owned life insurance		1,900
Balance at beginning of period	$ 73,156	72,338
Redemptions		(2,670)
Net change in cash surrender value	1,118	3,103
Balance at end of period	$ 74,274	$ 72,771

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
DEPOSITS
Interest-bearing demand accounts	$ 415,970	$ 468,361
Money market accounts	1,144,969	1,209,659
Savings accounts	128,886	127,031
Certificates and other time deposits, $100,000 or greater	161,975	134,775
Certificates and other time deposits, less than $100,000	91,501	106,477
Total interest-bearing deposits	1,943,301	2,046,303
Noninterest-bearing deposits	1,780,473	1,784,981
Total deposits	$ 3,723,774	$ 3,831,284

DEPOSITS - Schedule of maturiti

DEPOSITS - Schedule of maturities of time deposits (Details)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Deposits from public entities	$ 37,600,000	$ 37,300,000
Brokered deposits	39,800,000	52,900,000
Overdrafts reclassified to loans	986,000	402,000
Accrued interest payable for deposits	$ 306,000	128,000
Major concentrations of deposits from any single or related groups of depositors	0
Certificates of deposits or other time deposits were uninsured	$ 101,900,000	$ 70,500,000

LINES OF CREDIT (Details)

LINES OF CREDIT (Details) $ in Millions	9 Months Ended
LINES OF CREDIT (Details) $ in Millions	Sep. 30, 2022 USD ($)	Sep. 30, 2021	Dec. 31, 2021 USD ($)
LINES OF CREDIT
Capital to risk based assets ratio	0.1509		0.1642
FHLB advances
LINES OF CREDIT
Weighted-average interest rate , FHLB advances	1.99%	1.77%
Line of Credit \| FHLB advances
LINES OF CREDIT
Outstanding borrowings			$ 50
Total borrowing capacity available	$ 1,200		999.3
Letter of credit	27		26
Net capacity available	1,200		$ 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	0.0100
Capital to risk based assets ratio	0.12
Line of Credit \| Frost Line of Credit \| Maximum
LINES OF CREDIT
Free cash flow coverage ratio	0.0125
Capital to risk based assets ratio	0.15

LINES OF CREDIT - Maturity of F

LINES OF CREDIT - Maturity of Federal Home Loan Bank advances (Details) - Federal funds line of credit - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
LINES OF CREDIT
Revolving line of credit available	$ 45	$ 65
Outstanding borrowings	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
RELATED PARTY TRANSACTIONS
Loans to related parties	$ 109.6	$ 138.1
Deemed nonaccrual, past due, restructured or classified as potential problem loans	0
Unfunded loan commitments to related parties	101.1	55.6
Related party deposits	$ 243.4	$ 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	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Financial Assets
Equity securities	$ 1,045
Debt securities available for sale	511,282	$ 425,046
Financial Liabilities
Transfers from level 1 and level 2	0
Transfers from level 2 and level 1	0
Transfers from level 1 and level 2	0	0
Transfers from level 2 and level 1	0
Transfers into level 3	0
Transfers out of level 3	0
U.S. Treasury securities
Financial Assets
Debt securities available for sale	107,259	11,797
State and municipal securities
Financial Assets
Debt securities available for sale	135,098	172,600
Callable debentures
Financial Assets
Debt securities available for sale	2,564	2,973
Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	84,398	62,382
Mortgage-backed securities
Financial Assets
Debt securities available for sale	180,918	174,121
Equity securities
Financial Assets
Equity securities	1,045	1,173
Recurring basis
Financial Assets
Total financial assets	521,253	428,604
Financial Liabilities
Total financial liabilities	9,944	3,543
Level 1 Inputs \| Recurring basis
Financial Assets
Equity securities	1,045	1,173
Level 1 Inputs \| Recurring basis \| U.S. Treasury securities
Financial Assets
Debt securities available for sale	107,259	11,797
Level 2 Inputs \| Recurring basis
Financial Assets
Interest rate swaps assets	9,944	3,543
Financial Liabilities
Interest rate swaps liabilities	9,944	3,543
Level 2 Inputs \| Recurring basis \| State and municipal securities
Financial Assets
Debt securities available for sale	135,098	172,600
Level 2 Inputs \| Recurring basis \| Callable debentures
Financial Assets
Debt securities available for sale	2,564	2,973
Level 2 Inputs \| Recurring basis \| Collateralized mortgage obligations
Financial Assets
Debt securities available for sale	84,398	62,382
Level 2 Inputs \| Recurring basis \| Mortgage-backed securities
Financial Assets
Debt securities available for sale	180,918	174,121
Level 3 Inputs \| Recurring basis
Financial Assets
Credit risk participation agreement	$ 27	$ 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	Sep. 30, 2022	Dec. 31, 2021
Loan Impairment Assessment
Recorded Investment	$ 10,054	$ 12,378
Specific ACL	2,661	4,720
Net	7,393	7,658
Commercial and industrial
Loan Impairment Assessment
Recorded Investment	9,205	9,624
Specific ACL	2,517	3,986
Net	6,688	5,638
Commercial real estate
Loan Impairment Assessment
Recorded Investment	733	2,629
Specific ACL	28	609
Net	705	2,020
Consumer:
Loan Impairment Assessment
Recorded Investment	116	125
Specific ACL	$ 116	$ 125

FAIR VALUE DISCLOSURES - Non Fi

FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - Non-recurring basis - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 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

FAIR VALUE DISCLOSURES - Fair m

FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial Assets:
Accrued interest receivable	$ 9,000	$ 9,600
Financial Liabilities:
Noninterest-bearing deposits	1,780,473	1,784,981
Interest-bearing deposits	1,943,301	2,046,303
Federal Home Loan Bank advances		50,000
Fair Value
Financial Assets:
Total financial assets	3,379,770	3,917,660
Financial Liabilities:
Total financial liabilities	3,718,802	3,876,567
Carrying Amount
Financial Assets:
Total financial assets	3,567,506	3,889,340
Financial Liabilities:
Total financial liabilities	3,724,080	3,881,485
Level 1 Inputs \| Fair Value
Financial Assets:
Cash and due from banks	370,448	950,146
Financial Liabilities:
Noninterest-bearing deposits	1,780,473	1,784,981
Level 1 Inputs \| Carrying Amount
Financial Assets:
Cash and due from banks	370,448	950,146
Financial Liabilities:
Noninterest-bearing deposits	1,780,473	1,784,981
Level 2 Inputs \| Fair Value
Financial Assets:
Bank-owned life insurance	74,274	73,156
Accrued interest receivable	10,777	11,616
Servicing asset	328	352
Financial Liabilities:
Interest-bearing deposits	1,938,023	2,040,794
Federal Home Loan Bank advances		50,591
Accrued interest payable	306	201
Level 2 Inputs \| Carrying Amount
Financial Assets:
Bank-owned life insurance	74,274	73,156
Accrued interest receivable	10,777	11,616
Servicing asset	328	352
Financial Liabilities:
Interest-bearing deposits	1,943,301	2,046,303
Federal Home Loan Bank advances		50,000
Accrued interest payable	306	201
Level 3 Inputs \| Fair Value
Financial Assets:
Loans, including held for sale, net	2,906,108	2,864,663
Other investments	17,835	17,727
Level 3 Inputs \| Carrying Amount
Financial Assets:
Loans, including held for sale, net	3,093,844	2,836,343
Other investments	$ 17,835	$ 17,727

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	9 Months Ended	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands	Sep. 30, 2022 USD ($) DerivativeInstrument	Dec. 31, 2021 USD ($) DerivativeInstrument
Derivative Instruments and Hedging Activities Disclosures [Table]
Deterioration in the customer's credit worthiness	$ 0
Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate		2.50%
Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate		2.50%
Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Number of derivative instruments \| DerivativeInstrument	3	1
Floating rate	2.50%	2.50%
Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional Amount	$ 252,206	$ 270,025
Fair Value	$ 27	$ 15
Not Designated as Hedging Instruments \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Number of derivative instruments \| DerivativeInstrument	14	19
LIBOR \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity		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	4 years 6 months 29 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	7 years 5 months 26 days	8 years 2 months 26 days
LIBOR \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	4 years 6 months 29 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		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	$ 22,676	$ 56,440
Fair value asset	1,021	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	87,537	66,650
Fair value asset	8,485	875
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	13,163	13,563
Fair value asset	$ 2	$ 15
Fixed rate	3.50%	3.50%
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 87,537	$ 66,650
Fair value liability	(8,485)	(875)
LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	22,676	56,440
Fair value liability	$ (1,021)	$ (2,474)
SOFR CME \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	10 years 2 months 19 days
SOFR CME \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	10 years 2 months 19 days
SOFR CME \| Other liabilities. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	10 years 2 months 19 days
SOFR CME \| Not Designated as Hedging Instruments \| Other Assets. \| Credit risk participation agreement with financial institution
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 8,503
Fair value asset	$ 25
U.S. Prime \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity		5 years 11 months 15 days
U.S. Prime \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 2 months 15 days
U.S. Prime \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Weighted Average Maturity	5 years 2 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 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		$ 5,141
Fair value asset		$ 194
Fixed rate		4.99%
U.S. Prime \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount asset	$ 5,057
Fair value asset	$ 438
Fixed rate	4.99%
U.S. Prime \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Notional amount liability	$ 5,057
Fair value liability	$ (438)
Fixed rate	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		$ 5,141
Fair value liability		$ (194)
Fixed rate		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%
Maximum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.58%	3.50%
Maximum \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.58%	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%
Maximum \| LIBOR \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate		3%
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%
Maximum \| LIBOR \| Not Designated as Hedging Instruments \| Other liabilities. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	3%
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%
Minimum \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum \| Interest rate swaps with financial institutions
Derivative Instruments and Hedging Activities Disclosures [Table]
Floating rate	2.50%	2.50%
Minimum \| Not Designated as Hedging Instruments \| Other Assets. \| Interest rate swaps with customers
Derivative Instruments and Hedging Activities Disclosures [Table]
Fixed rate	5.35%	4%
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	5.35%	4%

OPERATING LEASES - Lease Costs

OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Lease costs
Operating lease cost	$ 1,244	$ 1,436
Short-term lease cost	15	13
Sublease income	(469)	(472)
Total lease cost	$ 790	$ 977

OPERATING LEASES - Other Inform

OPERATING LEASES - Other Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Other information
Amortization of lease right-to-use assets	$ 1,008	$ 1,141
Accretion of lease liabilities	260	294
Cash paid for amounts included in the measurement of operating lease liabilities	$ 1,461	$ 1,566
Weighted-average remaining lease term in years	10 years 1 month 6 days	10 years 8 months 12 days
Weighted-average discount rate	2.63%	2.63%

OPERATING LEASES - Maturity ana

OPERATING LEASES - Maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
1 year or less	$ 1,775
Over 1 year through 2 years	1,928
Over 2 years through 3 years	1,966
Over 3 years through 4 years	1,928
Over 4 years through 5 years	1,821
Thereafter	6,836
Total undiscounted lease liability	16,254
Less: Discount on cash flows	(2,506)
Total operating lease liability	$ 13,748	$ 14,142

OPERATING LEASES - Narrative (D

OPERATING LEASES - Narrative (Details) - USD ($)	9 Months Ended
OPERATING LEASES - Narrative (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
OPERATING LEASES
Operating lease asset decreased exchange for a reduction in operating lease liabilities related to an early termination	$ (809,000)	$ 617,000
Operating lease right-of-use asset, increase	809,000
Operating lease liabilities, increase	809,000
Loss on sale of premises and equipment	1,200,000
Proceeds from lessor for early termination of lease	$ 1,500,000

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Commitments to extend credit, variable interest rate	$ 853,644	$ 714,084
Commitments to extend credit, fixed interest rate	135,404	60,876
Total commitments	989,048	774,960
Standby letters of credit
Loss Contingencies [Line Items]
Total commitments	$ 11,611	$ 18,109

EMPLOYEE BENEFIT PLANS AND DE_2

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($)	1 Months Ended	9 Months Ended
	Oct. 31, 2017	Sep. 30, 2022	Sep. 30, 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		$ 1,700,000	$ 1,700,000
Executive Deferred Compensation Arrangements
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Employers contribution of incentive bonus (as a percent)		25%
Deferred plan liability		$ 1,400,000		$ 1,700,000
2008 Salary Continuation Agreement
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS
Deferred plan liability		82,000		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		$ 1,500,000		$ 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	9 Months Ended
STOCK-BASED COMPENSATION - Narrative (Details) - shares	Sep. 30, 2022	Sep. 30, 2021
Non-performance based restricted stock
STOCK-BASED COMPENSATION
Options issued	22,463	18,997
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	10,160
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	244,140

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Number of Shares Underlying Options
Outstanding at beginning of period	191,560	201,720
Exercised	(15,240)	(2,032)
Forfeited/expired	(10,160)
Outstanding at end of period	166,160	199,688
Weighted Average Exercise Price
Outstanding at beginning of period	$ 17.53	$ 17.22
Exercised	11.32	11.32
Forfeited/expired	11.32
Outstanding at end of period	$ 18.48	$ 17.28

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
STOCK-BASED COMPENSATION
Number of shares underlying options exercisable	166,160
Number of shares underlying options outstanding	166,160
Weighted-average exercise price per share exercisable	$ 18.48
Weighted-average exercise price per share outstanding	$ 18.48	$ 17.53	$ 17.28	$ 17.22
Aggregate intrinsic value exercisable	$ 1,789
Aggregate intrinsic value outstanding	$ 1,789
Weighted-average remaining contractual term exercisable (years)	3 years 6 months
Weighted-average remaining contractual term outstanding (years)	3 years 6 months

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 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	51,665
Vested	(27,083)	(22,210)
Forfeited	(1,977)	(1,411)
Outstanding, end of period	92,960	157,711
Weighted Average Grant Date Fair Value
Outstanding, beginning of period	$ 27.85	$ 28.22
Granted	29.42	26.31
Vested	29.70	30.57
Forfeited	33.04	28.82
Outstanding, end of period	$ 27.86	$ 27.26

STOCK-BASED COMPENSATION - Su_2

STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 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	92,960	83,563	157,711	129,667
Weighted-average grant date fair value per share	$ 27.86	$ 27.85	$ 27.26	$ 28.22
Aggregate fair value (in thousands)	$ 2,719
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)	$ 66

STOCK-BASED COMPENSATION - Su_3

STOCK-BASED COMPENSATION - Summary of Stock options exercised, restricted stock vested, shares withheld and shares issued (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Number of Shares
Stock compensation expense	$ 515,000	$ 698,000	$ 1,500,000	$ 1,800,000
Unrecognized compensation expense	$ 962,000,000,000		$ 962,000,000,000
Stock options
Number of Shares
Stock Options, Exercised/Vested			15,240	2,032
Restricted Stock, Shares Issued			$ 15,240	$ 2,032
Non-performance based restricted stock
Number of Shares
Restricted Stock, Exercised/Vested			27,083	22,210
Restricted Stock, Shares withheld			(4,620)	(3,213)
Stock Options, Shares Issued			22,463	18,997

REGULATORY MATTERS - Regulatory

REGULATORY MATTERS - Regulatory Capital (Details) - USD ($)		3 Months Ended		9 Months Ended
REGULATORY MATTERS - Regulatory Capital (Details) - USD ($)	Dec. 15, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 16, 2021
Common Equity Tier I to RiskWeighted Assets
Dividend restrictions term				2 years
Actual amount		$ 487,717,000		$ 487,717,000		$ 475,154,000
Common Equity Tier One Capital Ratio		0.1405		0.1405		0.1531
Capital conversion buffer (as a percent)		2.50%		2.50%
Minimum Capital Required Basel III (amount)		$ 243,053,000		$ 243,053,000		$ 217,300,000
Minimum Capital RequiredBasel III (ratio)		0.0700		0.0700		0.0700
Required to be Considered Well Capitalized, ratio		4.5		4.5
Tier I Capital to RiskWeighted Assets
Actual amount		$ 487,717,000		$ 487,717,000		$ 475,154,000
Actual ratio		0.1405		0.1405		0.1531
Minimum Capital Required for Capital Adequacy Purposes (amount)		$ 7		$ 7
Minimum Capital Required for Capital Adequacy Purposes (ratio)		6%		6%		4.50%
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 295,135,000		$ 295,135,000		$ 263,864,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.0850		0.0850		0.085
Required to be Considered Well Capitalized, ratio		0.080		0.080
Total Capital to RiskWeighted Assets
Actual amount		$ 524,112,000		$ 524,112,000		$ 509,766,000
Actual ratio		0.1509		0.1509		0.1642
Minimum Capital Required for Capital Adequacy Purposes (ratio)		8%		8%
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 364,579,000		$ 364,579,000		$ 325,950,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.1050		0.1050		0.105
Leverage Ratio
Actual amount		$ 487,717,000		$ 487,717,000		$ 475,154,000
Actual ratio		0.1142		0.1142		0.1122
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 170,891,000		$ 170,891,000		$ 169,470,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.040		0.040		0.0400
Regulatory fees in the consolidated statements of income		$ 599,000	$ 478,000	$ 2,016,000	$ 1,535,000
Subsidiaries [Member]
Common Equity Tier I to RiskWeighted Assets
Actual amount		$ 479,175,000		$ 479,175,000		$ 447,819,000
Common Equity Tier One Capital Ratio		0.1381		0.1381		0.1443
Minimum Capital Required Basel III (amount)		$ 242,969,000		$ 242,969,000		$ 217,270,000
Minimum Capital RequiredBasel III (ratio)		0.0700		0.0700		0.0700
Required to be Considered Well Capitalized, amount		$ 225,614,000		$ 225,614,000		$ 201,757,000
Required to be Considered Well Capitalized, ratio		0.0650		0.0650		0.0650
Tier I Capital to RiskWeighted Assets
Actual amount		$ 479,175,000		$ 479,175,000		$ 447,819,000
Actual ratio		0.1381		0.1381		0.1443
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 295,034,000		$ 295,034,000		$ 263,836,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.0850		0.0850		0.0850
Required to be Considered Well Capitalized, amount		$ 277,679,000		$ 277,679,000		$ 248,316,000
Required to be Considered Well Capitalized, ratio		0.0800		0.0800		0.0800
Total Capital to RiskWeighted Assets
Actual amount		$ 515,570,000		$ 515,570,000		$ 482,431,000
Actual ratio		0.1485		0.1485		0.1554
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 364,454,000		$ 364,454,000		$ 325,915,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.1050		0.1050		0.1050
Required to be Considered Well Capitalized, amount		$ 347,099,000		$ 347,099,000		$ 310,395,000
Required to be Considered Well Capitalized, ratio		0.1000		0.1000		0.1000
Leverage Ratio
Actual amount		$ 479,175,000		$ 479,175,000		$ 447,819,000
Actual ratio		0.1122		0.1122		0.1058
Minimum Capital RequiredBasel III Fully Phasedin (amount)		$ 170,856,000		$ 170,856,000		$ 169,381,000
Minimum Capital RequiredBasel III Fully Phasedin (ratio)		0.0400		0.0400		0.0400
Required to be Considered Well Capitalized, amount		$ 213,570,000		$ 213,570,000		$ 211,726,000
Required to be Considered Well Capitalized, ratio		0.0500		0.0500		0.0500
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		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INCOME TAXES
Income tax expense	$ 3,381	$ 2,913	$ 8,485	$ 8,090
Effective tax rate (as a percent)	20.96%	16.81%	19.49%	18.29%
Statutory rate (as a percent)	21%	21%	21%	21%

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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
EARNINGS PER SHARE
Net income for common shareholders	$ 12,747	$ 14,421	$ 35,049	$ 36,143
Weighted-average shares (thousands)
Basic weighted-average shares outstanding	24,345	24,432	24,445	24,462
Dilutive effect of outstanding stock options and unvested restricted stock awards	119	112	107	110
Diluted weighted-average shares outstanding	24,464	24,544	24,552	24,572
Earnings per share:
Basic	$ 0.52	$ 0.59	$ 1.43	$ 1.48
Diluted	$ 0.52	$ 0.59	$ 1.43	$ 1.47

EARNINGS PER SHARE - Anti-dilut

EARNINGS PER SHARE - Anti-dilutive shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted weighted-average shares outstanding	24,464,000	24,544,000	24,552,000	24,572,000
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		5,907	1,802	14,858

SUBSEQUENT EVENTS - Narrative (

SUBSEQUENT EVENTS - Narrative (Details)	Oct. 01, 2022 $ / shares	Sep. 30, 2022 $ / shares
SUBSEQUENT EVENTS
Common stock par value		$ 0.01
Subsequent Event \| Merger Agreement
SUBSEQUENT EVENTS
Common stock par value	$ 0.01
Subsequent Event \| Allegiance \| Merger Agreement
SUBSEQUENT EVENTS
Common stock par value	$ 1
Exchange ratio, shares converted and right to receive by company	1.4184
Voting interests in Stellar	53.90%

SUBSEQUENT EVENTS - Allegiance

SUBSEQUENT EVENTS - Allegiance Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Assets:
Securities	$ 511,282		$ 425,046
Premises and equipment	55,594		58,417
Goodwill	80,950		80,950
Other assets	23,843		19,394
Total assets	4,271,831		4,486,001
Liabilities:
Noninterest-bearing deposits	1,780,473		1,784,981
Interest-bearing deposits	1,943,301		2,046,303
Total deposits	3,723,774		3,831,284
Other liabilities	32,884		28,450
Total liabilities	3,770,406		3,923,876
Total shareholders' equity	501,425	$ 526,679	562,125	$ 564,593	$ 556,227	$ 546,451
Total liabilities and shareholders' equity	4,271,831		$ 4,486,001
Allegiance \| Merger Agreement
Assets:
Cash and cash equivalents	118,567
Securities	1,618,995
Loans held for investment	4,591,912
Allowance for credit losses for loans	(52,147)
Loans, net	4,539,765
Premises and equipment	57,837
Goodwill	223,642
Other assets	171,536
Total assets	6,730,342
Liabilities:
Noninterest-bearing deposits	2,465,839
Interest-bearing deposits	3,194,880
Total deposits	5,660,719
Borrowed funds	257,000
Subordinated debt	109,241
Other liabilities	47,080
Total liabilities	6,074,040
Total shareholders' equity	656,302
Total liabilities and shareholders' equity	$ 6,730,342

SUBSEQUENT EVENTS - Allegianc_2

SUBSEQUENT EVENTS - Allegiance Condensed Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
SUBSEQUENT EVENTS
Net interest income	$ 43,012	$ 31,249	$ 110,514	$ 95,357
Net interest income after provision (recapture) for credit losses	42,000	36,144	108,941	104,923
Noninterest income	3,449	5,562	12,324	12,164
Noninterest expense	29,321	24,372	77,731	72,854
Income tax expense	$ 3,381	$ 2,913	$ 8,485	$ 8,090
EARNINGS PER SHARE
Basic	$ 0.52	$ 0.59	$ 1.43	$ 1.48
Diluted	$ 0.52	$ 0.59	$ 1.43	$ 1.47
Allegiance \| Merger Agreement
SUBSEQUENT EVENTS
Net interest income	$ 60,690		$ 173,344
Provision for credit losses	1,962		5,919
Net interest income after provision (recapture) for credit losses	58,728		167,425
Noninterest income	2,995		9,717
Noninterest expense	44,031		116,452
Net income before income tax expense	17,692		60,690
Income tax expense	3,406		11,310
Net income	$ 14,286		$ 49,380
EARNINGS PER SHARE
Basic	$ 0.72		$ 2.44
Diluted	$ 0.71		$ 2.42